Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.
Financial Conduct Authority (FCA)
What is the FCA?
The Financial Conduct Authority (FCA) is an independent body responsible for regulating more than 56,000 financial brokers (including Fortrade) and markets in the United Kingdom. Its three-point goals are to:
- Protect consumers of financial services in the U.K.
- Maintain the integrity of the U.K. financial system
- To encourage healthy competition among the financial services in a way that benefits consumers
Regulated brokers and markets are generally more transparent than non-regulated ones, and where there is a suspicion of unfair or illegal practices, traders can turn to the regulatory body to seek justice. It is important to note that by definition, the FCA has no authority over any brokers trading on the OTC Market.
How does one use the FCA?
The first step for a trader is to check that the broker they wish to use is in fact regulated by an overseeing body, in whatever country the broker is incorporated to work. The Fortrade FCA authorization can be seen here. In the event of a dispute with your broker, if you are unable to resolve the matter on your own, then you may turn to the FCA for arbitration. If the FCA determines that a broker has behaved in violation of the law, or of the FCA’s guidelines and standards, then the regulatory body may step in and impose fines, or even withdrawing FCA authorization from the broker if the proper standards are not met.