The FCA i.e. Financial Conduct Authority is an institution responsible for the monetary services industry in United Kingdom. Currently, the FCA has jurisdiction over 55,000 monetary services companies in the UK. As a forex trader, be notified that courtesy of the role played by FCA of acting as a watchdog in the forex market i.e. looking after your interests and those of other forex trading participants, your money is safe if you are cooperating with an FCA regulated best forex broker UK based.
What You Need to Know About the FCA
The FCA was introduced in 2013 and it replaced the FSA i.e. Financial Services Authority. It was established with a new mandate and regulatory framework to maintain the stability and strength of not only the UK’s monetary markets, but also the safe coordination of its monetary services companies.
The FCA possesses the power to enforce and/or introduce the rules that govern the financial services industry in the United Kingdoms, and can choose to investigate both individuals and organizations that are suspected of disobeying them. The FCA has powers that it utilizes to carry their day-to-day operational objectives. Some of the wide-reaching powers of the FCA include:
* Promoting competition in the monetary market in the interests of customers
* Enhancing market integrity and protecting the monetary system of the United Kingdom
* Securing a suitable level of protection for customers
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The Role of FCA for Forex Brokers in UK
Best forex brokers UK based are licensed and controlled by the FCA. The law in the United Kingdom states that any forex broker based in the UK should be licensed and supervised by the Financial Conduct Authority.
As such, best forex brokers UK based that are regulated by the FCA are great and exceedingly reliable since they are entitled and bound to comply or follow the various rules and regulations which are outlined in the constitution. The following are some of the roles of FCA for UK based forex brokers:
1. Regulating and Controlling Forex Brokers in the United Kingdom
It is the role of the FCA to set the minimum standards that forex brokers must meet in order to qualify to enter and participate in the forex trading market. The FCA might force any forex broker to withdraw their services from the forex market if they fail to meet those standards.
As a forex broker aspiring to be the best in the UK, be informed that failure to adhere to the various standards set by the FCA can make you suffer from a number of pitfalls including the FCA imposing an indefinite ban on you that can hinder you from participating in the forex market for a long time period.
2. Supervising Forex Brokers
The FCA conducts a supervisory duty with forex brokers, making sure that they treat all their clients i.e. the forex traders cooperating with them fairly. The FCA also supervises forex brokers in the UK and ensures they operate in a safe manner and don’t behave in a way that can trigger unwanted risks in the forex trading market.
3. Registration and Authorization of Forex Brokers
All the UK based forex brokers are required to be registered by the FCA before they are authorized to operate in the forex market. The registration procedure followed by forex brokers in the UK in their attempt to be permitted to operate by the FCA takes approximately seven months and demands a fee.
As a forex broker in the UK, in order to be registered and allowed by the FCA to operate in the forex market, you must meet the regulatory standards set by the FCA and promise to work with your clients in an open as well as proactive manner.
How the FCA Regulation Role Benefits Forex Traders
Since the FCA is a regulating authority and oversees the functioning of forex brokers, forex traders are protected against different kinds of frauds and financial crimes. The FCA assures the forex market integrity by observing and monitoring the different activities of all the forex brokers registered under them.
Bottom Line
As a forex trader, ensuring that you cooperate only with the FCA regulated forex brokers when the need arises is vital since you are certain they will treat you fairly and will not discriminate you in any manner. If you are looking for a reputable broker in the United Kingdom, the expert you select should not only be the best forex broker in UK, but should also be registered by the FCA.
