CFDs are leveraged. Most retail traders lose money, and you can lose more than you deposit.
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How to check a broker's licence

A broker's website can say anything. The only reliable check is the regulator's own public register. It takes about five minutes.

South Africa: FSCA

  1. Get the broker's full company name and FSP number. Authorised providers must show their FSP number, usually in the website footer or legal pages.
  2. Search the FSCA register for the FSP number or company name. You can also call the FSCA on 0800 110 443 to confirm a provider's status.
  3. Check that the name on the register matches the company you'd actually be dealing with. Scammers often copy a real firm's FSP number.
  4. Check the status. It should be authorised, not lapsed, suspended or withdrawn.
  5. Check the licence categories. A provider can be licensed for some products and not others.
  6. If someone says they're a representative or 'juristic representative' of another FSP, check that FSP on the register and ask for proof they're appointed by it.

FSCA register search ↗

United Kingdom: FCA

  1. Search the FCA Financial Services Register for the firm's name or Firm Reference Number (FRN).
  2. Check that the firm is authorised and has permission for the service it's offering you.
  3. Use only the phone number, email and website listed on the register to contact the firm. 'Clone firms' copy real firms' details.
  4. Check the FCA warning list for unauthorised firms. If you can't find a firm, the FCA says to call it on 0800 111 6768.

FCA Financial Services Register ↗

Australia: ASIC

  1. Search ASIC's professional registers for the firm's name or Australian Financial Services (AFS) licence number.
  2. Check that the licence is current and that the name matches the company you'd be dealing with.
  3. Check that the licence covers the products offered, such as derivatives.
  4. Check Moneysmart's investor alert list for firms ASIC has flagged.

ASIC professional registers ↗

Good to know

  • Many brokers run several companies. The licence that protects you is the one held by the company you actually open your account with. Check your account agreement.
  • An offshore licence (for example from an island regulator) usually gives you different protection from your home regulator.
  • A licence shows a firm is authorised. It doesn't mean a product is suitable for you.

General information, not advice. Brokrpedia is not an FSP. CFDs are leveraged and most retail traders lose money.