Best Forex Brokers In the UK
The United Kingdom is one of the most active regions in forex trading. In total, there are over 160 forex brokers operating in the UK. Some people might call this an oversaturation in the market. Such a high number of forex brokers confuses and makes the decision-making process for traders a little more challenging. This is especially hard for new traders.
In this article, we will be looking at the best forex brokers in the UK. We hope this will provide a little insight into what the companies have to offer. Still, Every trader should do their own research to ensure that the company they choose best suits their needs. Before we jump into the list, let’s look at some important questions.
Is Forex Trading Legal in The UK?Forex trading in the UK is 100% legal and regulated by one of the best watchdogs in the industry. The Financial Conduct Authority (FCA) in the United Kingdom has the mandate of protecting investors from fraud. They also ensure companies have the best trading conditions for investors. The FCA is independent of the government of the UK which is an added advantage. It plays a crucial role in keeping companies in check and protecting investor funds. Here are some FCA guidelines that member brokers must adhere to.
- All FCA-regulated brokers must keep client funds in segregated accounts. They cannot keep these funds in the same account as the company’s funds. They must also only use client funds for trading and nothing else.
- The FCA requires brokers to have at least £1 million in operating capital to maintain client positions in the market. This amount increases depending on the number of traders and the trading capital.
- FCA-regulated brokers must process all withdrawals instantly and meet all financial obligations without fail.
- FCA-regulated brokers must submit yearly audit reports to verify their holdings and financial statements.
- The FCA also protects traders from company failures such as bankruptcy and insolvency. The Financial Services Compensation Scheme protects investors from losing money due to such events.
- In 2019, the FCA introduced measures to protect retail investors including negative balance protection. This means that even if the market moves against traders, they cannot lose more money than is in their accounts.
- The FCA also set the maximum leverage at 1:30 on CFDs. This makes sure traders do not overleverage and end up owing the broker money.
There are many other measures that the FCA has in place to protect traders from fraud and excessive losses. Clearly, the FCA is invested in protecting investors and providing the best trading conditions. Hence, traders in the UK should only trade and invest with FCA-regulated brokers.
How to Verify FCA Authorisation
In the UK, all financial service activities must be regulated by the FCA. Sadly, there are many scammers in the market pretending to have authorization from the FCA. To combat this, the FCA made it easy to verify the authorisation of a company to provide financial services. You can search the Financial Services Register for firms and individuals and the activities for which they have permissions.
Always make sure to check whether a company is indeed authorized by the FCA. Note that even regulated companies can break the laws. However, you are better off investing in regulated companies than unregulated ones.
Now, without further ado, here is our list of one of the best forex brokers in the UK.
Pepperstone is a regulated company providing brokerage services for forex and CFDs trading. In the UK, the company is licensed and regulated by the FCA under reference number 684312. While regulation alone is not enough, it is always safer to invest in regulated companies.
The two base currencies accepted on Pepperstone forex trading accounts are the US Dollar and the Great British Pound. This is appealing to UK traders as they do not have to convert their funds to any other currency. Clients can fund their accounts using a variety of ways on Pepperstone. These include Visa and Mastercards, Bank Transfers and PayPal. There is no minimum deposit on Pepperstone. However, the company recommends a minimum deposit of AUD$200 or equivalent to trade.
Some of the best currency pairs for UK traders to trade include GBPUSD, EURGBP, GBPCAD, GBPCHFand GBPJPY. These are not the only currency pairs available to trade. Today, Pepperstone features more than 60 currency pairs available for trading.
Pepperstone also provides competitive spreads to traders. The spreads on the platform for major currency pairs range from 0 pips to 1.59 pips depending on the account type. There are also commissions charged depending on the trading platform a trader uses. The maximum leverage for clients in the UK stands at 1:30 in accordance with FCA rules and regulations.
81.2% of retail CFD accounts lose money
eToro is perhaps the best broker for copy trading in the market today. The company launched in 2007 and offers brokerage services to both experienced and inexperienced traders. The good thing about eToro is that it is regulated and authorized by the FCA under the firm reference number 583263. On top of that, the company is regulated by the CySEC and the ASIC.
There are a variety of trading instruments clients can invest in on eToro. They can invest in CFDs on forex, stocks, commodities, indices and ETFs. For forex traders, there are 45+ currency pairs available to trade on eToro. You can also purchase real stocks and cryptocurrencies. Some of the currencies you can trade against the Great British Pound include the US Dollar (GBPUSD), the Japanese Yen (GBPJPY), the Euro (EURGBP), the Swiss Franc (GBPCHF), the Canadian Dollar (GBPCAD) and the Australian Dollar (GBPAUD) among others.
Some of the ways clients can fund their account on eToro include Credit/Debit cards, Wire Transfers, Skrill, Neteller and WebMoney. The minimum deposit is £10 in the UK. There is a free demo account and an educational section for traders who want to learn and practice new trading strategies.
There are no hidden fees on eToro. eToro is very transparent on the charges that apply when trading. The company features a Market Hours and Fees Page for clients to access this information. The maximum leverage on eToro is 1:30 for major currency pairs and 1:20 for minor currency pairs for UK clients.
76% of retail CFD accounts lose money when trading CFDs with this provider.
You should consider whether you can afford to take the high risk of losing your money.
Forex.com is a prime forex and CFD broker licensed and regulated by the FCA in the UK. It is also regulated by the IIROC in Canada, the CySEC in Cyprus and the NFA and CFTC in the US. On top of this, the company has a long history in the market. Forex.com launched its services in 2001 and now has over 450,000 active clients.
Clients in the UK can have their Forex.com can have the Great British Pound as the base currency for their accounts. Additionally, they can trade the GBP against a variety of other currencies. These include the US Dollar (GBPUSD), the Euro (EURGBP), the New Zealand Dollar (GBPNZD) and the Japanese Yen (GBPJPY). These are just a few examples from the 50+ tradable currency pairs on Forex.com.
The spreads on Forex.com can go as low as 1.0 pips for some currency pairs. The maximum leverage on Forex.com stands at 1:30. This is in line with the FCA regulations as the maximum leverage allowed for UK forex brokers is 1:30. This helps protect investors from overleveraging and falling into debt.
There are a variety of ways UK clients can fund their accounts. The options available include Wire Transfers, Credit and Debit card payments, PayPal and Maestro. The minimum initial deposit on Forex.com is £100.
72.5% of retail investor accounts lose money when trading CFDs with this provider.
XTB Limited is authorized and regulated by the FCA under reference number 522157. Launched in 2002, the company has close to 20 years of service delivery in the forex space. This longevity in the market and the regulatory status is what makes XTB one of the best forex and CFDs brokers in the UK. Furthermore, the company also has regulations in Cyprus by the CySEC, in Poland by the KNF and in Belize by the IFSC.
Investors in XTB can trade 48 different currency pairs on XTB. Some of the currencies you can trade against the Great British Pound include the US Dollar (GBPUSD), the Euro (EURFBP), the Australian Dollar (GBPAUD), the Canadian Dollar (GBPCAD) and the Swiss Franc (GBPCHF) among others.The spreads on XTB depend on the account you are using. For example, the spread on the standard account is floating starting from 0.9 pips. On the Pro account, the spreads start from 0 pips and are variable depending on the market movement. The maximum leverage on XTB stands at 1:30 on the standard account for UK clients.
There are several payment methods clients can use to fund their XTB accounts. These include Bank Transfers, Credit Card payments and e-Wallet payments including Skrill, Paysafe, Safetypay and Neteller. Luckily, UK investors can have their accounts in Great British Pounds as the base currency. There is no set minimum deposit on XTB. You can open a real account and trade from any deposit.
77% of retail investor accounts lose money when trading CFDs with this provider.
This forex and CFD broker has been operating since 1977. However, the company launched its website in 1997 and continues to offer brokerage services to this date. Today, the company is licensed and regulated by the FCA in the UK, the SEC and CFTC in the US, the ASIC in Australia and the Monetary Authority of Singapore in Singapore. Such longevity and regulatory status are always attractive to both novice and veteran traders.
Luckily for UK traders, Interactive Brokers allows them to have GBP as the base currency for their accounts. Additionally, there are a variety of currencies they can trade against the GBP. These include the Euro (EURGBP), the US Dollar (GBPUSD), the Australian Dollar (GBPAUD), the Swiss Franc (GBPCHF) and the Canadian Dollar (GBPCAD). All in all, there are over 100 currency pairs available to trade on Interactive brokers.
Sadly, Interactive Brokers does not display its average spreads on the website. However, the company promises clients some of the tightest spreads in the market. The maximum leverage on Interactive Brokers stands at 1:30 for UK clients. This is as per the FCA’s regulations to ensure investors do not overleverage.
Interactive Brokers does not support a ton of payment options. To fund your Interactive brokers’ account, you have to use Wire Transfers or Credit/Debit card payments. Even so, Credit/Debit card payments are only available for US citizens. There is no minimum deposit amount for individual traders.
IG is a forex and CFD broker that allows UK traders to have the Great British Pound as the base currency for their accounts. This company is one of the best forex brokers in the UK. It has regulations from several regulators including the FCA, ASIC and BaFin. This regulation and the company’s long history in the market make it a top-tier forex broker in the UK.
Furthermore, IG allows clients to trade a wide variety of currency pairs. There are over 80 currency pairs available to trade on IG.com. Some of the best currencies to trade against the GBP include the USD (GBPUSD), the EUR (EURGBP), the CHF (GBPCHF) and the JPY (GBPJPY).
Traders on IG enjoy industry-standard spreads with an average of 0.6 pips for major currency pairs. Additionally, IG does not charge commissions on forex trading. Further, the leverage is capped at 1:30 in line with FCA regulations. Some of the payment methods supported by IG include Wire Transfers, Credit/Debit card payments, and PayPal. The minimum deposit for card payments is £300. There is no minimum deposit for bank transfers.
Vantage is a global, multi-asset broker offering clients brokerage services for trading CFDs on Forex, Commodities, Indices and Shares. Clients of Vantage Markets get to trade with a heavily regulated company in multiple jurisdictions. In the UK, the company is regulated and licensed by the FCA under reference number 590299.
Fortunately, this company allows UK investors to have the Great British Pound as the base currency of their accounts. There are 40+ currency pairs available for trading on Vantage Markets. Some of the best currencies to trade against the Great British Pound include the US Dollar (GBPUSD), the Euro (EURGBP), the Swiss Franc (GBPCHF), the Australian Dollar (GBPAUD), the Canadian Dollar (GBPCAD) and the Japanese Yen (GBPJPY).
The spreads on Vantage Markets depend on the account type a user is using. For example, the average spread on the Standard STP account is 1.4 pips. Like other FCA-regulated brokers, Vantage Markets caps its maximum leverage at 1:30 for UK clients. There are a variety of payment options supported on Vantage Markets. Clients can fund their accounts using Credit/Debit card payments, Wire Transfers, Astropay, Skrill and Neteller. The minimum deposit on Vantage Markets is £200.
Plus500 is a respected CFDs broker and the official partner of the NBA’s iconic Chicago Bulls. This company allows clients to trade CFDs on over 60 currency pairs in the forex market. Fortunately, UK traders can have the Great British Pound as the base currency of their accounts. They can trade the Sterling Pound against the Euro (EURGBP), the US Dollar (GBPUSD), the Australian Dollar (GBPAUD), the Singapore Dollar (GBPSGD) and the Danish Krone (GBPDKK) among others.
In the UK, this company is licensed and regulated by the FCA under reference number 509909. This regulation puts a good case for the safety of trading with Plus500. The best forex brokers in the UK are keen to follow the rules and regulations laid by the FCA.
Plus500 does not charge clients commission fees when trading forex. However, a variable spread applies to cover trading fees. As an example, the spread on the EURUSD pair can go as low as 0.8 pips depending on the market. The maximum leverage is capped at 1:30 in accordance with FCA rules and regulations.
To fund your account, you can use a variety of payment options. These include Wire Transfers, Debit/Credit card payments, PayPal and Skrill. Only Visa and Mastercard cards are accepted by Plus500. The minimum deposit accepted by Plus500 is £100.
CMC Markets is a forex and CFD broker that features over 330 tradable currency pairs. Fortunately, UK clients can have their account balances in Great British Pounds without having to convert to another currency. Some of the best currency pairs for UK clients to trade include EURGBP, GBPUSD, GBPJPY, AUDGBP and GBPCHF.
There are a variety of ways clients can fund their CMC Markets accounts. These include Credit/Debit card payments, bank transfers and PayPal. CMC Markets does not charge clients in the UK for depositing funds into their accounts. Any charges they impose will always show in a client’s account history. The minimum deposit on CMC Markets is £5.
CMC Markets is operating in the UK legally and under the watch of the FCA, one of the world's best regulators. The company is licensed and regulated by the FCA under reference number 173730. Investors should only invest in regulated brokers as they are less likely to defraud clients. CMC Markets charges variable spreads to clients when trading. For example, the spreads on the EUR/USD and the USD/JPY can go as low as 0.7 pips. On the other hand, the leverage for UK clients is capped at 1:30 in accordance with FCA regulations.
TickMill launched its online brokerage services in 2014 and features multiple markets on its platform. Forex traders can trade over 62 currency pairs on Tickmill. Some of the best currency pairs to trade for UK traders include EURGBP, GBPAUD, EURUSD, GBPJPY and GBPUSD. Luckily, UK clients can have their account balances in Great British Pounds for easier trading.
Trading with regulated brokers is the safest bet for any investor. Luckily, Tickmill has regulations in multiple jurisdictions. It is regulated by the FCA in the UK under the reference number 717270. This forex broker is also regulated by the CySEC in Cyprus, the FSCA in South Africa, and the FSA in Seychelles. Such regulation makes Tickmill one of the best forex brokers in the UK.
Further, Tickmill provides some of the best spreads in the market. Typical spreads on Tickmill can go as low as 0.1 pips on major currency pairs. The leverage, on the other hand, is capped at 1:30 for UK clients in accordance with FCA regulations. There are a variety of ways to fund your Tickmill account. Clients can use Bank Transfers, Credit/Debit card payments, Skrill and Neteller. The minimum deposit amount on Tickmill is £100.
Conclusion On The Best Forex Brokers in The UK
While these are some of the best forex brokers in the UK, this is not a conclusive list. Traders should do their own research to ensure the company they choose to trade with best suits their needs. All in all, the companies listed here are FCA-regulated and offer some of the best trading conditions in the market. As such, they belong among the best forex brokers in the UK.