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The Financial Conduct Authority (FCA) is the UK’s financial regulator and is renowned as the most stringent regulator of Forex brokers in the world. The FCA’s licencing fees and operating capital requirements are much higher than other tier one regulators and it has a long-standing reputation for guaranteeing trader security. Brokers regulated by the FCA must have segregated bank accounts for client funds, a minimum of 1 million GBP in operating capital and instantaneous withdrawal processing. The FCA also provides a compensation scheme of up to 50,000 GBP to protect traders against broker-related matters.

To test these brokers, we signed up for a live account and verified their FCA license, platform selection, trading desk type, and minimum deposit requirements. Further testing focused on the trading conditions, the total cost of trading, withdrawal fee requirements and additional fee structures so traders can keep trading costs as low as possible. These are the best FCA-regulated brokers for 2021, according to our testing and our research.

English

The best FCA regulated Forex brokers for 2021

Last updated on 6 Oct 2021
Updated 6 Oct 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
FxPro
Min. Deposit
USD 100
4.244.24
Min. Spread
0.60 pips
# CFDs
255
Deposit & Withdrawal Methods
Overall Rating
11110.54.24/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB.
2
FXTM
Min. Deposit
USD 10
4.334.33
Min. Spread
0.10 pips
# CFDs
795
Deposit & Withdrawal Methods
Overall Rating
11110.54.33/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage Flexible. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.
3
IronFX
Min. Deposit
USD 50
3.743.74
Min. Spread
0 pips
# CFDs
285
Deposit & Withdrawal Methods
Overall Rating
1110.503.74/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.2 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. Only MT4 platform supported. IronFX is regulated by CySEC, FCA, ASIC, and the FSCA - FSP:45276.
4
HotForex
Min. Deposit
ZAR 70
4.494.49
Min. Spread
0 pips
# CFDs
1150
Deposit & Withdrawal Methods
Overall Rating
11110.54.49/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
5
Admirals
Min. Deposit
USD 25
4.244.24
Min. Spread
0.70 pips
# CFDs
3818
Deposit & Withdrawal Methods
Overall Rating
11110.54.24/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Admirals is regulated by the FCA, ASIC, CySEC, and the JSC.
6
XTB
Min. Deposit
USD 5
4.144.14
Min. Spread
0.80 pips
# CFDs
2045
Deposit & Withdrawal Methods
Overall Rating
11110.54.14/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.50 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, FCA, the DFSA, the FSCA, and the IFSC
7
IG Markets
Min. Deposit
USD 250
4.694.69
Min. Spread
0.60 pips
# CFDs
19295
Deposit & Withdrawal Methods
Overall Rating
11110.54.69/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.6 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.
8
Capital Index
Min. Deposit
GBP 100
3.943.94
Min. Spread
0 pips
# CFDs
69
Deposit & Withdrawal Methods
Overall Rating
1110.503.94/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. Capital Index is regulated by the FCA, CySEC & the SCB.
9
markets.com
Min. Deposit
ZAR 2500
4.494.49
Min. Spread
0.60 pips
# CFDs
2235
Deposit & Withdrawal Methods
Overall Rating
11110.54.49/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5 & Marketsx platforms supported. MarketsX is regulated by the FCA, CySEC, ASIC, and the BVI FSC.

How to compare FCA regulated brokers

FCA is one of the most respected financial regulatory agencies in the world. They are a very traditional but well-funded organization, making regulatory changes and issuing warnings to protect would-be traders and maintain fairness in the CFD industry. All FCA-regulated brokers can be considered safe due to the strict regulatory environment in which they operate, and most of them are very strong all-round. But it is essential to look at the detail of each broker to find out what differentiates them from each other. When comparing FCA regulated brokers consider:

Regulation: While your broker is FCA regulated, your trading account may not be. It is increasingly common for FCA regulated brokers to onboard UK residents onto a different license where trading conditions, like leverage, can be increased without the FCA oversight. While this is not fundamentally bad, a trader should know their trading account is regulated and that FCA will not enforce their regulations in overseas territories. If you value the regulatory oversight of the FCA, don’t trade that for adjusted trading conditions.

Platform choice: Traders have a wide range of industry platforms to choose from, each with pros and cons. When comparing brokers, always consider the platform options, as unique features or a wide variety of platforms could change your trading experience. 

Trading costs: Every broker will charge for their services, but each will have different pricing models and costs. While ECN brokers will charge a smaller spread combined with a commission based on volume, market maker brokers will charge a wider spread. We compare brokers by looking at what 1 lot of EURUSD costs to trade and would encourage traders to do the same in comparing costs. 

MetaTrader 4 is still the industry standard, but many brokers offer MetaTrader 5 and their proprietary platforms. ECN/STP brokers will often support cTrader as it is built specifically for market execution and only allows for minimal broker interference.

Minimum Deposit: The minimum deposit could change by account type, with higher minimum deposits often linked to better conditions. Always consider the minimum deposit specific to the account type you may open. 

Deposit and Withdrawal Methods: Most brokers accept credit cards and bank transfer payment, and many accept online payments through Skrill and Neteller, and some will also accept Bitcoin. Always check the withdrawal fees before making a deposit. 


These are best FCA regulated brokers for 2021

  • FxPro - Best Execution
  • FXTM - Best FCA-Regulated Broker for Beginners
  • IronFX - ECN Broker with the Most FX Pairs
  • HotForex - Best Analysis App
  • Admirals - Best MetaTrader Platform Support
  • XTB - Best Proprietary Platform
  • Capital Index - Best MT4 Supported Broker
  • markets.com - Most Instruments to Trade

FXPro – Best Execution

FxPro is a respected FCA-regulated broker with no dealing desk intervention.  Most client trades are filled in under 14 milliseconds, with 80.48% of market orders executed at the requested price while 9.6% of clients receive a better price, or positive slippage.  All trades are executed at Equinix Data centres in LD4 London, and trading servers are connected with Tier 1 banks that provide liquidity via its proprietary aggregator, Quotix. 

Traders can choose between four different platforms – MT4, MT5, cTrader, and the FxPro platform, and there is an account type associated with each platform.  The minimum deposit is 100 USD on all accounts, and traders can access leverage of up to 200:1.  While spreads are relatively wide on its MT4 and MT5 accounts compared to other brokers at 1.61 pips (EUR/USD), spreads tighten significantly on its cTrader Account averaging at 0.31 pips in exchange for a commission of 4.5 USD per trade. 

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts South African Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB.

FXTM – Best FCA-Regulated Broker for Beginners

An FCA-regulated broker, FXTM is the best broker for beginner traders.  Its world-class education section is available for free in 22 languages, and customer service is available 24/7 allowing traders to get set up on weekends or holidays.  The education section is divided into several components and is available in multiple formats including Forex Trading Guides, ebooks, educational videos, articles, Forex Trading Seminars, and Webinars.  The market analysis section is also comprehensive and is updated regularly by Forex experts. 

FXTM offers three account options that cater to both experienced and beginner traders alike.  With a low minimum deposit requirement of 50 USD, beginner traders can start trading on the Micro Account.  Leverage is up to 2000:1, but spreads are wider than the other account options, starting at 1.50 pips on the EUR/USD.  Spreads tighten significantly on its Advantage Account, at 0 pips on the EUR/USD in exchange for a commission of 4 USD per trade – though the minimum deposit is 500 USD.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
Cons
  • Expensive withdrawals
AlertAccepts South African Clients. Average spread EUR/USD 1.50 pips on trading account with lowest minimum deposit. Max leverage Flexible. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.

IronFX – ECN Broker with the Most FX Pairs

IronFX is an FCA-regulated ECN broker offering trading on multiple assets, including commodities, metals, indices, futures, shares, and over 80 Forex pairs.  It also offers a variety of account and execution choices, allowing traders to decide on the spread/commission structure that best suits their strategy. 

Minimum deposits start at 50 USD on its commission-free Standard Account, but spreads are extremely wide, at 2.2 pips on the EUR/USD.  Spreads tighten significantly on the Live Zero Fixed Spread Account, down to 0 pips in exchange for a high commission of 18 USD round turn per trade.  Traders can access leverage of up to 1000:1 on the instant execution accounts, and up to 200:1 on the market execution accounts.  All accounts have access to IronFx’s wide range of currency pairs. 

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts South African Clients. Average spread EUR/USD 0.2 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. Only MT4 platform supported. IronFX is regulated by CySEC, FCA, ASIC, and the FSCA - FSP:45276.

Hotforex – Best Analysis App

Hotforex is an ECN/STP broker regulated by multiple authorities including the FCA.  It offers full support for both the MT4 and MT5 trading platforms in addition to a number of trading tools, including Autochartist, VPS Hosting Services, and its proprietary HF App.  The HF App allows traders to deposit and withdraw funds, apply technical indicators, copytrade, and create watchlists.

Additionally it features several analysis tools, including Daily Market Analysis from its expert analysts, Trading Positions, a unique market indicator providing information on how traders are reacting to currency and commodity movements, and a Traders’ Board, with information on currency movers and volumes traded.   Other useful tools include a Live Quotes feature, Trading Calculators, and an Economic Calendar. 

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts South African Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

Admirals – Best MetaTrader Platform Support

An FCA-regulated STP broker, Admirals is renowned for its wide range of tradeable instruments and excellent MetaTrader platform support.  Admirals offers five live trading accounts on both the Metatrader 4 and Metatrader 5 platforms.  It also created a customised plug-in, the MetaTrader Supreme Edition, which provides insights from a third-party provider, Trading Central, including pattern recognition and technical analysis directly to the platforms.  MetaTrader Supreme also features the Global Opinion toolset, which harnesses the power of news sentiment on a global scale, by detecting subtle, but significant changes in the undercurrents of the financial markets. 

Admiral Markets offers both MT4 and MT5 market execution accounts suitable for beginners and more experienced traders, with minimum deposit requirements of 100 USD on all accounts, tight spreads starting at 0.5 pips on the EUR/USD, and charges a low commission of 1.8 – 3 USD per lot traded. 

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
Cons
  • Expensive withdrawals
AlertAccepts South African Clients. Average spread EUR/USD 0.50 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Admirals is regulated by the FCA, ASIC, CySEC, and the JSC.

XTB – Best Proprietary Platform

XTB is an FCA-regulated STP broker offering trading on a single live market execution account with no minimum deposit requirements, leverage of up to 500:1, and a choice of over 1500 instruments.  Following a recent decision to move away from MT4, XTB now only provides trading on its award-winning proprietary platform – xStation 5. 

xStation5 offers many of the same advanced trading features found on MT4, but it introduces XTB sentiment data directly into the platform, allowing traders to view the percentage of clients trading long and short, and on which instruments.  It also offers powerful charting tools, one-click trading, real-time performance statistics, and a trader’s calculator.  In addition, XTB’s mobile application connects seamlessly to the xStation 5 desktop version.  

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts South African Clients. Average spread EUR/USD 0.50 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, FCA, the DFSA, the FSCA, and the IFSC

Capital Index – Best MT4 Supported Broker

Founded in 2014, Capital Index is an FCA-regulated ECN/STP broker offering trading on Forex, commodities, and indices.  Although Capital Index only offers support for the MT4 platform, it provides high-quality execution and support which defines its services.  Furthermore, as an STP broker, there is no dealing desk intervention, removing any potential of conflict of interest. 

MT4 is an industry-leading platform that allows for flexible and convenient trading along with various order types, trading from the chart, 9 different time frames including tick charts, trading signals, algorithmic trading (EAs), and over 50 indicators and analytical objects.  Capital Index offers MT4 as a desktop program for Windows, and via mobile phone or tablet on Android or iOS.      

Pros
  • Tight spreads
  • Fast and free withdrawals
  • Wide range of assets
Cons
  • Limited platform choice
  • Limited education
  • No swap-free account option
AlertAccepts South African Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. Capital Index is regulated by the FCA, CySEC & the SCB.

Markets.com – Most Instruments to Trade

Markets.com is an FCA-regulated market maker broker, and a constituent of Playtech, a FTSE 250 listed company offering trading and investing on over 2,200 instruments on its multi-asset platform.  Instruments include over 2000 global shares, 67 currency pairs, 41 global indices, 27 commodities (including everything from gold and copper to wheat, cotton, and heating oil), 60 ETFs, 7 cryptocurrencies, and 4 government bonds.   

Trading is offered on Markets.com’s award-winning proprietary app, Marketsx.  An advanced multi-asset trading platform, Marketsx is packed full of features for both Android and iOS, providing a seamless trading experience. On the platform traders can access a range of fundamental, technical and sentiment-based trading tools and expert analysis, in addition to in-depth charting and comparison tools.  It is also optimised for lightning-fast execution. 

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • High minimum deposit
AlertAccepts South African Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5 & Marketsx platforms supported. MarketsX is regulated by the FCA, CySEC, ASIC, and the BVI FSC.

Why Trade with an FCA Regulated Forex Broker?

There are few genuinely strong regulators in the world; the Australian Securities and Investments Commission is one, the Cyprus Securities and Exchange Commission is another, and the UK’s Financial Conduct Authority (FCA) is probably the leading member of this group.

London, and the UK in general, is recognised globally for being a strong, reputable financial centre and so it stands to reason that the UK’s financial regulator also has a reputation for reliability and strength.

The FCA oversees all British firms and individuals offering financial services and applies one of the world’s strictest regulatory environments. This is also the case for Forex brokers operating in the country, with the FCA being very active in enforcing compliance with the rules and regulations governing CFD products and consumer protection.

The FCA has a long-standing reputation for guaranteeing trader security and dealing harshly with bad brokers. We will talk about the FCA’s broader role in ensuring a safe environment in more detail below, but first, let’s look at the current benefits of trading with an FCA regulated broker.

The FCA’s Role In Forex Trading

FCA-regulated Forex brokers are governed by rules that enhanced trust through enforcing market discipline, and adjust provider behaviour to prevent harm from happening to customers, and assisting when things go wrong.

The FCA’s role in Forex trading is to oversee the activities of the Forex brokers, to ensure compliance with rules that are designed to protect end-users and the overall economy.

A Forex broker that is regulated by the FCA is required to consider the interest of their customers and treat them fairly. Also, the FCA requires that information is shared with customers in a way that is easy to understand, fair and not misleading.

The mission of the FCA.

The Financial Conduct Authority (FCA) is the UK’s financial regulatory organisation. It replaced the Financial Services Authority in 2012, which had been compromised during the financial crash when it was revealed that flaws in the organisation had led to poor regulation. The FCA is more powerful and consumer-focused than the FSA was, which is good news for Forex traders as they are very well protected under the new regime. 

The mission of the FCA is to regulate financial services through a framework of directives, and enforcement mechanisms.  The board of the FCA reports to the Financial Services Ombudsman who can bring information to the attention of parliament, and the industry through a series of publications.

What consumers can expect from the FCA

In principle, a consumer should expect to get protection from the regulation and the enforcement of rules of the FCA. The framework is designed to help protect those who may have a lesser understanding of the financial markets, from those who have a better understanding of them.

This protection includes helping Forex brokers set up rules for how to handle complaints and correct any issues.

The FCA’s main purpose beyond the regulation of financial organisations is to provide customers with reliable information. Their website maintains a warning list, which is a list of organisations that are potentially seeking to defraud customers, as well as provide information on the regulated entities and the products they offer.

The customer centre is available weekdays from 8 am to 6 pm, and half-day Saturday from 9 am to 1 pm, which gives potential traders access to knowledgable financial specialists who can help answer questions, or take note of a complaint or report a scam.

All FCA Regulated Brokers

These are all the FCA regulated brokers we have reviewed. They are ordered by overall score, placing the best ranked broker at the top of the list.

Scroll for more detailsPreviousNext
Broker
Overall Rating
Min. Deposit
FCA License
Regulators
Platforms
Cost of Trading
EURUSD (Best)
GBPUSD (Best)
USDJPY (Best)
Trading Commission
No. of FX Pairs
Compare
4.69 /5
Read Review
USD 250
195355
L2 Dealer
ProRealTime
USD 6
0.6 pips
0.9 pips
0.7 pips
Fees Included in Spread
80
4.68 /5
Read Review
USD 20
793714
Capital.com
USD 6
0.6 pips
0.8 pips
0.7 pips
Fees Included in Spread
137
4.61 /5
Read Review
USD 5
684312
USD 6.90
0.1 pips
0.6 pips
0.3 pips
From 7 USD / lot - Razor Account
60
4.49 /5
Read Review
ZAR 70
801701
USD 10
0.1 pips
0.5 pips
0.3 pips
6 USD / lot - Zero Account
53
4.48 /5
Read Review
USD 100
717270
USD 4
0.0 pips
0.0 pips
0.0 pips
4 USD / lot - Pro Account
62
4.34 /5
Read Review
USD 5
509746
USD 12
0.0 pips
0.1 pips
0.1 pips
7 USD / lot - PRO account
70
4.33 /5
Read Review
USD 10
600475
USD 15
0.1 pips
0.3 pips
0.1 pips
4 USD / ECN Accounts
62
4.30 /5
Read Review
ZAR 1000
525164
Cloud Trade
USD 6
0.6 pips
0.8 pips
1.0 pips
Fees Included in Spread
32
4.25 /5
Read Review
USD 0
7110087
USD 10
0.1 pips
0.1 pips
0.1 pips
4 USD / lot
45
4.25 /5
Read Review
USD 5
586541
USD 7
0.1 pips
0.4 pips
0.1 pips
6 USD / Lot
74
4.25 /5
Read Review
USD 5
705428
USD 16
0.6 pips
0.6 pips
0.0 pips
7 USD / lot - XM Zero Account
57
4.24 /5
Read Review
USD 25
595450
MT Supreme
USD 5
0.7 pips
1.0 pips
0.9 pips
1.8 - 3 USD per lot
50
4.24 /5
Read Review
USD 100
509956
FxProEdge
USD 14
1.9 pips
2.4 pips
1.6 pips
9 USD / lot
70
4.18 /5
Read Review
USD 100
609970
USD 20
2.0 pips
2.0 pips
2.0 pips
Fees Included in Spread
50
4.18 /5
Read Review
USD 100
186171
USD 12
0.2 pips
0.8 pips
0.6 pips
8 USD / lot - Raw Account
70
4.18 /5
Read Review
USD 5
629628
ThinkTrader
USD 12
0.0 pips
0.0 pips
0.0 pips
7 USD / lot - ThinkZero Account
46
4.14 /5
Read Review
USD 5
522157
xStation5
USD 5
0.8 pips
2.0 pips
1.4 pips
Fees Included in Spread
48
4.13 /5
Read Review
USD 50
217689
NinjaTrader
USD 13
1.3 pips
1.8 pips
1.4 pips
5 USD / lot
40
4.09 /5
Read Review
ZAR 1500
509909
Plus500
USD 8
0 pips
0 pips
0 pips
Fees Included in Spread
70
4.07 /5
Read Review
GBP 100
124721
ETX
USD 6
0.6 pips
0.9 pips
0.9 pips
Fees Included in Spread
62
4.00 /5
Read Review
USD 1000
562170
AdvancedTrader
USD 17
1.7 pips
2.0 pips
1.6 pips
Fees Included in Spread
130
3.78 /5
Read Review
USD 200
590299
USD 14
0.0 pips
0.5 pips
0.4 pips
On ECN Accounts
40
3.74 /5
Read Review
USD 50
585561
USD 11
0.2 pips
0.4 pips
0.2 pips
Zero Accounts
83
3.67 /5
Read Review
USD 10
190941
Spreadex
USD 6
0.6 pips
0.9 pips
1.0 pips
Fees Included in Spread
63
3.57 /5
Read Review
USD 10
609146
trading212
USD 100
0 pips
0 pips
0 pips
Fees Included in Spread
222
3.52 /5
Read Review
USD 500
586466
USD 7
0.2 pips
0.8 pips
0.3 pips
€/$5 per 1 lot
40
3.47 /5
Read Review
USD 5000
725804
USD 6.50
0.3 pips
1.3 pips
0.4 pips
3.5 USD / lot
35
3.42 /5
Read Review
USD 100
738538
Sirix
USD 19
3.0 pips
3.0 pips
3.0 pips
Fees Included in Spread
55

Key achievements of the FCA

The FCA achievements taking into consideration their short history are significant. Since 2013, when the FCA started regulating the UK financial industry, London has become more acknowledged as a major global financial centre.

Before the FCA being set up, there was no mechanism in the UK to keep the retail investor safe from companies that promoted complicated financial products that have a high-risk financial impact on the consumer.

The immediate achievement of the FCA the development of the requirements for financial organisations designed to protect the consumer, and a set of policies to help those who have already been harmed get easy access to a remedy.

The FCA is also transforming attitudes of the companies and those who work in the financial sector in the UK. This change has meant for fairer products, marketing tactics, and the development of a more customer-centric approach.

In changing the way companies operate internally and how they work with clients to remedy issues they create, the FCA has accomplishment has made the financial sector in the UK and the companies that are regulated by it, much safer for the average retail Forex trader.

The history of the FCA

Commenced in December 2012 with the passing of the Financial Services Act of 2012, the FCA was founded in April 2013 to replace the Financial Services Authority (FSA) that had been in place since 2001.

The FSA acted in an arbitrator role and had a broader mandate to oversee the entire financial system. When the FCA was created, it became responsible for the policing of the UK financial activities and the banking system. At the same time that the FCA was founded, sister agencies of the Bank of England’s Financial Policy Committee and the Prudential Regulation Authority which take responsibility for other financial sectors.

The global reputation of the FCA

The FCA is internationally recognised as one of the most trusted and objective regulatory services. It is a traditional organisation, and the framework which governs was created in 2013 to manage the current-day marketplace.  This activity has indirectly impacted many millions of UK households and has set a standard for other similar organizations worldwide.

FCA Structure

The FCA board is responsible for the overall framework implementation – which includes oversight of 6 committees which report into it, and the appointment of the Chief Executive to execute on the strategy set by the board.

The committee structure gives insights into the risks the FCA sees in the market, and how they work together in a system of self-regulation and gradual adaptation to prevent against new threats.

Risk & Strategy Committee evaluates the risks that are posed by the financial organisations on the market and are tasked to find strategies to mitigate those risks from being passed on to the consumers.

The Audit Committee monitors the effectiveness of the policies and the strategies used by the FCA.

The Regulatory Decisions Committee is the committee that takes actions against organisations that violate the rules. This committee acts on tips from the public and information from the investigators on the audit committee.

The Oversight Committee then works with the board of the FCA to manage their relationship with the parliamentary appointed Financial Services Ombudsman who is the UK’s official expert in sorting out problems with financial services. This relationship is valuable as this brings information to the government so that laws can be written, and government oversight is present.

Remuneration Committee is a committee that oversees a transparent process for how executives at the FCA are paid. This process ensures fair treatment of all staff and also respects that the FCA is a publicly funded organisation.

Similar to the Remuneration Committee, the Nominations Committee, acts as an internal mechanism to ensure the integrity of skills on the board so that the mandate of the FCA continues to be acted on effectively.

These committees, working with and feeding off each other, create a robust self-regulated system of rule-setting, auditing, enforcement and accountability to the people of the UK.

Summary

The FCA is a highly-valuable protective component of the UK financial services system that has been put in place to protect consumers with little financial knowledge from organisations with more knowledge selling them complex and risky financial products.

Any organisation that is regulated by the FCA is mandated to treat the customer fairly, and in the absence of a customer directive, make the decision that best suits the interest of the customer.

An FCA-regulated organisation takes responsibility for the accuracy and transparency of the information they promote and maintain discipline in their internal processes that are designed to protect themselves and their clients.

A Forex broker that is regulated by the FCA will expect their advice and support to be available in helping set up internal processes to protect and remedy issues that should arise in their business.

Overall, an FCA-regulated broker can be trusted to protect your funds, never communicate misleadingly, and has the client’s best interest in mind when doing business selling clients financial products and services.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal.

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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