The Financial Conduct Authority (FCA) has announced the findings of a recent review of CFD providers across several firms, which raise serious concerns about pricing, overnight funding charges, and the fairness of valuation. The review may affect UK forex/CFD brokers.
What happened
The FCA published its findings of a multi-firm review into how CFD providers are delivering price and value to retail clients on 13 November 2025. In summary, the review found:
• Some firms are applying inconsistent or insufficiently disclosed overnight funding charges and spreads.
• Many mid to small-sized firms have not yet adapted to the FCA's "Consumer Duty" requirements, specifically in relation to their fair value assessments and handling vulnerable clients.
• The FCA is engaging with firms identified as needing improvement and may consider further monitoring/enforcement action for non-compliance.
Why it matters:
• For brokers providing forex/CFD products with FCA authorisation, it further demonstrates the FCA's consideration of pricing, fees, and client outcomes, now subject to further scrutiny.
• Brokers unable to place historical fee structures in line with Consumer Duty requirements will be subject to potential enforcement action, reputational damage, or withdrawal of FCA authorisation.
• For traders, this serves as yet another reminder to conduct comparisons of brokers' fee structures, transparency on overnight funding charges, and verification of the broker's regulatory compliance with the UK's retail protections.
WikiLix Insight:
• The Consumer Duty regime is no longer just a compliance checkbox but is now a key competitive differentiator for brokers in the UK. Brokers who can demonstrate not just a clear, fair value outcome for clients, but also continuously audit/monitor them, stand to be best placed.
• Brokers who continue to treat fee structures as murky, particularly on overnight funding, will risk being flagged and/or sanctioned. For brokers that are not based in the UK but allow access to UK clients via branches or EU/UK passports, this may also require a review of their access to UK clients.
• The content on WikiLix strengthens a rating criterion we are implementing: fee transparency - aligned with Consumer Duty. Brokers that score poorly should be flagged for higher risk on our watchlist.
