Search ForexCrunch

Trading forex online can be profitable. It can also be dangerous, especially when you trade with unregulated platforms. Besides the trading know-how and the tools, you also need a regulated broker. You should only work with brokers regulated by the Financial Conduct Authority in the UK.

In this guide, we’ll examine the best FCA regulated brokers and how you can leverage them to kick-start your investment journey.

Best FCA Regulated Brokers 2021 List

Here is a rundown of the best FCA regulated brokers in 2021.

  • eToro – Overall Best FCA Regulated Broker
  • Capital.com – Best FCA Broker for Beginners ($20 Minimum Deposit)
  • VantageFX – Best FCA Broker for Forex ECN Accounts
  • Pepperstone – Best FCA Broker for Range of Trading Platforms Offered
  • Avatrade – Best FCA Broker With Support for MT4 and MT5
  • Fineco Bank – Best FCA Broker for Long Term Investments
  • IG – Best PayPal Forex Broker with Stellar Reputation
  • FXTM – Best FCA Broker with Low Fees and MT4 Trading
  • XTB – Best FCA Broker for Leverage
  • FP Markets – Best FCA Broker with Support for Forex EAs

Top Forex FCA Regulated Brokers Reviewed

1. eToro – Overall Best FCA Broker

etoro logo

eToro is our number one pick in this review of FCA brokers. This regulated trading platform gives you access to different forex pairs conveniently. You can also access cryptocurrencies, commodities, and thousands of stocks on eToro.

eToro is also a highly regarded broker because of its strict security policies. When you choose eToro as your go-to broker, you get commission-free trades. The platform does not charge any monthly account fees or deposit fees, helping you trade cost-effectively.

etoro review

If you are a beginner, then eToro is perfect for you. The platform is designed for ease of use. It’s also loaded with friendly features such as the CopyTrading option. This feature enables you to copy the trades of other professional traders on the platform automatically. This tool enables beginner traders to get used to the markets while still giving themselves a chance of making good returns. This way, you can day trade currencies.

eToro is also a social trading platform; this means you can share market insights with other users and even ‘like’ comments.

Pros:

  • FCA regulated trading platform used by over 20 million people
  • Useful CopyTrader feature
  • Supports credit/debit cards, bank transfers, and e-wallets
  • No deposit or monthly account fees
  • 0% commission on stocks and ETFs
  • Ideal for beginners

Cons:

  • Small withdrawal and inactivity fees
  • Uses the dollar denomination only
  • Limited research and analytical tools

67% of retail investors lose money trading CFDs at this site

2. Capital.com - Best FCA Broker for Beginners ($20 Minimum Deposit)

capital.com review

Next up on our list of the best FCA regulated brokers is Capital.com. Capital.com is a market leader in the CFD and forex trading scene. The platform is loaded with financial instruments, but it's targeted at beginners.

This platform focuses on its CFD trading options, allowing you to speculate an asset's price without owning it. It also offers so many other assets to trade. This includes cryptocurrencies, stock indices, and ETFs. They even provide a wide range of cryptocurrencies to trade too.

capital.com forex broker

Capital.com charges a minimum deposit of only $20, which means you can start trading these assets at a low cost. The platform supports e-wallets, bank transfers, and debit/credit cards for deposits.

When using Capital.com, you can decide to start off with a free forex demo account to enable you to test your forex trading strategies risk-free. Capital.com also ensures beginner traders get access to a wide selection of educational materials on its website. The platform has articles, a glossary, and various courses which help get you up to speed in the markets.

Pros:

  • Commission-free trades
  • Tight spreads
    Extensive educational content for new traders
    1:20 leverage offered when CFD trading
    Good charting and analysis interface
    £20 minimum deposit
    Heavily regulated

Cons:

  • Cannot build custom investment strategies
  • Offers CFDs only
  • Does not support MT4/5

67.7% of retail investor accounts lose money when trading CFDs with this provider

3. Vantage FX - Best FCA Broker for Forex ECN Accounts

vantagefx logo

In the electronic communications network (ECN) space, VantageFX is one of the best ECN brokers. VantageFX offers a range of trading services, enabling clients to access the international Forex market.

With a minimum deposit of only $200, VantageFX charges less than other ECN brokerage firms, which often demand a higher account balance.

This broker also gives you the advantage of accessing some of the best forex spreads in the industry. On VantageFX, traders can access a variety of assets, including forex currency pairs, several CFDs, cryptocurrencies, indices, and commodities.

VantageFX offers leverage of up to 500:1; however, it largely depends on your level of trading (retail or professional trader) and your country of residence. It also offers a fully active forex demo account to enable you to test out your forex trading strategies risk-free.

By opening a broker account with Vantage FX, you also get offered free education covering topics surrounding Forex trading.

Pros:

  • ECN broker accounts
  • 50% welcome bonus
  • Offers markets on forex, shares, indices, and more
  • Supports MT5
  • Leverage of up to 500:1
  • Cryptocurrencies CFD trading

Cons:

  • No much-added value for experienced traders
  • Spreads are high for its Standard account

Your capital is at risk when trading financial instruments at this provider.

4. Pepperstone - Best FCA Broker for Range of Trading Platforms Offered

pepperstone reviewPepperstone is one of the best FCA brokers to access different forex pairs and CFDs conveniently. This regulated trading site offers MetaTrader and cTrader suites to algorithmic traders.

Much like eToro, Pepperstone also has a copy trading feature that allows users to copy the trades of other high-performing traders on the platform automatically.

pepperstone fx trading

Pepperstone offers two main account types, which are the Standard and Razor accounts. Non-professional traders or beginners can sign up for the Standard account, which is on a non-commission basis. The platform charges commission on only its Razor Accounts aimed at professional traders only. The accounts also have tight spreads.

Pepperstone offers various assets, such as currency pairs, cryptocurrencies, metals, commodities, and a range of major indices across the multiple broker's platforms. Most of these assets come in the shape of CFD instruments, so you will be able to apply leverage with ease.

Pepperstone charges a minimum deposit amount of only $200 for all account types. It does not charge fees for deposits or withdrawals. Finally, users on Pepperstone have access to educational resources, where trading videos, webinars, and numerous research tools are available for use.

Pros:

  • MT4, MT5 and cTrader supported platform
  • Educational resources center
  • Low spreads
  • $200 minimum deposit

Cons:

  • No stockbroking only offers forex and CFDs

67% of retail investors lose money trading CFDs at this site

5. AvaTrade - Best FCA Broker With Support for MT4 and MT5

avatrade brokerFor Forex traders with experience, AvaTrade is a top option. Like Pepperstone, it is a top forex broker regulated by the FCA. The platform has an abundance of forex trading tools and supports both MT4 and MT5.

AvaTrade offers users access to a variety of forex trading tools. This includes advanced order types, technical indicators, and chart drawing tools.

avatrade best forex broker

With the MT4 or MT5 connected to your AvaTrade account, you can buy and sell currency pairs without paying commission. AvaTrade will charge you a variable spread instead.

Apart from Forex, AvaTrade also offers assets like forex, stocks, indices, and a good selection of digital currencies. AvaTrade requires a minimum deposit of just $100. It also offers a demo account where no deposit is required to start trading. The broker supports both credit and debit cards.

Pros:

  • Supports CFD markets on stocks, forex, cryptocurrencies, and more
  • Low spreads and 0% commission trades
  • MT4 and MT5 supported
  • Leverage offered on all markets
  • Minimum deposit of $100

Cons:

  • High inactivity fees

71% of retail investor accounts lose money when trading CFDs with this provider

FCA Regulated Brokers Comparison

Forex Broker Trading Fee/Commission EUR/USD Spreads Deposit Fee
eToro Spread-Only 1 Pip 0% for US Traders, 0.5% Elsewhere
Capital.com 0% 0.8 Pips Free
VantageFX 0% From 0 Pips Free
Pepperstone 0% 0.1 Pips Free
AvaTrade 0% 0.9 Pips Free

What is the FCA?

The Financial Conduct Authority, otherwise known as the FCA, is an independent regulatory body for financial service firms in the United Kingdom. The FCA is in charge of overseeing the conduct of firms, scrutinizing and ruling out standards for financial service providers to follow.

FCA agency home

The FCA is often regarded as one of the strictest regulatory bodies in the world. The regulator follows the guidelines of the Bank of England to ensure that retail investor accounts are protected from scams and deceptive conduct.

The FCA came into existence in 2012 after the Financial Services Act 2012 was approved by the parliament. The Act empowered the Bank of England to ensure macro and micro-prudential regulations to maintain financial stability. The Act also formulated a new regulatory framework inclusive of the Financial Policy Committee of the Bank of England, the FCA, and the Prudential Regulation Authority.

Why Choose an FCA Broker?

Deciding which broker to use is an important step when planning to buy and sell assets. While there are many brokers to choose from, it is better to go with one of the FCA regulated brokers. This section explains why choosing an FCA regulated broker is a smart move.

1. Account Protection

In the United Kingdom, FCA brokers are seen providing additional protection compared to those brokers who are not regulated by any authority. You can check the FCA filings to find out more information on the FCA brokers so as to know which is better for you. You can also cross-check their history before finalizing with the one you want to work with.

2. Segregation of Funds

With FCA brokers, you can be sure that your funds are segregated. FCA regulated brokers are required to segregate client money from the firm's funds unless permitted by the clients.

This protection of the client's money is important because, in the event of a firm's failure, customers can still recover their money. Other regulators that enforce segregation of funds include the ASIC (Australian Securities and Investments Commission), CySEC (Cyprus Securities and Exchange Commission), FMA (Financial Market Authority, NZ), and the NFA (National Futures Association).

3. Negative Balance Protection

Negative balance protection (NBP) is a risk management feature that ensures traders cannot lose more than they have initially deposited into their trading account. It is designed to protect retail investor accounts from ending up in debt to their brokers. NBP closes all open positions if an account balance decreases to zero. FCA regulated brokers are required to offer NBP to all clients.

How to Get Started with an FCA Broker

If you want to start trading currencies right away, then look no further. By following these steps below, you'll be able to invest with our top-rated FCA brokers, eToro. This is because eToro has a stellar reputation for safety, and they do not charge any commissions. Now let's dive right into the steps.

Step 1: Open an Account

eToro create account

67% of retail investors lose money trading CFDs at this site

To get started, visit the eToro website and click on the 'Join Now' button. You will be required to enter a valid email address and choose a username and password. If you want to skip this step, you can connect your Facebook or Google account to get started.

Step 2: Verify your Identity

As part of eToro's KYC regulations, you will need to upload a copy of your government-issued ID. This could be your passport or driver's license. You would also need to upload proof of address or a copy of your bank statement or utility bill. This would be verified by eToro in a couple of minutes.

Step 3: Deposit Funds

After fulfilling all requirements, you can now go ahead to deposit some money to your newly created eToro forex trading account.

Deposit methods include:

  • Bank transfer
  • Debit/credit card
  • Neteller
  • Skrill
  • PayPal

Step 4: Search for Forex Trading Market

etoro forex trading

You can search for the forex trading market by clicking on the 'Trade Markets' icon followed by the Currencies button. This will bring up the list of all supported currency pairs that are available on the eToro platform.

If you already know the currencies you want to trade, you can easily enter the pair into the search box on the page directly.

Step 5: Place Forex Trading Order

how to trade forex on etoro

You will then see an order box like in the image below. In our example, we are trading EUR/USD. We think the value of the pair will rise, so we opt for a buy order. You can change this to a sell order if you think the foreign exchange rate of the pair will go down.

Next, enter your stake and if you want to apply leverage - select your ratio. Finally, click on the 'Open Trade' button to place your forex order!

Conclusion

In summary, is it a good idea to trade forex on FCA regulated brokers? The answer is yes. In doing so, you'll be sure that your transactions are protected and secure.

Now that we understand how important the role FCA plays as a global regulatory agency that gives out licenses and protects the UK traders, you can select one of the FCA brokers reviewed above.

However, keep in mind that eToro remains one of the best options in this respect. The platform not only supports debit/credit cards and bank account transfers - but e-wallets like Paypal and Neteller.

This heavily regulated broker is also the best option for those seeking a low-cost way of trading assets, as eToro doesn't charge any commissions. So register now and begin trading safely.

etoro logo

67% of retail investors lose money trading CFDs at this site

FAQs

What is a forex broker?

Can I trade Forex without a broker?

Do I need a license to trade Forex?

How do I know if my Forex Broker is regulated?

Who Is the Best Forex broker?

Unlock FREE Daily Forex Signals!
  • 2-3

    Forex Signals Daily

  • 76%

    Success Rate

  • 25k+

    Telegram Members

Sponsored Brokers

All Brokers