How to Check a Forex Broker's Regulation on the Regulator's Register
Selecting a forex broker begins with one basic question: is the company really regulated in the place it says it is? FXSharp A licence number on a broker's site is a claim, not evidence. This guide shows how to check that claim on the regulator's own public register before you deposit any money, and what to look for once you locate the entry.
Why Verify the Licence Before Anything Else
A licence from a major regulator may offer real protection, such as client money held separately and, in some countries, a compensation scheme. However, authorisations can change: companies are sold, rebranded, sanctioned or lose their authorisation. Other firms only hold an offshore company registration, which is not financial supervision at all.
What Safeguards a Strong Licence Typically Provides
Requirements differ by country, but leading regulators generally 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 smaller level of cover. Many offshore jurisdictions offer none of this, which is why the same brand can offer very different protection based on which of its companies opens your account.
Brokers Covered on FXSharp
The brokers and platforms below each have an independent review on FXSharp. Many hold licences from recognised regulators, while several also onboard clients through offshore entities with lighter protection. Find out which company would actually open your account, and read the review prior to 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 Licence Yourself
Find the full company name and licence number in the footer of the broker's website or in its client agreement. Then, go to the regulator's website 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. Match the company name, licence status, licence type and, if listed, the approved website address.
Red Flags to Watch 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 real company, so look at 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 warning signs, whatever the website claims about regulation.
Verify 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 nothing, and supervisors often publish announcements when a firm's status changes.
Overall, a couple of minutes on the register may spare you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, and check before you deposit.