The UK Forex Brokers are authorized by the Financial Conduct Authority (FCA), a reputable regulatory organization founded in 2013, which works in conjunction with the Bank of England and The Prudential Regulation Authority. The FCA also collaborates with the MiFID allowing the Forex brokers to operate outside the UK borders extending to other European countries. The FCA demands the regulated brokerage firms to keep the client’s funds in segregated accounts at high-level banks and separate from their assets to guarantee additional protection for client’s funds. FCA brokers are bound by the regulations to have the mandatory capital requirement to operate.
|1||ADSS||2011||FCA, SFC, Central Bank of UAE|
|2||FxPro||2006||CySEC, FCA, FSB, DFSA, SCB|
|3||FIBO Group||1998||FSC, CySEC, FCA|
|4||FXTM||2011||CySEC, FCA, IFSC|
|5||Trading Point of Financial Instruments||2018||FCA|
|6||XTB||2002||BaFin, CNMV, CySEC, FCA, IFSC|
|7||Admiral Markets||2001||ASIC, CySEC, FCA, MiFID|
|8||Marketscom||2008||ASIC, CySEC, FCA, FSCA|
|9||City Index||1983||ASIC, FCA, FSA, IIROC, MAS, NFA|
|10||HYCM||1977||CySEC, FCA, MiFID, DFSA, SFC|
The ‘Financial Conduct Authority’ is a self-governing supervisory entity responsible for regulating and authorizing the UK-based financial markets and financial services companies. The organization is also held accountable by the UK Treasury Department and the Parliament. The ‘Financial Services Authority’ (FSA), the predecessor of the current UK regulatory body (FCA), was accused of many scandals in the recent economic crisis of the UK. This crisis led to serious reforms sanctioned by the UK government resulting in the creation of ‘FCA’ and ‘Prudential Regulation Authority’ (PRA) as the new and reformed regulatory bodies.
To identify if a forex broker is regulated by FCA, the first step is to identify the name of the entity from the disclosure text on the broker's homepage. For example, here's the key disclosure text from ADSS's website.
ADSS holds a banking license issued by its supervisory authority the FCA.Next, look up the firm on the list of supervised institutions listed on FCA's website to validate the firm's current regulatory status. Here is the official FCA page.
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