Learn more about the FCA Regulated Forex Brokers

Regulator Info
  • Founded: 2013
  • Head Office: 12 Endeavour Square, London, E20 1JN
  • Phone: 0300 500 8082
  • Email: consumer.queries@fca.org.uk
  • Website: www.fca.org.uk

For many people in the United Kingdom, it can be hard to get involved in the trading industry. The trading industry itself is often a place that can feel lawless, with constant stories about discrepancies and tricks being played by both traders and brokers. However, that has been changing over recent years as the United Kingdom in particular has become very specific about regulation when it comes to things like Forex trading.

All of their regulation is put in place by the Financial Conduct Authority (FCA). They were only formed in 2013, so the company is still growing at this moment in time. However, with an annual budget of over £600m, it’s safe to say that this is one of the most well-funded regulatory bodies in the entire world.

They are a key part of the UK system, though it’s vital to note that they are entirely independent of the UK Government. They regulate all financial firms and service providers in the financial industry. This has been a major boon for the UK, as the 2007-08 financial crisis had vastly weakened the level of trust that existed regarding the UK financial scene.

Thanks to the effort and the hard work carried out by the FCA, that is changing all the time. In a short space of time (compared to some other authorities), the FCA has formed a position of real influence within the British finance industry. That is why it’s become so crucial for traders and investors up and down Britain.

Top FCA Forex Brokers for 2020
Broker Rating Regulation Mobile Min. Deposit Reward Review Site
4.5/5 FCA, CySEC, ASIC, FSCA Yes $100 100% Read Review Trade Now!
4.5/5 FCA Yes $100 $2,000 Read Review Trade Now!
4/5 FCA, CySEC, ASIC Yes £5 £5,000 Read Review Trade Now!
4/5 FCA, NFA Yes $50 N/A Read Review Trade Now!
4/5 FCA, ASIC Yes £100 N/A Read Review Trade Now!
3.5/5 FCA Yes £250 Cashback Read Review Trade Now!
3.5/5 FCA, CySEC, CIMA, DFSA Yes $100 N/A Read Review Trade Now!
3.5/5 FCA, CySEC, ASIC, FSCA**(76.4% of retail CFD accounts lose money) Yes £100 N/A Read Review Trade Now!

*Trading CFDs carries considerable risk of capital loss. **Plus500 UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909). Plus500 CY LTD is authorised and regulated by the Cyprus Securities and Exchange Commission (Licence No. 250/14).

What is the FCA?

The FCA is, as mentioned above, an entirely independent body. Many assume its part of the UK Government, but it is not. It looks to instead provide wholesale regulation across the retail and financial industries. It was built upon the old FSA, and has become a company that is limited by guarantee. It’s a more powerful version of the FSA and there is no doubt about the fact that it’s among the strictest in Europe.

Indeed, the FCA has become one of the most well-structured authorities of its kind. It takes the Bank of England’s Prudential Regulatory Authority and also the Financial Policy Committee into its larger umbrella. Indeed, with around 58,000 businesses in the United Kingdom part of the FCA, it’s one of the largest regulators in Europe.

This means that the firm is responsible for companies that employ over 2m people in the United Kingdom; worth as much as £65bn in tax revenue. It’s for this reason that the FCA is now seen as one of the leading lights when it comes to making changes to the industry. For those who are involved in Forex trading, any brokerage in the UK that is backed by the FCA can be trusted.

By the same token, though, any company that is not part of the FCA should be avoided. They are a strong regulatory body, and only companies that can provide proof of consistently high professional standards will reserve the right to open its doors to customers.

What Can They Do?

Overview of the FCA Forex homepageSo, the FCA has a lot of power after it was given royal ascent through the Financial Services Act 2012. This allowed for a new, stronger framework to come into place after the abolishment of the old FSA. This was very important, as there was little public faith – and trader faith – left after the misdeeds that led to the economic unravelling of 2007-08.

Today, the impact is still felt on the UK economy. That is why the FCA has been given such wide-reaching and specific powers. As they work around the clock to produce the best possible experience for individuals, there is a genuine interest in the public to see more success come form the FCA. They have the power to regulate conduct that is involved in the running and the marketing of any financial products. They have laid down some of the most impressive minimal standards anywhere in the world, too, ensuring that companies have to meet these regulations or face censure.

They even have the ability to initiate full-scale investigations into companies as well as individuals. This is very important, and plays a long-term role in making sure that financial products can be banned for as long as one single year. It could even consider an indefinite ban, if needed. This is so useful, as the UK was known for having a rather challenging scene when it comes to unfair advertising; the FCA has ensured that this has changed.

Has the FCA Helped Regulation in the UK?

Before its formation, the UK financial scene was arguably in as poor health as it had ever been. Limitations were vast in what could and could not be achieved by companies, and it was having a detrimental impact across the entire industry. This would cause serious consternation among various groups, and led to a lot of breakdown with regards to how regulation previously worked. Through the good work of others, though, the FCA has managed to restore the reputation of one of the most damaged industries within the United Kingdom.

Trust is arguably as high as it has ever been due to their ability to force companies to create a more ethical marketing message than they were doing in the past. It’s for this reason that so many people look to work around the clock to manage FCA regulation, ensuring that only regulated firms can take part in working within the UK market.

This is why the FCA is one of the most important regulatory bodies when it comes to Forex. Their high standards has raised the bar up and down the United Kingdom, creating a far more diverse process moving forward. With much stricter rules and regulations than ever before, British traders and Forex brokers have a much greater understanding than ever before.

With much of the challenge of getting involved in trading now gone, many people have taken to Forex since the FCA came in. That strict approach to everything from marketing to ensuring money is segregated from main company accounts has ensured long-term success across the board for the FCA.