Why regulation is the first filter, not the last
Most people compare brokers on cost and check the regulator afterwards, if at all. That is the wrong order. The difference between a tight and a wide spread is measured in pounds a month; the difference between an authorised firm and an offshore lookalike is measured in whether your balance exists at all next year.
The practical routine takes four minutes. Find the firm on the Financial Services Register, confirm the reference number matches the entity named in the account terms, check the permissions cover holding client money, and confirm the trading name you were marketed under is listed. If any of those fail, stop.
Large groups routinely operate a UK entity alongside offshore ones. The offshore arm may offer higher leverage and a friendlier bonus, and it sits entirely outside the FSCS, the Ombudsman and the retail protections described in these hubs. Same brand, completely different consumer position.
- Authorisation is permission to trade, not a quality rating
- Protections follow the legal entity, not the brand or the website
- FSCS cover is £85,000 per eligible person per authorised firm
- Trading losses are never compensated, whatever the regulator