What does FCA regulated mean for a CFD broker?

FCA (Financial Conduct Authority) regulation means the broker is authorised by the UK's top financial regulator. FCA brokers must: keep client funds in segregated accounts, belong to the FSCS (Financial Services Compensation Scheme) up to £85,000, meet strict capital adequacy requirements, and provide best execution. It is one of the most protective regulatory frameworks in the world.

What are the red flags of a forex scam broker?

Key red flags: (1) No verifiable licence number, the broker lists a regulator but no number. (2) The number does not appear in the register. (3) The register shows the licence is revoked, expired, or restricted. (4) The regulator name is fake or obscure (FSA Comoros, IFSC Belize, very low standards). (5) Pressure to deposit more money or to "pay tax" to withdraw. (6) No physical address or a fake one.

How to Verify a CFD Broker Licence, Step-by-Step 2026

Q: Is CySEC regulation safe?

CySEC (Cyprus Securities and Exchange Commission) is an EU regulator and a full member of ESMA. It is a legitimate regulator and many reputable brokers hold CySEC licences. However, it has a lower capital threshold than FCA or ASIC, and CySEC licences are more accessible for brokers. As a result, some lower-quality brokers also hold CySEC licences. Verify independently regardless.

Why the sticker in the window means nothing

Every scam kitchen dresses itself up as the real thing, and a faked inspection certificate is their favourite trick. They will drop a genuine regulator's name, paste in a certificate image, or invent an official-sounding body from thin air. Your one real defence is to check the licence number for yourself on the official register.

Rule: If a broker cannot provide a specific licence number, or if that number does not appear on the regulator's official public register, assume the broker is unregulated.

The FCA inspection (UK)

The FCA (Financial Conduct Authority) lists every authorised firm at register.fca.org.uk.

Go to register.fca.org.uk and enter the firm name or FRN (Firm Reference Number)
Confirm the status is "Authorised", not cancelled, expired, or withdrawn
Check the Regulated Activities include "Dealing in investments as principal or agent" or similar forex/CFD permission
Verify the address and trading name match what the broker tells you
Check the Appointed Representatives, some brokers operate under another firm's licence (AR model), which is legitimate but means a different company is responsible

FCA-regulated brokers must keep client funds in segregated bank accounts and are covered by the FSCS for up to £85,000 if the firm fails.

The ASIC inspection (Australia)

ASIC (Australian Securities and Investments Commission) keeps its register at connectonline.asic.gov.au, with a plainer front door at the Moneysmart site, moneysmart.gov.au/check-and-report.

Search for the broker's AFS (Australian Financial Services) licence number
Confirm the status is "Current" and the licence covers retail clients
Check the authorised financial products include "Foreign exchange contracts" or "Derivatives"

The CySEC inspection (Cyprus / EU)

CySEC sits at cysec.gov.cy/en-GB/entities/. Look up the firm by company name or its CIF (Cyprus Investment Firm) number.

Confirm status is "Licensed and Supervised"
Verify the authorised services include "Reception and transmission of orders" and "Execution of orders"
CySEC licences apply EU-wide under MiFID II passporting, a CySEC broker can legally serve EU clients from any member state

The NFA inspection (USA)

The NFA (National Futures Association) runs its BASIC database at nfa.futures.org/BasicNet/.

Search for the broker by name or NFA ID number
Confirm the firm is a registered "Retail Foreign Exchange Dealer" (RFED) or "Futures Commission Merchant" (FCM)
Check the membership status, must be "Current Member"
Review the "Disciplinary Actions" tab for any regulatory sanctions

The red flags of a kitchen that failed inspection

No licence number anywhere, a proper kitchen prints its number right there in the footer
Licence number not found in the register, the most decisive red flag
Status is cancelled, expired, or restricted, former regulation is not current regulation
Offshore-only regulation, registries like FSA St Vincent, IFSC Belize, FSA Comoros, or FSC Mauritius have very low standards and offer minimal client protection
Pressure to deposit, urgent "limited offer" or account manager pushing for immediate deposits
Withdrawal problems, requests for additional fees to "release" funds is always a scam
Unbelievable returns, any broker claiming guaranteed or very high returns is either lying or operating a Ponzi scheme

Let us do the inspecting

Every kitchen in our database has already been through the inspection against the official registers, and we show the exact licence number, the regulator, and the date we checked. Use our free broker check tool to pull up any broker's paperwork in seconds, or open one of the individual broker check pages for the full data breakdown on any of the 100 brokers on our books.

Frequently Asked Questions

How do I verify a CFD broker is regulated?

Go to the regulator's official register and search for the broker's licence number. FCA: register.fca.org.uk. ASIC: connectonline.asic.gov.au. CySEC: cysec.gov.cy. NFA: nfa.futures.org/BasicNet/. Confirm status is active and the authorised activities match forex/CFD trading.

What does FCA regulated mean?

FCA regulation means the broker is authorised by the UK's Financial Conduct Authority. FCA brokers must segregate client funds, belong to the FSCS (£85,000 protection if firm fails), meet capital adequacy requirements, and provide best execution. It is one of the strongest retail trading regulatory frameworks globally.

Is CySEC regulation safe?

CySEC is a legitimate EU regulator, but it has lower entry requirements than FCA or ASIC. Many reputable brokers hold CySEC licences alongside FCA or ASIC. Treat CySEC-only as a lower tier, still legal, but less protection. Always verify the specific number on the CySEC register.

What are the red flags of a scam broker?

No verifiable licence number; number not found in the register; offshore-only regulation from low-standard registries (FSA Comoros, IFSC Belize); pressure to deposit; withdrawal fees to "release" funds; guaranteed return promises. If in doubt, check the licence yourself on the official register before depositing.

Last updated 2026-09-16. This article is for educational purposes only and does not constitute financial advice.

How to Verify a CFD Broker Licence (2026 Guide)