The Financial Conduct Authority (FCA) is the successor of the Financial Services Authority, which for a long time was Britain's single regulator for all financial services providers. In April 2013 the FSA was split into two separate agencies – the aforementioned FCA and the Prudential Regulation Authority (PRA), which is be in charge of overseeing larger financial organizations like banks and insurance companies.
Financial services providers authorized by the FCA are highly regarded by the forex trading community, as the UK financial watchdog applies stringent requirements and standards. To acquire a license from the UK financial watchdog, brokerages must hold and maintain net tangible assets amounting to €730 000. Furthermore, clients` assets should be kept in segregated bank accounts, separated from the company operating funds, and brokers have to report transactions, provide negative balance protection, and meet a whole lot of other requirements.
Most importantly, financial regulation in the UK involves a compensation scheme. All FCA-licensed companies are covered by the Financial Services Compensation Scheme (FSCS) and in the event of insolvency, there is a maximum compensation cover of £85,000 per person.