What is the regulation in UK Forex brokers?.
Top Forex Brokers in UK for Forex Trading. Britain has a long and proud history of trade and currency exchange. Known as a nation of merchants, the Brits have always seen trade as a way to increase their wealth. Top 10 UK Forex Brokers by TradersAsset. There is only one authority in the UK that regulates online financial trading. It is called the Financial Conduct Authority, or is more commonly referred to as the “FCA”.As with many other EU territories, UK Forex traders can deposit and trade with almost any broker that they will allow them to do so.
A tighter spread means that there is a bigger opportunity for traders to earn more money and minimise their losses. Leading forex brokers offer quite competitive spreads, as they are aware that traders can compare the spreads that are offered by different websites and always choose the ones that offer more competitive ones. As a trader, you are not prohibited from having accounts at more than one forex broker, therefore you can trade one currency pair with one broker and another with someone else, depending on the spreads that they offer.
In addition to the most important aspects which include the licencing, as well as the specifics of the trading offer, there are other things which every trader should consider before choosing the most suitable UK forex broker.
These things may seem unimportant, and perhaps they are less important compared to the offered pairs and the licence which are quintessential, but the following are also significant.
Most brokers offer more than one trading platform. In addition to being able to trade on your mobile device, you may also have access to an advanced platform which includes more interesting trade features and options aimed at more experienced traders.
Many brokers offer a No Deposit, or a First Deposit Bonus to all new players, and some have few more regular bonuses which can be highly beneficial. A confirmed FCA authorisation is a sign that the broker offers secure financial transactions, but there are differences in terms of the number of accepted methods and the speed at which the transactions are processed.
Some brokers charge fees on deposits made via some of the accepted methods. Traders want to know that should any problems arise they will be able to get all the necessary help and assistance. Customer support is usually provided via phone, email and live chat. Last but not least, most reliable and respected brokers give you an opportunity to learn more and get better and trading, via a range of learning materials, including videos, e-books, webinars and other useful tools.
The Financial Conduct Authority is in charge of regulating various branches of the financial industry, including retail forex trading. This independent body has an official remit and a range of tools at its disposal. Am I only allowed to trade major pairs, or pairs that include the UK pound? Unlike the US market , where there are restrictions on the leverage, UK brokers offer trading at pretty high levels of leverage, often up to The trading market hours depend on the currency pairs that you want to trade.
Different markets open and close during different hours of the day. You will have at least a few trading options at any time of the day, during working days. The markets are closed on Saturdays and Sundays. Broker Offer Devices Review 1 st. What body is in charge of regulating forex trading in the UK? Is there a limit on the leverage that brokers can offer? Do UK forex brokers charge any trading fees? What are the forex trading market hours for UK brokers?
Close Window Loading, Please Wait! To be able to perform its conduct regulatory functions properly, the FCA allocated entities into two categories as follows:. Three main pillars of approach are used by the FCA when it comes to conducting supervision of the 56, firms under its watch:. The FCA also conducts prudential regulation of over 24, firms. In other words, the FCA checks the state of financial health of asset management companies, financial brokerages stocks, forex , financial advisers, insurance brokerages and mortgage brokerages.
Once again, the FCA allocates firms on which it conducts prudential regulatory oversight into one of three categories:. The Financial Conduct Authority has been able to put in place a robust regulatory structure for the financial services industry and the UK financial markets.
As such, it has been able to put in place measures that have boosted market confidence. These are not just claims as it has been called upon time and again to step in where there have been issues with claims and other regulatory infractions. Offers over 12, instruments. See Details Try a Demo. Fixed Variable See Spreads. Live chat Phone support Email support Contact Details. Financial Conduct Authority, A Financial Conduct Authority an Let our tool do the hard work of finding your next broker.
Try it Now Visit BrokerNotes. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework.
Rankings are influenced by affiliate commissions. Here are some areas where City Index scored highly in: Allows hedging 3 languages. Social Trading see alternatives Share Dealing. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab. Protection of consumers of financial products including traders who trade forex and other financial market products is carried out at three intervention points: For each registered entity, the FCA maintains the following records: Trading names and contact details of regulated entities.
The names and details of entities operating within and outside the UK without FCA authorisation, exemption or approval. Origins of the Financial Conduct Authority FCA From the period covering , the regulation of the entire financial services industry comprising banks, brokerages, credit unions and other financial service companies was carried out by the Financial Services Authority FSA. The Financial Conduct Authority FCA , which would be responsible for the conduct of the 56, firms operating in the financial services industry in the UK and would also take over prudential regulation of 24, of these firms.
The Prudential Regulation Authority, which would be responsible for the majority of prudential regulation. Regulating the marketing of financial products Regulation of payment systems Supervision of banks in the UK Maintaining the new set of rules set out in for independent financial advisers To be able to perform its conduct regulatory functions properly, the FCA allocated entities into two categories as follows: Fixed portfolio firms, which have a supervisor and are supervised on a proactive basis using a system of continuous assessment that is unique to each firm.
Each individual firm is given a programme of work which is evaluated at key governance areas during regulation. Flexible portfolio firms are usually supervised using a different set of regulatory algorithms. Market-based assignments are used in conjunction with educational activity and other communication-based programmes to scan or any risks within the relevant sectors that these companies operate in.
In other words, flexible portfolio firms are assessed collectively within the sector they operate and not individually. Three main pillars of approach are used by the FCA when it comes to conducting supervision of the 56, firms under its watch: For the biggest firms, a system of proactive supervision is used.
Scans and stress tests are performed to show if there are any signs of trouble before they have even emerged. Reactive supervision which is event-driven is also deployed.
This means that the FCA may deploy certain measures to protect the market in response to the emergence of any overt or covert risks in any firm or entity.
This is done on an entity-by-entity basis. The FCA also scans multiple firms on a sector-by-sector to see if there are systemic risks affecting entire sectors of the financial markets. Where there is imminent harm to consumers and the markets, the FCA will intervene. Once again, the FCA allocates firms on which it conducts prudential regulatory oversight into one of three categories:
Close Window Loading, Please Wait! As always, we recommend that all traders look into the best brokers to trade with before registering.
Established in , ActiveTrades offers forex trading in mini and micro lots, a diverse product offering, and competitive spreads. The trading market hours depend on the currency pairs that you want to trade.