FCA Regulated Forex Broker

The Financial Conduct Authority is an independent supervisory body responsible for regulating and authorizing financial markets and financial services companies based in the United Kingdom. The organization is also held accountable by the UK Treasury and Parliament. The Financial Services Authority (FSA), the predecessor of the current British regulator (FCA), has been accused of numerous scandals during the recent economic crisis in the United Kingdom. This crisis led to serious reforms sanctioned by the British government, which led to the creation of the “FCA” and the “Prudential Regulation Authority” (PRA) as new reformed regulatory bodies. These reforms brought a whole new face to the financial services industry that was more efficient and effective.

In essence, Forex brokers that were previously regulated and supervised by the FSA are now under the full authorization of the FCA and the PRA. The new regulators were authorized to intervene and disrupt practices if they were contrary to the regulations in force and did not have to wait to apply these disciplinary measures after the fact or the occurrence of such scandals.

The FCA ensures that the ethics and integrity of businesses are controlled in all financial activities, and each investor or trader receives fair treatment so that the economy can thrive in its entirety. The FCA oversees the business conduct of more than 56,000 companies (including FCA-approved Forex brokers) in the UK alone, in addition to regulating more than 18,000 companies as a prudential regulator. Everything related to finance, from credit cards, loans, pensions and large investments in giant financial entities that influence the economy in one way or another, is under the control of FCA .

Three main objectives are at the top of FCA’s priorities; primarily to protect customers at all costs by providing financial security, secondly to monitor the financial markets while preserving the morals and honesty of the UK financial system as a whole, and thirdly to provide a safe and competitive environment for customers in the hope to lead to economic growth. FCA also collaborates with consumer groups, professional associations, professional bodies, national regulators, EU legislators, as well as many other shareholders.

FCA Compensation Schemes for Forex Brokers clients

The Financial Services Compensation Scheme (FSCS), founded in 2001 as another section of the FCA and established under the Financial Services and Markets Act 2000 (FSMA), is a deposit insurance and compensation scheme designed to protect the assets of investors. involved in financial services companies regulated by the FCA.

Essentially, when a business cannot meet its financial obligations to customers, the FSCS intervenes to compensate for the financial losses that customers have suffered. The compensation scheme of the FSCS, financed by levies on companies regulated by the PRA and the FCA, covers deposits, insurance policies, insurance brokerage (including travel agencies and holiday providers who sell said policy), investments, mortgages and mortgage agreements. In addition, European companies regulated by regulators from the British home state are also covered by the FSCS.

The compensation services provided by the FSCS are completely free and automatic, and you would be reimbursed for your losses if something happened to your financial service provider or if it could not pay the claims against it. It goes without saying that the FCA and the PRA set the limits of the protection offered by the FSCS. Consequently, claims relating to deposits, life insurance and general insurance policies are supervised by PRA, and other types of commercial compensation are authorized by FCA. In the event of bankruptcy, UK banks, mortgage companies, credit unions and regulated investment firms (including Forex brokers) are protected up to £ 85,000 (in 2017) per person, and if l savings are in a joint account, the amount of compensation will double and reach £ 170,000.

How to check FCA regulated Forex broker?

To find out if a financial company is regulated by the FCA, you must go to this address, https://register.fca.org.uk/ and search for the name of the company to obtain the information you need. At the top of the page, you will see a search field with the following description: “Search by company, person, product, reference number or postal code”. You can use any of this information to find the business you are interested in, just make sure you have the correct spelling to avoid mistakes. Below the search field, in the left corner, there is another option called “Advanced Search”, which you can use to further target your request. Here you can specify the type of business you are looking for, such as a firm, individual or collective investment plan, as well as the status of the business (authorized, not authorized, etc.).