The Best And Trusted CFD Brokers In The UK Regulated By FCA

These days, it is recognized that plentiful CFDs brokers are available. Nevertheless, potential traders always reach out to select the ones that are trusted to trade with. Therefore, this article lists the regulated brokers by FCA, one of the most popular regulators in the UK.

What is more, this informational article aims to answer questions that novice traders might have such as what is a CFD, what is the FCA and what is its role as well as providing a list with trusted CFDs trading brokers in the UK who are regulated by the FCA. Lastly, some of the best and most popular brokers are presented. As always, traders should educate themselves and practice on a demo account before switching to a real money account in order to maximize their knowledge and minimize their losses.

Furthermore, it is always a good idea for traders, novice and experienced alike, to place trades with a regulated broker instead of a non-regulated one in order to keep their funds safe. Additionally, by trading with a regulated CFDs broker, traders can enhance their trading experience since most regulated brokers usually offer signals as well as trading strategies.

What are CFDs?

One might wonder what CFD stands for. CFD is short for contract for difference. In addition, CFD is an agreement that the broker and the trader enter. In this agreement, the trader is committed to buy from the broker an instrument that mirrors the underling asset’s price movement. Moreover, the one who outlines the margin requirements, which usually are lower than the standard margin requirements related to stocks, for buying a CFD at the asking price is none other than the broker.

Then, the CFD contract can be sold by the trader whenever he wishes at the current bid price. Most CFDs are available internationally. It should be noted that since there is leverage and the capital invested is lower thus, the losses and wins related to CFD trading are also, exaggerated. For this reason, brokers must provide the following to aid traders to manage their positions more efficiently:

  • Firstly, they need to give access to global markets
  • Secondly, they should include CFDs in their comprehensive portfolio reports
  • Thirdly, they have to enable stop, limit and other types of orders
  • Fourthly, brokers must offer 24/7 customer support
  • Lastly, they ought to deliver a mobile option as well as email alerts

What is the FCA and what is its role?

FCA is short for Financial Conduct Authority and is the regulator for the Forex CFDs brokers in the UK. The FCA license is well sought-after and brokers who have it are considered trusted since the FCA is around for years now and is also, seen as a respected regulator.

In addition, FCA is a strict regulator and this means that any broker that is regulated by FCA will act in their clients’ best interests. If brokers do not comply, then, they will need to pay large fines if for example, they manipulate prices or do not act in their clients’ best interests.

Furthermore, if any of the FCA regulated brokers go bankrupt then, the trader is secure since the FCA will cover for them up to £30,000 and 90% for the following £20,000. Nevertheless, the total amount should be less than £50,000.

To sum up, this informational articles answers questions that are useful for new traders as well as providing a list with FCA regulated CFDs brokers. An explanation of the FCA and its role is given too. As always, traders should be very careful with their trading and should preferably trade with regulated brokers where their funds will be safe and also, to have a better trading experience since most of these brokers offer free signals, educational material and a demo account to practice.