Look beyond the promises. Learn how to check a broker.

Verify the licence, not just the logo

Start with the legal name in the client agreement, not just the brand. Find the regulator’s website independently. Check the firm’s current status and any restrictions. A certificate, badge or screenshot on the broker’s website is not independent verification. Keep a dated record and recheck before acting.

Company registration is not financial regulation

A company incorporation certificate does not by itself authorise investment or brokerage services. Confirm the financial licence, permitted activities and entity opening your account. A licence in one country does not automatically authorise services everywhere; check the rules where you live and for the product being offered.

Spot a clone firm

Fraudsters may copy a genuine firm’s name and licence number. Compare the website, phone number and email address with the regulator’s records. Contact the firm using independently verified details if anything differs. Check warning lists, but remember that absence from a warning list is not proof of legitimacy.

Read fees and withdrawal conditions

Review commissions, spreads, financing charges, inactivity fees and withdrawal fees where applicable. Read processing times, identity-check requirements, restrictions and complaint procedures. Confirm the payment recipient independently. Pressure to pay additional money to release a withdrawal is a warning sign: pause and seek independent help.

Regulated does not mean risk-free

Be cautious about guaranteed profits, fixed daily returns and pressure to act immediately. Investments can lose value, and leverage can magnify losses. Compensation and client-money protections depend on the jurisdiction, entity, product and eligibility. Ask what actually applies; do not assume every loss is covered.

Before you deposit: a checklist

• Identify the entity that will hold your account.
• Verify its licence status and relevant permissions.
• Match its website and contact details; check warnings.
• Confirm it may offer the service in your country.
• Review costs, withdrawal terms, risks and complaints procedures.
• If anything is unclear, pause and seek independent advice.

Official sources

Examples for the UK and Australia—not a worldwide list or an endorsement. Use the relevant regulator for your location and the entity you are checking.

• UK FCA: Firm Checker
• UK FCA: warning list
• Australia ASIC: what an AFS licence means

About this page

General education only, not personalised investment advice. This page does not verify, recommend or endorse any broker. Investing involves risk, including loss of capital. Regulation does not guarantee returns or prevent losses.

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