Selecting a forex broker starts with one simple question: is the company really licensed where it says it is? A licence number on a website is a claim, not proof. This 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 Regulation First
A licence from a strong regulator can offer meaningful safeguards, such as segregated client funds and, in some countries, a compensation scheme. However, authorisations change: companies are sold, rebranded, sanctioned or lose their licence. Some firms only hold an offshore company registration, which is not financial supervision at all.
Which Safeguards a Licence Typically Provides
Rules differ by country, but major regulators usually require brokers to keep client check here 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, so the same brand can give very different protection based on which of its companies opens your account.
Brokers Reviewed on FXSharp
The brokers and platforms below have an editorial review on FXSharp. Most hold licences from recognised regulators, while some also serve clients through offshore entities with lighter protection. Check which company would really 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
How to Verify a Licence Yourself
Find the full company name and licence number in the legal section of the broker's website or in its client agreement. Next, 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 display licence numbers at all. Match the company name, licence status, licence type and, if listed, the approved website address.
Warning Signs 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 additional red flags, whatever the website claims about regulation.
Verify 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. Checking the register again before a large deposit or a withdrawal costs nothing, and supervisors often publish announcements when a firm's status changes.
In short, a couple of minutes on the regulator's register may save you from a costly mistake. Leveraged trading in forex and CFDs carries a high risk of losing money, so verify before you invest.