The Financial Conduct Authority (FCA) is generally considered one of the strictest regulatory bodies in the world, so traders using FCA regulated brokers can rest assured a reputable and reliable agency is overseeing the firms.
The FCA is in charge of regulating and licensing the financial services industry in the UK. The agency’s primary role is to protect consumers by overseeing financial services providers, keeping the industry stable, and promoting healthy competition between the companies. The majority of firms that offer, promote or sell financial services or products in the UK have to be authorised by, or registered with, the FCA.
If the FCA authorises a firm and a consumer has a problem with its service, they can report the firm to the FCA. The FCA will assist consumers in recovering any money owed to them by the firm and in accessing the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS) if needed.
The Best FCA Regulated Brokers
|73% of retail CFD accounts lose money. US Clients: No Regulated : Yes
– Ultra-fast execution from 0.2s
|from 0.0 pips
Sign Up Your capital is at risk
|81% 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. US Clients: No Regulated : Yes
– FCA (FRN 509909), ASIC, FMA, and FSCA Regulated.
Sign Up 81% 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.
|Between 74-89 % of retail investor accounts lose money when trading CFDs US Clients: No Regulated : Yes
|NDD 0.09 / Standard 0.69
Sign Up Between 74-89 % of retail investor accounts lose money when trading CFDs
|77% of retail CFD accounts lose money US Clients: Yes Regulated : Yes
- eToro: eToro is a popular FCA regulated broker that meets high standards of efficiency and transparency. This multi-asset investment platform offers a wide range of financial instruments but is particularly well-known for its forex offerings and cryptocurrencies. It is also known for its social trading tools, competitive fees and spreads, and excellent demo account.
- Pepperstone: Pepperstone is a well-known broker that complies with several Tier 1 regulators. As well as being regulated by the FCA in the UK, it is regulated by ASIC in Australia and CySEC in Cyprus and the rest of the EU. This broker offers some of the lowest spreads around and quick order execution on its MT4, MT5, and cTrader trading platforms. The firm focuses on forex and CFDs.
- FXPro: FXPro was founded in 2006 and has been offering brokerage services ever since, serving retail and institutional clients in over 170 countries worldwide. As well as being authorised by the FCA, the firm has also been regulated by CySEC since 2007 and by the FSCA since 2015. The broker offers trading in CFDs on six different asset classes.
- XTB: XTB is another multi-asset brokerage, offering CFDs on a range of instruments, including forex, stocks, ETFs and cryptocurrencies. Like other FCA regulated brokers, the firm follows all best practices to keep clients happy and their investments secure. They also offer a world-class trading platform with fast execution speeds and a highly customisable interface.
- ThinkMarkets: This premium multi-asset online broker was founded in 2010. It is fully authorised and regulated by the FCA and provides regular financial reports to the agency, as well as undergoing an annual audit. Customer assets are protected by the UK’s Financial Services Compensation Scheme, up to a limit of £85,000. The firm also carries ‘Excess of FSCS Insurance’, offering protection of up to £1 million.
Why trade with an FCA Regulated broker
There are a few important benefits when you choose an FCA regulated broker to trade with.
- The broker is operating legally – Being registered with the FCA is a legal requirement for most UK-based brokers and other financial services firms.
- FCA regulated brokers undergo careful checks and a rigorous application process before being granted a licence to operate in the UK.
- Once issued with a licence, brokers are required to comply with the FCA’s strict regulatory requirements at all times.
- FCA regulation ensures brokers offer top security for their client’s investments.
- If you have a problem with an FCA regulated broker that the broker does not resolve to your satisfaction, you can complain to the FCA.
- You will have access to the Financial Ombudsman Service: a free, independent service for settling disputes between financial services providers and their customers.
How to check if a broker is FCA regulated
It is essential to check that any broker or other financial services provider you use in the UK is FCA approved. You can go to the FCA website here and check their register of authorised firms. The register lists all firms, and individuals, registered with the agency, along with details of which activities they are licensed to carry out and what protections are available to consumers doing business with them. A helpful video on the website explains exactly how to use the register.
FCA regulated brokers and FCA regulated forex brokers must demonstrate compliance with regulatory standards to obtain their licence and authorisation to operate. They also need to show compliance and high standards on an ongoing basis to keep their operating licences in force. If there are suggestions of impropriety or non-compliance, the FCA will act, assessing what has happened and dealing with any issues that may impact the firm’s customers.
The FCA has the authority to investigate the brokerage, audit and monitor the broker’s dealings with its customers and deal accordingly with any findings. The agency can revoke licences in extreme cases and assist individual consumers with making official complaints and recovering any money owed to them by a brokerage.
The FCA has various rules allowing for compensation to be paid to consumers, including the Financial Services Compensation Scheme (FSCS), which essentially exists to compensate consumers in cases where a financial provider is unable, or likely to be unable, to satisfy claims made against them.
Traders can rest assured that a broker registered and licensed by the FCA has to follow best practices and comply with some of the highest standards of fairness and efficiency or deal with the consequences. The five brokers we have listed here are some of the best FCA regulated brokers available.