Best Financial Conduct Authority (FCA) Regulated Brokers (UK)

UK consumers are being increasingly targeted by unauthorised forex trading and brokerage firms offering the chance to trade in foreign exchange, contracts for difference, binary options and other commodities.

Finding a reputable online broker is harder than it should be. The Financial Conduct Authority has been able to put in place a robust regulatory structure for the financial services industry and the UK financial markets.

FCA Responsibilities

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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. Empowered under the Financial Services and Markets Act and Financial Services Act , 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:. In April , the FCA also undertook the responsibility of regulating consumer credit industry, a role previously held by the Office of Fair Trading.

Some of these extended powers include:. 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. 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.

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. 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. Financial Conduct Authority F Let our tool do the hard work of finding your next broker. Try it Now Visit BrokerNotes. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors.

Trading cryptocurrencies is not supervised by any EU regulatory framework. Rankings are influenced by affiliate commissions. Here are some areas where London Capital Group scored highly in: Allows hedging 3 languages. Social Trading see alternatives Share Dealing. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.

Protection of consumers of financial products including traders who trade forex and other financial market products is carried out at three intervention points: For each registered entity, the FCA maintains the following records: Trading names and contact details of regulated entities.

The names and details of entities operating within and outside the UK without FCA authorisation, exemption or approval. Origins of the Financial Conduct Authority FCA From the period covering , the regulation of the entire financial services industry comprising banks, brokerages, credit unions and other financial service companies was carried out by the Financial Services Authority FSA.

The Financial Conduct Authority FCA , which would be responsible for the conduct of the 56, firms operating in the financial services industry in the UK and would also take over prudential regulation of 24, of these firms. The Prudential Regulation Authority, which would be responsible for the majority of prudential regulation. Regulating the marketing of financial products Regulation of payment systems Supervision of banks in the UK Maintaining the new set of rules set out in for independent financial advisers To be able to perform its conduct regulatory functions properly, the FCA allocated entities into two categories as follows: Fixed portfolio firms, which have a supervisor and are supervised on a proactive basis using a system of continuous assessment that is unique to each firm.

Each individual firm is given a programme of work which is evaluated at key governance areas during regulation. Flexible portfolio firms are usually supervised using a different set of regulatory algorithms.

Market-based assignments are used in conjunction with educational activity and other communication-based programmes to scan or any risks within the relevant sectors that these companies operate in. In other words, flexible portfolio firms are assessed collectively within the sector they operate and not individually. Three main pillars of approach are used by the FCA when it comes to conducting supervision of the 56, firms under its watch: For the biggest firms, a system of proactive supervision is used.

Scans and stress tests are performed to show if there are any signs of trouble before they have even emerged. Reactive supervision which is event-driven is also deployed. This means that the FCA may deploy certain measures to protect the market in response to the emergence of any overt or covert risks in any firm or entity. This is done on an entity-by-entity basis.

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