How to Check a Trading Broker's Licence 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 proof. The following guide shows how to check that claim on the regulator's own register before you deposit any money, and what to look for once you locate the entry.
Why Check the Licence First
A licence from a major regulator can offer meaningful protection, such as client money held separately and, in some countries, a compensation scheme. However, licences change: firms are sold, rebranded, sanctioned or lose the FXSharp team their licence. Other firms only hold an offshore company registration, which is not a forex licence at all.
What Safeguards a Licence Usually Brings
Requirements differ by country, but leading 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, so the same brand can give very different protection based on which of its companies opens your account.
Companies Reviewed on FXSharp
The companies below each have an editorial review on FXSharp. Many hold licences from recognised regulators, while several also onboard clients through offshore entities with weaker protection. Check which company would actually open your account, and read the review before opening an account.
Pepperstone
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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 Check a Broker Yourself
Look up the exact company name and licence number in the legal section of the broker's website 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 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, where listed, the approved website address.
Warning Signs to Look Out 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 additional red flags, whatever the website claims about regulation.
Verify Once More 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 announcements when a firm's status changes.
Overall, a few minutes on the register may spare you from serious losses. Leveraged trading in forex and CFDs carries a high risk of losing money, and check before you invest.