FxBrokerReviews.org – Choosing the right forex broker can be a little intimidating for new traders. Owing to the popularity of the forex market there has been a rise in the number of trading platforms in the market, all claiming to be the best forex broker in the financial market. However, while choosing a broker one should not be lured by promises of high returns and profits. Traders must look for regulation, security, and asset offerings also while selecting a broker.
A regulated broker is the one whose activities are monitored by a governing authority to prevent any cases of fraud or mistrading activities. In the UK the main authority that governs all forex brokers is the FCA – financial conduct authority. It is the primary body that supervises customer protection and ensures the safety of traders, investors, and others from scams, and unfair trading conditions.
In this guide, we have reviewed the list of FCA regulated brokers on various parameters. Also, we have provided a list of Cysec regulated broker list to help you choose a safe and regulated broker.
Also read: Best Forex Broker Review Website 2022
Best forex broker: List of the best-regulated brokers in the UK 2022
1. AvaTrade: low-cost best broker forex
Regulated by: CBI, ASIC, PFSA, BVIFSC, FSA, SAFSCA, CySEC, ADGM, FRSA, ISA
AvaTrade is a good forex broker for traders who are budget conscious as the minimum deposit amount is only $100. The trading platform has become a popular choice amongst traders in the UK due to its user-friendly and modern design platform packed with upgraded educational and research tools.
The platform is looked after by various authorities including the FCA and CySEC. The trading platform supports third-party software like MetaTrader 4, MetaTrader 5, and WebTrader. It can be easily accessed through Mac, windows Ios, and Android. AvaTrade has low trading costs and does not charge any inactivity or withdrawal fees.
Also read: AvaTrade Broker Review 2022
2. E-toro: Best broker forex for beginners
Regulated by: ASIC, CySec, FCA, and AFSL
E-toro has undoubtedly secured its place as the most popular trading platform in the UK. It is a completely free trading platform and offers low-cost trading. With access to a wide range of assets and educational resources, the platform is a huge hit amongst beginners.
The trading platform is regulated by the FCA and accepts all the known methods of payment for withdrawal and deposit. It accepts PayPal, Sofort, Netteller, and Bank transfers as well as credit and debit cards. Furthermore, the platform has its copy trading feature and offers over 49 currency pairs to trade from the fx list.
3. CMC Markets: best CFD trading platform with a low minimum deposit
Regulated by: ASIC, FCA, FMA, and MAS
CMC Markets located in the UK, comes under the list of one of the biggest forex broker in the world as terms of financial instruments. It offers traders CFD trading, forex, and spread betting. Furthermore, the trading platform lets you in on over 300 currency pairs.
CMC Markets has extensive research tools that you are free to use and analyze the changes in the markets. The broker also charges a relatively low spread on forex and has zero minimum deposit requirement. The platform supports MetaTrader 4 and is available as a Mobile Trading App as well as a desktop version.
4. XTB: the best broker in the list of FCA regulated brokers
Regulated by: FCA, CySEC, FSC, and CNMV in Spain, KNF
XTB founded in Poland, offers an extensive range of assets to trade from. The trading platform offers low forex CFD fees and supports commission-free stocks and ETFs. Moreover, the platform has a rather easy process to open an account and saves a lot of time.
XTB does not charge any withdrawal fees and has low trading fees. The platform offers excellent customer service and supports a multilingual website and customer service. It also supports third-party software like the MT4.
Also read: XTB Broker Review 2022
5. NAGA: the best broker in the CySEC regulated broker list
Regulated by: CySEC, FCA
NAGA founded in 2015 is the best forex broker if you are looking for social networking as well as financial inclusion under the same platform. It is registered under European legislation and is recognized by the Cyprus laws.
The platform offers traders multiple instruments such as Forex, Stocks, Indices, Stock CFDs, Cryptocurrencies, Commodities, Futures, and even Exchange Traded Funds. Also, it provides more than 500 instruments on the Fx list where traders can invest without commissions. NAGA allows its traders the feature of copy trading and provides The Meta Trader4 and 5 platforms.
Also read: How secure is the NAGA trading platform?
FX list of the Best FCA Regulated Brokers in the UK 2022
- AVAtrade – low-cost best broker forex
- E-toro – Best broker forex for beginners
- CMC Markets – best CFD trading platform with low minimum deposit
- XTB – best broker in the list of FCA regulated brokers
- NAGA – best broker in the CySEC regulated broker list
What is forex regulation?
The forex market is an OTC market (over the counter ) and is unregulated. Trading in the market is decentralized i.e. there is no physical place where all the transactions take place. Due to this nature of the market , all broker forex have to be regulated and registered under a governing authority. Regulation makes sure that all brokers are involved in fair trading and protects all transactions of the traders.
However, it is important to note that forex regulation only keeps a check on the functioning of the forex brokers. It does not protect against the changes and risks in the market. To keep a check on the fraudulent activities in the forex markets, many countries have regulated their forex trading activities through regulatory agencies such as the Financial Conduct Authority in the UK (FCA), the National Futures Association in the U.S., The Cyprus Securities and Exchange Commission in the European Market and more. Within their respective jurisdictions, these regulatory bodies act as a watchdog for traders dealing with forex brokers.
FX list of major regulatory bodies in 2022
The regulatory bodies depend on the country and its jurisdiction. Read below to learn about the major authorities that look after some of the biggest forex broker in the world:
1. Australia
- Australian Securities and Investment Commission (ASIC)
2. United Kingdom
- FCA- Financial conduct authority
3. The United States
- Financial Industry Regulatory Authority, Inc.
- New York Stock Exchange
- Office of the Comptroller of the Currency
- Securities and Exchanges Commission
- Commodities and Futures Trading Commission
- National Futures Association
4. Japan
- Financial Services Agency,
- Japan Investor Protection Fund
- The Financial Futures Association of Japan
- Japan Securities Dealers Association
- Kanto Local Finance Bureau
5. Cyprus
- Cyprus Securities Exchange Commission (CySEC)
6. Denmark
- Danish FSA
7. France
- Banque de France Autorité de Contrôle Prudentiel (ACP)
8. Germany
- Bundeszentrale für Finanzdienstleistungsaufsicht (Bafin)
9. Hong Kong SAR
- Securities and Futures Commission
10. Switzerland:
- Groupement Suisse des Conseils en Gestion Indépendants
- Association Romande des intermediares financiers
- Swiss Federal Department of Finance
- Organisme d’autorégulation fondé par le GSCGI
- Commission fédérale des banques
- Swiss Financial Market Supervisory Authority (FINMA)
All countries that are a part of the European Union have a common framework for regulation under the Markets in Financial Instruments Directive (MiFID)
What is the FCA ( Financial Conduct Authority) ?
The Financial Conduct Authority (FCA) regulates all financial activities to ensure that all forex brokers are treating their customers fairly and they operate safely. FCA is funded by almost 50,000 firms that it regulates. The main objective of the firm is to provide customer protection and safeguard traders from scams, and unfair trading conditions.
The FCA also sets rules and regulations that all broker forex must follow. The organization even has the power to decide which brokers are allowed to trade and which are not. In case any broker is suspected of breaking the rules, the FCA has the power to withdraw the firm or stop investments.
If your broker is not listed with the FCA then go through the reviews of the platform carefully and do not invest unless you are sure about the platform. Nonetheless, we wouldn’t recommend you invest in an unregulated platform. Check out the list of FCA regulated brokers mentioned above.
What is the Cyprus Securities and Exchange Commission (CySEC)?
The Cyprus Securities and Exchange Commission is a forex regulation body that monitors almost all the biggest forex broker in the market. It was founded in 2001 and became a subsidiary of MiFID, a European regulatory organization in 2004. All brokers that are regulated by the CySEC are permitted to carry out their business activities in the European region.
The regulatory body provides effective supervision and ensures trade protection. It controls investment services and transactions in transferable securities. CySEC is also responsible to prevent money laundering and wrongdoings in the market.
Traders can rely on brokers that are regulated by CySEC as it monitors brokerage and guarantees protection and safety for investors and traders. Read below to find out a CySEC regulated broker list:
CySEC regulated broker list 2022
- Pepperstone – overall best forex broker 2022
- NAGA – best broker of forex for copy trading
- Plus 500 – multiple regulated platforms
- TickMill – best platform for MT4 and MT5
- E-toro – best trading platform for beginners with low trading fees
- Saxo Banks – the best trading platform for CFDs
Why should you choose a regulated forex broker?
As mentioned above the forex market is decentralized and has no regulation, the chances of forex scams are on a rise. Many forex brokers may try to lure new traders into a scam by giving false promises of high returns and profits. These scammers are unregulated brokers who have no intent to help you with trading.
Therefore, it is very important to choose a forex broker that is regulated by a know authority. Apart from the need to be licensed, regulated forex brokers should also submit regular audits to ensure that they meet the regulatory requirements. This also helps to establish trust between the traders and the broker.
How to choose the right regulated forex broker?
- Before you invest in any trading platform do thorough research about the broker and check its ratings and reviews. You can check reviews of the best forex trading platforms on Forex Broker Reviews.
- Read through all the fine prints and documents before opening an account with any forex broker.
- Do not disclose your credit card or payment details to any forex broker unless you are sure about it.
- Ask the broker if they use software like MT4, MT5, LIBERTEX, QUIK, TRANSAQ, CQG, or ROX.
- Consider setting up a demo account first, once you are satisfied with the broker then you can proceed with your further trades.
- Make sure there are no complaints regarding the withdrawal of funds. If there are you should check the reviews and ask users about their experience.
Also read: 10 Best MT5 Forex Broker in 2022
How to identify between a regulated broker and a forex scam?
A forex scam is very common these days. Unregulated brokers often try to trick people to invest in foreign trading schemes that are fraudulent and not accepted by the forex market. These kinds of brokers often make promises that are irrelevant to the market scenario. They might promise you high returns and profits, guarantee you that there are no risks involved and even urge you to make lifetime investments. Once they receive the payment, these scammers disappear or refuse to make any contact with you.
Therefore, we have provided you with certain guidelines that will help you to distinguish between a forex scammer and a regulated broker.
| Regulated broker | Forex scammer |
|---|---|
| Under a registered regulator whose license number is in the regulator database | Will have no license number or registration details |
| Will have the facility to work on trading platforms like MT4 and MT5 | No facility of any third party trading software |
| Offers a large number of assets and trading tools | Will have a limited number of trading tools |
| Will have positive reviews and feedback by traders | You will find complaints and negative feedback by traders |
Final Thoughts
Investing with a regulated broker undoubtedly has various benefits. The regulating body provides transparency in the trade and also offers security against any kind of fraud. While various forex brokers claim to be regulated, do your research well and read all reviews before you start trading.
We have researched deeply into the very best forex brokers that are regulated and can save you from getting trapped in a forex scam. Here is our list of the best-regulated Forex brokers in the UK in 2022.
