As an Introducing Broker, you are putting your name behind a broker. If it mistreats your clients or stops paying, your reputation suffers. Checking regulation is the first and most important step, and it only takes a few minutes.
Step 1: Find the exact legal entity and licence number
Look in the broker's website footer, legal documents or client agreement for:
- the full legal company name (for example "Example Markets Ltd");
- the regulator's name;
- the licence or reference number.
Many brokers run several companies under one brand, each with a different regulator. Note which entity your clients would actually be onboarded to. It's often decided by the client's country.
Step 2: Search the regulator's official register
Go to the regulator's own website. Don't use links from the broker's site, which could point to a fake page. Common regulators and their public registers:
| Regulator | Country | Where to check |
|---|---|---|
| FCA | United Kingdom | Financial Services Register at register.fca.org.uk |
| CySEC | Cyprus (EU) | Regulated entities lists at cysec.gov.cy |
| ASIC | Australia | Professional registers via asic.gov.au |
| DFSA | Dubai (DIFC) | Public Register at dfsa.ae |
| SCA | UAE (onshore) | Licensed companies at sca.gov.ae |
| FSCA | South Africa | Regulated entities search at fsca.co.za |
| FSA | Seychelles | Licensees at fsaseychelles.sc |
| FSC | Mauritius | Register of licensees at fscmauritius.org |
| NFA / CFTC | United States | BASIC search at nfa.futures.org |
Step 3: Match every detail
On the register entry, confirm:
- the company name and number match the broker's documents exactly;
- the website domains listed match the site you're on;
- the licence is active, not cancelled or suspended;
- the permissions cover dealing in CFDs or forex for retail clients.
Step 4: Check warning lists
Many regulators publish warnings about unauthorised firms (for example the FCA Warning List). IOSCO's I-SCAN portal at iosco.org collects warnings from regulators worldwide. Search the brand name and any company names you found.
Step 5: Look at the broker's behaviour
- How long have they operated under this brand?
- What do existing IBs say about payouts? Ask in communities and read verified reviews.
- Are terms, fees and the risk warning clear on the website?
- Do they pressure you to bring clients into an offshore entity with weaker protection?
Red flags
- No legal entity or licence number anywhere on the site.
- A licence only from a jurisdiction with little oversight, while claiming "fully regulated".
- Promises of guaranteed profits or unusually high IB payouts.
- Pressure to move clients to a different entity than the one advertised.
- Payout delays and partner managers who stop replying.
Why this matters for IBs
Strong regulation usually means segregated client funds, complaint procedures and supervision. All of that protects your clients, and with them your income and reputation. A slightly lower payout from a well-regulated broker is often worth more than a high offer from a broker you can't verify.
How IB2broker checks brokers
Before a broker's programs go live on IB2broker, our team checks its licence numbers on the regulators' public registers. You still choose your partner, but you start from a verified list. Learn how to become a forex IB step by step.
This guide is general information and not legal or financial advice. Registers and their web addresses can change; always use the regulator's official website.
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