How to Spot a Scam Forex Broker: 7 Checks
Look the licence up on the regulator's own register, confirm which company will hold your money, and withdraw a small amount before funding properly. Anyone guaranteeing returns or pressuring you to deposit quickly is a red flag. These seven checks take about 20 minutes and catch most fake or risky brokers.
7 checks before you deposit
1. Search the regulator’s register yourself
Don’t trust a licence number shown on the broker’s site. Go to the regulator’s website directly and search there. Match the company name, licence number and website domain. Registers we use:
- Seychelles FSA: regulated entities
- Mauritius FSC: register of licensees
- Vanuatu FSC: financial dealers licensee list
Our regulator guides explain each one: Seychelles, Mauritius, Vanuatu, CySEC.
2. Find the company that serves your country
Brands often advertise a top-tier licence while onboarding international clients through an offshore subsidiary. XM is an example of how this works openly: XM Global Limited (FSC Belize, 8557558) serves most international clients, while separate companies licensed in Seychelles and Mauritius serve Japan under the XMTrading brand. Your client agreement names your company. That’s the licence that matters to you. See licences ranked by tier.
3. Withdraw a small amount first
Deposit a small amount, make a trade or two, and withdraw it. This tests verification, processing time and the payment route before real money is at stake. Our withdrawal problems guide explains what normal delays look like.
4. Treat guaranteed returns as a red flag
Leveraged trading always puts capital at risk. Promises of fixed monthly profits, “no-loss” systems or account management with guaranteed returns are hallmarks of fraud.
5. Be wary of anyone pushing a broker
Signal groups, social media “mentors” or new online friends who press you to deposit quickly through an unfamiliar broker are the classic pattern. A legitimate broker doesn’t need someone else to rush you.
6. Read the withdrawal conditions before depositing
Bonus terms, minimum trading volume, fees on untraded deposits and same-method rules can all block or reduce a payout. For example, Titan FX’s withdrawal page states a 4% fee if no trades are made on the account. See why brokers reject withdrawals and how bonuses work.
7. Check recent withdrawal reports
Only recent, cross-checked reports tell you how a broker pays today. Old praise and anonymous one-off complaints are both weak evidence. Look for consistent patterns over the past few months.
If a broker fails these checks
Don’t deposit. If you already have, stop adding money, request a withdrawal of your full balance in writing and keep records. If the broker claims a licence, you can report it to that regulator.
For brokers whose licences we’ve checked, see the safest offshore brokers.
Safest Offshore Forex Brokers 2026
| Broker | Licence | Visit broker | |||
|---|---|---|---|---|---|
 XMFeatured | 4.9/5Editorial rating | FSC Belize | ✓ | 1,000:1 | Visit |
 Vantage | 4.3/5 | FSCA South Africa 51268 | ✓ | Unlimited | Visit |
 Exness | 4.2/5 | FSA Seychelles SD025, CBCS Curaçao, FSC BVI, FSC Belize, F… | ✓ | 2,000:1 | Visit |
 HFM | 4.1/5 | CySEC 183/12, FCA 801701, FSCA 46632, FSA SD015, CMA 155 | ✓ | 2,000:1 | Visit |
 XS.com | 4.1/5 | FSA Seychelles SD089 | ✓ | 2,000:1 | Visit |
 FXGT | 4.1/5 | FSA Seychelles SD019 | ✓ | 5,000:1 | Visit |
 Titan FX | 3.7/5 | Vanuatu FSC | ✓ | 2,000:1 | Visit |
 easyMarkets | 3.7/5 | EF Worldwide Ltd, FSA Seychelles securities dealer | ✓ | 2,000:1 | Visit |
 Axi | 3.5/5 | AxiTrader LLC, registered in St Vincent and the Grenadines | ✗ | 1,000:1 | Visit |
 EBC Financial | 3.5/5 | EBC Financial Group | ✓ | 500:1 | Visit |
 AXIORY | 3.4/5 | FSC Belize 4496214 | ✓ | 2,000:1 | Visit |
 BigBoss | 3.2/5 | Comoros | ✓ | 2,222:1 | Visit |
Related
- Forex Broker Licences Ranked by Tier
- Japan FSA Warnings: What They Mean for Offshore Brokers
- Segregated Funds and Investor Compensation Explained
- What Happens to Your Money if a Broker Goes Bust
- Seychelles FSA Licence: How Strong Is It?
- Mauritius FSC Licence Explained
- Vanuatu VFSC Licence Explained
- CySEC Regulation: What It Covers
- Forex Glossary
Frequently asked questions
Does an offshore licence mean a broker is safe?
Not on its own. Supervision levels differ, and you need to know which company actually holds your account. A licence is a minimum, not a guarantee.
How do I check a licence number?
Search for it on the regulator's own website, not via a link from the broker. Check that the company name, licence number and website domain all match.
What is a clone firm?
A scam that copies the name, licence number or website of a real regulated firm. The register entry looks real, but the contact details or domain don't match the ones you're dealing with.
I can't withdraw. Is it a scam?
Not necessarily. Most withdrawal problems come from verification, bonus or same-method rules. Our guide to withdrawal problems covers the fixable causes; if those don't apply and support goes silent, treat it as a warning sign.