Someone in a group chat is posting screenshots of profits. A friend of a friend swears by a new app. An ad promises "AI trading" that does the work for you. Before any money moves, spend ten minutes on the checks below. They are the same ones regulators recommend, and they catch the vast majority of fake platforms.
A platform is legitimate only if it appears on an official regulator's register under its exact name and the register lists the same website and contact details you are using. Also check the site's age, look for regulator warnings, and test a small withdrawal before depositing more.
Step 1: Check the licence the right way
Regulators keep public registers of firms allowed to offer investments. In the U.S., use FINRA BrokerCheck and the SEC's Investor.gov. In the UK, the FCA Financial Services Register. Australia has ASIC, and most other countries have their own; see our list of financial regulators by country, or start with the licence checker.
Do not stop at the name. Scammers run clone firms that copy a genuine firm's name and registration number. Compare the website, email domain and phone number on the register with the ones you have. If they differ, you are not dealing with the real firm.
Step 2: Search warning lists
Regulators publish warnings about unauthorized firms. The FCA Warning List and the international IOSCO I-SCAN portal collect thousands of them. Search the platform's name and its web address.
Step 3: Check the website itself
Paste the address into our website checker. Fake platforms are usually registered weeks or months ago, hide their ownership, and often use cheap domain endings. A brand-new site claiming a long track record is a contradiction.
Step 4: Read the money rules
- Guaranteed or fixed returns, such as "2% a day".
- Deposits only by crypto, wire to a personal account, or payment apps.
- Withdrawals that need a fee, tax or "verification deposit" first.
- Bonuses that lock your money until you trade a large volume.
- An "account manager" who pushes you to deposit more.
Step 5: Test a withdrawal
Before adding more money, withdraw a small amount back to the same account it came from. Real firms process this without extra payments. If anything blocks it, stop. Some scam platforms allow one early withdrawal to build trust, so a successful test is reassuring but not proof; the licence check matters more.
Real platform or fake: a side-by-side
| Regulated firm | Fake platform |
|---|---|
| On the regulator's register with matching contact details | Not listed, offshore only, or a clone |
| Explains risks and possible losses | Promises steady profits |
| Money held in your name, withdrawals to your own account | Deposits to wallets or third-party accounts |
| You found it yourself | Someone you met online recommended it |
If someone you met online introduced the platform
That is the most common route into investment fraud. Read our guide to pig butchering scams, which explains how relationship-based investment fraud works. If you have already lost money, avoid anyone offering to get it back for a fee; see recovery scams.
Check the register, match the website, test a withdrawal.
Frequently asked questions
How do I check if a broker is regulated?
Search its exact name in your regulator's register (FINRA BrokerCheck and the SEC in the U.S., the FCA register in the UK, ASIC in Australia, or your national regulator) and confirm the website address on the register matches the one you are using.
What is a clone firm?
A scam that copies the name, registration number and address of a real regulated firm but uses its own website, email and phone number. That is why matching contact details on the register matters.
Is an offshore licence good enough?
Licences from some small offshore regulators offer little protection. Prefer firms authorized in your own country, where you have access to a complaints and compensation scheme.
Are crypto exchanges regulated?
It depends on the country. Many now require registration or licensing, but rules differ. Use exchanges registered with your local regulator and check warning lists for the name.
What returns are realistic?
No legitimate investment guarantees high returns. Promises of fixed daily or weekly profits, or "no risk", are a hallmark of fraud.
What is IOSCO I-SCAN?
A free warning list from the International Organization of Securities Commissions that collects regulator warnings about unauthorized firms from many countries.
Can I trust apps in the official app store?
Not automatically. Fake trading apps sometimes pass app store review for a while. Check the company behind the app, not just the listing.
What should I do if I cannot withdraw?
Do not pay any fee or tax to release withdrawals. Save records, contact your bank, and report to your regulator and police. Our pig butchering guide covers the next steps.
Sources
- FINRA BrokerCheck
- SEC Investor.gov: Check out your investment professional
- UK FCA: Financial Services Register and Warning List
- IOSCO I-SCAN investor alerts portal
- ASIC Moneysmart: Investment scams
Figures are the latest available from each source at the time of writing. We review guides when official data or rules change. Spotted an error? Tell us.