How to choose a CFD broker: five regulatory checks to make before you open an account

Fees and features are easy to compare. The protections behind your account matter just as much, and they depend on which company you sign with and which regulator supervises it.

Most people choose a trading app the way they choose any other: on reviews, costs and how easy it is to use. Those things matter. But a broker’s regulation also shapes some of the most important parts of your trading experience, including how much leverage you can use, how your money is held, and what support exists if something goes wrong.

This guide explains the main protections to look for when choosing a CFD broker, and how to confirm them for yourself in a few minutes.

Why one broker can have several regulators

Most large brokers are not a single company. They are groups of separately licensed firms, each serving clients in particular regions. The company you sign with usually depends on where you live.

ThinkMarkets, a London and Melbourne-based broker founded in 2010, is a typical example. The table below shows which group company serves clients in each region and which regulator supervises it.

This structure exists because a licence in one country does not usually allow a firm to serve clients in another. The European Union is the main exception: a firm licensed in one member state can “passport” its services across the bloc. That is why so many brokers serve EU clients from Cyprus.

Check 1: Leverage limits

Leverage lets you open a larger position than your deposit alone would allow. It magnifies both gains and losses, which is why many regulators limit it for retail clients.

In 2018 EU regulators capped retail leverage on CFDs at between 30:1 and 2:1, depending on how volatile the underlying asset is. Major currency pairs sit at the top of that range and cryptocurrencies at the bottom. The FCA made the same limits permanent in the UK from August 2019, and ASIC introduced comparable limits in Australia in 2021. Retail clients of ThinkMarkets’ UK, EU and Australian companies trade under these limits.

When comparing brokers, check which limits apply to your account and whether they match your experience and risk appetite.

Check 2: Negative balance protection

Negative balance protection means a retail client cannot lose more than the money in their trading account. If a market moves sharply, for example when prices gap over a weekend, the broker absorbs any shortfall rather than asking the client to make it up.

It is a regulatory requirement for retail CFD clients in the UK, the EU and Australia. Elsewhere, policies vary, so it is worth checking the client agreement or the broker’s website for the exact terms.

Check 3: Segregated client funds

Regulated brokers are generally required to keep client money in bank accounts separate from their own operating funds. This means client money is not used to run the business and is identifiable as belonging to clients.

Most brokers explain their arrangements publicly. ThinkMarkets, for instance, sets out how it holds client money on its regulation page, including its use of segregated accounts with major banks.

Check 4: Compensation and complaints

Some jurisdictions run schemes that can compensate eligible clients if a regulated firm fails. In the UK, the Financial Services Compensation Scheme can cover eligible claims against FCA-authorised investment firms up to £85,000. In Cyprus, the Investor Compensation Fund covers eligible clients of regulated investment firms up to €20,000.

It is also worth knowing where to take a complaint the broker cannot resolve. In New Zealand, for example, ThinkMarkets’ local company is a participant in the Insurance & Financial Services Ombudsman Scheme, an approved dispute resolution scheme. Coverage differs between countries, so check which scheme applies to your entity.

Check 5: Your client classification

Brokers classify clients as retail or professional. Every client starts as retail and receives the full set of regulatory protections. Experienced traders who meet set criteria can apply to be treated as professional clients, which gives access to higher leverage but changes which protections apply. At ThinkMarkets, this means Elective Professional Client status in the UK and wholesale or professional status in Australia, assessed through a wealth test or a sophisticated investor test.

Before accepting any reclassification, read exactly what it involves and make sure it suits your experience.

ThinkMarkets in brief

Key facts about ThinkMarkets that readers can check against public sources:

• Founded: set up in 2010 as ThinkForex by brothers Nauman Anees and Faizan Anees. It rebranded as ThinkMarkets in 2016 and is privately held.
• Offices and reach: headquarters in London and Melbourne, with clients in more than 165 countries. Support is available in over 20 languages, 24 hours a day.
• Markets: CFDs on up to 4,000 instruments across forex, indices, commodities, shares, ETFs and cryptocurrencies. Availability depends on the client’s region and the entity that holds the account.
• Platforms: the ThinkMarkets Trading Platform (formerly ThinkTrader), MetaTrader 4, MetaTrader 5 and TradingView, with availability varying by region.
• Tools and education: Traders’ Gym lets users test strategies on historical price data, and TrendRisk Scanner scans markets for potential trade set-ups. ThinkAcademy provides guides, webinars and tutorials.
• Funding: in February 2022 it announced a US$40 million package, combining a US$30 million debt facility from Mars Growth with a US$10 million convertible equity investment supported by existing shareholder Regal Funds Management.
• Recognition: TradingView gave it Newcomer of the Year at its 2024 awards and named it Europe’s Best Forex and CFD Broker 2025, announced in January 2026. In 2026, CompareForexBrokers.com gave its trading platform the Best Trading App award and TechRadar named it Best for Analysis.

How to check a CFD broker in five minutes

1. Find the legal name. It appears in the client agreement and, usually, in the website footer.
2. Search the regulator’s register. Use the FCA Financial Services Register in the UK, ASIC’s professional register in Australia, CySEC’s register in Cyprus, the FSCA’s FSP search in South Africa, the Financial Service Providers Register in New Zealand and the DFSA public register in Dubai.
3. Match the details. Confirm that the website address and contact details on the register match the ones you are using. Regulators publish warnings about “clone” firms that copy genuine companies’ details.
4. Read the risk warning. Brokers regulated in the UK and EU must state the percentage of retail accounts that lose money when trading CFDs with them.
5. Confirm your classification. Check whether you will be treated as a retail or professional client.

Frequently asked questions

What is negative balance protection? It is a rule or policy that prevents a retail trading account from falling below zero. If losses exceed the account balance, the broker covers the difference.

What is a regulated CFD broker? A broker authorised by a financial regulator, such as the FCA or ASIC, to offer CFDs. Regulation sets rules on capital, client money, conduct and marketing.

Is ThinkMarkets regulated? Yes. Its regulated companies include TF Global Markets (UK) Limited (FCA, FRN 629628), TF Global Markets (Aust) Pty Ltd (ASIC, AFSL 424700), TF Global Markets (Europe) Ltd (CySEC, licence 215/13) and TF Global Markets (South Africa) (Pty) Ltd (FSCA, FSP 49835).

Does a multi-regulated broker protect every client in the same way? Not necessarily. Each group entity follows the rules of its own regulator, so protections depend on the entity that holds your account.