How do I check if a broker or crypto exchange is regulated?

Find the firm's legal entity name in its website footer or account agreement, then search the right official database: FINRA BrokerCheck for stock brokers, NFA BASIC for forex dealers and futures brokers, and FinCEN's MSB search for crypto exchanges. Confirm the regulator's record shows the same website and contact details, and search the SIPC member list if you'll hold securities there.

Can a regulated platform still be risky?

Yes. Regulation is necessary but not sufficient. Custody design and exchange solvency are separate risks.

How often should legitimacy be verified?

At minimum quarterly, and immediately after policy changes, ownership shifts, or enforcement announcements.

What is Regulated Exchange?

An exchange licensed by a financial regulator (SEC, FCA, CySEC, ASIC, etc.) subject to capital and conduct rules.

What is Segregation (Client Money Segregation)?

Legal requirement that customer funds be kept separate from company funds, protected from company creditors.

Official authorization from a regulator to operate. Check the regulator's official registry to confirm valid license.

What is Counterparty Risk?

The risk that the broker or exchange becomes insolvent and cannot return your funds. Higher with unregulated or foreign venues.

What is Deposit Insurance?

A program that protects customers if the firm holding their money fails. In the US, FDIC covers bank deposits up to $250,000 and SIPC covers brokerage accounts up to $500,000, including $250,000 cash. Neither covers crypto balances or forex accounts.

What is Enforcement Action?

Legal action taken by a regulator against an exchange for violations. Research the exchange's enforcement history.

Regulated Brokers and Crypto Exchanges: How To Check (2026)

How To Check Any Provider in Five Minutes

Don’t rely on a “regulated” badge on a firm’s website. These free official databases show who is actually registered, under which legal name and with what history.

Stock and options brokers FINRA BrokerCheck

Confirms a broker-dealer’s SEC and FINRA registration, its CRD number, the states it can operate in and any disciplinary history.

Search BrokerCheck ↗

Forex dealers and futures brokers NFA BASIC

Confirms CFTC registration and NFA membership for forex dealers (RFEDs) and futures brokers (FCMs), with regulatory actions.

Search NFA BASIC ↗

Crypto exchanges FinCEN MSB search

Confirms an exchange is registered as a money services business. Also check its state licences, usually listed on its own legal page.

Search FinCEN ↗

Account protection SIPC member list

Confirms the exact legal entity holding your account is a SIPC member. The brand name alone isn’t enough.

Search SIPC members ↗

Investment advisers SEC adviser search

Confirms an adviser’s registration and shows its Form ADV, including fees, conflicts and disciplinary history.

Search advisers ↗

Firms outside the US The home regulator’s register

For a UK firm, use the FCA Financial Services Register. Check that the licence belongs to the entity you’d actually open an account with.

Search the FCA register ↗

What Protects Your Money at Each Kind of Firm

Registration and protection are different things. A properly regulated forex dealer or crypto exchange still isn’t covered by SIPC.

Account type	Main US regulators	Protection if the firm fails	Look it up
Stock and options brokerage	SEC, FINRA	SIPC: up to $500,000, including $250,000 cash	BrokerCheck, SIPC list
Forex and futures	CFTC, NFA	No SIPC coverage; rules on segregating customer funds apply	NFA BASIC
Crypto exchange	FinCEN, state regulators (NYDFS in New York)	No SIPC or FDIC coverage for crypto	FinCEN MSB search, the exchange’s licence page
Bank deposits	Banking regulators	FDIC: up to $250,000 per depositor, per bank, per ownership category	FDIC BankFind

SIPC protects against a brokerage firm’s failure, not against investment losses. Some crypto exchanges hold customers’ US dollars at partner banks, which can qualify for FDIC coverage; crypto balances don’t.

The Four Checks That Matter

Registration

The right regulator

Brokers answer to the SEC and FINRA, forex dealers to the CFTC and NFA, and crypto exchanges to FinCEN and the states.

Legal entity

The company you actually join

Groups often have many entities. Coinbase’s exchange isn’t SEC-registered, but its securities arm is, and E*TRADE accounts now sit at Morgan Stanley Smith Barney.

Protection

What happens if it fails

Check whether SIPC, FDIC or neither applies to the assets you’ll hold there.

History

Disciplinary record

BrokerCheck and NFA BASIC list past regulatory actions. A long record of issues matters more than any single fine.

Red Flags To Watch For

You can’t find the firm in any database. A legitimate US provider appears in BrokerCheck, NFA BASIC or FinCEN under its legal name.
The details don’t match. Clone firms copy real companies’ names. Check that the website, address and phone number match the regulator’s record.
An unfamiliar or offshore regulator. A licence from a small offshore authority offers little protection to US customers.
Only a parent company is licensed. The entity holding your account needs its own registration, not just its parent or a foreign sister company.
Guaranteed returns or pressure to deposit fast. Regulated firms don’t promise profits or push you to fund an account immediately.
“Insured” claims for crypto. Crypto balances aren’t covered by SIPC or FDIC, whatever the marketing says.

How To Verify a Provider Step by Step

Find the legal entity name. It’s in the website footer, account agreement or disclosures, for example “Interactive Brokers LLC”.
Search the matching database. Use BrokerCheck for brokers, NFA BASIC for forex and futures, and FinCEN for crypto. Note the registration number.
Match the details. Confirm the regulator’s record lists the same website and contact information you’re using.
Check where you live is covered. Brokers list their state registrations, and crypto exchanges publish which states they’re licensed in.
Confirm the protection. Search the SIPC member list for the exact entity, and read what the firm says about FDIC coverage.
Re-check periodically. Look again after mergers, rebrands or news of regulatory action, as E*TRADE’s move to Morgan Stanley Smith Barney shows.

How We Compared

Registrations, IDs and SIPC membership come from FINRA BrokerCheck, NFA BASIC, FinCEN’s MSB search, the SIPC member list and each firm’s own disclosures, checked September 25, 2026 and summarized in the comparison table. Brokers marked “Special Offer” are AInvest partners, and AInvest may be compensated when you open an account through this page. Regulation reduces risk but doesn’t remove it; always confirm a firm’s current status with the regulator before opening an account.

Regulated Brokers and Crypto Exchanges: How To Check