7 Best FCA-Regulated Forex Brokers for 2024

List of Top FCA-Regulated Brokers

FCA Regulation: Protecting UK Financial Markets

Founded in 2013, the Financial Conduct Authority (FCA) operates independently of the UK government regulating 50,000 financial services firms and overseeing financial markets in the United Kingdom.

The primary objectives of the FCA are to safeguard consumers, uphold market integrity, and foster competition to benefit consumers. The FCA establishes rules and standards to ensure that financial institutions treat their customers fairly, provide suitable products and services, and prioritize customer protection over their financial gains.

There are many benefits to working with an FCA-regulated broker. Traders can be assured that their funds are segregated from the funds of their broker, that they have negative balance protection, and that their deposit is insured up to £85,000. The FCA limits the maximum leverage for retail traders to a relatively modest 1:30.

How did FX Empire select the Best FCA-Regulated Brokers?

There are many benefits to working with an FCA-regulated broker. Traders can be assured that their funds are segregated from the funds of their broker, that they have negative balance protection, and that their deposit is insured up to £85,000. The FCA limits the maximum leverage for retail traders to a relatively modest 1:30.

We carefully considered the needs of traders seeking to work with FCA-regulated brokers and focused on the points that benefit this group the most.

• We selected brokers authorized and regulated by FCA UK.
• We looked for brokers with UK-based headquarters.
• We assessed brokers’ level of financial strength and transparency.
• We tested fees and trading costs, including spreads, swap fees, inactivity fees, and withdrawal fees.
• We conducted a test drive for each platform, digging into available order types, charting, watchlists, and UX.
• We checked the availability of a strong variety of tradable CFD instruments, including CFDs on UK stocks.
• We looked for fast, responsive, and helpful customer support across the phone, live chat, and email.
• We verified the availability of a good variety of deposit and withdrawal methods, making it fast and easy to move money in and out of your account.
• We checked the available account types for CFD trading and whether they can cater to both beginners and advanced traders.
• We looked for insightful research and educational content to enhance traders’ understanding of the financial markets, develop effective trading strategies, and make informed decisions.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s go through the selected brokers.

Our Methodology

In selecting the best FCA regulated forex and CFD brokers we used the results of our advanced proprietary methodology. All of the brokers listed were among the leaders in our tests.

FXEmpire has been reviewing brokers since 2010 and has pioneered the in-depth evaluation of CFD brokers. Our process has taken years to refine and involved hundreds of reviews. We’ve gone to a granular level – with over 250 data points in our analysis of each broker – so you can feel confident in selecting the right platform.

To provide the most comprehensive view, we break down the brokers according to nine different categories:

• Trust
• Fees
• Platforms and tools
• Tradable instruments
• Customer service
• Deposit and withdrawal
• Account types
• Research
• Education

In our individual broker reviews, we explain complex areas like regulatory status, so you can easily understand the safety of your funds and the benefits you are guaranteed.

Data is gathered through live testing, research, detailed questionnaires, and in-person broker demonstrations. An account is opened with each broker, focusing primarily on the services of one entity and testing using the most standard account type and platform. We conduct live tests of spreads and measure overnight swap fees and account-related costs.

Our side-by-side analysis reveals whether a broker is competitive in relation to the industry as a whole. Trading platforms take time to master, but we have already done the legwork for you and our evaluations highlight their important features and usability.

For this guide, we selected brokers authorized and regulated by the UK’s Financial Conduct Authority (FCA) and based in the UK. We then assessed each broker’s level of financial strength and transparency to ensure reliability. In order to understand the cost-effectiveness, we tested fees and trading costs, including spreads, swap fees, inactivity fees, and withdrawal fees. We took each platform for a test drive, examining available order types, charting, watchlists, and the overall user experience.

Our search also prioritized the availability of a wide range of tradable CFD instruments, including CFDs on UK stocks, and responsiveness of customer support across phone, live chat, and email. We ensured that each broker offered a good variety of fast and easy deposit and withdrawal methods, facilitating smooth transactions.

We looked at the range of account types available for CFD trading to determine if they could cater to both beginners and advanced traders. Finally, we considered the quality of research and educational content offered by each broker, with the aim of helping traders better understand the financial markets, develop effective trading strategies, and make informed decisions.

Meet our Writers

The team of forex and CFD writers and editors at FX Empire is composed of trading industry professionals and seasoned financial journalists. Our writers have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

How to choose a forex broker regulated by FCA?

When looking for a broker regulated by the FCA, you should pay special attention to the following points.

What protection does FCA provide to traders?

The Financial Conduct Authority (FCA) is a Tier-1 regulatory body in the UK that is considered one of the top and strictest regulators due to its rigorous regulatory standards and commitment to ensuring a secure and fair trading environment. To be authorized and regulated by FCA, brokers must undergo audits, meet capital requirements, and provide segregated accounts and negative balance protection.

FCA regulation ensures that the broker complies with fair and ethical trading practices and participates in the Financial Services Compensation Scheme (FSCS) that protects client deposits up to £85,000 in case the broker becomes insolvent.

You can search the FCA website to confirm the broker’s status and check for any disciplinary action. The broker’s size and operating history are also worth considering. You can usually find these on the company’s LinkedIn page.

Also, the FCA imposes restrictions on the leverage available to retail traders. The maximum leverage for major forex pairs is 1:30, for non-major forex pairs, gold, and major indices it is 1:20. For commodities other than gold and non-major equity indices, the limit is 1:10, and for individual equities and other reference values, it is 1:5. For cryptocurrencies, it’s limited to 1:2.

Read more about best regulated forex brokers.

What to consider when choosing an FCA-regulated broker?

Most leading forex and CFD brokers have multiple entities, often a mix of top-tier regulators such as FCA, CySEC, or ASIC, and at least one offshore entity. To get the benefits of FCA regulation, you must open an account with the FCA-regulated entity of the broker. You need to watch out for this because some forex and CFD brokers will steer customers to open accounts at their offshore entity instead of the entity overseen by a top-tier regulator.

Are the fees competitive?

Working with a broker that keeps spreads and commissions to a minimum can make the difference between profit and loss at the end of the day. This is a crucial point for day traders. Also, don’t be caught off guard by miscellaneous account-related fees, such as inactivity and withdrawal fees. As a major hub for forex trading, you might expect that the UK is home to some of the most competitive forex brokers in terms of trading fees, and our tests proved this to be true.

Check out our list of best lowest spread forex brokers.

What is the minimum deposit?

Typically, the minimum deposits at CFD brokers are relatively low. For example, among FCA-regulated brokers, they can range from $0 in the case of CMC Markets to $100 in the case of FxPro.

What account types are available?

A broad range of account types helps a broker cater to different trader profiles. For example, a simple STP account may be the best for beginners in the markets, while an ECN/raw spread account can help sophisticated, active traders keep their costs to a minimum.

ECN accounts typically route orders straight to the interbank market, while STP accounts send orders directly to a counterparty that might be another STP broker, market broker, or ECN broker. Via ECN accounts, spreads are tighter and the speed of order execution is faster, making them suitable for active, short-term traders. However, a commission is charged in addition to the spread.

Read more about Best STP forex brokers and Best ECN forex brokers.

How to choose a trading platform?

When choosing a trading platform, prioritize one that is intuitive and easy to navigate to ensure a smooth start in the trading world. Opt for platforms, typically browser-based, that are developed by the broker as they tend to be more user-friendly. Key features to look for include watchlists, trading from the chart, search functions, news feeds, and a customizable interface.

Check out our dedicated guide on best forex platforms.

Platforms like MetaTrader 4 and 5 offer advanced features such as backtesting, automated trading, and a wide range of order types, although they might be less user-friendly. These considerations will guide you in selecting a platform that suits your trading style and needs.

Read more about best MetaTrader 4 brokers and best MetaTrader 5 brokers.

Is customer support reliable?

Having solid support on hand is essential. Check the hours of availability, for example, whether help is on hand 24/7 or only during business hours. Chat support is the most convenient, so look for an easy-to-access chat window built into the broker platform. In the case of a platform outage, it is also important to be able to contact support via phone.

What does being classified as a professional trader at an FCA-regulated broker mean?

Being designated as a professional trader at an FCA-regulated broker allows access to greater leverage, and trading in CFDs on cryptocurrencies. However, professional traders don’t benefit from negative balance protection, meaning you’re responsible for preventing your account from slipping into a negative balance and your losses could surpass your initial deposit. Also, certain categories of professional clients are not eligible for compensation under the Financial Services Compensation Scheme (FSCS).

What is required to be classified as a professional trader at an FCA-regulated broker?

To be eligible to be categorized as a professional client, you must meet two of the following three criteria.

• You have carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters.
• The size of your financial instrument portfolio, defined as including cash deposits and financial instruments, exceeds €500,000.
• You work or have worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.

How to avoid forex and CFD scams?

A common scam in the forex and CFD industry involves vendors offering a trading strategy that guarantees an outlandishly high return in little time. These may involve automated trading using bots or a signal service where trades are shared via chat or social media. Nobody can guarantee returns with certainty, and it is more likely that such strategies will lose money. When assessing strategy or signal providers, you should look for a live track record audited by a third party, and also be conscious that past performance does not guarantee future results.

Traders should also be cautious about opening an account with an unregulated offshore broker. Such brokers may offer a straightforward account opening process, bonuses, and high levels of leverage but client funds are typically not protected. Meanwhile, brokers regulated by top-tier authorities must undergo regular audits and are held accountable for misconduct. Traders can also benefit from having their funds held in segregated accounts, negative balance protection, and a compensation fund in the event of broker insolvency.

Related Broker Guides

• Best Forex Brokers
• Best CFD Brokers
• Best ASIC-Regulated Forex Brokers
• Best European Regulated Forex Brokers
• Best CySEC-Regulated Forex Brokers
• Best Forex Brokers for Beginners
• Best Regulated Forex Brokers

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