A practical 6-step process to confirm any broker's regulatory status directly with CySEC, FCA, BaFin, or AMF — before you deposit a single euro.
Choosing an EU-regulated forex broker is not just a box-ticking exercise. Regulation directly determines what legal protections apply to your deposited funds, what recourse you have if a broker fails, and whether the trading conditions you see are subject to independent oversight.
Unregulated brokers operate outside the framework of MiFID II. They are not required to segregate client funds, meet minimum capital requirements, participate in compensation schemes, or submit to routine audits. If an unregulated broker stops withdrawals or goes insolvent, you have virtually no legal recourse.
The verification process takes under five minutes if you know where to look. The six steps below walk through exactly that.
Two EU legal frameworks govern forex brokers operating in Europe:
MiFID II (Markets in Financial Instruments Directive II) — the primary framework for investment firms and trading venues across the EU and EEA. It sets conduct-of-business rules, best execution obligations, transparency requirements, and passporting rights. Under MiFID II's passport, a firm licensed in any EU member state can operate across all 27 EU member states plus Iceland, Liechtenstein, and Norway without obtaining separate licences in each country.
CRD IV (Capital Requirements Directive IV) — governs the minimum capital investment firms must hold at all times. CRD IV works alongside the Capital Requirements Regulation (CRR) to set both minimum thresholds and ongoing capital adequacy ratios based on the firm's risk profile.
Regulates the majority of EU-passported forex brokers. Licence format: CIF XXX/YY. Active register updated in real time.
cysec.gov.cy → Regulated EntitiesPost-Brexit, FCA is not an EU regulator but is widely accepted as equivalent. Licence is a firm reference number (FRN). FSCS covers up to £85,000.
register.fca.org.uk → Financial Services RegisterGermany's national competent authority. High capital requirements and strict conduct rules. Useful for German-resident traders.
bafin.de → Public RegisterFrance's securities regulator. Also maintains the Blacklist (REGAFI register) of both authorised firms and non-authorised firms targeting French retail investors.
amf-france.org → Authorised firmsFollow these steps before opening any account. The process takes 5–10 minutes and could save your entire deposit.
Scroll to the bottom of the broker's homepage. Look for a statement like "XYZ Capital Ltd, CIF 123/14, authorised by the Cyprus Securities and Exchange Commission." Note the exact legal entity name, country of incorporation, regulator, and licence number. The licence number is the key — check it directly on the regulator's website.
Go to the regulator's own website (links in the table above). Do not use a third-party aggregator or the broker's own "regulated by" link — always navigate directly to the government or authority website. For CySEC: cysec.gov.cy → Regulated Entities → Investment Firms.
Search using the licence number, not the brand name. Brokers often operate under a different legal entity name to the trading brand (e.g., "XYZ Capital Ltd" trades as "BrokerBrand"). The register will show the legal entity behind the licence. Confirm it matches what the broker stated in Step 1.
The register will show the current status: Active, Suspended, Revoked, or Under Winding-Up. Only an Active licence is valid. Also check the authorised services — confirm the broker is authorised for "execution of orders on behalf of clients" (the service you are using). Some licences only cover advisory services.
EU-regulated brokers are required under MiFID II to publish annual financial statements. Look for the broker's most recent audited accounts (usually in their Legal Documents or About Us section). Check: Is the broker meeting its minimum capital requirements? Many also publish their ICAAP (Internal Capital Adequacy Assessment Process) summary. A broker unable or unwilling to share financial information is a warning sign.
Every EU-regulated investment firm must participate in a national investor compensation scheme (ICS). For CySEC-regulated brokers this is the ICF (Investor Compensation Fund), covering up to €20,000 per eligible client. Confirm the broker explicitly states its ICS membership in its regulatory disclosures. Do not assume — check the text.
Capital adequacy refers to the minimum amount of financial capital a broker must hold to absorb unexpected losses and protect client interests. Under CRD IV and the Capital Requirements Regulation (CRR), EU investment firms are subject to:
The following brokers appear on the CompareFX platform. All hold current EU or equivalent licences verified at the time of writing. Always re-verify on the regulator's website before depositing.
| Broker | Regulator | Licence | Compensation | Min. deposit | Verify |
|---|---|---|---|---|---|
| Exness | CySEC | CIF 178/12 | ICF up to €20,000 | €10 | CySEC register ↗ |
| AvaTrade | BVI / CBI (IE) | C53877 | ICF / FSCS | €100 | CBI register ↗ |
| Pepperstone | FCA | FRN 684312 | FSCS up to £85,000 | No minimum | FCA register ↗ |
| IC Markets | CySEC | CIF 362/18 | ICF up to €20,000 | €200 | CySEC register ↗ |
| XM | CySEC | CIF 120/10 | ICF up to €20,000 | €5 | CySEC register ↗ |
Licence details verified June 2026. Always confirm status directly on the regulator's website before depositing. Compensation limits and licence conditions may change.
An EU-regulated broker holds a licence issued by a recognised national competent authority (NCA) such as CySEC (Cyprus), BaFin (Germany), AMF (France), or CONSOB (Italy). Under MiFID II's EU passporting rules, a licence from any EU NCA allows the broker to serve clients across the entire European Economic Area (EEA). Regulation means the broker is subject to capital requirements, client money segregation rules, and investor compensation schemes.
Under CRD IV and MiFID II, investment firms providing execution services must hold minimum capital of €730,000. Firms providing only reception and transmission of orders or investment advice hold a lower minimum (€75,000). On top of this fixed minimum, brokers must also hold capital against operational risk and market risk on a continuous basis. Brokers holding significantly more than the minimum are generally considered more financially resilient.
Go to cysec.gov.cy → Regulated Entities → Investment Firms. Search by broker name or licence number. The register shows the exact licence number, the date of authorisation, the services permitted, and any current restrictions or suspensions. Always use the official regulator website — not a third-party database.
EU-regulated investment firms must participate in an investor compensation scheme (ICS). In Cyprus, this is the Investor Compensation Fund (ICF), which protects eligible clients up to €20,000 per person per firm if the broker cannot meet its financial obligations. In the UK (FCA), the Financial Services Compensation Scheme (FSCS) covers up to £85,000 per person.
EU-regulated brokers are required to segregate client funds from the firm's own operating capital. If the broker becomes insolvent, segregated client funds are ring-fenced and returned to clients before other creditors. Any shortfall (up to the ICS limit) is covered by the applicable compensation scheme — €20,000 in Cyprus, £85,000 in the UK under FSCS.
No. A broker that claims regulation but cannot be found in the official register is either using false claims or operating under a parent entity not actually licensed for the relevant services. Always verify directly on the regulator's own website. If the licence number does not appear — or is listed as suspended or revoked — do not deposit funds.