HOW TO VERIFY A TRADING BROKER'S LICENCE ON THE OFFICIAL REGISTER

How to Verify a Trading Broker's Licence on the Official Register

How to Verify a Trading Broker's Licence on the Official Register

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Selecting a forex broker starts with one simple question: is the company really licensed in the place it says it is? A licence number on a broker's site is a claim, not evidence. This guide explains how to check that claim on the regulator's own public register before you send any money, and what to look for once you locate the entry.

Reasons to Verify the Regulation First

A authorisation from a strong regulator can give meaningful protection, 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 financial supervision at all.

What Safeguards a Strong Licence Usually Provides

Requirements 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 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 Reviewed on FXSharp

The brokers and platforms below each have an independent review on FXSharp. Most hold licences from major regulators, but several also serve clients through offshore entities with lighter protection. Find out which company would actually 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

Steps to Verify a Licence Yourself

Find the full company name and licence number in the footer of the broker's website or in its client agreement. Next, 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 show licence numbers at all. Match the company name, licence status, licence type and, if listed, the approved website address.

Red Flags to Watch For

Be wary 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 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 warning signs, whatever the website claims about regulation.

Check 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 supervisors often at FXSharp publish notices when a firm's status changes.

In short, a couple of minutes on the register may spare you from serious losses. Trading in forex and CFDs carries a high risk of losing money, and verify before you invest.

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