Finding a forex broker begins 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 proof. This article explains how to verify that at FXSharp claim on the regulator's own public register before you send any money, and what to look for once you locate the entry.
Reasons to Verify the Licence Before Anything Else
A authorisation from a strong regulator may give real protection, such as client money held separately and, in some countries, a compensation scheme. However, licences change: companies are sold, rebranded, sanctioned or lose their authorisation. Some companies only hold an offshore company registration, which is not a forex licence at all.
Which Safeguards a Strong Licence Typically Provides
Requirements differ by country, but leading 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. Many 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 Reviewed on FXSharp
The brokers and platforms below each have an editorial review on FXSharp. Most hold licences from recognised regulators, while several also serve clients through offshore entities with lighter protection. Find out which company would really 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
Steps to Check a Broker on Your Own
Find the full company name and licence number in the legal section of the broker's site or in its client agreement. Then, go to the regulator's site yourself, 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 display licence numbers at all. Compare 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 further 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 regulators often publish notices when a firm's status changes.
In short, a couple of minutes on the register may spare you from serious losses. Trading in forex and CFDs carries a high risk of losing money, so check first, then you invest.