Gain Capital, the company behind the well-known retail FX brands Forex.com and City Index, has announced plans to relinquish its UK licence regulated by the Financial Conduct Authority (FCA). This marks a notable shift in regulatory footprint for one of the largest global forex brokers.
What happened
Gain Capital (owned by StoneX Group) will begin the process of surrendering its FCA authorisation for Forex.com UK. This move is linked to its transfer of a Dubai operating licence, obtained under the UAE Securities and Commodities Authority (SCA). The formal hand-back of the UK licence will occur “in the fullness of time,” following regulatory transitions.
Why it matters
• Regulatory strategy shift: Exiting UK regulation signifies a strategic reallocation of resources toward markets like Dubai, where regulatory frameworks for CFDs are increasingly attractive.
• Local client implications: UK-based retail clients may see changes in protections and service offerings as the firm winds down directly authorised UK operations.
• Industry trend: This aligns with a broader movement among brokers reassessing European regulatory costs and opportunities in Middle Eastern jurisdictions.
WikiLix Insight
This development highlights how large forex brokers are recalibrating their presence in key financial hubs. FCA regulation has historically been a mark of trust and compliance; relinquishing it may reduce operational burdens but also alters the regulatory assurances available to UK traders. The move underscores Dubai’s rising prominence as an alternate regulatory base for global online brokers.
