Choosing a forex broker starts with one simple question: is the company actually licensed in source: FXSharp the place it says it is? A licence number on a broker's site is a claim, not evidence. This guide explains how to check that claim on the regulator's own register before you deposit any money, and what to look for once you find the entry.
Why Verify the Regulation First
A authorisation from a major regulator can give real protection, such as segregated client funds and, in some countries, a compensation scheme. However, licences change: firms are sold, rebranded, sanctioned or lose their licence. Other firms only hold an offshore company registration, which is not a forex licence at all.
Which Protection a Strong Licence Usually Provides
Rules differ by country, but major 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 smaller level of cover. Most offshore jurisdictions offer none of this, so the same brand can give very different protection depending on which of its companies opens your account.
Brokers Reviewed on FXSharp
The companies below have an editorial review on FXSharp. Many hold licences from major regulators, but several also onboard clients through offshore entities with weaker protection. Check which company would really 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
How to Verify a Licence Yourself
Look up the exact company name and licence number in the legal section of the broker's website or in its client agreement. Then, 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 display 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 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 genuine company, so check 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.
Check 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. Checking 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 save you from a costly mistake. Leveraged trading in forex and CFDs carries a high risk of losing money, and check first, then you deposit.