Is my broker regulated?
A licence number on a broker's website proves nothing until you have checked it yourself, and which regulator issued it matters just as much. Pick the regulator your broker names, answer a few questions about what you were able to confirm and how the broker treats you, and the checker scores how safe your money is likely to be. Every warning sign it finds is explained, along with what to check next.
What cost points
Points lost on each check, out of 100. Close the largest gaps first, or treat them as reasons to pick a different broker.
How the regulators compare
The rating each regulator gets here and the public register to search. Always open the register from the regulator's own website.
| Regulator | Tier | Register to search | Compensation if the firm fails |
|---|
How the safety score is calculated
Every broker starts on 100. Points are removed for a weaker regulator, for anything you could not confirm and for each warning sign. It is a structured checklist rather than a database search, so it is only as good as the checks you carry out.
Rate the regulator
Top-tier regulators cost nothing, the middle tier costs 10 points, offshore registers 35 and weak or missing regulation 55.
Check the licence
Not finding the firm on the register costs 35 points, mismatched website or contact details 30, and an unlicensed account entity 25. Anything you did not check costs half.
Client money
Funds not kept apart from the firm's own money cost 10 points.
Warning signs
Bonuses or promised returns 10, pressure to deposit 15, trouble withdrawing 30, a regulator warning list entry 40, and binary options sold to retail clients in the UK or EU 25.
Final score
The result is held between 0 and 100.
70 and above: low risk; 40 to 69: check further; below 40: high risk
Broker regulation FAQ
How can I tell whether a broker is regulated?
Open the regulator's own website, never a link supplied by the broker, and search its public register for the exact company name or licence number. Then confirm that the web address and contact details on the register match the site you are using, because scam sites often borrow a real firm's name and number.
Which financial regulators are strongest?
Those with strict capital rules, client money protection and active enforcement, such as the UK FCA, Australia's ASIC, the US CFTC and NFA, Germany's BaFin, Switzerland's FINMA, Singapore's MAS and Japan's FSA, are generally seen as top tier. EU regulators such as CySEC apply EU rules and form a solid middle tier. Offshore registrations offer little real protection.
Why does the exact company matter?
Many brokers run several companies under one brand, one licensed by a strong regulator and another offshore. Clients in some countries are signed up with the offshore company, which may allow more leverage but gives none of the protections. Check the company named on your account agreement.
Should a deposit bonus worry me?
Often, yes. The UK, EU and Australia restrict bonuses for retail clients, so a big bonus usually points to an offshore or unregulated company. Bonuses also tend to carry conditions that block withdrawals until you have traded a large volume.
What does regulation actually protect?
It depends on the regulator. Strong ones require client money to be kept separate from company money and set capital requirements, and some countries run compensation schemes if a firm collapses, such as the FSCS in the UK and the Investor Compensation Fund in Cyprus. Offshore registration rarely offers any of this.
Does the checker look brokers up automatically?
No, it does not connect to any regulator database. It walks you through the checks and scores the answers so you can decide with your eyes open. Always confirm details on the regulator's own website.