UK Forex Brokers

fcaWhen it comes to trading forex or doing forex related business in the United Kingdom, the trading environment is no joke. Regulation of forex brokerage business in the UK is serious business and it is tough; very tough.

Regulation of UK forex brokers is done by the Financial Services Authority (FSA.gov.uk), though there are proposed changes underway that will see another agency created out of the present structure to handle regulation of UK forex brokers.

 

FCA Regulated Forex Brokers 2014:

Broker Info Bonus US Traders Open Account
Plus500 Spread: 2 Pips
Leverage: 200:1
Minimum Deposit: €100
Demo Account: Open
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ETX Capital Spread: 0.9
Leverage: 400:1
Minimum Deposit: £100
Demo Account: No
60% up to £6,000 Welcome Bonus! Visit BrokerRead Review
ActivTrades Spread: 1 Pip
Leverage: 400:1
Minimum Deposit: $100
Demo Account: No
Open an Account and get 1,000 Points Visit BrokerRead Review
HY Markets Spread:
Leverage: 300:1
Minimum Deposit: $50
Demo Account: No
35% First Deposit Bonus! Visit BrokerRead Review
Hirose UK Spread: 3 Pips
Leverage: 300:1
Minimum Deposit:
Demo Account: No
$20 Free plus First Deposit Bonus Visit BrokerRead Review
FXCM (Forex Capital Markets) Spread: 1 Pip
Leverage: 1:200
Minimum Deposit: $50
Demo Account: No
NA USA AllowedVisit BrokerRead Review
DF MArkets Spread: 2-3 Pips
Leverage:
Minimum Deposit: £10
Demo Account: No
Demo Trading Contests and Prizes Visit BrokerRead Review
Alpari Spread: 1.2 Pips
Leverage: 500:1
Minimum Deposit: $200
Demo Account: Open
100% up to $5,000! USA AllowedVisit BrokerRead Review
Interactive Brokers Spread: 0.2 pips
Leverage:
Minimum Deposit: $10,000
Demo Account: No
No Bonus Available. USA AllowedVisit BrokerRead Review
Forex.com Spread: 1-2 Pips
Leverage: 50:1
Minimum Deposit: $2,500
Demo Account: Open
Receive a Free Trading eBook and $50k Demo Account! USA AllowedVisit BrokerRead Review

How are UK Brokers Regulate by the FCA?

The FSA has certain requirements that UK forex brokers must meet in order to conduct brokerage business in the UK forex market. These requirements are listed below:

Segregation of Accounts

The segregation of accounts by UK forex brokers is a requirement of the FSA meant to protect traders from any negative broker events that could lead to a loss of their trading capital. Top among this is issues pertaining to bankruptcy of forex brokers. Under the policy, brokers are meant to separate and lodge traders’ funds into an account that is separate from that of the brokers. This therefore keeps traders’ funds safe, and also enables smooth settlement of trades and withdrawal requests from traders in a timely manner.

Robust KYC Policy

The FSA requires UK forex brokers to operate a robust “Know Your Customer” (KYC) policy. This policy requires thorough identification of the trading entities, as well as full disclosure by these trading entities of their sources of income and source of funds to be used in trading. This process ensures that criminal entities do not take their illegally gotten funds and push them into the market in order to multiply it and generate more money to keep funding their illegal operations. These measures were instituted and strengthened after the 9/11 attacks to ensure that terrorists, drug dealers and the businesses that are blacklisted by the United Nations Office on Drugs and Crime (UNODC) do not find their way into the forex market, and where they already have, that such entities will be identified and rooted out of the market place.

In pursuance of this policy therefore, traders from the European Union are to present their international passports OR drivers’ licenses as their means of identification. Corporate entities are to do same for all directors of the company. The requirement is more stringent for non-EU traders. An international passport and a utility bill, both of which have been notarized, are the only acceptable documents of identification and proof of residence. The public notary must indicate full names, address, title, place of employment and stamp the documents with an official stamp carrying clearly identifiable symbols attached to the office of the Public Notary.

Brokers are also required to submit reports on a very regular basis to the FSA on the status of their compliance with these regulations. These reports are always checked out by the relevant departments in the FSA.

List of Forex Brokers Regulated in the UK:

Brokers that comply are assigned registration numbers and kept in good standing with the FSA. Some of these UK forex brokers are listed below:

a)    Alpari UK

b)    Plus500 – Authorized and regulated by the Financial Conduct Authority’

c)     FXCM UK

d)    Vantage FX

Alpari UK

Alpari UK offers traders the opportunity of trading currencies, energy assets, spot metals and futures CFDs from various types of accounts. Traders can enjoy features such as a floating leverage on selected assets, and trading from 5 different types of accounts, and the Autochartist MT4 plug-in which can be used on Alpari’s MT4 and MT5 trading platforms.

Plus 500 – Your Capital is At Risk

This broker is one of the pioneers of a first in the forex market: the no-deposit forex bonus. This is a program where traders can open an account on Plus500 from an affiliate link, and the trader is given $100 into a live account without having to deposit a dime into the live account. Plus500 is authorized and regulated by the Financial Conduct Authority.

FXCM UK

FXCM’s UK office offers a robust MT4 platform that permits trading in forex, crude oil and several stock indices. This is a great innovation from this broker looking to break away from its negative taint accrued from the CFTC penalty. This feature allows traders who understand the inter-relationships between markets to trade these accordingly.

Vantage FX

This UK forex broker commenced business in 2010. Traders can start trading with as low as $100 and the platform is scalping-friendly. Traders can also get rewards of up to $10,000 monthly.

This is by no means an exhaustive list, but a visit to the FSA website will also show other brokers that operate in the UK. The site also serves to confirm the status of a broker that claims to operate in the UK.

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