FCA
Financial Conduct Authority - UK's top-tier financial regulator, globally respected.
The FCA is the UK's financial regulator - the gold-standard Tier-1 licence. FCA rules include retail leverage caps, negative balance protection, and access to the Financial Ombudsman.
FCA (Financial Conduct Authority) is the UK's financial services regulator, widely considered the gold standard globally. FCA-regulated brokers must meet strict capital requirements, segregate client funds, and provide negative balance protection. The FCA also requires brokers to publish the percentage of retail accounts that lose money and to offer negative balance protection, so losses can never exceed your deposit. It is the benchmark most other regulators are measured against.
How It Works
- Regulates all financial services firms in the UK
- FSCS protection up to £85,000 per person
- Leverage capped at 30:1 for retail forex
- Strict rules on marketing and client money
Trading Tips
FCA regulation is considered the best protection
Verify brokers on FCA Register before depositing
FSCS compensation if broker fails
FCA Example
Say you hold 20,000 pounds with an FCA-regulated broker and it collapses. The FSCS covers you up to 85,000 pounds, your balance sat segregated from company money, and negative balance protection meant you could never owe more than you deposited.
How Traders Use FCA
Filter brokers by licence first, country second, costs third. Search the FCA register yourself rather than trusting a badge on a homepage, because clone firms fake those badges constantly.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.