FCA regulated brokers

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What is the FCA?

Before looking at the FCA regulated brokers, let’s see what it is.

The FCA is the diminutive of the Financial Conduct Authority, the financial regulator of the United Kingdom, and which is in charge of ensuring the security in the provision of financial services between the entities that operate in the United Kingdom and the clients that use themselves.

Anyone who knows the world of Forex knows perfectly what the FCA is, as this is one of the main world regulations in the broker market. In fact, that a broker is regulated by the FCA is synonymous with security for the client and prestige and for that broker.

The FSA (Financial Services Authority) was in charge of looking after financial security before the FCA, being a little confused the passage from one to the other because many clients did not find out until a few months after, since there were people who after a long gone, still asking about the FSA.

Either way, the FCA is the regulatory agency that will serve as our security umbrella when choosing a UK-based broker.

Why resident?

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Well, in order to enjoy the support and regulation by the FCA, the broker in question will have to have a residence office in the United Kingdom. Thus, many world brokers decide to open subsidiaries in this country with the aim of gaining clients not only in the British market but in the world market (due to the prestige that being regulated by this body gives).

The FCA has to report to the British Treasury, which is responsible for the entire financial system in that country, and also to Parliament.

The FCA has regulatory powers over:

  • Marketing of financial products from brokers
  • You can research organizations or even individuals
  • It may prohibit financial products or entities that it considers to be promoting illegal offers.

What niches does the FCA regulate?

Despite the fact that we only usually see the same in the regulation of private brokers, the FCA regulates markets such as services related to private pensions, children’s ISAs, credit and debit cards, investment loans, etc.

Knowing that the United Kingdom is one of the great financial epicenters of the world, we can get an idea of ​​the importance of the FCA in that country and in the world in general.

The general objective is to protect consumers, financial products and promote fair competition in the sector.

The FCA regulates:

  • Banks and credit unions
  • Credit signatures
  • Electronic money institutions
  • Financial advisors
  • Fintech
  • Insurers
  • Investing managers
  • Pension and insurance providers
  • Mortgage Borrowers
  • Mutual societies
  • Payment institutions
  • Wealth managers

FCA regulated broker

This body regulates a huge number of brokers, since the United Kingdom, and mainly London, are the financial center of the Forex and CFDs of the world.

Among the numerous brokers regulated by the FCA we have many of the classics and the best CFD brokers in the world , such as:

  • Admiral Markets
  • ActivTrades
  • Fxpro
  • ETX Capital
  • ForexTime
  • City Index
  • Forex.com
  • HF Markets
  • LMAX
  • LCG
  • Darwinex
  • CMC Markets
  • IG Markets
  • Interactive Brokers
  • Valbury Capital

Almost all of the European brokers are regulated here directly or indirectly.

You can see more UK brokers here.

FCA fines

To get an idea of ​​how strict the FCA is, in January 2018 it fined £ 1,049,412 to Interactive Brokers, one of the world’s most prestigious brokers.

The fine was not because it was a scam or anything like that, which has nothing to do with Interactive, but for “poor transaction practices”, in what is more bureaucratic control than anything else.

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This should serve us as the FCA is monitoring all brokers acting under its umbrella with extreme diligence.

To see that he does not go around with little girls we can see how in the fines of 2017 he distributed some to Merril Lycnh, Rio Tinto and even Deutsche Bank for no less than 163,076,224 pounds.

For more information visit the website.

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