Key takeaways
- Verify the legal entity that signs your contract, not the brand.
- Use the regulator's own register and search by licence number.
- Read permissions and restrictions, not just the word 'authorised'.
- Cross-check the domain against the register and warning lists.
A licence badge in a website footer proves nothing on its own. Anyone can paste a logo. What matters is whether the exact legal entity you will sign a contract with appears on the regulator's own public register, with a status that allows it to serve you.
Why the legal entity matters more than the brand
Most large brokers operate several companies under one brand: one regulated in the UK, another in Cyprus, another offshore. The protections you receive, from investor compensation to leverage limits, depend on which entity opens your account. Two clients of the same brand can have very different legal rights.
The ten-minute check
- Find the legal entity in the contract. Open the client agreement or terms page and write down the full company name, registration number and address. The footer of the homepage is often a marketing-friendly summary; the legal documents are authoritative.Tip: If the contract names a different company from the one in the ad, stop and ask why.
- Go to the regulator directly. Type the regulator's address yourself or reach it from a trusted directory. Never follow the 'verify us' link on the broker's own site; fake sites link to fake registers.
- Search by licence number, not by brand. Brand names are reused and copied. A licence or firm reference number is unique. Check that the number on the register matches the one the broker quotes.
- Read the status and permissions. Look for 'authorised' or equivalent, then read what the firm may do. A firm authorised to advise on investments is not automatically allowed to offer leveraged derivatives to retail clients.Tip: Note any restrictions, expiry dates and former names.
- Check the warning list. Most regulators publish warnings about unauthorised firms and clones. Search the broker's name and domain there too.
- Confirm the domain. Compare the website address with the one on the register. Clone firms copy company details but run on different domains.Tip: Look closely for look-alike spellings and unusual endings.
| Check | Green flag | Red flag |
|---|---|---|
| Entity | Name and number match the register | Different company or no number |
| Status | Authorised for the relevant activity | Lapsed, restricted or 'appointed representative' only |
| Domain | Listed on the register or official site | Not listed, or similar-looking address |
| Contact | Address and phone match filings | Only a chat widget and an email |
Frequently asked questions
What if the broker holds licences in several countries?
Check which entity serves your country of residence. Your onboarding documents or terms will name it. Protections differ between entities.
Is an offshore licence good enough?
It can be legal, but protections such as compensation schemes and strict client-money rules are usually weaker. Compare what each regime actually promises.
What if I cannot find the firm on any register?
Treat that as a stop sign. Do not deposit until the firm can show a verifiable authorisation.