Regulated FX Brokers for 2019

When you’re trading forex, you’re placing your money and your trust into a broker’s hands - so it’s of utmost importance to only trade with the best regulated brokers available. Unfortunately, there are a number of scam sites online that at first seem to be trustworthy and even boast FCA regulation. At Market Moves, we exclusively work with and present to you only the most trusted, regulated and proven brokers.

Choosing a Regulated Forex Broker

If you’re relatively new to the financial markets, you might be wondering why you should trade at a broker regulated by a body like the FCA (Financial Conduct Authority). In summary, it’s all about protection - protecting you and your money from scams and potentially harmful market events.

The forex market has no central exchange; it’s one of the most liquid markets in the world and it never ever stops, making it an appealing prospect for new investors. However, the lack of transparency from not having that central exchange does cause problems - opening the way for fraudulent entities and scams. Thankfully, the FCA in the UK protects consumers by surveying the financial services landscape.

The key feature of FCA regulation is that the clients assets must be held in segregated bank accounts - meaning the broker cannot use those funds in the event of becoming insolvent. It may seem at first highly unlikely that such a cataclysmic event could happen, but we only have to go back as far as 2015, when the Swiss National Bank decided to uncap the exchange rate of the Swiss franc against the euro. The panic that ensued and the eventual brokers that were destroyed makes regulation a necessity..

Trade with a regulated broker and you can trade with confidence knowing that your funds are protected. Even before you decide to join a broker, the FCA have compiled a list of all the regulated financial services in the UK, virtually guaranteeing that you have full visibility over who is legitimate - and who is not. 

And for even more protection and peace of mind, the organisation are constantly keeping checks on the financial health of these financial services company, ensuring they have the minimum capital to operate. This is particularly important when you consider the case of MF Global - who at first had a solid financial standing which later collapsed, taking a chunk of investor funds with it. 

In the case of a collapse of a regulated forex broker, regulators like the FCA offer a compensation scheme; if you trade in the UK and the broker is regulated, you can use the Financial Services Compensation Scheme to recoup some of your investments. In summary, when you choose your next broker, make sure you choose one that has full regulation. The markets can change at any time and you should have protection from the worst case scenario. Once you have you have a reputable broker in sight, you may want to consider whether they offer the MetaTrader 4 platform.