FP Markets FCA Regulation 2024: Supervision, Investor Protections, and More

FP Markets is a forex and CFD broker offering online trading services to traders and investors worldwide. The broker provides a diverse range of trading instruments, including Forex, Metals, Commodities, Stocks, 

FX Options, Oil, ETFs, Crypto currencies, CFDs, Shares, Spread Betting, Indices, Bonds. It also supports multiple trading platforms and tools such as MT4, MT5, cTrader, WebTrader, IRESS.

Although FP Markets is regulated by several authoritative bodies, including ASIC, CySEC,  FSA, FSCA, SVG, it is not regulated by the FCA (Financial Conduct Authority). In this article, we will explore FP Markets’s regulatory framework, its features, and provide a list of alternative brokers that are regulated by the FCA

Does FP Markets Operate Under FCA?

No, FP Markets does not operate under FCA (Financial Conduct Authority) ASIC, CySEC,  FSA, FSCA, SVG. These regulatory bodies ensure compliance with various standards for financial stability, transparency, and investor protection, though they do not provide the specific protections offered by the FCA in the UK.

What Other Regulations Does FP Markets Have?

ASIC :

FP Markets is regulated by ASIC. Founded in July 1998, the Australian Securities & Investments Commission (ASIC) is Australia’s national corporate regulator, overseeing corporations, markets, and financial services in accordance with the Australian Securities and Investments Commission Act 2001. Being based in Australia, ASIC regulation ensures that the broker complies with Australian laws on financial services, including responsible conduct, risk management, and financial reporting. Client money is kept in segregated accounts, and there is an emphasis on risk disclosure and trader protection.

CySEC :

FP Markets is regulated by CySEC. Established in 2001, Cysec is Cyprus’s financial regulator. Since Cyprus joined the European Union in 2004, CySEC’s regulations align with the MiFID directive, ensuring compliance with EU-wide financial standards and investor protection. This regulation allows the broker to offer services across the European Economic Area (EEA) under the MiFID II directive, ensuring investor protection and transparency. CySEC regulation requires brokers to follow strict guidelines for handling client funds, including segregation and periodic reporting.

FSCA :

FP Markets is regulated by the Financial Sector Conduct Authority (FSCA). The FSCA, which replaced the Financial Services Board (FSB) in 2018, is responsible for overseeing forex and CFD brokers in South Africa. As the primary regulator, the FSCA focuses on creating a transparent and reputable trading environment, aiming to protect investors from scams and fraud. While the FSCA is considered less restrictive compared to European regulators, it is recognized for its strong governance framework, offering traders in South Africa reliable oversight and protection.

FSASVG:

FP Markets is also registered with the Financial Services Authority of St. Vincent and the Grenadines (FSASVG) under registration number 126 LLC 2019. The FSASVG acts as a registry authority rather than a strict financial regulator, overseeing the incorporation and administration of international business companies, including forex brokers. While it does not impose the same stringent regulatory standards as more established jurisdictions, registration with the FSASVG provides FP Markets with the legal framework to operate globally. Traders should be aware that investor protection and oversight under FSASVG may be limited compared to more heavily regulated regions.

Best FCA Regulated Forex Brokers: Alternatives to FP Markets

FP Markets is one of the leading forex and CFD brokers. The broker is not regulated by FCA. It is regulated by other top-tier regulators including ASIC, CySEC,  FSA, FSCA, SVG. There are several FCA regulated brokers that can serve as alternatives to FP Markets. These brokers include: 

These brokers operate under FCA regulation. According to FCA rules, they offer leverage up to 30:1 and provide investor protection and negative balance protection for retail traders. To learn more about FCA-regulated forex brokers, you can read our content on the best FCA-regulated forex brokers.

How Can I Verify If My Broker is FCA Regulated?

To verify if your broker, such as FP Markets, is regulated by the FCA, follow these steps:

1. Find the Broker’s Reference Number or Name: Obtain this information from the broker’s website.
2. Search the FCA Register: Visit the FCA Financial Services Register and enter the broker’s reference number or name.
3. Check the Broker’s Authorization: Ensure that the broker is authorized to provide “Rolling spot forex contract” services to retail customers in the UK.
4. Match Firm Details: Verify that the details on the FCA website, such as the broker’s website and email, match those provided by the broker. Any discrepancies might indicate an unauthorized broker, and you should avoid trading with them.

Frequently Asked Questions ( FAQs)

What is FP Markets?

Founded in 2005, FP Markets is an Australian forex and CFD broker that offers online trading services to traders and investors worldwide. It is a global brand with multiple regulations, including ASIC, CySEC, FSCA, FSC in Mauritius, and FSASVG. The broker provides access to trade more than 10,000 forex and CFDs on its four platforms: MT4, MT5, IRESS, and cTrader. It also offers tools like Autochartist, Trading Central, free VPS, and social trading. To learn more, you can read our review of FP Markets, where we cover features, pros, cons, and more

Is FP Markets Considered Safe?

Yes, FP Markets is considered safe. The broker is regulated by multiple top-tier regulatory authorities, including ASIC, CySEC,  FSA, FSCA, SVG. It offers negative balance protection and holds client funds in segregated bank accounts. Additionally, FP Markets provides an investor protection scheme for clients regulated underASIC, CySEC,  FSA, FSCA, SVG, making it a reliable and trustworthy broker.

Does FP Markets Offer Negative Balance Protection?

Yes, FP Markets offers negative balance protection. All FCA-regulated brokers must offer negative balance protection. Negative balance protection means that traders are protected from losing more money than they have in their trading accounts. If a trade results in losses that exceed the amount of funds in the account, negative balance protection ensures that the trader’s balance cannot go below zero. This prevents the trader from owing the broker any additional money.

Is FP Markets Regulated in the UK?

No, FP Markets is not regulated in the UK. However, the broker accepts clients under its global entity, (FP Markets LLC). FP Markets is regulated by other top-tier authorities, such as ASIC, CySEC, and FSCA, ensuring a high standard of compliance and investor protection.

Does FP Markets Offer an Investor Protection Scheme?

Yes, FP Markets offers an investor protection scheme for clients under the ASIC, CySEC,  FSA, FSCA, SVG jurisdictions. This protection covers eligible investors in case of broker insolvency or other issues. ASIC-regulated clients benefit from stringent Australian financial laws, while CySEC offers protection in line with European Union regulations, ensuring added security for traders within these regions.

Is FP Markets Regulated in the EU?

Yes, FP Markets is regulated in the EU through its license with CySEC (the Cyprus Securities and Exchange Commission). Since CySEC is an EU regulator, FP Markets follows the European Union’s strict standards, including client fund protection and transparency. It also complies with MiFID II regulations, ensuring a high level of oversight and security for European traders.