One of the most important financial centres of trade in the international currency market is London. The UK brokers have a high level of trust from traders due to the activities of regulators and control by the Financial Conduct Authority (FCA). So what makes them special?
In this review, we will look at the best forex trading brokers UK, how FCA works, what types of brokers are. You will also learn why British brokers are always associated with high-quality services and certain stability.
FCA — The Main Regulator Of Forex Brokers In The UK
FCA stands for Financial Conduct Authority. This British Service controls the financial companies, under its supervision are the financial markets. Forex brokers strive to obtain an FCA license that is reputable. This non-state regulatory body has been entrusted with the functions of ensuring financial security in transactions carried out on the markets and preventing crimes in the sphere of monetary circulation.
There are strict requirements for license holders. According to inspections, fines can be imposed if violations or illegal activities are found. As a rule, FCA license holders provide high-quality services. They compare favourably with competitors, guaranteeing confidence and calm work for traders. In the event of a broker’s bankruptcy, clients will be compensated under the program from the FSCS — Compensation Fund.
In addition to issuing licenses to brokerage companies, the FCA is busy with:
- Conducting investigations protecting the interests of the main participants in Forex trading.
- Monitoring the activities of financial institutions.
- Controlling the degree of aggressiveness of financial marketing.
- Compliance with business principles based on transparency and honesty.
- Suppression of attempts of unfair market manipulation.
- Development of new financial reporting standards.
The decisions of the FCA, for the most part, must be implemented immediately. Some can be appealed to the Financial Services Tribunal. The strict rules of the English regulator do not allow mass obtaining of licenses. The number of brokers with an English license regulated by the FCA is not so large. Information about them is available. You can visit the site of each company, compare conditions, ratings, and choose the right ones. The advantages of brokers in England include the provision of currency pairs in large quantities, maximum leverage of 400:1, easy deposit and withdrawal of funds through electronic payment systems, bonus programs, and consulting centres.
List Of Forex Brokers In The UK
Here is a list of the most famous UK brokers:
- FxPro was founded in 2006. The best broker, according to the Financial Times 2015–2020. Serves clients in more than 170 countries. Customer deposits are insured. The capital of the company is estimated at 100,000,000 euros. Four trading platforms. High credit rating score — 95.
- ADMIRAL MARKETS has been on the market for 19 years. Regulated affiliates worldwide. Access to 40 CFDs on currency pairs. Spreads from 0 pips.
- InstaForex was founded in 2007. Over 300 trading instruments. Leverage from 1:1 to 1:1000. Over 7,000,000 traders. Qualitative section of analytics.
- FXOpen was originally an educational centre, since 2005 it has launched brokerage services. You can start trading with minimal investment. Trading leverage from 1:3 to 1:500. Fifty-two currency pairs. CFD on gold, indices, oil, etc. Passive earnings are possible.
- eToro with 14 years of experience. A service for copying the work of successful traders was organized. There is no commission for copying trades.
One of the first countries to regulate the relationship between a client and an intermediary broker is the United Kingdom. The FCA is the main regulatory body. Its financing consists of fees for licensing activities. Customers who have chosen FCA-regulated companies and are registered in England can have peace of mind about world-class warranties and services.
Types Of Forex Brokers In The UK
Now that the world has become a global economy, you can trade in a variety of markets including Forex, Commodities, Stocks, and Futures. The best UK forex brokers will give you access to the foreign exchange markets and provide you with the tools and resources to learn currencies, trade in real-live, or even learn how the forex market works.
You will find two different types of Forex brokers on the internet today. Each has its own advantages and disadvantages:
- The first type of forex broker is the discount broker. Discount brokers are brokers that charge a higher commission than most other forex brokers but also offer discounts to their clients;
- The second type of Forex broker is the full-service broker. Full-service brokers offer all the tools and features you need to successfully trade Forex, as well as services such as access to news and data from around the world. However, it is possible to make successful Forex trading without a full-service broker.
The United Kingdom is a bright undisputed leader in global Forex trading and there are several good reasons for this. First and foremost, the Forex market in the UK is massive. Secondly, FCA provides security for customers and merchants by ensuring the confidentiality of personal information and financial transactions.