How to check if a broker is authorised: registers, red flags and checks

In short

Before depositing, find the exact legal name of the company and check it in the official register of its supervisory authority, not only on its own website.
Being authorised means the firm must follow rules. It is not a guarantee against losses and not an endorsement.
Warning signs include unsolicited contacts, returns far above the market and difficulty identifying who is behind the service.

A five-step check before you deposit

Find the legal name. Trading names and brands are not the company. Look in the terms and conditions, the "about" or "legal" pages and the footer for the exact company name, its country and its registration number.
Find the supervisory authority. For a firm based in the EU it is usually the financial authority of the country where the company is established.
Search the official register. Use the authority's own register, or the investment-firms register that ESMA, the EU markets authority, publishes with data from national authorities. The name should appear as an investment firm with an active status, and the register shows which services it is authorised for.
Check it can serve your country. A firm authorised in one EU country can usually offer services in others, but this must be notified to the local authority. Your national authority often publishes lists of firms operating there.
Read what it says about client money. Look for how client funds are held (separate from the company's own money) and which compensation scheme applies, with its limits.

If any step does not match, stop and ask the firm in writing. Do not deposit while you have unanswered doubts.

What authorisation does and does not tell you

It tells you	It does not tell you
The firm is supervised and must follow conduct, reporting and client-money rules	That an investment will not lose value: market losses are yours
Which services and products the firm may offer	That the platform suits your needs or that its costs are low
Who to complain to if something goes wrong	That a compensation scheme covers every kind of loss: such schemes usually cover firm failure, within limits, not market falls

Red flags

You cannot tell who is behind it or which authority supervises it.
Unsolicited contact: phone calls, messages, social-media offers or banners pushing you to deposit quickly.
Returns far above the market, or promises that you cannot lose.
Registered in an offshore or little-known jurisdiction, with no local authorisation.
Pressure to deposit more, or trouble withdrawing what you put in.
A clone of a real firm: a similar name or website to an authorised company. Always type the address yourself and compare the legal name with the register.

Your national financial authority usually publishes warnings about unauthorised operators: search them before depositing, and report suspicious offers to them.

A concrete example: how to apply the check to eToro

Data from eToro's official regulation page, checked on 2 October 2026. They can change: verify on the site and in the registers before deciding.

Which company: for EU clients the page names eToro (Europe) Ltd, registered in Cyprus (company no. HE 200585), authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) under licence number 109/10.
What to do with it: search that name and licence number in the authority's register and in ESMA's register, and compare them letter by letter. This is the step that matters: do not rely on the platform's page alone.
Client money: the page describes segregated client accounts and an investor compensation scheme with limits. Read the conditions: it does not cover market losses.

Authorisation is the starting point, not a reason to invest. Costs, risks and whether a product suits you still need your own evaluation. If you want to read the conditions on the platform, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.

Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.

What to read next

To see what happens to cash left on a platform, read which accounts pay interest on your savings. For costs that can erode returns, see depositing euros on eToro and what conversion costs. Tax is the other question to settle early: taxes on investing with a foreign broker.

Frequently asked questions

Where can I check whether a broker is authorised?

In the register of the authority that supervises it, which for EU firms is usually the financial authority of the country where the company is established, and in ESMA's register of investment firms. Your national authority also publishes warnings and lists of firms operating in your country.

Does an authorised broker protect me from losing money?

No. Authorisation means the firm must follow rules on conduct and client money. Investments can still lose value, and compensation schemes generally cover the failure of the firm, within limits, not market losses.

Is a broker authorised in another EU country allowed to serve me?

Often yes: EU rules let an authorised firm offer services in other member states after notifying the local authority. Check that it appears in the lists published by your national authority and read which entity your contract is with.

What if a broker is not in any register?

Treat it as a warning sign and do not deposit. Ask the firm in writing which authority supervises it, and check with your national financial authority.

Which eToro company serves EU clients?

According to eToro's regulation page, eToro (Europe) Ltd, authorised by CySEC under licence number 109/10. Verify it in the official registers rather than trusting any single page.