The picture in three lines
- Start with the regulator's public register and make sure the website listed there is the one you are using.
- Compare the total cost of a realistic trade, and read the withdrawal rules before the deposit page.
- Very high leverage and bonus offers usually mean a firm is outside the strictest retail rules.
How to choose a broker is less about finding the "right" name and more about eliminating the wrong ones. The ten checks below work for forex and CFD providers, share brokers and crypto exchanges alike. Wyvexx is not a broker and does not recommend any; treat this page as a worksheet you fill in yourself.
Fig. 1 · The order to run the checks
- LegalChecks 1 to 3: is the firm allowed to serve you, and is it really that firm?
- MoneyChecks 4 to 6: where your money sits and what it costs to use.
- RulesChecks 7 and 8: leverage, bonuses and protections.
- PracticalChecks 9 and 10: the software, support and complaints route.
1. Authorisation on a public register
Look the firm up on your national regulator's own register, reached by typing the regulator's address yourself, not by clicking a link the firm sends. The UK Financial Conduct Authority, Australia's ASIC and EU national regulators all publish searchable registers. A firm that is not listed, or is listed only in a distant jurisdiction with light supervision, gives you far less protection.
2. Clone-firm test
Fraudsters copy the name and registration number of genuine firms. The register lists the approved website addresses, phone numbers and emails; if the details you have been given differ even slightly, stop. Regulators also publish warning lists of known clones and unauthorised firms.
Take a screenshot of the register entry on the day you check, including the permissions listed. Registers show what a firm is allowed to do, and a firm authorised only to arrange insurance, for example, is not permitted to deal in leveraged trading products. The detail matters as much as the name.
3. Which legal entity you would contract with
Groups often run several companies under one brand, each regulated somewhere different. The entity named in the account agreement decides which rules and protections apply to you. A well-known brand name does not help if your contract is with an offshore arm.
4. Where client money is held
Regulated brokers must keep client money in segregated accounts, separate from their own funds, and some countries add a compensation scheme if a firm fails. Crypto exchanges vary far more: ask whether customer assets are held separately, whether the exchange publishes any proof of its reserves, and whether any compensation scheme applies. Often none does.
5. The all-in cost of a trade you would really place
Price one realistic trade: spread plus commission plus overnight financing if you would hold it, plus any currency conversion. Headline figures such as "spreads from 0.0" describe the best moment on the busiest pair. Our trading fees guide shows how to add the lines up.
6. Withdrawal terms, read first
Find the withdrawal section of the terms before you look at deposits. Note the methods, fees, processing times and any conditions, such as a requirement to trade a certain volume first. A firm that is quick to take deposits but vague about withdrawals has told you what you need to know.
7. Leverage and the limits that should apply
Retail limits in the UK, EU and Australia cap leverage at 30:1 on major currency pairs and lower on everything else; the US allows 50:1 on majors. High leverage forex brokers advertising several hundred to one are, almost by definition, serving you from outside those regimes, which usually means weaker oversight, no negative balance protection and no local compensation scheme. Be wary too of being encouraged to reclassify yourself as a "professional" client to unlock higher leverage: it removes protections.
Lower margin does not mean lower risk: a 1% move is $1,000 in every case. It only means the same loss eats a far larger share of your deposit.
8. Bonuses and inducements
Regulators in the UK, EU and Australia ban bonuses and similar inducements for retail CFD clients, because they encourage people to trade more and take bigger risks. An offer of free credit, a deposit match or a no-deposit bonus therefore signals a firm operating under different rules. The conditions attached often block withdrawals until an unrealistic trading volume is reached; see our explainer on no-deposit bonuses.
9. The platform and account security
- Can you place a stop-loss on every order, and does the platform show margin and free margin clearly?
- Is two-factor authentication available for logins and withdrawals?
- Is the app distributed through official app stores or the firm's registered website only?
- Is there a practice mode to learn the software without real money?
10. Support and complaints
Look for a published complaints procedure and, for regulated firms, an independent dispute body you can escalate to, such as the Financial Ombudsman Service in the UK or AFCA in Australia. Test support with a simple question before depositing and note how fast and how clearly it answers. A firm that answers quickly when you might deposit but slowly on everything else is showing you how a withdrawal problem would be handled.
Extra checks for crypto exchanges
- Local registration. Many countries now require crypto platforms to register or be licensed. A platform serving you while blocked in your country is a warning in itself.
- Evidence of reserves. Some exchanges publish proof-of-reserves reports. They are useful but partial: they show assets at one moment and may not show all liabilities.
- Withdrawal behaviour. Make a small deposit and withdraw it before committing more, noting the fees and time taken.
- Freeze and closure terms. Read when the platform may suspend accounts or withdrawals, and what happens to balances if it closes.
- Networks supported. Check which blockchains are supported for deposits of each coin, especially USDT, to avoid sending on the wrong one.
Questions to put to support before depositing
- Which legal entity will my account be with, and who regulates it?
- Where exactly is client money held, and is it segregated?
- What is the typical spread on the market I plan to trade at the hours I would trade?
- What fees apply to withdrawals, and how long do they take?
- Which dispute body can I go to if a complaint is not resolved?
Keep the answers in writing. Vague, evasive or pushy replies are an answer in themselves.
When to walk away
A firm does not need to fail every check to be the wrong choice. Walk away if any single one of these is true: you cannot find it on a register with matching details; it contacted you first with an offer; it asks you to pay in crypto or to a personal account; it will not explain in writing how withdrawals work; or it pressures you to deposit more, open a bigger position or opt out of retail protections. There are always other firms, and a missed opportunity costs nothing compared with a lost deposit.
Once a firm passes, use its demo mode to test the platform itself for a while. Check that stop-losses behave as you expect, that the margin display is clear, and that you can find the account statement showing every charge.
How to choose a broker: a scoring sheet
| Check | Pass looks like | Stop if |
|---|---|---|
| Register | Listed with matching website and contact details | Not listed, or details differ |
| Entity | Your contract is with the regulated company | Contract is with an offshore arm you did not choose |
| Client money | Segregated, with any compensation scheme named | No clear answer |
| Costs | Full price list with typical spreads and financing | Only "from" figures |
| Withdrawals | Clear methods, fees and timings | Volume conditions or unexplained "release fees" |
| Leverage | Within local retail limits | Hundreds to one offered to a retail client |
| Contact | You approached them | They approached you with an offer |
Asked and answered
Is a broker regulated in any country good enough?
Not necessarily. Protection depends on the regulator and on which entity you contract with. A licence from a lightly supervised jurisdiction may give you little practical recourse if something goes wrong.
Should I choose a broker with the lowest spread?
Compare the total cost of the trades you would actually place, including commission and overnight financing. The lowest headline spread is often paired with a commission.
Does Wyvexx recommend any broker or exchange?
No. Wyvexx is an information site. We do not recommend, rank or receive payment from brokers or exchanges.
Sources
- UK Financial Conduct Authority, Financial Services Register and warning list
- European Securities and Markets Authority, CFD product intervention measures
- Australian Securities and Investments Commission, CFD product intervention order
- US CFTC and NFA, retail forex leverage limits