How to Check if a Broker Is Regulated: FCA, CySEC, BaFin in 3 Steps

Before opening an account with a broker, only one question really matters: who are you trusting with your money? A regulated broker is supervised by a financial authority, must keep your funds separate from its own and, in Europe and the UK, must belong to a compensation scheme. An unregulated broker has none of these obligations. The good news is that checking is public, free and takes about two minutes.

Step 1: find the legal entity and its licence number

Scroll to the very bottom of the broker's website. You should find the company's exact legal name (for example "XYZ Markets Ltd"), its country of incorporation, the name of the regulator and a licence number (FRN in the UK, CIF number in Cyprus, REGAFI number in France…). If this information is missing, vague or reduced to a logo, that is your first red flag.

Step 2: check the regulator's official register

Every authority publishes the list of firms it has authorised. Search for the name or licence number directly on the authority's own website, never through a link supplied by the broker.

On the register entry, check three things: the status is active (not "revoked" or "suspended"), the authorised activities actually include CFD or forex trading, and the website listed matches exactly the one you are on.

Step 3: check which entity actually serves you

Many international brokers operate several companies: a regulated subsidiary in Europe (often in Cyprus), one in the UK, and one or more offshore subsidiaries (Seychelles, Mauritius, Vanuatu, St Vincent…). The brand name is the same, but the protections are not. When you sign up, the account opening agreement names the entity that will be your counterparty, and that is the one that counts. A European resident who is routed to an offshore entity loses most of the protections described below.

What European regulation guarantees you

• Segregated client funds: your money is held in accounts separate from the broker's own, which in principle protects it if the firm goes bust.
• Negative balance protection: a retail client cannot lose more than the amount deposited in the account.
• Capped leverage for retail clients: 30:1 on major currency pairs, 20:1 on other pairs, gold and major indices, 10:1 on commodities, 5:1 on shares and 2:1 on cryptocurrencies.
• A risk warning with a figure: the broker must display the percentage of its retail clients who lose money.
• A ban on bonuses and deposit-linked incentives for CFDs sold to retail clients.
• Compensation schemes if the firm fails: up to €20,000 in Cyprus (ICF), €70,000 in France for securities (FGDR) and £85,000 in the UK (FSCS).

Red flags that should stop you

• No licence number, or a number you cannot find in the register.
• A website address that differs from the one in the register: this is the clone technique, where scammers copy the name of a genuine authorised firm.
• Unsolicited calls or messages, pressure to deposit quickly, an "account manager" promising profits.
• Deposits accepted only in cryptocurrency, or withdrawals that suddenly become impossible.
• Generous deposit bonuses offered to a European retail client.

Before depositing anything, check the AMF blacklists, the FCA's ScamSmart service and the IOSCO investor alerts portal, which brings together warnings from regulators around the world.

Compare regulated brokers on Analyse-Trading

Every listing in our broker comparison shows the declared regulators, minimum deposit, leverage and platforms, along with reviews from members. Always double-check the information in the official register before opening an account: a licence can change, and the entity named in your contract is the one that counts.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. This guide is for information only and does not constitute investment advice.