How to check a broker before opening an account
Find the legal entity, check its registration and read the account terms before transferring money.
In brief: Start with the legal entity named in the account agreement. Use the official register for the country and product involved to check that entity’s status and permissions.
Identify the legal entity
Several companies in different countries can operate under one brand. Write down the legal name, country and registration number of the entity that would service your account. A shared logo tells you little about the entity you are signing with.
Check the official register
In the United States, NFA BASIC covers firms and professionals in the derivatives industry. FINRA BrokerCheck covers securities brokers and firms. Elsewhere, use the relevant regulator’s register. Review the current status, activities and any disciplinary history disclosed in the record.
Cross-check contact details
A lookalike company may borrow the name of a registered firm. Compare the website and contacts with official records where available. If you’re unsure, contact the firm using a phone number obtained from an independent official source before sending money.
Read the agreement and fee schedule
Check who holds your funds and carries the account, how trades and data are priced, how withdrawals work and what happens if you fall below margin requirements. Registration helps establish a firm's status; it does not prevent trading losses.