# UK forex licence and prop firms: FCA, company, cost.

> When a UK prop firm needs FCA authorisation, what the FCA has said, the £11,260 CFD fee, £100 company setup, tax and website rules. Checked Oct 2026.

- Source: https://pipvalley.com/jurisdictions/united-kingdom
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-12

**Short answer:** A UK prop firm selling simulated evaluations usually runs as a private limited company (£100 online at Companies House, usually registered within 24 hours) without FCA authorisation, because it does not deal in real investments for clients. A forex or CFD broker needs FCA authorisation; the FCA says most CFD firms pay the £11,260 Category 6 application fee. As of 12 Oct 2026 the FCA has no prop-specific rules, but it has warned about individual firms.

## At a glance

- **Regulator stance:** We found no FCA rules, guidance or consultation specific to prop firms as of 12 Oct 2026. Its warning list does name individual firms, e.g. "Funded Trader" (www.funded-trader.net), first published 12 Aug 2025. [1]
- **Earlier FCA warning:** FX News Group reported (Apr 2024) that the FCA warned in October 2023 that UK prop firm Bespoke Funding "may be providing or promoting financial services or products without our permission". [2]
- **Parliament:** E-petition 754761, "Require FCA regulation of proprietary trading firms operating in the UK", closed on 26 Jul 2026 with 24 signatures and no government response. [3]
- **What triggers a licence:** Dealing in CFDs or spot forex with real clients needs FCA authorisation. Application fees run £280–£225,170; "Most CFD firms fall into Category 6" at £11,260, as do most principal trading firms. [4]
- **Influencers and affiliates:** FCA FG24/1 (26 Mar 2024): unauthorised people, including influencers, who promote regulated products without approval "may be committing a criminal offence". [5]
- **Company formation:** Private limited company: £100 online (£124 by post), "usually registered within 24 hours"; postal applications take 8–10 days. [7][8]
- **Identity checks:** Identity verification for directors and people with significant control became a legal requirement on 18 Nov 2025, starting a 12-month transition. [9]
- **Annual filing:** Confirmation statement: £50 a year online at Companies House. [8]
- **Corporation tax:** 19% on profits up to £50,000, 25% above £250,000, with marginal relief between (GOV.UK). [10]
- **Cookies:** ICO: consent for non-essential cookies must be a clear positive action; the Data (Use and Access) Act 2025 adds narrow exceptions for statistics and site appearance, with a simple, free way to object. [12][13]
- **Gambling boundary:** Gambling Act 2005 s.10: a bet is outside gambling law only when it is an FCA-regulated activity under FSMA s.22, which is why spread bets sit with the FCA. [6]
- **Consumer law:** Since 6 Apr 2025 the DMCC Act bans fake and concealed-incentive reviews and requires mandatory fees in the headline price (Which?). [15]

The UK is home to many founders and traders, and "prop firm uk" plus "uk forex license" are among the most searched place terms in our data. A prop firm sells evaluations on simulated accounts and pays rewards from simulated results; a forex or CFD broker deals in real contracts with clients. The FCA authorises the second. Whether your product, payouts and marketing stay on the right side of that line is the core legal question, and it belongs to a UK-qualified lawyer.

For the legal picture in more depth, read [are prop firms legal in the UK](https://pipvalley.com/guides/are-prop-firms-legal-in-the-uk). This page is the practical set-up view: licence triggers, company, cost, tax, banking, website and timeline.

> This page explains how things generally work and what UK authorities have published. It isn't legal, tax or financial advice. Confirm every point with a UK-qualified lawyer and an accountant before you act.

## Does a prop firm need an FCA licence?

Not for a purely simulated model, on the current public record. We found no FCA rules, guidance or consultation aimed at prop firms or funded-trader challenges as of 12 October 2026, after searching fca.org.uk for "prop trading", "funded trader" and "proprietary trading firms". That absence is not permission, and the FCA does act against individual firms through its warning list.

Two examples are on record. FX News Group reported in April 2024 that the FCA had warned the previous October that UK prop firm Bespoke Funding "may be providing or promoting financial services or products without our permission". And the FCA's warning list carries an entry for a firm called Funded Trader (www.funded-trader.net), first published on 12 August 2025, with the same wording and the advice to "avoid dealing with this firm and beware of scams". Neither is a ruling on the prop model; both show the FCA watches who promotes what to UK consumers.

Parliament has heard the question too. E-petition 754761 asked the government to "require FCA regulation of proprietary trading firms operating in the UK"; it closed on 26 July 2026 with 24 signatures, far short of the 10,000 needed for a response. Track the bigger picture in [are prop firms regulated](https://pipvalley.com/guides/are-prop-firms-regulated).

## What would trigger FCA authorisation?

The trigger is real dealing, not the word "trader". If your firm deals in CFDs or spot forex with real clients, holds client money, or arranges real trades for them, you are in FCA territory and need authorisation before you start. Application fees run from £280 (Category 1) to £225,170 (Category 10); the FCA says most CFD firms and most principal trading firms fall into Category 6, at £11,260. Capital, systems, staff and a compliance function cost far more than the fee.

Watch the adjacent rules even without authorisation. Under FCA FG24/1 (26 March 2024), influencers and affiliates who promote regulated products without approval "may be committing a criminal offence". If your affiliates also push brokers, or your firm partners with a broker, have a lawyer review the copy. And because section 10 of the Gambling Act 2005 takes a bet outside gambling law only when it is an FCA-regulated activity, a structure that looks like betting on outcomes needs careful legal advice; we found no Gambling Commission statement on prop firms.

**UK: licence triggers and published figures (FCA, legislation.gov.uk; checked 12 Oct 2026)**

| What you do | UK position | Published figure |
|---|---|---|
| Sell simulated evaluations, pay rewards from simulated results | No prop-specific FCA regime found | Company law, consumer, data and ad rules apply |
| Deal in CFDs or spot forex with real clients | FCA authorisation needed | Category 6 application fee £11,260 (most CFD firms) |
| Pay creators or affiliates to promote regulated products | Financial promotion rules (FG24/1) | Unapproved promotion may be a criminal offence |
| Accept bets on outcomes | Gambling Act unless FCA-regulated (s.10) | Gambling Commission licence questions |

## How do you set up a UK company for a prop firm?

UK company formation is cheap and fast; the cost is in advice, accounting and banking. You register a private limited company with Companies House online for £100 (£124 by post), and GOV.UK says it is "usually registered within 24 hours". Every director and person with significant control must verify their identity: that became a legal requirement on 18 November 2025, with a 12-month transition. A confirmation statement costs £50 a year online. See our general guide to [setting up a prop firm company](https://pipvalley.com/guides/how-to-start-a-prop-firm-company).

**UK company: official fees and rates (GOV.UK, Companies House, FCA; checked 12 Oct 2026)**

| Item | Figure |
|---|---|
| Incorporation | £100 online, £124 by post |
| Time to register | Usually within 24 hours online; 8–10 days by post |
| Confirmation statement | £50 a year online |
| Director and PSC identity verification | Legal requirement from 18 Nov 2025 (12-month transition) |
| Corporation tax | 19% to £50,000 profit; 25% above £250,000; marginal relief between |
| FCA application, Category 6 (only if you deal with real clients) | £11,260 |

## What about banking, payments and VAT?

UK banks and processors look hard at trading-adjacent businesses. In an October 2025 TradeInformer interview, a payments orchestrator listed the UK among "major markets" where "there is a lot of external scrutiny" of prop firms. Treat that as one vendor's view, and plan an orchestration layer, a high-risk card acquirer and a crypto route alongside a UK business account. Compare rails in [forex payment gateways for prop firms](https://pipvalley.com/guides/forex-payment-gateway-for-prop-firms) and payout options in [prop firm payout providers](https://pipvalley.com/guides/prop-firm-payout-providers).

VAT is for your accountant. HMRC's place-of-supply notice says that for business-to-consumer digital services "your place of supply will be where the consumer is located", and whether evaluation fees count as electronically supplied services, and where your traders are, decides what you owe and where.

## What must a UK prop firm's website show?

A UK website follows UK GDPR and PECR. The ICO says consent for non-essential cookies must be a clear positive action, and that you cannot set them on the homepage before consent. The Data (Use and Access) Act 2025 adds narrow exceptions for analytics used to improve the service and for site appearance, provided users get clear information and "a simple means of objecting, free of charge". Consumer law tightened too: since 6 April 2025 the DMCC Act bans fake and concealed-incentive reviews and requires mandatory charges in the headline price, which matters for [Trustpilot review practices](https://pipvalley.com/guides/prop-firm-trustpilot-reviews) and challenge pricing tables.

- Entity disclosure: company name, number and registered office, under the Company, LLP and Business (Names and Trading Disclosures) Regulations 2015 (regulation 25 covers websites).
- A simulated-trading notice and a statement that the firm is not FCA-authorised (unless it is); never imply FCA status or use FCA logos.
- A restricted-countries list enforced at checkout and KYC.
- A PECR-compliant cookie banner and a UK GDPR privacy notice.
- Prices that include every mandatory fee, and review practices that meet the DMCC Act.
- Affiliate and creator copy that stays clear of regulated-product promotion (FG24/1).

> PipValley builds prop firm websites with entity disclosures, restricted-country logic, simulated-trading notices and PECR-compliant cookie banners, on any platform. Start with [the disclaimer generator](https://pipvalley.com/tools/prop-firm-disclaimer-generator).

## When should you not base a prop firm in the UK?

- If your model needs real execution or holding client money from day one: FCA authorisation is a long, expensive project; compare [the forex broker licence guide](https://pipvalley.com/guides/forex-broker-license).
- If you rely on aggressive creator marketing: UK financial promotion and consumer rules are among the strictest your traders' home markets will apply.
- If you cannot get UK banking: some founders keep a UK operating company and sell through an entity elsewhere, such as [Cyprus](https://pipvalley.com/jurisdictions/cyprus) or [Dubai](https://pipvalley.com/jurisdictions/dubai); tax then follows where the firm is managed, so take advice.
- If 25% corporation tax on profits above £250,000 breaks the plan: model it with [the profit calculator](https://pipvalley.com/tools/prop-firm-profit-calculator) first.

## Launch steps

1. **Get a UK legal opinion on the product:** Ask a UK-qualified lawyer whether your evaluation, payout and any broker relationship stay outside FCA-regulated activities and gambling law.
2. **Register the company:** Incorporate online at Companies House (£100, usually within 24 hours) with a proper UK registered office and email address.
3. **Verify identities:** Have every director and person with significant control verify their identity with Companies House, required since 18 November 2025.
4. **Set up tax and accounts:** Register for corporation tax, ask an accountant about VAT on evaluation fees, and diarise the £50 confirmation statement.
5. **Open banking and payment routes:** Apply to a UK business account, a high-risk card route and a crypto processor in parallel; see payments for a new prop firm.
6. **Choose platform, CRM and KYC:** Pick a platform, back office and identity checks; see KYC for prop firms.
7. **Publish a compliant website:** Launch with entity disclosure, simulated notice, PECR cookies, DMCC-compliant pricing and reviewed affiliate copy.

## Providers worth a look

- **Sumsub**: KYC, AML screening and fraud prevention; legal entity Sum and Substance Ltd is UK-registered (company 09688671).
- **Revolut Business / Revolut Pay**: Business account and payment gateway with Revolut Pay, named as a prop firm payment partner in 2026.
- **Wise Business**: Multi-currency business account used by some prop firms as a payout rail (Wise Payments Limited).
- **Paytiko**: Payment orchestration layer for pay-ins, payouts and routing across many PSPs.
- **NOWPayments**: Crypto payment gateway with mass payouts and a published prop-firm processor guide.
- **Deel**: Global contractor payroll platform historically used by many prop firms for trader payouts.

## Your website

PipValley builds the marketing website for any platform or route: pricing table, rules, payouts, FAQ, legal pages and the checkout hand-off. Plan your launch: https://pipvalley.com/contact?src=launch-jurisdiction&place=united-kingdom

## Questions

### Do you need an FCA licence to run a prop firm in the UK?

Not for a purely simulated model, on the public record: we found no FCA rules or guidance aimed at prop firms as of 12 October 2026. Dealing in CFDs or forex with real clients does need FCA authorisation, and the FCA has warned about individual prop firms. Have a UK-qualified lawyer review your product, payouts and marketing.

### How much does a UK forex licence cost?

FCA application fees run from £280 to £225,170 by category, and the FCA says most CFD firms fall into Category 6, at £11,260 (checked 12 October 2026). Regulatory capital, systems, staff and compliance cost far more than the fee, which is why most evaluation firms avoid real dealing.

### How much does it cost to set up a UK limited company?

Registering a UK private limited company costs £100 online with Companies House (£124 by post), and it is usually registered within 24 hours. The confirmation statement is £50 a year online. Directors and people with significant control must also verify their identity, a legal requirement since 18 November 2025.

### Are UK prop firms regulated by the FCA?

Most are not, because they sell simulated evaluations rather than dealing in investments. The FCA has issued warning-list entries about individual firms, including one first published on 12 August 2025, and a 2026 petition asking for FCA regulation of prop firms gathered 24 signatures. Read our guide to whether prop firms are legal in the UK.

### What is the UK corporation tax rate for a prop firm?

UK corporation tax is 19% on profits up to £50,000 and 25% on profits above £250,000, with marginal relief between, according to GOV.UK. VAT on evaluation fees depends on how the service is classed and where your traders are, so ask a UK accountant before you set prices.

### Can UK influencers promote my prop firm?

They can promote an unregulated evaluation product, but FCA guidance FG24/1 says anyone promoting regulated products without approval may be committing a criminal offence. Keep creator copy about your challenge, not brokers or investments, and make sure reviews and pricing meet the DMCC Act rules in force since April 2025.

## Sources

1. [FCA warning list: Funded Trader (first published 12 Aug 2025)](https://www.fca.org.uk/news/warnings/funded-trader) (checked 2026-10-12)
2. [FX News Group: Prop firm Bespoke Funding delisted from Propfirmmatch following payout delay reports (8 Apr 2024)](https://fxnewsgroup.com/forex-news/retail-forex/prop-firm-bespoke-funding-delisted-from-propfirmmatch-following-payout-delay-reports) (checked 2026-10-12)
3. [UK Parliament petition 754761: Require FCA regulation of proprietary trading firms operating in the UK](https://petition.parliament.uk/petitions/754761) (checked 2026-10-12)
4. [FCA: Application fees](https://www.fca.org.uk/firms/authorisation/apply/fees) (checked 2026-10-12)
5. [FCA: FG24/1 Finalised guidance on financial promotions on social media (26 Mar 2024)](https://www.fca.org.uk/publications/finalised-guidance/fg24-1-finalised-guidance-financial-promotions-social-media) (checked 2026-10-12)
6. [legislation.gov.uk: Gambling Act 2005, section 10](https://www.legislation.gov.uk/ukpga/2005/19/section/10) (checked 2026-10-12)
7. [GOV.UK: Register your company](https://www.gov.uk/limited-company-formation/register-your-company) (checked 2026-10-12)
8. [Companies House: Fees](https://www.gov.uk/government/publications/companies-house-fees/companies-house-fees) (checked 2026-10-12)
9. [Companies House: Verify your identity](https://www.gov.uk/guidance/verify-your-identity-for-companies-house) (checked 2026-10-12)
10. [GOV.UK: Corporation Tax rates and reliefs](https://www.gov.uk/corporation-tax-rates) (checked 2026-10-12)
11. [HMRC: VAT place of supply of services (Notice 741A)](https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a) (checked 2026-10-12)
12. [ICO: Cookies and similar technologies](https://ico.org.uk/for-organisations/direct-marketing-and-privacy-and-electronic-communications/guide-to-pecr/cookies-and-similar-technologies/) (checked 2026-10-12)
13. [legislation.gov.uk: Data (Use and Access) Act 2025, Schedule 12](https://www.legislation.gov.uk/ukpga/2025/18/schedule/12) (checked 2026-10-12)
14. [legislation.gov.uk: Company, LLP and Business (Names and Trading Disclosures) Regulations 2015](https://www.legislation.gov.uk/uksi/2015/17/contents) (checked 2026-10-12)
15. [Which?: Fake reviews and sneaky fees banned under new law](https://www.which.co.uk/news/article/fake-reviews-and-sneaky-fees-banned-under-new-law-campaigned-for-by-which-aLzVp4g0S76D) (checked 2026-10-12)
16. [TradeInformer: UAE banks blocking prop firm activity, says Paytiko (28 Oct 2025)](https://tradeinformer.com/interviews/exclusive-uae-banks-blocking-prop-firm-activity-says-paytiko) (checked 2026-10-12)

_Not legal, tax or financial advice: rules differ by place and change often; speak to a qualified lawyer and tax adviser. Evaluation accounts are simulated; nothing here promises revenue, pass rates or payouts._