L
Liquid validity
Is my broker / money safe - basic due diligence.
All these checks also apply to managed funds or any other type of investment.
Steps:
1. Regulation
2. Contact address.
3. Website domain check.
4. Useful links
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Step1 - Regulation
To check for USA registration with SEC:
FINRA BrokerCheck Search
To check for USA registration with NFA:
NFA broker check
To check for UK registration with FCA:
FCA Register
To check for Australian registration with ASIC:
ASIC broker check
In general that will cover most well known brokers.
The above regulation bodies are also the hardest for a broker
to get registered with.
If the broker you are thinking of using does not show up
as registered with any of the above, I personally would not
use them. If they pass the above checks, proceed with other checks.
In the vast majority of cases though, the above check should be enough.
No registration - think twice about using them...
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Step 2. Contact address.
Find the brokers contact address - contact us link usually.
Google that address without the brokers name included.
Look for anything in the results that mentions:
Virtual office.
Other company names at the same address.
A virtual office means they are not physically there.
Multiple company names at the same address can often point to
a virtual office as well, especially if the building is small...
Google streetview check, paste address into search bar:
https://maps.google.co.uk/maps?hl=en
Does the building look like the kind of place a reputable broker
would use as office space?
Do the same with a well known reputable broker to see what I mean.
-------------------------------------------------------------------------------------
Step 3. Website domain check.
Copy paste the brokers website address into search for domain field:
Domain Name Lookup, Domain Whois | DomainTools
A domain registration that is hidden or private is not standard practice.
A different address than the brokers contact address is also not typical.
Although in some instances, with a broker that is registered with
a regulator listed in step 1, a different domain registration address
may not be that big a deal.
-------------------------------------------------------------------------------------
Step 4. Useful links
SEC - Researching and Managing Investments | Investor.gov
CFTC - Consumer Protection
CFTC - Fraud Awareness & Prevention
FCA Register
FCA - How to claim compensation
FCA - how to complain
ASIC investment FAQ
ASIC - how to complain
Specific Warnings
CFTC Advisory on Foreign Currency
FMA: Warning against unauthorised websites offering binary options trading
All these checks also apply to managed funds or any other type of investment.
Steps:
1. Regulation
2. Contact address.
3. Website domain check.
4. Useful links
-------------------------------------------------------------------------------------
Step1 - Regulation
To check for USA registration with SEC:
FINRA BrokerCheck Search
To check for USA registration with NFA:
NFA broker check
To check for UK registration with FCA:
FCA Register
To check for Australian registration with ASIC:
ASIC broker check
In general that will cover most well known brokers.
The above regulation bodies are also the hardest for a broker
to get registered with.
If the broker you are thinking of using does not show up
as registered with any of the above, I personally would not
use them. If they pass the above checks, proceed with other checks.
In the vast majority of cases though, the above check should be enough.
No registration - think twice about using them...
-------------------------------------------------------------------------------------
Step 2. Contact address.
Find the brokers contact address - contact us link usually.
Google that address without the brokers name included.
Look for anything in the results that mentions:
Virtual office.
Other company names at the same address.
A virtual office means they are not physically there.
Multiple company names at the same address can often point to
a virtual office as well, especially if the building is small...
Google streetview check, paste address into search bar:
https://maps.google.co.uk/maps?hl=en
Does the building look like the kind of place a reputable broker
would use as office space?
Do the same with a well known reputable broker to see what I mean.
-------------------------------------------------------------------------------------
Step 3. Website domain check.
Copy paste the brokers website address into search for domain field:
Domain Name Lookup, Domain Whois | DomainTools
A domain registration that is hidden or private is not standard practice.
A different address than the brokers contact address is also not typical.
Although in some instances, with a broker that is registered with
a regulator listed in step 1, a different domain registration address
may not be that big a deal.
-------------------------------------------------------------------------------------
Step 4. Useful links
SEC - Researching and Managing Investments | Investor.gov
CFTC - Consumer Protection
CFTC - Fraud Awareness & Prevention
FCA Register
FCA - How to claim compensation
FCA - how to complain
ASIC investment FAQ
ASIC - how to complain
Specific Warnings
CFTC Advisory on Foreign Currency
FMA: Warning against unauthorised websites offering binary options trading
