How to Verify a CFD Broker's Regulation on the Official Register
Choosing a forex broker begins with one simple question: is the company really licensed where it says it is? A licence number on a broker's site is a claim, not evidence. This article explains how to verify that claim on the regulator's own register before you send any money, and what to look for once you locate the entry.
Reasons to Verify the Licence First
A licence from a strong regulator can give meaningful 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 authorisation. Some firms only hold an offshore company registration, which is not a forex licence at all.
What Safeguards a Licence Usually 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 based on which of its companies opens your account.
Companies Reviewed on FXSharp
The companies below have an independent review on FXSharp. Many 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 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
Steps to Verify a Broker Yourself
Find the exact company name and licence number in the legal section of the broker's site or in its client agreement. Next, go to the regulator's site directly, not through a link from the broker, and search its public register. Search by company get more info 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, where listed, the approved website address.
Red Flags 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 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 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. Looking at the register again before a large deposit or a withdrawal costs nothing, and supervisors often publish notices when a firm's status changes.
In short, 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 before you invest.