cTrader Broker Check
Let’s talk about figuring out if a broker is legit or just out to scam you. There’s a big difference between a full-on scam and a broker with a few bad reviews. New brokers might get negative feedback as they start; even long-established ones aren’t immune to the occasional unhappy client. That doesn’t necessarily make them bad. People are more likely to leave a review when something goes wrong, so if a broker has no reviews or just a handful of negative ones, that could be a red flag, too.
A scam broker will have few or no online reviews and, more importantly, be unregulated.
Broker Regulatory Claims
Check the broker’s website for licensing or regulatory information. You’ll usually find it in the footer, the About Us section, or under Regulation. Take note of the regulatory authority’s name and any license numbers listed. You can use this information to validate the claim.
Verify The Regulatory Authority
Once you have found the information on the broker's regulations, you can do some checks. If you cannot find any regulation information, this is a big red flag, and you must avoid them.
Visit the official website of the mentioned regulator; you can find the list below.
Use the search or licensing verification tool (most regulators provide one) to look up the broker using their name or license number.
Check if the broker's name matches the records in the regulator's database.
Check the Regulator's Reputation
Use the regulator’s online register or database to search for the broker using their name or license number. Confirm that the details match what the broker provides.
Global Regulations
- Financial Conduct Authority (FCA) - https://www.fca.org.uk (United Kingdom)
- Australian Securities and Investments Commission (ASIC) - https://asic.gov.au (Australia)
- Commodity Futures Trading Commission (CFTC) - https://www.cftc.gov (United States)
- National Futures Association (NFA) - https://www.nfa.futures.org (United States)
- Cyprus Securities and Exchange Commission (CySEC) - https://www.cysec.gov.cy (Cyprus)
- European Securities and Markets Authority (ESMA) - https://www.esma.europa.eu (European Union)
Asia-Pacific Regulators
- Monetary Authority of Singapore (MAS) - https://www.mas.gov.sg (Singapore)
- Hong Kong Securities and Futures Commission (SFC) - https://www.sfc.hk (Hong Kong)
- Japan Financial Services Agency (JFSA) - https://www.fsa.go.jp (Japan)
- New Zealand Financial Markets Authority (FMA) - https://www.fma.govt.nz
Middle East and Africa Regulators
- Dubai Financial Services Authority (DFSA) - https://www.dfsa.ae (United Arab Emirates)
- Financial Sector Conduct Authority (FSCA) - https://www.fsca.co.za (South Africa)
Other Notable Regulators
- Swiss Financial Market Supervisory Authority (FINMA) - https://www.finma.ch (Switzerland)
- Autorité des Marchés Financiers (AMF) - https://www.amf-france.org (France)
- BaFin (Federal Financial Supervisory Authority) - https://www.bafin.de (Germany)
Be careful if a broker says a minor or offshore authority regulates them, as these places often have weak oversight. Ensure the broker’s name, address, and website match what’s listed on the regulator’s site. Scammers sometimes lie about being regulated or try to pass themselves off as part of a legitimate company.
Review Independent Sources
Research the broker through trusted review websites or forums like:
Beware of Red Flags
When choosing a forex broker, watch out for warning signs like no regulation or fake claims about being regulated. Be wary of promises like guaranteed profits or offers of super-high leverage; they’re often too good to be true. Pushy sales tactics, unclear fees, or difficulty withdrawing money are big red flags. Also, check for bad reviews, warnings from regulators, or missing contact info. If the broker uses shady trading platforms, messes with trade execution, or offers unrealistic bonuses, steer clear. Always stick to well-regulated brokers and double-check their credentials before you invest.
Broker Alerts Database
Verify with international organizations like the IOSCO Investor Alerts Portal for brokers flagged globally.
IOSCO gets alerts and warnings from its members about firms not authorized to provide investment services in certain areas. Sometimes, these warnings concern firms pretending to be connected to legitimate companies.
Financial Conduct Authority Database
The Financial Conduct Authority must authorise nearly all financial service activities in the UK. You can search our Register for firms and individuals, and the activities firms have permissions for.
How to Find a Trustworthy Broker
To sign up with a trustworthy and regulated broker, look at our top 5.
