To verify a forex broker, find the exact legal entity name on the broker's site that serves your country, then search that name on the relevant regulator's public register. Confirm the licence number, status and permitted activities match — a real licence held by a different entity does not cover you.
Why does verifying a broker's licence matter?
A broker's regulatory licence is the single most important safety signal there is — it determines whether your funds are held under client-money rules, whether there is a compensation scheme, and whether the firm is supervised at all. Marketing pages routinely display impressive-looking badges; only the regulator's own register tells you which are real and which entity actually holds them.
The trap that catches most retail traders is that a large broker group holds several licences across different countries through different legal entities — and the entity that signs up a resident of your country is frequently not the one holding the strictest, best-protected licence. Verifying means checking the specific entity that will hold your account.
Search the entity on the regulator's own register
Go directly to the regulator's official website — never a link from an advert or a third-party blog — and use its public register or "check a firm" search. Confirm the entity is listed and currently authorised (not lapsed, suspended or withdrawn), that the licence covers the relevant activity, and that the contact details on the register match the broker you are dealing with. A near-match on name is not a match.
Each European regulator publishes its own register: BaFin in Germany, the AMF in France, CONSOB in Italy, the CNMV in Spain, the KNF in Poland, the AFM in the Netherlands and the FCA in the UK. EU brokers frequently passport in from another member state under MiFID II, so an entity authorised by, say, CySEC in Cyprus and serving a German client is legitimate — what matters is that the entity is on a real EU or UK register and authorised for the activity.
- Confirm the entity is listed and currently authorised.
- Confirm the licence covers dealing in investments / CFDs, not an unrelated permission.
- Cross-check the domain, phone and address against the register to rule out a clone firm.
Spot the clone-firm and offshore-arm traps
Two traps catch most people. The first is the clone firm: a scam site copies the name, licence number and address of a genuinely authorised broker so it appears regulated. The defence is to cross-check the website domain, phone and email on the regulator's register against the site you are actually on — regulators including the FCA, AMF and CNMV publish warnings about known clones.
The second is the offshore arm. A real, well-known broker group may operate both an EU/UK-regulated entity and an offshore entity in a jurisdiction with weaker protections. If the account you are being onboarded to is the offshore entity, the ESMA leverage cap, negative-balance protection and compensation scheme may not apply. Always confirm the exact entity in your client agreement is the EU- or UK-licensed one before depositing.
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
Spreadwise is an independent publisher comparing ESMA-regulated forex and CFD brokers across Europe and the UK. Our editorial desk verifies every regulatory claim against the regulator's own register and never accepts payment for a better review.