How to Verify a CFD Broker's Licence on the Regulator's Register
Choosing a forex broker begins with one basic question: is the company really licensed in the place it says it is? A licence number on a website is a claim, not proof. This guide explains how to verify 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 Regulation Before Anything Else
A licence from a strong regulator may offer meaningful protection, such as segregated client funds and, in some countries, a compensation scheme. However, licences can change: firms are sold, rebranded, sanctioned or lose their authorisation. Other firms only hold an offshore company registration, which is not a forex licence at all.
What Protection a Licence Typically Provides
Rules differ by country, but leading 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, 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. Most 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.
Companies Reviewed on FXSharp
The companies below have an independent review on FXSharp. Most hold licences from major regulators, while several also onboard clients through offshore entities with lighter protection. Check which company would really open your account, and read the review before 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 Check a Broker 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 yourself, 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. Compare the company name, licence status, licence type and, if listed, the approved website address.
Red Flags 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 genuine 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 further red flags, whatever the website FX Sharp claims about regulation.
Check 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 regulators often publish notices when a firm's status changes.
Overall, a couple of minutes on the register may spare you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, so check before you invest.