FxBrokerReviews.org – The FCA is a significant international regulatory body that issues licences and supervises brokerage businesses with headquarters in the UK. Based on our independent research and user comments, you will find the top FCA-regulated Forex brokers on this page. During our investigation, we examined the brokers’ dependability, product quality, and security.
When we are planning to invest our savings it is important to make sure that we invest it in the right place where our money will be safe and secure. This article deals with all the related topics to be known and also a list of the most complete FCA regulated brokers list in 2022.
Wondering what exactly is FCA?
The Financial Conduct Authority (FCA), which oversees the financial services sector in the UK, is in charge of ensuring that the country’s financial markets operate smoothly. For people, businesses, and the economy as a whole, the organisation seeks to ensure honest and fair marketplaces. The Authority achieves this by fostering competition, defending the financial markets, and defending consumers. The Treasury and Parliament of the United Kingdom have jurisdiction over the FCA.
Also read: The Best Trading and Investment Platforms in The UK in 2022
Want to know more about FCA?
Here is all that you need to know.
To achieve its strategic purpose, the Financial Conduct Authority (FCA) has three operational goals: safeguarding consumer interests, preserving and enhancing the integrity of the British financial system, and fostering healthy competition among financial services providers. The FCA was founded on April 1, 2013, and it took over the Financial Services Authority’s responsibilities for conduct and pertinent prudential regulation. The Financial Services and Markets Act of 2000 established the legislative goals of the FCA, which the Financial Services Act of 2012 altered. To ensure that the financial industry manages and limits risks more effectively in the wake of the financial crisis of 2008 to 2009, the Act of 2012, which significantly altered how financial services firms are regulated in the United Kingdom, was enacted.
Authority powers of financial conduct
The FCA has broad authority to carry out its mission, including the ability to make rules and conduct investigations and enforcement actions. Since the FCA is an independent organisation without government backing, it must have the authority to increase fees. As a result, the FCA levies fees on approved businesses that engage in activities that are governed by the FCA and other organisations, such as recognised stock exchanges.
What are the functions of the Financial Conduct Authority?
The FCA website states that the organisation controls the behaviour of 59,000 financial services companies and financial markets in the UK. For people, companies of all sizes, and the economy as a whole, honest and fair markets are the desired outcome. The Authority achieves this by fostering competition, defending the financial markets, and defending consumers. The British Parliament and Treasury are in charge of the FCA.
Also read: Best Regulated Broker List UK 2022
Wondering about the financing of the Financial Conduct Authority?
The FCA is an independent government agency that levies fees on the businesses it oversees. The majority of the cash needed by the FCA to fulfil its statutory obligations is provided through periodic fees levied against businesses. These fees are determined by several variables, including the scope and type of regulated activities carried out by a firm as well as the FCA’s regulatory expenses.
What is the function of FCA?
For individuals, businesses, and the economy as a whole, the FCA’s main goal is to ensure that financial markets operate honestly, fairly, and effectively. This is accomplished by:
- Controlling the behaviour of almost 51,000 enterprises.
- Carefully monitoring 49,000 businesses.
- Establishing precise requirements for almost 18,000 businesses.
How does FCA protect the clients?
The FCA wants consumers to have faith that the businesses it controls are giving them quality goods and services.
The Financial Services Act of 2012 specifies the following three goals for the FCA to do this:
- Consumer protection: The FCA ensures an adequate level of consumer protection.
- Financial markets are protected, and the UK financial system’s integrity is improved by the FCA.
- Encourage competition: In the interests of consumers, the FCA encourages efficient competition.
Firms must prove they meet several standards before the FCA gives authorization. Following their authorization, the FCA monitors these businesses to ensure they continue to adhere to a set of norms and regulations. The FCA has several enforcement options available if businesses and people fail to adhere to these requirements.
Wondering what the FCA authorisation means?
Businesses must demonstrate that they are ready, willing, and organised to comply with the rules, procedures, and standards of the regulatory system when asking for authorization, which can take anywhere between six and twelve months.
This indicates that the company and those in charge of it are capable of making wise decisions about how to manage it and are responsible for their actions.
They have to be:
- Willing to cooperate with the FCA to fulfil its commitments.
- Willing to comprehend and perform their regulatory. responsibilities in an open, honest, and proactive manner.
- Sufficiently organised to engage in the activity for which they have applied for regulation.
How does the FCA regulate business?
Financial operations must be governed by the FCA by rules imposed under the Financial Services and Markets Act (FSMA) 2000. Unless they are excluded, every company (enterprise, not-for-profit, or sole proprietor) engaging in a regulated activity needs to be authorised or registered by the FCA.
Before the FCA permits applicants to operate in the market, they must fulfil several standards. They examine their business strategies, risks, budgets, available resources, systems, and controls, as well as whether key personnel possess the training and expertise required to carry out their tasks successfully.
Businesses must adhere to a rigid set of basic requirements after being authorised and regulated, as well as the laws and standards specific to their market, and they must send regular reports to the FCA proving this.
Wondering what is FCA register?
Always verify that the company or individual you are working with is on the FCA register. All businesses and people engaged in FCA-regulated activity are listed here. To know what they are governed to do and your protections when dealing with them, you can check the register.
Best FCA Regulated Forex Brokers 2022
Here is a list of FCA-regulated Forex brokers whom you can trust.
- Exness
- XTB
- NAGA
- Activ Traders
- Tickmill
- Plus 500
- CMC market
- IG
- Capital.com
- Forex.com
EXNESS
The Exness Group, whose services are the subject of this assessment, was established in 2008 and holds licences from the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Financial Services Authority (FSA) of the Seychelles. More than 120,000 traders are active within the club, and its website includes critical performance statistics.
Exness provides users with five main trading accounts via which they can trade on a broad range of asset classes, including Forex and CFDs on Crypto, Metals, Energies, Stocks, and Indices. Raw Spread, Pro, and Zero Accounts are professional accounts with account leverage of up to 1:2000 on MT4 and infinite leverage on MT5. The Pro Account has no trading commissions, while the Raw Spread and Zero Accounts have a 3.5 USD commission per lot, per side. Both Standard and Standard Cent are commission-free standard accounts. Additionally offered are demo accounts and Islamic swap-free accounts.
PROS
- There is no commission for trading.
- 24/7 English and Chinese client service.
- A wide variety of Forex trading pairs.
CONS
- Governing offshore.
- There are only a few US stocks available.
XTB
XTB was established in 2002 and has its main office in Warsaw, Poland. The International Financial Services Commission in Belize, the Cyprus Securities and Exchange Commission, the Komisja Nadzoru Finansowego in Poland, and the Comisión Nacional del Mercado de Valores in Spain are just a few of the organisations that have authorised and regulated the XTB Group’s entities in various jurisdictions.
The broker offers two main trading accounts called Standard and Pro in XTB UK, as well as Islamic accounts, which have a maximum leverage of 1:500 on accounts opened with XTB International, a Belize-based company. For accounts created in other countries, this will change. On the Standard Account, users can trade on 1,500+ CFD instruments, including those for Forex, Indices, Commodities, Stocks, ETFs, and Cryptocurrencies, with no commission.
PROS
- Numerous laws, including the IFSC, FCA, and CySEC.
- 1,500+ trading instruments available, spanning many asset types.
- Web-based, proprietary xStation 5 trading platform with several features.
- A wide variety of resources for learning and study.
- There is no commission for trading.
CONS
- Only withdrawals by bank wire.
- Fees for e-Wallet deposits.
Also read: XTB Broker Review 2022
NAGA
NAGA Markets is a broker situated in Limassol, Cyprus, and was established in 2009. NAGA Markets, which is governed by CySEC, provides trading in more than 950 instruments, including FX and CFDs on equities, indices, cryptocurrencies, and commodities. Customers have access to a proprietary web-based interface, a mobile app, and the third-party platform MetaTrader 4/5. The NAGA Group AG, a German FinTech business that is listed on the Frankfurt Stock Exchange, uses the trademark NAGA (XETRA: N4G). NAGA had more than 1 million users who had registered by March 2021.
PROS
- Good sources for education.
- Platform options for trading.
- An early copy trader.
- A wide variety of trading tools.
- CySEC is governed.
- A Personal Account Manager is given to each customer.
- Both genuine stock trading and stock CFD trading are available.
CONS
- Redraw charges.
- The NAGA web app does not support trailing stop-loss orders or one-click trading.
- Low levels of client protection with the offshore entity.
Also review: NAGA Review 2022: A Legit broker or A Scam?
ACTIV TRADERS
ActivTrades, a well-known FX and CFD broker based in London, was established in 2001. Access to currency trading and CFDs on commodities, indices, and stocks is available through ActivTrades. Both their proprietary ActivTrader software and MetaTrader can be used to access markets.
PROS
- Favourable spreads.
- Excellent clientele service.
- The welcoming platform for users.
- Accounts are protected at every global organisation for up to $1 million.
- Quick deposits and withdrawals.
- Exclusive MetaTrader add-ons.
CONS
- High minimum balance for an account.
- The variety of tradable instruments is not as broad as it is for CFD market pioneers.
- Inactivity fee.
Also read: ActivTrades Broker Review 2022
TICKMILL
Tickmill was established in 2014 and is governed by the Seychelles Financial Services Authority, the Cyprus Securities and Exchange Commission, and the UK Financial Conduct Authority.
The broker offers three main trading accounts called the Pro Account, Classic Account, and VIP Account, which include more than 80 CFD instruments to trade on, including Forex, Indices, Commodities, and Bonds. Additionally, they provide Islamic swap-free accounts and demo trading accounts.
PROS
- Several licences and rules.
- Available are trading accounts without commissions.
- Competitive spreads and overnight swap charges.
- Impressive selection of research and analytical tools for traders.
CONS
- Not any stocks left.
- MetaTrader 5 is not available.
Also read: Tickmill Broker Review 2022
PLUS 500
For ten years, Plus500 has operated as a brokerage. They brag about having 317,000 customers from throughout the globe. Four separate nations, including Australia, the UK, and Cyprus, are appropriately governed. The trading systems are easy to use, quick, and safe. Trading can be done on a variety of platforms that work with different hardware and operating systems.
There are no educational resources available, which is a major drawback. Aside from the economic calendar, no other study materials or technical analyses are offered.
PROS
- More than 2,000 CFD products, including CFDs on cryptocurrencies, are available for trading on international markets.
- Offers orders with guaranteed stop losses.
- Several international laws and regulations. The FCA, ASIC, CySEC, and MAS all regulate.
- The web platform offers more than 100 chart indicators.
CONS
- Headlines and content are lacking.
- Lack of client education regarding traders.
- No phone support is available.
CMC MARKETS
With over 30 years of expertise and regulation by the UK’s Financial Conduct Authority (FCA), CMC Markets is a multi-asset class spread betting and CFD broker that provides segregated funds and a high level of protection and safety. On the London Stock Exchange, there is a publicly traded corporation called The CMC Group.
Spread betting, CFDs, and corporate accounts are the three types of trading accounts that the broker offers. With spread betting enabling commission-free trading and CFD and Corporate accounts offering commission-based trading on Shares only, each account allows users to trade on more than 9,000+ trading instruments, including Indices, Forex, Cryptocurrencies, Commodities, Shares, and Treasuries.
PROS
- A corporation that is publicly traded on the London Stock Exchange and is regulated by FCA UK.
- More than 9,000 trading instruments across various asset sectors.
- Next-generation customised trading platform with a wealth of features.
CONS
- For new traders using the Next Generation advanced trading platform, there is a steep learning curve.
IG
The best forex brokers in the UK, IG Marketplaces, provide the best forex trading accounts for UK citizens. These accounts come with low fees, a range of tradable markets, and rules from 17 national regulatory agencies, including the FCA. We rank IG as the top broker overall in 2022 because of its exceptional expertise and fantastic FX app assistance.
PROS
- Top trading platforms for mobile and web for exotic currencies and FCA-licensed brokers.
- Provides consumers with a variety of withdrawal requests and deposit options, including negative balance protection.
- It provides access to and use of MT4, MT5, and other FX trading platforms as well as many great training materials for CFD traders.
CONS
- Portfolio of restricted products.
- Since so many brokers are skilled in it, customer service needs to be enhanced.
CAPITAL.COM
The FX market efficiency is increased and commission-free trading is made possible by Capital.com, which was developed by a team of software developers and bankers. Traders only have to pay the overnight fees and buy-sell spread if they employ leverage.
PROS
- Low forex CFD fees and actual equities that are commission-free.
- This online broker, which is governed by the FCA, offers amazing account opening experiences and excellent trading conditions.
- Excellent customer service is available via email, chat, and mobile apps.
CONS
- Fees for index CFDs and stock exchanges are high.
- There are only three options: CFD, genuine stock, and spread betting.
FOREX.COM
A reliable Forex trading platform broker, Forex.com provides the best CFD brokers in the UK as well as a first-rate trading environment. It provides a staggering assortment of customised trading platforms, a vast selection of markets, and UK rules in addition to restricted access to MetaTrader.
PROS
- Provides a variety of currency pairs, including the EUR/USD.
- There are many different research tools for technical indicators.
- Low forex fees, excellent customer service, and support for the MT4 and MT5 platforms.
CONS
- The desktop platform might use some work.
- Stock CFD spreads & fees are significant.
Final Thoughts
Now that we know the FCA (formerly FSA) is a significant international regulatory organisation that issues licences and safeguards UK traders, you may choose one of these FCA-regulated forex brokers and begin trading with confidence. As already mentioned, you are going to invest the money that you have earned shedding sweats and working hard it should not be something like a line drawn over the river, it should be safe, secure and also profitable to you and hence always invest and trade only on FCA regulated platforms. If you are a beginner and you are in search of a broker who is FCA regulated you may use one among the above said like Exness, NAGA etc.
