How to Check a Forex Broker's Licence on the Regulator's Register
Choosing a forex broker starts with one basic question: is the company actually licensed in the place it says it is? A licence number on a website is a claim, not proof. The following guide explains how to verify that claim on the regulator's own register before you deposit any money, and what to look for once you find the entry.
Reasons to Verify the Regulation First
A authorisation from a major regulator may offer real safeguards, such as client money held separately and, in some countries, a compensation scheme. But, authorisations change: companies are sold, rebranded, sanctioned or lose their authorisation. Some firms only hold an offshore company registration, which is not financial supervision at all.
Which Safeguards a Strong Licence Usually Brings
Rules differ by country, but major regulators usually require brokers to keep client money in separate bank accounts, hold a minimum amount of capital, report to the regulator and follow conduct rules on marketing and leverage. In the UK, eligible clients of a failed firm may be covered by the Financial Services Compensation Scheme. In the European Union, investor compensation funds provide a lower level of cover. Many offshore jurisdictions offer none of this, so the same brand can give very different protection based on which of its companies opens your account.
Companies Covered on FXSharp
The brokers and platforms below have an independent review on FXSharp. Many hold licences from recognised regulators, but some also serve clients through offshore entities with lighter protection. Find out which company would actually open your account, and read the review before opening an account.
- Pepperstone
- copyright
- Interactive Brokers
- Saxo Bank
- Charles Schwab
- Webull
- Admirals
- Axi
- Libertex
- RoboForex
- InstaForex
- PU Prime
- StoneX
- Mitrade
- ADSS
- TD365
- Spreadex
- ProRealTime
- GKFX
- AMP Global
How to Verify a Broker on Your Own
Find the full company name and licence number in the legal section of the broker's site or in its client agreement. Next, go to the regulator's site yourself, not through a link from the broker, and search its public register. Look up by company name as well as by number, because some registers do not display licence numbers at all. Compare the company name, licence status, licence type and, if listed, the approved website address.
Red Flags to Watch For
Be careful if the register shows a similar but different company name, a licence marked as revoked, suspended or surrendered, or a website address that is not the one you are using. Fraudsters often copy the name and licence number of a genuine company, so check the regulator's warning list for clone firms as well. Pressure to deposit quickly, promises of guaranteed returns and requests to pay through unusual channels are additional warning signs, whatever the website claims about regulation.
Check Again Over Time
A licence that was active when you opened an account may not stay that way. Brokers merge, sell their client books, move clients to another entity or lose their authorisation. Looking at the register again before a large deposit or a withdrawal costs click here nothing, and supervisors often publish notices when a firm's status changes.
In short, a couple of minutes on the regulator's register may spare you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, so verify first, then you deposit.