HOW TO CHECK A FOREX BROKER'S REGULATION ON THE OFFICIAL REGISTER

How to Check a Forex Broker's Regulation on the Official Register

How to Check a Forex Broker's Regulation on the Official Register

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Finding a forex broker begins with one simple question: is the company actually regulated in the place it says it is? A licence number on a broker's site is a claim, not evidence. The following guide shows how to check that claim on the regulator's own register before you deposit any money, and what to look for once you locate the entry.

Why Verify the Licence First

A licence from a strong regulator may give meaningful protection, such as client money held separately and, in some countries, a compensation scheme. However, authorisations change: companies are sold, rebranded, sanctioned or lose their licence. Some companies only hold an offshore company registration, which is not a forex licence at all.

What Safeguards a Licence Usually Brings

Requirements 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 offer a smaller level of cover. Most offshore jurisdictions offer none of this, which is why the same brand FXSharp broker review can give very different protection depending on which of its companies opens your account.

Companies Reviewed on FXSharp

The companies below have an independent review on FXSharp. Many hold licences from recognised regulators, but several also onboard clients through offshore entities with lighter protection. Check 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

Steps to Check a Licence on Your Own

Find the exact company name and licence number in the footer of the broker's website or in its client agreement. Then, 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 show licence numbers at all. Compare the company name, licence status, licence type and, where listed, the approved website address.

Red Flags to Look Out For

Be wary 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 look at 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 further warning signs, whatever the website claims about regulation.

Check Once More 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 supervisors often publish notices when a firm's status changes.

In short, a couple of minutes on the regulator's register can spare you from a costly mistake. Leveraged trading in forex and CFDs carries a high risk of losing money, so check before you deposit.

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