How to Check a CFD Broker's Licence on the Official Register
Selecting a forex broker begins with one basic question: is the company really regulated where it says it is? A licence number on a broker's site is a claim, not evidence. This article explains how to check 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 Regulation Before Anything Else
A licence from a major regulator can offer meaningful safeguards, such as segregated client funds and, in some jurisdictions, a compensation scheme. However, licences can change: companies are sold, rebranded, sanctioned or lose their licence. Other firms only hold an offshore company registration, which is not a forex licence at all.
Which Protection a Strong Licence Usually Brings
Rules differ by country, but major 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 lower 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 Covered on FXSharp
The companies below each have an independent review on FXSharp. Many hold licences from recognised regulators, but some also onboard clients through offshore entities with lighter protection. Find out 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
Steps to Verify a Licence Yourself
Look up the full company name and licence number in the footer of the broker's website or in click here 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. Compare the company name, licence status, licence type and, if listed, the approved website address.
Warning Signs to Watch For
Be wary if the register shows a look-alike 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 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.
Verify 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 supervisors often publish notices when a firm's status changes.
In short, a couple of minutes on the register can save you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, and check first, then you invest.