"Regulated" is four separate facts, and all four must point at your account
When a broker says it is regulated, check four things: which legal entity holds the permission, which regulator granted it, what activities it covers, and whether that entity may serve your country. Only when all four line up does "regulated" describe your account.
Registers are the primary source. Websites, badges and screenshots are claims to be checked against them.
- The four checksWhere each answer lives
- Which register to useUK, Australia, US, EU
- Registered vs authorisedWords that get blurred
- How FXCN weighs it30% of the score
1. The four checks
| Check | Where the answer lives | Common trap |
|---|---|---|
| Which entity? | Your client agreement. EU firms must give clients their name and address and the name and address of the authorising regulator (Delegated Regulation 2017/565, Article 47). | The website footer lists several group companies |
| Which regulator? | That regulator's own register, searched by the exact legal name | The number belongs to a sister company or is used by a clone |
| Which activities? | Permissions on the register, including whether it may hold client money | Permission for advice or arranging only, while dealing in CFDs |
| Which clients? | The agreement's territory clauses; your own regulator's warnings | Protection applies only to clients the entity is allowed to serve |
2. Which register to use
| Jurisdiction | Register | What it shows |
|---|---|---|
| United Kingdom | FCA Firm Checker / Financial Services Register | Status, permissions and contact details; the FCA says it updates on average every 24 hours |
| Australia | ASIC professional registers | Licensees and their representatives, among other categories |
| United States | NFA BASIC | Registration, NFA membership and disciplinary history; all registered retail foreign exchange dealers must be NFA members |
| European Union | The home regulator's register; ESMA registers for orientation | Authorisation and, where applicable, cross-border services |
You can also compare an entity against FXCN's records with the licence check, then confirm on the register.
3. Words that get blurred
- Incorporated / registered company
- The company exists in a companies registry. That is not permission to provide financial services.
- Authorised / licensed
- A financial regulator has permitted specific regulated activities. Check that the scope includes your product.
- Appointed representative / agent
- The business operates under another firm's authorisation. Check the principal and the scope of the appointment.
- Applied for a licence
- An application is not a permission. Until granted, the rules for licensed firms do not apply.
4. What regulation gives a retail client in practice
Under UK, EU and Australian retail CFD rules, a licensed entity's retail clients typically get: leverage caps of 30:1 on major pairs; a 50% margin close-out and negative balance protection; client money segregation; and in some jurisdictions investor compensation such as the UK FSCS. Australia's last-resort scheme excludes FX and derivatives trading. US retail forex has its own rules, including a 50:1 major-pair cap. Offshore regimes usually provide none of these by default.
5. How FXCN weighs regulation
Regulatory strength is the heaviest of FXCN's five score dimensions at 30%, followed by risk and compliance, operational transparency and user reputation at 20% each, and disclosure at 10%. The dimension starts at 50 and adds points per licence by FXCN tier (Tier 1 +30, Tier 2 +12, Tier 3 +3), adjusted for status; confirmed penalties are deducted after the cap. Details: methodology.
6. Frequently asked questions
More licences means safer?
More licences means the group is authorised in more places. Your account sits with one entity, and its licence is the one that counts.
Will the regulator get my money back?
Regulators supervise firms and publish warnings; they generally do not recover money for individuals. Use the firm's complaints process, any ombudsman or compensation scheme that applies, and report fraud to the police.
A firm says it is "regulated" by a company registry. Does that count?
No. A companies registry records incorporation, not permission to deal in financial products.
Sources and open items
- Delegated Regulation (EU) 2017/565: Article 47.
- FCA: Clone firms and individuals (register update frequency).
- ASIC professional registers search.
- NFA: RFED registration.
- ESMA Registers.
- FCA COBS 22.5; CSLR; 17 CFR 5.9.
- FXCN scoring algorithm v1 (read 11 October 2026).