The FCA Has Flagged These Brokers. What This Means for You
The Financial Conduct Authority (FCA) of the United Kingdom has flagged the brokers on the list below, which is updated on a regular basis. Doing extensive research on financial services and brokers before entrusting them with your money is one of the most crucial things you can do to ensure safe online trading. The purpose of these broker reviews is to serve as a research aid for you.
All too frequently, prospective traders become enthused about an offer or advertisement they see on social media. They believe that if they don’t invest money right away, they might lose out. This may result in rash decisions and large losses.
In certain situations, it might be challenging to tell the difference between a real, legitimate broker and a scammer. It’s crucial to understand what authorities are saying regarding internet brokers because of this. Instead of visiting the websites of each regulator separately, Broker Complaint Registry has compiled all of the warnings you should be aware of in one location and is constantly adding new brokers to the lists as new warnings are issued.
About the Financial Conduct Authority (FCA)
One of the most reputable financial regulators in the world is the Financial Conduct Authority, or FCA. Any financial service that operates in the UK or has clients in the UK, including brokers and auto lending firms, needs to hold an FCA license.
Despite being a financial regulatory authority in the UK, the Financial Conduct Authority is run independently of the British government and is funded by licensing fees from its holders. The FCA’s many responsibilities include:
- Ensuring compliance with financial regulations and standards
- Oversees anti-money laundering efforts
- Protects UK consumers with information and red flags about suspected fraud
- Ensures fair competition in the marketplace
- Issues licensees to qualified companies and audits and oversees their operations
- Receives and follows up on customer complaints
Why Were These Brokers Flagged by the FCA?
It is advisable to avoid trading with a broker you find on this list. But if you’re interested in learning more, make sure you read the reviews all the way through.
For all of the following and more , the FCA will issue a warning on a broker or financial service:
- Unlicensed
- False claims
- Clone broker
- Non-compliance
- Numerous customer complaints
- Legal action against the broker
Most of the warnings issued by the FCA concern financial services that appear to be operating without a license. Although this is a significant violation, many customers fail to verify a broker’s license or believe them when they say they are licensed.
Unlicensed brokers frequently fabricate statements regarding their qualifications or the kinds of profits they can provide clients. Some might be clone brokers, or imposters who pose as licensed brokers in order to mislead the public.
If a broker fails to declare their financials or violates any requirements, they risk having their FCA license revoked. Even if unfair complaints are common on the internet, brokers are likely to be flagged if they have a constant stream of reliable and consistent complaints sent to the regulator, rather than only on a review site. In addition, the FCA will make the public aware of any legal action, insolvency, or cease and desist order filed against a broker.