FAQ: FCA vs ASIC vs CySEC, which is stronger?

Reviewed: 12 September 2026. This guide compares checks for retail CFD accounts, not the safety of a particular broker or the merits of a trade.

The short answer: compare your contract, not three badges

FCA, ASIC and CySEC supervise firms in different jurisdictions. A logo on a broker's homepage does not tell you which company will hold your account. Start with the legal name in the client agreement, then check its permissions, your client classification and the product you will use. There is no useful universal winner if those details are missing.

Before paying, save the agreement and ask: “Which legal entity is my counterparty, which regulator supervises that entity for this service, and which complaint process applies to my account?” A reply naming only the parent brand is incomplete.

What each framework helps you check

FCA: UK retail CFD protections

The FCA's CFD rules limit retail leverage by asset, require margin close-out and negative balance protection, and restrict trading inducements. These rules are not a promise that a regulated trade cannot lose money. Do not assume that a professional account or a group company's overseas contract receives the same treatment.

Use the FCA Financial Services Register to check the exact company and permitted activities. Compare its contact details with the website you are using. A genuine registration number copied by another website does not authenticate that website.

ASIC: Australian retail CFD conditions

ASIC's CFD intervention order includes leverage limits, margin close-out, negative balance protection and restrictions on inducements. The published extension runs to 23 May 2027. Check the current order again if opening or reviewing an account after that date.

An Australian licence shown by a brand does not establish that your account belongs to its Australian company. Ask for the legal name, AFSL details, product disclosure documents and the complaint procedure applicable to you. Do not infer compensation eligibility merely from the presence of an AFSL.

CySEC: the firm and compensation eligibility both matter

For a Cyprus investment firm, check the licensed entity and the services covered. CySEC's Investor Compensation Fund information describes conditional coverage: the lower of 90% of a covered claim or EUR 20,000. This is not an automatic refund of trading losses or a guarantee for every customer of a group.

Before relying on compensation, ask whether the company is a fund member, whether you are an eligible client, and whether the claim and service qualify. Keep the answer and the applicable terms; a marketing statement saying “protected” is not enough.

A five-document check before your first deposit

1. Client agreement: record the full legal name and governing-law clause. Do not substitute the brand name.
2. Official register record: match the entity and its current permissions, not just a screenshot supplied by a salesperson.
3. Account classification: identify whether you are treated as retail or professional, and read what changes if you opt up.
4. Product and funding terms: record the product, leverage, margin close-out, negative balance terms and named payment recipient. Ask for an explanation if the recipient differs from the contracting company.
5. Complaint and failure procedures: locate the internal complaint route and any applicable external dispute or compensation process. Check eligibility rather than assuming every route is available worldwide.

If these documents contradict each other, pause funding and obtain clarification through contact details independently verified against official records. Fast account approval does not resolve a legal-entity mismatch.

Worked example: one brand, two different accounts

Consider a fictional group advertising a UK company and a separate overseas company. Its homepage displays the UK licence, but the agreement offered to you names the overseas company. In that situation, the homepage badge is not evidence that UK retail protections apply to your contract.

Write down both legal names and ask why the account is assigned to the second entity. Check that entity separately. Do not send money on the assumption that all subsidiaries share the strongest licence in the group. This example illustrates the verification process; it is not an allegation about a named broker.

Questions readers commonly ask

Does regulation make my deposit risk-free?

No. Authorisation, investment performance and compensation eligibility are different questions. A regulated service can involve substantial trading losses. Confirm what a protection actually covers before treating it as insurance.

Is higher leverage evidence of a better licence?

No. Compare the entity, product and client category first. An offer of substantially different leverage may involve different terms; ask what changes rather than using leverage as a regulatory quality score.

What if withdrawals stop?

Preserve the agreement, account statements, deposit receipts, withdrawal request identifiers and dated correspondence. Use the firm's documented complaint process and check the appropriate official route for your entity and circumstances. Do not pay an unverified recovery agent simply because they quote a regulator's name.

Where should I continue checking?

Review the FXCN records for FCA, ASIC and CySEC, then confirm details in the official sources linked above. Our summaries help organise the check; they do not replace a live register or the terms governing your account.

This is general educational information, not personalised legal or investment advice. Rules, permissions and eligibility can change.