How to Check if a Forex Broker Is Regulated (Takes 2 Minutes)

Estimated reading time: 5 minutes

Quick answer: find the legal company name and licence number in the broker's website footer, then search for that company on the regulator's own register, not through a link the broker gives you. Confirm three things: the status is current (for example "Authorised"), the permissions cover dealing in CFDs or forex, and the website and phone number on the register match the ones you are using. If any of the three fails, do not deposit.

Checking whether a forex broker is genuinely regulated takes less than two minutes, yet many traders skip this step entirely. Unregulated brokers operate without oversight, which means there are no segregated client funds, no compensation schemes, and no recourse if something goes wrong. This tutorial shows you exactly how to verify any broker's licence using free public tools.

Step 1: Find the Broker's Regulatory Claim

Every regulated broker is required to display its licence information prominently. Scroll to the very bottom of the broker's website and look for a regulatory disclosure section. This typically appears as a paragraph of fine print that includes the broker's legal entity name, the regulator's name, and a reference or licence number.

If the broker does not display any regulatory information on its website, that is an immediate red flag. Walk away.

Step 2: Note the Regulator Name

Different regulators offer different levels of investor protection. Tier-1 regulators — the most trusted — include the FCA (UK), ASIC (Australia), BaFin (Germany), FINMA (Switzerland), and the SEC/CFTC (US). CySEC (Cyprus) is widely used by European brokers and is considered tier-2 but still reputable under MiFID II.

Be cautious of brokers regulated exclusively by offshore authorities such as the FSA in Saint Vincent, the IFSC in Belize, or the FSC in Mauritius. These jurisdictions have minimal capital requirements and limited enforcement capability.

A broker can hold multiple licences. A Pepperstone, for example, is regulated by the FCA, ASIC, CySEC, DFSA, and SCB. The more tier-1 licences a broker holds, the more oversight they operate under.

Step 3: Go to the Regulator's Public Register

Every major regulator maintains a free, publicly accessible online register. Here are the direct links for the most common regulators:

FCA (UK): the Financial Services Register at register.fca.org.uk. ASIC (Australia): the Professional Registers at connectonline.asic.gov.au. CySEC (Cyprus): the Regulated Entities section at cysec.gov.cy. BaFin (Germany): the Company Database at portal.mvp.bafin.de. NFA (US): the BASIC database at nfa.futures.org/basicnet.

Navigate to the relevant register for the regulator claimed by the broker.

Step 4: Search for the Broker

Enter the broker's name or registration number into the register's search field. Use the exact legal entity name from the broker's footer, not the brand name. For example, search "Pepperstone Group Limited" rather than just "Pepperstone."

If the broker appears in the results, click on their entry to view the full record. If no results appear, try searching by the licence number alone. If neither returns a result, the broker may not be genuinely regulated by that authority.

Worked Example: Two Brokers on the CySEC List

Here is the check done for real on 16 October 2026, using CySEC's list of licensed Cypriot investment firms.

Two things the CySEC list taught us. First, it has no separate status column: a problem shows up as a note in the licence number field, such as "Suspended", "Voluntary Suspension" or "Under examination for voluntary renunciation of the authorisation". Read that field, not just the number. Second, each entry shows telephone and email details, which you can compare with the contact details on the site you are about to use.

Both brands also run companies outside the EU, which a CySEC entry does not cover. Our Pepperstone vs IC Markets comparison lists each group's entities by region, and shows why the company you sign up with matters more than the brand.

Step 5: Verify Licence Status Is Active

The register entry will show the firm's current authorisation status. The exact wording varies by regulator, but you are looking for terms like "Authorised," "Active," "Registered," or "Licensed." Any of these confirm the broker is currently permitted to operate.

If the status says "Cancelled," "Revoked," "Suspended," or "Not Authorised," do not open an account. A cancelled licence means the regulator has withdrawn the broker's permission to operate, potentially for misconduct.

Also check the effective date. A brand-new licence (granted in the last few months) is not necessarily a problem, but a long track record — five or more years — is more reassuring.

On the UK register the two "dead" statuses mean different things. The FCA explains that a firm showing "No longer authorised" or "Revoked" can no longer carry out any regulated financial activities, and that you should avoid dealing with it. "No longer authorised" usually means the firm cancelled its authorisation voluntarily; "Revoked" means enforcement action led to the cancellation. The firm's "Disciplinary and regulatory action" section on the register shows why.

The FCA offers two tools. Its Firm Checker tells you whether a firm is authorised and has permission to sell you the product or service; use it before you buy. The Financial Services Register is the fuller public record, including historic fines and whether a firm was authorised at a past date.

Step 6b: Beat the Clone-Firm Trick

A clone firm is, in the FCA's words, a fake firm set up by scammers "using the name, address and 'Firm Reference Number' (FRN)" of a genuine authorised company. In a January 2021 warning the FCA reported that 2 in 5 (38%) investors said they would check a company's FRN, and explained why that alone is not enough: scammers copy real FRNs and invite victims to look them up.

The defence is the contact details. The FCA notes that the details on the register are provided and confirmed by the firm, and advises making sure the contact details you have been given match those on the Firm Checker. So:

How to spot a forex scam covers the other patterns, from recovery scams to fake account managers.

Step 6: Check Authorized Activities

The register entry lists the specific activities the firm is authorised to perform. For a forex and CFD broker, you want to see permissions such as "dealing in investments as agent," "arranging deals in investments," or "dealing in contracts for differences."

If the firm is only authorised for "advising on investments" or "insurance mediation," it is not licensed to execute trades on your behalf. This distinction matters — some firms use a legitimate but unrelated licence to appear regulated for services they are not actually authorised to provide.

Step 7: Cross-Check on BrokerCheck (US-Based)

If the broker claims to be regulated in the United States, additional checks are required. US-based forex brokers must be registered with the National Futures Association (NFA) and regulated by the Commodity Futures Trading Commission (CFTC).

Visit the NFA BASIC database at nfa.futures.org/basicnet and search for the broker's name. The entry will show their registration category, whether they are currently a member in good standing, and any disciplinary history. FINRA's BrokerCheck at brokercheck.finra.org provides similar information for securities-related activities.

Any broker claiming US regulation that does not appear in both the NFA and CFTC databases is either lying or confused — neither of which is acceptable when your money is involved.

NFA describes BASIC as "a free tool that NFA Members and investors can use to research the background of derivatives industry professionals." It also notes that firms you look up may hold, or have held, licences for services NFA does not regulate, and points to FINRA's BrokerCheck for securities registrations.

Frequently Asked Questions

Is a licence number on the broker's website enough?

No. Scammers copy genuine numbers. Look the number up on the regulator's own site, then check that the company name, status, permissions and contact details all match.

What if the broker is regulated, but not in my country?

Then the protections of your own regulator usually do not apply to your account. Check which company would open your account; brokers often onboard overseas clients through an offshore entity with weaker rules, as offshore broker leverage explained describes.

What does "Revoked" mean on the FCA register?

That the FCA cancelled the firm's authorisation after enforcement action. The firm can no longer carry out regulated activities, and the FCA advises avoiding it.

Does regulation protect me from trading losses?

No. Regulation covers how the firm holds your money and behaves towards you. It does not stop you losing money on trades.

Sources (read 16 October 2026): CySEC list of licensed Cypriot investment firms (cysec.gov.cy); FCA, "How to check a firm or individual is authorised" and the January 2021 clone-firm warning (fca.org.uk); NFA BASIC (nfa.futures.org); Pepperstone EU and IC Markets EU websites for the licence numbers they display.

Risk Disclaimer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs with these providers. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. This tutorial is for informational purposes only and does not constitute financial advice.