Introduction
There are a lot of brokers out there in the market today seeking for traders to join their platforms. Many tend to offer some attractive offers to traders like offering them no-deposit bonus accounts, zero-spread accounts, rebates on positions opened, and a lot more. While some of these offers might look attractive to traders, they should not blindfold him into choosing the wrong broker. Choosing a good broker is an important task every trader must pay great attention to as choosing the wrong broker could jeopardize both his capital and positions taken in the market. An important factor considered while choosing a broker today is its regulation. Trading with a regulated broker gives the trader strong confidence that his activities with the broker are monitored and can hardly be manipulated. One of the major forex regulators today based in the UK is the Financial Conduct Authority (FCA). This body scrutinizes the activities of all the brokers operating in the country to ensure they comply with the standard for conducting financial services. Are you wondering why you should always trade with FCA-regulated brokers? Then you need to read this work carefully to find out. You will also find in this work the list of the best twelve FCA-regulated brokers in case you are seeking one to trade with.
Who is a broker?
Brokers are the middlemen that link the trader to the forex market. They receive the trader’s orders and execute them at the market. Most brokers charge the trader some commissions for their services which usually come in the form of spreads. Without the broker, it will be difficult for the trader to carry out online forex trading as he will need to go to the exchange market or bank to exchange his assets directly.
Meaning of FCA-regulated brokers
FCA-regulated brokers refers to those brokers registered with and approved by the Financial Conduct Authority (FCA) to conduct financial services within the UK province. FCA is in itself an independent brokers regulator that ensures that all brokers operating in the country are qualified to conduct financial services in the UK. They scrutinize the activities of these brokers and protect the interest of the trader against misconducts from the brokers. Before any broker is approved by FCA to operate in the UK, they will first need to meet the standard set by this body. This includes having a segregated account for holding the traders’ funds, having a minimum of 1 million GBP as operating capital, Ease of deposits and withdrawals, submitting their annual records, etc.
Importance of choosing an FCA-regulated broker
- It is difficult to manipulate the trader’s position by such brokers
- Safety of capital
- Ease of deposits and withdrawals
- Multiple financial instruments are provided for trading
- Quality services are rendered to their clients
How to identify an FCA-regulated broker
Not all brokers today claiming to be regulated by the FCA are in reality registered with them. Some brokers merely claim to be FCA regulated just to convince traders to join their platforms. To confirm if a broker is FCA regulated, the trader needs to copy the broker’s registration number with the FCA and then proceed to the FCA website to verify if the broker is registered with them. Otherly, one can as well visit the FCA website to see the list of all the brokers registered with them and the services they are permitted to render by this body.
List of Best Twelve FCA-regulated brokers
Saxo Markets
IG Markets
FXTM
HFM (HotForex)
FxPro
Capital.com
Pepperstone
Tickmill
XTB
Interactive Brokers
Forex.com
FXCM
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