How to Choose a Regulated Forex Broker: 8 Checks

2018-09-30

Your broker holds your money and executes your trades, so choosing one is the most important decision before you start trading. Run these eight checks first.

1. Who regulates the broker?

Look for a licence from a recognised regulator such as the FCA (UK), ASIC (Australia) or CySEC (Cyprus). Write down the licence number shown on the broker website.

2. Verify the licence on the official register

Search the licence number on the regulator's own website, not on the broker's. Check that the company name and website domain on the register match. Our regulation check guide links to the main registers.

3. Which company will you sign with?

Most groups run several companies under different regulators. Your protection depends on the company named in your client agreement, which depends on your country. It is often not the best-known licence of the group.

4. How are client funds held?

Read whether client money is kept in segregated accounts and whether any compensation scheme applies to your entity.

5. What is the real trading cost?

Your cost is the spread plus any commission, minus any rebate. Compare accounts on this total, not on the headline spread. Our live spread comparison shows actual spreads.

6. Platforms and trading rules

Check the platforms (MT4, MT5, cTrader and so on), minimum trade size, leverage, stop-out level, and whether EAs, scalping and hedging are allowed.

7. Deposits and withdrawals

Check which payment methods work in your country, the fees, and how long withdrawals take.

8. Does the broker accept clients from your country?

Many brokers do not accept clients from certain countries. Each broker page on this site lists the countries we know are not accepted.

Margin trading carries a high level of risk. Only trade with money you can afford to lose.