You always want to make sure your broker is trustworthy. You will find many such brokers in our best forex brokers in the world listing.
But, do you know how to check if a forex broker is licensed? That is exactly what we will look at here with a step-by-step guide of the entire process for you. This will help you check and verify the legitimate regulatory status of yours, and other brokers.
Let’s take a closer look.
Table of contents
How to check if a forex broker is licensed: Step by step guide
Here is a complete walkthrough of each step in the process to check your forex broker is licensed.
1. Go to the broker’s website
Your first step is to simply head over to your brokers’ website. Below you will see that we have used Oanda as an example.
2. Scroll to the footer
Once you are on the homepage, the next thing for you to do is scroll to the footer which is at the bottom of the homepage. Here you will typically find information related to the company like their registered business name. You should also take care to select the correct world area based on your location since many brokers will display different information for different regions.
3. Retrieve the regulation data
As you will see in the example below, you can locate the business name and regulator in this area of the site. You will need this in the next step. For our example, we can see the Oanda business name is OANDA Europe Markets Limited, and the Europe regulator is MFSA (Malta).
4. Head to the financial regulator website
Now you are ready to bring the information you have collected to the website of the regulator mentioned. In this case, we would visit the official website of MFSA though almost all regulators have a similar register. Once there, you will use their search function to locate the broker.
5. Go to the list of regulated companies
As you will see, once you search the business name on the regulators’ site, or a more simplified name like “Oanda” if you can’t locate the business name, a number of results should appear. Using these results you should be able to click on each one to see more information about that regulatory license.
The information displayed below is what was found in relation to our Oanda example with MFSA regulation.
Are all forex brokers licensed?
Most brokers are regulated. Even so, some regulatory bodies have better reputations than others. The most respected are often the hardest to obtain. This includes the US CFTC, or the UK FCA, or EU regulations. There are other offshore regulations that can be easier such as the VFSC, IFSC, and others, and though most of the financial regulators using them are legit, they are often chosen by scam forex companies.
You can learn more by reading our guide on how forex brokers cheat traders to help you avoid scams.
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