The Financial Conduct Authority (FCA) is the main regulatory agency for the Forex Brokers that are based in the UK. Choosing an FCA regulated broker is a wise decision of any UK based forex trader.
The brokers in below comparison table represent the best FCA regulated forex brokers.
|Broker's Name||More information||Trust Score||FCA reference nbr.||Minimum deposit||Trading Platforms||Broker Type||Our Review|
81% of CFD retail accounts lose.
|98%||FCA Ref.nbr 522157||$100||MT4||STP||Review of XTB|
76.5% of CFD retail accounts lose.
|95%||FCA Ref.nbr: 684312||$100||cTrader, MT4||ECN||Review of Pepperstone|
75% of CFD retail accounts lose money.
|95%||FCA Ref.nbr: 583263||$200||CopyTrader™||MM||Review of eToro|
73.57% of CFD retail accounts lose.
|95%||FCA Ref.nbr: 705428||$5||MT4, MT5||STP||Review of XM broker|
79% of CFD retail accounts lose.
|87%||FCA Ref.nbr: 504072||$100||MT4, AvaOptions, AvaGO||STP||Review of AvaTrade|
80.5% of CFD retail accounts lose.
|85%||FCA Ref.nbr: 509909||$100||Webtrader||MM||Review of Plus500|
List of the best Forex Brokers regulated by FCA
XTB is a regulated CFD broker with more than 10 years in service.
XM has been established in 2010. Since then it has been one of the most respectful fx brokers in the industry.
True ECN broker, is regulated by the UK FCA, ASIC Australia, DFSA in Dubai.
Plus500 is very popular CFD broker with more than 300,000 traders from all over the world. Broker is regulated by FCA U.K., ASIC, Singapore MAS, South African FSCA. Plus500 Ltd is even listed on London Stock Exchange.
Social Trading Platform eToro has been established in 2008, since 2013 it’s been well known for its Copy Trading feature.
Broker is regulated by the most respectful FCA UK, ASIC and CySEC Cyprus.
Gain Capital company. Regulated by FCA UK, ASIC and MAS Singapore.
What is FCA – Financial Conduct Authority
The FCA stands for the “Financial Conduct Authority“, representing an important independent financial regulatory body in the United Kingdom. FCA (former FSA) 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. forex brokers.
With that in mind, the main aim of the FCA 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.
In case an FCA authorised forex broker goes bancrupt, retail traders shouldn’t worry about their invested money since there is a compensation scheme in place called FSCS Financial Services Compensation Scheme that protects retail clients up to £50,000. Basically it covers 100% up to £30,000 and 90% for the next £20,000.
You can file a claim to FSCS and in case your request is successful you will be compensated up to the limit that applies.
Many regulated brokers have been fined by the FCA for fraudulent activities. FCA is very strict, sometimes even more strict than other forex regulatory agencies around the globe and brokers know it!
How to check if a broker is regulated by the FCA
Are you in doubt whether your chosen forex broker is on the list of FCA regulated brokers or not ?
Here is the way to check it easily:
- 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. For example famous XM broker is registred under their business name is Trading Point of Financial Instruments Ltd.
- 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. They seem to be FCA regulated forex brokers but in fact they are not. In fact they piggyback on other successful brands and mimick them.
How to Contact the FCA
Do you want to file a complaint or are you being scammed? You can contact the FCA by calling them from Monday until Friday 8AM to 6PM via 0800 111 6768 (freephone) or 0300 500 8082 from the UK, or +44 207 066 1000 from abroad.
Understanding How the FCA Operates
It’s critical to note that the FCA is entitled to revoke licenses if the situation asks for it, as well as oversee the materials created for marketing and promotional purposes, to ensure their legitimacy. In addition to that, the FCA is involved in auditing company financials. This is essential in order to establish the reliability index of each company. This way, consumers can be confident that they get a decent deal whenever they collaborate with financial companies.
So, when it comes to the forex brokers that work under the FCA, the obvious conclusion is that these firms are legitimate, and they address the needs of the client, not the other way around.
With that in mind, you might wonder whether the same high standards apply in the regulation of Forex brokers. Yes, according to the law, all the trading forex brokerages that function in the UK must get a license from the FCA.
Aside from this, the FCA must provide them a regulation. This is primarily why one might think that the FCA regulated forex brokers are reliable. The code of conduct entails a wide range of specifications the brokers must abide by. The code of conduct is the result of the prescription by the Financial Services Act of 2012.
When the situation asks of it, the FCA will resort to these laws, in order to protect the rights of the consumer.
Does the FCA Work for the Benefit of the Traders?
Essentially, the FCA actually oversees the way in which financial companies work with their customers. Hence, it could be said that the FCA actually works in the benefit of the consumer, focusing on promoting healthy competition in the marketplace.
Nevertheless, considering that the FCA is actually a regulatory body, this means it doesn’t facilitate help or mediation services when it comes to issues between the brokerages that are FCA regulated and their customers.
In spite of this, it is highly advisable to check whether a broker is regulated by the FCA, specifically if you want to assess the authenticity or reliability of a regulation. Another idea would be checking with the FCA warning list.
The Bottom Line
On a final note, even if some of the most renowned FCA regulated forex companies are based abroad, the majority have been regulated by other bodies, as well (ASIC regulated forex brokers). As the trading industry develops, it is critical to develop a critical spirit in this respect to assess the reliability of a broker before funding an investment.