The UK’s Financial Conduct Authority is known for being the most strict regulation of brokers in the entire globe. The safest trading brokers are those who are FCA regulated. Additionally, the FCA regulated brokers offers a compensation plan with a maximum payout of 50,000 GBP to shield traders from broker-related issues.
In this guide, we will discuss the Best FCA Regulated Brokers in the UK based on our independent research and various considerations,
What is FCA?
The FCA is the main financial and activity regulator that approves and monitors financial institutions in the UK. Their principal goal is to safeguard customers, and they are responsible for protecting traders, investors, and others from fraud and unfair trading practices.
At the time this article was written, the FCA regulated the conduct of more than 51,000 distinct firms, banks, and brokers operating in the UK financial market. In simple terms, the FCA is in charge of ensuring that every broker and other financial service that wishes to operate in the UK are properly regulated.
Now, a broker must adhere to very severe rules involving safety, trader and fund protection, fairness, and correct pricing in order to be approved by the FCA. Because of this, it is possible to trust any broker who has been granted an FCA license.
Why you should utilize a FCA Regulated Brokers?
You must choose an online broker that is regulated by the FCA to prevent any legal difficulties, as it is also prohibited for brokers to sell unlicensed trading products.
Additionally, the FCA will support you in pursuing damages or charges if something bad happens to your accounts, funds, or personal information. In other words, FCA will defend you both inside and outside of the trading floor.
Choosing brokers that are under FCA regulation gives a tonne of additional benefits. For instance, because of the stringent requirements, only the best internet brokers may receive an FCA license. In other words, you can be sure that you have chosen one of the top brokers in the UK by choosing a broker who is governed by the FCA.
And with that said, we believe it is evident why using FCA-licensed brokers is essential for a secure trading environment. Really, there is no justification for anyone to take the chance and trade with an unlicensed online broker.
Fund Protection
We wish to highlight that fund protection is one of the most significant services provided by regulated brokers. No matter where a broker is headquartered or licensed, they are never permitted to combine trader funds with corporate funds. Your money is safeguarded and kept out of the company’s direct reach in this way.
This helps defend against hacking and other cyber security concerns in addition to safeguarding you in the event that the broker declares bankruptcy or has their accounts frozen.
Best FCA Regulated Brokers 2022
1. Admiral Markets
Admirals, a broker established in 2001 with offices in the UK and Estonia, is also regulated by the CySEC, ASIC, and JSC in addition to the FCA.
Admiral markets provide multi-asset trading on a wider range of instruments than other brokers. Tradeable instruments include, among others, bonds, stocks, indexes, currencies, commodities, and ETFs. The company also offers some of the best cryptocurrencies available, however, these are not permitted by the FCA or JSC regulations.
Admiral markets is the home of the MetaTrader Supreme Edition, a plugin that provides technical analysis on almost every financial instrument and has full compatibility with the MT4 and MT5 platforms. Users that deposit more than 5000 EUR, which is much more than the minimum deposit threshold, are additionally given a VPS service in addition to the free Trading Central.
On four active accounts, Admirals boasts outstanding trading conditions. All accounts have a 25 USD minimum deposit requirement, with spreads averaging 0.8 pips (EUR/USD) on commission-free accounts and 6 USD (round turn) on zero accounts.
The hefty deposit fees levied on accounts with currencies other than those offered by the broker are a deterrent for individuals who are thinking about trading with Admirals.
2. XTB
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With over 2100 financial assets available for trading, XTB, an FCA-regulated STP broker, offers a greater selection than is normally offered by other brokers. Categories of tradable investments include currencies, indexes, commodities, stock CFDs, ETF CFDs, and digital currencies.
There are just two active accounts available at XTB, both of which have typical trading charges in comparison to other brokers of a similar nature but no minimum deposit restrictions. The standard account’s spreads are typically 1.40 pips (EUR/USD) and the Islamic Account’s spreads are 1.5 pips (EUR/USD). All clients must utilize XTB’s own platform, xStation 5, which has garnered honors for its functionality, quick execution times, and user-friendly design.
Through its Trading Academy and one-to-one mentoring program, XTB focuses on offering top-notch support for traders. These materials are great and cater to both new and seasoned traders. Additionally, XTB regularly updates its Market News section with market analysis and trading suggestions, and its helpful customer support is accessible to assist traders with technical or account-related questions.
The XTB Group is a governing body for numerous companies that are subject to various national regulations all around the world.
3. IG Markets
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One of the most popular brokers and the biggest CFD operator in the market by revenue, IG Markets, is accessible with two low-cost trading accounts, one of which provides rapid access to markets. IG Markets may have the largest collection of CFDs in the industry and allows trading on more than 17,000 assets, including Currencies, indexes, stock CFDs, commodities, cryptocurrencies, options trading, ETFs, bonds, and interest rates.
With no minimum deposit requirements and narrow spreads that average 0.85 pip on the EUR/USD, IG Market’s trading fees on both accounts—the OTC Account and the DMA Account—are minimal when compared to those of other brokers in a comparable industry. Trading can be done using the acclaimed IG Markets platform, MT4, and L2 Dealer, a platform designed especially for DMA users. In addition to a wide array of trading instruments, IG Markets provides a top-notch selection of educational and market research resources to assist new traders in getting started.
Overall, IG Markets is our top-rated broker and the finest broker for both novice and experienced Forex traders. IG Markets is tough to match because of regulation from the FCA and ASIC, a lengthy history of happy clients, and widespread industry recognition.
IG Markets is governed by 17 national regulatory bodies, including the BMA, ASIC, the UK’s FCA, and the New Zealand FMA. The company has 19 offices worldwide.
4. Markets.com
Markets.com’s brand is owned by Finalto Pty Limited, a unit of Playtech Limited, a company that trades on the LSE and is a part of the FTSE 250 Index. In comparison to other brokers, Markets.com offers traders quick, affordable trading on more than 2,200 financial instruments. Tradeable assets include stocks, currency, commodities, indexes, cryptocurrencies, exchange-traded funds, and bonds.
MT4, MT5, and Markets.com’s award-winning proprietary platform, Marketsx, all come with full support. Marketsx is a cutting-edge multi-asset trading platform that is jam-packed with features. In addition to its many other capabilities, they include over 14 fundamental, technical, and sentiment-based trading features, professional analysis, in-depth charting, and comparative tools.
When compared to other brokers of a similar nature, Markets.com offers minimal trading expenses, with spreads starting at 0.8 pip on the EUR/USD, no commissions, and sensible minimum deposit requirements. Additionally, compared to other brokers, Markets.com offers superior customer service, and each trader is given a personal Account Manager who can help them with any questions they may have about their account or how to use the platform.
The brand is run by a number of organizations that are subject to regulation in several countries, including the UK’s FCA, Europe’s CySEC, Australia’s ASIC, and the BVI FSC for international clients.
5. Plus500
One of the most affordable FCA-regulated brokers in the UK is Plus500. Spreads for FX trading begin at just 0.6 pip, and for important stock indices like the S&P 500, spreads begin at just 0.5 pip. There are no transaction commissions, monthly account charges, deposit charges, or withdrawal charges.
This broker is a wise choice if you want to build a well-diversified portfolio because it offers a wide variety of assets to trade. More than 2,000 stock CFDs, 70 currency pairings, 25 commodities, and 26 indices are all available through Plus500.
A wide variety of investors will find Plus500’s user-friendly website and mobile trading platform to be appealing. It is loaded with technical indicators, sketching tools, an integrated news feed, and an economic calendar so you can stay up to date on all of the important events affecting the market.
We also like the market sentiment score provided by the trading platform, which helps you to keep track of changes in investment momentum all through the trading session. However, we found a critical issue in Plus500’s desktop, online, and mobile platforms: price notifications are not synchronized between them.
Factors for choosing the best FCA regulated brokers
Due to the stringent regulatory environment in which they operate, all FCA-regulated brokers can be regarded as secure, and most of them are extremely strong overall. But in order to learn what makes each broker unique from the others, it is crucial to look at the specifics of each one. When contrasting FCA- regulated brokers, take into account:
Regulation
Your trading account could not be FCA-regulated, even though your broker is. Onboarding UK residents onto a different license where trading conditions, like leverage, can be changed without the FCA’s scrutiny is becoming a more typical practice for FCA-regulated brokers. A trader should be aware that their trading account is controlled and that the FCA will not enforce its restrictions in foreign areas, even if this is not inherently harmful. Don’t sacrifice the FCA’s regulatory vigilance for altered trading conditions if you value it.
Platform choice
There are several different industry platforms available to traders, each with advantages and disadvantages. Always compare platforms when comparing brokers because special features or a wide range of platforms may alter your trading experience.
Trading costs
Each broker will charge for their services, but each will do it using a separate set of expenses and pricing structures. Market maker brokers will charge a wider spread than ECN brokers, who will also charge a commission based on volume. We compare brokers by examining how much it costs to trade 1 lot of EURUSD, and we encourage traders to do the same.
Minimum Deposit
Depending on the type of account, different minimum deposits may apply, with greater minimum deposits frequently indicating better terms. Always take into mind the required minimum deposit for the type of account you intend to open.
Deposit and Withdrawal Methods
The majority of FCA Regulated brokers accept bank transfers, credit cards, and online payments made through Skrill and Neteller. A few brokers also accept Bitcoin. Before making a deposit, always double-check the withdrawal costs.
How to begin with FCA Regulated brokers?
You should be prepared to begin now that you are fully informed about FCA-regulated brokers. But don’t worry if you haven’t yet located an FCA broker you are comfortable working with. You can review our list of FCA-licensed brokers further down this page.
If you are prepared to begin trading, please examine the 4-step sign-up guide provided above. This will enable you to start trading right away through an FCA broker.
Step 1: Open an account
You must first visit the website of the FCA-regulated broker of your choice. Finding the “sign up” page is the next step. Enter your email address and a strong password on this page to create a new trading account.
Step 2: Verify Your Identity
Your chosen brokerage will need to verify your identity before you can proceed any further. FCA brokers are obligated by law to ask for information about you in accordance with KYC (know your customer/client) laws. This includes your identification, your financial condition, your trading experience and knowledge, your risk tolerance, and so forth.
You must therefore present a copy of your passport or driver’s license in addition to an official utility bill from the previous three months.
Step 3: Make Deposit
You can return to the site and make a deposit as soon as your identity has been verified and the broker has sent you an email with your registration information.
Paying options include Bank transfers, Debit/Credit cards, and also e-wallets such as Skrill, PayPal, and Neteller.
Step 4: Start Trading
It is highly recommended to start with a demo account so you can gain a thorough understanding of the platform before you start using real money.
Instead, “paper funds” will be provided for you to deal with in actual market circumstances. Using a sample account feature is a terrific method to test out alternative tactics, even for seasoned traders. This will provide beginners a chance to practice tracking price changes and conducting technical analyses.
Conclusion
Other internationally renowned authorities are in charge of some of the best FCA-regulated brokers. They are the best starting points because this elevates their standards above the competition. The fact that we did all of the testings and evaluating for you is the finest part. Therefore, just select the one that satisfies your unique criteria and begin trading.
Regardless of where they live, we advise all traders to consider utilizing an FCA-regulated broker.
Frequently Asked Questions
What is the FCA?
The FCA, a financial regulatory agency with headquarters in the UK, is in charge of overseeing financial institutions that offer services to consumers, like internet trading brokers.
Which brokers are under FCA regulation?
Numerous brokers who cater their services exclusively to UK consumers are under the FCA’s supervision. These brokers frequently fall under the jurisdiction of multiple organizations, which enables them to provide services to numerous other dealers all over the world.
Which FCA-regulated brokers offer the best high leverage?
Although there are many trustworthy brokers, this list contains some of the best.