A licensed and regulated liquidity provider is essential for successful trading. This would be the foremost considerations you will encounter in the forex industry as forex is one of the largest and most liquid markets in the world.   

For a broker, the forex industry is challenging yet exciting at the same time as legal and regulatory burdens typically fall upon the shoulders of the brokerage. 

However, these difficulties are minuscule compared to the return on investment. With the support of a licensed and regulated liquidity provider, the forex market will offer you countless profitable trading opportunities. 

 

What is FCA?  

The Financial Conduct Authority (FCA) is one of the competent regulatory body that responsible for regulating financial services.

Headquartered in the United Kingdom (UK), FCA continues to update the information for regulated firms on their website and expect to continue adapting their guidance for various circumstances. 

Keeping the FCA website updated, we take Doo Clearing as an example, enables brokerages and other institutional investors to know the authorized firms remain constantly regulated. 

  • Firstly, enter the official website of FCA: www.fca.org.uk to check a truly licensed, regulated, and authorized liquidity providers. This is the first step to guide you to know the licensing and regulation. Look for Financial Services Register column at the homepage and the style has not changed much with the previous interface (shown below) and click it. 

  • FCA has updated the search column for a regulatory query. It is different from the old version and this time the column is more user-friendly. For example, users can just enter the reference number and choose either want to check regulated firms or individuals. Additionally. users can narrow their search results by adding a location. Other than that, the video guide leads users to know about how to use their “Register”.  

 

 

  • After completion, the full name and regulation number of the corresponding liquidity provider will be displayed (as shown below). If the search result is empty, it means that the firm is not regulated by the FCA.  

 

 

  • When you click on the liquidity provider name, you will directly enter the detailed page of the liquidity provider. FCA has made a detailed list of restrictions (or suspensions) that may apply to the company you have searched for. 

  • * The restriction could be the type of client he can accept. The location of the clients they cannot accept, the holding of funds, etc.  

 

  • The biggest highlight of the new version of the regulatory query interface is to simplify the old version of obscure and difficult language and numerous categories into six easy-understand query functions (as shown below).  

 

 

  1. (1) Overview of the liquidity provider (Who is this firm?). *See the image below for Doo Clearing regulation. 

 

 

  1. (2) How to protect the clients of the liquidity provider? (How are customers protected?). *See the image below for Doo Clearing regulation. 

 

 

  1. (3) The business that can be done by the liquidity provider in UK (What can this firm do in the UK?). *See the image below for Doo Clearing regulation. 

 

 

  1. (4) Responsible persons of the liquidity provider (Who is involved with activities at this firm?). *See the image below for Doo Clearing regulation. 

 

  1. (5) What business can the liquidity provider carry out within the EU? (What can this firm do in the European Economic Area?). *See the image below for Doo Clearing regulation. 

 

 

     (6) Who restricts this liquidity provider? (Who is this firm connected to?). *See the image below for Doo Clearing regulation. 

 

 

Through the above-detailed inquiry process introduction, we believe that everyone already knows how to check the information of the liquidity provider of their choice.  

At Doo Clearing Limited we have encountered and assisted up-and-coming brokers that require the A-to-Z of resources and explanations as well as mid-range and price-conscious brokerages that seek the best deals, also large and multi-national brokerages who require RPF, through their journey to select a liquidity partner.   

To get started, contact Doo Clearing’s Specialist team today for an insightful preview of how we can bring your brokerage to the next level.   

 

London Office   

Email: [email protected]   

Website: www.dooclearing.co.uk   

 

Hong Kong Office   

Email: [email protected]    

Website: www.dooclearing.com