Zeal Capital Market Review Is Zfx.co.uk A Legit Forex Broker

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UK Forex Brokers

UK Forex Brokers FCA Regulated

UK Forex brokers that are registered in the united kingdom are regulated under the FCA ( Financial Conduct Authority). Forex brokers that are based in the UK have to be authorized by the FCA to run a brokerage for retail Forex trading.

Under the FCA, UK Forex brokers are regarded as some of the most reputable Forex brokers. There are many fake website and brokerages that claim to be FCA regulated when in reality they are not. Stay clear of these so called brokerages and report them to the FCA.

Here are some key points on UK Forex Brokers that are FCA regulated:

  • FCA brokers keep their client funds in segregated accounts
  • Negative balance protection.
  • FCA regulated broker should have at least £1 million in operating capital
  • FCA directs all brokers to submit yearly audit reports and periodic financial statements
  • FCA regulated retail Forex brokers are required to protect their clients under the FSCS (Financial Services Compensation Scheme)
  • protection for traders against “broker issues” by providing a guarantee of up to £50,000 in compensation through the FSCS ( Financial Services Compensation Scheme)

For more in-depth information on FCA regulations visit https://www.fca.org.uk/

FCA new rules on leverage and more

ESMA’s new rules

ESMA affects regulator within the EU (European Union) Including the FCA.

  • There will be a leverage limit on CFD and Forex trading to 1:30 for major FX pairs.
  • Plus even less on non-majors, commodities, indices, share CFD and cryptocurrencies. The new rules also ban Binary Options outright, imposing new ruling on margin closing and mandatory negative balance protection for clients.
  • A ban on all trading bonuses or incentives, such as deposit bonuses. They will also require standardized risk warnings be delivered to clients.

With all this said, all these changes are put in place to benefit the traders and putting less risk in their hands.

*More on ESMA down below

FCA Regulated Forex Brokers List

Forex Rank has compiled a list of the most reputable and trust worthy UK Forex brokers.

All have been verified to be FCA regulated and in good standing.

Tickmill

Min Deposit $25.00 | Account Base Currency: USD, EUR, GBP, PNL | Max Leverage: 500:1 | Trading Platforms: Metatrader 4, Webtrader

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Forex.com

Min Deposit $50.00 | Account Base Currency:USD CAD GBP | Max Leverage: 50:1 | Trading Platforms: FOREXTrader, Metatrader 4

Oanda

Min Deposit $1.00 | Account Base Currency: AUD CAD EUR GBP HKD JYP SGD CHF USD | Max Leverage: 50:1 | Trading Platforms: Web trading, Metatrader 4, Oanda desktop trading platform

XM Group

Min Deposit: $5.00 | Account Base Currency: USD, EUR, GBP, JPY, CHF, AUD, RUB, PLN, HUF, SGD, ZAR | Max Leverage: 30:1** | Trading Platforms: Metatrader 4/5, Webtrader

** Leverage applies to all the EU regulated entities of the group. Leverage depends on the financial instrument traded.

eToro

Min Deposit $200.00 | Account Base Currency: USD | Max Leverage: 400:1 | Trading Platforms: Webtrader, eToro OpenBook, Mobile Trader

Min Deposit $50.00 | Account Base Currency: USD CAD EUR JPY GBP | Max Leverage: 400:1 | Trading Platforms: Metatrader 4, Web trader, Trading Station, NinjaTrader

CMC Markets

Min Deposit $200.00 | Account Base Currency: USD CAD AUD EUR GBP | Max Leverage: variable | Trading Platforms: CMC Markets Platform, Mobile trading

UKForex Trading Brokers – Trade UK

The huge liquidity in the forex market and loose regulations in many countries have encouraged many scammers to enter the forex market.

If you want to become a professional trader, you should spend your time in finding the right forex broker. Always choose a licensed and regulated forex broker to ensure the security of your invested funds, Why not trade UK?

The European trading sessions are highly volatile and this encourages the huge trading volume. Financial dealers all over the world prefer the UK as their destination because of the advantages of the European economy.

To trade UK, all forex brokers must be authorized and approved by FCA (Financial Conduct Authority). The FCA is an autonomous regulatory body that oversees all non-banking financial transactions. Until 2020, FSA (Financial Services Authority) was responsible for regulatory activities.

However, in 2020, the UK government decided to form FCA to regulate all types of non-banking financial institutions. Even though UK’s economy is volatile after Brexit, the UK forex brokers are free to provide forex services to all of Europe.

FCA Regulatory Guidelines – The Financial Conduct Authority

Forex brokers can trade in the European and UK markets only with a valid FCA license. Potential investors and traders can use the FCA code to ensure the authenticity of the broker.

Financial Conduct Authority also has authority over EU brokers. Every licensed and registered broker must submit for regular auditing and provide details of all financial transactions.

All the regulated brokers should use segregated bank accounts to hold the funds of clients. This ensures that the brokers can’t use the customer funds for operations.

Only financially stable agencies are allowed to provide forex trading services to UK citizens. One of the notable benefits of FCA regulated brokers is protection through Financial Services Compensation Scheme (FSCS).

If the UK forex broker registered with FCA files for bankruptcy or go through premature liquidation, the FSCS insurance scheme provides insured protection for a maximum of £50,000.

Under this scheme, the registered agencies must keep a percentage of their profits in a pool to compensate the clients. Traders can enjoy maximum protection with this scheme.

The Financial Conduct Authority regulations provide flexibility to brokers as well. In the US, the forex brokers must adhere to extreme guidelines that stop them from providing certain trading services.

UK forex brokers are free to provide hedging option for traders. There is no limit on the maximum leverage that a broker can offer.

This is beneficial for traders because they can choose a forex broker with a higher leverage. You should understand that a higher leverage means a higher risk.

Before choosing a UK forex broker, you should check with the Financial Conduct Authority (FCA) website to ensure that the broker is authorized.

Regulated and licensed brokers will always show their license number on the website. To protect traders against financial frauds, FCA enforces regulations and also monitors compliance. Or you can check out our Forex Broker List page.

WAIT There’s More..

Leverage Changes effective August 2020 For FCA Regulated Brokers.

  • 1:30 for major currency pairs;
  • 1:20 for non-major currency pairs, gold and major indices;
  • 1:10 for commodities other than gold and non-major equity indices
  • 1:5 for individual equities and other reference values;
  • 1:2 for cryptocurrencies

What happens if a regulated FCA broker becomes insolvent?

If an FCA regulated forex broker files for bankruptcy, FCA ensures that traders are compensated via the Financial Services Compensation Scheme (FSCS). The (FSCS) makes it possible for the trader to get maximum compensation of £50,000 when their broker goes bankrupt. This means if a broker is insolvent, traders would be entitled to get compensation of up to £50,000.

How secure are my funds when trading with a UK based forex broker?

With the regulatory role played by the FCA, your funds are safe when you trade with an FCA regulated broker. FCA mandates all forex brokers in the UK to always have at least £1 million operating capital.

This helps to make payment to customers done real-time and also ensure that the traders’ funds are kept secure if the company happens to go insolvent. The mandate of brokers keeping segregated forex accounts with that of their traders also ensures the safety of funds you invest with an FCA forex broker.

The trading restrictions imposed on UK based Forex brokers

Contrary to what is obtained with the forex brokers in the US , brokers in the UK don’t impose forex trading restrictions on traders. Traders are free to trade with any trading technique of choices like hedging and leverage.

They additionally provide a greater diversity of trading and spread betting and binary options are considered legal in the UK. Given the fact that spread betting is not taxable in the UK, many people find it as an attractive substitute to Forex trading.

The payment options that UK based forex brokers’ offer

UK Forex brokers support varieties of payment options. Traders have options like credit card payments (Visa, MasterCard, Diners Club International, Union Pay etc), online payment processors like (Paypal, Neteller, Skrill, QIWI, Perfect Money etc), payments through bank check and bank wires.

Bank wire transfers are commonly processed within 24 hours of your withdrawal request. Nevertheless, the funds are credited into the trader’s bank account only after two to five days.

The Financial Conduct Authority and Forex Trader Protection?

The Financial Conduct Authority (FCA) is the UK regulatory body. It serves as the consumer watchdog organization and gets its funding from all the regulated financial services companies which include forex brokers.

The FCA’s duty is to license and regulate UK financial institutions. It works together with the Bank of England (BOE) and the Prudential Regulatory Authority (PRA).

The FCA is associated with the MiFID derivative and the EEA requirements in respect to the rules and regulations that govern Forex trading. The regulatory framework offered by the FCA ensures that the Forex brokers function in the interests of traders, and to provide a vigorous trading environment.

Preventing financial malpractice is the central goal of the role played by the FCA. FCA frowns upon and squarely deals with scams, fraud, and malfeasance, promotion of the advantages of Forex trading or related activities.

The FCA work hard to protect traders from unscrupulous Forex brokers.

It is thus unlikely that you will be scammed when you trade with an FCA regulated forex broker given the 1 million pounds minimum account balance and segregated account requirements among other regulations that brokers must comply with.

How the FCA helps to minimize the traders’ risk?

The Financial Conduct Authority (FCA) is a regulator that safeguards the interest of traders. FCA limit the leverage that is offered by brokers and in so doing, the FCA control the amount of risk the traders are exposed to.

The FCA as well does its utmost to handle financial abuse and misconduct in the Forex trading. All FCA regulated brokers must comply with the strict regulations in the UK.

If any customer is financially abused or defrauded, the FCA conducts an inquiry and carries out investigation accordingly. If companies act in an irresponsible and reckless manner, the FCA can revoke its license and inflict severe punishment against the company.

That’s why it is essential to trade with a broker that is regulated by the FCA than going for offshore unregulated Forex brokers.

With the requirement of the maintenance of segregated accounts, client money is held separate from the broker’s money. This is an essential precaution when traders make claims against the company or when for any reason the company is liquidated, goes bankrupt or is defrauded.

Also, the maximum leverage of (1:30) as proposed by the FCA in December 2020 and is set to come in affect on August 1 st 2020, helps to minimize traders’ loss from a high of 1:500 leverage as it was set earlier.

High leverage boosts traders’ loss when trades go against the trader. The FCA effort is to prevent such occurrences.

Zeal Capital Market Review: Is Zfx.co.uk A Legit Forex Broker?

Please choose swap : Short Swap Long Swap

Only brokers with the same calculation method of swap (as selected in the left table) are presented in the chart on the right.

IG Markets Review

Review

Based on June 2020 figures and on revenue (excluding Forex), IG Markets is the world’s premier CFD and spread betting broker. IG has operated out of the UK since its founding in 1974 and currently serves over 178,000 clients across the globe. It offers four trading platforms from which over 17,000 assets, across eleven categories are available for trade. This broker caters to retail traders, professional clients, and institutional firms. It also offers managed accounts. IG Markets, a component of the FTSE250 (which confirms its fiscal stability), is a signatory of the FX Global Code of Conduct and thus has established itself as a trustworthy brokerage. We were delighted to find during our IG Markets review that this respected broker is one of the only brokerages that can accept traders in the United States, and we were impressed to see that their offerings are highly competitive across the globe.

Features

The UK Financial Conduct Authority (FCA) provides the regulatory framework for IG Markets LTD and IG Index. The Financial Services Compensation Scheme (FSCS) protects deposits up to a maximum of £85,000. As outlined in the Client Assets Sourcebook (CASS), client funds are fully segregated from corporate funds. IG Markets is fully compliant with its regulator and operates as a transparent, trustworthy brokerage.

IG Markets LTD is authorized and fully regulated by the FCA.

This broker derives the majority of its income from spreads and commissions on over 17,000 assets. The EUR/USD displays an average cost of 0.75 pips, pricing it in the middle of the market. Commissions for equity CFDs in the UK and the EU are 0.10% per side, with a £10/€10 minimum, while US charges are $0.02 per share but no less than $15. Trades settled over the phone bear a fee of at least £15/€25/$25.

Guaranteed stop premiums are charged an additional 0.30% fee for equity CFDs, and an additional 1.2 pips mark-up in the EUR/USD. While each asset comes packed with extra charges, to give credit where due, IG Markets is fully transparent about them. Overnight financing costs may be obtained directly from inside the trading platforms. Additional charges include a direct market access (DMA) fee for select assets, costs related to live price data feeds, ProRealTime Charts of £30 per month, an inactivity fee of £12 per month, a £50 account documentation fee (where applicable), and a 0.50% currency conversion fee.

IG Markets properly explains overnight swap charges with examples.

Guaranteed stop premiums carry comparatively excessive mark-ups.

Additional charges may apply, but this broker is transparent about all extra costs.

Per its website, IG Markets does not profit from client losses.

What Can I Trade

Asset selection at IG Markets is excellent, with over 17,000 assets across eleven categories. Pure Forex traders have access to over 80 currency pairs, and 27 commodities provide outstanding diversification opportunities. Eight cryptocurrency pairs and the Crypto 10 Index grant an entry-level introduction to this emerging sector. With over 12,000 equity CFDs and Index CFDs across 26 markets, traders have access to a wide range of trading opportunities. More markets like Bonds, Options, and ETFs complement the outstanding offerings.

The asset selection at IG Markets is outstanding.

Besides core markets, this broker offers a wide range of additional assets.

Account Types

Most traders will manage their portfolios from the CFD account type. UK-based clients have the option of a tax-free spread betting account. The minimum deposit for either account type is £250 or a currency equivalent. IG Markets additionally offers more traditional non-leveraged products like share dealing, IG Smart Portfolios, ISAs, and SIPPs. The availability of account types is dependent upon geographical location, and traders may request an upgrade to professional status. Leverage differs based on asset and account classification.

CFD accounts are the most widely utilized account type.

IG Markets also offers traditional products to its traders.

Trading Platforms

IG Markets focuses on its proprietary webtrader, which is also available as a mobile version. It is fully customizable, provides a very clean and informative deal ticket, and comes equipped with an extensive charting package. IG Live, this broker’s streaming market coverage, is available together with analytics, alerts, and signals. Over 86 million trades were executed in 2020 with an average speed of 0.014 seconds. ProRealTime fully integrates with the webtrader and enables professional traders to automate their trading strategies. It facilitates market analysis with over 100 indicators and presents additional custom indicators. IG Markets claims to be the only UK based broker to offer ProRealTime.

This broker also supports the retail favorite MT4 trading platform. It allows full automation of trading strategies, and IG Markets provides a range of add-ons which are generally required to unload the full functionality of this trading platform. Traders may take advantage of 18 unique indicators beside Autochartist. The L2 Dealer handles direct market access (DMA), but it may come at an additional cost for live price feeds. It features improved liquidity and pricing, professional order control, and enhanced trading technology. This broker has done an outstanding job of delivering three distinct trading portals.

The proprietary webtrader is where most traders will manage their portfolios.

The ProRealTime upgrade unlocks more advanced features.

An upgraded MT4 trading platform provides an excellent trading experience.

Traders may use the L2 Dealer for DMA trading.

Unique Features

Transforming the MT4 trading platform into a powerful trading platform is 18 add-ons that were developed by IG Markets. Without the add-ons, the MT4 would otherwise represent a sub-standard offering. Further supporting automated trading is the VPS service provided in partnership with Beeks. The monthly cost of £50 is excessive, however, placing it out of range for most retail traders. IG Markets does offer it at no charge if the trader’s account balance exceeds £5,000.

Adding more value to manual traders is Autochartist, which integrates with the MT4 trading platform. It is an automated chart recognition tool, scanning for trading opportunities, and sending alerts. It assists manual traders in the analytical process, providing them with a broader range of possibilities. IG Markets has gone above and beyond what most other brokers currently provide in order to ensure that its traders operate from a competitive trading environment.

APIs also support advanced trading solutions developed by institutional clients and FinTech companies to connect to IG Market. This broker heavily supports algorithmic trading across all platforms through various applications. Traders who prefer a more traditional approach can take advantage of IG Smart Portfolios, this broker’s managed portfolios.

Over 18 MT4 add-ons transform the trading platform from a sub-standard basic version to a powerful trading portal.

The VPS service provided in partnership with Beeks supports automated trading, but the £50 monthly fee is excessive.

Autochartist assists manual traders in their daily analytics.

IG Markets provides APIs to allow advanced third-party trading solutions to connect and operate in the IG infrastructure.

Algorithmic trading fulfills a critical role at IG Markets.

IG Smart Portfolios leads a range of traditional brokerage services provided.

Research and Education

One of the things that most impressed us during this IG Markets review is the company’s research and educational offerings. IG Markets provides research under its news and trade ideas section. Several articles are published during each trading day, covering relevant topics and offering trade ideas to manual traders. This broker also provides IG trading signals directly from inside the trading platforms, divided into technical and fundamental categories. Trading alerts may also be created and sent via e-mail, SMS, or push notification. Traders can also sign-up for specific subscriptions or download reports. While algorithmic trading and automated solutions are the preferred approaches, IG Markets renders an excellent service to manual traders.

News and trade ideas feature several daily articles relevant to the trading day.

IG trading signals are available directly inside the webtrader.

Trading alerts are distributed via e-mail, SMS, or push notification.

Traders may additionally sign-up for subscriptions or download special reports.

The IG Academy is the primary portal where this broker focuses on education. It features ten courses and live webinars of between 30 minutes and 60 minutes in length. The quality and attention to detail by IG Markets in its educational section is evident. Coverage of financial events and trading podcasts are equally available, giving new traders more working examples of how financial markets function. A multitude of articles discussing the most critical aspects of trading complements the IG Academy and its outstanding educational service, allowing new traders to enhance their knowledge base before managing their own portfolios in live markets.

New traders have access to a great approach to education at the IG Academy.

Podcasts further enhance the quality of auxiliary trading services provided.

Customer Support

Clients have access to customer support 24/5 and may either call directly, send an e-mail, or use the webform. An extensive FAQ section answers the most basic questions, while an online forum is equally available. IG Markets is a well-managed brokerage where customer support is unlikely to be required but is easily accessible if an unexpected situation arises.

Bonuses and Promotions

IG Markets does not provide bonuses or offer special promotions.

Opening an Account

An online application handles new account openings swiftly. New accounts require verification per regulatory requirements. A copy of the trader’s ID, together with a proof of residency document, will satisfy AML/KYC requirements. The online form needs only a few minutes to complete and represents the standard operating procedure.

Deposits and Withdrawals

Deposit and withdrawal options at IG Markets are limited to bank wires, credit/debit cards, and PayPal. The minimum deposit is £250 or a currency equivalent. While this broker does not levy charges for deposits and withdrawals, third-party fees are generally applicable. A limit of £20,000 every 24 hours is in place for card transactions. For security purposes, IG Markets may ask clients to verify their accounts and source of income. The name on the trading account must match that of the payment processor. This area, with only limited alternatives to funding, represents one of only a few weaknesses at IG Markets.

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