About the FCA – UK Regulated Brokers
The Financial Conduct Authority (FCA) is the regulator of Forex, CFD, and other markets brokers in the United Kingdom. As one of the oldest and most respected regulators in the world, there are currently many financial services companies that aim to acquire the license.
Although the FCA is an EU-regulated body, the FCA is very active and sometimes stricter than the rest of the competent EU authorities. There have been many cases where well-known Forex brokers received large fines from the FCA for price manipulations and for acting against the best interests of customers.
For cases where a Forex broker that is regulated by the FCA goes bankrupt, the Financial Services Commission plan will cover all retail clients up to an amount of £ 30,000 and 90% for the next £ 20,000 but cannot exceed the amount of £ 50,000, which is higher than the rest of the competent EU authorities.
List of Forex and CFD brokers regulated by the FCA
The following list contains the main Forex, CFD brokers (and brokers that offer access to other markets) that have FCA regulation:
| Broker | Broker Type | Trading Instruments | Trading conditions | Minimum Deposit | Broker Review |
|---|---|---|---|---|---|
XTB | NDD/STP | -Forex -Commodities -CFD | Spreads: From 0.2 pips Leverage: 1:200 | $250 | Review |
HYCM | Market Maker | -Forex -Commodities -CFD | Spreads: From 1.0 pips Leverage: 1:200 | $100 | Review |
Axi | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.0 pips Leverage: 1:500 | $10 | Review |
Admiral Markets | ECN/STP/Market Maker | -Forex -Commodities -CFD -Stocks | Spreads: From 0.0 pips Leverage: 1:500 | $1 | Review |
Pepperstone | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.1 pips Leverage: 1:500 | $200 | Review |
Valutrades | NDD/STP | -Forex -Commodities -CFD | Spreads: From 0.0 pips Leverage: 1:500 | $50 | Review |
ForexTime | ECN/STP | -Forex -Commodities -CFD | Spreads: From 2 pips Leverage: 1:500 | $10 | Review |
ThinkMarkets | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.5 pips Leverage: 1:500 | $200 | Review |
Tickmill | ECN/STP | -Forex -Commodities -CFD | Spreads: From 0.0 pips Leverage: 1:500 | $100 | Review |
FXOpen | ECN/STP | -Forex -Commodities | Spreads: From 0.5 pips Leverage: 1:500 | $200 | Review |
What are the best brokers regulated by the FCA?
One of the determining factors when choosing an online broker to invest is to check if it is a regulated broker, as well as which is the body that regulates and authorizes this company. The FCA (Financial Conduct Authority) is the financial services regulator of the United Kingdom. It is one of the most respected organizations that exist worldwide and also the most stringent and demanding. In this way, the reliability of the broker and the security of the funds are reinforced.
An online broker has as its regulatory body the one corresponding to the country in which it is based. Therefore, those online brokers based in the United Kingdom will be subject to FCA surveillance and control. In order to offer its services, the broker must obtain a license granted by this same institution. The requirements demanded by the FCA to grant such a license are demanding and obtaining it is a sign of prestige for the broker.
Among others, the missions of the FCA related to online brokers, are to ensure investor protection, the correct commercialization of financial products, transparency in operations, financial stability, and security of customer’s funds.
In this sense, the FCA obliges brokers to maintain a minimum capital that ensures their good financial health, subjects them to rigorous audits (conducted by the FCA and independent companies), and also ensures that the company offers a transparent, equal and professional treatment to his clients. This regulatory body carries out monthly checks, periodic visits, checking accounts, etc., in order to verify that the broker has the minimum capital necessary to maintain the license that allows it to continue offering its services in a legal way.
The FCA attends the brokers customers for any claim that may exist with their broker; It is in direct contact with the British Treasury (the body responsible for the financial system in the United Kingdom), the Parliament, consumer associations, merchants, and European Union authorities with legislative capacity. It also controls the financial information issued by the broker, as well as the promotion of new financial products and services.
Thus, working with a broker regulated by the Financial Conduct Authority (FCA) is an extra guarantee of safety and reliability against unregulated brokers or those that are subject to more flexible regulatory bodies.
After having tested and analyzed numerous online brokers, in the previous table, you can see what we consider the best brokers regulated by the FCA to invest in the markets.