When it comes to the regulation of forex brokers and other financial entities, the Financial Conduct Authority (FCA) in the United Kingdom is widely regarded as one of the most trustworthy regulatory watchdogs in the world.
Because of the FCA’s stringent regulatory laws, protection of client funds, and companies’ insolvency compensation rules, etc., forex traders would rather open trading accounts with FCA-regulated forex brokers than open trading accounts with unregulated forex brokers.
After Brexit is finalized, clients from the EU will no longer be able to obtain a license from the Financial Conduct Authority (FCA). If foreign exchange companies want to do business with European Union customers, they need to obtain an EU passport.