FSA forex trading brokers are forex brokerage companies which are licensed and regulated by the UK Financial Services Authority or registered with the FSA registrar due to being regulated with a fellow EU member state.
The FSA has undertaken the responsibility to monitor brokerage companies since late 2001 and is the authority which grants licenses to forex trading firms to call themselves FSA registered brokers. In order for a forex trading brokerage to be granted a forex FSA broker license it is required to meet the standards set by the FSA itself in terms of the quality of bank handling customer funds, the treating of the funds themselves and the audit the company undergoes at the end of each financial year.
FSA brokers are obliged to maintain records of customer funds and present proof that customer funds are not in any cases used as company assets and additionally are required to present banking with FSA approved banking institutions or the equivalent of the local EU member regulator which will make sure that the overall quality of services will keep in order and in full compliance with Mifid regulations and will therefore add up to the chained reaction of the overall quality of an EU licensed forex broker.
Due to the global character of the forex market the reality is that as a retail trader you do have the freedom to trade in the forex markets with any FSA forex broker or non FSA broker which meets your requirements in terms of support, trading platform offerings or withdrawal and deposit options as due to the fact that you are trading in a multinational market via the internet you do have the ability to trade with a broker which might have physical presence on the other corner of the globe.
Nevertheless trustworthy online forex trading brokers are regulated by financial institutions which accredit and approve their forex trading services and therefore make sure that all compliance procedures are kept within with industry standards in terms of safety of funds, customer support, execution policy and dealing desk handlings.
As a forex trader from the UK dealing with FSA regulated or FSA registered forex trading brokers will offer you the safety of trading with a broker which complies with EU regulation and Mifid standards and moreover adopts an Investor compensation fund. As an EU regulated broker Trading Point is registered with the FSA UK under registration number 538324 as a passported EEA firm.