How to Verify a Forex Broker's Licence (Before You Deposit)

Why the register, not the website

Any website can display a licence number, a regulator’s logo and a reassuring “regulated and trusted” badge. None of that is evidence. The only proof that a broker is authorised is the regulator’s own public register — a database maintained by the authority itself, showing exactly which company holds which permissions, and whether that authorisation is current. Everything you check should happen there, on the regulator’s domain, not on the broker’s.

The five-minute check, step by step

1. Find the licence number and legal entity

Scroll to the footer of the broker’s site or its “About / Legal” page. You are looking for two things: the regulator and licence (or reference) number, and the exact legal company name that holds it (often different from the brand — e.g. a brand may be operated by “… Markets Ltd”). Write both down.

2. Open the correct register

Go directly to the regulator’s official register and search for the number and name. The main tier-1 registers are the FCA Financial Services Register (UK, register.fca.org.uk), ASIC Connect / MoneySmart (Australia), the CySEC register (Cyprus/EU), and BaFin (Germany). Type the regulator’s name into a search engine yourself rather than clicking a link the broker gives you — that link is exactly where a fake would send you.

3. Match the entity, the number and the status

Three things must line up: the company name in the register matches the entity on the broker’s legal page; the licence number matches; and the status reads “authorised” / “active”, not “expired”, “withdrawn” or “no longer authorised”. If any one of the three is off, stop.

4. Check the permissions cover what you’re doing

A firm can be authorised for one activity but not another. The register entry lists the permissions granted; confirm it actually covers dealing in investments / CFDs for retail clients, not merely, say, “payment services”. A real licence for the wrong activity is a common sleight of hand.

5. Read the entity in your account agreement

Many brokers run several entities and sign you up to whichever your country allows. The one named in your account agreement is the one holding your money and your protections. A broker can advertise a tier-1 licence in the footer while your account sits under a lightly-regulated offshore entity — which is why what matters is not whether the firm is licensed somewhere, but whether your account is. We go deeper on this in what happens to your money if a broker goes bust.

Clone firms: the scam the register is built to catch

A “clone firm” is a fraudster that copies a genuine, authorised firm’s name, licence number and address, then contacts victims using near-identical details — a slightly different domain, a different phone number, a payment account in another name. Regulators publish warnings about clones precisely because the copied number will appear valid in the register. Defend against it by using only the contact details listed in the register itself, being suspicious of any payment request to a company name that differs from the licensed entity, and treating cold calls and unsolicited “investment manager” approaches as a red flag on their own.

Offshore vs tier-1: not all “regulated” is equal

“Regulated” is not a single standard. A tier-1 authorisation (FCA, ASIC, CySEC and a few others) brings segregated client funds, negative-balance protection for retail clients and, in some places, a compensation scheme. An offshore registration in a light-touch jurisdiction may permit higher leverage and looser rules, but offers far weaker recourse if something goes wrong. Neither is “fake” — but they protect you very differently, and you should know which one you’re actually signing up to.

The same logic applies to prop firms — with a twist

Most proprietary-trading (“prop”) firms are not regulated as brokers at all, because you trade the firm’s simulated capital under a contract rather than your own money on a live market. So there is usually no register to check — which means the firm’s own track record becomes your only protection. For that world, see how to tell if a prop firm is legit and our payout-proof tracker.

How we use this ourselves

Every broker we rate has its licence checked in the official register before it scores, and we weight regulation and fund safety above cost and platform. See the full methodology, and our running verification notes.

FAQ

What if the broker isn’t in any register? Then treat it as unregulated, whatever the website says. That isn’t automatically a scam, but you have no regulatory recourse, so the firm’s own reputation and track record are all that stand between you and a loss.

The number is in the register but the details are slightly different — is that fine? No. A mismatch in company name, domain or payment account is the single clearest signal of a clone. Contact the firm only through the details the register lists, and don’t deposit until it reconciles.

Does a licence mean I can’t lose money? No. Regulation reduces counterparty risk — the firm failing or misusing funds. It does nothing about market risk. Most retail CFD accounts lose money trading regardless of how well-regulated the broker is.