How to check if a broker is FCA regulated

Before you deposit with a broker that says it is regulated in the UK, check it yourself. It takes a few minutes, the Financial Conduct Authority (FCA) register is free and public, and it is the one source that a broker cannot edit.

Step by step

1. Find the firm reference number (FRN). Regulated firms normally show it in the website footer, the terms and conditions or the client agreement. If you cannot find one anywhere, treat that as a warning sign.
2. Search the FCA Register at register.fca.org.uk. Type in the FRN rather than the brand name, because brand names can be copied and trading names differ from the legal entity.
3. Check the status. You want to see that the firm is authorised and not, for example, cancelled or in the process of being wound down.
4. Check the permissions. Authorisation is for specific activities. Confirm the firm is permitted to do what you are asking it to do, such as arranging deals or dealing as principal in the products you plan to trade.
5. Match the details. The registered address, website and phone number on the register should match the ones you were given. A clone firm often uses a real FRN with different contact details.
6. Check the FCA Warning List. The FCA publishes a list of firms and websites it has warned about, including clones of authorised firms. Search the brand and the web address.

Why the exact legal entity matters

Many brokers operate several entities in different countries. The entity that holds your account decides which regulator applies and what protections you get. UK retail clients should be onboarded by the UK-authorised entity. If a broker moves you to an offshore entity, the FCA rules and the Financial Services Compensation Scheme (FSCS) may not apply to your account.

What FCA authorisation does and does not tell you

• It shows the firm is authorised and supervised for the activities listed. It is not a guarantee that the firm will never fail or treat a client badly.
• For eligible claims against an authorised firm that fails, the FSCS can pay compensation up to a limit. Check the FSCS website for the current limit and what is covered.
• FCA rules for retail CFD trading include leverage limits and negative balance protection. A broker advertising much higher leverage to a UK retail client is a reason to ask which entity is actually serving you.

Reading the register entry properly

A register entry has several parts and each answers a different question. The status says whether the firm is authorised today. The permissions section lists the regulated activities it may carry on. The contact details show the address, phone number and website the regulator has on file. The individuals and appointed representatives sections show who works for the firm and which other firms act under its authority.

• Status: look for authorised, and read the date. A status such as cancelled or in run-off means the firm should not be taking new business.
• Permissions: a firm that arranges deals in investments is not automatically allowed to deal as principal or to hold client money. Match the permissions to what you are being offered.
• Requirements and limitations: some firms are authorised with conditions attached, such as not being allowed to hold client money. These notes matter.
• Trading names: a brand you know may not be the legal firm at all. Check whether the trading name appears against the firm reference number you were given.

A worked example of a mismatch

Suppose a website says it is authorised and shows a reference number. You search the number and it belongs to a genuine authorised firm, but the firm is a small advisory business with a different name, a different address and a different website. Nothing about that entry supports the trading platform you are looking at. This is what a clone or misuse of a reference number looks like, and it is why matching the details, not just finding the number, is the step that matters.

What to do if you cannot find the firm

1. Ask the firm for its full legal name and reference number in writing. A regulated firm can answer this immediately.
2. Search the register by the legal name as well as by the number, in case of a typo.
3. Check the FCA Warning List and any similar list from the regulator in the firm's stated country.
4. Contact the regulator through the contact details on its own website, not the ones supplied by the firm, and ask whether the firm is authorised.
5. Until you have a verifiable answer, do not deposit.

Doing this once for each new broker takes a few minutes. It is worth repeating if a broker later asks you to move to a different entity or a different platform, because that is exactly when protections can change without much notice.

Other regulators

Brokers outside the UK are regulated by other authorities, and the strength of oversight varies a lot between jurisdictions. The same approach applies: find the licence number on the broker's site, then confirm it on that regulator's own public register, not on a link the broker supplies.

Key takeaways

• Search the FCA Register by firm reference number, not brand name.
• Check status, permissions and any requirements, and match address, website and phone to what you were given.
• Search the FCA Warning List for the brand and the web address.
• Confirm you are being onboarded to the UK-authorised entity, not an offshore sibling.
• If you cannot verify the firm, do not deposit.