If you are from Europe, the range of the brokers you can choose from is enormous. Still, the majority of the licensed European brokers would either posses CySEC or FCA license. While Limassol remains the heart of forex in EU, London has always been a financial capital. This is why FCA forex brokers are generally more respected and trust than other brokers. Even though the regulation is resourceful to obtain, many institutions managed to become UK forex brokers. Also there are some brokers that lost their FCA license due to misconduct. This is why it is important to read our best FCA forex broker reviews and find the best broker!
FCA Forex Brokers Showcase
Every quarter Forex Bonus Lab takes a look at the best FCA Forex Brokers, checks their the offers and selects the best FCA forex brokers. As there are over 50 brokers with an FCA license, Forex Bonus Lab is constantly updating this section and awards a champion with the Best FCA Forex Broker title.
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Best FCA FX Brokers Comparison
As with the best forex brokers, Forex Bonus Lab looks up the best FCA fx brokers, breaks them down into categories, chooses the best ones and provides the comparison to you. In the tables below you can see best FCA forex brokers in their own category. Check out our FCA broker comparison table, see the main detailed at a glance and read best FCA brokers review in detail!
What is special about UK Forex Brokers?
There are are many reasons to sign up with one of the FCA regulated forex broker. Forex Bonus Lab has listed the major four below.
Security. FCA Brokers treat clients fairly and won’t hide with your deposit.
Insurance. Your deposit is safe even if the broker goes bankrupt.
Professionalism. FCA Staff has to pass tests and examinations.
Resolutions. Your complaints will be handled and questions answered.
Check More FCA Forex Broker Reviews
There are more and more brokers obtaining FCA regulation nowadays. The main reason for this is the sense of security it gives to the traders due to the protection of the funds. You can check the most recent reviews of the brokers regulated by Financial Conduct Authority here.
What is FCA Regulation and What are FCA Regulated Brokers Forex?
Forex brokers can simply be defined as your gateway to the Forex market. In other words, a large percentage of forex traders in the market gain access to it through a Forex broken. While there are some quality forex brokers out there, there are some people who have mistakenly chosen scam brokers when opening their accounts. That’s why it is important to pay your attention to several important factors when selecting a forex brokers.
First of all, you need to check where your forex broker is located and who regulates it. If you are looking for the details of a Forex broker that is located in United Kingdom, you can obtain information from the Financial Conduct Authority as all the forex brokers in the country are regulated by it. In other words, you can simply visit the official website of FCA and look for the customer service history of a specific broker. If you find a number of complaints against a specific broker from the traders, you should probably stay away from it.
If you are planning to enter the world of Forex trading, it is always better to have a clear understanding about the regulation. FCA is the self-regulatory organisation that is responsible for regulating the futures industry in UK along with forex brokers. The main objective of FCA is to keep forex traders away from abuse and fraud, which has become a common issue within the industry. They also deal with drafting regulatory frameworks and handling dispute resolution. All the forex brokers who are registered with FCA are obligated to maintain a net capital of at least $200,000 as a guarantee to customer positions. This will give opportunity for all the traders to trade with FCA registered forex traders without any doubt on mind.
All the forex brokers who are registered with FCA will have to follow a set of rules. The most important tiles are associated with trading strategies, hedging and leveraging. FIFO (First in First Out) rule holds a prominent place out of them. In here, all the traders are requested to close their oldest trades first once they have more than one open position on a specific currency pair. Brokers who are not complying with FIFO will may get in a trouble with a regulator.
Hedging is not allowed in the forex trading industry that can be found in United Kingdom. It is the responsibility of FCA registered brokers to prevent it from happening. Moreover, the regulator does not mandate all the registered brokers to offer a leverage up to 50:1. This is why with an FCA regulated broker you can get geared frequently up to 500:1. However, other brokers offer much higher leveraging than this and we can see some brokers who even offer very high leveraging up to 2000:1. As you can see, it is always better to stick to a forex broker who is registered with FCA as it has the potential to keep you away from hassle.
In contract to CySEC and other local EU regulation, FCA is usually perceived as a safe choice. This is also true because of the obligation to segregate clients’ funds. Next to this, there is a guarantee by the FCA that your deposit up to 50,000 GBP is secured from the broker’s bankruptcy.
FCA Spread Betting Brokers
In order to earn extra income the intelligent direction is to do some investment for that you should be skilled enough to bit professionally. Before you begin to trade or invest some cash you have to learn a few tricks to become successful in your spread trading and investment. Whether you are interested in the financial market of stock, bonds, commodities or forex, you can easily earn smart profit from spread betting. That can only be possible if you are wise enough and know the basic techniques of this type of betting. In spread betting you should be aware of financial securities industries, the current value of the stock and tips and strategies to bet successfully so that you always get a net income in the hereafter.
What is Forex Spread Betting?
The original concept was devised in UK from sports spread betting, but when it was amalgamated with enormous potential profits offered by the financial markets, investors rapidly realise that this type of betting can prove to be a more beneficial strategy to earn a maximum turnover.
Similar to the traditional buying of shares of stocks from the market and selling them for profit, spread trade rely on correct betting on the rise and fall of the current market prices. However, you do not own the assets on which you are trading. Instead the profit and loss simply depend on the lift and the decline of the prices of underlying assets, relying on the current status of the marketplace. It is an easy way to of guessing on the increase and collapse of prices, as it is a bet on which you will decide either the rate of the stock will decrease or upswing. How much gain or loss you will earn depends on the actual climb and tumble of the market, similar to the traditional style of buying shares and selling it when the price increments.
This case of betting is not for everyone, but it does hold a wide demand due to its versatility and worth. It is necessary to research about the product you are interested in betting on, and also you should have some basic knowledge about how the process work.
You should be aware that in case of making any capital investment, there are many advantages and yet risk involves at the same time.
What is the difference between Forex Trading and Spread Betting?
In general, there is almost no difference. As spread betting is only applicable for the UK, the main idea about spread betting on Forex is how the tax office sees your activities. If you are trading on a Forex or any other market, you are expected to pay taxes, as the profits delivered from trading are actually capital gains. When you are making spread betting, this is seen by the tax authorities as gambling, hence you are not required to pay taxes on your winnings. In other words, a Forex spread betting account is essentially the same Forex trading account, yet it comes with no tax expenditures.
Advantages of Spread Betting
- The investors can earn profit both from the rise and fall of prices in the market. Just you have to bet smartly.
- No broker or dealing fees are incorporated in trade.
- In Most of the countries this type of trading is exempted from tax and stamp duty.
- You can trade on margin, this means maximising profit through power.
- You can access financial markets worldwide through a single account and currency.
Risk of Spread Betting
The major risk involved in this case of betting is the potential of exaggerated loss due to power or influence factor. For this you have to make sure that only investing money that you can truly afford or on which you can bear the loss. Knowing the INS and out of the market help you make smart and sensible trading.