Check the contracting entity, product permissions, payment chain and withdrawal terms. Keep evidence, resolve conflicts and avoid treating a small withdrawal as proof of safety.
Choosing a forex broker is not finding a brand that can be declared completely safe. Establish which legal entity will supply which product, what permissions it has, and how its contract treats money and disputes. A brand, licence screenshot, trading application or successful withdrawal cannot establish all of this on its own.
Use this checklist before depositing. It does not require opening or funding an account to investigate it. Record “consistent evidence”, “unresolved” or “conflicting evidence” rather than treating a completed checklist as a safety certificate.
| Check | Evidence to retain | Reason to pause |
|---|---|---|
| 1. Contracting entity | Full company name, address and agreement version | Only a brand is identified |
| 2. Official record | Register page reached from the regulator's website and reference number | Only a sales screenshot or unverified link is available |
| 3. Status and permissions | Activities, products, restrictions and check date | Missing or revoked permission, or conflicting sales claims |
| 4. Domain and contacts | Registered website/phone or independent official confirmation | Lookalike domain or claims that official contacts are obsolete |
| 5. Residence and classification | Eligibility for your residence; retail/professional status | Requests for false residence or unexplained reclassification |
| 6. Client-money arrangements | Applicable holding, segregation and insolvency terms | Vague safety claims without supporting provisions |
| 7. Balance protection and compensation | Entity, product, client eligibility and exceptions | A group's regional protection is advertised as universal |
| 8. Leverage and execution | Margin, close-out, stops and execution policy | Unexplained requirements or guaranteed fills for ordinary stops |
| 9. Complete charges | Spread basis, both commission legs, financing and conversion | Only minimum spreads are disclosed |
| 10. Payment chain | Official instructions, recipient and agency relationship | Personal or unexplained recipients and bypassed procedures |
| 11. Withdrawals | Processing terms, KYC, charges, return routes and restrictions | New volume conditions, release payments or unverifiable taxes |
| 12. Complaints and records | Written complaint route, external eligibility and record export | No written channel; requests for passwords or remote control |
Pausing means not paying while facts remain unresolved, not publicly declaring a company fraudulent from one signal. A payment processor can legitimately differ from the contracting entity, but its role and instructions must be independently verifiable.
A, B and C below are fictional labels, not real companies.
| Document | What it establishes | What remains to check |
|---|---|---|
| Brand website displays entity A's licence | A may hold permissions in a jurisdiction | Whether your agreement is actually with A |
| Account agreement names entity B | B is the named contractual counterparty | B's own permissions, jurisdiction and protections |
| Payment page names provider C | C may process a payment | B's authority for C and the formal payment arrangement |
Even common group ownership does not automatically transfer A's compensation scheme, negative-balance protection or dispute route to B. If the KYC email, dashboard, agreement and payment instructions disagree, request a written explanation using independently verified contacts. Do not choose whichever promotional statement offers the most protection.
Renaming, migration and agency arrangements can explain different names. Verify the documented relationship rather than mechanically requiring identical wording everywhere. Keep previous versions and establish when a change applies to your account.
Identify the relevant jurisdiction and regulator, then start from that regulator's official website. Absence from the FCA register does not by itself establish absence of any licence worldwide. Conversely, a registration elsewhere does not prove authority to supply this product to you.
For a UK example, the FCA verification guide distinguishes registration from authorisation and tells consumers to check the required permissions. Historical status, client-money permissions and disciplinary information may require the full register. For US retail OTC forex, follow the CFTC's official checking route. Neither example substitutes for requirements relevant to your residence.
Where a domain or phone is absent or inconsistent, seek confirmation through independently obtained official contacts. Do not use a replacement number supplied by the suspected impersonator. The FCA forex-scam warning explains how real company details can be copied while contact information is substituted. Follow the official-register workflow for a fuller check.
Compare contract size, margin, execution terms, complete costs, available records and complaint accessibility for the same product and customer category. You do not need to make live trades solely to gather evidence: start with current terms, fee schedules and statements you already possess.
A low spread cannot compensate for an unverifiable entity. A high review score is not regulatory approval or a repayment guarantee. Reviews can offer leads, but distinguish verifiable order records from opinions, promotions and duplicated allegations rather than counting positive ratings.
For leveraged products, separately assess whether you understand and can bear the loss. A genuine provider does not make the product suitable or the trading profitable.
Please confirm the full contracting company name, registration or licence number, customer classification, and the basis on which this product is offered to residents of my country. Please supply the current client agreement, client-money arrangements, eligibility for balance protection and compensation, fee schedule, authorised payment-recipient information and complaint procedure. If the entity advertised during onboarding differs from the agreement, please explain the difference and its effect on my account.
Send it through verified official contacts. An initial enquiry does not need your full identity documents, passwords, verification codes, bank-card photographs or wallet recovery phrase. Before formal KYC submission, establish the receiving channel, necessity and privacy terms.
No. It demonstrates only that one payment completed under those conditions. It does not prove access to the whole balance, client-money arrangements or future solvency. There is no universal three-day pass rule. Do not take deposit risk to obtain a supposed safety certificate.
Registration for one activity does not authorise every investment product. Check the actual activity, instrument and restrictions. A payment-services or other registration is not a substitute for the relevant forex permission.
Stop additional payments; preserve agreements, communications, trading and payment records. Verify through independent official contacts, promptly consult the payment provider about completed transfers, and use the applicable written complaint process. Do not pay unverifiable recovery fees. The withdrawal action plan helps organize the evidence.
This is an information-verification process, not individual legal or investment advice or a guarantee of any provider's safety.