UK Forex License (FCA)

All financial activities in UK are regulated and controlled by FCA (Financial Conduct Authority). FCA regulator measures how FCA regulated firms will meet their expectations and the risk they pose FCA objectives.

FCA regulation means to be supervised with Pillar programs.

  • Pillar I is a program of proactive, firm-specific supervision for the largest firms and groups.
  • Pillar II is event-driven, reactive supervision, which is focused on dealing with crystallized or crystallizing risks in accordance with FCA risk appetite.
  • Pillar III is FCA thematic approach, where they focus on risks and issues for a sector as a whole.
There are three categories relevant to forex broker services in the UK:
Forex Dealer License

A complete license similar to Market Maker kind of business or having the option to run a B-Book as the client’s counterparty;

License Free: Euro 730,000

Intermediary License

A "Matched Principle" licensee limiting a broker’s activities to Straight-Through-Processing (STP) of orders in the case of an Agency or A-Book model.

License Free: Euro 125,000

Restricted Broker License

An introducer-type of license allowing sales and marketing but not authorized to hold client funds.

License Free: Euro 50,000

UK

Different from forex license in India and forex license in Singapore there is a lot of FCA license categories. Before FCA license application, understanding FCA license categories is very important. There are 73,000 companies regulated by FCA and they have different license categories. FCA license cost, FCA license fees and FCA capital requirements varies between license categories.

MT4 White Label recommend you FCA umbrella services to achieve regulated by FCA without FCA capital adequacy. FCA umbrella companies use all rights of main company and operate under their own brand.

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