The FCA regulates over 50,000 financial firms in the UK including most forex and CFD brokers accessible to retail traders. It replaced the FSA in 2013 and operates independently of the UK government, funded entirely by fees from the firms it regulates.
For forex traders, the FCA is relevant because of three things: the Financial Services Compensation Scheme (FSCS) which covers up to £85,000 per person per firm if a broker goes bust, mandatory negative balance protection for retail accounts, and strict rules on how brokers can market and sell CFDs. Brokers must segregate client money from their own operating funds at all times.
Post-Brexit, the FCA kept ESMA's leverage caps (30:1 for majors, 20:1 for minors, down to 2:1 for crypto) but can now diverge from EU rules if it chooses. It has stayed aligned, focusing instead on tightening rules around how CFDs are sold — banning bonuses, requiring standardized risk warnings, and forcing brokers to publish the percentage of retail accounts that lose money.
Leverage Limits
The FCA applies the same leverage caps as ESMA, enforced through product intervention measures since 2018.
| Instrument | Max Leverage |
|---|---|
| Major currency pairs | 30:1 |
| Minor currency pairs, gold, major indices | 20:1 |
| Commodities (excluding gold), minor indices | 10:1 |
| Individual equities | 5:1 |
| Cryptocurrencies | 2:1 |
Trader Protections
- FSCS coverage up to £85,000 per person per authorized firm
- Mandatory negative balance protection for all retail accounts
- Client money must be held in segregated trust accounts
- Brokers must report client money holdings daily
- Standardized risk warnings including percentage of losing retail accounts
How to Verify a License
- Visit the FCA Register at register.fca.org.uk
- Search by firm name or FRN (Firm Reference Number)
- Confirm the firm holds the correct permissions — look for Dealing in investments as principal or agent
- Check the firm's status is Authorized, not EEA Authorized or Appointed Representative
Complaints & Disputes
Financial Ombudsman Service — www.financial-ombudsman.org.uk
If a broker fails to resolve your complaint within 8 weeks, escalate to the FOS at no cost. FOS decisions up to £415,000 are binding on the firm.
Brokers Regulated by FCA
- Pepperstone
- IG
- XM
- Interactive Brokers
- eToro
- Plus500
- OANDA
- FP
- Admiral
- Darwinex
- Velocity Trade
- FXTM
- Swissquote
- CMC
- Vantage
- FXCM
- London Capital
- Exness
- HotForex
- Forex.com
- XTB
- FxPro
- ThinkMarkets
- Tickmill
- Key To
- Capital.com
- HF
Frequently Asked Questions
- Does FCA regulation protect me if I'm outside the UK?
- FCA protections, including FSCS coverage, only apply to clients of FCA-regulated entities. If you're trading with a broker's overseas subsidiary — even one owned by a UK-registered parent — you are not covered. Check which entity holds your account before depositing.
- Is FCA regulation still valid after Brexit?
- Yes. The FCA is a fully independent UK regulator. Post-Brexit, UK brokers can no longer passport into the EU, and many have set up separate EU entities. The FCA's regulatory standards remain among the highest globally and it continues to enforce product intervention measures independently.
- How do I check if a broker really has an FCA license?
- Search the FCA Register by firm name or FRN. Verify the status shows 'Authorized' (not 'EEA Authorized' or 'Appointed Representative') and that the firm's permissions include 'dealing in investments as principal'. Many offshore brokers claim FCA regulation when their UK entity only holds a payment services license — check the permissions, not just the name.