Twenty-one Contracts for Differences (CFD) firms have closed since 2025, following a FCA crackdown.
The FCA was concerned the firms were misusing their authorised status to mislead consumers. Three other firms are currently cancelling their permissions.
The FCA has been challenging CFD firms that carry out little UK business but use their authorisation as a badge to make linked overseas companies look more trustworthy than they really 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 restricting their trading abilities, requiring independent reviews of their business and opening enforcement investigations in the 2 most serious cases.
Dominic Holland, director of sell-side supervision at the FCA, said:
'Consumers need to know exactly who they're dealing with and what protections they have. When firms blur the lines between their UK-regulated activities and overseas businesses, we will step in. These closures show we're prepared to take action to protect consumers.'
Consumers thinking about 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.
Consumers should also use our Firm Checker[1] to check they are dealing with a UK-authorised firm, and not an overseas firm with a very similar name to a UK firm. In the latter situation, UK regulatory protections are unlikely to apply.
Notes to editors
- CFDs are complex financial products used to speculate on the movement in prices on a wide range of assets. As a result, they carry a considerable risk of substantial losses.
- In 2019, the FCA restricted the sale[2] of CFDs to retail customers.
- In 2024, the FCA set out priorities for the CFD sector (PDF)[3].
- In 2025, the FCA warned investors in CFDs at risk of losing UK protections[4] through redirection offshore.