What is the FCA license?
A simple explanation of the regulator, the strength of the license, and what to check before opening an account.
The Financial Conduct Authority, commonly known as the FCA, is the UK regulator responsible for supervising many financial firms, including certain forex brokers, CFD providers, investment firms, payment companies, and other regulated financial services businesses. For traders, an FCA license is important because the UK regulatory framework is associated with strict rules around client money, financial promotions, risk disclosure, complaints handling, and fair treatment of customers.
However, seeing a broker name on the FCA register does not automatically mean that every account offered by that broker is held under the UK-regulated entity. Many international brokers operate through several legal entities in different jurisdictions. A broker may have an FCA-regulated UK company, while clients from other countries may be onboarded under a different entity. For this reason, traders should always verify the exact legal entity, license number, permissions, and official website domain before opening an account.
