The financial sector in general and the stock market, in particular, offer excellent ways to build and grow your wealth. The UK stock exchange is one of the strongest in the world because it is built on appropriate checks and balances. These checks ensure that investors are protected from fraud and financial companies follow due diligence practices.
However, this doesn’t mean there aren’t shady businesses trying to run scams in the market. A number of financial frauds came to the forefront in the last ten years. To counter financial frauds, the UK government implemented a regulatory framework for financial businesses.
The FCA is an independent regulatory body in the UK that outlines a framework for financial businesses. Companies that follow its operational guidelines are allowed to market financial products in the market. Companies that do not comply with FCA guidelines can be banned.
An individual or business entity that invests in an FCA-approved business can receive compensation if the invested business becomes insolvent. The authority guarantees that you will get compensation, up to a limit, by lodging a claim with the authority.
Over the years, stock brokers have improved convenience and freedom for individual investors by introducing online stock broker platforms in the market. These stock brokers software are relatively easy to use, quick and efficient. They allow investors to make their own decisions and give them complete autonomy for making trades in the market.
The improved decision making comes with risks. For example, some companies launched their own stock broker platforms that weren’t approved by the FCA. It was risky to trade in the market on these platforms because there was no guarantee of compensation from any authority if the business went bankrupt.
Investors have lost millions in the markets on unregulated platforms and there is no way to get compensated for these losses. That is why financial experts advise using FCA-authorized stock brokers to ensure you can get compensated in case of business bankruptcy or scams.
There are dozens of regulated stock brokers available on the market that you can use for trading. Each trading platform offers unique advantages such as quicker speed, more listings, detailed analytical tools, and mobile usage.
In order to find the right stock broker for your needs, you will need to take account of your trading habits and requirements.
For example, some stock brokers are good when you are trading on a casual, part-time basis and cannot devote hours researching stocks each day. Another stock broker might be more useful when you are investing more than £100,000 because it offers better discounts for big investors.
To find the best trading software, you need to compare the features of each individual platform and match them against your requirements. This can be difficult since there are so many apps out in the market.
This is where we can help. Our financial advisors possess a thorough knowledge of the stock trading platforms in the market. They can talk to you to find out what you need and then make the perfect recommendation for trading on the market.
Risk Warning - All investments carry risk and prices may change quickly. The value of your portfolio can go down as well as up. Past performance will not necessarily be repeated and is no guarantee of future success. You should carefully consider in light of your financial resources whether investing in stocks and shares is suitable for you. This notice cannot disclose all of the risks and other significant aspects of investing in equities, derivatives, bonds or any other investment product. A full list of risks will be provided for the products which you are interested in. For more information please contact one of our team.