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Over the centuries, the United Kingdom has managed to preserve some of the world’s most cherished achievements of human civilization. The education it provides is one of the highest quality, its monarchy is one of the oldest on the planet, and the geopolitical standing has barely shaken despite undergoing various hardships and two World Wars. The UK economy is also famous for being extremely strong and far-reaching, both within the European Union (EU) and in the international arena. The opportunities for profit that it offers are plentiful, and almost every sector of the British national economy is showcasing a gradual growth.
London is one of the major financial centers of the world. And London Forex trading session is one of the most liquid. In addition, the UK is home to a highly reputable regulator – the Financial Conduct Authority (FCA). In this guide, we’ll discuss FX trading regulations, we’ll give you our top list of brokers that operate in the UK, and more.
Top Forex brokers list in the UK
The UK FX market is considered as one of the biggest and most developed ones in the world. The country is full of various investment firms, and prop trading first, that are on a constant head-hunt for professional traders. When starting the trading journey, one of the first and most important steps to make is finding the right broker. Below you can see our recommended list. You can click on the brokers logos to read the full review on each.
Forex trading regulations in the UK
There is a good reason why the British FX market and the Forex trading brokers in the UK are considered as the most trustworthy, reputable, and prestigious, both across the EU and in the world. The local regulatory measures are both efficient, and not damaging to the overall growth of the market at the same time. Trading experience in the UK is defined by transparency, accountability, and safety.
The main regulatory body in the UK is the Financial Conduct Authority (FCA), which was established in 2013 instead of the old Financial Services Authority. It is responsible for overseeing financial markets in the UK. The FCA ensures safety of financial markets, improves stability, and promotes healthy competition between brokers.
One of the main functions of the UK’s FCA is to issue licenses to local and international brokers. The FCA is trusted globally. The regulatory body is considered to be top-tier by the traders from around the world. The regulations set by the FCA are in place to protect the interests of investors.
The most efficient way in which the FCA keeps the Forex trading brokers functioning flawlessly is by requiring them to submit regular audits and record keeping of their activities. Those regular check-ups are needed for the UK regulatory body to make sure that the brokers follow rules and guidelines.
Account segregation
One of the most common requirements that almost every regulatory body imposes upon its brokers is the necessity to keep the broker’s operational funds separately from the funds of its traders. Account segregation improves safety, as even if the broker goes out of business and gets liquidated, traders will have access to their money.
Leverage limitations
For CFDs (Contracts for Difference) and CFD-like products sold to retail clients, brokers are required to offer 2:1 to 30:1 leverage. It’s important to note that limitation on high leverage protects traders from opening oversized trading positions.
Clients’ interests first!
Most of the regulatory bodies across the world are defined by their overarching goal of operating in the best interests of the traders, however, in doing that, the FCA is showcasing a remarkable dedication. This entity does not only put forward strict conditions that the brokers have to meet if they want to obtain the FCA license, but also carefully control their operations upon the issue of the license. A good example of that is the close attention that the FCA pays to the Forex trading brokers that are potentially involved in malicious activities, such as trading against their clients. Doing that is strictly prohibited in the UK, and the failure to abide by this rule results in immediate strict punishment. Similarly, marketing potentially risky trading without providing a clear disclaimer of what it could potentially result in is also punishable by the FCA.
Summary
Having assessed the UK FX market, we can say that it is easy to recommend utilizing its benefits to both the beginners and the returning traders. British Forex market is one of the largest in the world and is duly entitled as the king of Forex markets. On top of the impressive outreach and the rapid speed of sustainable growth, the market is strictly regulated by the FCA, which puts customer security ahead of everything else. Traders should consider top brokers that offer financial cervices to the residents of the UK such as XM, AvaTrade, exness, and more in our list.
FAQs on the top Forex brokers in the UK
Is it legal to trade Forex in the UK?
Is Forex taxed in the UK?
