You could just put their money into your account and trade it.
If it goes south, they get cold feet or you just have bad drawdown,
things will change rapidly. Its a massive risk to assume that won't happen.
In that case you are wide open to this: How we enforce the law - Financial Conduct Authority
We can take action such as:
withdrawing a firm's authorisation;
prohibiting individuals from carrying on regulated activities;
suspending firms or individuals from undertaking regulated activities;
fining firms or individuals who breach our rules or commit market abuse;
applying to the Court for injunctions and restitution orders; and
bringing criminal prosecutions to tackle financial crime, such as insider dealing or unauthorised business
Very sound advice from both L_v and Hoggums, IMO.
If your friends are 100% certain they want to proceed and understand and accept fully that they may never see a penny of their money again, then there is another alternative to consider. They can open and fund their own accounts and give you access to trade them on their behalf. It gets around the issue of regulation and there's no danger of you walking off with their money. You can still lose it all of course - but you can't nick it! Also, assuming you're doing it for a share of the profits, you'll be beholden on them to pay you your share - assuming all goes according to plan. So, you and your friends really need to trust one another.
No UK broker will allow this! if there are then do let me know, i would be interested.
But yes those brokers in Mauritius or Cyprus will allow without you being regulated
then the question is how safe is the broker? are your funds safe?
FCA regulation? is it costly? anyone has any experience? knowledge?
Means nothing - you need them to point out where in the act and the Regulated Activities Order that you're covered for exemption. You might fall under some kind of appointed representative exemption, but my understanding was that the appointer had to be regulated in this instance. On the other hand, it's possible that you may not be carrying on a business in the view of the act, but then this is hard to establish for futures trading if you ask me as rarely is it mentioned except as a regulated activity.
As unlikely as it is, if the sh!t hits the fan and this guy ships you to the FCA, IB will not help you - you need to help yourself first and see exactly where you are covered. All of this stuff is a matter of public record (legislation.gov.uk) so they should be able to send you links.