🇬🇧 Broker coverage in United Kingdom

Regulatory overview

The UK financial regulator is the Financial Conduct Authority (FCA). Forex and CFD trading is legal for UK retail clients but sold under permanent FCA restrictions, not on offshore terms. For retail clients the FCA caps CFD/forex leverage between 30:1 and 2:1 depending on the underlying asset volatility, requires a 50% margin close-out rule, requires negative-balance protection, bans trading inducements, and requires a standardised loss-percentage risk warning. [S1] Crypto-derivatives, including crypto CFDs, cannot be sold to retail consumers. [S2] Money held with an FCA-authorised, FSCS-covered firm is protected up to GBP 85,000 per eligible person per firm if the firm failed after 1 April 2019. [S3] A broker serving UK retail clients should appear on the FCA Financial Services Register with the relevant permissions. Register status is per-broker and must be confirmed individually. [S4]

Considerations

Confirm the specific entity you would open an account with is the FCA-authorised UK entity, not an offshore affiliate of the same brand. [S4] Retail leverage is capped; offers of higher leverage usually mean a non-UK entity outside FCA retail protections. [S1] Crypto-derivative products are not available to UK retail consumers. [S2] FSCS cover applies to the authorised firm, within limits and eligibility - it is not a guarantee against trading losses. [S3]

Frequently asked questions

Is forex/CFD trading legal in the UK?

Yes, for retail clients, under permanent FCA restrictions (leverage caps, 50% margin close-out, negative-balance protection, standardised risk warning). [S1]

Can I trade crypto CFDs in the UK as a retail client?

No. The FCA banned the sale of crypto-derivatives to retail consumers, effective 6 January 2021. [S2]

Is my money protected?

Eligible claims against an FSCS-covered firm are protected up to GBP 85,000 per person per firm (firm failures after 1 April 2019). This does not cover trading losses. [S3]

Sources

1. [S1] FCA - permanent restrictions on CFDs sold to retail clients (PS19/18; leverage 30:1-2:1, 50% margin close-out, negative-balance protection, in force 1 Aug 2019) — https://www.fca.org.uk/news/press-releases/fca-confirms-permanent-restrictions-sale-cfds-and-cfd-options-retail-consumers
2. [S2] FCA - ban on sale of crypto-derivatives to retail consumers (effective 6 January 2021) — https://www.fca.org.uk/news/press-releases/fca-bans-sale-crypto-derivatives-retail-consumers“This ban reflects how seriously we view the potential harm to retail consumers in these products.”
3. [S3] FSCS - investment protection limit — https://www.fscs.org.uk/what-we-cover/investments/“If the firm failed after 1 Apr 2019 - up to 85,000 GBP per eligible person, per firm.”
4. [S4] FCA Financial Services Register (per-broker authorisation check) — https://register.fca.org.uk/s/