While the legal framework remains unchanged so far, it is important to distinguish between brokers who are regulated by the FCA and those who are authorized or regulated by another body in the European Economic Area EEA. A firm that is EEA authorized is one that is regulated by another body or agency in the EEA area for example CySEC in Cyprus.

Such brokers are allowed to offer products and services to traders in the UK but they must meet the minimum standards agreed upon by all countries in the EEA.

The FCA may also investigate and consider a dispute arising between a trader and an EEA authorized broker and may also be able to compensate customers in the event that the broker is unable to. The compensation framework in the country where the broker is based may compensate customers too if the broker fails. A broker that is regulated by the FCA is bound by the financial laws of the UK. Such a broker must conduct itself in such a way that adheres to the standards provided for by the regulatory body to be able to offer binary options products and services legally in the UK.

FCA-regulated brokers are also subject to regular auditing to verify that they are operating according to the rules and regulations stipulated by the FCA. It is important to distinguish between FCA-regulated brokers and FCA registered brokers.

A registered broker is not necessarily regulated. On the contrary, the registered broker may not be directly regulated by the FCA and may not be subjected to audits and the financial conduct required by the regulatory body.

This means the broker can conduct its operations as it feels. It is worthwhile noting that registration is usually the first step toward acquiring full regulatory status so most brokers who are registered are unlikely to start conducting themselves poorly. So far, the FCA has been keen on assuring traders that they can continue trading with its regulated brokers. FCA also told EU traders who trade with FCA-regulated brokers that their consumer rights will continue to be upheld and protected.

The negotiations between the UK and the EU will continue for at least two years. Until then, the legal framework pertaining to online trading should remain unchanged. If you are an EU citizen, you may continue trading with your FCA-regulated broker — the financial rules have not yet changed following Brexit.

UK citizens need to appreciate that the most reliable brokers are those regulated by the FCA. It is therefore a good idea to confirm that a broker does indeed comply with the FCA standards and regulations on financial conduct.

The Financial Ombudsman in the UK was initially the Financial Services Authority FSA , which was closed on April 1, The FSA was split into the Prudential Regulatory Authority PRA and the FCA. The FCA primarily protects the interests of traders investing in the financial markets in the UK, making it important to choose a binary options broker that is fully regulated by the FCA. There is a difference between EEA authorized brokers and FCA regulated brokers.

EEA authorized brokers are regulated by other supervisory bodies within the EU and not by the FCA.

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However, these brokers may still offer their services to traders in the UK if they meet certain minimum requirements provided for by the FCA but the FCA may not audit them.

FCA-regulated brokers operate strictly under FCA rules and regulations in order to provide trading services and products to traders. These brokers are considered the most dependable as they are subject to regular audits by the FCA. Sunday, 07 August Brokers Official FCA Regulated Binary Options and Forex Brokers. Official FCA Regulated Binary Options and Forex Brokers While the legal framework remains unchanged so far, it is important to distinguish between brokers who are regulated by the FCA and those who are authorized or regulated by another body in the European Economic Area EEA.

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The following brokers are EEA authorized: XM Nadex IG Plus EToro FCA Regulated V. EEA Authorized A firm that is EEA authorized is one that is regulated by another body or agency in the EEA area for example CySEC in Cyprus.

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FCA Registered and FCA Regulated It is important to distinguish between FCA-regulated brokers and FCA registered brokers. Effects of Brexit on FCA regulated brokers So far, the FCA has been keen on assuring traders that they can continue trading with its regulated brokers.

Conclusion There is a difference between EEA authorized brokers and FCA regulated brokers. Joomla SEF URLs by Artio. SPECIAL FOR US TRADERS. Most Popular Top 5 Brokers Comparison December 12, No Deposit Forex Bonus: Disclaimer March 27, Official FCA Regulated Binary Options and Forex Brokers August 07, Harami Candlestick Chart Pattern In Binary Options Trading July 24, What Is the Difference between CFD and Binary Options February 10, Home Bonus Brokers Reviews Comparison Demo Accounts.

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