Choosing a forex broker starts with one basic question: is the company actually licensed where it says it is? A licence number on a broker's site is a claim, not proof. This guide explains how to verify that claim on the regulator's own register before you send any money, and what to look for once you find the entry.

Reasons to Check the Regulation Before Anything Else

A licence from a major regulator can give real safeguards, such as client money held separately and, in some countries, a compensation scheme. However, licences change: firms are sold, rebranded, sanctioned or lose their licence. Some firms only hold an offshore company registration, which is not a forex licence at all.

What Safeguards a Licence Typically 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 provide a lower level of cover. Most 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 Covered on FXSharp

The companies below have an editorial review on FXSharp. Many hold licences from major regulators, but some 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

How to Verify a Broker Yourself

Find the full company name and licence number in the footer 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. Look up 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 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 read more requests to pay through unusual channels are further red flags, whatever the website claims about regulation.

Verify 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 regulators often publish notices when a firm's status changes.

Overall, 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, so verify first, then you invest.