List of Brokers with FCA Regulation

The FCA is one of the most prestigious regulatory bodies that exists independently from the United Kingdom Government. FCA helps regulate more than 56,000 financial services companies. Their responsibilities include overseeing financial markets in the UK, promoting fair competition in financial services for the benefit of consumers, as well as investigating to ensure regulatory compliance and treat customers fairly.

FAQ

What does FCA regulated mean?

Being regulated by FCA (Financial Conduct Authority) means operating under the standards of the United Kingdom's financial regulator. FCA-regulated brokers are known to have clear regulations, reputation, and infrastructure. This does not come as a surprise as the UK is one of the countries with the most advanced financial activities in the world. The FCA is overseen directly by the Bank of England and works with the UK Financial Ombudsman to resolve disputes.

What are the FCA rules?

The protection of customer funds is FCA's main focus, leading them to enforce certain protocols that prevent its brokers from committing any financial frauds. All FCA regulated Forex brokers should adhere to the following rules:

• Keeping the client funds in segregated accounts away from their company accounts, and should not use traders' money for any other purposes.
• Maintaining at least £1 million in operating capital, which increases according to the number of traders and the trading capital.
• Ensuring that all withdrawals are processed instantaneously and that the company can meet all financial obligations without fail.
• Submitting yearly audit reports and periodic financial statements to verify that all the facts provided to the FCA are accurately represented.
• Protecting the clients under the FSCS (Financial Services Compensation Scheme) that is aimed to offer protection for traders against broker-related issues by providing a guarantee of up to £50,000 in compensation.

What is the main purpose of FCA?

The FCA oversees the process of regulating financial companies in conjunction with the Bank of England and the Prudential Regulatory Authority. The split of financial industry regulation into different entities helps to streamline the entire process of regulation and ensuring integrity and transparency of the UK's financial markets.

What are the powers of FCA?

Although FCA does not personally get involved in any conflict between a broker and its clients, the regulatory agency will investigate any instances of fraud or consumer abuse. The FCA will revoke a company's licenses and issue hefty fines to if it is found guilty, to the extent of permanently ban the broker from operating in the UK.

To help them conducting their tasks, the FCA has an excellent online database that provides a vast amount of information on regulated brokers, new scams, financial malpractices, and other relevant data. It has been made clear that the agency has been granted immense powers by the UK Government to keep financial businesses in line with the rules and framework.

If you are interested to open an account in one of the brokers in the list above, make sure to try the forex demo account before proceeding to register in the live account.