FCA Regulated Forex Brokers

Written by Miro Nikolov

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: December 12, 2024

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• Jump to:
• Main Features
• Compared By Leverage and Commission per Lot
• FCA Forex Brokers by Spread
• The Financial Conduct Authority
• FCA’s Responsibilities
• Guidelines FCA Brokers Need to Comply With
• Requirements for Professional Traders
• Customer Protection
›

While forex is a decentralized financial market that enables easy trading over the counter, it is still a sector that requires stringent regulation in order to ensure safe and fair trading conditions for both traders and trading service providers. There are multiple regulatory bodies responsible for monitoring and regulating the forex market across multiple jurisdictions. In the UK, forex trading 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. 

   Axi

   Rating: 4.8

   The vast majority of retail client accounts lose money

2. 

   Pepperstone

   Rating: 4.6

   75.5% of retail investor 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

Main Features of the Best FCA Forex Brokers

1. TRADE NOW READ REVIEW
   Pepperstone

   Min Deposit

   $0

   Trading Instruments

   Forex, Indices, Commodities, Cryptocurrencies, Share CFDs, ETFs

   Regulators

   UK FCA (No.684312), CySEC (No. 388/20), ASIC (No. 414530), BaFin (No.151148), DFSA, CMA, SCB (Bahamas)

   Trading Platforms

   TradingView, MT5, MT4, cTrader

   Spread

   From 0.0 pips (Razor Accounts), 1 pip (Standard Accounts)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill

   Withdrawal Methods

   Visa, Mastercard, PayPal, Bank Transfer, BPay, Neteller, Skrill

   75.5% of retail investor accounts lose money

   Pepperstone operates in the UK under FCA license (number 684312). 90+ currency pairs supported. Retail traders are covered by negative balance protection. Maximum allowable leverage on FX major pairs 1:30, and 1:20 on minor pairs.

2. TRADE NOW READ REVIEW
   eToro

   Min Deposit

   $50 or $100 based on country ($10 for the UK)

   Trading Instruments

   Crypto, CFDs on Forex, Stocks, Commodities, Crypto, ETFs, and Indices

   Regulators

   FCA, CySEC, ASIC, MFSA, ADGM, FSA, FINRA/FinCEN, AMF, SEC, GFSC

   Trading Platforms

   eToro Investing, eToro App, TradingView, eToro CopyTrader

   Spread

   1 pip

   Leverage

   1:30

   Deposit Methods

   eToro Money, Visa, Mastercard, Neteller, PayPal, Skrill, iDeal, Klarna, Bank Transfer, Trustly, Przelewy24

   Withdrawal Methods

   PayPal, Skrill, Visa, Mastercard, Neteller, Trustly, Bank Transfer

   51% of retail investor accounts lose money

   eToro is a reliable broker, providing financial services to 35M+ users globally, including UK residents under FCA license number 583263. 55+ forex pairs supported. The broker adheres to the best practices for customer funds and assets security.

3. TRADE NOW READ REVIEW
   Admirals

   Min Deposit

   $100 ($1 for Invest MT5 Account)

   Trading Instruments

   CFDs on Forex, Indices, Stocks, Commodities, Bonds, ETFs, Cryptocurrencies

   Regulators

   CySEC (No. 201/13), ASIC (No. 410681), FCA (No. 595450), JSC (No. 57026), FSCA (No. FSP51311), EFSA (No. 4.1-1/46), CMA (No. 178), CIRO, FSA (No.SD073)

   Trading Platforms

   MT4, MT5, WebTrader, MT Supreme Edition, StereoTrader

   Spread

   From 0.0 pips (Invest and Zero Accounts), 0.5 pips (Trade Accounts)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Skrill, Klarna, Bank Transfer, PayPal, Neteller, iDeal, POLi, Perfect Money, Cryptocurrencies

   Withdrawal Methods

   Bank transfer, Visa, Mastercard, PayPal, Neteller, Skrill, Perfect Money

   73% of retail investor accounts lose money

   Admiral Markets provides UK traders with access to 8,000+ financial instruments across 7 asset classes, including 80 CFDs on forex. The broker complies with strict regulatory guidelines and high standards for customer protection (FCA license number 595450).

4. TRADE NOW READ REVIEW
   Vantage FX

   Min Deposit

   $50

   Trading Instruments

   Forex, Indices, Commodities, Shares CFD, ETFs, Bonds

   Regulators

   FCA (license no. FRN: 590299), VFSC (reg. No. 700271), ASIC (license no. no. 428901), FSCA (license no. 51268), CIMA (no. 1383491)

   Trading Platforms

   MetaTrader 4, MetaTrader 5, ProTrader, TradingView, Copy Trading

   Spread

   1.1 pips on Standard Account; 0.0 pips on Raw, Cent, and Pro Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Union Pay, Boleto, Bank Wire, Skrill, Neteller, Crypto, POLi, FasaPay, Perfect Money, BPay, Pagsmile, AstroPay, JCB

   Withdrawal Methods

   Visa, Mastercard, Union Pay, Bank Wire, Skrill, Neteller, Crypto, AstroPay, Perfect Money, JCB

   Vantage welcomes UK forex traders with proper licensing from the local financial regulator (number 590299). The product range spans 1,000 CFD products, including 40+ major, minor, and exotic forex pairs. Supported funding methods include VISA, MasterCard, and bank transfers.

5. TRADE NOW READ REVIEW
   Eightcap

   Min Deposit

   $100

   Trading Instruments

   Forex CFDs, Commodity CFDs, Shares CFD's, Index CFDs, Crypto CFD's

   Regulators

   SCB (No. SIA-F220), ASIC (No.391441), CySEC (No. 246/14), FCA (No. 921296)

   Trading Platforms

   MT4, MT5, WebTrader, TradingView, Capitalise.ai, FlashTrader

   Spread

   0.1 pips on Standard and TradingView Accounts; 0.0 pips Raw Accounts

   Leverage

   1:30

   Deposit Methods

   Visa, PayPal, Mastercard, Wire Transfer, Neteller, Skrill, Tether, Bitcoin, BPAY, Dragonpay, Fasapay, Interac, Pix, UnionPay

   Withdrawal Methods

   Mastercard, Visa, PayPal, Skrill, Neteller, Bitcoin, Tether, Wire Transfers, BPAY, Fasapay, Pix, Interac, UnionPay

   76.09% of retail investor accounts lose money

   Eightcap is a multi-regulated broker, operating legally in many jurisdictions, including the UK, under license number 921296 issued by the FCA. Retail clients are protected by the FSCS compensation fund. Supported trading platforms – MT4, MT5, and TradingView.

6. TRADE NOW READ REVIEW
   Plus500

   Min Deposit

   $100

   Trading Instruments

   CFDs on: Forex, Crypto, Indices, Commodities, Stocks, Options, ETFs

   Regulators

   FSA (No.4.1-1/18), FCA (No. FRN 509909), CySEC (No.250/14), FMA (No.47546), SFSA (No. SD039), MAS (No. CMS100648), DFSA (No. F005651), ASIC (No. 417727), BaFin registration, SCB (SIA-F250)

   Trading Platforms

   Proprietary desktop and mobile platforms

   Spread

   0.8 pips

   Leverage

   1:30

   Deposit Methods

   Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay

   Withdrawal Methods

   Debit Visa/Mastercard, Wire transfer, Apple Pay, Google Pay

   82% of retail investor accounts lose money

   Plus500 is authorized and regulated by the FCA under registry number 509909. The broker’s product range comprises 2,800 financial CFD instruments, including 60+ forex pairs with leverage capped at 1:30. Advanced trading tools are in place to limit losses and lock in profits, such as Stop Loss, Take Profit, and Guaranteed Stop.

   This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.

7. TRADE NOW READ REVIEW
   IG

   Min Deposit

   $50

   Trading Instruments

   CFDs on Indices, Forex, Shares, Crypto, Futures, Commodities, Options, Interest Rates, Sectors, Bonds, Knock-out trading

   Regulators

   ASIC, FCA, DFSA, CFTC, FMA, FINMA, BaFin, MAS, JFSA, FSCA, BMA (Bermuda)

   Trading Platforms

   MT4, L2 Dealer, ProRealTime, IG proprietary software, TradingView

   Spread

   0.6 pips CFD trading; 0.165 pips DMA trading

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Bank Transfer, Wire Transfer, Visa Electron, Discover, PayPal, Apple Pay, BPAY

   Withdrawal Methods

   Visa, Visa Electron, Mastercard, Discover, Bank Transfer

   70% of retail client accounts lose money

   IG, a world leader in finance, caters to UK traders under license 944492, issued by the FCA. Trade 17,000+ instruments with spread bets and CFDs. Built-in access to sophisticated third-party platforms, including MT4 and ProRealRime.

8. TRADE NOW READ REVIEW
   Axi

   Min Deposit

   $0

   Trading Instruments

   Forex, Stocks, IPOs, Indices, Commodities, Cryptocurrencies

   Regulators

   ASIC, FCA, CySEC, DFSA, FSA (Saint Vincent and the Grenadines)

   Trading Platforms

   MT4 Desktop, MT4 WebTrader, Axi Mobile

   Spread

   From 0.0 pips (Elite and Pro Accounts), 0.9 pips (Standard Account)

   Leverage

   1:30

   Deposit Methods

   Visa, Mastercard, Bank Transfer, Neteller, Skrill, AstroPay, Fasapay, Przelewy24, Boleto, Pix, Bitcoin, Ethereum, Ripple, Litecoin, Tether, Stellar, POLi, iDEAL, Sofort, Giropay

   Withdrawal Methods

   Mastercard, Visa, Bank Transfer, Przelewy24, Fasapay, Skrill, AstroPay, Pix, Boleto, Neteller, Bitcoin, Ripple, Ethereum, Litecoin, Tether, Stellar

   The vast majority of retail client accounts lose money

   Axi operates in the UK under license number 466201, complying with the FCA’s strict regulations and requirements. With a starting deposit of just $5, customers gain access to 140+ products, including 70+ forex pairs, with a maximum allowable leverage of up to 1:30. All trading strategies allowed.

9. TRADE NOW READ REVIEW
   Oanda

   Min Deposit

   $0 ($25 for Trustly, Visa, Mastercard)

   Trading Instruments

   Regulators

   FCA, CFTC, KNF, MAS, IIROC, MASASIC, FSA (Japan), FSC (British Virgin Islands)

   Trading Platforms

   MT4, TradingView, Oanda Web

   Spread

   From 0.6 pips (Standard Account), 0.1 pips (Commision Account)

   Leverage

   1:50

   Deposit Methods

   Visa, MasterCard, Credit & Debit Cards, Bank Wire, Skrill, Neteller

   Withdrawal Methods

   Visa, Bank Wire, Credit & Debit Cards, Skrill, Neteller

   72% of retail CFD accounts lose money

   UK forex traders are welcome to join Oanda, a top-tier broker operating under FCA license number 542574 and offering depth of market on all 70 supported pairs. Forex CFD trading on the award-winning OANDA Trade Platform and MT4.

10. TRADE NOW READ REVIEW
    Swissquote

    Min Deposit

    $1,000

    Trading Instruments

    Forex, Commodities, Stock, Crypto, ETFs, Bonds, various CFDs, and more

    Regulators

    FCA, MFSA, FINMA, DFSA, MAS, CySEC, FSC, FSCA

    Trading Platforms

    CFXD, MetaTrader 4, MetaTrader5

    Spread

    From 0.0 pips (Elite), 0.6 pips (Prime), 1.3 pips (Standard)

    Leverage

    1:30

    Deposit Methods

    Visa, Mastercard, Bank Transfer, Online Banking

    Withdrawal Methods

    Visa, Mastercard, Bank Transfer, Online Banking

    61% of retail investor accounts lose money

    Swissquote serves traders from the UK under license number 562170. The broker has waived forex commissions and offers competitive spreads from 1.3 pips on Premium accounts and 0.6 pips on Prime accounts. Overall, the forex and CFD offerings of the brand include 400 instruments.

FCA Forex Brokers Compared By Leverage and Commission per Lot

FCA Forex Brokers by Spread

The Financial Conduct Authority

Founded 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,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 lose the right to be protected by an official regulatory body if they become victims of fraudulent activities. 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

The 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 integrity, competitiveness, and fairness of financial markets, with forex regulation also falling under the remit of FCA. Besides consumers, the regulator works to ensure the well-being of local 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 facilitate the growth of the UK economy in 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 the 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

The 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

Highly 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.

Customer Protection

UK 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.