Benefits of Using an FCA Regulated Broker

Introduction

The fact that traders often entrusted huge amounts of money to the brokers for trading, makes it very necessary to be very careful in choosing the broker to trade with. This underscores the role of the regulators in ensuring that brokers comply with the terms of service reached with the traders. This work has therefore addressed the major benefits of trading with FCA regulated broker.

Meaning of brokers

Brokers are intermediary bodies that link the traders to the foreign exchange market. They execute the client’s orders directly at the market and deliver him the proceeds.

What is an FCA regulated broker?

The term FCA regulated broker is broadly used to refer to those brokers that are fully registered and scrutinized by the Financial Conduct Authority (FCA). This body is one of the major government instituted authorities in the UK; that monitors the activities of all Forex brokers, especially those operating in the UK to ensure that they comply with the regulatory demands, as well as keep trust in their agreement with the traders. All FCA regulated brokers are given an official license to render financial services to traders within the UK.

Major benefits of using an FCA regulated broker

The role of the FCA in sanitizing the financial market today can never be neglected. Without them some brokers today can easily bridge the terms of the contract with the client or even abscond with the investors’ funds without anyone questioning them. These important roles played by the FCA have been highlighted below.

• Security of Funds: There exists greater security for funds deposited with FCA regulated brokers. This is because they are mandated by the FCA to hold all the clients’ funds in a separate account. Added to this, all funds deposited with the FCA regulated brokers are insured.

• Ease of deposit and withdrawals: An important benefit of trading with an FCA regulated broker is the fact that they provide multiple options for deposits and withdrawals which makes it very easy for clients to deposit and withdraw their funds.

• Keeps accurate record of all transactions: FCA regulated brokers often rendered account annually to the FCA. Hence, they always record all the financial transactions of the clients on their platforms for future reference.

• Wide range of financial instruments: FCA regulated brokers often provided more pairs for trading on their platforms. This gives the traders more opportunities to diversify their portfolios.

How to identify an FCA regulated broker

Identifying an FCA regulated broker is an important task every trader must pay attention to. Not all brokers who claim to be regulated by the FCA are fully registered with this body. Some fraudulent brokers forge their license numbers as registered with FCA.

To find an FCA-regulated broker, the trader needs to copy the company’s license number issued by the FCA and then login into the FCA website via www.fca.gov.uk  to verify if the broker is registered with them with the given license number.

Major factors to consider while choosing an FCA regulated broker

• Trading fees and commissions: The amount charged as spreads for trading using the FCA regulated brokers could vary. However, only those with lower trading fees and commissions for using their platforms are most recommended for trading.

• Trading platforms: Brokers are expected to provide excellent trading platforms to make trading easy for their clients. They are to make their platforms accessible on MT4 as well as MT5 for advanced traders.

List of Best Ten FCA regulated broker

• eToro
• Pepperstone
• Plus500
• XTB
• Capital.com
• Hantec Markets 
• XM
• HFM (Hotforex)
• AvaTrade
• Forex.com