In short
- UK firms lost EU passporting rights on 1 January 2021.
- Most broker groups serve EU clients through an EU-licensed subsidiary (often in Cyprus, Germany, Ireland or Malta).
- Always check which entity will open your account and where it's regulated.
What changed
Before Brexit, a broker authorised by the UK's FCA could passport its services across the EU. When the transition period ended on 31 December 2020, that right disappeared. To keep serving European clients, broker groups had to set up or expand subsidiaries authorised in an EU member state.
How broker groups serve EU clients now
A typical international broker group might run:
- a UK entity (FCA) for UK residents,
- an EU entity (e.g. CySEC, BaFin, Central Bank of Ireland) for EEA residents, and
- one or more offshore entities for clients elsewhere.
Where you live decides which entity you're offered. Not every group has an EU entity — in that case, the group may not be able to serve EU residents at all, or may only do so in limited circumstances.
Reverse solicitation
EU rules allow a client to use a non-EU firm if the client initiated the relationship entirely on their own. Regulators interpret this narrowly: if a firm advertises, targets or contacts EU residents, it generally can't rely on reverse solicitation.
Why it matters for you
| You're onboarded by… | Your main protections |
|---|---|
| An EU-authorised entity | ESMA retail rules, national compensation scheme (e.g. ICF up to €20,000), national ombudsman |
| A UK entity (FCA) | FCA rules apply to the firm, but serving EU residents is restricted after Brexit |
| An offshore entity | Local rules only — often higher leverage, fewer protections |
Checklist before opening an account
- Read the client agreement and note the legal entity's name and regulator.
- Check that entity on its regulator's register.
- Confirm that leverage, negative balance protection and risk warnings follow ESMA rules if you're a retail client.
- If you're offered 1:500 leverage or bonuses as an EU resident, you're almost certainly not dealing with an EU entity.
Common scenarios
| Situation | What usually happens |
|---|---|
| You opened a UK account before 2021, then moved to the EU | Your broker may migrate you to an EU entity or ask you to close the account. Check its terms. |
| You live in the EU and sign up with an international brand | You're offered the group's EU entity, if it has one. |
| The brand has no EU entity | It may decline EU residents, or offer an offshore entity without EU protections. |
| You're a UK citizen living in the EU | Residence, not nationality, usually decides which entity can serve you. |
Practical tips for EU residents
- Choose a broker with a euro-denominated account to avoid conversion fees.
- Check whether the broker provides tax reports suitable for your country.
- Look for support in your language and during your local trading hours.
- Remember that national rules on marketing and tax differ across the EU.
Why we still list some non-EU brokers
Our rankings cover brokers used by traders across Europe. Where a broker isn't authorised in the EU, we say so and show its actual regulators, so you can make an informed choice and confirm eligibility with the broker directly.
Frequently asked questions
Can I open an account with an FCA broker if I live in the EU?
Generally, UK firms can't actively offer investment services to EU residents. Many broker groups instead onboard EU clients through an EU-licensed subsidiary.
What is reverse solicitation?
It's when a client approaches a non-EU firm entirely on their own initiative. It's interpreted narrowly, and firms can't rely on it while marketing to EU residents.
Do I keep FSCS protection with a UK broker if I live in the EU?
Eligibility depends on the firm and the scheme rules, but EU residents should generally look for an EU-authorised entity and its national compensation scheme.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.