Check regulatory status
Use your national register before depositing funds. In the UK, the FCA Firm Checker shows if a firm is authorised or merely registered. Authorised firms have permission to provide specific products and meet standards. Registered firms cannot offer regulated products needing authorisation. If you use a registered but not authorised firm, you are unlikely to have FSCS protection if it fails or Ombudsman access if you complain. Avoid firms lacking authorisation or permission for your needed services. In Australia, check ASIC's Professional Registers for an AFS licence. Overseas CFD providers often lack this licence, so Australian consumer protections do not apply and you lose AFCA access.
Verify permissions match
Confirm the firm has correct permissions for your specific activities. The Financial Services Register shows ability to handle client money and approve financial promotions. Using an authorised firm with correct permissions reduces harm risk but does not remove all risk. Without correct permissions, you lose Ombudsman access and FSCS protection, making money recovery unlikely. For CFDs, check if you will be retail or wholesale. Wholesale classification removes negative balance protection, margin close-out protection, AFCA access, and target market assessment. Check your classification before opening any account.
Watch for clone firms
Match contact details exactly with the register. Clone firms copy genuine authorised firms to defraud you. Firm Checker details are provided and confirmed by the firm itself. Most firms must update these annually. Avoid firms marked no longer authorised or revoked. Voluntary cancellations appear as no longer authorised; enforcement cancellations appear as revoked. Check disciplinary action on the register to understand why authorisation ended.
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