Short answer: Selling to an unlicensed dealer is risky because the dealer is committing an offence, there is no guarantee that you will be paid correctly or that your details will be handled properly, and if the metal turns out to be stolen you could find yourself questioned, so the safest approach is to check the licence before you sell and walk away if the buyer cannot show one.
Want verified buyers? Compare offers on ScrapTrade.
List Free →The risk to the dealer
An unlicensed dealer is operating unlawfully, which is a poor start to any transaction.
The risk to you
You have fewer protections if something goes wrong with payment or weight, and no assurance that the dealer is keeping the records the rules require.
What to do instead
Take your scrap to a licensed dealer, or sell through a platform that verifies its buyers, and report suspected unlicensed dealing to your council.
How ScrapTrade Fits In
ScrapTrade verifies buyers on the platform, so you avoid the guesswork of checking a stranger.
Knowing the rules helps you spot a legitimate buyer. ScrapTrade connects you with verified buyers, transparent weighing and escrow-protected payments.
List or Find Scrap on ScrapTrade →Plain answers on what UK scrap metal dealer licensing and record-keeping rules mean when you sell.