Checking a broker in the local register
You will learn where the register sits, what to type into it, and which answers mean the licence does not cover what you were offered. The worked example uses AUD/USD near 0.6640 and shows what one pip costs on a standard lot, so the check has a number attached to it.
Register entries and covered products
A licence entry on the ASIC register lists the legal entity, the licence number, and the products the licence covers. The brand name on a website may belong to a different company. The register entry names the entity that holds the licence. That entity is the one you need to check against the offer.
The covered products list is a short set of categories. It might say derivatives, or foreign exchange contracts, or managed investment schemes. If the product you were offered is not in that list, the licence does not cover it. The business may be allowed to do something else, but not that product.
The register also notes any conditions or restrictions on the licence. A condition might limit the licence to wholesale clients only. If you are a retail client, that condition means the licence does not cover you. Read the conditions line as carefully as the products line.
Name matching and entity checks
The register search works on the legal name, not the brand name. A website might trade as a short, memorable name while the licensed entity is a longer company name. Type the full legal name from the website's terms and conditions, not the logo. If the terms and conditions do not name a legal entity, that is itself a warning.
Even when the name matches, check the address and the licence number against the website. A licence number can be copied from a real entry and pasted onto a fake site. The register entry will show the same number but a different entity name or a different address. Compare all three: name, number, and address.
If the entity on the register is different from the entity that would hold your money, ask which one is your counterparty. Money can be held by a related company that is not licensed. The register only tells you about the licensed entity. It does not tell you where your money sits.
What a register check cannot show
The register does not measure how well a broker executes orders. It does not show spreads, commissions, or slippage. A licensed broker can still have wide spreads or slow fills. The register answers one question: is this business allowed to offer you this product? It does not answer whether the offer is good value.
The register does not cover overseas entities. A broker may hold an offshore licence and appear on a foreign register. ASIC's register will not list that entity unless it also holds an Australian licence. If the website shows an overseas licence number, check that overseas register separately. The Australian register will not confirm it.
The register does not replace a written record of what you were offered. Keep the chat logs, emails, and the product disclosure statement. If the register entry later changes, your record shows what you were told at the time. The register is a snapshot; your records are the history.
One pip on a standard lot at 0.6640
| Step | Amount | Note |
|---|---|---|
| Standard lot size | 100,000 AUD | the contract size for one standard lot |
| One pip in the quote currency | 10 USD | 100,000 x 0.0001 |
| Conversion at the current rate | A$15.06 | 10 divided by 0.6640 |
| Register check | licence number and what it covers | typed into the ASIC register search |
The broker may round the conversion, add a spread or a commission on top, and quote a different rate at the moment your order fills. The register result also depends on the exact legal name, not the brand name on the website.
Doing it once, step by step
The following steps take you through a register check in order, using the legal name and the product you were offered. Do them before any money moves.
- 01
Find the legal name
Open the broker's website and go to the terms and conditions or the footer. Look for a company name, not a brand name. Write it down exactly as it appears, including any Pty Ltd or Limited. If no legal name appears, stop and ask the broker in writing for it.
- 02
Search the ASIC register
Go to the ASIC register of licensed entities. Type the legal name into the search field. If no result appears, the entity is not licensed by ASIC. If a result appears, open the entry and read the licence number, the entity name, and the address.
- 03
Compare the entry with the offer
Check the covered products list against the product you were offered. If the product is not listed, the licence does not cover it. Also check any conditions, such as wholesale-only restrictions. If you are a retail client and the licence is wholesale-only, it does not cover you.
- 04
Match the licence number and address
Compare the licence number on the register entry with the number on the website. They should be identical. Compare the address as well. A copied licence number with a different address means the website may be using someone else's number.
- 05
Ask which entity holds your money
If the licensed entity is not the one that would hold your funds, ask the broker in writing which entity receives your deposit. Ask which licence covers that entity. Keep the reply. If the broker does not answer clearly, do not send money.
- 06
Record the check
Save a screenshot of the register entry and the date you checked it. Save the broker's written answers. If the entry changes later, your record shows what you saw. This record also helps if you need to complain to ASIC later.
The mistake most people make here
The common mistake is to see a licence number in the footer of a website and treat the check as finished. The register can show a licence that exists but does not cover the product you were offered, or covers a different legal entity from the one holding your money. Read the entry itself, not the number. If the covered products do not include the one on offer, stop and ask the broker in writing which entity and which licence applies.Check yourself
A broker quotes AUD/USD at 0.6640. What is one pip worth in A$ on one standard lot?
One pip is 10 USD (100,000 x 0.0001). At 0.6640 that is 10 / 0.6640 = A$15.06, before any spread or commission.
The register shows a licence but the covered products list does not include the product you were offered. What does that mean?
It means the licence does not cover what you were offered. The business may be allowed to do something else, but not this. Do not send money until the broker explains, in writing, which entity and which licence covers the product.
Questions that come up next
Where exactly is the register, and what does it look like?
The register is a search page on the ASIC website. It is public and free to use. You type a name or a licence number into a box and the results list matching entities. Each result opens to show the legal name, the licence number, the covered products, and any conditions. No account or payment is needed.
What name should I type into the search box?
Type the full legal name of the company, not the brand name on the website. The legal name is usually in the website's terms and conditions or the footer. If the site only shows a brand name and no legal entity, that is a warning. The register matches on the legal name, so a brand name may return nothing.
The register shows a licence but the covered products list does not include what I was offered. What does that mean?
It means the licence does not cover that product. The business may be allowed to offer other products, but not the one you were offered. Do not send money until the broker explains in writing which entity and which licence covers the product. If they cannot, treat the offer as unlicensed.
The licence number on the website matches the register, but the entity name is different. Is that a problem?
Yes, it is a serious problem. A licence number can be copied from a real entry and pasted onto a fake site. The register entry will show the same number but a different entity name or address. Compare all three: name, number, and address. If any one does not match, stop.
Does a licence on the register mean the broker is safe to use?
No. The register answers one question: is this business allowed to offer you this product? It does not measure how well the broker executes orders, what spreads or commissions it charges, or how quickly it processes withdrawals. A licensed broker can still have wide spreads or slow fills. The register is a permission check, not a quality check.
What if the broker holds an overseas licence instead of an ASIC licence?
The ASIC register will not list an overseas entity. If the broker only holds an offshore licence, it may not be allowed to offer products to Australian retail clients. Ask the broker in writing which entity would hold your money and which licence covers your account. If the answer is an overseas entity, the ASIC register cannot help you check it.
In Australia
- Regulator
- ASIC
- Register
- the public register on the ASIC website
- Money
- Australian dollars, written A$
- Payment methods
- PayID, BPAY and cards
- Instrument in examples
- AUD/USD near 0.6640
The words used on this page
- ASIC
- The Australian Securities and Investments Commission. It is the regulator that keeps the public register of licensed businesses. It does not recommend brokers or approve products.
- Register
- A public list kept by ASIC. It shows which businesses hold a licence, what products the licence covers, and any conditions. You can search it for free.
- Legal entity
- The registered company that holds the licence. It may have a different name from the brand on the website. The register lists the legal entity, not the brand.
- Covered products
- The list of product categories a licence allows the business to offer. If the product you were offered is not on that list, the licence does not cover it.
- Retail client
- A private customer, as opposed to a wholesale or professional client. Some licences only cover wholesale clients. If you are a retail client, that condition means the licence does not cover you.
- Counterparty
- The business on the other side of your trade. It may be a different company from the one named on the register. The register does not tell you who holds your money.
What to take away
- The register is a public ASIC list. It answers one question: is this business allowed to offer you this product?
- Search by the full legal name, not the brand name. Compare the name, licence number, and address against the website.
- Read the covered products and conditions lines. If the product you were offered is not listed, the licence does not cover it.
- A licence is a permission check, not a quality check. It does not show spreads, commissions, or execution speed.