How to Check a CFD Broker's Regulation on the Official Register
Finding a forex broker begins with one simple question: is the company actually regulated where it says it is? A licence number on a broker's site is a claim, not evidence. This guide shows how to check that claim on the regulator's own public register before you send any money, and what to look for once you find the entry.
Reasons to Check the Licence Before Anything Else
A authorisation from a major regulator can offer meaningful safeguards, such as client money held separately and, in some jurisdictions, here a compensation scheme. But, authorisations can change: firms are sold, rebranded, sanctioned or lose their authorisation. Some firms only hold an offshore company registration, which is not financial supervision at all.
What Safeguards a Strong Licence Usually Brings
Rules differ by country, but major 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.
Companies Covered on FXSharp
The companies below each have an independent review on FXSharp. Many hold licences from recognised regulators, but several also serve 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
How to Verify a Licence Yourself
Look up the exact 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 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 display licence numbers at all. Compare the company name, licence status, licence type and, if listed, the approved website address.
Warning Signs to Watch 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 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 warning signs, whatever the website claims about regulation.
Check Again 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. Checking 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 may save you from a costly mistake. Leveraged trading in forex and CFDs carries a high risk of losing money, so verify first, then you deposit.