UK watchdog closes 21 CFD firms in crackdown on overseas links

Britain's financial regulator has closed 21 firms that offered contracts-for-differences since 2025, part of a continuing effort to stop misleading sales of the complex products.

The Financial Conduct Authority said on Friday that three additional firms were in the process of cancelling their regulatory permissions to trade, while two others were under investigation. The regulator did not identify any of the companies involved.

CFDs allow customers to bet on the price movements of a wide range of assets without owning them. The FCA has been tightening its oversight of such providers since it restricted their sale to retail customers in 2019.

A particular concern, the regulator said, is firms that conduct little business in Britain but use their authorisation to lend credibility to affiliated overseas operations. This, according to the FCA, can leave consumers believing they are dealing directly with a UK-regulated firm and will receive UK protections.

"Consumers need to know exactly who they're dealing with and what protections they have," said Dominic Holland, the FCA's director of sell-side supervision.

"When firms blur the lines between their UK-regulated activities and overseas businesses, we will step in," he added.

Customers who trade CFDs through FCA-authorised firms can take complaints to the Financial Ombudsman Service, may receive compensation if a firm fails, and benefit from limits on leverage along with other safeguards.