Choosing a forex broker starts with one simple question: is the company actually licensed where it says it is? A licence number on a website is a claim, not evidence. This guide explains how to verify that claim on the regulator's own public register before you send any money, and what to look for once you locate the entry.
Why Check the Licence Before Anything Else
A licence from a major regulator can offer meaningful protection, such as segregated client funds and, in some jurisdictions, a compensation scheme. However, licences change: companies are sold, rebranded, sanctioned or lose their licence. Other companies only hold an offshore company registration, which is not financial supervision at all.
Which Safeguards a Licence Usually Provides
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. Most offshore jurisdictions offer none of this, so the same brand can offer very different protection based on which of its companies opens your account.
Brokers Reviewed on FXSharp
The brokers and platforms below have an editorial review on FXSharp. Most hold licences from recognised regulators, while several also onboard clients through offshore entities with lighter protection. Check which company would actually 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 on Your Own
Look up 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 website yourself, not through a link from the broker, FX Sharp and search its public register. Search 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 Look Out For
Be careful 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 too. 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.
Verify 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. Looking at 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 few minutes on the register can spare you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, and verify first, then you invest.