Learn · Stage 3: Choose a broker safely · guide 2 of 5
How to check if a broker is regulated (step by step)
Before you send money to any broker, check who the company really is and whether a financial regulator supervises it. It takes about ten minutes and it is the most important check you can make.
Step 1 — Find the legal company. Look at the bottom of the broker's website or in its legal documents, and write down:
- the full legal company name (not only the brand name);
- the licence or registration number;
- the regulator and the country named.
One brand often uses several companies in different countries, each with a different regulator and different protections. The company named in your account agreement is the one that matters.
Step 2 — Check the official register yourself. Go to the regulator's own website — type the address yourself or use the links below, never a link someone sends you. Search the company name and the licence number, and confirm:
- the licence is current — not expired, suspended or cancelled;
- the company is authorised for the service it offers you, such as dealing in foreign exchange or CFDs;
- the website address, phone number and e-mail on the register match the ones you are using.
Step 3 — Check it may serve your country. Rules differ from country to country. A licence in one country does not always allow a firm to take clients from another, and protections such as compensation schemes usually apply only to clients of the licensed company. Check your own country's regulator too: many publish warnings about foreign firms that target their residents.
Step 4 — Watch for clone firms. Scammers copy the name, licence number and logo of real companies. If the contact details differ from those on the register, treat it as a possible clone and stop.
Step 5 — Search the warning lists. Look the company up on alert lists such as your regulator's warning list and the global IOSCO I-SCAN (opens in a new tab) portal. Not appearing on a list does not prove a firm is safe — scam firms change their names often.
Official registers — examples:
- Australia: ASIC Professional Registers (opens in a new tab) · Moneysmart investor alert list (opens in a new tab)
- United Kingdom: FCA Financial Services Register (opens in a new tab) · FCA Warning List (opens in a new tab)
- European Union: ESMA registers (opens in a new tab) — then check the national regulator
- United States: NFA BASIC (opens in a new tab) · CFTC RED List (opens in a new tab)
More countries: Official financial regulator registers by country.
Remember: a company registration is not the same as a licence to offer trading. And regulation reduces some risks — it does not remove the risk of losing money when you trade.
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Trading involves significant risk of loss. Practise on a demo account first. Holy Trading Science provides education, not financial advice.