In the UK, all forex brokers are regulated by the Financial Conduct Authority, better known as the FCA. This is one of the world’s most reputable financial regulators, with extensive experience in overseeing all types of financial services firms. However, traders should be aware that due to the influence of the European Securities and Markets Authority (ESMA) in the UK, all forex brokers in the UK must follow the ESMA regulations. This means that trading leverage in the UK, as in most of Europe, is limited to just 1:30 for non-professional traders.
The UK is home to a large number of regulated forex brokers, of which some are headquartered in the country and some have just set up local branch offices there. Given the City of London’s status as the financial capital of the world, it is also no surprise that huge volumes of currencies and a range of other financial assets are traded here every day.