Which Prop Firm is Regulated? How to Verify Before Joining

Before paying for any prop firm evaluation, you need to verify their regulatory status. Scam firms have stolen millions from traders who didn't do basic due diligence.

This guide shows you exactly how to check if a prop firm is regulated before you join.

How to Check if a Prop Firm is Regulated

Verification takes 10 minutes and can save you thousands. Here's your step-by-step process.

Step 1: Find Their Company Registration

Every legitimate prop firm displays company registration details on their website. Look for:

• Company name (often different from brand name)
• Registration number
• Country of registration
• Registered address

If this information is hidden or missing, that's your first red flag.

Step 2: Verify in Official Registries

Once you have the company details, verify them in official government databases:

• UK: Companies House (companieshouse.gov.uk)
• EU Countries: Each country has its own registry
• Austria: Firmenbuch (for firms like TradersYard)
• US: State business registries

The company name, registration number, and address should match exactly what's on the website.

Step 3: Check Their Broker

Many prop firms use third-party brokers for trade execution. Verify the broker's regulation separately:

• FCA (UK): register.fca.org.uk
• CySEC (Cyprus): cysec.gov.cy
• ASIC (Australia): asic.gov.au

A regulated broker adds protection even if the prop firm itself isn't directly regulated.

Verification Steps

Let's walk through verifying a real prop firm.

Example: Verifying TradersYard

TradersYard states they're registered in Austria. Here's how to verify:

1. Visit their website and find company details in footer/legal pages
2. Note the Austrian company registration number
3. Search the Austrian Firmenbuch (business register)
4. Confirm the company name, address, and status match
5. Check their published rules and terms for consistency

TradersYard passes all verification steps. They're transparent about their Austrian registration and operate under EU business law.

What the Registry Should Show

A legitimate company registry entry shows:

• Company status: Active/Current
• Date of incorporation (avoid very new companies)
• Directors/officers names
• Registered office address
• Filing history (shows they submit required documents)

Missing filings or "dissolved" status means avoid the firm entirely.

Red Flags of Unregulated Firms

These warning signs indicate a potentially unregulated or scam prop firm:

Hidden Company Information

• No company registration number displayed
• Generic addresses like "London, UK" without specifics
• Contact only via email or chat, no phone number
• Anonymous ownership

Offshore Registration

Be cautious of firms registered in:

• St. Vincent and the Grenadines
• Seychelles
• Marshall Islands
• Belize

These jurisdictions have minimal oversight. If something goes wrong, you have no legal recourse.

Too-Good-To-Be-True Offers

• 100% profit splits (no firm survives on 0% cut)
• No evaluation required for huge accounts
• Massive discounts with urgent deadlines
• Guaranteed funded accounts

Payout Complaints

Search "[firm name] payout problems" and "[firm name] scam" before joining. Trustpilot, Reddit, and Forex Factory forums reveal patterns of non-payment.

Top Regulated Prop Firms

These firms have verified regulatory status and positive payout records:

TradersYard

• Registration: Austria (EU)
• Verification: Austrian Firmenbuch
• Entry Cost: From €36/$39
• Payout Record: Under 4 hours, thousands of verified payouts

FTMO

• Registration: Czech Republic (EU)
• Verification: Czech Commercial Register
• Entry Cost: From $155
• Payout Record: Established since 2015

Topstep

• Registration: United States (Illinois)
• Verification: Illinois Secretary of State
• Entry Cost: From $49/month
• Payout Record: Operating since 2012

TradersYard Regulation Status

TradersYard chose Austria for specific regulatory reasons:

• EU Compliance: Full adherence to European business law
• Consumer Protection: EU-level rights for all traders
• Data Security: GDPR-compliant data handling
• Banking: European banking partners for secure transactions

Austrian business registration means TradersYard files regular reports and maintains transparent operations. This level of accountability is rare in the prop firm industry.

See how TradersYard operates with full transparency on their evaluation process and payout procedures.

Frequently Asked Questions

How do I verify a prop firm is legitimate?

Check their company registration in official government databases. Look for the registration number on their website, then verify it matches in the business registry of their stated country. Also check Trustpilot reviews for payout proof.

What if I can't find a prop firm's registration?

Don't join them. Legitimate firms proudly display registration details. Hidden information usually means they're operating without proper legal structure or they're in an offshore jurisdiction with no oversight.

Does FCA regulation matter for prop firms?

The FCA doesn't directly regulate most prop firms because they don't hold client investments. However, if a prop firm uses an FCA-regulated broker, that provides some protection. EU business registration (like TradersYard's Austrian status) offers similar accountability.

Can offshore prop firms be trusted?

Some can, but the risk is higher. Offshore jurisdictions have minimal business oversight and no consumer protection. If an offshore firm refuses to pay, you have virtually no legal options. Stick with EU, UK, or US-registered firms when possible.

How do I report a prop firm scam?

Report to the relevant authority in their stated country of registration. For EU firms, contact consumer protection agencies. Also post detailed reviews on Trustpilot and trading forums to warn other traders.

Your Verification Checklist

Before joining any prop firm, complete this checklist:

1. Find company registration details on their website
2. Verify in official government business registry
3. Check company status is "Active"
4. Confirm address and registration number match
5. Search for payout complaints online
6. Check Trustpilot score (aim for 4.0+)
7. Verify their broker is regulated (if applicable)
8. Read terms and conditions completely

This process takes 10-15 minutes but protects you from losing hundreds or thousands to scam firms.

TradersYard passes every verification step. They combine Austrian EU regulation with industry-leading payout speeds and affordable entry costs.

Start your verified TradersYard evaluation with confidence knowing you're joining a properly regulated prop firm.

For a complete list of regulated options, see our guide on what prop firms are regulated.