The Financial Conduct Authority (FCA) is the main regulatory agency of financial service providers in Great Britain.
This article will help you to find the best FCA regulated broker in the UK. Check out the list below that was prepared based on our expertise and in-depth research.
Top 5 Brokers with FCA Regulation:
- eToro
- Pepperstone
- XTB
- HF Markets
- Henyep Markets (HYCM
Comparison
| Broker's Name | More information | Quality Score | FCA reference nbr. | Minimum deposit | Trading Platforms | Our Review |
|---|---|---|---|---|---|---|
eToro |  51% of CFD retail investor accounts lose money. | 99% | 583263 | 100 USD | CopyTrader™ | Review |
Pepperstone |  76% of CFD retail investor accounts lose money. | 99% | 684312 | 200 GBP | cTrader, MT4. MT5 Metatrader TradingView | Review |
XTB |  82% of CFD retail investor accounts lose money. | 99% | 522157 | 1 GBP | xStation | Review |
HF Markets |  68.35% of CFD retail investor accounts lose money. | 98% | 801701 | 50 GBP | MetaTrader 4 MetaTrader 5 HFM Platform | Review |
HYCM |  72% of CFD retail accounts lose. | 85% | 186171 | 200 GBP | MT4, MT5, Webtrader | |
AvaTrade |  71% of CFD retail accounts lose. | 96% | 504072 | 100 GBP | Metatrader MT4, AvaOptions AvaGO | Review |
IG |  76% of CFD retail accounts lose. | 70% | 195355 | 100 GBP | MT4, Webtrader | |
CMC MARKETS |  73% of CFD retail accounts lose. | 70% | 173730 | 1000 GBP | MT4,Webtrader | |
SAXO Bank |  71% of CFD retail accounts lose. | 70% | 551422 | 10000 GBP | SaxoTrader GO, SaxoTrader PRO | |
ActivTrades |  76% of CFD retail accounts lose. | 70% | 434413 | 500 GBP | MT4, MT5, Webtrader | |
Plus500 |  77% of CFD retail investor accounts lose. | 46% | 509909 | 100 GBP | Webtrader | - |
Forex.com |  73% of CFD retail accounts lose. | 20% | 190864 | 100 GBP | MT4, MT5, Webtrader |
#1 – eToro
eToro is a social trading broker that has been in the business since 2008 and they claim to have over a million traders. eToro broker is considered very safe. It is regulated by Tier 1 regulators in the UK and Australia and several Tier 2 regulators. You can try free demo account with $10,000 virtual money. In the recent years eToro has introduced stocks trading with zero commision.
Most clients choose eToro for their unique social copy trading platform that allows them to automatically copy all trades of successful investors of their choice. Broker provides an access to over 2000 financial markets and instruments including foreign currency pairs, shares, cryptocurrencies, indices, commodities and ETF Exchange Traded Funds.
eToro clients can access eToro’s safe crypto wallet,
Pros
- CopyTrader feature that allows you to automatically copy successful traders
- Minimum deposit 100 USD
- Buy/Sell Real Stocks With ZERO Commission
- Proprietary crypto wallet
- 46 currency pairs, 60+ Cryptocurrencies, 1600 Shares
- Competitive forex spreads starting from 1 Pips
Cons
- US Dollar as the only base account currency
51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
#2 – Pepperstone
Pepperstone has been awarded as the best FCA-regulated forex and CFD broker.
Pepperstone broker is considered safe. This fx broker is regulated by several Tier 1 financial regulators. Company is headquartered in Melbourne Australia with offices in London. Pepperstone offers an access to a vast amount of financial instruments including 70+ Currency pairs, 100’s of CFDs on Shares, Spread betting for UK/Ireland clients, Commodities, Indices and Cryptocurrencies. It is an excellent choice for both beginners and advanced traders.
Pros
- Ultra Tight Forex Spreads
- Top platforms on the market: MetaTrader MT4, MT5, cTrader, WebTrader
- Broker regulated by FCA UK, ASIC Australia, BaFin Germany etc
- Offices in London UK
- GBP British Pound is account currency
- Minimum deposit £0 for UK traders
- 60+ currency pairs to choose from
Cons
- US clients are not accepted
76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
#3 – XTB
XTB broker is authorised and regulated by the UK Financial Conduct Authority
XTB is a public company, their shares are listed on Warsaw Stock Exchange. Based on the countless user reviews this fca broker is very client oriented and therefore popular among the sophisticated traders and investors.
Pros
- xStation trading platform is very user friendly
- Strong focus on high quality education for clients
- Awarded as the Best CFD Trading platform of 2018 / 2019 / 2020
- Fast trade execution
- Buy/Sell Real Stocks With ZERO Commission
- Forex trading, CFD Cryptocurrencies, Real Stocks
- Minimum deposit 1 GBP
- 46 currency pairs available
- Competitive fees starting from 0,5 Pips
Cons
- Higher fees for stock CFDs
76% of CFD retail investor accounts lose money.
Frequently Asked Questions (FAQ)
Why Trade with an FCA Broker ?
First and foremost FCA is one of the strongest financial regulators in the world with a long-standing reputation for guaranteeing trader security. FCA’s role is to maintain a safety financial environment and punish harsh brokers.
Besides the FCA there are only few other Tier 1 financial regulators such as ASIC and Cysec.
FCA oversees all British financial firms such as ECN Brokers in the UK, MT4 Brokers UK and thus provides safety for all british traders.
The benefits of trading with FCA regulated trading brokers:
- Financial Service Compensation Scheme (FSCS) – a guarantee to be compensated up to 50,000 GBP in case something goes wrong with the broker
- Operating Capital must be at least 1 million GBP
- Segregated Bank Accounts – broker must keep his operational funds segregated from client’s money
- Instant Withdrawal Processing – broker must ensure to process all withdrawals almost instaneously
What is Financial Conduct Authority
The FCA (former FSA) stands for the “Financial Conduct Authority“, representing an important independent financial regulatory body in the United Kingdom. It is an official financial markets regulatory agency in the UK. It is based in London, UK and its main responsibility is to regulate and examine the operation of financial institutions incl. brokerages.
With that in mind, the main aim is to ensure that the code of conduct is fair and that all the firms in the UK operate accordingly. It is considered to be one of the most serious regulators not only in Europe but also in the World.
How to check if the broker has FCA license
Are you in doubt if your forex broker is on the list of FCA regulated brokers ?
- First of all, head to their website: https://register.fca.org.uk/
- Type your brokerage name into “SEARCH by company, person product” field
- In case you cannot find anything, check broker’s website as many of them have a business name that is different to their name on the website.
- Didn’t find anything ? You might have been scammed. Just contact the FCA (see below details)
- Also beware of the “clone companies” that are a big problem nowadays and clear sign of a forex scam. In fact they piggyback on other successful brands and mimick them. They seem to be FCA forex brokers but in fact they are not. In fact they piggyback on other successful brands and mimick them.
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