An unlicensed broker operates outside any supervision: there is no guarantee your money is kept separately and there is nowhere to turn if things go wrong. Always check for yourself whether a broker is licensed. It takes five minutes.
Step 1: find the legal entity
Look at the bottom of the broker's website. It should state which legal entity provides the services, with its licence number and regulator. If it doesn't, that is already a warning sign.
Step 2: look up that entity in the register
- Search the register of the regulator that issued the licence, for example CySEC in Cyprus or the Central Bank of Ireland.
- Brokers from another EU country: also check in your own national regulator's register whether the broker may offer services in your country under a European passport. The ESMA register is a useful starting point.
Make sure the name, address and website in the register match the firm you want to trade with.
Step 3: check warning lists
Regulators publish warning lists of firms operating without a licence. If the broker is on one, stay away.
Step 4: beware of clones
Fraudsters sometimes pose as an existing, regulated broker: a clone firm. They use the same name but a different website, phone number or payment details. Always use the contact details from the register, never from an advert or email.
Step 5: spot the red flags
- Promises of guaranteed or unusually high returns
- Pressure to transfer money quickly, or unsolicited contact by phone or social media
- Deposits only in crypto or to a personal account
- Problems or extra "fees" as soon as you want to withdraw
How we do it
On ForexPlatform we only list brokers licensed by a recognised regulator. For every broker you'll see the licence number, a link to the register and the date we last checked it. Read more in our methodology or use the broker check.
Sources
Frequently asked questions
Can a Cyprus-licensed broker serve clients across the EU?
Yes, if it holds a MiFID licence and has passported its services into the relevant country. You can check this in the host country's register or the ESMA register.
What should I do if I've been scammed?
Report it to the police and your national financial regulator, and contact your bank. Beware of so-called 'recovery firms' that promise to get your money back for a fee.
Editorial team
- Follows a fixed, public review methodology
- Verifies licences directly with the regulator
- Takes costs from brokers' official price lists