How to Check a Trading Broker's Licence on the Official Register
How to Check a Trading Broker's Licence on the Official Register
Blog Article
Finding a forex broker starts with one basic question: is the company actually licensed where it says it is? A licence number on a website is a claim, not evidence. This guide explains 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.
Reasons to Check the Licence First
A authorisation from a major regulator may offer real safeguards, such as client money held separately and, in some countries, a compensation scheme. However, licences can change: firms are sold, rebranded, sanctioned or lose their licence. Some firms only hold an offshore company registration, which is not financial supervision at all.
Which Protection a Licence Typically Provides
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 each have an independent review on FXSharp. Many hold licences from recognised regulators, but some also onboard clients through offshore entities with weaker at FXSharp protection. Check which company would really 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
How to Verify a Licence on Your Own
Look up the full company name and licence number in the legal section of the broker's site 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. 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, if listed, the approved website address.
Warning Signs to Look Out 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 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 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 announcements when a firm's status changes.
In short, a couple of minutes on the regulator's register can spare you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, and check first, then you invest.
Report this page