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

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

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

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Selecting a forex broker starts with one simple question: is the company actually licensed in the place it says it is? A licence number on a website is a claim, not evidence. The following 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 find the entry.

Reasons to Verify the Licence First

A authorisation from a strong regulator may give meaningful safeguards, such as client money held separately and, in some jurisdictions, 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.

Which Safeguards a Licence Usually Brings

Requirements 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 offer a smaller level of cover. Many offshore jurisdictions offer none of this, so the same brand can offer very different protection based on which of its companies opens your account.

Companies Covered on FXSharp

The companies below have an independent review on FXSharp. Many hold licences from recognised regulators, while several also onboard clients through offshore entities with weaker protection. Check which company would really 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 Broker Yourself

Find the exact company name and licence number in the footer of the broker's site or in its client agreement. Then, go to the regulator's site 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, 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 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.

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. Checking the register again before a large deposit or a withdrawal costs nothing, and regulators often publish announcements when a firm's status changes.

In short, a couple of minutes on the register can save you from serious losses. Trading in forex and CFDs carries a high risk of losing money, FXSharp editorial review and check first, then you invest.

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