{"id":215,"date":"2016-08-31T08:09:01","date_gmt":"2016-08-31T08:09:01","guid":{"rendered":"http:\/\/www.makemoneytradingreviews.com\/?page_id=215"},"modified":"2020-09-21T11:39:45","modified_gmt":"2020-09-21T11:39:45","slug":"fca-registered","status":"publish","type":"page","link":"https:\/\/www.makemoneytradingreviews.com\/fca-registered\/","title":{"rendered":"FCA Regulated Brokers"},"content":{"rendered":"
The United Kingdom, with London not only being the capital of the monarchy but also one of the capitals of the Forex trading market<\/a>, offers a very well regulated market in currency pairs. The Financial Conduct Authority (FCA)<\/a> is the strong force that keeps many broker companies transparent. The government body works with the HM Treasury and makes a massive effort to protect consumers and traders, enhance market integrity, and promote healthy competition in the interest of consumers. The FCA exercises great power regarding measures they can impose. They can freely investigate different organisations and people, and can prohibit a financial product up to a year. Under their purview, FCA Forex brokers are sometimes required to modify their promotions, if the FCA finds them misleading in any aspect. Applicants have to meet very high standards to be recognized by the FCA. The FCA reviews business plans, resources, budgets, risk handling systems, and the necessary qualifications lead employees should possess, as well as their experience and skills.<\/p>\n Since there are more than 56,000 companies, the FCA established a system how to run check-ups. There are three important aspects: The FCA has the power to implement and enforce EU and domestic laws that relate to financial services. They suppress cartels and abuse of a dominant position.
\nAs a lead actor in this industry, it is no surprise that the UK stays on top of things.
\nThere are certain risks that the Forex business brings along which cannot be influenced, but risks related to bad broker management can and should be avoided. As a trader, you are already stressed about the happenings, the ups and downs in the market, and should under no circumstances be mistreated by your brokerage company.
\nTo prevent misconduct and illegal actions in this business with high scamming potential, the UK government took the business under a closer look and established bodies to regulate the market and companies in the market. The FCA Forex brokers are trustworthy companies thanks to careful monitoring and strict rules enacted upon them.<\/p>\nThe FCA<\/h2>\n
\nThere are 56,000 FCA regulated brokers, securing fair trade and a transparent market for consumers.
\nThe UK\u2019s number one regulator of business conduct is also the prudential regulator for 24,000 of the firms above. The responsibility of conduct and prudential regulation was transferred to the FCA in early spring of 2013.
\nThe modern economy could not function without the Forex market since many economies rely heavily on the movements in the market. Therefore, the important role it plays is not to be neglected. The FCA takes its tasks very seriously, especially because they are aware of the influence the market could have on the government, companies, and individuals.
\nIf they ensure a fair and competitive market, then consumers, staff, shareholders, and investors benefit from such a healthy market and ensure trust among UK citizens.
\nGoals of the FCA:
\n1. Steady and advanced integrity of the financial system in the UK
\n2. Protection of consumers and protection of the financial market and the UK economy in general
\n3. Promotion of healthy competition benefiting the consumers
\nThe FCA is supervised by the Parliament and the Financial Ministry (Treasury), but yet it is not funded from the Monarchy\u2019s budget, but from private sources.
\nNamely, they charge fees to the companies they regulate and create their own independent budget.
\nThey submit annual reports to the Treasury who then send it to the Parliament for revision. All aspects of their conduct are being scrutinized by the MPs. If necessary, they can ask the FCA to submit specific data anytime, aside from the regular annual report.
\nThe FCA works with:<\/p>\n\n
Scope of Power<\/h3>\n
\nThe best Forex brokers UK are recognised as such because they are registered with the FCA and follow the rules and ensure a safe environment for their clients. The brokers are rewarded with trust from their clients who feel safer when they know their broker complies with the strictest regulations in the country.<\/p>\nQualification Criteria<\/h3>\n
Risk management and supervision<\/h3>\n
\n– Proactive monitoring of the largest firms
\n– Supervision in case there is a risk based on an unusual event
\n– Monitoring firms that are exposed to the same type of risk<\/p>\nImplementation of Healthy Competition<\/h3>\n
\nThey enforce laws that prohibit setting too low prices to drive out the competition which means that there is a minimum price for all businesses. The minimum price cannot be that low not to cover the product or services costs. Price-fixing is also regulated by the FCA.
\nThe FCA obligates their regulated companies to self-report on any deviation from the rule.<\/p>\nTop Rated Forex Brokers<\/h3>\n