How to Check a Trading Broker's Licence on the Official Register
How to Check a Trading Broker's Licence on the Official Register
Blog Article
Choosing a forex broker starts with one basic question: is the company really regulated in the place it says it is? A licence number on a website is a claim, not proof. The following guide explains how to check that claim on the regulator's own register before you deposit any money, and what to look for once you find the entry.
Why Check the Regulation Before Anything Else
A authorisation from a major regulator can offer meaningful safeguards, such as client money held separately and, in some countries, a compensation scheme. However, licences can change: firms are sold, rebranded, sanctioned or lose their authorisation. Other companies only hold an offshore company registration, which is not a forex licence at all.
What Safeguards a Licence Usually Provides
Requirements differ by country, but leading 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 offer a lower level of cover. Most offshore jurisdictions offer none of this, so the same brand can offer very different protection based on which of its companies opens your account.
Brokers Reviewed on FXSharp
The brokers and platforms below each have an editorial review on FXSharp. Many hold licences from major regulators, while several also onboard clients through offshore entities with weaker protection. Check which company would actually open your account, and read the review prior to depositing.
- 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
Steps to Check a Broker on Your Own
Look up the full company name and licence number in the legal section of the broker's website or in its client agreement. Then, go to the regulator's website directly, not through a link from the broker, and search its public register. Search by company name as well as by number, because some registers do not at FXSharp display licence numbers at all. Compare the company name, licence status, licence type and, where listed, the approved website address.
Red Flags to Watch For
Be careful if the register shows a look-alike 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 too. Pressure to deposit quickly, promises of guaranteed returns and requests to pay through unusual channels are additional red flags, whatever the website claims about regulation.
Verify Again Later On
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 nothing, and regulators often publish notices when a firm's status changes.
Overall, a few 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 before you deposit.
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