Are prop firms legal in the UK?
Yes, prop firms are legal in the UK. But most aren't regulated, so it's up to you to check who you're dealing with.
Why most aren't FCA-regulated
Prop firms sell an evaluation on a demo account and pay you a share of profit. They don't hold your money or execute trades for you as a broker does, so most don't need FCA authorisation. That means no Financial Ombudsman or FSCS protection if things go wrong.
How to check a firm
Search the FCA Warning List for the firm's name. Look at years in business, the number and recency of Trustpilot reviews and whether payout proof is public. Our best-rated list is a good starting point.
Warning signs
Rules that change after you pay, vague payout terms, pressure to buy through limited-time offers and unclear company details are all reasons to walk away.
Frequently asked questions
Is it legal for UK residents to use overseas prop firms?
Yes. There's nothing stopping UK residents buying challenges from firms based abroad.
What protection do I have?
Very little beyond the firm's own terms and your card provider's chargeback rules.