The FCA license is the most popular among broker licenses. Let's see what it is and whether traders can trust brokers with this license. Forex brokers have their own regulators, terms and conditions. In addition, it is normal for traders to check the broker and want to review their licenses, legal information, etc. Most brokers are licensed by FCA. Let us highlight a detailed look at the license of FCA brokers and traders. Following these useful tips, you are just a few steps from the Best FCA Forex Brokers. So read, compare, feel free to open an account now!
About the FCA regulator
The FCA (Financial Conduct Authority) is a non-governmental independent organisation that controls the UK financial market and reports directly to the UK Department of Finance. FCA is the successor to the FSA (Financial Services Authority), a service that has long been the only UK regulator in the provision of financial services. In 2013, the FSA was divided into two regulators – FCA and PRA. The second regulator will oversee larger financial institutions like big banks or insurers. FCA has broad powers, which allows it to effectively regulate the UK market. Currently, the FCA has great authority not only within the UK, but also on the world stage as a whole. The main goal of the FСA is to organize transparency and the absence of fraud among financial companies. Therefore, the FСA requires the companies regulated by it to be as informative and honest as possible. The companies subject to mandatory control and licensing include:
- Brokerage companies;
- Banking institutions;
- Investment companies;
- Funds (including pension funds);
- Mortgage companies;
- Insurance companies;
- Other financial companies.
Key FCA benefits
The main task of this regulator is to monitor the activities of dealing centers, as well as preventing violations by brokers. If the regulator finds a violation, he has the right to require the broker to compensate for the loss of the client. If the broker refuses to pay compensation, the regulator has the right to revoke his license. In addition, the regulator is entitled not only to revoke the issued license, but also to prohibit an unscrupulous broker from advertising its financial services, which once again indicates the broad powers of this regulator. Also, financial services with too high a risk level may be banned.
The FCA regulator has the right to regularly check the activities of broker companies in order to ascertain the level of quality of the services provided and to prevent fraud. The state of customer accounts is regularly checked by independent auditors, and the report is sent directly to the FCA. Also, the regulator guarantees clients of brokers with an FCA license reimbursement of their losses related to fraud companies, or their bankruptcy – in the amount of up to 50 thousand pounds. Summing up, we can say that the financial sector of Great Britain can rightfully be considered one of the most reliable and transparent in the world.