The broker brand is not the legal entity
A broker brand is the name most traders remember. The legal entity is the company that signs the account agreement, holds client records, provides product documents and answers complaints. For regulation, the legal entity matters more than the brand.
Global broker groups often operate several entities. One entity may be authorized in the UK, another in the EU, another in Australia and another offshore. The website may look similar across regions, but leverage, product access, compensation coverage and risk disclosures can change.
Why entity changes matter
The entity can determine which regulator supervises the account, whether negative balance protection applies, what client-money rules apply and whether eligible clients have access to a compensation scheme. It can also affect which products are available. Some entities may offer CFDs, others futures or spot forex, and some may restrict residents of certain countries.
Entity changes can also happen after onboarding if a broker restructures, changes regional terms or moves clients to another company. Treat emails about account entity changes as important documents, not routine marketing.
How to verify a license
Start with the account application or terms of business and copy the exact company name. Search that name on the relevant regulator register. Match the license number, website, address and permissions. If the register warning or status does not match the broker's claim, pause before depositing.
Be careful with clone warnings. Fraudulent websites sometimes copy the name or license details of real firms. The regulator register and official broker domain should agree.
Client money and compensation
Client-money segregation and compensation schemes are not identical. Segregation concerns how client funds should be held. Compensation may cover eligible clients if a firm fails, subject to rules and limits. Neither protection covers normal trading losses from market movement.
Professional status can also change protections. If a broker invites you to become a professional client, read what retail protections you may lose before accepting.
Questions before opening an account
- Which legal entity will hold the account?
- Which regulator register confirms that entity?
- What products and leverage limits apply in your country?
- Does negative balance protection apply to your account type?
- What complaint and compensation routes are available?
When to re-check regulation
Re-check regulation when moving country, changing account type, accepting professional status, receiving new terms or trading a new product. A comparison page can help build a shortlist, but the final check should always use current broker documents and official registers.
Entity checks for existing accounts
Regulation is not only a pre-deposit check. Existing clients should re-check their entity when moving country, accepting new terms, changing account type or receiving a notice about migration. Broker groups can alter client routing when licenses, product rules or business structures change.
Keep copies of the terms that applied when you opened the account and compare them with new notices. If the new entity changes protection, product access, leverage or complaint routes, treat the account as a fresh broker decision.