How to Verify a Forex Broker's Regulation on the Regulator's Register
Finding a forex broker starts with one basic question: is the company really licensed where it says it is? A licence number on a broker's site is a claim, not evidence. This article 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.
Reasons to Verify the Licence Before Anything Else
A licence from a strong regulator may give real safeguards, such as segregated client funds and, in some jurisdictions, a compensation scheme. However, licences change: firms are sold, rebranded, sanctioned or lose their licence. Some firms only hold an offshore company registration, which is not a forex licence at all.
What Safeguards a Strong Licence Typically Brings
Rules differ by country, but FXSharp review major 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 offer a smaller level of cover. Many offshore jurisdictions offer none of this, which is why the same brand can give very different protection depending on which of its companies opens your account.
Companies Reviewed on FXSharp
The companies below have an editorial review on FXSharp. Many hold licences from major regulators, but some also onboard clients through offshore entities with lighter protection. Check 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 Check a Broker Yourself
Look up 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 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 show 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 wary 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 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 additional red flags, 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 notices when a firm's status changes.
Overall, a couple of minutes on the regulator's register may save you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, and check first, then you invest.