fca logoThe United Kingdom, with London not only being the capital of the monarchy but also one of the capitals of the Forex trading market, offers a very well regulated market in currency pairs.
As a lead actor in this industry, it is no surprise that the UK stays on top of things.
There are certain risks that the Forex business brings along which cannot be influenced, but risks related to bad broker management can and should be avoided. As a trader, you are already stressed about the happenings, the ups and downs in the market, and should under no circumstances be mistreated by your brokerage company.
To prevent misconduct and illegal actions in this business with high scamming potential, the UK government took the business under a closer look and established bodies to regulate the market and companies in the market. The FCA Forex brokers are trustworthy companies thanks to careful monitoring and strict rules enacted upon them.


The Financial Conduct Authority (FCA) is the strong force that keeps many broker companies transparent. The government body works with the HM Treasury and makes a massive effort to protect consumers and traders, enhance market integrity, and promote healthy competition in the interest of consumers.
There are 56,000 FCA regulated brokers, securing fair trade and a transparent market for consumers.
The UK’s number one regulator of business conduct is also the prudential regulator for 24,000 of the firms above. The responsibility of conduct and prudential regulation was transferred to the FCA in early spring of 2013.
The modern economy could not function without the Forex market since many economies rely heavily on the movements in the market. Therefore, the important role it plays is not to be neglected. The FCA takes its tasks very seriously, especially because they are aware of the influence the market could have on the government, companies, and individuals.
If they ensure a fair and competitive market, then consumers, staff, shareholders, and investors benefit from such a healthy market and ensure trust among UK citizens.
Goals of the FCA:
1. Steady and advanced integrity of the financial system in the UK
2. Protection of consumers and protection of the financial market and the UK economy in general
3. Promotion of healthy competition benefiting the consumers
The FCA is supervised by the Parliament and the Financial Ministry (Treasury), but yet it is not funded from the Monarchy’s budget, but from private sources.
Namely, they charge fees to the companies they regulate and create their own independent budget.
They submit annual reports to the Treasury who then send it to the Parliament for revision. All aspects of their conduct are being scrutinized by the MPs. If necessary, they can ask the FCA to submit specific data anytime, aside from the regular annual report.
The FCA works with:

  • Consumer groups
  • Trade associations
  • Professional bodies.
  • EU and UK regulators.
  • Different stakeholders.

Scope of Power

The FCA exercises great power regarding measures they can impose. They can freely investigate different organisations and people, and can prohibit a financial product up to a year. Under their purview, FCA Forex brokers are sometimes required to modify their promotions, if the FCA finds them misleading in any aspect.
The best Forex brokers UK are recognised as such because they are registered with the FCA and follow the rules and ensure a safe environment for their clients. The brokers are rewarded with trust from their clients who feel safer when they know their broker complies with the strictest regulations in the country.

Qualification Criteria

Applicants have to meet very high standards to be recognized by the FCA. The FCA reviews business plans, resources, budgets, risk handling systems, and the necessary qualifications lead employees should possess, as well as their experience and skills.

Risk management and supervision

Since there are more than 56,000 companies, the FCA established a system how to run check-ups. There are three important aspects:
– Proactive monitoring of the largest firms
– Supervision in case there is a risk based on an unusual event
– Monitoring firms that are exposed to the same type of risk

Implementation of Healthy Competition

The FCA has the power to implement and enforce EU and domestic laws that relate to financial services. They suppress cartels and abuse of a dominant position.
They enforce laws that prohibit setting too low prices to drive out the competition which means that there is a minimum price for all businesses. The minimum price cannot be that low not to cover the product or services costs. Price-fixing is also regulated by the FCA.
The FCA obligates their regulated companies to self-report on any deviation from the rule.

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The Rule of Transparency

The FCA tries to display as much information as possible making them available to the public. Their strategy includes various published reports and data on companies they regulate and about individuals. When they require information from companies they clearly state why they need it.
Internal audit reports are also being regularly published. They have to abide by regulations on confidential information, and sometimes it prevents them from disclosing important information. Nevertheless, they are allowed to disclose information if an individual or company is not going to be recognized by the readers. They simply use all means possible to maintain their integrity and the integrity of the financial market.

Supervision and Monitoring

The FCA is supervised by the FCA Board elected by MPs.
The FCA’s website provides detailed information on all of their activities and their chief employees. They include everything from the way they handle business to allowances and expenses, as well as details about the members of their Board.
They issued the FCA Handbook that contains all of the FCA’s Legal Instruments binding companies to work according to the rules set out in the handbook.
The FCA is the ultimate authority and support point for customers and traders in currencies. We see that they employ a transparent and excellently organised system that really provides a safety net in the business that allows a lot of room for potential fraudulent activities.
The UK is one of the leading countries in the financial market which means that they need this strong hand to guide their investors and companies in the right direction.

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