Short answer: find the licence number in the broker’s footer, search it on the regulator’s own register, check that the website listed there matches the one you’re on, and read which company your client agreement is with. Ten minutes, and you’ll know whether the licence actually covers you.
1. Find the licence number
Every regulated broker lists its legal entities and licence numbers at the bottom of its website. You want a company name plus a number, for example “Pepperstone Limited, FCA 684312”. If a site only says “regulated” with no company or number, treat that as a no.
2. Search the regulator’s own register
Go to the regulator’s website directly, never through a link the broker gives you:
- UK: FCA Financial Services Register (register.fca.org.uk)
- Cyprus/EU: CySEC’s list of regulated entities (cysec.gov.cy)
- Australia: ASIC Professional Register (asic.gov.au, search the AFS licence number)
- South Africa: FSCA FSP search (fsca.co.za)
Check the status is current (“Authorised”, “Current”, “Active”) and that the permissions cover dealing in derivatives or CFDs. A licence for something else, such as payment services, doesn’t count.
3. Match the website
Registers list the firm’s approved web addresses. If the site you’re on isn’t one of them, you may be looking at a clone: a fake site that borrows a real firm’s name and number. Clones are one of the most common forex scams, so don’t skip this step.
4. Read who you’re actually contracting with
Brands run several companies in different countries. The licence that protects you is the one held by the company named in your client agreement, and that depends on where you live. A UK licence in the footer means little if you’re onboarded by the brand’s offshore entity. On every BrokersNest profile, “Which entity holds your money” shows which company serves which region.
5. Scan the warning lists
Search the brand on the FCA Warning List and the IOSCO I-SCAN portal, which collects warnings from regulators worldwide. One old warning about a clone isn’t a red flag about the real firm, but a warning naming the firm itself is.
Red flags that end the search early
- No company name or licence number anywhere on the site
- A licence only from a regulator you can’t find a working register for
- Pressure to deposit quickly, or a “manager” calling you about guaranteed returns
- Withdrawals that need an extra “fee” or “tax” paid first
We run these checks on every broker before it appears on BrokersNest. Our regulators guide explains what each licence is worth, and How we rank shows how regulation feeds into our scores.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
