The Financial Conduct Authority or FCA is the regulator for the financial services industry in the UK.
London UK is one of the worlds top financial centres. Its stability, strong economic and geo positions have always been attractive for conducting financial services.
The FCA and CFD regulation
‘The FCA intervention follows evidence of firms aggressively marketing CFDs to the UK public, meaning retail traders are buying a product that isn’t suitable for them. To accomplish this aim, the FCA strives to protect the rights and interests of users, encourage robust competition in the financial industry, and enhance the integrity of the financial institutions.
The FCA noticed brokers offered CFDs with increasingly higher leverage, resulting in high proportions of traders losing money.
. The new rules sustain and increase protections for retail consumers.’. In addition to that, the UK has a superior overall financial regulatory system.
Plus500 broker offers access to three sorts of commission-free trading accounts denominated Standard Plus, Premier Plus500, P500 Pro Trading account for those classified as Professional, as well as the use of a free demo trading account. Users can trade from Plus500’s state of art trading APP. The platform provides traders with the ability to utilise 70+ technical indicators, customise watchlists and use advanced risk management tools.
Although an FCA regulated CFD broker is ideal for most traders, the current limitations on leverage caps mean those serious speculators may not realise the same benefit from using FCA brokers. Still, the leverage offered is more than enough to support aggressive money management strategies.
There are many essential advantages to trading CFDs with FCA-regulated and authorised brokers. They include ample investor protections, FSCS insurance, and a client-centred orientation to oversight.
As an important financial centre, the United Kingdom is home to more than 91 FCA regulated CFD brokers.
This selection of CFD brokers guarantees tight, competitive spreads and fair brokerage fees.
The FCA once allowed almost unlimited leverage, however since mid-2019, The FCA limited leverage to a maximum of 30:1 on foreign exchange currency pairs.
Some traders may feel this disappoints them, but it is certainly in line with global best practices.
Professional traders may have access to higher leverage if they prove their skills.
Even with the “professional” classification, certain investor protections are undermined.
We can identify the characteristics by knowing the regulations, the minimum deposit required to start operating and the type of broker that is each one.
Live4trading compares the spreads guiding us only for the Eur/USD, the commission, the leverage, the currency pairs offred, and the platform and if they work in cryptocurrencies or not.
When trading with brokers, customer support can be a range of customer services to help customers make cost-effective and correct use of the broker’s services. Support should include installation, training, troubleshooting, upgrading, and cancellation of a product or service.
The following list of best UK CFD brokers listed in no particular order is chosen based on factors including financial stability, execution quality, and trading platforms available.
When you opt for a CFD Broker, please consider factors such as the variety of markets available, trading software, and spread competitiveness.