How to Verify a Trading Broker's Licence on the Regulator's Register
Finding a forex broker begins 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. The following guide shows how to check 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 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, authorisations change: companies are sold, rebranded, sanctioned or lose their licence. Some companies only hold an offshore company registration, which is not a forex licence at all.
What Safeguards a Licence Usually Provides
Requirements differ by country, but 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, on FXSharp eligible clients of a failed firm may be covered by the Financial Services Compensation Scheme. In the European Union, investor compensation funds offer a lower level of cover. Most offshore jurisdictions offer none of this, which is why the same brand can give very different protection based on which of its companies opens your account.
Companies Covered on FXSharp
The brokers and platforms below each have an editorial review on FXSharp. Most hold licences from major regulators, but some also onboard clients through offshore entities with weaker protection. Find out which company would actually open your account, and read the review prior to 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 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 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 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 careful 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 real 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.
Check 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 regulators often publish announcements when a firm's status changes.
In short, a few minutes on the regulator's register can spare you from serious losses. Trading in forex and CFDs carries a high risk of losing money, so verify before you deposit.