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Best FCA Regulated Forex Brokers 2020

FX Empire Editorial Board
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The FCA (former FSA) is an important global regulatory agency that gives out licenses and keeps an eye on UK based brokerage firms. On this page you will find the best FCA regulated Forex Brokers based upon our independent research and through feedback from our users. In the course of our research we look at security, product quality and reliability of these brokers.

The brokers below represent the best FCA Regulated Forex Brokers

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BrokerRatingOfficial SiteRegulationsMin DepositMax LeverageTrading PlatformsFoundation YearPublicly TradedTrading Desk TypeCurrenciesCommoditiesIndicesStocksCryptoCommission on tradesFixed spreadsoffers promotionsOfficial Site
CMC Markets
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

ASIC, FCA

$0

1:500

CMC Web Platform

1989

Dealing Desk, Market Maker

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

XTB
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75% of retail investor accounts lose money

BaFin, CNMV in Spain, CySEC, FCA, IFSC

$0

1:500

MT4, xStation 5

2002

STP

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75% of retail investor accounts lose money

Plus500
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76.4% of retail CFD accounts lose money

ASIC, CySEC, FCA, FSB, ISA, MAS

$100

1:30

Plus500

2008

No dealing desk

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76.4% of retail CFD accounts lose money

Tickmill Ltd
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.27% and 73.32% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CySEC, FCA, FSA

$100

1:500

MT4

2014

No dealing desk

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.27% and 73.32% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FXCM
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69.66% of retail investor accounts lose money

AMF, ASIC, BaFin, CONSOB, FCA, FSB

$50

1:30

MT4

1999

No dealing desk

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69.66% of retail investor accounts lose money

eToro
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62% of retail CFD investors lose money

ASIC, CySEC, FCA, MiFID

$200

1:30

cTrader, Currenex, eToro Platform, Keystone, Marketspulse, Mirror Trader, MT4, MT5, Tradologic, Zulutrade

2007

Market Maker, No dealing desk, STP

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62% of retail CFD investors lose money

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.

Here’s a list of Best FCA Regulated Forex Brokers

Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

CMC Markets

Regulated By:ASIC, FCA

Foundation Year:1989

Headquarters:133 Houndsditch, London

Min Deposit:$0

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

CMC Markets is a multi-asset class spread betting and CFD broker with over 30 years of experience, regulated by the UK’s Financial Conduct Authority (FCA) and thus offering segregated funds and a high level of security and safety. The CMC Group is a publicly-traded company on the London Stock Exchange.

The broker offers 3 different trading accounts: spread betting, CFD and Corporate accounts. Each account offers users to trade on more than 9,000+ trading instruments covering Indices, Forex, Cryptocurrencies, Commodities, Shares and Treasuries with spread betting offering commission-free trading and CFD and Corporate accounts offering commission-based trading on Shares only.

Pros: Cons:
  • FCA UK regulated and publicly traded company on the London Stock Exchange.
  • 9,000+ trading instruments covering multiple asset classes.
  • Feature-rich proprietary Next Generation trading platform.
  • News and analysis from in-house market analysts.
  • Steep learning curve for beginning traders using the Next Generation advanced trading platform.

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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75% of retail investor accounts lose money

XTB is an award-winning CFD platform that supports Forex, indices, commodities, stock CFDs, ETF CFDs, and cryptocurrencies. For Forex, XTB supports 48 currency pairs with low-cost spreads. Customers of XTB can choose between trading on the xStation 5 or MT4 platforms. For leverage accounts, this brokerage offers leverage of up to 200:1.

Stock and ETF CFDs all attract a fixed commission of 0.08% per lot across the two types of accounts.

XTB was founded in 2002 with headquarters in Warsaw. It is regulated in markets across Europe by the IFSC, FCA, KNF, and CySec. XTB has a free demo account and a Trading Academy set of courses for beginner and intermediate traders.

Pros: Cons:
  • Choose between two excellent trading platforms (xStation 5 or MT4 platforms)
  • A collection of 3000+ trading instruments across six asset classes
  • Low spreads
  • Fewer Forex pairs than some top competitors
  • No 24/7 support

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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76.4% of retail CFD accounts lose money

Plus500 has been in the brokerage business for a decade. They boast of 317,000 clients from all over the world. They are properly regulated in four different countries including Australia, UK and Cyprus. The trading platforms are simple, user-friendly, fast and secure. Platforms that can be used across multiple devices and operating systems are available for trading in various situations.

No educational materials are available, which is a huge minus. Furthermore, no research materials (else then the economic calendar) or technical analysis is provided.

Pros Cons
  • 2,000+  CFD products available for trading across global markets, including cryptocurrency CFDs
  • Offers guaranteed stop-loss orders
  • Multiple regulations from different countries. Regulation includes FCA, ASIC, CySEC and MAS.
  • Over 100 chart indicators are available in the web platform
  • Lack of content and news headlines
  • Lack of Trader Education to clients
  • No phone support offered

Tickmill

Regulated By:CySEC, FCA, FSA

Foundation Year:2014

Headquarters:1 Fore Street, EC2Y 9DT, London, United Kingdom

Min Deposit:$100

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.27% and 73.32% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Tickmill was founded in 2014 and is regulated by the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Seychelles Financial Services Authority (FSA).

The broker provides more than 80+ CFD instruments to trade on covering Forex, Indices, Commodities and Bonds through three core trading accounts called the Pro Account, Classic Account and VIP Account. They also offer a demo trading account and Islamic swap-free account.

Pros: Cons:
  • Multiple regulations and licences.
  • Commission-free trading accounts available.
  • Competitive spreads and overnight swap charges.
  • Impressive range of trader research tools and analysis.
  • No stocks available.
  • MetaTrader 5 not available.

FXCM

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

Foundation Year:1999

Headquarters:0 Gresham Street, 4th Floor, London EC2V 7JE, United Kingdom

Min Deposit:$50

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69.66% of retail investor accounts lose money

FXCM Group is an international online forex and CFD brokerage brand. Founded on 1999, The company is based in the UK. The brokerage firm also maintains offices in several jurisdictions such as Australia and South Africa.

In terms of tradable products, FXCM offers trading in the spot forex markets, cryptocurrencies, Treasury bond (the bund) and Contract for Difference (CFDs) for market indices and commodities. Due to the new ESMA regulation, the maximum leverage offered by FXCM is now restricted to 1:30 for major currency pairs.

Pros:  Cons:
  • Regulated Broker
  • Multiple choices of trading platforms
  • Numerous free trading tools provided
  • Low minimum deposit requirement
  • Comprehensive educational section
  • Limited product portfolio
  • No longer accepts US clients after losing US regulatory license

eToro

Regulated By:ASIC, CySEC, FCA, MiFID

Foundation Year:2007

Headquarters:Kanika International Business Center 7th Floor, 4 Profiti Ilia Street Germasogeia, Limassol, Cyprus

Min Deposit:$200

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62% of retail CFD investors lose money

eToro is an online trading platform that was founded in 2007 by the Assia siblings and their friend David Ring in Tel Aviv, Israel. Formerly known as RetailFX, eToro is the pioneering online broker for social trading. Their Openbook social trading platform in fact changed the nature of the way beginner online traders can trade the financial markets. It made the markets accessible to everyone, no matter what their level of experience by creating a user-friendly environment and allowing traders to copy the trades of other traders’ strategies automatically.

Pros: Cons:
  • Highly regulated broker (FCA, CySEC and ASIC)
  • Innovative trading platform
  • Wide range of assets to trade with
  • Ability to earn 2% management fee as an Investor trader
  • Spreads are higher than average
  • Does not have the MetaTrader platform

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.

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