Best FCA regulated forex brokers in 2022

The Financial Conduct Authority is renowned for safeguarding investors. In this guide, our experts compare the best FCA regulated brokers and rank them to help you choose the best one.
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Updated: Nov 24, 2022
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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. 

What are the best brokers regulated by FCA?

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.

1
Min. Deposit
$ 10
Promotion
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
2
Min. Deposit
$ 100
Promotion
User Score
10
Trade out-of-hours on over 70+ US stocks
Get exposure to a wide range of popular UK, US and international stocks
Enjoy flexible access to more than 17,000 global markets, with reliable execution
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal
Full Regulations:
ASIC, FCA, FINMA, is a licensed bank (IG Bank in Switzerland)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
3
Min. Deposit
$ 0
Promotion
User Score
9.5
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Start Trading
Payment Methods:
Full Regulations:
4
Min. Deposit
$ 500
Promotion
User Score
9.0
We offer one of the best execution speeds in the industry with low latency
Award-winning support in 14 languages
Trade with precision from 0.5 pips on EURUSD
Start Trading
Payment Methods:
Bank Transfer, Bank Wire, Credit Card, Debit Card, PayPal, Sofort, neteller, skrill
Full Regulations:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Top FCA regulated brokers

eToro: Best Overall

eToro a great trading platform for beginners, with an interface that’s easy to use via app or desktop. It’s one of the best regulated brokers forex traders use and it boasts a zero-to-low fee structure that won’t gobble up your money in charges.

There are more than 5,000 crypto, stock, etf, forex, and commodity assets available to trade on eToro. You can dive straight in to trade or dip your toe in gently with one of the best demo accounts in the business. We like to switch to virtual mode and use its unique CopyTrader feature to get trade ideas, test out strategies, and learn from the pros.

The fees: All stock and ETF trading is commission fee. All crypto trades are charged a 1% fee. Currency spreads are 1 pip, for commodities, it’s 2 pips. Stock CFDs have a 0.15% spread. All deposits are free, withdrawals cost $5. An inactivity fee of $10 per month kicks in if you don’t log in to your account for 12 months.

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money 

Degiro: Best for beginners

Degiro offers a simple trading platform to trade quickly and easily wherever you are. Degiro offers trading on 900 stocks, 200 ETFs, and over 1000 futures and options in 30 countries, including the US, UK, and all leading European markets. 

Degiro has won 86 international awards and is one of the largest companies in Germany. All its services are available online or via the Degiro app. The website also boasts a huge range of educational material, including an Investor’s Academy, to help you get started.

The fees: All stock trades come with a €1 handling fee. US stock trading has no other fees, UK stock trading costs $1.75, and European stock trading costs €3.90. The rest of the world costs €5. A core selection of ETFs are free to trade, and other global ETFs cost €2 plus a €1 handling fee. Derivative trading costs €0.75. There are no inactivity, deposit, or withdrawal fees.

Capital: Best for mobile investing

Capital.com offers one of the best trading apps in the business. Capital’s award-winning mobile app offers risk management tools, plenty of help and education, and AI-powered trading advice. You can trade CFDs on more than 5,000 stocks, commodities, and currency pairs.

Capital helps to manage your risk by charging no commission on any commodity trading and providing automated assistance that analyses your behaviour to see where you make your mistakes. It’s one of the top forex brokers regulated by the FCA to offer strong investor protection and encrypts all your private data to keep it safe.

The fees: All CFD trades are commission free. Capital.com makes its money through the Bid/Ask spread, and the spreads vary depending on which stock, commodity, or currency you trade. There are no deposit, withdrawal, or inactivity fees, but you will be charged overnight fees if you open a leveraged trade.

Skilling: Best for CFD investing

Skilling is a beginner-friendly platform that makes trading accessible to everyone. You can trade over 900 forex, stock, indices, and commodity CFDs on Skilling and the system is very portable, so you can trade from the app or on your desktop. 

One of Skilling’s best features is its compatibility with TradingView, so you can chart trading ideas and then send them directly to your trading account. It also boasts plenty of other user-friendly software to make it easy to trade from your phone or your browser, including its proprietary Skilling Trader and the cTrader platform for professionals.

The fees: There are no fees for standard account types. Skilling makes its money on the Bid/Ask spread, and forex spreads start from 0.7pips. Premium accounts are charged a commission which starts from $35 per million traded. Positions left open overnight will be charged swap fees, which vary depending on the trade size.

Pepperstone: Best for spread betting

Pepperstone a CFD and spread betting broker with top tier regulatory protection. It’s one of a few UK regulated forex brokers that allows spread betting in a wide range of currencies. You can safely trade 1200+ currency, stock, and commodity CFDs on Pepperstone.

Pepperstone’s high level of security makes it a good option for beginners, as does the fact it provides webinars to help you learn from the experts. For more experienced traders, you can access up to 30:1 leverage (500:1 for professionals) and integrate your trading account with four leading software platforms, including MetaTrader 4 and 5.

The fees: Forex trades are commission free, as Pepperstone makes money from the Bid/Ask spread. The spreads vary depending on the asset you want to trade. Razor (pro) account customers get significant discounts on the spreads. US stock trades are charged a $0.02 commission, for other stocks, the commission starts at 0.07%.

What is an FCA regulated broker?

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?

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?

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?

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?

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.

Benefits

  • 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

Risks

What are the fees for using a FCA regulated broker?

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?

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:

How can I check if a broker is FCA regulated?
Why do overseas brokers offer higher leverage than FCA regulated brokers?
Can i trade with a broker outside of the UK?

Sources & references
Risk disclaimer

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 >

Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.
James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.