Who May Offer Trading to UK Clients
A firm that offers people in the UK trading in shares, currencies, contracts for difference (CFDs) or other derivatives must be authorised by the FCA, and its permissions must cover that activity. The authorisation, the permissions and the firm's official contact details are all shown on the FCA Register.
Many trading websites named in FCA warnings are run from overseas, quote a prestigious address and hold no authorisation at all. The website itself can look as professional as that of any established broker.
The Protections a Genuine Firm Must Apply
Since 1 August 2019, firms selling CFDs to retail clients in the UK have had to limit trading with borrowed money to between 30 and 2 times the client's own funds, depending on the asset, and to ensure that a client cannot lose more than the money in the trading account. They must also state the percentage of their retail client accounts that lose money, and they may not offer bonuses or other inducements to trade.
Binary options have been banned for retail clients since 2 April 2019. An offer to trade with far more borrowed money than that, a bonus for depositing, or binary options shows that a firm is not operating under the rules that apply to UK clients.
How Fraudulent Trading Sites Operate
A typical fraudulent platform shows a dashboard of rising profits, assigns an account manager who telephones to encourage larger deposits, and then demands a fee, a tax or a further payment before any withdrawal is released.
The balance on the screen is a figure the website controls. It proves nothing until money has been withdrawn to your own bank account, and a demand for payment in order to release your own money is a recognised sign of fraud.
Check the Firm Behind the Website
Search the FCA Register for the firm's exact legal name, confirm that its status is authorised, and read its permissions. Then compare the website address and telephone number you were given with those the Register holds.
Fraudsters also copy the name and reference number of genuine brokers. A website or telephone number that differs from the Register is a reason to contact the firm only through the details the Register lists, and to check the FCA Warning List for the name and the website.
Confirm Where the Deposit Goes
A UK-authorised broker takes client deposits into an account in its own name and must keep client money separate from its own. A request to deposit in cryptocurrency, to a personal account or to a company with a different name should stop the payment.
Before transferring money, use your bank's Confirmation of Payee check to confirm that the receiving account is held in the exact name of the firm on the FCA Register.
How MetaAshes Examines This
A MetaAshes assessment cross-references a firm's details against the official record in a single pass. For this question, the most relevant checks include:
- Authorisation status
- Scope of regulatory permissions
- Official website on record
- Official telephone number on record
- FCA Warning List screening
- Domain registration age
- Payee name verification
- Withdrawal and release fees
- Promised returns
Frequently Asked
How do I know whether a trading platform is regulated in the UK?
Search the FCA Register for the firm's exact legal name, confirm that its status is authorised and that its permissions cover the trading it offers, and check that the website you are using is the one the Register lists.
What should I do if a platform asks for a fee before I can withdraw?
Make no further payment. Contact your bank at once, then report the platform to the FCA on 0800 111 6768 and to Report Fraud on 0300 123 2040, or to Police Scotland on 101 if you live in Scotland.
Can MetaAshes check a trading platform?
Yes. An assessment reads the FCA Register and Warning List, the age of the website's domain, the contact details and the payment details you were given, and reports where those details do not agree.
This guide is provided for general information and does not constitute financial or legal advice.