The Financial Conduct Authority (FCA) is the conduct regulator for financial services firms in the United Kingdom. It took over the regulation of forex and CFD brokers from the former Financial Services Authority in 2013, and today it is considered one of the most demanding regulators in the retail trading industry.
What FCA regulation means for traders
A broker authorised by the FCA must follow strict rules designed to protect retail clients:
- Segregated client funds: your money must be kept separate from the broker’s own operating capital.
- FSCS protection: eligible clients are covered by the Financial Services Compensation Scheme for up to £85,000 if the broker becomes insolvent.
- Negative balance protection: retail traders cannot lose more than their account balance.
- Leverage limits: capped at 30:1 on major currency pairs for retail clients, with lower caps on more volatile assets.
How to verify an FCA broker
Every authorised firm has an entry in the FCA Register with a unique Firm Reference Number (FRN). You can search the official FCA register by name or FRN to confirm a broker is genuinely authorised and to see the exact permissions it holds. Be cautious of “clone” firms that copy the details of a regulated business — always reach the broker through the contact details listed on the register itself.
In short
FCA authorisation is a strong signal of a broker’s credibility. It does not remove the risk of trading itself — you can still lose money rapidly on leveraged products — but it means the firm operates under one of the world’s most rigorous consumer-protection frameworks. You can compare FCA-regulated brokers in our broker reviews.