The Forex (foreign exchange) or FX market is big! Preferably bigger than the stock market itself. With a daily trading volume of over USD 6 trillion, it stands as the world’s largest financial market. Besides being the largest forex market in the world, starting as a beginner presents a massive opportunity for traders.
Being a country with 2.8 million active traders, it is the best-suited industry for FX trading. Additionally, the ease of accessibility, market capital, and 24-hour x 365 days trading options are some of the many reasons it attracts such a large number of beginner investors and professional traders alike.
However, kicking off a career in this industry isn’t easy! Whether you want to be a beginner investor or a professional trader, you need to have the right start. Unfortunately, beginner traders are generally confused with a list of questions when it comes to FX.
Is trading forex legal in the United Kingdom? What is the best forex trading platform UK? Among a slew of other relevant questions.
Well, the list can be endless! And to help you get off the best start with your forex career, we have you covered with this blog. Here, we have listed some of the most secure, best forex trading platforms in the UK. We have listed the leading forex brokers in UK as per their features, skills, fee, and values. Besides, we have also discussed some regulatory conduct and key considerations for the process.
Financial Conduct Authority (FCA) and its UK Regulations for Forex Brokers
Before you start investing in the markets, you need to understand what guides the industry. In the case of Forex, the regulatory body FCS plays a central role in ensuring proper operations in the financial services industry. As a result, they have a pivotal role in protecting the wealth of investors and traders in the financial markets.
Individual investors and traders based in the UK aligned to the FCA regulations before selling and buying currencies or similar tradable assets. As a result, FCA helps ensure the safety of the traders while promoting a competitive advantage among different forex brokers and other financial service providers in the country.
Moreover, since the FCA is responsible for registering the best forex trading brokers in UK and acting in traders’ best interest, they serve as the quality benchmark. This way, you know your forex trader is genuine if FCA certificates back them.
Tip: You must check your forex broker’s website for FCA certification before registering for their services.
What’s new for 2022?
The authority’s UK laws have been modified several times over the past few years. The undercurrents of quickly shifting foreign currencies have impacted Fx traders’ operations in 2021. The FCA stated in May that RegData would replace Gabriel as the legacy data gathering platform.
This was considered a safety net to ensure that financial markets function correctly. Additionally, the FCA also disclosed that UK forex brokers must follow SCA regulations on financial services like e-commerce transactions. In the future years, several new brokers may seek regulation.
Now that you’re all updated with FCA’s latest regulations and the role it plays in helping you select the best UK forex broker, let’s look into the key considerations while choosing a broker for you. In the following section, we have listed a set of questions that you must ask yourself before you sign up for the services of any UK-based forex broker.
Key Considerations When Choosing a Forex Broker
You need to take into account multiple things when you’re on your hunt to choose the best forex broker in the UK. Ranging from the fee to the functionalities and the regulations that need to be looked at, it’s hard to find one broker that suits the requirements of all traders.
Therefore, here’s a list of considerations you need to make before finalizing which one is right for you. Here are a few key points that you need to keep in mind:
- Is your broker regulated?
When picking a forex or CFD broker, the most important factor to consider is safety. Since you’re entrusting it with your money and personal information, you’ll want to know that both are safe.
Additionally, as a beginner trader, you’ll also want to have faith in your selected broker’s reputation and qualifications, guaranteeing that it won’t go out of business or, worse, defraud you of your money.
By now, you’ve known that the FCA (Financial Conduct Authority) will regulate the finest FX and CFD brokers in the UK, ensuring that it operates with the highest level of integrity, fairness, and openness. Therefore, when preparing your list of the best UK forex brokers, ensure that you’ve scrolled through their website to ensure their FCA registration numbers are prominently displayed.
- What are the trading costs?
The next pointer on your list of considerations while choosing a forex or CFD broker is the cost that it attracts.
When looking for forex trading brokers in the UK, you’ll want to consider their cost structures. There are different brokers, some work on a commission basis, while most charge you via spreads.
The spread is the difference between the buying and selling prices on a currency pair to give you an idea. Interestingly, it may influence your profit margin depending on the sort of trader you are. Therefore, it’s always a wise move to examine the average spreads offered by each broker to see which one is best for you.
Aside from the spread, you’ll want to think about the minimum deposit and any other fees the broker may impose, such as rollover costs (a price for holding an open trade overnight), withdrawal fees, and interest rates.
Lastly, while you’re on it, try reading the fine print of each broker’s service agreement to minimize unexpected expenses. Also, keep in mind that the most affordable choice is not necessarily the best. Look for the best value for your money rather than the lowest price.
- What type of trading platform does it use?
The trading platforms used by a forex or CFD broker are crucial since it is through them that you will conduct all of your trading activities.
When working on your list of forex trading brokers UK, you’ll want a simple platform to use, straightforward to navigate through, appropriate for your level of experience, and equipped with a variety of beneficial tools to assist you in making the best trading selections possible.
Many of the UK’s finest forex and CFD brokers provide the famous MetaTrader 4 (MT4) platform and their platforms, which you can check out with a free trial account before committing.
- Does your broker provide good customer service?
A broker does not offer you a one-time service. Therefore, one must deliver excellent customer service throughout your trading career.
When creating a list of dedicated exchanges, understand that a good broker should be easy to reach, solve difficulties quickly, and provide reliable trading advice. To discover how each possible broker on your list stacks up, read user reviews against their service.
Keep in mind the degree of help each broker provides through educational materials and resources when assessing customer service. The finest forex or CFD brokers want you to succeed. Therefore they frequently offer video lessons, articles, and webinars, most of which are free to account holders.
- Does your broker match your trading style?
The last and essential factor on our list is you! Yes, the type of trader you are will have a big impact on the experience you get from your broker, so ensure to look at what it has to offer and see if it matches your trading style.
Suppose you match the trading style who trades many times a day to accumulate modest profits. In that case, you’ll want to register yourself with a broker that has narrow spreads and no requirement for a minimum period for entry and exit from the market.
Additionally, suppose you want to use a broker’s swap rates and rollover pricing to profit from interest rate differentials to seek out the profits from a carry trade strategy. In that case, you’ll want to look at their rollover pricing and swap rates.
In addition to the above, here are a few things which we think you need to keep in mind:
- Leverage available
- Total range of currency pairs available for trade
- Types of accounts on offer
Ultimately, choosing the best forex trader in UK will result from thorough research. The points mentioned above will give you a good idea of where to begin.
List Of Best Forex Trading Platforms In the UK
eToro is one of the leading names on the list of the best forex trading brokers UK. Marking a long history in the industry, the platform has been around since 2004 and is provided by a London-based broker. Since its inception, the broking platform has attracted over 6 million investors globally.
The platform is functionally rich as it allows its users to trade in 47 pairs of currencies, buy and sell stocks, ETFs, indices, stock CFDs, crypts, and gold and silver commodities.
The platform’s developer is a reputable Forex instructor with licenses in Australia, the United Kingdom, and Cyprus. Because of its user-friendly design and app and 24-hour customer service, this forex broker is ideal for novices.
eToro provides its beginner investors with a slew of features that they can take advantage of! The list includes a variety of free online courses and webinars, demo accounts, and options to follow and replicate professional traders over the platform effortlessly.
Moving towards its pricing, a minimum deposit of $200 ($500 for bank transfer) is necessary for traders residing in the United Kingdom. However, there are no costs associated with trading stocks and ETFs. On the other hand, withdrawal is not free – there is a $5 flat cost.
For the payment options, you can transfer money to and from your account using the same method: MasterCard and Visa, PayPal, or bank transfer. Inactivity fines are also significant, and help is provided via web ticketing.
Second on our list of the top forex trading platforms in UK is Forex.com, a broker that has been in the business since 2021. StoneX Group Inc, the company’s parent, is traded on the NASDAQ Stock Exchange. The platform is regulated in various countries, including the United Kingdom and the United States. It supports a wide range of trading options from Forex, CFDs (indices, stocks, commodities), and cryptos.
One of the best things about this platform is that its UI appears almost identical no matter what device you use. So you may use your desktop browser, smartphone, or tablet to access the same terminal. All of this, plus its 24-hour customer service, make it the perfect spot for beginner traders.
Interestingly, there’s more for the advanced traders on Forex.com. The platform has 70+ technical indicators and offers 90+ varieties of pairs from over 4,500 markets. It’s an inversive feature that allows users to trade directly from charts. Just click and drag your orders to edit them easily. Customization is robust, as everything from drawing tools to indicators is optimizable.
Advanced traders can also have their preferences applied to future sessions automatically. The platform also supports over 10-time intervals from tick to monthly. You can also access a sample account for 90 days for free.
The fee structure for Forex.com is simple; it boasts some of the lowest Forex fees in the industry. The platform charges new users a minimum deposit of $100 on sign-up. However, the welcome bonus campaign offers a 20 percent bonus on your first deposit up to $5,000. Besides, all withdrawals are free.
On the downside, the fees for CFD trading are not the lowest. Moreover, the broker only supports bank transfers, wire transfers, and debit cards in terms of payment methods.
Often regarded as the best forex broker UK, IG stands out to be one of the oldest brokers on our list, with its history going back to 1974. It was also awarded the ADVFN International Financial Awards in 2021.
In terms of its operational capacity, IG is the largest global provider of CFDs and has been approved by the FCA in the United Kingdom, BaFin in Germany, and other international authorities worldwide. It brings 80 currency pairings, including exotic currency pairs, forex pairs, major currency pairs, and minor currency pairs.
Traders in the UK can sign-up for IG to start their trades in Forex, options, CFDs, ETFs, stocks, IPOs, and Robo-advisory; the options are simply vast over the platform! Additionally, the platform comes with its own smart deal ticket system. In terms of its UI features a clean and straightforward appearance, with a separate tab for a summary of the specifications.
Users may keep an easy track of spreads, market prices, and margins at a glance. Advanced traders can also utilize stops and limitations, including guaranteed stops, to mitigate risk. Besides, their platform also brings you 19 drawing characteristics and 28 indicators, among other technical tools. You can easily compare up to four periods on one chart.
For beginners in Forex, they may sign up for a free sample account and access various instructional materials. The major benefits are top-tier regulator oversight and outstanding instructional materials.
Moving to its fee structure, the broker does not demand a minimum deposit (otherwise, it is $300). All withdrawals are completely free. Clients can use Visa, MasterCard, and PayPal to send money.
Pepperstone is a renowned forex terminal based out of Australia. It is also known as a global gold standard of trading due to its high overall rating from its competitors. Founded in 2010, the platform initiated its operations in 2015. The platform is unique because it offers options to trade in both Forex and CFDs.
This FCA authorized broker offers a slew of options: flexible digital access, quick account registration, and reliable customer support. The platform is famous among beginner investors for its relative simplicity.
The platform offers options to upgrade your account for advanced traders, introducing more complex features to trade in the 61 currency pairs.
Although the firm offers no benefits, you may test out their trial for free. Pepperstone is a highly customizable platform that also supports Expert Advisors. The Autochartist program detects statistically significant changes in the currency market.
To better understand market patterns, the desktop version comes with 85 pre-installed indicators. In addition, it facilitates the backtesting of methods and includes numerous chart layouts.
There is no minimum deposit for the Standard account since the deposits. For residents of the United Kingdom, withdrawals are free (with an applied fee for conversion). The payment methods include Visa, MasterCard, bank transfers, and PayPal.
5. FXCM Trading Station
The FXCM Trading Station is a UK-based broker who is registered under Jefferies Financial Group, a business registered on the New York Stock Exchange. Founded in 1999, the FXCM Trading Station is touted to be one of the best forex trading platforms in the UK.
The platform includes outstanding technical trading tools and numerous instructional information, including the options to trade currencies, CFDs (indices, stocks, and commodities), and cryptos available in the market.
The Trading Station Web platform is clean and provides a modern, clean layout with simple navigation. Additionally, the HTML5 design makes it Mac-friendly as well!
What makes the platform suitable for beginner traders is its technical and fundamental analysis support. The list includes an economic calendar as well as customizable analysis tools. All charts are configurable and removable, allowing you to relocate them to a second monitor if needed. Price notifications may be received, and trades can be made immediately from the charts.
Adding more to its slew of offerings, FXCM trading station brings you a trial account which is completely free and includes $20,000 in virtual currency. Automated tactics, such as backtesting and optimization, are also supported by the platform. You may find out about trader sentiment using a particular SSI indicator.
For beginners, you can get started with a minimal deposit of $50. Your user profile and chart preferences will be saved in the company’s cloud, and you will be able to share them with others.
On the other hand, the instruments available are confined to currencies and CFDs. Trading is less safe in the absence of two-factor verification, and withdrawal costs are rather expensive if you opt for a bank transfer. Other options in the list include Visa, MasterCard, and electronic wallets.
Launched in 2006, AvaTradeGo is another name on the best forex trading platforms list. It is an award-winning forex trading exchange alongside being a MetaTrader product. What makes the platform interesting is its simplicity and clean UI.
This web-based product comes with several advantages: ease of setting up accounts, access to a wide range of markets, tight spreads, and several research tools. These features, packed with a well-designed, user-friendly approach to operations, make AvaTradeGo the perfect pick for newcomers and seasoned veterans.
Additionally, it’s compatible with numerous web browsers, and the platform Trading Central delivers great technical insight and rapid pattern detection.
Talking of its fee structure, the minimum deposit fee for users to get started is $100. The platform also makes its users eligible for a significant welcome bonus to make up for the high sign-up amount. The broker also allows you to have up to 40% of your deposit back to begin trading. However, it should be noted that this amount is a result of its sliding scale and is limited to $16,000.
Trading CFDs may be used to access all products, and copy trading is also accessible. Withdrawals are completely free, which is a significant benefit. MasterCard and Visa, as well as bank transfers and e-wallets, are all accepted.
On the flipside, inactivity costs are very hefty, whereas Forex fees are standard. Two-step login and price notifications are also absent from the platform.
7. XTB X
Ranking seventh on our list, XTB is another trading platform that has earned its name as one of the high leverage forex brokers in UK. Headquartered in London, this global CFD and FX broker is regulated by several financial authorities like the Polish Financial Supervision Authority and the UK Financial Conduct Authority. Interestingly, it is the only few forex exchanges listed on the WSE (Warsaw Stock Exchange) developed to protect customers.
Its lists of offerings are unique as users can trade forex pairs, metals, stocks, commodities, indices, and cryptos over the XTB platform using the maximum leverage functionality. What makes the platform a good start for beginner investors is its clean UI, backed by many trading and charting options.
The platform offers two account types, standard & Pro, for its users. In addition, XTB’s extensive list of features is designed for both beginner and advanced traders. The list includes guaranteed stop losses on pending, new, or open positions to minimize losses, commission-free trading, account insurance, swap fees, and trading courses for beginner and professional traders.
The fee section is one where the XTB trading platform is highly diversified. To begin with, the charges are very low for fx pairs, indexes, stocks, and CFDs. Its commission-free trading model allows free withdrawal and no minimum deposit for forex trade.
To fund their minimum deposit funds, traders can use e-wallets, credit cards or debit cards, bank wire transfers, and UK bank accounts.
On the flip side, there’s a monthly cost for inactivity.
8. FXPRIMUS cTrader
Last on our list of the top forex brokers in UK is the FXPRIMUS cTrader. Established in the year 2009, it is regulated in three countries outside of the United Kingdom: Vanuatu, Cyprus, and South Africa. FXPRIMUS is a good start for beginners, thanks to its easy-to-use, secure interface and commission-free ECN accounts.
The multitude of beginner-friendly instructional resources offered by the platform makes it a great learning source while understanding the different effective trading tools and competitive spreads. You may examine your strengths and shortcomings using the thorough trade analysis interface. There are a large number of indicators that can be tweaked. In addition, the system supports expert Advisors for automated forex trading.
Advanced traders can explore its wide range of underlying assets using the cTrader software. The list includes currencies, indices, cryptos, metals, stocks, futures, and energy. The platform is accessible on Windows, Mac PCs, iOS, and Android smartphones.
What distinguishes the FXPRIMUS from the others is its cTrader feature, the latest addition to the broker’s software lineup. The cTrader feature adds to your experience via its quick execution, complete risk management, and high-accuracy analytical tools. Additionally, users can also use the copy feature to duplicate the strategies of other users.
Moving to its fee, users need to deposit a $100 or more sign-up via bank transfer, e-wallets, credit card, or local transfer alternatives.
Now that we have walked you through the different forex trading platforms in the UK, here’s an overview:
|Broker||Minimum Deposit||Lowest Spread||Demo Account
|eToro||£185||3||Free and unlimited
|Forex.com||£100||1.1||90 days free
|IG||£250||0.6||Free and unlimited
|Pepperstone||0.6||Free and unlimited
|FXCM Trading Station||£300||0.7||$20,000
|AvaTradeGo||£100||0.9||Free and unlimited
|FXPRIMUS cTrader||£100||0.4||Free and unlimited
Understanding the UK Forex Market
If you’ve researched the forex market, you’ll know that it is the largest financial market to exist today! And thanks to the leading forex brokers making online forex trading accessible, the prospects of coming into the industry are better than ever.
Currency markets operate through a worldwide network of businesses, banks, and individuals involved in the sale and purchase of currencies regularly. However, this scale and accessibility of operations come with regulatory challenges. As a result, the present framework we see in existence today consists of governmental entities and independent regulations from various jurisdictions that regulate and monitor on a more local level.
As a result, anybody new to or unsure of the market should prioritize learning the specific rules and regulations before investing their money!
Best Forex Trading Platform In the UK
As per our list of the top forex trading platforms, Forex.com stands out as the best forex trading platform in UK. What makes the platform stand out from the rest is that it is designed keeping in mind the beginner investors, giving them all the necessary tools and education required to start their journey.
However, since no one solution fits all for this question, it is imperative to do your research around the different platforms and come up with the best forex trader in the UK which matches all your needs. All the best!
Do you want to know more about forex trading in uk? Read all about Best Free Forex Signals For UK .
Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.