Understanding UK Trading Regulation
Everything UK investors need to know about FCA regulation, FSCS protection, and how to verify whether a broker is legitimate before depositing funds.
What Is the FCA?
The Financial Conduct Authority (FCA) is the UK's financial regulatory body, responsible for ensuring that financial markets operate fairly and that consumers are protected. Any firm offering financial services in the UK must be authorised or registered by the FCA.
The FCA sets strict standards for how firms must treat customers, manage client funds, and disclose risks. Firms that fail to meet these standards can face enforcement action, fines, or have their authorisation revoked.
Key point: If a trading platform is not FCA-authorised, your funds are not protected under UK law, and you have limited recourse if something goes wrong.
FSCS Protection: Up to £85,000
Your safety net when an FCA-regulated firm fails
The Financial Services Compensation Scheme (FSCS) protects eligible deposits up to £85,000 per person, per firm. This means if an FCA-regulated investment firm goes bust, you could claim back up to £85,000 of your eligible funds.
FSCS protection applies to most regulated investment activities, including stocks and shares ISAs, investment advice, and certain types of trading accounts. However, it does not cover losses from trading itself — only situations where a firm fails or provides negligent advice.
What FSCS covers:
- Deposits with FCA-regulated firms (up to £85,000)
- Investments if the firm gave negligent advice
- Insurance policies if the provider fails
What FSCS does NOT cover:
- Cryptocurrency (not FCA-regulated in most cases)
- Trading losses from market movements
- Unregulated overseas brokers
How to Check If a Broker Is Regulated
Verifying a broker's regulatory status takes less than two minutes. Follow these steps before depositing any funds:
Visit the FCA Register
Go to register.fca.org.uk — this is the official, publicly searchable database of all FCA-authorised firms.
Search the firm name
Enter the exact company name or FCA reference number (FRN). Check that the firm's details match what you see on the broker's website.
Check permissions
Verify the firm is authorised to provide the specific services they're offering (e.g. 'dealing in investments', 'arranging deals in investments').
Watch for clone firms
Scammers sometimes use the name and FRN of a real authorised firm. Always verify contact details and website URLs match exactly.
Regulatory Red Flags Checklist
If a platform exhibits any of these warning signs, proceed with extreme caution — or avoid it entirely.
What to Do If You've Been Scammed
If you believe you've fallen victim to a trading scam, act quickly. The sooner you report it, the higher the chance of recovering funds.
1. Contact Action Fraud
Call 0300 123 2040 or report online at actionfraud.police.uk. They are the UK's national fraud reporting centre.
2. Report to the FCA
Use the FCA's reporting form at fca.org.uk/consumers/report-scam-unauthorised-firm. This helps protect other investors.
3. Contact your bank
Alert your bank or card provider immediately. Under the CRM Code, they may be able to recover funds sent via bank transfer.
4. Gather all evidence
Save emails, screenshots, transaction records, chat logs, and website URLs. This evidence is critical for investigations.
5. Seek legal advice
Consider consulting a solicitor specialising in financial fraud recovery. Some operate on a no-win, no-fee basis.
Choose a Regulated Platform
Browse our independently reviewed, FCA-verified trading platforms. Every platform in our comparison has been checked against the FCA register.