Is Your Broker Legit?

How to verify trading platforms, check regulatory registration, and spot fake broker websites before you invest.

Verification Tools Overview

Before investing any money with a broker or trading platform, verify their registration using these official government and industry databases. This takes 5 minutes and can save you your life savings.

FINRA BrokerCheck

What it checks: Broker-dealer firms and individual stockbrokers registered in the US

Information provided: Registration status, employment history, licenses held, customer complaints, disciplinary actions, arbitration awards

Who must be listed: All broker-dealers selling securities in the US must register with FINRA

Visit BrokerCheck

SEC Investment Adviser Public Disclosure (IAPD)

What it checks: Registered investment advisers (RIAs) and their representatives

Information provided: Registration status, assets under management, fee structures, disciplinary history, Form ADV filings

Who must be listed: Investment advisers managing over $100 million (smaller advisers register with states)

Visit IAPD

NFA BASIC (Background Affiliation Status Information Center)

What it checks: Forex dealers, futures brokers, commodity trading advisors, commodity pool operators

Information provided: NFA membership status, registration history, regulatory actions, arbitration cases

Who must be listed: All forex and futures firms operating in the US must be NFA members

Visit NFA BASIC

CFTC RED List

What it checks: Foreign entities claiming to offer forex/commodities trading to US customers without proper registration

Information provided: List of unregistered foreign entities that have come to CFTC's attention

Important note: Not being on the list doesn't mean an entity is legitimate - it just means CFTC hasn't flagged them yet

Visit CFTC Check

SEC EDGAR

What it checks: Company filings, registration statements, annual reports

Information provided: Whether a company has filed required securities disclosures

Use for: Verifying that companies offering securities have properly registered their offerings

Visit EDGAR
Quick Verification Process:
  1. Get the exact legal name of the broker/platform
  2. Search BrokerCheck for broker-dealers
  3. Search IAPD for investment advisers
  4. Search NFA BASIC for forex/futures
  5. Check CFTC RED list for foreign forex entities
  6. If not found in any database, proceed with extreme caution

Checking SEC and FINRA Registration

Understanding the US regulatory framework helps you know what to look for and what registration means.

Types of Financial Registrations

Entity Type Regulator What They Do Where to Check
Broker-Dealer SEC + FINRA Buy/sell securities for customers FINRA BrokerCheck
Investment Adviser SEC or State Provide investment advice for a fee SEC IAPD
Forex Dealer CFTC + NFA Forex trading for retail customers NFA BASIC
Futures Broker (FCM) CFTC + NFA Futures/options trading NFA BASIC
Money Transmitter State + FinCEN Transfer money (including crypto) State banking regulator

How to Use FINRA BrokerCheck

  1. Go to brokercheck.finra.org
  2. Enter the firm name or individual broker's name
  3. Review the detailed report, which includes:
    • Registration status (current, inactive, or never registered)
    • State licenses and their status
    • Employment history at broker-dealers
    • Customer complaints and their outcomes
    • Regulatory actions or disciplinary events
    • Arbitration cases and awards
  4. Verify the firm name matches exactly (scammers use similar names)
  5. Check that the website/contact info matches official records
Name Similarity Scam: Scammers often create entities with names similar to legitimate firms. "Charles Schwab" is legitimate; "Charles Schwab Trading Group" or "Schwab International" could be scams. Always verify the exact legal name.

How to Use SEC IAPD

  1. Go to adviserinfo.sec.gov
  2. Search by firm name or individual's name
  3. Review Form ADV filings, which include:
    • Business address and contact information
    • Assets under management
    • Fee structures and compensation methods
    • Types of clients served
    • Disciplinary history
    • Conflicts of interest disclosures
  4. Download and review the complete Form ADV
  5. Compare the official information with what the adviser told you

What Registration Means (and Doesn't Mean)

Registration is necessary but not sufficient:
  • Registration DOES mean: The firm has met minimum regulatory requirements, has been vetted to some degree, and is subject to ongoing oversight
  • Registration DOES NOT mean: The firm is honest, competent, or that you won't lose money. Registered firms can still engage in fraud.
  • However: If a firm isn't registered, you have zero regulatory protection and virtually no recourse if something goes wrong

When Lack of Registration is Okay

Some legitimate services don't require broker registration:

However, if someone is actively managing your money, recommending specific investments, or executing trades on your behalf, they almost certainly need registration.

Offshore Broker Verification

Many fraudulent brokers claim to be regulated in offshore jurisdictions where oversight is minimal. Here's how to evaluate offshore broker claims.

Common Offshore Jurisdictions

Jurisdiction Regulator Oversight Level Red Flags
UK (FCA) Financial Conduct Authority High Clones of FCA-registered firms common
Australia (ASIC) Securities and Investments Commission High Verify on ASIC Connect; fake claims common
Cyprus (CySEC) Securities and Exchange Commission Moderate Many legitimate and scam brokers based here
Seychelles (FSA) Financial Services Authority Low Minimal oversight; common scam jurisdiction
Vanuatu (VFSC) Financial Services Commission Very Low Pay-to-register; almost no oversight
St. Vincent & Grenadines FSA (doesn't regulate forex) None FSA explicitly states they don't regulate forex
Marshall Islands None None No financial services regulation exists
St. Vincent Warning: Many scam brokers claim St. Vincent and the Grenadines FSA regulation. The St. Vincent FSA has publicly stated: "The FSA does not license, register, or authorize entities to trade in forex, binary options, CFDs or similar products." Any broker claiming SVG regulation for forex is either lying or operating in an unregulated space.

How to Verify Offshore Registrations

UK Financial Conduct Authority (FCA)

  1. Visit the FCA Register
  2. Search by firm name or FCA reference number
  3. Verify the website URL matches exactly
  4. Check for FCA warnings about clone firms

Australian ASIC

  1. Visit ASIC Connect
  2. Search by company name or license number
  3. Verify the type of license (not all allow retail forex)
  4. Check ASIC's Investor Alert List

Cyprus CySEC

  1. Visit the CySEC Registry
  2. Search by company name or license number
  3. Verify the license covers the services offered
  4. Check CySEC's warnings section

Offshore Broker Risk Assessment

Is the regulator's website real? Scammers create fake regulator websites too.
Does the registration number check out? Verify on the regulator's official site, not links from the broker.
Are there warning notices? Check if the regulator has issued warnings about this broker or clones.
What's the recourse if problems occur? Can you practically pursue legal action in that jurisdiction?
Is client money segregated? Legitimate brokers keep client funds separate from operating funds.
Is there investor compensation? Some jurisdictions (UK, Cyprus) have compensation schemes.

Why US Residents Should Be Extra Cautious

Offshore brokers serving US residents face a regulatory problem: they should be registered with US regulators to serve US customers. Many legitimate offshore brokers refuse US customers for this reason. If an offshore broker eagerly accepts US customers without discussing regulatory implications, that's a red flag.

The Practical Reality: Even if an offshore broker is legitimately regulated in their home jurisdiction, if you're a US resident and have a dispute:
  • You probably can't sue in US courts
  • The foreign regulator may not help you
  • Recovery of funds is extremely difficult
  • Criminal prosecution of fraud is nearly impossible

Red Flags in Broker Websites

Scam broker websites often have telltale signs that distinguish them from legitimate operations. Here's what to look for.

Domain and Technical Red Flags

New Domain Registration Use WHOIS lookup to check when the domain was registered. Less than 1-2 years old is concerning for a broker claiming years of history.
Privacy-Protected WHOIS While some legitimate companies use WHOIS privacy, a broker hiding their identity completely is suspicious. Real brokers have public registrations.
Similar URLs to Legitimate Brokers coinbase-trading.com, fidelity-invest.com, schwab-pro.net - URLs that look like major brokers but aren't.
SSL Certificate Issues While most scam sites have SSL now, check if the certificate matches the claimed company name. Click the padlock icon to verify.

Content Red Flags

Guaranteed Returns "Earn 5% daily," "Guaranteed profits," "Risk-free trading" - no legitimate investment can guarantee returns.
Unrealistic Testimonials "I turned $500 into $50,000 in one week!" Screenshots of massive profits. Stock photos of smiling "customers."
Vague or Missing Company Info No physical address, just a contact form. No executive team listed. Company history that doesn't check out.
Fake Regulatory Badges Displaying SEC, FCA, or other regulatory logos without actual registration. Fake registration numbers.
Pressure Language "Limited time offer," "Join now before it's too late," countdown timers. Legitimate brokers don't pressure you.
Poor Grammar/Spelling While not definitive, many scam sites have obvious language errors. Legitimate brokers invest in professional content.

Operational Red Flags

Crypto-Only Deposits Only accepting cryptocurrency, not bank transfers or credit cards. This makes tracing impossible.
Personal Account Deposits Instructions to send money to personal bank accounts, Zelle, Venmo, or specific crypto wallets.
Offshore App Distribution App requires APK download or enterprise certificate rather than official app stores.
Aggressive Account Managers Constant calls pushing you to deposit more. "Account managers" who seem like salespeople.
Withdrawal Difficulties Easy to deposit, but withdrawal requires fees, verification, or additional deposits.
Bonuses with Strings Attached "100% deposit bonus!" that requires massive trading volume before withdrawal.

Quick Website Checks

Check How to Do It What to Look For
Domain Age WHOIS lookup Older is better; new domains are suspicious
Company Registration Search company registrar in claimed jurisdiction Company should exist with matching address
Trust Scores Scamadviser.com, TrustPilot Low scores or no reviews = red flag
Regulator Check Go directly to regulator website Verify registration number exists
Search Engine Search "[broker name] scam" or "fraud" Check for victim reports and warnings
The 5-Minute Rule: If you can't verify a broker's legitimacy in 5 minutes using the tools above, don't invest. Legitimate brokers make verification easy because they have nothing to hide.

Cloned Broker Websites

One of the most insidious scam tactics is creating "clone" websites that mimic legitimate, regulated brokers. These sites copy everything except the URL and the bank account where you send money.

How Clone Scams Work

  1. Scammer identifies a target: They choose a well-known, regulated broker to copy
  2. Website is cloned: They copy the legitimate site's design, content, and regulatory information
  3. Similar domain registered: A URL close to the legitimate one is used
  4. Victims are directed there: Through phishing emails, fake ads, or social engineering
  5. Login credentials stolen: Some clones capture real account logins for the legitimate site
  6. Funds deposited to scammers: Deposits go to scammer-controlled accounts

Examples of Clone URLs

Legitimate Site Clone Examples The Trick
fidelity.com fidelity-investments.com
fidelitytrade.net
myfidelity.com		 Adding words, changing TLD
tdameritrade.com td-ameritrade.com
tdameritradelogin.com		 Adding hyphens, words
interactivebrokers.com interactive-brokers.net
interactivebrokerspro.com		 Hyphens, adding "pro"
coinbase.com coinbase-exchange.com
coinbasepro.net
coinbases.com		 Added words, plurals

How to Spot Clone Sites

Verify the exact URL: Check that it matches exactly what the legitimate broker uses. Type it manually rather than clicking links.
Check for regulator warnings: FCA, ASIC, and other regulators maintain lists of known clone firms. Search their warning pages.
Call the legitimate broker: If you received a communication, call the broker using a number from their official website (not the communication).
Check contact information: Compare the phone numbers, addresses, and email domains with the legitimate site.
Verify payment details: Legitimate brokers don't accept payment to personal accounts, crypto wallets, or obscure payment processors.
Check the SSL certificate: Click the padlock icon. It should show the legitimate company name if they use an extended validation certificate.

FCA Clone Firm Warning List

The UK Financial Conduct Authority maintains an excellent resource listing known clone firms. While focused on UK, many of these scams target victims globally.

Visit FCA Warning List

If You Think You're on a Clone Site:
  • Do NOT enter any login credentials
  • Do NOT make any deposits
  • Take screenshots of the URL and page
  • Report to the legitimate broker's fraud department
  • Report to relevant regulators (FCA, SEC, etc.)
  • If you already sent money, report immediately and contact your bank

Comparison: Legitimate vs. Clone Indicators

Feature Legitimate Broker Clone Site
URL Exact official domain Similar but different (hyphen, extra word)
Domain Age Years or decades Often less than a year
Contact Info Matches regulatory filings Different phones, addresses, or emails
Payment Methods Bank transfer to corporate account Crypto, personal accounts, unusual methods
Regulator Warning No warnings (unless actual issues) Often listed on regulator warning pages
App Distribution Official app stores APK downloads, enterprise certificates

Protect Yourself from Clone Scams

Verify Before You Invest

Before investing any money with a trading platform or broker, verify their regulatory registration. Use FINRA BrokerCheck for broker-dealers, SEC IAPD for investment advisers, and NFA BASIC for forex/futures firms. This 5-minute check can save you from devastating losses to fake brokers and cloned websites.

Key Verification Resources

Red Flags to Watch For

Be wary of platforms with recently registered domains, guaranteed return promises, cryptocurrency-only deposits, URLs similar to legitimate brokers, and offshore registrations in places like Seychelles or St. Vincent. If you can't verify a broker in 5 minutes using official databases, don't invest.