How To Find Licensed and Regulated Forex Brokers UK

Licensed and Regulated UK Forex BrokersLike any other company, a Forex brokerage firm needs to be licensed and regulated. Anyone starting a new business, in whichever sector, needs to pass through different authorities, get a license number and obey all the laws. The same applies to a Forex broker. A broker that is not licensed and regulated is not legit and therefore should not be doing business. Would you entrust your funds to a company that is not operating legally? Certainly not, and this is why before registering with any Forex broker in the UK, it’s imperative to find out if they are licensed and regulated by the right regulatory body. But how do you go about that?

Reasons for Trading with Regulated Forex Brokers UK

There are several reasons why you should trade only with a licensed and regulated broker in the UK. Perhaps the most important of all is the protection against the broker. The main role of financial regulatory bodies is to keep the dealings of Forex brokers with the traders as transparent and aboveboard as possible. These agencies also serve to protect the interests of individual Forex traders to make sure that they don’t suffer at the hands of the brokers.

The regulatory agencies also regularly review the books of the brokers to ensure that they are maintaining the minimum capital requirements. In cases of financial problems and customer complaints, these regulating bodies will often step in with the appropriate legal deterrents to resolve the disputes, assist in recovering traders’ funds and in extreme cases, shut down the fraudulent broker. If a broker is not regulated, traders will not be protected against such situations.

10 Best Forex and CFD Brokers Regulated By FCA U.K.

Broker Info Bonus Open Account
HYCM Forex broker Min Deposit: $100
Spread: From 0,2 Pips
Leverage: 1:200
Regulation: FCA UK (#186171), CySEC (#259/14)
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xm best forex broker Min Deposit: $5
Spread: From 0 Pips
Leverage: 500:1
Regulation: ASIC, CySEC, FCA (UK), IFSC Belize
“$30 Non-Deposit bonus, 50% +20% deposit bonus up to $5,000, Loyalty Program Bonus Visit Broker
exness forex broker review Min Deposit: $1
Spread: From 0 Pips
Leverage: 2000:1
Regulation: FCA UK, CySEC, FSP, BaFin, CRFIN
35% of the account Deposit Visit Broker
octafx forex broker review Min Deposit: $5
Spread: From 0.2 Pips
Leverage: 500:1
Regulation: FSA (Saint Vincent and the Grenadines), FCA UK (#679306)
50% Deposit Bonus Visit Broker
No Deposit Bonus Instaforex Broker Min Deposit: $1
Spread: Fixed Spread From 3 Pips
Leverage: Up to 1:1000
Regulation: CBR, CySEC and FFMS
30% Forex Deposit bonus Visit Broker
Pepperstone review best forex broker in Australia Min Deposit: $200
Spread: Starting 0 Pips
Leverage: 500:1
Regulation: ASIC Australia, FCA UK
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FXOpen ECN Broker Min Deposit: $300
Spread: floating, from 0 pips
Leverage: 500:1
Regulation: FCA UK reference number 579202
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ThinkMarkets Forex Broker regulated by ASIC and FCA UK Min Deposit: $250
Spread: as low as 0.1 pips
Leverage: up to 400:1
Regulation: ASIC Australia and FCA UK
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plus500 best forex broker review Min Deposit: €100
Spread: The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD)
Leverage: 1:294
Regulation: ASIC, CySEC, FCA (UK)
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TickMill best Forex broker review Min Deposit: $25
Spread: Starting 0 Pip
Leverage: 500:1
Regulation: FCA UK and FSA (Seychelles)
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How to Find Out if a Forex Broker is Licensed and Regulated in the UK

Having known the reasons for trading with a regulated broker UK, the next important thing is to find out which brokers are regulated ones and which ones are not.

The FCA (Financial Conduct Authority) is the official regulatory body tasked with the regulation of all financial services based in the UK. Formally known Financial Services Authority (FSA), FCA aims at maintaining the transparency and integrity of financial markets in the UK while protecting the interests of the traders.

According Best Forex Broker – FCA is mandated to intervene when FCA-regulated Forex brokers treat their clients unfairly or behave in a way that is a risk to the integrity of the financial market. It does not only regulate the brokers, but also investigates customers’ complaints, and enforces appropriate laws in regard to the broker infractions.

To find out if a UK Forex broker is regulated by FCA, follow the following steps:

  • Check the Broker’s Website

The first thing to do in order to check if a broker is regulated is to visit their website and look for registration details. These details are often found on “Home” or “About Us” page, or similar pages. Regulated Forex brokers are proud of these details and will try to make them as visible as possible. Therefore, if you are having troubles finding this information and there is no license number or the name of the regulatory body to be seen, this should be a red flag that the broker is not licensed and regulated. Regulated brokers strive for transparency and will ensure their registration details are in a visible spot on their website.

  • Google the License Number

If the website doesn’t have the license number, but the brokerage company claims it’s regulated, then next thing to do is to visit the FCA website and look for their name. Like many other regulatory agencies, the FCA has a register known as the Financial Services Register that’s accessible to the general public. The register can be found on their website and contains a list of all companies or individuals offering financial services that are regulated by the FCA. On this register, you’ll find different categories of firms such as authorised, Authorised applied to cancel, Authorised suspended, No longer authorized, etc. All FCA-authorised brokers are found in the “authorised” category. A broker may have a licensed number that is suspended for a certain period of time. You will be their names in the “Authorised suspended” category.

Remember that finding registration details on a broker’s website doesn’t mean they are regulated. The license can be a fake one or suspended. Go to FCA’s website and search for it, just to be safe.

In summary

There are so many Forex brokers today that it may be difficult to know which ones are doing legit business. Therefore, if you want to avoid any potential Forex scams and frauds, only opening an account with an appropriately licensed and regulated Forex broker UK makes a lot of sense.

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