How to spot a fake or unlicensed broker

The sales tactics to watch for#

Fake brokers overwhelmingly rely on the same handful of tactics, almost regardless of what they're "selling" — forex, CFDs, binary options, or crypto:

• Unsolicited contact. A cold call, message, or ad — often after you filled out an unrelated "free guide" or "get rich" form online — from someone claiming to be a broker or account manager.
• Guaranteed or unrealistic returns. No legitimate broker or trading strategy can guarantee a return; markets don't work that way.
• Pressure to deposit fast, sometimes with a "bonus" for depositing more, or a countdown-style urgency ("this offer expires today").
• A dedicated "account manager" who calls regularly, encourages bigger deposits, and discourages withdrawals ("you'll lose your bonus," "there's a processing delay," "let's grow it a bit more first").
• Withdrawal problems that appear only once you actually try to take money out — unexpected fees, "verification" requests, or accounts that simply stop responding.

The one check that matters most#

A real broker soliciting customers in a given country is licensed by that country's financial regulator, and you can check this yourself, for free, before depositing anything:

• UK — FCA Financial Services Register, and check the FCA Warning List for known unauthorised and clone firms.
• US — FINRA BrokerCheck for investment professionals, or NFA BASIC for forex/futures firms.
• Cyprus — CySEC's register of Cypriot investment firms.
• Australia — ASIC's professional registers search.

A firm that isn't on the relevant register — even if its website looks polished, cites real-sounding regulation, or shows a UK/US address — is not actually authorized to take your money. Watch out too for "clone firms": scammers that copy the name, address, and registration number of a real regulated firm to look legitimate on a quick search. If in doubt, get the regulator's contact details independently (not from the broker's website) and ask them directly.

If you've already deposited#

Stop sending any further money, however much the "account manager" pushes back — a common tactic once a withdrawal is refused is to claim a bigger deposit is needed to "unlock" the funds. That's never true. Report the platform to us so others can be warned, and contact your bank about disputing any card payments.