In connection with the prosperity of automation of all trading exchange processes, copy trading FCA has become one of the most common queries in search engines. What are we talking about here? The fact is that an increasing number of investors today prefer to trade using special signals. They show the opportunity to enter the market and help you not to miss the chance to make money on a profitable trade.
In order to minimize risks during automation (even here they are present, albeit in much smaller quantities), most financial experts recommend paying attention to precisely those projects that are regulated by the FCA. What kind of organization it is and why such forex signals are considered the most reliable, I will tell you in this article.
What is FCA regulator
When in 2007-2008 the world economy was undermined by a large-scale crisis, the British authorities decided to carry out a reform that affected the system of supervision of the financial market. If earlier the FSA (Financial Services Authority) was responsible for the control of banking, investment and insurance activities in the country, then in 2013 the body was renamed FCA, and this responsibility was transferred to the Bank of England (Prudential Control Authority).
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However, this is not the last resort in the United Kingdom when it comes to monitoring the activities of brokerage firms and the legality of their transactions. FCA is also controlled by Parliament and the Ministry of Finance. The organization itself is non-governmental and is rightfully considered one of the strictest in Europe.
Goals and objectives of the FCA regulator
If earlier most people in the United Kingdom found it problematic to become part of the trading industry because of the lawlessness reigning in it among the relationships between traders and brokers, today everything has become much easier and safer. From now on, everything related to Forex is strictly regulated by the FCA. This investment and brokerage oversight body is recognized as one of the best funded parts of the UK financial system. Its annual budget is around £ 600 million.
Crisis 2007-2008 seriously undermined people's confidence in individual components of the financial system of the state. FCA managed to restore the strictest order again. In a relatively short period of time, this supervisory body has acquired a powerful authority and began to exert real influence on the country's economy.
The list of main tasks of the FCA includes the following positions:
- protection of all participants in financial and economic relations from various kinds of problems associated with the investment of funds and the implementation of transactions;
- maintaining the economic growth of the state and a high level of investor confidence;
- improving the state of the financial system and the UK market;
- control of all participants in economic activity and detection of insider transactions.
FCA sets special requirements for brokerage companies:
- regular provision of detailed reports that demonstrate any change in the financial condition of the company;
- annual independent audits;
- maintaining a high level of liquidity of the broker's equity capital.
All this is done so that the clients of such firms feel in maximum safety and are not afraid to invest in the country's market. Regulation also contributes to the development and stabilization of the domestic economy of the state. That is why FCA regulated forex signals are the most reliable and reliable. Here is a list of the most popular projects, whose clients are actively taking advantage of all the benefits of trading automation:
Impact of FCA on UK welfare
Prior to the emergence of this regulator, the financial industry of the state was in a very deplorable state. A huge number of irrelevant restrictions had the strongest negative impact. Only the well-coordinated work of FCA made it possible to establish the development of economic and industrial activities in the country.
Investor confidence has now not only recovered, but has grown significantly compared to the previous difficult period in the United Kingdom. Companies have moved to more ethical marketing policies. The citizens of the country fully accepted and supported the modern opinion of the state leadership, aimed at the competent regulation of firms. According to it, only those companies that are under the control of FCA can participate in market activities.
This supervisor has managed to significantly raise the bar on the standards for the provision of services to clients of brokerage firms. This is why, when it comes to the foreign exchange market, the FCA is one of the most important UK regulators. Due to the introduction of new rules, brokers and traders now trust each other much more.
Benefits of trading FCA-regulated signals
To begin with, a few words about what it is all about. When you work with the market manually, you do everything entirely on your own, relying only on previously acquired knowledge and practical experience (if any). In other words, you will have to be armed with all the subtleties of fundamental and technical analysis in order to see the formation of a strong trend or its reversal for a quick and correct reaction.
What, in this case, should be done by novice traders who have not yet managed to comprehend "professional Zen"? Here they will be helped by forex signals regulated by the FCA. The system independently studies the market, analyzes input data and gives recommendations on deals. Whether to follow them or not - the decision remains only with the trader himself. But, as practice shows, the use of the automatic signaling service in its work brings tangible results:
- increasing the efficiency of trade;
- faster build-up of the deposit;
- minimization of trading risks;
- the ability to work without a drawdown, even without practical trading experience;
- reliable and strict regulation by the FCA;
- a successful start even with minimal amounts of money;
- an increase in the number of daily transactions;
- reducing the psycho-emotional load on the trader;
- the opportunity to gain experience, while simultaneously making a profit from the market.
How the FCA regulates the activities of forex organizations
All precautions and controls are aimed solely at improving the safety of the clients of such firms. There are two provisions that brokers must obey in order to have access to the local market and provide a certain set of services to traders:
- All licensed organizations are required to report on the current level of their assets (these resources will then be used as support for partnerships and insurance).
- Mandatory authorization in the FCA control system. Only a firm approved by this organization gets access to direct activities as a broker. If an illegal financial transaction is committed that violated the client's rights, the existing certificate will help to quickly identify the culprit.
These points help protect traders and investors from one-day brokerage companies who want to cash in on their users' money. Thus, if the forex signals come from a system regulated by the FCA, you do not have to worry about their reliability. Such services are under the control of one of the most stringent supervisory authorities.