The Financial Conduct Authority (FCA) is a UK regulatory body; in other words, it is a regulatory agency funded by regulated companies, including forex brokers. Obtaining a broker license in the UK is in accordance with FCA regulatory requirements. The regulator’s direct task is to issue and regulate financial companies in the UK. This regulator also collaborates with the Bank of England (BOE) and the Prudential Regulation Authority (PRA). Forex brokers also control the activities of the FCA.
FCA is fully responsible for protecting customers from unscrupulous Forex brokers. All regulated brokers are required to abide by the FCA guidelines by producing split accounts for customer and company funds. If you want to obtain a broker license in the UK, the FCA requirement is a working capital of at least £1 million, based on the number of traders currently registered on the platform and deposits placed with the company.
How to find a bona fide broker?
All regulated Forex brokers obtain work approvals from the FCA. Approval from the FCA – from the Office of Financial Control and Regulation – is the standard for all operators who wish to obtain a forex broker license in the UK. According to FCA requirements, all brokers must submit periodic financial statements of their investment holdings and annual audit reports.
When you are looking for a regulated FX broker, you can cross-check the list of brokers/FCA-list of regulated brokers to make sure they offer honest deals.
Features of the FCA Brokers
This organization has the right to impose fines on violators, prohibit the advertising of financial services, and use many other sanctions to successfully suppress the illegal activities of regulated brokers and other market participants. Due to this, in the forex market, FCA brokers are deservedly considered a synonym for confidence and reliability in the world of traders. The strategic policy of this service is aimed at relevant market functioning. Its main task is to ensure the safety of consumers of financial services.
Regulated by the organization in question, companies guarantee the high quality of the services provided. Having an FCA certificate can safely be called an important competitive advantage for any intermediary.
FCA brokers are an attractive option for profitable and quiet trading in the forex market. With their help, you will get the opportunity to concentrate on trading fully. You are guaranteed confidence in the absence of any illegal actions on the part of the brokerage company. Reliable FCA brokers are another plus for your work.
How FCA Helps Reduce Currency Risk Trading
The Financial Conduct Authority (FCA) is a controlling organization that acts in the best interests of consumers. FCA works to combat financial fraud and abuse in the Forex marketplace.
All brokers regulated by the FCA comply with the strict rules of this regulatory authority in the UK. In the event of any consumer abuse or fraud, the FCA will investigate. If the companies act irresponsibly, the FCA has the right to revoke the license and apply harsh penalties for the company. That is why it is so essential to choose one of the licensed FCA Forex brokers, and not an offshore unregulated Forex broker.
If you want to get a Forex license in the UK, it is necessary to maintain segregated accounts, customer money separately from the broker’s money. This is a necessary guarantee that the client’s money will not be affected when claims are made against the company, or in the event of liquidation, bankruptcy, or fraud.
Regulation on Cryptocurrency Pairs
At the end of 2017, the FCA issued a warning about the risks inherent in cryptocurrency trading on Forex. Given that the most liquid market in the world – the Forex market – is unstable, traders should be aware of the possible risks. An official warning issued by the FCA was published on November 14, 2017, and it is making great efforts to emphasize the risk-taking nature of speculative products such as cryptocurrency pairs.
CFDs are currently fully regulated by the FCA. The discussion continues on the rules for trading cryptocurrency pairs in the currency arena, and the British Parliament is faced with the task of giving further guidance in this regard.
How to terminate the agreement and receive money from a regulated broker
As soon as you want to terminate the contract with the regulated broker agent FCA, you can simply do this by logging into your account and contacting the account manager. Let them know that you want to close your account and transfer the remaining balance to your payment processing option.
In the event of a problem, you are protected against losses of up to £50,000 through the Financial Services Compensation Scheme (FSCS). FCA does not intervene directly between the broker and the client but has the full right to impose fines or participate if necessary.
