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The Financial Conduct Authority (FCA) is the UK’s financial regulator and is renowned as the most stringent regulator of Forex brokers in the world. The FCA’s licencing fees and operating capital requirements are much higher than other tier one regulators and it has a long-standing reputation for guaranteeing trader security. Brokers regulated by the FCA must have segregated bank accounts for client funds, a minimum of 1 million GBP in operating capital and instantaneous withdrawal processing. The FCA also provides a compensation scheme of up to 50,000 GBP to protect traders against broker-related matters.

To test these brokers, we signed up for a live account and verified their FCA license, platform selection, trading desk type, and minimum deposit requirements. Further testing focused on the trading conditions, the total cost of trading, withdrawal fee requirements and additional fee structures so traders can keep trading costs as low as possible. These are the best FCA-regulated brokers for 2021, according to our testing and our research.

English

Best FCA regulated Forex brokers for 2021

Last updated on 27 Aug 2021
Updated 27 Aug 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
IG Markets
Min. Deposit
GBP 250
4.694.69
Min. Spread
0.60 pips
Fx Pairs
93
FCA Licence
195355
Platforms
Overall Rating
4.69/5
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.
2
Pepperstone
Min. Deposit
GBP 5
4.614.61
Min. Spread
0 pips
Fx Pairs
80+
FCA Licence
684312
Platforms
Overall Rating
4.61/5
AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.
3
XM
Min. Deposit
GBP 5
4.254.25
Min. Spread
0.60 pips
Fx Pairs
57
FCA Licence
705428
Platforms
Overall Rating
4.25/5
AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.
4
FxPro
Min. Deposit
GBP 100
4.244.24
Min. Spread
0.60 pips
Fx Pairs
70+
FCA Licence
509956
Platforms
Overall Rating
4.24/5
AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 77% of traders lose money with this provider.
5
Admirals
Min. Deposit
GBP 100
4.244.24
Min. Spread
0.70 pips
Fx Pairs
50+
FCA Licence
595450
Platforms
Overall Rating
4.24/5
AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, the JSC, and the FCA. 76% of traders lose money with this provider.
6
Tickmill
Min. Deposit
GBP 100
4.484.48
Min. Spread
0 pips
Fx Pairs
60+
FCA Licence
717270
Platforms
Overall Rating
4.48/5
AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 73% of traders lose money with this provider.
7
XTB
Min. Deposit
GBP 5
4.144.14
Min. Spread
0.80 pips
Fx Pairs
49
FCA Licence
522157
Platforms
Overall Rating
4.14/5
AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, DFSA, FCA and the IFSC. 82% of traders lose money with this provider.
8
CMC Markets
Min. Deposit
GBP 5
4.694.69
Min. Spread
0.70 pips
Fx Pairs
330
FCA Licence
173730
Platforms
Overall Rating
4.69/5
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & CMC Proprietary platforms supported. CMC Markets is regulated by the ASIC, FCA, MAS and the FMA. 76% of traders lose money with this provider.
9
Axi
Min. Deposit
GBP 5
4.344.34
Min. Spread
0 pips
Fx Pairs
80+
FCA Licence
509746
Platforms
Overall Rating
4.34/5
AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.
10
HF Markets
Min. Deposit
GBP 100
4.154.15
Min. Spread
0.10 pips
Fx Pairs
50+
FCA Licence
801701
Platforms
Overall Rating
4.15/5
AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA. 69.03% of traders lose money with this provider.

How to compare FCA regulated brokers

FCA is one of the most respected financial regulatory agencies in the world. They are a very traditional but well-funded organization, making regulatory changes and issuing warnings to protect would-be traders and maintain fairness in the CFD industry. All FCA-regulated brokers can be considered safe due to the strict regulatory environment in which they operate, and most of them are very strong all-round. But it is essential to look at the detail of each broker to find out what differentiates them from each other. When comparing FCA regulated brokers consider:

Regulation: While your broker is FCA regulated, your trading account may not be. It is increasingly common for FCA regulated brokers to onboard UK residents onto a different license where trading conditions, like leverage, can be increased without the FCA oversight. While this is not fundamentally bad, a trader should know their trading account is regulated and that FCA will not enforce their regulations in overseas territories. If you value the regulatory oversight of the FCA, don’t trade that for adjusted trading conditions.

Platform choice: Traders have a wide range of industry platforms to choose from, each with pros and cons. When comparing brokers, always consider the platform options, as unique features or a wide variety of platforms could change your trading experience. 

Trading costs: Every broker will charge for their services, but each will have different pricing models and costs. While ECN brokers will charge a smaller spread combined with a commission based on volume, market maker brokers will charge a wider spread. We compare brokers by looking at what 1 lot of EURUSD costs to trade and would encourage traders to do the same in comparing costs. 

MetaTrader 4 is still the industry standard, but many brokers offer MetaTrader 5 and their proprietary platforms. ECN/STP brokers will often support cTrader as it is built specifically for market execution and only allows for minimal broker interference.

Minimum Deposit: The minimum deposit could change by account type, with higher minimum deposits often linked to better conditions. Always consider the minimum deposit specific to the account type you may open. 

Deposit and Withdrawal Methods: Most brokers accept credit cards and bank transfer payment, and many accept online payments through Skrill and Neteller, and some will also accept Bitcoin. Always check the withdrawal fees before making a deposit. 


IG Markets – Best Regulated Broker

IG Markets is one of the best-regulated CFD brokers in the world.  With regulation from no less than ten regulatory authorities, including the FCA, ASIC, and BaFin, it is also publically traded on the London Stock Exchange.  In line with strict regulatory requirements, IG Markets holds all client money in independent trust accounts at a range of credit-worthy high street banks such as Barclays and Lloyds. It also insures all assets with the Financial Services Compensation Scheme (FSCS), and in the unlikely event of IG Markets’ liquidation, clients would have their share of the money returned. 

IG Markets sources its raw prices from multiple execution venues with the aim of reducing its transactional charges, resulting in tighter spreads.  It also ensures that all orders are filled at the current or better price than was quoted.  As a result, spreads start at 0.6 pips for the EUR/USD on its single commission-free account, and traders have the choice between the industry-standard MT4 platform and IG Markets’ L2Dealer platform.   

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.

Pepperstone – Best Platform Support

A pure ECN broker with FCA-regulation, Pepperstone offers trading on Forex, indices, shares, commodities, and allows spread betting. With fast, low-latency execution, support is offered for a wide range of platforms, including MT4, MT5, and cTrader.  Pepperstone also provides institutional grade trading to ensure clients receive competitive pricing and deep liquidity.

Pepperstone offers some of the best trading conditions in the industry, with spreads averaging at 1.09 pips (EUR/USD) on its Standard commission-free Account, and 0.09 pips on its Razor Account in exchange for a commission 0f 7 USD per trade.  All platforms offer automated trading, strategy backtesting, customisable charting, and indicators. 

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
    AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.

    XM – Best Education

    AN FCA-regulated broker, XM offers tight spreads on three simple account types but stands out for its high-quality educational materials and customer support.  With over 20 multilingual market professionals, XM presents a diversified educational knowledge base to empower its clients with a competitive trading advantage.

    XM provides hourly webinars, Q&A sessions with trading experts, in addition to daily updates and briefings which shape the global markets.  It also provides a comprehensive selection of educational videos and platform tutorials covering topics such as How to Open a Trading Account to Backtesting Expert Advisors.  Spreads start at 0.6 pips on the EUR/USD, and XM has a strict no-requotes/rejection policy, which means that trades are always filled at the expected price. 

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    • Fast and free withdrawals
    Cons
    • Dealing desk
    AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.

    FXPro – Best Execution

    FxPro is a respected FCA-regulated broker with no dealing desk intervention.  Most client trades are filled in under 14 milliseconds, with 80.48% of market orders executed at the requested price while 9.6% of clients receive a better price, or positive slippage.  All trades are executed at Equinix Data centres in LD4 London, and trading servers are connected with Tier 1 banks that provide liquidity via its proprietary aggregator, Quotix. 

    Traders can choose between four different platforms – MT4, MT5, C-Trader, and the FxPro platform, and there is an account type associated with each platform.  The minimum deposit is 100 USD on all accounts, and traders can access leverage of up to 30:1.  While spreads are relatively wide on its MT4 and MT5 accounts compared to other brokers at 1.61 pips (EUR/USD), spreads tighten significantly on its C-Trader Account averaging at 0.31 pips in exchange for a commission of 4.5 USD per trade. 

    Pros
    • Well regulated
    • Great platform choice
    • Tight spreads
    Cons
    • Limited education
    AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 77% of traders lose money with this provider.

    Admirals – Best MetaTrader Platform Support

    An FCA-regulated STP broker, Admirals is renowned for its wide range of tradeable instruments and excellent MetaTrader platform support.  Admirals offers five live trading accounts on both the Metatrader 4 and Metatrader 5 platforms.  It also created a customised plug-in, the MetaTrader Supreme Edition, which provides insights from a third-party provider, Trading Central, including pattern recognition and technical analysis directly to the platforms.  MetaTrader Supreme also features the Global Opinion toolset, which harnesses the power of news sentiment on a global scale, by detecting subtle, but significant changes in the undercurrents of the financial markets. 

    Admiral Markets offers both MT4 and MT5 market execution accounts suitable for beginners and more experienced traders, with minimum deposit requirements of 100 USD on all accounts, tight spreads starting at 0.5 pips on the EUR/USD, and charges a low commission of 1.8 – 3 USD per lot traded. 

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    Cons
    • Expensive withdrawals
    AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, the JSC, and the FCA. 76% of traders lose money with this provider.

    Tickmill – Lowest Commission STP/ECN Broker

    Regulated by the FCA, Tickmill has won many awards for its excellent trading conditions.   With trading on multiple assets, including Forex, stock indices and oil, precious metals, and bonds, Tickmill offers three live accounts.  Spreads are relatively wide on its commission-free Classic Account, at 1.6 pips on the EUR/USD, but tighten to an average of 0.1 pips on its Pro Account in exchange for a small commission of only 2 USD per side per lot traded. 

    Although Tickmill only provides support for the MT4 platform, trades are executed in 0.1 seconds without any dealing desk interference.  Tickmill also allows prospective traders to practice trading in real-time and test tools and strategies to sharpen trading skills risk-free on its demo account.  New traders can explore the full suite of customisable tools and features offered on the MT4 platform.    

    Pros
    • Tight spreads
    • Well regulated
    • Fast and free withdrawals
    • Wide range of assets
    Cons
    • Limited base currencies
    AlertAccepts UK Clients. Average spread EUR/USD 0.00 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles. 73% of traders lose money with this provider.

    XTB – Best Proprietary Platform

    XTB is an FCA-regulated STP broker offering trading on a single live market execution account with no minimum deposit requirements, leverage of up to 30:1, and a choice of over 1500 instruments.  Following a recent decision to move away from MT4, XTB now only provides trading on its award-winning proprietary platform – xStation 5. 

    xStation5 offers many of the same advanced trading features found on MT4, but it introduces XTB sentiment data directly into the platform, allowing traders to view the percentage of clients trading long and short, and on which instruments.  It also offers powerful charting tools, one-click trading, real-time performance statistics, and a trader’s calculator.  In addition, XTB’s mobile application connects seamlessly to the xStation 5 desktop version.   

    Pros
    • Well regulated
    • Tight spreads
    • Low minimum deposit
    • Good for beginners
    Cons
    • Limited platform choice
    AlertAccepts UK Clients. Average spread EUR/USD 0.50 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, DFSA, FCA and the IFSC. 82% of traders lose money with this provider.

    CMC Markets – Largest Range of Forex Pairs

    An FCA-regulated CFD broker, CMC Markets offers trading on indices, commodities, treasuries, cryptocurrencies and over 330 Forex pairs, one of the largest sets in the industry.  CMC Markets offers a single live account with a minimum deposit requirement of 5 GBP, and minimum spreads starting at 0.7 pips on the EUR/USD, which is tighter than other market maker brokers.

    CMC Markets offers full support for MT4 and its own Next Generation trading platform in addition to a great variety of trading tools, including Autochartist, a free VPS service, and the FX Blue plugin.  Next Generation is available via web browser and mobile app and comes with 115 technical indicators, 70 chart patterns, and 12 chart types.  An economic calendar and Reuters newsfeed are both built into the platform. 

    Pros
    • Well regulated
    • Tight spreads
    • Good for beginners
    • Excellent education
    • Excellent market analysis
    Cons
    • No swap-free account option
    AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & CMC Proprietary platforms supported. CMC Markets is regulated by the ASIC, FCA, MAS and the FMA. 76% of traders lose money with this provider.

    Axi – Best MT4 Customisation

    Axi is an Australian-based FCA-regulated ECN broker offering trading on multiple assets, including indices, commodities, gold and silver, cryptocurrencies, and 140 Forex pairs.  While platform choice is limited to MT4, Axi has received industry recognition for its MT4 setup and offers an extensive suite of MT4 trading tools and plugins, including Autochartist, a free VPS, and PsyQuation. 

    Axi offers competitive trading conditions on two live accounts with no minimum deposit requirements and leverage of up to 30:1.  Spreads start at 0.4 pips (EUR/USD) in exchange for a commission of 7 USD round turn on its MT4 Pro Account, and 1 pip (EUR/USD) on its commission-free MT4 Standard Account, which is in line with other brokers. 

    Pros
    • Low minimum deposit
    • Wide range of assets
    • Well regulated
    • Tight spreads
    Cons
    • Poor customer service
    • Limited demo account
    AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.

    HF Markets – Best Analysis App

    HF Markets is an ECN/STP broker regulated by multiple authorities including the FCA.  It offers full support for both the MT4 and MT5 trading platforms in addition to a number of trading tools, including Autochartist, VPS Hosting Services, and its proprietary HF App.  The HF App allows traders to deposit and withdraw funds, apply technical indicators, copytrade, and create watchlists.

    Additionally it features several analysis tools, including Daily Market Analysis from its expert analysts, Trading Positions, a unique market indicator providing information on how traders are reacting to currency and commodity movements, and a Traders’ Board, with information on currency movers and volumes traded.   Other useful tools include a Live Quotes feature, Trading Calculators, and an Economic Calendar. 

    Pros
    • Well regulated
    • Excellent market analysis
    • Copy trading accounts
    Cons
    • Limited base currencies
    AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA. 69.03% of traders lose money with this provider.

    Why Trade with an FCA Regulated Forex Broker?

    There are few genuinely strong regulators in the world; the Australian Securities and Investments Commission is one, the Cyprus Securities and Exchange Commission is another, and the UK’s Financial Conduct Authority (FCA) is probably the leading member of this group.

    London, and the UK in general, is recognised globally for being a strong, reputable financial centre and so it stands to reason that the UK’s financial regulator also has a reputation for reliability and strength.

    The FCA oversees all British firms and individuals offering financial services and applies one of the world’s strictest regulatory environments. This is also the case for Forex brokers operating in the country, with the FCA being very active in enforcing compliance with the rules and regulations governing CFD products and consumer protection.

    The FCA has a long-standing reputation for guaranteeing trader security and dealing harshly with bad brokers. We will talk about the FCA’s broader role in ensuring a safe environment in more detail below, but first, let’s look at the current benefits of trading with an FCA regulated broker.

    • Segregated Accounts: Like most good regulators, the FCA ensures that all brokers keep client funds segregated from broker operational funds and in Tier 1 banks.
    • Operating Capital: To ensure that all Forex brokers can maintain their clients’ positions in the market, every FCA regulated broker must have at least 1 million GBP in operating capital, which increases according to the number of traders and the trading capital. This is to ensure that all brokers can meet their financial obligations without fail.
    • Instant Withdrawal Processing: Brokers must ensure that all withdrawals are processed instantaneously.
    • Financial Service Compensation Scheme (FSCS): The FSCS is one of the most generous compensation schemes in the world. It offers protection for traders against broker-related issues by providing a guarantee of up to 50,000 GBP in compensation.

    All FCA Regulated Brokers

    This is our list of all FCA-regulated brokers that we have reviewed sorted by overall rating. Those brokers with the highest overall score will appear at the top of the list.

    Scroll for more detailsPreviousNext
    Overall Rating
    Regulators
    Min. Deposit
    Cost of Trading
    Fees
    No. of FX Pairs
    Compare
    Official Site
    4.69 /5
    Read Review
    GBP 5
    USD 7
    Fees Included in Spread
    330
    Visit Broker >
    Your capital is at risk
    4.69 /5
    Read Review
    GBP 250
    USD 6
    Fees Included in Spread
    93
    Visit Broker >
    Your capital is at risk
    4.64 /5
    Read Review
    USD 20
    USD 6
    Fees Included in Spread
    166
    Visit Broker >
    Your capital is at risk
    4.61 /5
    Read Review
    GBP 5
    USD 6.90
    From 7 USD / lot - Razor Account
    80+
    Visit Broker >
    Your capital is at risk
    4.48 /5
    Read Review
    GBP 100
    USD 4
    4 USD / lot - Pro Account
    60+
    Visit Broker >
    Your capital is at risk
    4.34 /5
    Read Review
    GBP 5
    USD 12
    7 USD / lot - PRO account
    80+
    Visit Broker >
    Your capital is at risk
    4.33 /5
    Read Review
    GBP 10
    USD 15
    4 USD / ECN Accounts
    59
    Visit Broker >
    Your capital is at risk
    4.25 /5
    Read Review
    GBP 5
    USD 16
    7 USD / lot - XM Zero Account
    57
    Visit Broker >
    Your capital is at risk
    4.24 /5
    Read Review
    GBP 100
    USD 5
    1.8 - 3 USD per lot
    50+
    Visit Broker >
    Your capital is at risk
    4.24 /5
    Read Review
    GBP 100
    USD 14
    9 USD / lot
    70+
    Visit Broker >
    Your capital is at risk
    4.18 /5
    Read Review
    GBP 100
    USD 12
    8 USD / lot - Raw Account
    38
    Visit Broker >
    Your capital is at risk
    4.14 /5
    Read Review
    GBP 5
    USD 5
    Fees Included in Spread
    49
    Visit Broker >
    Your capital is at risk
    4.09 /5
    Read Review
    GBP 100
    USD 8
    Fees Included in Spread
    70+
    Visit Broker >
    Your capital is at risk
    4.07 /5
    Read Review
    GBP 100
    USD 6
    Fees Included in Spread
    50+
    Visit Broker >
    Your capital is at risk
    4.05 /5
    Read Review
    GBP 5
    USD 6
    Fees Included in Spread
    33
    Visit Broker >
    Your capital is at risk
    3.74 /5
    Read Review
    GBP 50
    USD 11
    Zero Accounts
    85
    Visit Broker >
    Your capital is at risk
    3.69 /5
    Read Review
    USD 50
    USD 10
    Fees Included in Spread
    52
    Visit Broker >
    Your capital is at risk
    3.42 /5
    Read Review
    GBP 100
    USD 40
    Fees Included in Spread
    55
    Visit Broker >
    Your capital is at risk

    The FCA’s Role In Forex Trading

    FCA-regulated Forex brokers are governed by rules that enhanced trust through enforcing market discipline, and adjust provider behaviour to prevent harm from happening to customers, and assisting when things go wrong.

    The FCA’s role in Forex trading is to oversee the activities of the Forex brokers, to ensure compliance with rules that are designed to protect end users and the overall economy.

    A Forex broker that is regulated by the FCA is required to consider the interest of their customers and treat them fairly. Also, the FCA requires that information is shared with customers in a way that is easy to understand, fair and not misleading.

    The mission of the FCA.

    The mission of the FCA is to regulate financial services through a framework of directives, and enforcement mechanisms.  The board of the FCA reports to the Financial Services Ombudsman who can bring information to the attention of parliament, and the industry through a series of publications.

    What consumers can expect from the FCA

    In principle, a consumer should expect to get protection from the regulation and the enforcement of rules of the FCA. The framework is designed to help protect those who may have a lesser understanding of the financial markets, from those who have a better understanding of them.

    This protection includes helping Forex brokers set up rules for how to handle complaints and correct any issues.

    The FCA’s main purpose beyond the regulation of financial organisations is to provide customers with reliable information. Their website maintains a warning list, which is a list of organisations that are potentially seeking to defraud customers, as well as provide information on the regulated entities and the products they offer.

    The customer centre is available weekdays from 8 am to 6 pm, and half day Saturday from 9 am to 1 pm, which gives potential traders access to knowledgable financial specialists who can help answer questions, or take note of a complaint or report a scam.

    Key achievements of the FCA

    The FCA achievements taking into consideration their short history are significant. Since 2013, when the FCA started regulating the UK financial industry, London has become more acknowledged as a major global financial centre.

    Before the FCA being set up, there was no mechanism in the UK to keep the retail investor safe from companies that promoted complicated financial products that have a high-risk financial impact on the consumer.

    The immediate achievement of the FCA the development of the requirements for financial organisations designed to protect the consumer, and a set of policies to help those who have already been harmed get easy access to a remedy.

    The FCA is also transforming attitudes of the companies and those who work in the financial sector in the UK. This change has meant for fairer products, marketing tactics, and the development of a more customer-centric approach.

    In changing the way companies operate internally and how they work with clients to remedy issues they create, the FCA has accomplishment has made the financial sector in the UK and the companies that are regulated by it, much safer for the average retail Forex trader.

    The history of the FCA

    The FCA replaced the Financial Services Authority in 2012, whose reputation had been impacted during the financial crash when it was revealed that structural flaws in the organisation had led to poor regulation. As a result, the FCA is more powerful and consumer-focused than the FSA was, which is good news for Forex traders as they are very well protected under the new regime.

    The FSA acted in an arbitrator role and had a broader mandate to oversee the entire financial system. When the FCA was created, it became responsible for the policing of the UK financial activities and the banking system. At the same time that the FCA was founded, sister agencies of the Bank of England’s Financial Policy Committee and the Prudential Regulation Authority which take responsibility for other financial sectors.

    The global reputation of the FCA

    The FCA is internationally recognised as one of the most trusted and objective regulatory services. It is a traditional organisation, and the framework which governs was created in 2013 to manage the current-day marketplace.  This activity has indirectly impacted many millions of UK households, and has set a standard for other similar organizations worldwide.

    FCA Structure

    The FCA board is responsible for the overall framework implementation – which includes oversight of 6 committees which report into it, and the appointment of the Chief Executive to execute on the strategy set by the board.

    The committee structure gives insights into the risks the FCA sees in the market, and how they work together in a system of self-regulation and gradual adaptation to prevent against new threats.

    Risk & Strategy Committee evaluates the risks that are posed by the financial organisations on the market and is tasked to find strategies to mitigate those risks from being passed on to the consumers.

    The Audit Committee monitors the effectiveness of the policies and the strategies used by the FCA.

    The Regulatory Decisions Committee is the committee that takes actions against organisations that violate the rules. This committee acts on tips from the public and information from the investigators on the audit committee.

    The Oversight Committee then works with the board of the FCA to manage their relationship with the parliamentary appointed Financial Services Ombudsman who is the UK’s official expert in sorting out problems with financial services. This relationship is valuable as this brings information to the government so that laws can be written, and government oversight is present.

    Remuneration Committee is a committee that oversees a transparent process for how executives at the FCA are paid. This process ensures fair treatment of all staff and also respects that the FCA is a publicly funded organisation.

    Similar to the Remuneration Committee, the Nominations Committee, acts as an internal mechanism to ensure the integrity of skills on the board so that the mandate of the FCA continues to be acted on effectively.

    These committees, working with and feeding off each other, create a robust self-regulated system of rule-setting, auditing, enforcement and accountability to the people of the UK.

    Summary

    The FCA is a highly-valuable protective component of the UK financial services system that has been put in place to protect consumers with little financial knowledge from organisations with more knowledge selling them complex and risky financial products.

    Any organisation that is regulated by the FCA is mandated to treat the customer fairly, and in the absence of a customer directive, make the decision that best suits the interest of the customer.

    An FCA-regulated organisation takes responsibility for the accuracy and transparency of the information they promote and maintain discipline in their internal processes that are designed to protect themselves and their clients.

    A Forex broker that is regulated by the FCA will expect their advice and support to be available in helping set up internal processes to protect and remedy issues that should arise in their business.

    Overall, an FCA-regulated broker can be trusted to protect your funds, never communicate misleadingly, and has the client’s best interest in mind when doing business selling clients financial products and services.

    Forex Risk Disclaimer

    Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

    Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

    Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

    Our Methodology

    Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

    With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

    In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

    All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

    Featured Brokers

    Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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