Why Trade with an FCA-Regulated Forex Broker?
The FCA oversees all British firms, Forex brokers, and individuals offering financial services and applies one of the world’s strictest regulatory environments. The FCA also actively enforces compliance with the rules and regulations governing CFD products and consumer protection.
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 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.
What is the FCA’s Role in Forex Trading?
The FCA’s role in Forex trading is to oversee the activities of the Forex brokers to ensure compliance with rules designed to protect end-users and the overall economy.
FCA-regulated Forex brokers are governed by rules that enhanced trust through enforcing market discipline, adjusting provider behaviour to prevent harm from happening to customers, and assisting when things go wrong.
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.
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