Best FCA Regulated Forex Brokers 2019

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Pro Tip: Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.
Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

EightCap

Regulated By:ASIC

Foundation Year:2009

Headquarters:N/A

Min Deposit:$100

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Your Capital is at Risk

Your Capital is at Risk

CMC Markets

Regulated By:FCA

Foundation Year:1989

Headquarters:133 Houndsditch, London EC3A 7BX

Min Deposit:$200

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Your capital is at risk

Your capital is at risk

City Index

Regulated By:ASIC, FCA, FSA(JP), IIROC, MAS, NFA

Foundation Year:1983

Headquarters:Park House, 16 Finsbury Circus, London, EC2M 7EB, UK

Min Deposit:$0

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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. Capital at risk

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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. Capital at risk

FXCM

Regulated By:AMF, ASIC, BaFin, CONSOB, FCA, FSB

Foundation Year:1999

Headquarters:N/A

Min Deposit:$50

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Your capital is at risk

Your capital is at risk

XTB

Regulated By:BaFin, CNMV in Spain, CySEC, FCA, IFSC

Foundation Year:2002

Headquarters:Level 34, One Canada Square, Canary Wharf, E14 5AA, London, United Kingdom

Min Deposit:$0

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Your capital is at risk

Your capital is at risk

Plus500

Regulated By:ASIC, CySEC, FCA, FSB, ISA, MAS

Foundation Year:2008

Headquarters:Building 25, MATAM, Haifa, Israel

Min Deposit:$100

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80.6% of retail CFD accounts lose money

80.6% of retail CFD accounts lose money

FCA Regulated Brokers Comparison Table

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BrokerRatingOfficial SiteRegulationsMin DepositMax LeverageTrading PlatformsFoundation YearPublicly TradedTrading Desk TypeCurrenciesCommoditiesIndicesStocksCryptoCommission on tradesFixed spreadsoffers promotionsOfficial Site
EightCap
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Your Capital is at Risk

ASIC

$100

1:500

MT4, MT5

2009

No dealing desk, STP

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Your Capital is at Risk

CMC Markets
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Your capital is at risk

FCA

$200

1:30

CMC Web Platform

1989

Dealing Desk, Market Maker

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Your capital is at risk

City Index
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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. Capital at risk

ASIC, FCA, FSA(JP), IIROC, MAS, NFA

$0

1:30

MT4, Proprietary

1983

Dealing Desk, DMA, Market Maker

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% 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. Capital at risk

FXCM
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Your capital is at risk

AMF, ASIC, BaFin, CONSOB, FCA, FSB

$50

1:30

MT4

1999

No dealing desk

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Your capital is at risk

XTB
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Your capital is at risk

BaFin, CNMV in Spain, CySEC, FCA, IFSC

$0

1:200

MT4

2002

STP

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Your capital is at risk

Plus500
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80.6% of retail CFD accounts lose money

ASIC, CySEC, FCA, FSB, ISA, MAS

$100

1:30

Plus500

2008

No dealing desk

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80.6% of retail CFD accounts lose money

Introduction to FCA (Former FSA)

The Financial Conduct Authority or FCA is the regulator for the financial services industry in the UK. Currently, it has jurisdiction over 56,000 financial services firms in the country. Its primary goal is to ensure the health of the UK’s financial industry. To achieve this goal, the FCA work towards protecting the right and interests of consumers, to encourage healthy competition in the financial industry and enhanced the integrity if the financial system.

The FCA has always acted in the interest of the general public and this is why it has become one of the preferred regulatory agencies around the world. Forex traders know that with the FCA looking after their interests, their money will be safe with any FCA regulated forex brokers.

FCA Forex brokers enjoy a high trust rating among forex traders from around the world as they are operating under the transparency guidelines issued by the FCA.

FCA Responsibilities

For any market to operate efficiently, there must be fairness and honesty. Consumers must know what they are getting when they purchase or consume a product. The same goes for the financial market. Investors must be able to invest in the financial markets with confidence to ensure their stability. They must be reassured that the money which they have invested will be safe and handled properly by the financial services providers.

Hence to ensure all financial service providers in the industry uphold their part of the agreement with the trader, most countries have established an independent regulatory body to safeguard the interest of consumers. In the UK, the FCA was established on 1 April 2013 for this very purpose after its predecessor, the Financial Services Authority failed miserably in its task in maintaining the integrity of the UK’s financial system during the global financial crisis in 2008. The FCA is an independent body which is self funded from the fees that it collects from the firms that are under its regulatory oversight. Nevertheless, it is still accountable to the UK’s Treasury department and to Parliament.

Empowered under the Financial Services and Markets Act 2000 and Financial Services Act 2012, the FCA is responsible regulating the conduct of financial services providers at both the retail and wholesale level. In addition, the infrastructure which supports these markets also comes under the jurisdiction of the FCA. The primary objective of the FCA is to ensure the smooth functioning of the financial industry and it does this by:

  • Securing a proper level of protection for consumers and investors
  • To secure and boost the integrity of the financial markets as a whole
  • To promote competition within the financial industry in the interests of consumers and investors

Other responsibilities of the FCA include:

  • The supervision of authorized persons
  • Monitoring compliance of regulatory requirements
  • Carrying out enforcement actions

In April 2014, the FCA also undertook the responsibility of regulating consumer credit industry, a role previously held by the Office of Fair Trading.

How FCA Regulation protects you

The FCA possesses a wide range of powers and in many cases beyond those enjoyed by its predecessors, the FSA. Some of these extended powers include:

  • The power to create product intervention rules
  • Preventing authorized persons from entering into some contracts which the FCA consider necessary to protect the interest of consumers or to further the competition objective.

Take note that the infringement of a product intervention rule imposed by the FCA could render an agreement being unenforceable against the relevant person and to the recovery of money paid or property transferred.

The FCA also has considerable say in how a financial services provider may market its financial products. It can place specific requirements on the products that the financial services provider must comply with. It also has the power to set a minimum standard which financial services providers are required to follow. Apart from the power to investigate companies and individuals, the FCA is also authorized to ban a product for as long as a year while it decides on whether to ban the product for an indefinite period.

The FCA work closely with a wide range of stakeholders both on a domestic level and international level in furthering its key objectives. Nevertheless, it takes a proportionate approach in maintaining regulatory oversight by focusing on areas which pose a higher risk to its primary objectives.

The UK’s financial industry contributes more than £65 billion in tax revenues for the UK economy. It also provides employment for more than 2 million people in the country. Given the fact that the financial industry, whether directly or indirectly, permeates into the lives of everyone in the UK, ensuring that the financial markets in the UK are able to function smoothly is a task which the FCA takes very seriously.

Guidelines for FCA Regulated Brokers

In addition, the FCA requires all FCA forex brokers to maintain a minimum of £1 million in operating capital before it can operate in the UK. While this capital requirement is significantly lower than those imposed by the NFA in the U.S, it is still considerably higher than most EU states require their brokers to maintain. In addition, the level of compensation under the FCA is also higher at a maximum of £50,000.

To become a FCA forex broker, companies must first to undergo a rigorous application process before they can be issued a license to operate in the UK. Once issued a license to operate in the UK, forex brokers are still required to comply with all the strict regulatory requirements imposed by the FCA at all times. These include:

  • Maintaining segregated accounts
  • Being a member of the UK’s compensation scheme

Should a dispute arise between a trader and a FCA forex broker, traders are also able to use the services the financial ombudsman services to resolve the dispute.

To check whether a forex broker is truly regulated by the FCA, you can always check with the FCA database to verify the broker’s FCA license number. The database also contains detailed history about the broker which can help a trader in making a more informed decision regarding his broker’s selection.

Conclusion

Now that we understand that the FCA (former FSA) is an important global regulatory agency which gives out licenses and protects the UK traders, you can go ahead and select one of these recommended FCA regulated forex brokers and start trading safely.