UK Forex Brokers Regulated by FCA UK

The Financial Conduct Authority (FCA) is an independent financial regulatory body in the UK that regulates and oversees financial companies operating in the UK. The FCA, which was formerly known as the Financial Services Authority (FSA), was introduced in the year 2013 when the UK Government deemed FSA to be inadequate for dealing with financial irregularities during the financial crisis of 2007-08.

FCA is an independent organization that does not run on Government funds but is accountable to both the treasury as well as the parliament. The operating costs are recovered from membership fees and through other channels; therefore, the FCA is oriented towards maintaining a fair code of conduct for all firms that provide financial services to consumers in the UK.

How Does FCA Regulation Work?

FCA is a powerful authority that has been granted significant powers to regulate the operating standards of all financial companies operating out of the UK. It has the power to revoke licenses, oversee marketing and promotional materials, audit company financials, and ensure that the consumers get a reasonable deal while dealing with financial companies. FCA also possess the power to suspend any firms for up to a year for any alleged fraudulent activities, and can even suspend licenses indefinitely if they deem fit. Therefore, firms regulated under the FCA are expected to work in favour of their clients, and not against them.

Are FCA Regulated Brokers Reliable?

All trading brokerage houses operating in the UK are required by law to become regulated and licensed by the FCA. Therefore, FCA forex brokers are considered to be highly reliable due to the various laws outlined in the code of conduct that is prescribed by the Financial Services Act of 2012. The FCA is free to amend to these laws from time to time to safeguard the interests of the consumer.


How Is FCA Beneficial To A Consumer?

FCA is the governing authority that oversees the functioning of a financial company and how it interacts with the end consumer. Their main priority is to protect consumers against all types of fraud and financial crimes. FCA guarantees that the market integrity is kept intact by auditing the conduct of all registered organizations and ensuring that the financial system in the UK is kept healthy and successful.

FCA also promotes healthy competition in the market by allowing companies to attract consumers in the interest of fair and honest services. FCA is a financial watchdog that wants the consumers to benefit from all the strong competition as a result of an open and transparent market. At the same time, FCA also reinforces its stringent rules by carefully analyzing the actions of its members and by ensuring that none of the companies take advantages of any loopholes in the system.

Does FCA Provide Mediation Or A Complaint Resolution Service?

In short, FCA is only a regulatory agency, and it will not provide any mediation service or help in resolving a matter between consumers and FCA regulated brokers. FCA is a financial regulatory agency for all financial firms, including banks, trading brokers, mortgage lenders, insurance brokers, financial advisers, and even consumer credit firms. Therefore, it becomes virtually impossible for the FCA to investigate into individual claims, as the FCA regulates the conduct of more than 56,000 financial companies in the UK.

So, I have A Complaint against an FCA Forex Broker, What Should I Do?

All FCA Forex brokers are required by the FCA to have a sound complaint resolution department that should look into all consumer complaints. In the event of a consumer getting an unfair deal, the next logical step would be to contact the Financial Ombudsman Service with your claim. Ultimately, if that fails, the last resort would be to take the matter to the court.
However, most top rated FCA regulated Forex brokers usually tend to resolve consumer complaints in an effective manner, which is why the FCA is very effective against fraudulent activities. Brokers affiliated with the FCA stand to lose their regulation or licensing if the firm is found to be in violation of the rules stipulated by the FCA. The FCA also has the authority to seek hefty fines in penalties and refuse to provide licenses to such companies from operating in the UK.

How To Stay Protected From Scams & Find A Good Broker

FCA regulation is indeed a good indicator of the reliability of a broker, and it is essential for all UK consumers as well as traders from around the world to choose a broker that is regulated by an efficient regulatory body such as the FCA. However, there are instances where brokers or other types of financial companies attract clients by advertising false claims of being regulated by the FCA by using bogus license numbers and misleading links.

If you wish to ascertain the authenticity of a regulation, all you need to do is check the official FCA website to ensure that the licensing information provided by the company matches with the information provided on the FCA website. If you can’t still ensure the authenticity, take a look at the FCA Warning List to see if the company you are dealing with is listed there. You should also prevent companies that indulge in forced marketing such as cold calls, as FCA is clearly against such types of marketing.

It would also be a good idea to perform a thorough research and seek the help of certified and independent financial advisors to see if the company you are dealing with has a good record. Ultimately, try to stay away from brokers or firms that cannot provide genuine FCA licensing information upon request.

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