Among all the regulators in the world, FCA in Britain is famous for its strict supervision, and many brokers often prove their strength by having FCA licenses. On the contrary, these regulated brokers may be severely punished if they violate relevant regulations. Due to the different nature of the regulated platforms, FCA also distinguishes the regulatory licenses. According to the survey, FCA licenses are currently divided into four categories and seven types: EU licenses, AR licenses, payment licenses, and full licenses; Full license can be divided into investment consulting license, STP license and MM license, and AR license can also be divided into entry license and independent license.

? 1, EU license plate

According to the EU Financial Instruments Market Regulation, brokers regulated by EU countries can provide investment services throughout the European Economic Area. In other words, having a regulatory license from one of the EU countries is equivalent to having a business license from the EU Economic Zone. For example, brokers regulated by Cyprus can provide services to British customers without FCA's currency supervision license, which is the "EU license" in the FCA license type.

In short, the EU license is the weakest of the FCA licenses. Strictly speaking, these companies are not regulated by the Fair Competition Law. These dealer platforms display "EEA authorization" in the status bar of FCA regulatory information official website, which makes them ineligible to hold customers' funds, and their customers cannot enjoy the FSCS compensation plan.

2.AR license plate

AR license plate can be understood as the basic license plate of FCA. Brokers with this license are directly supervised by FCA, which is responsible for their qualification examination. They don't need to have offices or branches in Britain. In addition, the business scope of AR is not very transparent compared with the companies directly supervised by FCA.

There are two kinds of AR licenses, one is to introduce business directly to the main company (FCA direct supervision company), which is customarily called introducing AR licenses.

There is also an independent service, which we call independent AR authorization. Among them, independent AR license can hold customer funds, and entry AR license cannot hold customer funds; When the main company is supervised by FCA, both are guaranteed by FSCS.

Step 3 pay the license plate

The payment license is mainly for the "payment company". For example, some traders have both foreign exchange business and payment business, and official website may display "View all details". For example, Payments, a payment brand owned by Jiasheng Capital.

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4. Full license

Full license belongs to the highest qualification license of FCA, and it is the most favored FCA license for brokers and investors. Brokers who want to hold this license must be audited by FCA and have a physical office in the UK. This can be divided into three types: investment consulting license, STP license and MM license.

A.？ Investment consulting license (50k license)

The biggest feature of this kind of license is that the column of customer funds in the license shows that the company cannot hold customer funds, but it is guaranteed by FSCS.

B.？ STP license (125k license)

This license can hold the customer's funds, but it can't be traded with its own account. It can only match the matching entrusted broker, that is, the STP license, which is guaranteed by FSCS.

C.？ MM license (730k license)

Compared with STP license, MM license does not match the restrictions of the entrusted broker in the restrictions column, and it can trade in its own account. It can hold customers' funds and is guaranteed by FSCS, which is the highest level of full license.

Huicha Tea reminds everyone that when choosing a suitable trading platform, you must carefully check the authenticity of the platform before investing ~