Twenty-one contracts for difference (CFD) firms have closed since 2025, following a crackdown by the UK Financial Conduct Authority (FCA).

The FCA was concerned the firms were misusing their authorised status to mislead consumers. Three other firms are currently cancelling their permissions.

The regulator 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 two most serious cases.

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.