Finding a licence number on a regulator's register is the easy part — our licence verification guide walks through that five-minute process. Reading what the register actually says once you're there is the part people get wrong. Registers use precise legal language, and a status that looks reassuring at a glance can mean something narrower than "this firm is fine." Here's how to read the entry itself.
Status wording is not interchangeable
Every register uses a controlled vocabulary, and the words matter more than their tone.
"Authorised" or "regulated" means the firm currently holds a licence in good standing — the state you want to see. "Registered" can mean something much thinner: some registers list firms that have merely notified the regulator of an activity, without full authorisation or the conduct rules that come with it. A firm can be technically "registered" somewhere and still not be permitted to deal in investments or hold client money.
"Restricted" or "limited" status means the firm holds a licence but the regulator has narrowed what it's allowed to do — sometimes as a precursor to enforcement action. "In default" or "withdrawn" means the authorisation no longer applies, even if the firm's marketing hasn't caught up.
The lesson: don't stop at "the name appears on the register." Read the actual status word next to it.
Match the permissions, not just the name
A licence authorises specific activities, not a general licence to run a brokerage. The register entry lists permissions — categories like "dealing in investments as principal," "arranging deals," or "advising on investments." A firm can be genuinely authorised for one narrow activity, such as marketing or introducing clients, while having no permission to actually execute trades or hold client funds directly.
This distinction shows up often with Middle Eastern and Gulf-region licences, where an "arrangement and advice" category authorisation is a real, checkable licence — but a different and narrower thing than a licence to deal and custody client money. Read the permission category, not just the fact that a permission exists.
Company name precision is the whole point of the check
Registers are searched by name or number, and near-matches are common — sometimes because two unrelated firms share a similar name, sometimes because a clone operation has chosen a name deliberately close to a genuine licensee. Confirm:
- The registered company name matches exactly what's in your client agreement — not the brand name, the legal entity name.
- The registered address and any listed trading names are consistent with what the broker discloses.
- If the register shows several similarly-named entities, you've identified the correct one by number, not by eye.
Our broker brand vs legal entity guide covers why the legal entity, not the brand, is what you're actually confirming here.
One register, one country — passporting explains the rest
A UK FCA authorisation covers the UK. It does not, by itself, mean the firm can legally deal with clients in Germany, Kenya or Australia. Within the EU/EEA, a licence from one member state's regulator can be "passported" to operate across the bloc under a shared rulebook — which is why an EU broker might show a single home-country licence (say, from CySEC in Cyprus) as valid for clients across several EU countries.
Outside a passporting arrangement, a broker generally needs a separate, local licence for each jurisdiction it actively serves. That's the structural reason multi-entity broker groups exist at all: one licence per market, not one licence for the world. Our tier-1 vs offshore regulation guide explains how those separate entities differ in what they actually guarantee you.
Cross-check the warning list, not just the main register
Most regulators maintain the main authorisation register and a separate warning or alert list for unauthorised firms and known clone operations. These are different tools. A firm absent from the warning list is not automatically clean — plenty of unregulated operators simply haven't been flagged yet. But a firm that does appear on a warning list is a definitive stop signal, even if a similarly-named entity also shows up as licensed elsewhere on the same register. Search both, using the exact company name from your paperwork, not the brand.
Reading the register is a habit, not a one-time check
Authorisations lapse, get withdrawn, or narrow over time — a licence that was accurate six months ago in an old article or comparison table may no longer be current. The register itself is the only source that's current by definition, so treat every register check as a fresh read of today's status, not a confirmation of something you read elsewhere. Our regulation guide and entity decoder are starting points for finding the right entity and registers, but the register itself always has the final word.
This is educational content, not financial or legal advice — always read the current entry on the regulator's own official register before relying on it.