Although the UK is leaving the European Union, UK financial regulations are still heavily influenced by the European Securities and Markets Authority (ESMA). Just as in other European countries, this strictly limits available leverage for non-professional CFD traders to 1:30. In addition to that, the UK’s own national regulator, the Financial Conduct Authority (FCA), also strictly oversees CFD & forex trading in the country.
Despite the strict regulations, there is a large number of CFD forex brokers operating in the UK. Many of them use London as a base for their European operations, while others use it mainly to serve British CFD & forex traders. Regardless of the reason, the UK, and the City of London in particular, has a long history of attracting both CFD brokers and traders, and it is likely that this will continue for the foreseeable future.