The Financial Conduct Authority (FCA) is the UK’s financial regulator and is renowned as the most stringent regulator of Forex brokers in the world. The FCA’s licencing fees and operating capital requirements are much higher than other tier one regulators and it has a long-standing reputation for guaranteeing trader security. Brokers regulated by the FCA must have segregated bank accounts for client funds, a minimum of 1 million GBP in operating capital and instantaneous withdrawal processing. The FCA also provides a compensation scheme of up to 50,000 GBP to protect traders against broker-related matters.

Why Forex brokers choose FCA

The Financial Conduct Authority (FCA) is one of the most reputable regulators worldwide. For this reason, most brokers intend to be licensed by FCA. The following are other reasons as to why FCA has over time been the regulator of choice.

1. It has stringent rules. In as much as FCA is among the bodies regulated by the European Union, it is stricter than the other regulatory bodies. FCA has been able to place significant fines on firms that violate rules and work against the interests of the clients, as a result it has earned FCA regulated brokers the trust of traders.
2. FCA covers Forex Brokers who have gone bankrupt. If at any instance a broker regulated by FCA goes bankrupt, a scheme known as the Financial Services Commission is able to cover a given amount for the clients.
3. Since it is a self-regulatory and a non-profit organization, FCA does not use the taxpayers' funds for its activities.
4. FCA’s self-governing nature allows it to work for rather than against a trader.
5. FCA has many protocols to adhere to, this is in a bid to ascertain authenticity of brokers. This has made it earn the trust of investors

The FCA is a highly-valuable protective component of the UK financial services system that has been put in place to protect consumers with little financial knowledge from organisations with more knowledge selling them complex and risky financial products.

Any organisation that is regulated by the FCA is mandated to treat the customer fairly, and in the absence of a customer directive, make the decision that best suits the interest of the customer.

An FCA-regulated organisation takes responsibility for the accuracy and transparency of the information they promote and maintain discipline in their internal processes that are designed to protect themselves and their clients.

A Forex broker that is regulated by the FCA will expect their advice and support to be available in helping set up internal processes to protect and remedy issues that should arise in their business.

Overall, an FCA-regulated broker can be trusted to protect your funds, never communicate misleadingly, and has the client’s best interest in mind when doing business selling clients financial products and services.

Further more, the FCA developed the comprehensive online portal, which brings all necessary information about brokers, presents freshly updated data and findings that support investors’ choice. Overall, FCA Regulated Forex Brokers providing high protection for any investor or trader, as the obligations towards the regulations are strictly accurate and sharp, which is confirmed by highly respected and regarded status of FCA worldwide itself.