How to Check a Forex Broker's Licence on the Regulator's Register
Selecting a forex broker begins with one basic question: is the company actually licensed in the place it says it is? A licence number on a broker's site is a claim, not proof. The following article shows how to check that claim on the regulator's own register before you send any money, and what to look for once you find the entry.
Why Check the Licence Before Anything Else
A authorisation from a major regulator can give meaningful safeguards, such as client money held separately and, in some countries, a compensation scheme. However, licences 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 Protection a Strong 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 provide a lower level of cover. Most 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.
Companies Reviewed on FXSharp
The brokers and platforms below have an editorial review on FXSharp. Most hold licences from major regulators, while several also onboard clients through offshore entities with lighter protection. Find out which company would really open your account, and read the review before depositing.
Pepperstone
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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 Verify a Broker Yourself
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 site yourself, 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 display licence numbers at all. Match the company name, licence status, licence type and, if listed, the approved website address.
Warning Signs 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 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 further red flags, whatever the website claims about regulation.
Check Once More 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. Checking the register again before a large deposit or a withdrawal costs nothing, and regulators often publish announcements when a firm's status changes.
Overall, a few minutes on the register can save you from a costly mistake. Trading in forex website and CFDs carries a high risk of losing money, and verify first, then you invest.