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FCA Regulated Forex Brokers

Written by Miro Nikolov
Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.
, | Updated: November 25, 2024

Forex trading in the UK is regulated by the Financial Conduct Authority (FCA). Choosing a properly regulated broker provides traders with essential protections and a fair trading environment, both crucial for successful forex trading.

  1. Pepperstone
    Rating: 4.7
    75.5% of retail investor accounts lose money
  2. Axi
    Rating: 4.3
    The vast majority of retail client accounts lose money
  3. eToro
    Rating: 4.2
    51% of retail investor accounts lose money
  4. Eightcap
    Rating: 4.2
    76.09% of retail investor accounts lose money
  5. Plus500
    Rating: 4.1
    82% of retail investor accounts lose money
  6. Oanda
    Rating: 4.1
    72% of retail CFD accounts lose money
  7. Admirals
    Rating: 3.9
    73% of retail investor accounts lose money
  8. Swissquote
    Rating: 3.8
    61% of retail investor accounts lose money
  9. IG
    Rating: 3.7
    70% of retail client accounts lose money
  10. Vantage FX
    Rating: 3.5
TradingPedia’s team has compiled data for the best FCA-regulated brokers catering to customers residing in the UK. We have ranked them by considering several important factors, including minimum deposit requirements, supported trading instruments, regulation, trading platform integrations, spreads and commissions, leverage, and payment methods.

Main Features of the Best FCA Forex Brokers

FCA Forex Brokers Compared By Leverage and Commission per Lot

BrokerMin DepositMax LeverageCommission per LotTrustpilot Rating
1. Pepperstone$01:30 (Retail ASIC, CySEC, FCA); 1:500 (Professional); 1:400 (CMA)$0 (Standard Account), $7 round-turn (Razor Account)4.7
2. Axi$01:30 (Retail)
1:500 (Professional)
$0 on Standard Account; $7 round trip on Pro Account4.3
3. eToro$50 or $100 based on country ($10 for the UK)1:30 (FCA, ASIC, CySEC); 1:50 (FINRA); 1:500 (FSA)$04.2
4. Eightcap$1001:30 (ASIC, CySEC)
1:500 (FSA)
$0 on Standard and TradingView Accounts; $7 round turn on Raw Accounts4.2
5. Plus500$1001:30 (1:300 for Professional Accounts) *Professional clients lose their ICF rights$04.1
6. Oanda$0 ($25 for Trustly, Visa, Mastercard)1:30 (Europe)
1:50 (US)
1:20 (Singapore)
$3.50 on Zero Accounts4.1
7. Admirals$100 ($1 for Invest MT5 Account)1:30 (Retail)
1:500 (Professional)
$3 per lot3.9
8. Swissquote$1,0001:100 (Initial Account Leverage)
1:400 (Professional)
  • $/€0 on Premium and Prime Accounts;
  • $/€2.5 per side per lot for Elite Accounts
3.8
9. IG$501:30 (Retail)
1:500 (Professional)
$03.7
10. Vantage FX$501:30 (Retail)
1:500 (Professional)
$3 per side on Raw; $1.50 per side on Pro3.5

FCA Forex Brokers by Spread

BrokerEUR/USDUSD/JPYGBP/USDUSD/CHFAUD/USDEUR/GBPUSD/CAD
1. Admirals0.1101.001.20.40.000031.1
2. Vantage FX0.20.50.40.60.50.30.3
3. IG0.850.91.401.951.010.92.1
4. eToro1.01.02.01.511.51.5
5. Swissquote1.00.61.01.21.01.21.2
6. Pepperstone1.00 (min)1.01.00 (min)1.11.21.21.42
7. Eightcap1.00 (min)1.111.41.211.2
8. Plus5001.21.51.51.71.31.52
9. Axi1.21.41.21.51.31.11.4
10. Oanda1.61.82.11.61.21.31.9

The Financial Conduct Authority

RegulationFounded in April 2013, the Financial Conduct Authority (FCA) is the financial regulatory body, overseeing nearly all financial services firms and markets in the UK. It is based in London, with offices in Leeds, Edinburgh, and colleagues located in Belfast and Cardiff. FCA’s predecessor, the Financial Services Authority (FSA), regulated the sector from 2001 to 2013.

In addition to granting licenses and supporting a robust financial system, the regulatory authority is committed to securing customer protection, enhancing market integrity, and fostering competition.

British traders can enjoy peace of mind when they create accounts with regulated UK Forex brokers, as they comply with the highest standards of consumer protection.

FCA’s Financial Services Register provides access to the full list of financial firms and the activities they have permission to perform. Brokers can be searched by name, part of the name, or reference number. If they do not appear on the register, this means they do not hold a license. FCA also provides warning notes of clone firms and unregulated brokers to ensure the best protection of consumers.

UK traders are not held legally accountable if they have been trading with brokers not regulated by the FCA. However, if they do so, they will not be protected if anything goes wrong. Traders are advised to check the regulatory status of the broker they wish to register with to ensure they have access to all consumer protection mechanisms, should any problems arise.

FCA’s Responsibilities

ASIC’s ResponsibilitiesThe FCA is tasked with regulating the conduct of nearly 42,000 businesses dealing in the financial sphere in the UK. The organization makes rules and issues guidance and standards, to which financial companies must adhere. The regulator is empowered to authorize and register financial companies and individuals.

To ensure a fair and transparent environment for consumers, the authority constantly monitors the honesty, competitiveness, and fairness of financial markets. Besides consumers, the regulator works to ensure the well-being of businesses, and the overall growth of the UK economy.

The organization has outlined its main objectives into three main groups:

  • Protecting consumers from bad conduct
  • Protecting the integrity of the UK financial system
  • Facilitating competition to serve the interests of consumers in the best possible way

Since 2023, the financial regulator has taken on a secondary objective to promote the international competitiveness and growth of the UK economy over the medium to long term. The FCA has been committed to ensuring compliance with international standards. Further information on the main roles and objectives of the regulator can be found in the Financial Services and Markets Act 2000 (FSMA).

As the organization is an independent public entity, it relies exclusively on fees charged to regulated companies. The FCA is accountable to the Treasury and Parliament. Each year, an annual report is compiled detailing the progress made toward the statutory objectives. It is delivered to the Treasury, which then resubmits it to Parliament.

A Parliament’s Treasury Select Committee (TSC) monitors and tracks the work of the FCA through hearings held three times per year. Additionally, the regulator responds to queries from MPs and peers.

In cases of regulatory failures, the FCA is obliged to conduct an investigation and report the findings to the Treasury.

Guidelines FCA Brokers Need to Comply With

Guidelines ASIC Brokers Need to Comply WithThe FCA is among the most reputable regulatory bodies in the financial services industry and is known for its stringent laws and regulations, ensuring fairness, transparency, and security. Each forex broker operating on the territory of the UK must be authorized by the FCA. Regulated companies must provide the details for their licensing and registry number on their website homepage or under a dedicated section for regulation.

There are three main categories when it comes to FCA forex licenses: dealer licenses, intermediary licenses, and restricted broker licenses. To become an FCA-regulated broker, companies must fulfill minimum capital requirements to ensure they can meet their financial obligations.

  1. Dealer licenses refer to the so-called Market Makers, with a minimum capital requirement set to £750,000. This license provides applicants with the right to operate a B-Book and function as the client’s counterparty. The minimum capital requirement for an intermediary license is set to £150,000. Straight Through Processing (STP) brokers and brokers offering the A-Book model fall into this category. These two types of licenses give power to forex brokers to offer contracts for difference (CFDs).
  2. Restricted broker licenses come with the smallest minimum capital requirement of £75,000. These brokerage companies are allowed to market and sell financial products but are not empowered to hold customer funds.

    License holders are obliged to submit monthly financial statements to clients as well as position records. They must set up their physical offices in the UK and employ qualified professionals. Companies must provide a proper business plan, Anti-Money Laundering (AML) manuals, and Know Your Customer (KYC) information of directors, owners, and officials.

  3. Client fund segregation and the Financial Services Compensation Scheme are other important guidelines that regulated FCA forex brokers must adhere to. We will examine them in greater detail later in the current publication.

    Last but not least, FCA-regulated Forex brokers must comply with specific leverage limitations on the financial instruments they provide. The maximum allowable leverage for major forex pairs is 1:30. The leverage for other currency pairs is 1:20.

Requirements for Professional Traders

Requirements for Professional TradersHighly experienced traders willing to open professional trading accounts with UK forex brokers need to meet specific criteria. Most important of all, they should not forget that professional trading accounts come with greater risks involved.

Brokers typically require traders to answer several questions to see if they qualify or not for a professional trader status. The eligibility criteria involve the number and size of trades they have completed per quarter in the last year. Additionally, brokers typically inquire about their financial instrument portfolio, including cash deposits. Typically, it is expected to exceed €500,000. Lastly, brokers inquire about traders’ experience in the financial sector in a professional position.

Traders who qualify to become professionals benefit from improved margin rates across global markets. Based on traders’ monthly trading volume, some brokers offer monthly cash rebates. A dedicated account manager is another advantage that professional traders have over retail clients.

Once they become professionals, traders must waive some of the protections that retail clients in the UK normally have. Negative balance protection is one of them, meaning that professional traders’ balances may fall under zero and they will have an obligation to repay. Traders must also bear in mind that most brokers tend to communicate with their professional customers in more sophisticated language, considering their level of expertise.

Customer Protection

Customer ProtectionUK traders benefit from one of the highest levels of investor protection globally. There are many customer protection mechanisms in place, ensuring traders deal in a fair and transparent environment.

First of all, license-holders must convey the risk associated with trading forex and other financial instruments in a clear, visible, and understandable manner. The compulsory risk disclosures must be present not only on their websites but also on all marketing materials. They must display the percentage of retail investor accounts losing money when trading.

Moreover, FCA-regulated forex brokers must keep all customer deposits in segregated bank accounts, separate from their company funds. They are not allowed to use these funds.

Additionally, all FCA-authorized forex brokers are obliged to participate in the country’s Financial Services Compensation Scheme (FSCS). If brokers cannot fulfill their financial obligations, customers are eligible for reimbursement of up to £85,000.

In case of breaches, traders can file complaints with the FCA. The regulator explains how the complaint procedure works and the steps traders must take to file a complaint when necessary.