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FCA Regulated Forex Brokers 2021

Published by Usman Ahmed, MBA (Researcher)

Reviewed by Bowen Khong, ACCA

Let’s face it, most Forex brokers out on the market are not working in your best interest, and some of them may even generate profit from your losses. And worst, some are so unreliable that you would find yourself having a hard time withdrawing your hard-earned trading profits. 

FCA regulated forex brokers are bound by guidelines that protect investors like you. This article will provide helpful information about FCA, their functions, and how they protect you in the United Kingdom. Furthermore, I’ll recommend you a list of trusted brokers you can trade with in the UK.

Read: Forex Trading in the UK

Overview of FCA

The Financial Conduct Authority (FCA) is the UK financial system that regulates all the brokers and markets that provides financial services in the UK. This is to ensure that their services remain balanced, honest, and effective. FCA launched its operations in April 2013 as a regulatory body independent of the UK government.

The Financial Services Authority (FSA) set up in 1997 was in charge of regulating all financial services before FCA was formed. The body was dissolved because of the 2008 financial crisis alongside the Prudential Regulation Authority and the Bank of England’s Financial Policy Committee.

The Financial Conduct Authority (FCA) has three basic objectives which are to protect the consumers, enhance market integrity, and promote competition on behalf of the consumers. Its power cuts across regulating conduct in all financial industries and setting standards for brokers and financial intermediaries. It also investigates all financial misconducts, and places a ban for violations of guidelines. All forex brokers that operate in the United Kingdom must acquire the FCA license.

In summary, FCA regulates all Forex brokers and other financial institutions in the UK to protect traders against financial crimes and misconduct. The authority is among the most esteemed for effective regulation, supervision, and protection.

How Does FCA Protect UK Traders?

FCA works to protect all investors from deceitful forex trading by registering Forex brokers who would want to operate in the UK. An investor like you looking for trusted forex brokers can trade with FCA regulated brokers. They are mandated to abide by rules that the authority set out.

FCA regulated Forex brokers guarantee extra protection compared to those who are not regulated by any authority. The functions of the authority can be grouped into developmental, regulatory, and protective functions.

Developmental Functions

  • One of its developmental functions is to control all Forex and CFD transactions.
  • The FCA is self-regulatory and self-governing.
  • It is the major financial independent center in the UK and home to about 91 FCA regulated brokers and CFD firms.
  • FCA has an extensive network of staff and financial monitoring technologies.
  • They have a reputation for rewarding originality and punishing fraudulence.

Regulatory Functions

  • FCA is empowered to register, regulate, monitor, and investigate brokerages within its jurisdiction.
  • The authority keeps records of all its regulated brokers.
  • The authority stipulates the expected standards for all Forex brokers registered under it.
  • The FCA advises all its brokers on regulatory matters and enforcement proceedings.

Protective Functions

  • The body works to protect investors and traders from price manipulations and fraud.
  • The FCA controls the marketing of financial products and payments systems.
  • All registered Forex brokers are directed to either adjust or withdraw ambiguous promotions.
  • In case of bankruptcy, FCA offers capital deposits and protective covering for all Forex brokers.
  • The FCA has strict investors’ protection regulations that include segregated accounts, compensation schemes, and many more.

Protect Yourself With Regulated International Brokers 

The FCA advises all investors and traders to check if a broker is registered before dealing with them. This is to ensure the protection of all brokerages and traders. If you find any Forex broker that claims to be on the register but it is not, you can report such broker by contacting the FCA customers’ helplines.

They have developed an all-inclusive online portal with the necessary information, findings, and updated data about all registered Forex brokers. You can submit your complaint about any forex broker to the  online support or call the customer’s helplines.

If you are not sure about which FCA regulated brokers to use, I’ll give you some recommendations in the next section. The list contains trusted international brokers under FCA.

Trusted International Forex Brokers 

See below for the 5 best Forex brokers in UK:

Plus500

Plus500 began operations in 2008 with its headquarter in Israel. It is registered under some of the world’s prominent regulated brokers. The broker is used by over 15,500 traders because it offers uttermost credibility and the best trading conditions.

Benefits of trading with Plus500

  • Various trading instruments and trading platforms
  • Unlimited free and demo accounts
  • A minimum deposit of 100 GBP/USD.
  • Free deposits and withdrawal.
  • No charges on inactive accounts.
  • No commission fee.
  • 24/7 online customer support.
  • Lucrative leverage from 1:300.
  • Welcome bonus for new customers.

Read: Plus500 Review

VantageFX

VantageFX is an international broker that was founded in 2009 with its head office in Australia. They offer spread betting, CFD, social and share dealing trading.

Why should you trade with VantageFX?

  • A minimum deposit of $200.
  • A demo account is available.
  • Leverage up to 1:500
  • Three types of accounts.
  • Fast, convenient, and reliable with education tools for beginners.
  • Customer support available via email, live chat, and some regional phone numbers.
  • Free cost for deposit and withdrawal.
  • Bonus up to 88.8% of the account balance.

Read: VantageFX Review

FXCM

Forex Capital Markets (FXCM) was set up in 1999. It is a United Kingdom-based forex broker. Regulated by ASIC, FCA, and others. FXCM has generated favorable reviews due to its reliable forex, CFD, and spread betting trading services.

What you can enjoy from FXCM:

  • Demo account.
  • Variety of account types.
  • Several deposit and withdrawal options.
  • Mobile-friendly trading platform.
  • Minimum deposit 300 EUR.
  • Research portal for forex education and platform tutorials.
  • 24/5 customer support and toll-free phone numbers.

Read: FXCM Review

FP Markets

FPM (FP Markets) is an offshore forex and CFD broker. The broker was founded in 2005 and has its head office in Sydney. FP Market offers a low and quick account opening service. It supports close to 10 currencies.

FPM advantages

  • Leverage up to 1:500.
  • Offers several trading platforms and instruments.
  • A minimum deposit of $100.
  •  Zero fees on all deposits.
  • Different deposits and withdrawal methods.
  • Demo account available for 30 days.
  • FPM offers a range of educational and trading resources for all traders.
  • Excellent 24 hours a day, 7 days a week customer service via email, contact numbers, and live chat.
  • Raw spreads

Read: FP Markets Review

Cityindex UK

Cityindex UK was founded in 1983. It is a forex trading firm regulated by FC, MAS, and ASIC. The broker was acquired by GAIN Capital in 2015. Traders can register for any of the 3 trading accounts available on Cityindex. It is prominent for spread betting.

What Cityindex UK offers you

  • Wide variety of trading instruments and trading platforms.
  • Fast and smooth account opening.
  • Demo account.
  • Minimum deposit is 25 USD/GBP.
  • No inactivity fee is charged
  • Free withdrawal and deposit fee.
  •  ‘Refer a friend’ and ‘rebate scheme’ promotions.
  • Customer-friendly web trading.
  • Reliable customer service.
  • Competitive spreads.
  • Premium and high-quality market research.

Read: City Index Review

Conclusion

For your peace of mind, make sure you trade with FCA regulated brokers that follow its strict regulatory guidelines and framework. Stay away from Forex brokers who are not regulated and registered with the FCA or any international financial institutions.

If you value reliability, transparency, and stress-free, trading with regulated brokers makes a lot of sense. From the list I have provided above, I’ll recommend that you check out Plus500, they offer amazing features and benefits.

Usman Ahmed, MBA (Researcher)
Usman Ahmed, MBA (Researcher)
Usman Ahmed is a currency trader and financial market analyst with more than 7 years of active trading experience. Besides holding a Masters degree in Business Administration, he has worked for some of the most renewed companies in the forex industry including FXCM, IQOption, MetaQuotes, Alpari, FXStreet, DailyFX and several others. Usman possesses strong technical analytical skills and is famous for his very own, informative and entertaining, writing style. He believes in naked chart trading analysis that is commonly known as price action trading. He follows global financial news and macro-economic events very closely.
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