FCA Forex Brokers
The Financial Conduct Authority (FCA) is a regulatory authority based in the United Kingdom. It is a self-regulatory body independent of the UK government. Its source of finances is the fees that the members are charged in the financial services industry. FCA’s main responsibility is to manage financial firms, including Forex Brokers in the UK and safeguarding integrity in the financial markets. Its assignment includes both the wholesale and retail financial services companies. To get more information about the top FCA Forex brokers, go through the table below.
- Forex Brokers
- Binary Options Brokers
- CFD Trading Brokers
- MT4 Forex Brokers
- MT5 Forex Brokers
- Mobile Forex Brokers
- Spread Betting Brokers
- UK Forex Brokers
- Swiss Forex Brokers
- Australian Brokers
- PAMM Brokers
- ECN Brokers
- US Forex Brokers
- Cent Account Brokers
- Scalping Brokers
- Lowest spread Forex Brokers
- VPS Forex Brokers
- Segregated Accounts Brokers
- 5 digit Brokers
- Hedging Brokers
- Banks with Forex Traiding
|Company||#||Logo||Forex broker||Founded||Regulated||Reviews||Payment systems||Broker type(?)||Min. Deposit||Max.|
|Accepting US traders?||Account|
|Saxo Bank||4||Saxo Bank||1992||22|
|CMC Markets||6||CMC Markets||1989|
|Interactive Brokers||7||Interactive Brokers||1977||10|
|City Index||8||City Index||2001|
|Admiral Markets||17||Admiral Markets||2001|
|Hantec Markets||22||Hantec Markets||2009|
|ICM Capital||23||ICM Capital||2009|
|Octa FX||24||Octa FX||2011|
|Core Spreads||26||Core Spreads||2014|
|Land FX||28||Land FX||2013||11|
|PhillipCapital UK||29||PhillipCapital UK||1975|
|Capital Index||32||Capital Index||2014||3|
|GMG Markets||35||GMG Markets||2015|
|Infinox Capital||36||Infinox Capital||2009|
|Key to Markets||39||Key to Markets||2010||4|
History of FCA Forex Regulator
The Financial Conduct Authority came into existence after Financial Services of the UK was eliminated. That was on 19th December 2012, after the Financial Services Act 2012 was approved by the parliament which resulted in the establishment of a new regulatory system.
The act assigned the Bank of England with the role of ensuring macro and micro prudential regulations were articulated and financial stability was maintained. The Act also formulated a new regulatory framework that was inclusive of the Financial Policy Committee of the Bank of England, the Financial Conduct Authority and the Prudential Regulation Authority.
FCA has the authority to:
- Oversee the conduct of firms in relation to marketing practices of financial items
- Spell out the expected standards
- Stipulate requirements on items
- Scrutinize individuals and firms
- Give directives on either to adjust or withdraw misleading promotions
- Place interdiction on financial product
Why Forex brokers choose FCA
The Financial Conduct Authority (FCA) is one of the most reputable regulators worldwide. For this reason, most brokers intend to be licensed by FCA. The following are other reasons as to why FCA has over time been the regulator of choice.
- It has stringent rules. In as much as FCA is among the bodies regulated by the European Union, it is stricter than the other regulatory bodies. FCA has been able to place significant fines on firms that violate rules and work against the interests of the clients, as a result it has earned FCA regulated brokers the trust of traders.
- FCA covers Forex Brokers who have gone bankrupt. If at any instance a broker regulated by FCA goes bankrupt, a scheme known as the Financial Services Commission is able to cover a given amount for the clients.
- Since it is a self-regulatory and a non-profit organization, FCA does not use the taxpayers' funds for its activities.
- FCA’s self-governing nature allows it to work for rather than against a trader.
- FCA has many protocols to adhere to, this is in a bid to ascertain authenticity of brokers. This has made it earn the trust of investors
The application process for brokers
FCA regulated brokers have been able to enjoy the support given in the application process which may prove to be a bit tedious. Since the businesses are of peculiar nature, brokers are assisted with gaining knowledge on their business and how to go about the application. This includes recorded procedures and policies on compliance, compliance evaluation programme and a regulatory business plan. After being guided through the aforementioned, the brokers are guided through the process of submitting their applications to FCA and answering the queries that follow. As part of the application process, the brokers are also equipped with information relevant to the application. Such includes.
- What the firm will possibly face before, during and after the application process
- The parties that will be involved in handling the application
- The uniqueness of a business as per a particular client and their business specifics
- Duration of the authorization process, which is almost 2-3 months
FCA regulations on FX brokers
These are the regulatory practices that FCA perform.
- Educating firms on FCA enforcement proceedings
- Advising brokers on regulatory matters
- Ensuring fair treatment of customers
- Foster healthy competition and innovation
- Working hand in hand with brokers in order to identify potential risk and come up with ways to mitigate them
- Registering members
- Record keeping
- Accepting annual returns
- Ensuring that brokers give a wide range of investment items
- Ensuring that brokers give clients comprehensive market analysis that is unbiased
FCA Forex Brokers register
FCA regulated brokers are listed on a register. This is to ensure that brokers who say they are regulated by FCA actually live up to their claims. To ensure that you are working with a legitimate broker who has been authorized by FCA, the register would be an important tool. It also contains a lot of information about the brokers. The information includes:
- Contact details of a broker which includes the trading names
- Broker status, which spells out whether a broker is approved
- Names and details on brokers giving services in the UK and/or overseas without authorization
Scams associated with FCA regulated brokers
Binary options fraudsters
Basically, the trade is a matter of whether an event will take place or not. For instance, it is whether the price of an asset will shoot up or fail to. In the event that investor gets it right, there happens to be a return on their investment. The reverse is also true. If they get it wrong, their entire investment is lost.
Fraudsters in Binary options tend to promote their items on social media using websites that appear to be legitimate. Most of the fraudsters operate from abroad but often claim to be based in the UK and they have addresses that may lead you to fall for their trick. These fraudsters manipulate systems to compromise pay-outs and prices then eventually shut down client’s trading accounts and hold their money. Most of the fraudsters are usually characterized by a promise of high returns derived from binary options trading that appears to be too good to be true. They also have a tendency of pressurizing traders to make haste investments and making unusual contact.
Fake contact through emails, letters and the phone
Some fraudsters will contact you via mail, phone or letters claiming to be the Financial Conduct Authority or even impersonating FCA legitimate employees just to make themselves appear genuine. These fraudsters request for personal details that FCA would not ask. Such includes internet banking passwords and bank account details. Other details they may ask for are copies of payslips and/or your passport. Some claim that you are supposed to be given a certain sum of money and that you should give them your account details so that deposits may be made. However, the fraudsters use the same details to retrieve money from your account. Such is characterized by contact numbers from abroad, emails from Gmail and Hotmail accounts and grammatical errors in the cases of letters.
FCA regulated brokers
City Index is among the most established Forex brokers globally. It is also the oldest having been in operation for about 30 years, that is, from 1983, this just shows how much experience the broker has in the trade. City Index has over the time become a renowned broker, leading in online trade. It boasts over 235,000 accounts. The broker has offices globally transacting over $400 billion every month in the trade. City Index offers its clients competitive spreads and an access to several markets around the globe. The broker has received various awards for its Forex trading.
ETX capital was founded in 2002. It is a member of the London Stock Exchange. Check our ETX Capital review here. ETX Capital only offers one standard account that allows a minimum deposit of $100 and has no maximum trade. The firm gives tight spreads that range depending on the products. For instance, the spread on Forex range from 0.6 pips for the euro or US dollar. ETX Capital offers its clients two types of reliable and popular trading platforms, that is, MetaTrader 4 (MT4) and TraderPro. The platforms used are flexible and can be used on iPhones, iPads and Android devices. They have a user-friendly interface that makes the trading experience great for the clients. Also, it has been presented in 20 languages just to ensure no single person is left out. Its commissions are competitive. In addition, ETX Capital has made a point of educating the clients about the trade, something that has owed it its success. Withdrawals and deposits are easily made using online payment methods such as PayPal, credit cards and bank transfers. Customer support is 24/7 and offered in 20 languages.
FOREX.com was established in 1999. The broker has won awards including one by FX Street for best research and analysis in 2014 and 2015. It has two types of accounts, a standard and the Active trading account, that clients can choose from. Also, FOREX.com offers a demo account that is available to all types of traders. FOREX.com offers its clients educational material that equips them with the knowledge that is rather useful for the trade. The trading tools offered by FOREX.com are customizable to meet individual customer needs. The platforms used have user-friendly interfaces to heighten the client’s trading experience.
Abshire Smith is a broker that has made it its business to give high-level support to its clients. It offers tailor-made financial services to meet individual needs. Having been in the business for a significant period of time, Abshire-Smith has gathered extensive knowledge on the trade, giving the clients guarantee of a secure, safe and a well-regulated trading environment. The security of clients’ funds has been given priority.