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21 CFD Firms Gone: FCA's Strict Enforcement
25 Sep
Summary
- Twenty-one CFD firms have ceased operations since 2025.
- Two firms face investigation for misleading customers.
- FCA aims to clarify UK protections for CFD investors.
Since 2025, the UK's Financial Conduct Authority (FCA) has enforced stricter regulations, leading to the closure of 21 firms offering contracts-for-differences (CFDs). Three other firms have voluntarily cancelled their regulatory permissions to trade.
Furthermore, two companies are currently under investigation by the FCA due to allegations of misleading customers. These actions follow the regulator's increased scrutiny of CFD providers, particularly since restrictions were placed on their sale to retail customers in 2019.
The FCA has highlighted that some firms use their UK authorization to lend credibility to overseas businesses. This practice can mislead consumers into believing they are directly engaging with a UK-regulated entity and are therefore afforded UK protections.
Dominic Holland, the FCA's director of sell-side supervision, stated that the regulator will intervene when firms obscure the distinction between their UK-regulated activities and their international operations. Retail customers trading CFDs through FCA-authorized firms benefit from protections such as access to the Financial Ombudsman Service and limits on leverage.
