By ScamFreeFX research desk · Published
Five checks before you open an account
Identify the company behind the brand
Read the legal name, jurisdiction and company details in the proposed account agreement. A group may use different subsidiaries for different customers. Save the agreement and the website address so you can compare the same entity throughout your checks.
Use the official register for your jurisdiction
For UK services, start with FCA Firm Checker and the FCA’s explanation of authorisation and permissions. For US derivatives professionals, follow the CFTC’s registration guidance and search NFA BASIC. Elsewhere, find the relevant authority in our regulator directory and continue to its official records.
Match permissions and contact details
Match the company name, reference number, status and service permissions. Compare the website and contact information with the official entry; do not rely on a register screenshot supplied by the seller. The FCA’s clone-firm guidance explains why copied licence details are not enough.
Read warnings and disciplinary records
Check the exact name, aliases and domain. Distinguish a warning, an allegation and a concluded enforcement action, and read the date and issuing authority. No warning found means only that none was found in the sources searched.
Read the account and withdrawal terms
Check fees, withdrawal requirements, the contracting entity and the complaints process in the current agreement. Resolve discrepancies with the genuine firm’s official contact channel before sending money. Keep copies of the documents you relied on.
What the checks do not prove
A register entry is not a promise of returns, and a clean warning search is not proof of safety. A ScamFreeFX profile summarises the record we hold. Verify important details at the primary source and consider which entity and jurisdiction apply to your own account.
Common questions
- How can I check whether a forex broker is legitimate?
- Identify the legal entity in the account agreement, look it up on the relevant official register, and match the permissions, website and contact details. Then check warning and disciplinary records and read the withdrawal terms. A brand name or licence number alone does not complete the check.
- Does a licence guarantee that a broker is safe?
- No. A registration or authorisation is one check, not a guarantee against fraud or trading losses. It must belong to the entity you will contract with and cover the service being offered. The CFTC explicitly cautions that registration and a clean disciplinary record do not protect you from fraud.
- What is a clone broker scam?
- A clone uses details from a genuine authorised firm to impersonate it. The FCA advises checking official contact details, because a real firm's name and reference number can be copied while the website or phone number belongs to someone else.
Primary sources
- FCA: checking whether a firm is authorised
- FCA: clone firms and individuals
- CFTC: check registration and backgrounds
Continue with forex broker profiles or our assessment criteria. Found an error? Send the page URL and a primary source. This guide is educational, not investment advice.