IC Markets
"Regulated" is the most-used and least-checked word in forex marketing. It is easy to verify properly, and doing so takes a few minutes. This guide covers where to look, what to confirm, and the one trick that fools most traders: a real licence attached to an entity that is not the one holding your account.
Step 1: Find the legal entity and licence number
Scroll to the broker's website footer or open its "Legal", "Regulation" or "About" pages. You are looking for the full registered company name (not the brand), a company registration number, and a financial licence or authorisation number, often written as a reference like "licence no. 12345" or "authorised and regulated by [regulator], reference 12345". Write all of it down. A broker that buries or omits this is telling you something.
Step 2: Go to the regulator's own website
Type the regulator's name into a search engine and go to its official site directly. Do not follow a "verify us here" link from the broker, because a clone site can fake that. Every major financial regulator publishes a public register of the firms it authorises. Find the register or "check a firm" tool and search by the licence number first, then by the company name to cross-check.
| Region | Regulator | Register to use |
|---|---|---|
| United Kingdom | FCA | Financial Services Register on fca.org.uk |
| Australia | ASIC | Professional Registers / AFS Licensee search on asic.gov.au |
| Cyprus / EU | CySEC | Regulated Entities list on cysec.gov.cy |
| South Africa | FSCA | List of regulated entities on fsca.co.za |
| United States | NFA / CFTC | BASIC system on nfa.futures.org |
For other jurisdictions, search "[country] financial regulator forex register". If a broker claims a licence from a body you cannot find a register for, treat that as unregulated.
Step 3: Confirm four things on the record
- The entity exists and the number matches. The registered name on the regulator's site should match the company name from the broker's legal page.
- The permissions cover dealing. Look for authorisation to deal in investments or derivatives as principal, or to act as a CFD or OTC derivative provider. An advice-only or introducing licence does not make the firm your counterparty.
- The status is current. Not lapsed, suspended, restricted, or withdrawn.
- The entity matches your account agreement. When you open an account, the counterparty named in the client agreement must be the same entity you just verified.
The entity-substitution trick
This is how a real licence gives a false sense of safety. A broker group runs a well-regulated entity in, say, the UK or Australia, and advertises that licence prominently. But when you sign up, the account is opened with a group company registered offshore in a jurisdiction with light regulation. Nothing is hidden; it is in the client agreement, which few people read. If the entity holding your money is not the entity on the strong licence, you have the weaker protection, whatever the homepage says.
Elena checked her broker's licence and found a genuine CySEC authorisation. She deposited, then read her client agreement closely and saw the counterparty was the group's entity in Saint Vincent and the Grenadines, which has no forex regulation. The licence was real; it just was not her entity. She moved to a broker whose EU-licensed entity was the actual counterparty on her agreement.
What "regulated" actually protects
- Conduct rules: how the broker prices, markets, onboards, and handles complaints.
- Client-money segregation: your funds kept separate from the firm's operating money.
- Capital requirements: the firm holds a buffer against its own risk.
- A complaints route: the firm, then the regulator, and often a financial ombudsman.
- In some jurisdictions, a compensation scheme that pays out up to a limit if the firm fails.
Regulation does not protect you from losing money trading, and it is not a guarantee your balance is safe if the firm collapses in every jurisdiction. It raises the floor considerably compared with an unregulated broker.
Screenshot the regulator's register entry on the day you open your account, showing the entity name, permissions and active status. If there is ever a dispute, you have a dated record of what the register showed and what you were told.
Checking a licence is not hard, but you have to do all four steps, and the last one, matching the entity to your agreement, is the one people skip. A licence page that says "regulated by the FCA" means nothing if the account you opened is with an offshore company in the same group. Read the client agreement and match the name.
Frequently asked
How do I verify a forex broker's licence?
Find the legal company name and licence number on the broker's site, then go directly to the named regulator's official website and search its public register. Confirm the entity exists, the permissions cover dealing in derivatives or CFDs, the status is active, and the entity matches your account agreement.
What is the difference between a brand name and a legal entity?
The brand is the marketing name you see. The legal entity is the registered company that actually holds your account and is named on your client agreement. A broker group can run several entities under one brand, with very different regulation. The entity is what you verify.
Does the regulator's jurisdiction matter?
Yes. A licence from the FCA, ASIC, CySEC, or an equivalent major regulator carries real conduct rules, segregation and a complaints route. A licence from an offshore jurisdiction with minimal oversight offers far less, even if it technically exists.
The broker is regulated but my account is with an offshore entity. What does that mean?
You have the offshore entity's protection, not the advertised one. The strong licence belongs to a different company in the group. For dispute resolution and client-money rules, your account is governed by the weaker jurisdiction.
Is a regulated broker safe?
Regulation raises the floor: conduct rules, segregation, capital requirements and a complaints process. It does not stop you losing money trading, and protection if the firm fails varies by jurisdiction. An unregulated broker offers none of it.