UK forex brokers
Brokers regulated in the UK are some of the most reputable financial services providers worldwide. One of the reasons for this is that London has always been a center for finance. Another, even more important factor, is the UK financial regulator - the Financial Conduct Authority (FCA). The FCA enforces some of the strictest requirements to forex brokers worldwide, sees to their compliance, and those who fail to meet the applicable standards are subjected to salty fines.
Here are some of the regulatory requirements UK forex brokers have to meet:
– Minimum capital requirement of GBP 730 000 in net tangible assets which must be maintained at all times;
– Segregated client accounts;
– MiFID regulations are still applicable, and probably most of them will remain in force even after the UK exits the EU. Some of these include a leverage cap of 1:30, provision of negative balance protection on a per account basis, regular transaction reporting, ban on trading incentives such as bonuses, and more.
– the FSCS coverage: The Financial Services Compensation Scheme is probably the most important guarantee for the security of traders’ funds. All UK brokers are required to participate in this system, and as a result, if any of them goes bankrupt, its clients can receive up to GBP 85,000 of their trading capital as a compensation.
Now that the UK is exiting the European Union, there are a lot of uncertainties in the forex sector, but the FCA works closely with other European regulatory bodies to solve all these problems and continue to ensure a stable financial market.
Below, you can find a list of forex brokers, authorized to operate in the UK.
