Forex which stands for Foreign Exchange indulges in a chartered online trading platform of currencies in the financial market. Owing to its huge credibility, the financial market in UK has tackled severe forms of fraudulent attempts by protecting its customers and preserving the interests of its consumers through the Financial Conduct Authority (FCA), UK.
Ever since its inception, the FCA has targeted several firms in the hopes to protect the rights of consumers and its customers while in the forex trading or several other kinds of businesses that require financial integrity and security. Indulging in forex trading online can be risky due to scammers and frauds everywhere, which is why the FCA held the authority of regulating some of the top firms in UK in order to guarantee safe and reliable trade online.
Mentioned below are three reasons why this trusted UK Forex Trading site became so popular with forex trading platforms, online forex brokers and traders.
Apparently, there are tons of forex brokers online who try to convince a trader of their capabilities, many of which aren’t authorized or regulated by the FCA at all. This sparks a façade, and a novice trader in the business wouldn’t ever know of the terms until and unless he has an experienced broker to explain him of the risks and gaining potentials.
Reliability can be a concern, especially when there are thousands of pounds at stake for exchange. Since the FCA guarantees the authenticity of online forex brokers in the UK, it is no wonder why the top brokers in UK are FCA authorized. Getting authorized by the FCA is beneficial for both the parties, since most top brokers don’t require any commission since they rely on spreads and hope to acquire larger leverages with their trading firms and accounts on trading platforms.
Many forex broking companies lost their value when the FCA confirmed that they hadn’t been authorized, such as ELM Forex and B2S Forex.
2)FRAUDULENT OR ‘CLONE’ FIRMS:
In Forex trading, there are tons of broking companies who clone the details such as the reference number provided by the FCA to regulated companies and indulge in scams on forex trading platforms online. Traders usually see the reference number and don’t pay heed to check the details themselves. With the FCA in charge of the security and integrity of the financial market of UK, it can be seen that they also report clones that are functional without authority. While reliability can be a concern, the FCA manages to issue legal action against fraudulent claims.
3)PROTECTION OF CONSUMER RIGHTS:
In addition to reporting fraudulent clones, the FCA also holds the credibility to warn its raise awareness of the banking and financial rights of its customers and consumers. It provides financial advice to people warranting it, and since forex brokers tend to vary in spreads and commission rates, the FCA helps the people to understand which forex broker companies are the best and worthwhile.
Previously in the year 2014, the FCA penalized the Forex Capital Markets and FXCM Securities Ltd when they saw that the profits weren’t reaching the latter as normally should. The FCA has fined several companies for millions for dollars for using inauthentic and framed information, or committing fraudulency while operating in the financial market.
While they deal with impeccable brilliance and experience, the FCA can be regarded as a trusted UK forex trading site due to its checks, sustainability, reliability and the claims to ensure prominent and actual human financial and legal rights in the UK.