Why are so many brokers withdrawing from the UK markets | Forex Factory

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Why are so many brokers withdrawing from the UK markets

  • #1
  • First Post: Nov 26, 2021 2:59am Nov 26, 2021 2:59am
This From Naga!
Your NAGA Trading account/s

Following discussion with the UK Financial Conduct Authority (the "FCA"), NAGA Group AG has decided to withdraw from the UK market and to cease providing services to UK-resident clients.

I dont like to have all my eggs in one basket, so have many broker accounts. This the 7th Broker to pull out of UK.
WHY is this happening?

is it because of Brexit?
Is it because UK is up to something?
  • #2
  • Nov 27, 2021 8:24am Nov 27, 2021 8:24am
will appreciate if someone out there can throw some light to this.
why are brokers stopping dealing with UK?
  • #3
  • Nov 28, 2021 1:15am Nov 28, 2021 1:15am
Quoting fxguru2010
will appreciate if someone out there can throw some light to this. why are brokers stopping dealing with UK?
If you are not a instituitional or professional trader, you are a hinderence to brokers.

(1) the requirement to publish order flow and market makers

(2) the requirement to publish statistics of retail traders

(3) the low deposit amount

(4) the leverage caps.

In essence all of these adds up to lesser volume by retail clients but so much more work in reference to satisfying FCA rules.
  • #4
  • Nov 30, 2021 9:17am Nov 30, 2021 9:17am
Quoting Bicarus
{quote} If you are not a instituitional or professional trader, you are a hinderence to brokers. (1) the requirement to publish order flow and market makers (2) the requirement to publish statistics of retail traders (3) the low deposit amount (4) the leverage caps. In essence all of these adds up to lesser volume by retail clients but so much more work in reference to satisfying FCA rules.
Thanks
  • #5
  • Nov 30, 2021 1:08pm Nov 30, 2021 1:08pm
So does this mean the UK regulations ask too much of brokers? Would you look towards an off shore broker instead?
  • #6
  • Nov 30, 2021 9:35pm Nov 30, 2021 9:35pm
Quoting dean198
So does this mean the UK regulations ask too much of brokers? Would you look towards an off shore broker instead?
Imo this entire debacle started years back when retail traders became sore losers when in actual fact they do not know what they are doing. SNB crisis cemented that sentiment and hence FCA's involvement.

Being v honest, fx is a capital intensive business. Forget about $100 min deposits. I'd say a safe min amount is $30k. @ $30k , 30x leverage is more than sufficient.
  • #7
  • Last Post: Dec 22, 2021 1:36pm Dec 22, 2021 1:36pm
Quoting fxguru2010
This From Naga! Your NAGA Trading account/s Following discussion with the UK Financial Conduct Authority (the "FCA"), NAGA Group AG has decided to withdraw from the UK market and to cease providing services to UK-resident clients. I dont like to have all my eggs in one basket, so have many broker accounts. This the 7th Broker to pull out of UK. WHY is this happening? is it because of Brexit? Is it because UK is up to something?
That is because FCA is serious about regulating brokers, unlike other European regulators who don't even answer your emails.
Risk Management is of utmost importance!
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