In page navigation
- 1. Best FCA regulated forex brokers in 2023
- 2. Best FCA fx brokers overall for 2023
- 3. What are the best brokers regulated by FCA?
- 4. Top 10 FCA regulated brokers
- 5. What is an FCA regulated broker?
- 6. How do forex brokers regulated by FCA work?
- 7. How should I choose a broker regulated by FCA?
- 8. Should I use FCA regulated brokers?
- 9. Methodology: How did we choose the best FCA regulated brokers?
- 10. FAQs:
Best FCA regulated forex brokers in 2023
The United Kingdom’s FCA is among the most trusted financial regulators in the world and keeps an eye on brokerage firms operating within its jurisdiction. Using an FCA regulated broker is key if you want a safe investing experience. This handy guide picks the best FCA regulated forex brokers and explains how you can start using one immediately.
Best FCA fx brokers overall for 2023Copy link to section
What are the best brokers regulated by FCA?Copy link to section
If you’re ready to start investing, you can use any of the options below. Each one is an FCA regulated broker and has been selected by our investment experts. Click on any of the links to get started in just minutes, or read on to learn more about each.
77% of retail CFD accounts lose money.
Top 10 FCA regulated brokersCopy link to section
1. eToro. Best for beginners, copy-trading & demo-account
Pros & Cons
We love eToro because it’s an easy place to trade the currency markets. Forex can be intimidating, but eToro strips back the complexity to give you a platform where you can trade 50+ currencies at competitive prices and with up to 30x leverage.
As well as being a broker that offers lots of investor protection, eToro offers a very social trading experience. You can easily see how all the major and minor forex pairs are performing every day, track how investors feel about every one of those currencies, and copy other people’s trade suggestions from your desktop or the eToro app.
The fees: eToro charges a fee on currency CFD trades through the spread. Spreads are variable depending on the currency and start from 1 pip for EUR/USD trades, 1.5 pips for EUR/GBP, and 2 pips for GBP/USD. Overnight and weekend fees apply.
77% of retail CFD accounts lose money.
2. Capitality. Best for trading like a pro
Pros & Cons
We love Capitality because it gives regular investors the means to trade with pro data and tools. Capitality offers 2100+ financial instruments, including 80 currency pairs.
The Capitality web trading terminal gives you access to live market data, real time quotes, and super-fast trade execution, all without needing to download anything. There’s also a free economic calendar that lets you know when the big financial events happen so you can plan your trades accordingly.
The fees: Capitality charges its fees through the spread. Spreads start from 0.1 pips for major forex pairs but can be significantly higher for minor and exotic pairs.
What is an FCA regulated broker?Copy link to section
It’s a brokerage firm regulated by the Financial Conduct Authority (FCA). The FCA is the financial regulatory body in the United Kingdom and provides oversight to financial businesses. The FCA is independent and is known to be one of the most trustworthy regulators in the world.
The FCA has many roles, and maintaining fairness and stability among broker platforms is one of its main tasks. Making sure traders are protected from unscrupulous brokers and scams are also high on its list of priorities. Here is a brief rundown of the FCA rules for brokers in the UK:
- Negative balance protection. Brokers are required by law to provide Negative Balance Protection (NBP) to all of their clients. Retail traders can only lose what they initially deposited into their trading account. It’s a particularly important protection for traders that use high leverage forex brokers.
- Segregated client funds. The FCA requires all forex brokers regulated by it to hold clients’ funds in a separate bank account from that which is used for operational purposes. If the broker becomes insolvent, traders’ funds are secure.
- Regulations on marketing materials. To meet FCA regulations, brokers need to comply with strict rules surrounding marketing materials. Brokers cannot advertise things to entice traders unfairly.
- Instant processing of withdrawals. When a trader asks for a withdrawal, a broker must process it instantly. Previously, it was common practice for withdrawals to take days to process; however, the FCA has stopped this.
- Submit annual accounts. UK regulated brokers have to submit annual accounts to the FCA. Brokers need to hold a minimum of £1 million in operating cash which rises in line with their number of clients.
- Compensation scheme. The FCA has a compensation scheme called the financial services compensation scheme (FSCS). If a broker becomes insolvent, traders can claim up to £85,000 in compensation.
How do forex brokers regulated by FCA work?Copy link to section
Brokers regulated by FCA work almost identically to brokers regulated in other jurisdictions. However, there are some key differences between the FCA and other regulators.
Most notably, the FCA has a compensation scheme that protects investors up to £85,000 should a broker go bust. Leverage with an FCA regulated forex broker is also capped at 30:1 (higher for professionals). Any type of bonus, such as welcome or deposit bonuses, is prohibited, although the FCA is one of the few regulators in the world that allows spread betting.
How should I choose a broker regulated by FCA?Copy link to section
You need to consider a lot when choosing a FCA regulated broker. First and foremost, you’ll need to confirm it is legitimately regulated by visiting the FCA website and entering its licence number. Here’s a list of features you should consider before choosing UK regulated brokers.
- Fees. You will have to pay fees when using an FCA regulated broker. Fees can either be spread or commission, or both. In our reviews above, you can find a section on fees for each broker we have listed.
- Available markets. The FCA oversees the whole of the financial services industry in the UK and that includes all types of brokers. Many brokers offer more than one type of asset but some don’t. Make sure you check the markets you want to trade are available.
- Reliability. A reliable broker can save you a lot of time and money. Many financial markets are fast moving and a platform that crashes at the wrong time could be costly. You can find out how reliable UK regulated forex brokers are by reading customer reviews.
- Platform. There are several trading and investing platforms available and many brokers offer more than one. Some are more suited to a specific type of trading, for example, if you want to day trade, Metatrader 4 may be most suitable.
- Security. While the FCA provides stringent security to investors, brokers often offer additional protection. Using a broker with 2-factor authentication is a good option, as it adds an extra layer of protection to your account.
- Payment methods. Almost all FCA regulated brokers will allow you to deposit and withdraw money using a bank card. Some offer additional payment methods such as PayPal. You can check what is available before joining.
Should I use FCA regulated brokers?Copy link to section
Yes, especially if you are located in the United Kingdom. The Financial Conduct Authority is globally renowned as one of the strongest regulators. Broker’s who are FCA regulated need to pass stringent tests and compliance procedures before being granted licences. Passing these checks is no easy feat and only the best brokers are given licences.
Safety of funds is one of the top benefits to using an FCA regulated broker; you’re money is protected up to £85,000. However, if you’re looking for high leverage, or a welcome bonus of some kind, then an FCA regulated broker will not be the best option.
What are the risks of using a FCA regulated broker?Copy link to section
There are no real risks involved when using an FCA regulated broker, other than losing your money through trading or investing. The benefits far outweigh the risks and to help you decide if an FCA broker is right for you, we’ve provided a few pros and cons of using one.
BenefitsCopy link to section
- Your money is protected up to £85,000 if a broker goes out of business
- You can start trading or investing with as little as £10
- Spread betting is available with FCA regulated brokers
- You can practice with a demo account
What are the fees for using a FCA regulated broker?Copy link to section
The fees you pay will vary depending on the broker you’re using and the asset your trading. Generally, most FCA regulated forex brokers will charge spreads, commissions, or a combination of both. Spread is the difference between the buy and sell price and can either be fixed or variable based on where the broker gets it’s liquidity from. The commission is a small percentage of your trade’s size and the broker’s charge for providing you with a service.
Methodology: How did we choose the best FCA regulated brokers?Copy link to section
We followed a strict process when evaluating each broker on this page. Every FCA regulated broker listed in this guide was tested by our experts. We considered a number of different factors during testing, which included: registering an account, depositing funds, making a trade, and withdrawing money. We also confirmed all FCA licence numbers using the FCA’s official website.
When comparing each broker, we used online research and reviews in addition to our own research. You can find an in depth review for each broker we have included in this comparison guide. Any broker does not influence our rankings and reviews however we may at times receive an affiliate commission if you click on a link and register an account.
To learn more about our rankings and reviews, you can visit our full review process.
FAQs:Copy link to section
To find out if a forex broker is regulated in the UK, you need to find its registration number and check it against the Financial Conduct Authority’s list. Brokers state their registration numbers in their legal disclaimers, which are usually found in the website footer. On a broker app, the information is normally available in the settings.
Once you have found it, head to the FCA register and enter the number to find all its registration and regulation details.
The regulatory body in the UK restricts leverage to 30:1 for major currency pairs and 20:1 for minor pairs. Traders classed as professionals can access leverage up to 500:1. Outside of Europe, it is possible to obtain higher leverage. Trading using leverage is risky and can lead to large losses and to protect retail traders, the FCA and other European regulators put limits on the amount of leverage available.
Yes you can use a forex broker that is located anywhere in the world. However, if you opt for one that is not located in the United Kingdom, you will not benefit from any of the strong regulation that is required. Other jurisdictions have their own regulations, although the UK’s FCA is considered one of the strongest in the world.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >