Top Forex Brokers in UK for Forex Trading
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FCA is a self-regulatory organization of the UK that monitors the numerous activities and conduct of all types of financial organizations in conjunction with the Prudential Regulation Authority of the UK. After the banking crisis inthe UK Government decided to split up the powers of the FSA between two different entities.
The Government entrusted the Bank of England with the duties to create stability in the financial markets through macro and microeconomic regulation, while the FCA was assigned duties to oversee the conduct of financial institutions for a transparent and ethical financial marketplace for all investors.
FCA is responsible for stringent regulatory protocols that have forced Forex brokers as well as market participants to adhere to strict guidelines to reduce instances of frauds that are still rampant in the industry.
Top uk regulated forex brokers Swiss decision and the subsequent market volatility saw numerous brokers going bankrupt without compensating clients top uk regulated forex brokers a sufficient manner. However, such a compensation scheme is only available if a broker is unable to repay its clients through credible top uk regulated forex brokers as a result of broker liquidation or if top uk regulated forex brokers assets are frozen.
FCA had faced a few criticisms in the recent past, but ever since the Government of UK started entrusting more powers with the organization, FCA has been acting in the best interests of the general public. FCA is indeed one of the most preferred regulatory agencies in the world, and traders trust the authority for its transparent guidelines that are oriented towards the investor, rather than the broker. Although the operating capital is significantly smaller than the NFA regulatory requirements, FCA compensates through other regulatory frameworks that guarantee safety of client funds.
Overall, FCA is considered to be a highly trusted and reliable regulatory authority for Forex trading. FCA operates independently, and the operation costs are raised through membership fees from member firms. Therefore, FCA does not use taxpayer money to fund its top uk regulated forex brokers, which provides it complete autonomy.
FCA regulated brokers have to undergo a rigorous regulatory procedure to achieve a valid FCA license, which not only helps companies to operate in the UK, but also provides the necessary licenses to cater to investors in the entire European Union through the EEA license. Consequently, brokers regulated elsewhere in Europe can also provide top uk regulated forex brokers services in the UK under the EEA agreement.
Therefore, unlike NFA regulation, an FCA license is not compulsory for Forex brokers to operate in the UK, as they can be situated anywhere in mainland Europe and still entertain traders and investors from the UK through a valid European regulatory license.
Brokers who are licensed by the FCA receive a unique license number that can be used to identify the company and search the FCA database for vital business data. The FCA website also provides a detailed history and other valuable information on a regulated broker, which can help investors to make an educated decision.
FCA also provides information on all brokers that come under the EEA umbrella, thereby allowing traders to be informed about brokers that falsely claim to be regulated directly under the FCA regulation. FCA also provides weekly newsletters and periodic updates about member firms and consistently updates their member database to warn investors about potential scams and frauds.
Due to the relatively lower amount of operating capital and the ease of doing business in the UK, several brokers prefer the UK as their base of operations. In fact, FCA supports healthy competition among Forex brokers by facilitating a secure environment for brokers to offer the best services without making any compromises on the quality or the transparency of operations.
Financial markets such as spread betting and binary options trading are also made legal in the UK, which comes directly under the FCA regulation.
Spread betting also enjoys a tax-free status in the UK, which has enabled several Forex trading and spread betting brokers to base their operations in the UK. Here is a list of all trusted and reliable FCA regulated Forex brokers in the industry:.