10 Things to Check Before Opening a Trading Account

How to choose a broker is really a question of how to rule one out. There are thousands of trading platforms, and GlixoCoin does not rank or recommend any of them. What we can do is give you a repeatable checklist. Run any forex broker, share dealer or crypto exchange through the ten checks below before you open an account or send any money.

GlixoCoin itself is an information site. We do not offer accounts, and we have no commercial relationship with any platform.

How to choose a broker: the ten checks

1. Is it authorised where you live?

   Find the firm's authorisation or registration number and look it up on the regulator's own website, not through a link the firm sends you. In the UK that is the Financial Conduct Authority register; in Australia, ASIC; in the EU, the national regulator of the member state. Crypto firms may appear on a separate crypto-asset register. If the firm is only licensed in a small offshore jurisdiction, your protections are usually far weaker.

2. Is it really that firm, or a clone?

   Fraudsters copy the name and registration number of genuine firms. Compare the website address, phone number and email domain on the regulator's record with the ones you have been given. If they differ, treat it as a clone. Many regulators publish warning lists of known impersonators.

3. Who holds your money and assets?

   Ask how client money is segregated from the firm's own funds, and for crypto, whether coins are held one-to-one and how much sits in offline storage. Some platforms publish proof-of-reserves reports; these are helpful but only meaningful if they also account for what the platform owes customers.

4. What happens if it fails?

   Find out whether any compensation scheme applies and up to what amount. For most crypto platforms the honest answer is none. That alone is a reason to limit what you leave on any single platform.

5. What does a round trip cost?

   Add the spread, commissions, overnight financing, currency conversion, and for crypto, maker or taker fees and withdrawal fees. Work out the cost of buying and selling the same position, not just one side. Our trading fees explained guide shows how.

6. Are leverage limits within the rules?

   Regulated retail brokers in the UK and EU are capped at 30:1 on major currency pairs and 2:1 on crypto CFDs, and the UK does not allow crypto derivatives for retail at all. A platform offering 200:1 or 500:1 to retail clients is either outside those regimes or treating you as a professional client, which removes protections.

7. How do withdrawals work?

   Read the withdrawal policy before depositing: processing times, fees, minimums, and any conditions. Conditions such as "trade volume must reach 30 times the bonus before withdrawal" are a warning sign. Once you open an account, test with a small withdrawal early.

8. Is it pushing you?

   Legitimate firms do not phone you out of the blue, assign you an "account manager" who urges bigger deposits, or set deadlines on offers. Bonuses and inducements are banned for retail CFD clients in the UK, EU and Australia, so a bonus-led pitch suggests a firm outside those rules.

9. How does it want to be paid?

   Card and bank transfers into an account in the firm's own name are normal. Requests to send crypto to a personal wallet, pay a third party, or buy gift cards are not. Neither is being asked to pay a "tax" or "release fee" before a withdrawal.

10. Can you reach a real support process?

    Look for a registered address, a complaints procedure, and details of the ombudsman or dispute body you can escalate to. Support that exists only through a chat app is a red flag.

Professional status and "upgrades"

Some platforms invite retail clients to reclassify as "professional" or "elective professional" to unlock higher leverage. Professional clients lose several retail protections, which can include leverage caps, negative balance protection and, in some cases, access to the ombudsman. Legitimate firms must check that you meet the criteria, which typically involve trading experience, portfolio size or professional background. If a salesperson encourages you to tick boxes you do not genuinely meet, or the upgrade is offered as a reward, treat it as a warning.

Extra checks for crypto platforms

• Which networks does it support for deposits and withdrawals? Make sure USDT withdrawals are offered on the network you need; see USDT explained.
• Does it offer address allow-lists and two-factor authentication? These help protect you if your password leaks.
• Is the app genuine? Download only from official app stores via the platform's own website, and check the developer name. Fake apps are common.
• Does it lend out customer coins? "Earn" products often do, which adds risk.

Red flags that end the search

• Guaranteed or fixed returns, or profits that only ever rise.
• A balance you cannot withdraw without first depositing more.
• Contact that started on social media, a dating app or a wrong-number message.
• A platform recommended by someone you have never met in person.
• Pressure to keep the investment secret from family or your bank.

Questions to ask before depositing

If a firm has a support team, send it a few questions in writing and judge the replies as well as the answers:

• Which legal entity will my account be with, and where is it authorised?
• Is my money held in a segregated client account, and at which bank?
• What is the full cost of opening and closing a typical position, including financing?
• How long do withdrawals take, and what fees apply?
• Which complaints body can I go to if we disagree?

Clear, specific written answers are a good sign. Vague replies, pressure to move to a phone call or chat app, or a new "offer" instead of an answer, are not. Firms often operate through several legal entities, and the one you sign with may be far less regulated than the brand name suggests, so read the account terms carefully.

After you open an account

Checks do not end at sign-up. Start with a small deposit, place a small trade, and make a withdrawal before adding more. Watch for changes: new fees announced at short notice, delays on withdrawals that were previously quick, or a sudden stream of calls from a new "senior analyst". Any of these is a reason to pause, withdraw what you can and reassess.

Keeping records

Records matter most when something goes wrong. A dated screenshot of the register entry proves the firm was authorised when you joined, and a saved fee schedule shows whether costs were raised without notice. If the firm later changes its terms, compare the new version with your copy before accepting. For crypto platforms, keep the transaction hash of every deposit and withdrawal; it is the one record the platform cannot alter.

Save screenshots of the firm's authorisation page, the fee schedule and the terms you agreed to on the day you open an account. If a dispute arises later, you will need to show what was promised. Keep a copy of every deposit and withdrawal confirmation too, which also helps with tax.

Where to go next

Read how to spot trading scams for the common fraud scripts, and use the margin calculator to understand what a platform's leverage actually means for your balance.

Sources

• UK Financial Conduct Authority, Financial Services Register and Warning List
• European Securities and Markets Authority, CFD product intervention measures
• Australian Securities and Investments Commission, professional register search