The Financial Conduct Authority (FCA) is the United Kingdom’s financial regulatory body responsible for overseeing forex brokers and ensuring fair and transparent trading practices. FCA regulation is widely regarded as one of the most stringent in the industry, providing robust investor protection.
The FCA is one of the most trusted forex regulatory authorities, ensuring trader protection and market integrity. When choosing a forex broker, always prioritize those regulated by the FCA to ensure safety and compliance with the highest standards.
- 30:1 for major currency pairs
- 20:1 for non-major currency pairs, gold, and major indices
- 10:1 for commodities (excluding gold)
- 5:1 for individual equities
- 2:1 for cryptocurrencies
The FCA plays a crucial role in:
- Enforcing strict compliance standards for forex brokers.
- Protecting retail traders from fraud and unfair trading practices.
- Ensuring financial stability within the forex market.
- Regulating leverage limits and negative balance protection.
To confirm whether a broker is FCA-regulated, follow these steps:
- Visit the FCA Register.
- Enter the broker’s name or FCA license number.
- Check for active authorization status and any restrictions.
- Ensure the broker’s website matches the one listed in the FCA database.
FCA-regulated brokers must adhere to:
- Minimum Capital Requirements: Brokers must maintain a minimum operating capital to prevent insolvency.
- Client Fund Protection: Segregation of client funds in top-tier banks.
- Negative Balance Protection: Ensuring traders cannot lose more than their initial investment.
- Leverage Limits: FCA enforces leverage restrictions (e.g., 30:1 for major forex pairs).
- Banning of Deposit Bonuses: FCA prohibits misleading marketing incentives like deposit bonuses.
Advantages
- High regulatory standards and strict enforcement.
Compensation scheme up to £85,000 (FSCS Protection).
Strong transparency and investor protection.
Negative balance protection for retail traders.
Limitations
- Strict leverage limits may reduce profit potential.
No allowance for offshore brokers under FCA jurisdiction.
Country
United Kingdom
Established
2013
Contact
+44 20 7066 1000
Complaint bodies
Financial Conduct Authority (FCA) Financial Ombudsman Service (UK)
Hotline
+44 800 111 6768
Complaint email
Last updated on: March 26, 2025