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AuthorBy Jeffrey Cammack
Updated: August 1, 2022

The Financial Conduct Authority (FCA) is the UK’s financial regulator and is renowned as the most stringent regulator of Forex brokers in the world. The FCA’s licencing fees and operating capital requirements are much higher than other tier one regulators and it has a long-standing reputation for guaranteeing trader security. Brokers regulated by the FCA must have segregated bank accounts for client funds, a minimum of 1 million GBP in operating capital and instantaneous withdrawal processing. The FCA also provides a compensation scheme of up to 50,000 GBP to protect traders against broker-related matters.

To test these brokers, we signed up for a live account and verified their FCA license, platform selection, trading desk type, and minimum deposit requirements. Further testing focused on the trading conditions, the total cost of trading, withdrawal fee requirements and additional fee structures so traders can keep trading costs as low as possible. These are the best FCA-regulated brokers for 2022, according to our testing and our research.

Best FCA Regulated Forex brokers for 2022

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Broker
Overall Rating
Official Site
FCA (UK) Regulated
FCA License
Min. Deposit
Max. Leverage (Forex)
Beginner Friendly
EUR/USD - Standard Spread
Cost of Trading
EUR/USD - Raw Spread
Total CFDs
Currency Pairs
Platforms
Compare
HFM (HotForex)
4.49 /5
Read Review
Visit Broker >
Your capital is at risk
801701
USD 5
1000:1
Excellent
1.00 pips
USD 10
0.10 pips
1169
53
XM
4.25 /5
Read Review
Visit Broker >
Your capital is at risk
705428
USD 5
888:1
Excellent
1.60 pips
USD 16
0.10 pips
1510
57
FxPro
4.29 /5
Read Review
Visit Broker >
Your capital is at risk
509956
USD 100
200:1
Excellent
1.40 pips
USD 14
0.40 pips
2181
70
FxProEdge
IG Markets
4.69 /5
Read Review
Visit Broker >
Your capital is at risk
195355
USD 0
200:1
Excellent
0.60 pips
USD 6
0.85 pips
19295
80
L2 Dealer
ProRealTime
Pepperstone
4.61 /5
Read Review
Visit Broker >
Your capital is at risk
684312
USD 0
400:1
Excellent
0.60 pips
USD 6
0.17 pips
0
70
Capital.com
4.68 /5
Read Review
Visit Broker >
Your capital is at risk
793714
USD 20
100:1
Excellent
0.60 pips
USD 6
0.60 pips
4284
137
Capital.com
Markets.com
4.64 /5
Read Review
Visit Broker >
Your capital is at risk
607305
USD 100
300:1
Excellent
0.70 pips
USD 7
0.60 pips
2206
67
XTB
4.14 /5
Read Review
Visit Broker >
Your capital is at risk
522157
USD 5
500:1
Excellent
1.40 pips
USD 14
0.80 pips
4148
48
xStation5
Tickmill
4.48 /5
Read Review
Visit Broker >
Your capital is at risk
717270
USD 100
500:1
Excellent
0.00 pips
USD 4
0.10 pips
207
62
Axi
4.34 /5
Read Review
Visit Broker >
Your capital is at risk
509746
USD 0
500:1
Excellent
1.00 pips
USD 10
0.00 pips
188
70

How to compare FCA regulated brokers

FCA is one of the most respected financial regulatory agencies in the world. They are a very traditional but well-funded organization, making regulatory changes and issuing warnings to protect would-be traders and maintain fairness in the CFD industry. All FCA-regulated brokers can be considered safe due to the strict regulatory environment in which they operate, and most of them are very strong all-round. But it is essential to look at the detail of each broker to find out what differentiates them from each other. When comparing FCA regulated brokers consider:

Regulation: While your broker is FCA regulated, your trading account may not be. It is increasingly common for FCA regulated brokers to onboard UK residents onto a different license where trading conditions, like leverage, can be increased without the FCA oversight. While this is not fundamentally bad, a trader should know their trading account is regulated and that FCA will not enforce their regulations in overseas territories. If you value the regulatory oversight of the FCA, don’t trade that for adjusted trading conditions.

Platform choice: Traders have a wide range of industry platforms to choose from, each with pros and cons. When comparing brokers, always consider the platform options, as unique features or a wide variety of platforms could change your trading experience. 

Trading costs: Every broker will charge for their services, but each will have different pricing models and costs. While ECN brokers will charge a smaller spread combined with a commission based on volume, market maker brokers will charge a wider spread. We compare brokers by looking at what 1 lot of EURUSD costs to trade and would encourage traders to do the same in comparing costs. 

MetaTrader 4 is still the industry standard, but many brokers offer MetaTrader 5 and their proprietary platforms. ECN/STP brokers will often support cTrader as it is built specifically for market execution and only allows for minimal broker interference.

Minimum Deposit: The minimum deposit could change by account type, with higher minimum deposits often linked to better conditions. Always consider the minimum deposit specific to the account type you may open. 

Deposit and Withdrawal Methods: Most brokers accept credit cards and bank transfer payment, and many accept online payments through Skrill and Neteller, and some will also accept Bitcoin. Always check the withdrawal fees before making a deposit. 


HFM (formerly known as Hotforex) – Best Analysis App

Established in 2010, HFM is an award-winning Forex and commodities broker based in London. In 2012 HFM revealed that it added the FCA licence (registration no. 801701) to its long list of credentials. Since then, HFM has demonstrated its ability to comply with the FCA’s rigorous standards. However, Hotforex clients in Nigeria will be trading under the Saint Vincent and the Grenadines-based entity.

While HFM’s Nigerian clients are not as well protected as their clients in the EU and the UK, the FCA oversight ensures adequate security. HFM also stands out for its diverse range of financial instruments and the HF App – providing traders with access to their accounts and a variety of trading tools, news, and financial analysis.

Financial Instruments:  HFM offers traders a wider and more diverse range of tradable assets than is typically found at other brokers, including various specialty CFDs. Trading is offered on 53 Forex pairs, alongside share CFDs, commodities, bonds, over 34 ETFs, and 950 stock DMAs, which are rarely seen at other brokers.  All assets are available on its three accounts, which have minimum deposits that start at 100 USD, and low trading fees compared to other similar brokers. The Zero Spread Account is particularly notable, with spreads that start at 0.1 pips on the EUR/USD in exchange for a round-turn commission of 6 USD.

HF App: The HF App, available on both Android and iOS, offers traders direct access to the myHF Area. It allows traders to withdraw, deposit, and transfer funds, create watchlists, offers advanced charting functionality, various trading calculators, and an Economic Calendar.  The HF App also offers Daily Market Analysis curated by its team of in-house experts, which provides frequent fundamental and technical analysis updates, video analysis, and special reports.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.

XM – Best Education

Founded in Cyprus in 2009, XM is an FCA-regulated broker (licence no. 705428) with a regional office in the City of London. While traders will be onboarded through XM’s CySEC-regulated subsidiary, it is passported to the FCA, and as such complies with the strict regulatory requirements. XM also participates in a compensation scheme that covers losses up to 20,000 EUR in the event of the broker’s bankruptcy.  XM has expanded rapidly since its inception and now has over 5 million traders on its books from 192 countries, including Nigeria. Nigerians will be trading under XM’s Belize-based entity, regulated by the IFSC. Although the IFSC’s rules are not as strict as other international regulators, the FCA regulation provides traders with confidence that their funds will be safe and that they will be treated fairly. In addition to adhering to strict regulatory rules, XM offers a low-cost Zero Account with exceptionally tight spreads, but stands out for its high-quality educational materials and customer support.

XM Education: With over 20 multilingual market professionals, XM presents a diversified educational knowledge base to empower its clients with a competitive trading advantage. XM provides hourly webinars, Q&A sessions with trading experts, in addition to daily updates and briefings on movements that shape the global markets.  It also provides a comprehensive selection of educational videos and platform tutorials.  

Trading Fees: Available on both the MT4 and MT5 trading platforms, XM’s Zero Account offers some of the lowest trading fees in the industry.  With a minimum deposit of 100 USD, traders can access spreads that start at 0.1 pips on the EUR/USD in exchange for a round-turn commission of 7 USD.  XM also boasts a strict no requotes and no rejections policy, and 99.35% of all trading orders are executed in less than one second, which means that traders will usually receive the trading prices that are quoted. 

Pros
  • Well regulated
  • Excellent education
  • Free deposits and withdrawals
Cons
  • Dealing desk
  • Wide spreads on its entry-level accounts
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 888:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.

FXPro – Best Trade Execution

Founded in Cyprus in 2006, FxPro has a regional HQ in London and has been regulated by the FCA since 2010 (licence no.509956). FxPro has expanded rapidly since its foundation and over the years 1.8 million client accounts have been opened across 173 countries worldwide, including Nigeria. Although Nigerian traders will be trading under FxPro’s Bahamas-based entity, regulated by the SCB, the additional FCA oversight will give Nigerian traders confidence that FxPro provides a safe and transparent trading environment. FxPro is also well-regarded for the number of trading platforms it offers, including MT4, MT5, cTrader, and its in-house trading platform, FxPro Edge. Additionally, FxPro provides some of the fastest execution speeds in the industry. 

Fast Execution: FxPro provides its clients with exceptionally fast trade execution, which means that orders are filled at close to the quoted price. Most trades are filled in under 14 milliseconds, with 80.48% of market orders executed at the requested price, while 9.6% of clients receive a better price, or positive slippage.  Although FxPro provides fast execution, its trading fees are slightly higher than other brokers across all account options.  Minimum deposits start at 100 USD on all accounts, but trading costs vary between 12 USD to 18 USD on one lot of EUR/USD traded.

Trading Platforms: FxPro offers a broader range of trading platforms than other brokers, including MT4, MT5, cTrader, and FxPro’s in-house platform, FxPro Edge. MT4, MT5, cTrader are considered some of the best trading platforms in the industry, with advanced charting and automated trading capabilities. However, the benefit of trading on FxPro Edge is that it connects seamlessly to the FxPro App allowing traders to manage their funds and trade from the integrated platform. 

Pros
  • Well regulated
  • Great platform choice
  • Tight spreads
Cons
  • Limited education
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB.

IG Markets – Widest Range of Financial Instruments

Founded in 1974, in London, IG Markets is one of the best-regulated brokers in the world. With regulation from over 17 regulatory authorities, including the FCA (licence no. 195355), IG Markets is also publicly traded on the London Stock Exchange. In compliance with FCA regulation, IG Markets holds all client money in independent trust accounts at a range of credit-worthy high street banks such as Barclays and Lloyds. Although Nigerians will be onboarded through IG’s Bermuda-based subsidiary, the FCA oversight guarantees a reliable and transparent trading environment. IG Markets also offers low-cost trading and one of the largest sets of financial instruments in the industry, with over 17,000 instruments available for trading.

Trading Fees: IG Markets offers one live account, available on three trading platforms. Trading fees vary depending on the platform chosen, but are generally lower than average, with spreads of 0.85 pips on the EUR/USD and no commissions for Forex trading.  Additionally, there are no minimum deposit requirements to open an account, except on the L2 Dealer platform, where traders are required to maintain a minimum account balance of 2000 USD.

Financial Instruments: IG Markets offers over 17,000 financial instruments to trade, a larger range than is found at other brokers. These include 13,000 share CFDs, 6000 ETFs, and 80 Forex pairs. IG Markets also offers weekend trading on major Forex pairs and 24 hour trading on Britain’s leading stock index, the UK 100. Both of these are unique services that are not available at other brokers.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Excellent education
  • Excellent market analysis
Cons
  • High minimum deposit
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.85 pips on trading account with lowest minimum deposit. Max leverage 200:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA.

Pepperstone – Lowest Cost ECN Account

Established in 2010 in Australia, Pepperstone entered the UK market in 2016. Pepperstone UK is regulated by the FCA (registration no. 684312) and all client funds are kept in segregated trust accounts at Barclays.  As of June 2020, Pepperstone’s UK office had almost 8,000 clients, drawn by Pepperstone’s low fees, its range of UK share CFDs and choice of three popular trading platforms. Although Pepperstone’s Nigerian clients will be trading under the Pepperstone subsidiary regulated by the SCB (Bahamas), the FCA regulation ensures that Pepperstone will act in the best interests of all traders.

Trading Platforms: Pepperstone offers support for three of the most popular trading platforms, including Metatrader 4 (MT4), Metatrader 5 (MT5), and cTrader. Although it was developed in 2002, MT4 is the most widely used cross-broker trading platform available. MT5, the newer version of MT4, has greater functionality and more advanced charting tools, while cTrader has a more intuitive design and is easier for beginners to operate, but offers most of the automated trading tools found on MT4 and MT5. 

Low Trading Fees: Pepperstone offers two simple account types with competitive trading fees.  The Standard Account has fees included in its variable spreads, which average at 0.17 pips on the EUR/USD, while the Razor Account offers raw spreads of 0.1 pips in exchange for a round-turn commission of 7 USD.  Overall, these are some of the lowest trading fees in the industry.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
  • Limited market analysis
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.60 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone Group is regulated by the FCA, ASIC, and the DFSA.

Capital.com – Lowest Non-trading Fees

Founded in Cyprus in 2016, Capital.com quickly expanded into the UK market and received its FCA licence (registration no. 793714) in 2018. The licence bolsters Capital.com’s reputation as a reliable and transparent broker, but also allows Capital.com to offer spread betting to its British clients. Spread betting accounts are similar to CFD accounts, but traders don’t pay Capital Gains Tax or Stamp Duty on profits from spread betting in the UK. Although Nigerians will be onboarded under Belarus-based entity, regulated by the NBRB, the FCA regulation ensures that Nigerian traders will be well-protected. Capital.com is also popular for its low-cost trading environment, including low trading and non-trading fees, and it offers excellent, actionable market analysis materials.

Low Fees: Capital.com has a single trading account with no commission and very low costs compared to most other brokers, with spreads starting at 0.60 pips on the EUR/USD. The minimum deposit requirement on this account is also low, at 20 GBP, making it accessible to all traders. Additionally, Capital.com only charges swap fees on the leverage, not on the trading position’s entire value. Capital.com also does not charge fees or inactive accounts, and deposits and withdrawals are free, which is rare among CFD brokers.

Actionable Market Analysis: Capital.com’s Financial News and Features section provides exceptional value for beginner and experienced traders alike. The detailed and useful analysis of the markets is updated throughout the day and will give beginners a good understanding of what moves the financial markets and provides ideas for trading opportunities. Video analysis is also available on the Capital.com TV platform.

Pros
  • Tight spreads
  • Low minimum deposit
  • Excellent education
Cons
  • Limited account options
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 100:1. Capital.com custom platform supported. Capital.com Group regulated by the FCA, ASIC, NBRB & CySEC. 81.4% of traders lose money with this provider.

Markets.com – Best Proprietary Platform

Established in 2008, Markets.com is one of the most highly regulated brokers in the industry. With regulation from five authorities, including the FCA (licence no. 607305), Markets.com is well-positioned to offer trading services to residents of the UK. Markets.com is also a subsidiary of Playtech Ltd, publicly listed on the London Stock Exchange. Markets.com’s FCA regulation enables it to provide spread betting, a service unique to UK residents. Nigerian traders will be trading under Markets.com’s British Virgin Islands-based entity, regulated by the FSC. While the level of oversight provided by the FSC is not as strict as that of the FCA, Nigerians can trade with confidence that the FCA oversight ensures that Markets.com provides a transparent trading environment. Markets.com offers one live account, available on three trading platforms, including MT4, MT5, and Marketsx, one of the best in-house platforms in the industry.

Marketsx: Marketsx is an award-winning trading platform known for its ease of use and excellent features. With a clean, intuitive design, the platform offers advanced charting, making it easier to spot trends and identify new trading opportunities. It also allows traders to add up to five types of indicators to the chart at once or compare up to eight instruments side-by-side. Additionally, the platform integrates with a number of trading tools, including signals, bloggers’ opinions, and market trends, among others.

Markets.com’s Trading Fees: Markets.com’s trading fees vary depending on trading platform choice.  The average cost of trading one lot of EUR/USD is 8 USD on the Marketsx platform and 6 USD on the MT4 and MT5 platforms, which is lower than other similar brokers. The minimum deposit is also reasonable, at 100 USD/EUR/GBP, putting it well within reach of most traders.

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • High minimum deposit
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 300:1. Islamic account available. MT4, MT5, and Marketsx platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC

XTB – Best Research and Market Analysis

XTB was founded in Poland in 2002 and gained an FCA licence (registration no. 522157) to expand its reach into the UK. With many years in the forex trading space, XTB now has a customer base of over 389,000 traders across the world, including Nigeria. Nigerians will be onboarded through its Belize-based entity, regulated by the IFSC, a less stringent regulator than that of the UK. However, the additional FCA oversight will ensure that Nigerian funds are safe and provide a transparent trading environment. XTB also stands out for its in-house trading platform, xStation 5, and excellent market research, curated by its team of expert traders.

Market Research: XTB’s market research amenities are excellent compared to other brokers. Aside from an economic calendar that is intuitive and filterable, XTB offers an updated newsfeed with excellent search functionality. XTB’s market analysis tab also features a number of useful analytical tools, including market sentiment, top movers, a stock scanner, and heat maps. Each section is well-structured and provides a number of actionable trading ideas.   

xStation 5: Although trading platform choice is limited to xStation 5, it offers many of the same advanced trading features found on the more popular trading platforms such as MT4. However, xStation 5 introduces XTB sentiment data directly into the platform, allowing traders to view the percentage of clients trading long and short, and on which instruments.  It also offers powerful charting tools, one-click trading, real-time performance statistics, and a trader’s calculator. In addition, XTB’s mobile application connects seamlessly to the xStation 5 desktop version. 

Pros
  • Well regulated
  • Tight spreads
  • Low minimum deposit
  • Good for beginners
Cons
  • Limited platform choice
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.40 pips on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. xStation5 platform supported. XTB Group is regulated by CySEC, FCA, the DFSA, and the IFSC

Tickmill – Lowest Commission STP/ECN Broker

Established in 2014 and headquartered in London, Tickmill has seen extraordinary growth since its foundation, with over 110,000 traders on its books and an average monthly trading volume of over 120 billion USD. Tickmill acquired its FCA licence (registration no. 717270) in 2016 and to date its UK office has attracted over 38,000 clients. While Nigerians will be trading under Tickmill’s Seychelles-based entity, the additional FCA oversight will ensure that Tickmill provides a safe and reliable trading environment.  Traders will also be attracted by its low commission accounts and low non-trading fees.

Low Commission Accounts: Tickmill offers three live accounts on both the MT4 and Mt5 platforms. While its commission-free entry-level account features higher trading fees than other brokers, with spreads that start at 1.6 pips on the EUR/USD, traders will be interested in the Pro and VIP accounts, which offer spreads of 0 pips and commissions of 4 USD and 2 USD (round turn), respectively.  However, in order to open a VIP account, traders will have to maintain an account balance of 50,000 USD.

Non-trading Fees: Unlike other brokers that charge fees on almost all transactions, Tickmill’s non-trading fees are low. No fees are charged for deposits or withdrawals, and Tickmill does not charge fees on inactive accounts. Tickmill also has a Zero Fee policy and will reimburse traders for any third-party fees charged up to 100 USD on deposits of over 5,000 USD.

Pros
  • Tight spreads
  • Well regulated
  • Fast and free withdrawals
Cons
  • Limited base currencies
AlertAccepts Nigerian Clients. Average spread EUR/USD 0.00 pips with 4 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform support. Tickmill is regulated by CySEC, FCA, FSCA, and the FSA-Seychelles.

Axi – Best MT4 Customisation

Originally from Australia, Axi opened its UK branch and acquired an FCA licence (registration no. 509746) in 2012. In 2020, Axi became a sponsor of Manchester City and launched the Axi Select programme, which provides talented retail traders with funding to become professional traders. Although Nigerian traders will be trading under Axi’s Seychelles-based entity, the FCA regulation ensures that the broker provides a reliable and fair trading environment.  Axi only supports the MetaTrader 4 (MT4) trading platform but provides lots of tools and plugins to make the platform more powerful.

MT4 Customisation: Although trading platform support is limited to MT4, Axi offers many tools and plugins that can be added to the trading platform to make it more powerful. Traders who maintain an account balance of more than 1000 USD can access the MT4 NexGen plugin, which includes an advanced sentiment indicator, a correlation trader, a more intuitive terminal window, and an automated trade journal. Traders also have free access to PsyQuation, an advanced data analytics plugin that analyses your trading style, identifies mistakes, and helps you avoid making similar mistakes again. 

Axi Select: Axi Select provides a means for talented traders to gain the capital funding required to become professional traders. For retail traders that demonstrate potential, Axi provides all the tools, education, and financial backing to progress in the Forex trading space. Axi allocates up to 500,000 AUD per qualified trader and allows traders to earn a 20% performance fee once they meet certain program criteria.

Pros
  • Low minimum deposit
  • Tight spreads
  • Innovative trading tools
Cons
  • MT4 only
  • Limited range of assets
AlertAccepts Nigerian Clients. Average spread EUR/USD 1.00 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA.

Why Trade with an FCA Regulated Forex Broker?

The FCA has a long-standing reputation for guaranteeing trader security and dealing harshly with bad brokers. The benefits of trading with an FCA regulated broker are:

  • Segregated Accounts: Like most good regulators, the FCA ensures that all brokers keep client funds segregated from broker operational funds and in Tier 1 banks.
  • Operating Capital: To ensure that all Forex brokers can maintain their clients’ positions in the market, every FCA regulated broker must have at least 1 million GBP in operating capital, which increases according to the number of traders and the trading capital. This is to ensure that all brokers can meet their financial obligations without fail.
  • Instant Withdrawal Processing: Brokers must ensure that all withdrawals are processed instantaneously.
  • Financial Service Compensation Scheme (FSCS): The FSCS is one of the most generous compensation schemes in the world. It offers protection for traders against broker-related issues by providing a guarantee of up to 50,000 GBP in compensation.

How To Choose an FCA Regulated Broker?

All FCA brokers are safe due to the strict regulatory environment in which they operate, and most of them are very strong all-round. But it is essential to look at the detail of each broker to find out what differentiates them from each other.  When looking for an FCA regulated Forex broker, it is important to judge them on the following areas:

  • Broker Type: Most brokers are either ECN/STP or Market Makers, but some can be a combination of both. You will find that many brokers will provide an ECN/STP service on their higher-deposit account types while acting as a Market Maker for their Cent and Standard accounts. Many of the best FCA regulated brokers are ECN/STPs.
  • Trading Conditions: This includes what kind of spreads are available, how much leverage is offered, and how many currency pairs are available. These factors will directly impact your profit or loss, so you don’t want any surprises.
  • Trading Platform: MetaTrader 4 is still the industry standard, but many brokers offer MetaTrader 5 and/or their proprietary platforms. ECN/STP brokers will often support cTrader as it is built specifically for market execution and only allows for minimal broker interference.
  • Minimum Deposit: This changes by account type for many brokers, with higher minimum deposits often linked to better trading conditions. We will always highlight the minimum deposit available regardless of the account type.
  • Deposit and Withdrawal Methods: All brokers accept traditional payment types such as debit/credit cards and bank transfers, many accept online payments through Skrill and Neteller and some will also accept Bitcoin. Always check for deposit and withdrawal fees, a few brokers charge a percentage fee for some withdrawals methods, making large drawdowns very expensive. 

The FCA’s Role In Forex Trading

FCA-regulated Forex brokers are governed by rules that enhanced trust through enforcing market discipline, and adjust provider behaviour to prevent harm from happening to customers, and assisting when things go wrong.

The FCA’s role in Forex trading is to oversee the activities of the Forex brokers, to ensure compliance with rules that are designed to protect end-users and the overall economy.

A Forex broker that is regulated by the FCA is required to consider the interest of their customers and treat them fairly. Also, the FCA requires that information is shared with customers in a way that is easy to understand, fair and not misleading.

The mission of the FCA.

The Financial Conduct Authority (FCA) is the UK’s financial regulatory organisation. It replaced the Financial Services Authority in 2012, which had been compromised during the financial crash when it was revealed that flaws in the organisation had led to poor regulation. The FCA is more powerful and consumer-focused than the FSA was, which is good news for Forex traders as they are very well protected under the new regime. 

The mission of the FCA is to regulate financial services through a framework of directives, and enforcement mechanisms.  The board of the FCA reports to the Financial Services Ombudsman who can bring information to the attention of parliament, and the industry through a series of publications.

What consumers can expect from the FCA

In principle, a consumer should expect to get protection from the regulation and the enforcement of rules of the FCA. The framework is designed to help protect those who may have a lesser understanding of the financial markets, from those who have a better understanding of them.

This protection includes helping Forex brokers set up rules for how to handle complaints and correct any issues.

The FCA’s main purpose beyond the regulation of financial organisations is to provide customers with reliable information. Their website maintains a warning list, which is a list of organisations that are potentially seeking to defraud customers, as well as provide information on the regulated entities and the products they offer.

The customer centre is available weekdays from 8 am to 6 pm, and half-day Saturday from 9 am to 1 pm, which gives potential traders access to knowledgable financial specialists who can help answer questions, or take note of a complaint or report a scam.

Key achievements of the FCA

The FCA achievements taking into consideration their short history are significant. Since 2013, when the FCA started regulating the UK financial industry, London has become more acknowledged as a major global financial centre.

Before the FCA being set up, there was no mechanism in the UK to keep the retail investor safe from companies that promoted complicated financial products that have a high-risk financial impact on the consumer.

The immediate achievement of the FCA the development of the requirements for financial organisations designed to protect the consumer, and a set of policies to help those who have already been harmed get easy access to a remedy.

The FCA is also transforming attitudes of the companies and those who work in the financial sector in the UK. This change has meant for fairer products, marketing tactics, and the development of a more customer-centric approach.

In changing the way companies operate internally and how they work with clients to remedy issues they create, the FCA has accomplishment has made the financial sector in the UK and the companies that are regulated by it, much safer for the average retail Forex trader.

The history of the FCA

Commenced in December 2012 with the passing of the Financial Services Act of 2012, the FCA was founded in April 2013 to replace the Financial Services Authority (FSA) that had been in place since 2001.

The FSA acted in an arbitrator role and had a broader mandate to oversee the entire financial system. When the FCA was created, it became responsible for the policing of the UK financial activities and the banking system. At the same time that the FCA was founded, sister agencies of the Bank of England’s Financial Policy Committee and the Prudential Regulation Authority which take responsibility for other financial sectors.

The global reputation of the FCA

The FCA is internationally recognised as one of the most trusted and objective regulatory services. It is a traditional organisation, and the framework which governs was created in 2013 to manage the current-day marketplace.  This activity has indirectly impacted many millions of UK households and has set a standard for other similar organizations worldwide.

FCA Structure

The FCA board is responsible for the overall framework implementation – which includes oversight of 6 committees which report into it, and the appointment of the Chief Executive to execute on the strategy set by the board.

The committee structure gives insights into the risks the FCA sees in the market, and how they work together in a system of self-regulation and gradual adaptation to prevent against new threats.

Risk & Strategy Committee evaluates the risks that are posed by the financial organisations on the market and are tasked to find strategies to mitigate those risks from being passed on to the consumers.

The Audit Committee monitors the effectiveness of the policies and the strategies used by the FCA.

The Regulatory Decisions Committee is the committee that takes actions against organisations that violate the rules. This committee acts on tips from the public and information from the investigators on the audit committee.

The Oversight Committee then works with the board of the FCA to manage their relationship with the parliamentary appointed Financial Services Ombudsman who is the UK’s official expert in sorting out problems with financial services. This relationship is valuable as this brings information to the government so that laws can be written, and government oversight is present.

Remuneration Committee is a committee that oversees a transparent process for how executives at the FCA are paid. This process ensures fair treatment of all staff and also respects that the FCA is a publicly funded organisation.

Similar to the Remuneration Committee, the Nominations Committee, acts as an internal mechanism to ensure the integrity of skills on the board so that the mandate of the FCA continues to be acted on effectively.

These committees, working with and feeding off each other, create a robust self-regulated system of rule-setting, auditing, enforcement and accountability to the people of the UK.

Summary

The FCA is a highly-valuable protective component of the UK financial services system that has been put in place to protect consumers with little financial knowledge from organisations with more knowledge selling them complex and risky financial products.

Any organisation that is regulated by the FCA is mandated to treat the customer fairly, and in the absence of a customer directive, make the decision that best suits the interest of the customer.

An FCA-regulated organisation takes responsibility for the accuracy and transparency of the information they promote and maintain discipline in their internal processes that are designed to protect themselves and their clients.

A Forex broker that is regulated by the FCA will expect their advice and support to be available in helping set up internal processes to protect and remedy issues that should arise in their business.

Overall, an FCA-regulated broker can be trusted to protect your funds, never communicate misleadingly, and has the client’s best interest in mind when doing business selling clients financial products and services.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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