Fca uk regulated forex brokers

Forex regulation and regulated forex brokers.

Currently forex brokers are usually better regulated in UK, US, Switzerland, Australia.

FCA UK (FCA UK) regulated Forex brokers.

Firm Status in FCA, Authorised and EEA Authorised.

EEA Authorised - A financial services firm authorised in another European Economic Area (EEA) state that has a ‘passport’ to offer certain products or services in the UK and other EEA countries. The EEA includes the EU states, plus Iceland, Norway and Liechtenstein. These firms are regulated in their home country and must meet standards which have been agreed across all EEA countries.

The services or products an EEA authorised firm can offer in the UK will be detailed in the ‘Passports’ section of their record on the Financial Services Register.

Authorised - A firm that has been given permission by the FCA to carry out regulated activities. If a financial services firm is based in a foreign country outside the EEA it can still operate in the UK but will need to be authorised by FCA and will appear on the Financial Services Register as ‘Authorised’.

Firm Status: EEA Authorised Forex Brokers List.

ACFX, AFX Capital, AvaTrade, Blackwell Global (CY), Bulbrokers, Deltastock, Finexo, Forex Time (FXTM), FX Global Markets (FXGM), FxNet, FXCC, iFOREX, Markets, MAYZUS, Saxo Bank, Traders Trust, Trading212, Windsor Brokers, XGLOBAL Markets, XM,

Firm Status: Authorised Brokers List.

Abshire-Smith, ActivTrades, Atom8, Bulls And Bears Forex UK, City Credit Capital, City Index, CMC Markets UK, CMS Forex UK, Darwinex, DF Markets, FOREX UK, FXCM, Fxopen UK, FxPro UK, GAIN Capital, GKFX, Hantec Markets, Hirose Financial UK, HY Markets UK, ICAP, ICM Capital, IG Markets, IKON Markets, Interactive Brokers (UK) Ltd, InterTrader, LMAX, London Capital Group (LCG), MB Trading, OANDA, One Financial Markets, Plus500 UK, RBS – Royal Bank of Scotland, SVSFX, Tradenext, Valbury Capital, Valutrades, Vantage FX UK, XTB UK.

FCA Registered Brokers Comparison.

0.9 – 1.6 – Standard.

0.1 – (>) Level 2 trading.

About FSA and FCA, PRA.

The Financial Services Authority (FSA) was a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It has now become two separate regulatory authorities, The Financial Conduct Authority (FCA, fca. org. uk) and the Prudential Regulation Authority at (PRA, bankofengland. co. uk).

The FCA regulates financial firms providing services to consumers and maintains the integrity of the UK’s financial markets. It focuses on the regulation of conduct by both retail and wholesale financial services firms. The FCA is structured as a company limited by guarantee.

The PRA is structured as a limited company wholly owned by the Bank of England and is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. It sets standards and supervises financial institutions at the level of the individual firm.

Requirements for FCA regulated brokers.

Ensure & monitor the quality of the bank in which clients funds will be held. The bank must be approved by FCA. Keep clients' funds separate from company funds , clients' funds can never be treated and used as company assets including the situation when the company becomes insolvent. Submit financial reports to the FCA regularly and undergo annual audit.

The Financial Services Compensation Scheme (FSCS)

Even if a broker is insolvent you may still be able to claim compensation through the FSCS.

The FSCS(fscs. org. uk/) is an independent body and a fund of last resort for customers of authorised financial services firms. Generally, it covers claims against firms who are insolvent and unable to pay claims against themselves. The FSCS is funded by levies on FCA-authorised firms. Their costs are made up of management expenses and compensation payments. The service is free to individual consumers.

FCA Register-Protect yourself from unauthorised forex brokers.

Beware of cloned firms (fraudsters pretending to be from a firm authorised by FCA). If you deal with an unauthorised firm you will not be covered by the Financial Ombudsman Service (FOS) or Financial Services Compensation Scheme (FSCS) if things go wrong.

The Register has information on forex brokers that are regulated by FCA. Firm status must be ‘Authorised' or ‘EEA Authorised'(not ‘registered').

If a forex broker does not appear on the Register but claims it does, contact Consumer Helpline of FCA on 0800 111 6768.

Unauthorised firms and individuals to avoid :

NFA & CFTC US regulated forex brokers.

NFA registered Forex brokers Comparison (Brokers for US Traders)

Note: We don’t include IBs(introducing brokers) in the table.

About NFA & CFTC.

National Futures Association (NFA) is the self-regulatory organization(non-profit) for the U. S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency (forex) and OTC derivatives (swaps). NFA's mission is to safeguard market integrity and protect investors.

Commodity Futures Trading Commission (CFTC) is the US government agency that protect market participants and the public from fraud, manipulation, abusive practices and systemic risk related to derivatives – both futures and swaps.

NFA's activities are overseen by CFTC.

NFA membership is mandatory for all forex brokers(including introducing brokers) in US.

NFA regulated brokers:

Must follow strict rules set by NFA to ensures the safety of clients' assets. Must have net capital of no less than $15 000 000 to guarantee client's positions. This minimum raises to $20 000 000 starting from May 19th, 2009. Must report their account balances to NFA weekly. Must have comprehensive yearly audits.

NFA register.

Background Affiliation Status Information Center (BASIC) nfa. futures. org/basicnet/

Some NFA/CFTC rules.

Non-US brokers or brokers that are not registered in NFA are not allowed to accept US citizens as clients.(They can accept non-US citizens that live in US) Maximum leverage of a US forex broker can offer should be 50:1 on major currencies and 20:1 on minors since October 18th, 2010. US Forex brokers are not allowed to offer leveraged commodities and precious metal trading (including Gold & Silver) to retail clients. So they can only offer those on a 1:1 non-leveraged basis(requires substantially more margin).(Since July 15th, 2011, enforced by CFTC)

US Forex brokers with high leverage.

US brokers usually offer a higher leverage to international clients with non-US accounts. They usually have international branches.

Swiss Regulated forex brokers.

Swiss Bank Directive 3a mandates all brokers in Switzerland to obtain a banking license from the Swiss Financial Market Supervisory Authority (FINMA). Swiss forex brokers are required to sign the Swiss Banks and Securities Dealers agreement, which protects all customer deposits of up to CHF 100,000. Forex brokers from Switzerland are very popular among the wealthy traders.

Swiss regulated brokers list.

0.5 – 1 – Standard.

1.5 – 2.8 – Standard.

1 – 3 – Mini & Standard.

Other Forex Regulatory Bodies.

International organizations:

Financial Markets Association (ACI)

United Kingdom:

UK Financial Services Authority (FCA UK)

The Financial Conduct Authority (FCA)

The Prudential Regulation Authority (PRA)

Financial Services Compensation Fund (FSCS)

United States:

Commodities and Futures Trading Commission (CFTC)

Financial Industry Regulatory Authority (FINRA)

National Futures Association (NFA)

New York Stock Exchange (NYSE)

Office of the Comptroller of the Currency (OCC)

US Securities and Exchanges Commission (U. S. SEC)

Chicago Board of Trade (CBOT)

Securities Investor Protection Corporation (SIPC)

Australian Securities and Investment Commission (ASIC)

Switzerland:

Association Romande des Intermediares Financiers (ARIF)

Swiss Bankers Association (SBA)

Swiss Federal Banking Commission (SFBC)

Swiss Federal Department of Finance (SFDF)

Swiss Federal Finance Administration (SFFA)

Swiss Financial Market Supervisory Authority (FINMA)

Swiss National Bank (SNB)

Geneva Chamber of Commerce (CCIG)

Organisme d'Autoregulation des Gerants de Patrimoine (OAR-G)

Cyprus Securities and Exchange Commission (CySEC)

Autorite des marches financiers (AMF)

Banque de France.

Credit Institutions and Investment Firms Committee (CECEI)

Federal Financial Supervisory Authority (BaFin)

British Columbia Securities Commission (BCSC)

Canadian Investor Protection Fund (CIPF)

Financial Transactions and Reports Analysis Center of Canada (FINTRAC)

Investment Industry Regulatory Organization of Canada (IIROC)

Ontario Securities Commission (OSC)

Ombudsman of Banking Services and Investments (OBSI)

Financial Services Agency of Japan (FSA Japan)

Japan Securities Dealers Association (JSDA)

Japan Investor Protection Fund (JIPF)

Tokyo Commodity Exchange (TOCOM)

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Forex Brokers Guide.

Your capital is at risk. Trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade forex or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.

The Top 10 Forex Brokers Regulated In The UK (FXCM, GCAP)

In January 2015, forex broker Alpari UK applied for insolvency after the Swiss National Bank's surprise decision to abandon the peg against the euro. The event put the spotlight on forex brokers and their regulation, especially in the United Kingdom. In this article, we'll review the leading forex brokers in the United Kingdom and the basics of how they are regulated.

With daily trading volume of over $5 trillion a day, the foreign exchange market, also called forex or FX, is the world's largest market. The size and deep liquidity of the forex market, along with 24-hour trading 5 days a week, make it an appealing choice for traders. ( For a step-by-step guide on everything you need to know on currency exchange see Forex Walkthrough).

However, unlike stocks and commodities, forex trading has no central exchange or clearing house. The lack of transparency in the FX market has left it vulnerable to numerous instances of malpractice and manipulation. In the United Kingdom, the Financial Conduct Authority (FCA) acts as a watchdog to ensure fair and ethical business conduct. FCA-regulated forex brokers must adhere to a number of industry standards. Of particular importance is the FCA requirement that firms keep client funds separate from company funds. These segregated deposits cannot be used as company assets if the brokerage firm becomes insolvent.

The January of 2015 event involving the Swiss National Bank (SNB) underscores the importance of using a broker that is regulated by the FCA. Totally unexpected events, sometime referred to as black swan events, can happen at any time and cause chaos. The financial markets were thrown into turmoil by the Swiss decision and a number of forex brokers suffered severe losses with some going bankrupt. Fortunately for the customers of Alpari UK, the firm was regulated by the FCA.

The following ten FCA-regulated forex brokers are listed in no particular order based on factors including financial stability, execution quality and trading platforms available. In choosing among them one might consider preferences such as markets available, execution software, and the competitiveness of spreads. ( Related 5 Tips For Selecting a Forex Broker)

OANDA: The Canadian-based foreign exchange company offers competitive spreads, as low as 1.2 pips in EUR/USD. Along with their own fxTrade platform launched in 2001, Oanda offers MetaTrader 4. Interactive Brokers: Greenwich, Conn.-based Interactive Brokers offer direct access to interbank forex quotes and operate using an Electronic Communication Network (ECN) market structure. City Index: Established in the UK in 1983, City Index offers forex trading, along with CFD's and spread betting. The MetaTrader 4 platform is available with added tools and features. FOREX: Owned by parent company GAIN Capital (NYSE: GCAP). Operating since 2001, FOREX was a first mover in bringing currency markets to the retail trader. FXCM: Exchange listed FXCM (NYSE: FXCM) offers a no dealing desk model along with competitive spreads. The firm offers trading in a wide variety of currencies including the Chinese yuan. FxPro: Founded in 2006, London-based FXPro is an online broker offering forex trading along with CFD's. MetaTrader 4 and cTrader trading platforms are available. IG Markets: Founded in 1974 as a spread betting business under the name IG Index. The firm offers trading in pairs including EUR/USD, AUD/USD, and USD/JPY with spreads as low as 0.8 pips. CMS Forex: The proprietary VT Trader platform offered by CMS Forex allows you to trade directly from the chart and provides multiple technical indicators. ActivTrades: Established in 2001, ActiveTrades offers forex trading in mini and micro lots, a diverse product offering, and competitive spreads. HY Markets: In business for 30 years, HY Markets provides multiple trading platforms and a wide variety of trading instruments. HY Markets a division of the Henyep Group, a global conglomerate with a presence in 20 countries.

Among the leading FCA-regulated forex brokers in the UK, the majority are actually based abroad. In many cases, this means that they are also regulated by other bodies such as the National Futures Association (NFA) in the United States. While the retail forex industry continues to develop and improve, traders must remain vigilant in scrutinizing where they place their funds for investment.

FCA UK Regulated Forex Brokers.

The Financial Conduct Authority (FCA) is an independent financial regulatory body in the UK that regulates and oversees financial companies operating in the UK. The FCA, which was formerly known as the Financial Services Authority (FSA), was introduced in the year 2013 when the UK Government deemed FSA to be inadequate for dealing with financial irregularities during the financial crisis of 2007-08.

FCA is an independent organization that does not run on Government funds but is accountable to both the treasury as well as the parliament. The operating costs are recovered from membership fees and through other channels; therefore, the FCA is oriented towards maintaining a fair code of conduct for all firms that provide financial services to consumers in the UK.

How Does FCA Regulation Work?

FCA is a powerful authority that has been granted significant powers to regulate the operating standards of all financial companies operating out of the UK. It has the power to revoke licenses, oversee marketing and promotional materials, audit company financials, and ensure that the consumers get a reasonable deal while dealing with financial companies. FCA also possess the power to suspend any firms for up to a year for any alleged fraudulent activities, and can even suspend licenses indefinitely if they deem fit. Therefore, firms regulated under the FCA are expected to work in favour of their clients, and not against them.

Are FCA Regulated Brokers Reliable?

All trading brokerage houses operating in the UK are required by law to become regulated and licensed by the FCA. Therefore, FCA forex brokers are considered to be highly reliable due to the various laws outlined in the code of conduct that is prescribed by the Financial Services Act of 2012. The FCA is free to amend to these laws from time to time to safeguard the interests of the consumer.

Top Forex Brokers.

Top Forex Brokers.

FCA Regulated Forex Brokers.

FCA Regulated Forex Brokers.

How Is FCA Beneficial To A Consumer?

FCA is the governing authority that oversees the functioning of a financial company and how it interacts with the end consumer. Their main priority is to protect consumers against all types of fraud and financial crimes. FCA guarantees that the market integrity is kept intact by auditing the conduct of all registered organizations and ensuring that the financial system in the UK is kept healthy and successful.

FCA also promotes healthy competition in the market by allowing companies to attract consumers in the interest of fair and honest services. FCA is a financial watchdog that wants the consumers to benefit from all the strong competition as a result of an open and transparent market. At the same time, FCA also reinforces its stringent rules by carefully analyzing the actions of its members and by ensuring that none of the companies take advantages of any loopholes in the system.

Does FCA Provide Mediation Or A Complaint Resolution Service?

In short, FCA is only a regulatory agency, and it will not provide any mediation service or help in resolving a matter between consumers and FCA regulated brokers. FCA is a financial regulatory agency for all financial firms, including banks, trading brokers, mortgage lenders, insurance brokers, financial advisers, and even consumer credit firms. Therefore, it becomes virtually impossible for the FCA to investigate into individual claims, as the FCA regulates the conduct of more than 56,000 financial companies in the UK.

So, I have A Complaint against an FCA Forex Broker, What Should I Do?

All FCA Forex brokers are required by the FCA to have a sound complaint resolution department that should look into all consumer complaints. In the event of a consumer getting an unfair deal, the next logical step would be to contact the Financial Ombudsman Service with your claim. Ultimately, if that fails, the last resort would be to take the matter to the court.

However, most top rated FCA regulated Forex brokers usually tend to resolve consumer complaints in an effective manner, which is why the FCA is very effective against fraudulent activities. Brokers affiliated with the FCA stand to lose their regulation or licensing if the firm is found to be in violation of the rules stipulated by the FCA. The FCA also has the authority to seek hefty fines in penalties and refuse to provide licenses to such companies from operating in the UK.

How To Stay Protected From Scams & Find A Good Broker.

FCA regulation is indeed a good indicator of the reliability of a broker, and it is essential for all UK consumers as well as traders from around the world to choose a broker that is regulated by an efficient regulatory body such as the FCA. However, there are instances where brokers or other types of financial companies attract clients by advertising false claims of being regulated by the FCA by using bogus license numbers and misleading links.

If you wish to ascertain the authenticity of a regulation, all you need to do is check the official FCA website to ensure that the licensing information provided by the company matches with the information provided on the FCA website. If you can’t still ensure the authenticity, take a look at the FCA Warning List to see if the company you are dealing with is listed there. You should also prevent companies that indulge in forced marketing such as cold calls, as FCA is clearly against such types of marketing.

It would also be a good idea to perform a thorough research and seek the help of certified and independent financial advisors to see if the company you are dealing with has a good record. Ultimately, try to stay away from brokers or firms that cannot provide genuine FCA licensing information upon request.

Forex Brokers by regulation authority.

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Best FCA Regulated Forex Brokers 2017.

The FCA (former FSA) is an important global regulatory agency which gives out licenses and keeps an eye on UK based brokerage firms. On this page you will find the best FCA regulated Forex Brokers based upon our independent research and through feedback from our users. In the course of our research we look at security, product quality and reliability of these brokers.

Introduction to FCA (Former FSA)

The Financial Conduct Authority or FCA is the regulator for the financial services industry in the UK. Currently, it has jurisdiction over 56,000 financial services firms in the country. Its primary goal is to ensure the health of the UK’s financial industry. To achieve this goal, the FCA work towards protecting the right and interests of consumers, to encourage healthy competition in the financial industry and enhanced the integrity if the financial system.

The FCA has always acted in the interest of the general public and this is why it has become one of the preferred regulatory agencies around the world. Forex traders know that with the FCA looking after their interests, their money will be safe with any FCA regulated forex brokers.

FCA Forex brokers enjoy a high trust rating among forex traders from around the world as they are operating under the transparency guidelines issued by the FCA.

FCA Responsibilities.

For any market to operate efficiently, there must be fairness and honesty. Consumers must know what they are getting when they purchase or consume a product. The same goes for the financial market. Investors must be able to invest in the financial markets with confidence to ensure their stability. They must be reassured that the money which they have invested will be safe and handled properly by the financial services providers.

Hence to ensure all financial service providers in the industry uphold their part of the agreement with the trader, most countries have established an independent regulatory body to safeguard the interest of consumers. In the UK, the FCA was established on 1 April 2013 for this very purpose after its predecessor, the Financial Services Authority failed miserably in its task in maintaining the integrity of the UK’s financial system during the global financial crisis in 2008. The FCA is an independent body which is self funded from the fees that it collects from the firms that are under its regulatory oversight. Nevertheless, it is still accountable to the UK’s Treasury department and to Parliament.

Empowered under the Financial Services and Markets Act 2000 and Financial Services Act 2012, the FCA is responsible regulating the conduct of financial services providers at both the retail and wholesale level. In addition, the infrastructure which supports these markets also comes under the jurisdiction of the FCA. The primary objective of the FCA is to ensure the smooth functioning of the financial industry and it does this by:

Securing a proper level of protection for consumers and investors To secure and boost the integrity of the financial markets as a whole To promote competition within the financial industry in the interests of consumers and investors.

Other responsibilities of the FCA include:

The supervision of authorized persons Monitoring compliance of regulatory requirements Carrying out enforcement actions.

In April 2014, the FCA also undertook the responsibility of regulating consumer credit industry, a role previously held by the Office of Fair Trading.

How FCA Regulation protects you.

The FCA possesses a wide range of powers and in many cases beyond those enjoyed by its predecessors, the FSA. Some of these extended powers include:

The power to create product intervention rules Preventing authorized persons from entering into some contracts which the FCA consider necessary to protect the interest of consumers or to further the competition objective.

Take note that the infringement of a product intervention rule imposed by the FCA could render an agreement being unenforceable against the relevant person and to the recovery of money paid or property transferred.

The FCA also has considerable say in how a financial services provider may market its financial products. It can place specific requirements on the products that the financial services provider must comply with. It also has the power to set a minimum standard which financial services providers are required to follow. Apart from the power to investigate companies and individuals, the FCA is also authorized to ban a product for as long as a year while it decides on whether to ban the product for an indefinite period.

The FCA work closely with a wide range of stakeholders both on a domestic level and international level in furthering its key objectives. Nevertheless, it takes a proportionate approach in maintaining regulatory oversight by focusing on areas which pose a higher risk to its primary objectives.

The UK’s financial industry contributes more than £65 billion in tax revenues for the UK economy. It also provides employment for more than 2 million people in the country. Given the fact that the financial industry, whether directly or indirectly, permeates into the lives of everyone in the UK, ensuring that the financial markets in the UK are able to function smoothly is a task which the FCA takes very seriously.

Guidelines for FCA Regulated Brokers.

In addition, the FCA requires all FCA forex brokers to maintain a minimum of £1 million in operating capital before it can operate in the UK. While this capital requirement is significantly lower than those imposed by the NFA in the U. S, it is still considerably higher than most EU states require their brokers to maintain. In addition, the level of compensation under the FCA is also higher at a maximum of £50,000.

To become a FCA forex broker, companies must first to undergo a rigorous application process before they can be issued a license to operate in the UK. Once issued a license to operate in the UK, forex brokers are still required to comply with all the strict regulatory requirements imposed by the FCA at all times. These include:

Maintaining segregated accounts Being a member of the UK’s compensation scheme.

Should a dispute arise between a trader and a FCA forex broker, traders are also able to use the services the financial ombudsman services to resolve the dispute.

To check whether a forex broker is truly regulated by the FCA, you can always check with the FCA database to verify the broker’s FCA license number. The database also contains detailed history about the broker which can help a trader in making a more informed decision regarding his broker’s selection.

Conclusion.

Now that we understand that the FCA (former FSA) is an important global regulatory agency which gives out licenses and protects the UK traders, you can go ahead and select one of these recommended FCA regulated forex brokers and start trading safely.