The Financial Conduct Authority (FCA) is a financial regulator located in the United Kingdom. FCA has very strict rules as well as a reputable regulator. FCA licensed brokers do not suffer from reliability issues. Because many investors trust this license. What are the factors that make this trust? Let’s look at it together.
Obtaining FCA license is a challenging process for newly established brokers. This is because the FCA requires certain criteria to be fulfilled. For example; FCA regulated brokers must hold 730,000 sterling in their bank accounts as minimum net capital. In addition, this account should be kept separate from clients’ funds and operational accounts of the company. If the company goes bankrupt, the clients’s funds are guaranteed by the Financial Services Compensation Scheme (FSCS) for up to £50.000.
However, leverage has been reduced within the scope of ESMA rules in the recent period. FCA-regulated brokers were also affected. According to the new situation, maximum leverage in FCA-regulated brokers is 1:30. Therefore, some of the big brokers also get licenses from offshore regulators.
In the table below you can see FCA-regulated brokers.