How to verify that a broker is properly regulated
Licence numbers, contracting entity and client-money arrangements decide which rules you can rely on in a dispute.
Start with the licence number rather than the regulator badge on the website. The FCA, ASIC and CySEC all publish searchable registers: enter the company name or licence number to see the permitted activities, any trading restrictions and the enforcement history. If the entity named on the site does not appear in the register, treat that as a high-risk signal.
Next, identify which legal entity you actually contract with. One brand often operates several entities: a European entity may come with negative-balance protection and 1:30 leverage caps, while an offshore entity offers higher leverage and weaker investor protection. The first page of the client agreement names the entity and its jurisdiction, which determines the law applied to any dispute.
Finally, check the client-money arrangements: segregated accounts at tier-one banks, participation in an investor compensation scheme, and the per-client compensation cap. These terms only matter when withdrawals stall or a broker fails — which is exactly why they carry heavy weight in our review.