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A fake broker can usually be unmasked in under eight minutes — if you know which five sources to consult. Here is the exact checklist FX ReviewLab uses to verify a broker before it is allowed onto the directory.
Step 1 — Pull the licence number directly
Visit the broker's footer or legal page. A legitimate broker will publish a licence reference such as FCA #509909 or ASIC AFSL #246566. Copy that number into the regulator's own search portal. Look for: status (Authorised, not Authorised representative), permissions (must include holding client money for retail forex), and the trading name on the entry.
Step 2 — Check for clone warnings
The FCA, ASIC and SEC publish clone broker lists weekly. Clones imitate a real licensee using a similar URL. If the URL, phone or email on the broker's site does not match what the regulator publishes, you are talking to a clone.
Step 3 — WHOIS and domain age
Use any WHOIS lookup. A broker advertising "10 years of trust" with a domain registered six weeks ago is fraudulent on its face. Real brokers keep the same domain for years and publish operational history.
Step 4 — Segregation language
Search the broker's legal terms for the phrases "segregated account", "Tier-1 bank", and the name of the depositary bank. Missing? Walk away.
Step 5 — Try a $50 withdrawal
Deposit only the minimum, place no trades, and request the full amount back after 24 hours. Watch:
- Process time — under 3 business days is normal.
- Hidden fees — "anti-money-laundering processing fees" are not a thing.
- Verification gates that did not apply when depositing.
Step 6 — Search court records and PR
Google the broker's legal entity name plus terms like "complaint", "warning", "court". Genuine brokers may have routine disputes; scam brokers accumulate enforcement notices.
The 80/20 of broker verification
If steps 1, 4 and 5 pass, you have eliminated 80% of fraud risk. The remaining steps surface sophisticated clones. Make this checklist routine before any deposit, regardless of brand familiarity.
