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

How to Verify a CFD Broker's Licence on the Regulator's Register

Blog Article

Choosing a forex broker starts with one basic question: is the company really regulated in the place it says it is? A licence number on a broker's site is a claim, not proof. This article explains how to verify that claim on the regulator's own public register before you deposit any money, and what to look for once you find the entry.

Why Check the Licence Before Anything Else

A licence from a strong regulator may offer meaningful safeguards, such as client money held separately and, in some jurisdictions, a compensation scheme. However, authorisations can change: companies are sold, rebranded, sanctioned or lose their licence. Other firms only hold an offshore company registration, which is not a forex licence at all.

What Safeguards a Strong Licence Usually Brings

Rules differ by country, but leading 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. 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.

Brokers Covered on FXSharp

The brokers and platforms below have an editorial review on FXSharp. Many hold licences from recognised regulators, but several also onboard check here clients through offshore entities with lighter protection. Check which company would actually open 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 Check 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. Then, go to the regulator's site 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 show 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 genuine 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 further 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. Looking at the register again before a large deposit or a withdrawal costs nothing, and regulators often publish notices when a firm's status changes.

Overall, a few minutes on the register can save you from a costly mistake. Leveraged trading in forex and CFDs carries a high risk of losing money, and verify first, then you deposit.

Report this page