Locate the exact legal entity name that the broker uses to serve your country — it appears in the client agreement, not the marketing page — then search that entity name on the relevant regulator's public register. Confirm status is 'authorised' (not lapsed or withdrawn) and that the permitted activities cover CFD dealing. A group licence held by a different entity does not cover your account.
Why does the entity name matter more than the brand name?
Large broker groups operate through multiple legal entities — one per jurisdiction. The brand displayed on the website may hold a strong FCA or BaFin licence, while the entity that signs your account agreement is an offshore subsidiary with weaker protections. Negative-balance protection, client-money segregation rules and compensation-scheme eligibility are determined by the entity on your contract, not the group's best licence. The register check is the only step that closes this gap.
Under MiFID II, an EU-authorised firm can passport its services into other member states without a separate local licence. A CySEC-authorised entity serving a German or Italian client is legally sound — what matters is that the entity appears on a real EU or UK register. The marketing badge tells you nothing about which entity you are with.
How to search the register: a five-step sequence
Navigate directly to the regulator's official domain — BaFin (bafin.de), FCA (register.fca.org.uk), AMF (amf-france.org/en), CONSOB (consob.it), CNMV (cnmv.es), KNF (knf.gov.pl/en) or AFM (afm.nl/en). Never follow a link from an advert or a comparison site to reach the register. Run the firm name search: the entity must appear with a status of 'authorised' or equivalent, not 'registered', 'appointed' or 'lapsed'. A near-match on name is not a match — the entity name must be exact.
Then cross-check three data points between the register and the broker's website or your account documentation: the registered address, the primary phone number, and the website domain. A discrepancy on any one of these is the signature of a clone firm. As of 2026, regulators including the FCA and the AMF maintain published lists of known clone firms; check those lists as a secondary step if anything looks wrong.
- Status: 'authorised' — not lapsed, suspended, cancelled or in-scope-as-appointed-representative only.
- Permitted activities: must include dealing in investments as principal, or equivalent for CFDs.
- Contact match: address, phone and domain on the register must match the site you are on exactly.
The offshore-arm trap: same brand, different protection
The offshore-arm problem is distinct from a clone-firm scam — the broker is real, but the entity onboarding your account is not the EU- or UK-regulated one. Offshore arms typically operate under lighter-touch regulation in jurisdictions such as the Seychelles, the Bahamas or the Cayman Islands. The ESMA 30:1 leverage cap, negative-balance protection and any EU or UK compensation scheme do not travel with the brand; they travel with the specific entity's licence.
The check is straightforward: open your account agreement and read the entity name on page one. Then search that entity on an EU or FCA register. If it is not there, you are not covered by ESMA or FCA protections, regardless of what the homepage claims. Some broker groups default new sign-ups to the offshore entity in order to offer higher leverage — that is the trade-off being made on your behalf if you do not check.
Frequently asked questions
How do I check if a forex broker is regulated?
Find the exact legal entity name that serves your country on the broker's site, then search that name on the relevant regulator's official public register (e.g. BaFin, the FCA, the AMF, the CNMV). Confirm it is listed, currently authorised, and permitted for the relevant activity.
What is a clone firm?
A clone firm is a scam that copies the name, licence number and details of a genuinely regulated broker to appear authorised. Cross-check the contact details, domain and address on the regulator's register against the site you are using — if they differ, you may be dealing with a clone.
Is an EU broker passporting into my country safe?
An EU broker authorised in one member state (for example by CySEC in Cyprus) can legitimately serve clients in another under MiFID II. That is normal and legal. What matters is that the entity is on a real EU register, authorised for CFD dealing, and is not an offshore arm of the same brand.
Sources & further reading
Pipex is Spreadwise's disclosed AI research agent: it computes the all-in round-trip — spread, commission and swap — before rating any ESMA-regulated forex or CFD broker, and cross-checks every regulatory claim against the CySEC, FCA or BaFin public register. No star rating is issued before the numbers are verified. Reviewed and signed off by Eitan Gorodetsky, Editorial Strategist, Lead Media. How Pipex works →