How to check a forex broker's licence, step by step

Why "regulated" on the homepage is not enough

Most large forex and CFD brokers are groups of companies. One brand can hold a licence from the UK's FCA through one company, from Cyprus's CySEC through a second and from an offshore regulator through a third. All of them share the logo, the app and the marketing. Which one opens your account depends on where you live, and only that company's licence protects you.

That is why a "regulated by the FCA" badge tells you little on its own. If you live outside the UK, the FCA company will usually not accept you, and your account will sit with another entity, often one supervised far more lightly. The checks below find out which company you would really deal with and whether its licence is real.

Step 1: find the company name and licence number

Scroll to the very bottom of the broker's website. Regulated brokers must show the legal name of each company in the group, the regulator and the licence or registration number. You can also find them in the client agreement or the "Legal documents" page.

Write down, for the company that would open your account:

• the exact legal name (for example "Example Markets Ltd", not just "Example");
• the licence or registration number;
• the regulator and the country.

If the footer names no company at all, or only says "regulated" without a number, stop there. A real licence always has a number you can check.

Step 2: work out which entity is yours

Open the account sign-up page and pick your country of residence. Many brokers then show the company that will hold your account, or link to the client agreement for your region. The agreement's first page names the company that is your counterparty.

The rule we apply on The Forex Bridge: if you live in the EU, the UK, Australia, South Africa, Kenya, the UAE or Qatar, a broker should open your account with a company licensed in your country or region. If it would open it offshore instead, you lose the local protections described in step 6.

Step 3: search the regulator's own register

Never trust a link to a "licence certificate" on the broker's own site: search the regulator's public register yourself. The main registers:

Search by the licence number first, then by the company name. A match on the number but not the name (or the other way round) is a warning sign.

Step 4: match the website and contact details

The register entry usually lists the firm's approved websites, address and phone number. Compare them with the site you are on:

• Domain: the web address must match one on the register exactly. "example-markets.com" and "examplemarkets-trade.com" are different sites.
• Status: the licence must be current ("Authorised", "Active" or similar), not "Cancelled", "Suspended" or "No longer authorised".
• Permissions: the register shows what the company may do. A firm authorised only to give advice, or only as an introducer, cannot hold your money or deal with you as a broker.

If the details do not match, assume you are on a clone until proven otherwise (step 7).

Step 5: know the regulator's tier

Not all licences mean the same. We group regulators in three tiers on our methodology page:

• Tier 1: strict rules on client money, capital, leverage and complaints, with active enforcement. The FCA, ASIC and EU regulators such as CySEC are in this group.
• Tier 2: real supervision with lighter rules, for example on leverage or audits.
• Tier 3: offshore regulators where a licence is quick to get and protection is thin. Many large brands keep a company here to serve countries where they hold no local licence.

A tier-3 licence is not proof of a scam, but it is not the same protection as tier 1. The TFB Score gives most of its regulation points to tier-1 and tier-2 licences for that reason.

Step 6: check the protections that come with your entity

The protection belongs to the company that holds your account, not to the brand. For your entity, look for these in the client agreement or the broker's legal pages:

Segregated client money

Your deposit should be kept in bank accounts separate from the broker's own money, so it is not used to run the business and is easier to return if the firm fails.

Negative balance protection

You cannot lose more than the money in your account. Retail clients of EU, UK and Australian entities have it by law; offshore entities may or may not offer it, so look for the exact words.

Compensation scheme

If a regulated firm fails, some countries pay eligible clients back up to a limit: the UK's FSCS and the EU's investor compensation funds are examples. These schemes cover only clients of the company in that country.

Leverage limits

Retail leverage on major currency pairs is capped at 1:30 in the EU, the UK and Australia. A broker offering 1:500 or more to you is almost always opening your account with an offshore company.

Step 7: rule out a clone

Scammers copy real brokers: same name, same logo, a register number that belongs to the real firm, on a look-alike domain. Clones usually give themselves away:

1. The domain is not on the register entry (step 4).
2. Deposits go to a personal bank account, a crypto wallet address sent in a chat, or a "payment agent" you are told to message.
3. You are contacted first, on WhatsApp, Telegram or social media, by an "account manager" who promises returns.
4. Withdrawals need an extra "tax", "fee" or "insurance" payment first.

Regulators publish warning lists of clones and unauthorised firms. The FCA warning list and the international IOSCO I-SCAN search many regulators at once. We collect regulator warnings on Scam alerts.

A worked example: how we record it

For every broker we review, the Bridge Report lists each licensed company with its regulator, licence number and a direct link to the register entry, and the date we last checked it. We re-check those facts every night, and the page shows "Facts re-checked" with the date only when that night's check really confirmed them. See any review on All brokers compared, or put two side by side on Compare.

Five-minute checklist

• The footer names the legal company and a licence number.
• You know which company would open your account.
• The licence number and name match on the regulator's own register.
• The register lists this exact website, and the status is current.
• The regulator's tier, and the protections of your entity, are clear to you.
• Payments go only to accounts in the broker's own company name.
• The broker or its domain is not on a regulator warning list.

Before you deposit

A licence makes a broker safer, not your trading. Most retail CFD accounts lose money, and each regulated broker publishes its own share; we show it on every page. Read our risk warning, start on a demo account, and check your country's rules on Brokers by country.