Category: Uncategorized

Formed: 1 April 2013
Jurisdiction: United Kingdom
Headquarters: 25 North Colonnade London
Website: www.fca.org.uk

FCA Regulated activities

• corporate governance
• financial services
• securities and derivatives (category including Forex & CFD trading)
• insurance
• consumer protection
• financial literacy

Introduction to FCA

The Financial Conduct Authority (FCA) is a financial regulatory body in the United Kingdom that operates independently from the UK Government, is a conduct regulator for over 58,000 financial service firms, markets in the UK, as well the Prudential Regulation Authorization.

The FCA took responsibility for financial stability by bringing together a new regulatory structure and enhance its predecessor the Financial Services Authority (FSA) responsibilities, the agency that regulated financial service between 2001 and 2013. The authority received significant power to cover responsibility for regulation of the financial sector and firms, including CFD and Forex brokers, providing services to traders and investors. The objective of FCA is a maintenance of the financial market integrity in the United Kingdom and secure an appropriate degree of trader’s protection.

FCA, as an independent public authority, regulate the conduct by both retail and wholesale financial services firms with a purpose defined by the Financial Service and Market Act 2000 (FSMA). FCA aims to make financial markets work well so that traders and investors get a fair deal, through its enhanced market integrity and promote competition.

In this FCA review to get things more clear we cover the following highlights:

• Why trade with an FCA regulated broker?
• FCA Brokers Requirements and Regulation
• How to submit complaint and FCA Customer Support Service
• List of FCA Regulated Forex Brokers
• Conclusion on FCA regulation

Why trade with an FCA regulated broker?

In fact, any firm in the UK whether a business, asset manager, broker or financial investment firm the activity is mandated to be registered and regulated by the FCA. First of all, the FCA set a range of registration requirements before the broker is allowed to operate in the market, which includes raising of fees with a high initial capital to apply for the FCA license and carry out its regulated activities further. The license type based on factors such as a scale of activities and divided to STP license (check on STP Forex Brokers), which imposes EUR 125,000 initial capital and EUR 730,000 for Market Making license. In addition, upon application, the company will be checked for its adequacy to operate in the market, with a review of business plans, its budgets, resources, applied systems, and controls.  The directors and key staff will be interviewed and obliged to have the necessary qualifications with an effective background, so the requirements are met and the director experienced enough to run the brokerage.

In addition, the broker should maintain a physical office in the UK and organized to comply with the FCA rules and mandates at all times. FCA Brokers operate their business based on the FCA handbook guidelines to ensure clients are being treated fairly, the information provided accurately and most important, transparently.

The protective measures that are important to the trader, in particular, issues brokers in demand to segregate the client’s funds from the broker’s operational fund. That means broker stores their operation fund at separated from the client bank account, thus cannot use clients money for any purpose or even touch it. Furthermore, FCA brokers provide negative balance protection to their traders, so clients cannot lose more than its initial deposited capital. Lastly, the maximum of protection level achieved by solve of an unlikely event when a broker goes bankrupt or fall under insolvency issues, the client and his funds are protected, by the Financial Services Compensation Scheme (FSCS) so the client receives funds back with an upper limit of GBP 50,000 per client.

The regular supervision tasks of FCA ensures follow of strictest demands, while every authorized entity report, confirm and maintain on a daily and monthly basis, respectively, otherwise, the authority will get involved and will check the performance in detail. In the event broker didn’t follow FCA handbook guidelines, it may cause further investigation of a case, with imposing of fines, while powers have already been seen loads of their announcements, heavy fines or even dismisses of the broker’s license. See below an example of some of the largest financial penalty in the history of £284,432,000 for forex failings. In addition, the FCA is able to ban financial product, firm or the particular asset manager, as well have the power to instruct firms to immediate action, modification or its revoke if necessary.

With all the strict regulatory guidelines, if a trader or investor still believes they are encountering unfair trading experience with the broker, they can file a complaint against the broker with the relative department. Firstly, the regulated brokers in place must have a procedure to resolve disputes and respond within a set time, however, you can always go further and submit a complaint to the Financial Ombudsman Service, known as claim handlers. In addition, read our step by step guideline how to a complaint an FCA regulated forex or CFD broker.

Submit the complaint about UK broker: https://help.financial-ombudsman.org.uk/help

The benefits of trading with the FCA regulated Forex Brokers are at a glance, as the authority ensures strongly the broker’s responds, monitoring products, and other issues along with the compensation when necessary. Overall, the FCA made it in a scrupulous way by the sharp check on the firm, that the brokerage is computable to the successful prospective of operation, further market development and of course fair treatment of the traders. Therefore, FCA gained its highest consumers’ rankings, as the traders getting appropriate trading needs among market offering, unparalleled advice and knowledgeable behavior towards any occurred questions.

Moreover, the education and permanent support at FCA allows to find out about customer rights and financial advice, offers to complain, report a scam or unauthorized firm. And provides a guideline on how to avoid scams, with the comprehensive Avoid listing up-to-date.

FCA consumer organizations service: https://www.fca.org.uk/consumers

List of FCA Regulated Forex Brokers

The trader should carefully search for information about FCA forex broker license directly through an official site, which will appear on the Financial Services Register.

Moreover, the regulated broker website at most cases shows its FCA register number, yet confirm its statement at official source as well, due to numerous clone and fraud firms that use register number to pretend official.

In addition, always check FCA Brokers Reviews, in the instance the full list of the UK regulated brokers’ list at our website currently includes over 80 FCA Regulated Brokers, and growing, while the total number of licensed ASIC Regulated Forex Brokers exceeds 340.

Conclusion on FCA regulation

The UK as one of the most respected and known financial centers that deliver strong economic figures throughout history, as well as stable political positions and influence on international markets, keeps the excellent level of a regulatory system.

In fact, FCA is one of the most respected trading industry authorities that establish the highest protective tools and keeps market integrity through its strong influence and monitor of the situation. The FCA enhanced their responsibilities to the financial and traders sectors by transparent ways the agency determines policies and carries its supervision functions. Also, as the main message of FCA is to only cooperate with authorized firms, the authority supports vast of data on how to make the best practice and avoid frauds. Read more about how Forex Trading Scam work at our article by the link.

Overall, some of the most reputable brokerages and regulated firms indeed regulated by FCA, while the status of FCA regulated Forex Broker the trader or investor can trade assured of a fair and effective deal and an accurate follow of obligations towards the clients’ protection with the legit regime itself.

• What is SVG FSA?
• Why not trade with an SVG FSA registered broker?
• SVG registration requirements and its “regulation”
• Is there a way to submit complaint to SVG FSA?
• List of SVG Forex Brokers
• Conclusion on SVG FSA

Introduction to SVG FSA

What is SVG FSA? 

St. Vincent & the Grenadines or SVG through increasing demand for the financial sector and offshore zones itself created the Financial Services Authority FSA with a responsibility to regulate non-bank, certain entities in the financial sector and control the international financial services industry.

• SVG FSA was established November 2012, with a mission as the authority mentions on its official website – to develop, regulate and supervise St. Vincent and the Grenadines as a secure and competitive financial center in the international and the financial sector in accordance to best practices.
• However, Forex Trading or Brokerage activity, which is the main topic in financial investment world also rapidly growing in its demand, does not have a solution of regulation of Forex, CFD and Binary Options in SVG.
• The regulation or even licensing of the Forex business is not a part of the SVG FSA activity, as stated by the official warning.
• “There are financial institutions out there that falsely claim they are registered or licensed in our jurisdiction. Their purpose for doing this is more than likely for illicit reasons and potential customers should be very cautious about conducting business with them. 
  FSA, St Vincent and the Grenadines. (Learn more about SVG FSA Function Role)

Is SVG Broker Scam or Safe? 

St Vincent and the Grenadines of SVG is an island in the Caribbean, which became quite a known location for its tax haven offering out of the international companies. St Vincent is indeed an attractive solution among financial companies and those businesses that for one reason or another choose to operate through an offshore company.

• Since the jurisdiction itself offers easy-to-achieve setup demands through very quick, simplified process, while the firm does not necessarily need to operate an office in SVG, allow to maintain low initial capitals, no strict establishment rules or requirements, yet allows running a global business.
• Furthermore, there is no sharp regulation or overseeing of the company operation implemented and Forex Business itself is not regulated, see snapshot from FSA SVG website below. 
• Therefore, Forex business established in SVG is not well regulated in St Vincent, the SVG broker can run its activity, provide trading environments and accept Forex payments through credit cards, but is not overseen well in comparison to the top tier authorities, for this reason is not safe entough to trade or recommended to sign in. See our list of offshore and Unregulated Broker to Avoid, or Read more about Why Trade with FCA UK Brokers) 

Why not trade with an SVG FSA Registered broker?

Considering the fact that SVG FSA enables low set up requirements with No business planning, No management interview or check of the company background. While the registered company operates with No Handbook, No Regulatory Reporting, No Impose of Fines in case of its malicious service and there is No any protection implied alike Fund Segregation, Negative Balance Protection or Compensation in case of insolvency. We can not conclude SVG Broker as safe to trade and better advise to avoid them. 

• Therefore, apart from beautiful seaside beaches, the SVG with its offshore environment became a known hub of financial firms, while the legal environment can be quite loose towards the Forex business and brokerage itself. For better understanding check out the UK FCA Authority and its sharp regulation, overseeing of the brokerages and heavy fines in case of the company fail to obligations, see snapshot of UK FSCS protection applied too, while SVG Brokers apply none. 

SVG Registration Requirements

Obviously, the investment and trading service is a popular trend, however in order not to fall under the scams and frauds, which are in fact growing daily, you should carefully choose a company before any funding is done. Forex and derivatives trading as a decentralized market can be a highly risky opportunity if the company delivers trading service without strict overseeing from the industry authority.

• For that reason, we always advise choosing among the most reputable and of course heavily regulated brokers and to protect yourself from potential scammers. For instance, as an example learn and compare eToro offering and heavy regulation.
• To get more knowledge, you can also read our article Forex Trading Scams and know how to protect yourself, with a deeper understanding of how frauds work.
• In addition, most often an offshore broker alike SVG Brokers are associated with other companies while the offering varies slightly from the majority of frauds, yet the result is equally disappointing. The major concern about lack of regulatory oversight places SVG companies much under the recommended safety line, in essence, you only get the honest word of the company.

Complaints and scams to SVG FSA

We have received many user reviews, while the majority of them are obviously negative. What are the Complaints about? Mainly – Rejects client withdrawal, meaning a client who puts money cannot get profits or funds back. See popular Broker – Olymp Trade and read comments from real traders below.

• In case you have negative scenario or behavior from the Broker in SVG, SVG FSA will not be able to assist through customer protection, to advise or take action further, the trader stands completely alone at that point. Therefore, there is no way to complain or receive any support from the authority. See snapshot from SVG FSA about risks involved. 

Fake Trading Brokers

In addition, there are many fake brokers stating their address, regulation or registration at SVG, while pretending to be a legit firm but in fact are not.

• SVG authority recognized the risky potential and just warn traders that in case of trading with an unlicensed and unregulated company the trader using the services at his own risk. As an unlicensed or offshore broker most often not subject to any supervision of practice or regulatory laws the company may easily mislead or false any information or the service providing itself.

The only way the SVG FSA tries its attempt to protect clients is to place an advise and list entities at the alert area as of the false license claims in the SVG jurisdiction, yet the protection “actions” are ending just by that. SVG FSA – Investor Alerts 

List of St Vincent and the Grenadines Forex Brokers

Currently, we have reviewed many Forex Brokers from St. Vincent and the Grenadines, while none of them were included into the list of trusted or brokers with a recommendation of safe trading. The only companies that may be trusted are those brokerages that hold additional licenses from reputable authorities and at the same time run business in SVG for international access, check GO Markets Broker.

• We suggest check on the broker carefully before any sign in is done, revise the broker’s regulation status, its authorization claims, news and reputation by reading reviews and checking on the legit documentation.
• As well, you can find and verify company you concerned about at our regularly updated list of Brokers to avoid or submit your inquiry. Then if you found a broker at the list you better stay away from any cooperation or trading with them at all cost, as listing consists of mainly non-regulated and offshore firms which are not recommended or safe. 

Conclusion on SVG regulation

The final thoughts conclude that traders and investors should ensure a clear understanding of the procedures and risks involved while the company or another offering the forex trading opportunity and not properly licensed, or in other words is offshore Broker like SVG Brokers are. 

• As of the recent growth of international trend of Forex, trading investors are urged to exercise caution before any sign in or acceptance of the offering. Any broker declares its regulation by FSA SVG, in substance, made a false claim. As it became clear now, why the SVG incorporated firms disclose information on the risks, in particular, the possibilities of loss, therefore we recommend avoiding offering from the brokers mentioning their SVG FCA regulated status.

In order to become a trustable company in providing financial and trading service, the Broker should be sharply regulated and retain a sufficient level of reputation through its operational history. Definitely, it is not a gaining point towards trust to the brokerage that is an offshore-based company and was established with a low registration requirement while none of the protective principles followed.

The security of funds always stands first, therefore, you better consider brokerages from other jurisdictions that maintain a sustainable level of financial and investment services and forex trading in particular through a protective set of rules. For this, we advise finding a broker with licenses from top-tier authorities, such as FCA, ASIC, or CySEC. Sign in only with trustworthy brokers, such as FP Markets, HFM, or recommended brokers by the link.  

Formed: January 1, 1999

Jurisdiction: Belize

Headquarters: Belize City

Website: www.ifsc.gov.bz

IFSC is responsible for licensing of the following:

• International Business Companies (IBCs)
• International Asset Protection and Management
• Brokerage, Consultancy and Advisory Services in any financial services
• Trading in Foreign Exchange, Financial Commodity-Based Derivatives and Other Securities
• Money Transmission Services
• Payment Processing Services
• Money Brokering
• Money Lending and Pawning
• Money Exchange
• Safe Custody Services

Introduction

The financial services sector of Belize, in particular, international Forex and trading services companies, is a relative newcomer within the financial industry, yet recently expanded Belize economy to a world-recognized hub.

Belize as an English-speaking country in the heart of Central America obtained its independence in 1981 and since then approaches to diversify its portfolio through various opportunities to international investors and for instance included an attractive offering to firms operating financial services. Belize possibility, which is based on the offshore concept allows investors to engage in a variety of activities, obtain official status, run brokerage accounts, operate trading service, commission arrangements and other commercial transactions. Belize is also an active member of the Caribbean Financial Action Task Force (CFATF) that subscribes to its core principles to eradicate money laundering and to foster stability in the global financial system.

While developing and through its enlargement of potential, many online forex brokers used a Belizean IBC as a perfect opportunity to run international brokerage service and make authorized financial transactions. Therefore, through its growing demand and necessity, Belize established independent local authority with a purpose to carry out financial regulation responsibilities including licensing of financial market participants and exchanges, and the supervision of their activities itself. The International Financial Service Commission or IFSC Belize started its operation in 1999 as a government agency to protect the reputation of Belize as an offshore financial center.

IFSC being a self-regulatory body operates through a set of international rules is in charge of licensing of all international financial service providers through a set of requirements that designed to ensure compliance with international best practices. The scope of responsibilities includes promotion and protection of Belize as it became an important international financial center, through regulation and supervision of international financial service providers. In addition, IFSC powered to impose administrative sanctions and disciplinary penalties for a brokerage or investment firms that come under the relevant Belize financial acts.

https://www.ifsc.gov.bz/about-ifsc/

Why not trade with an IFSC registered broker?

Belize as a gorgeous tourist destination, while also is tax heaven with a zero tax structure that established its own regulation for financial investment and Forex firms licensing due to high demand and necessity of regulation. Ever since Belize became a known offshore zone and Forex hub, as destination attracted thousands of brokerages seeking for an opportunity to be legitimate firm, yet to skip complicated and costly establish procedures.

Therefore, development of perfect business environment attracted numerous enthusiasts and made Belize as an investor-friendly economy that enables business growth, however those firms and individuals that are seeking for an opportunity to enable easy fraud process were allured as well. Definitely, it’s a very profitable chance to open brokerage firm in a destination that saving establishment costs and allows to enjoy almost unlimited profits.

So getting back to the point, why an offshore broker or investment firm is not a recommended option to any trader, let us look closed what are the requirements to become a licensed IFSC company. First of all the firm should maintain its minimum operating capital depending on the service from $10,000 to $100,000, then to pay international financial service provider fee of $1,000 only! The annual license fee varies on various kinds of financial services that also include Forex, trading securities, derivatives, and financial instruments, while a fee is either $2,500, $5,000, $25,000.

Yet, if to compare to reputable regulatory supervision, these rates are extremely low, while the costs of setting up considered to be one of the lowest worldwide. Meaning, the company is not able to operate or guarantee the safest trading environment with such a lack of capital, even more, brings uncertainty to brokers performance. Moreover, there is no strict requirement for a company to segregate clients funds from the company ones, a meaning broker can use trader’s investment for their own purposes, like heavy advertising as an example. The broker is not either shall establish a physical branch or office in a destination, while the directors and management would be only slightly checked in terms of their proficiency.

In regards to audit and control of how the Forex broker or company operates, the IFSC does not implement comprehensive reporting demand, so the company can easily hide its true nature of performance.

Although IFSC makes its best to regulate and restrict firms by impose of fines, most of IFSC brokers getting out of unlikely situation quite easy, as fewer standards allow to enjoy almost free operation in financial markets.

In comparison to trusted authorities in the EU, the US or other jurisdictions, the regulated broker catered and demanded to detail commitment in regards to trader protection, while IFSC companies still operate with an environment sufficiently to fraudulent activities.

Complaints and scams

While the main duties of the IFSC, concerns about the provision of effective services and registration of international companies, the authorization process and accepts complaints from foreign traders. The trader should firstly contact his service provider and try to resolve an issue through the company, yet in case you are not satisfied with the handling result to move further and contact the authority. The transfer of the complaint to IFSC should include detailed data with information on the company complaining, as well as evidence documentation.

Submit a complaint by the contact email: complaints@ifsc.gov.bz

Based on the findings, IFSC may impose a statement to the company with a requirement of compensation. The IFSC is not responsible for further compensation, therefore quite often the dishonest brokers disappeared or didn’t take stated action, as the authority can do nothing about it. Means, the trader will remain on his own to resolve issue further and can only submit a case to the court for appeal.

The IFSC adheres to promote the development of the Belize financial service industry and due to numerous frauds and high activity of scams specifically from an offshore zone, the authority submits from time to time warnings against slippery brokerages and other protective information. To alert the public and financial sector whether such an offering appears in the market IFSC post notice that includes only those firms that are not registered under the IFSC or obviously false certification or licenses. Means the authority didn’t check on the firm before it establishes and can’t support by any data how they operate. However, due to the lack of Belize regulation requirements itself, and its set of standards which is unfortunately very far comparing to the trusted industry regulators, the statements rather not convincing and effectiveness remains questionable.

IFSC Warning Notices: https://www.ifsc.gov.bz/category/warning-notices/

List of Belize Forex Brokers:

About 50 Belize Forex Brokers were reviewed by us, in fact, most of them appeared in the list of Brokers to avoid as the implemented safety measures do not allow us to trust them. Thus we do not recommend trading with them and advise to consider only those that hold additional licenses or regulated by trusted jurisdictions.

The lists of IFSC licensed service providers are regularly updated through an official website and available for verification at all times.

“Investors and other users are warned not to deal with any entity whose name does not appear on the list for the service or business in question. It should also be noted that under the laws of Belize, a separate license is required for each kind of service or activity.”

https://www.ifsc.gov.bz/licensed-service-providers/

Conclusion:

Forex trading witnessed thousands of scams and numerous malpractices that were taken by unethical brokers, while in fact the majority of them indeed located in an offshore zone and known heavens with zero taxes. The most dishonest ones always seeking the easiest way to establish allegedly legal firm, through a license that does not implement a strict regulation or reporting. The fraudulent activities carried out in a most sophisticated way while it’s been hard to detect from where the offering coming from. Therefore, traders should always be aware of these firms that corrupted an image of Forex trading and trust to only well-regulated brokers incorporated and heavily regulated by the known authorities like UK’s FCA, Australian ASIC and similar.

Considering the fact that IFSC has not implemented the strictest standardization that may guarantee trustable provision of Forex or trading service delivery, we do not recommend choosing among IFSC companies. Although, a newly implemented increase of the capital requirement definitely assists in a further decrease of new suspicious brokerages establish and those firms that seeking for an easy solution to skip regulation. However, currently, there are international brokers that do hold multiple licenses, including IFSC one and are regulated by other jurisdictions, which allows them to deliver an excellent environment for trading. Therefore, you should choose a broker and forex trading provider among existing testimonials and consider only those that are regulated. Check out our recent articles about ASIC, FCA or other authorities to see the difference between the implemented regulations.