How to Verify a CFD Broker's Licence on the Regulator's Register
How to Verify a CFD Broker's Licence on the Regulator's Register
Blog Article
Choosing a forex broker begins with one simple question: is the company actually licensed where it says it is? A licence number on a website is a claim, not proof. The following guide shows how to check that claim on the regulator's own public register before you send any money, and what to look for once you find the entry.
Why Check the Regulation First
A licence from a major regulator can give real safeguards, such as client money held separately and, in some jurisdictions, a compensation scheme. However, licences change: firms are sold, rebranded, sanctioned or lose their licence. Other companies only hold an offshore company registration, which is not financial supervision at all.
What Safeguards a Strong Licence Typically Provides
Rules 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 smaller level of cover. Many offshore jurisdictions offer none of this, which is why the same brand can offer 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, while several also onboard clients through offshore entities with lighter protection. Check which company would actually open FXSharp 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 Verify a Broker on Your Own
Find the full company name and licence number in the footer of the broker's website or in its client agreement. Next, go to the regulator's site directly, 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, 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 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 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. Checking 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 regulator's register may save you from a costly mistake. Trading in forex and CFDs carries a high risk of losing money, and verify before you invest.
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