FCA Crackdown Leads to 24 CFD Firms Closing

The UK Financial Conduct Authority (FCA) has intensified its scrutiny of contracts for difference (CFD) firms, resulting in 21 such firms closing since 2025, with three more currently cancelling their permissions. The FCA was concerned that these firms were misusing their authorised status to mislead consumers.

The regulator has been challenging CFD firms that conduct little UK business but use their authorisation as a badge to make linked overseas companies appear more trustworthy than they are. This creates the misleading impression that consumers are dealing directly with a UK-regulated firm and benefit from UK protections when they do not.

Firms have faced a range of actions, including restrictions on their trading abilities, requirements for independent reviews of their business, and enforcement investigations in the two most serious cases.

Consumers considering trading CFDs should remember that these products are complex and often involve high levels of leverage, meaning large losses can build up very quickly. Before opening an account, consumers should check carefully that they are dealing with a UK authorised firm if they want the protections that come with FCA regulation.