London and the United Kingdom have been the financial centre of Europe for many centuries, so it shouldn’t come as a surprise to anyone that the United Kingdom offers great opportunities for Forex dealing. London is actually the largest currency trading centre today, with nearly 37% of all trading, and an astonishing $1,5 trillion going through forex securities of London, compared to the 6% of Tokyo, and 18% of New York.
When it comes to forex trading, the United Kingdom offers plenty of experienced UK forex brokers with an excellent reputation, making the country one of the most well-equipped places in the whole world for foreign currency trading.
Make informed investment decisions with confidence! Our research dives deep into the UK broker market, giving you all of the facts and knowledge to make an educated choice.
Best Online Brokers in the UK
All Uk forex brokers and platforms listed here are regulated by the Financial Conduct Authority (FCA).
For almost 20 years, ActivTrades has been an industry leader in broker services in the United Kingdom.
With a highly experienced team of experts and unbeatable terms on financial instruments, they have become renowned for their top-notch customer service – which comes complete with tight spreads, minimal fees and ultra-fast execution. This commitment to quality has earned them esteemed regulatory approval and +45 awards – giving traders the ultimate trading experience!
#2 Pepperstone – Best FCA-regulated broker in the United Kingdom
Our Rating: 4.8/5
Pepperstone is the ideal broker for traders who want to take their trading experience up a notch. As one of the top-tier forex and CFD brokers in the world, it boasts unparalleled access to cutting-edge technology as well as an intuitive platform for seamless navigation of financial markets.
With its coveted regulation from prominent European, Australian and UK authorities, users are assured that they won’t be disappointed with Pepperstone’s commitment towards safety and security – not forgetting its competitive spreads too.
A dedicated customer service team also stands ready and located close by should you ever need help along your investment journey.
Since its founding in 2002, XTB has rapidly become one of the most prominent online brokers throughout Europe. Having opened a subsidiary in 2010, XTB is now considered to be one of the leading brokers operating within The United Kingdom.
Distinguishing itself from other competitors is its unique web-based trading platform – which was awarded ‘Best Trading Platform 2016’ by Online Personal Wealth Awards due to user-friendly features and functionality offered through its use, with very competitive spreads.
Compare Regulated Forex Brokers for the United Kingdom
Notice: Crypto CFD trading is not available to retail traders in the United Kingdom.
How to trade Forex in the UK?
When someone decides they want to get in on the action, the first and most important thing is to understand the basic terminology. We’ve already discussed what is the base, and the counter currency is, but there are some other important elements to choosing the best forex brokers in the UK.
The exchange rate will tell how much somebody has to spend in counter currency to get the base currency.
The long position means somebody wants to buy the base currency, and sell the counter currency
The short position means that somebody wants to buy counter currency, and sell the base currency
The Bid price is the price the broker is willing to buy base currency at, in exchange for the counter currency. It is the best price somebody’s willing to sell their counter currency
The Ask price is the price the broker will sell the base currency, in exchange for the counter currency. The Ask price will be one’s best price at which they are willing to buy from the market.
The spread is the difference that will be between the bid and the Ask price
The next important step is to learn how to read the forex quote. The bid price will always be on the left, quoted first, and the Ask price will always be on the right, as the second reference.
We have chosen the most reputed UK forex brokers on the internet after researching more than 50 online forex brokers in the UK and comparing their features.
How to open a forex trading account in the UK?
In the first step, you have to choose a Forex broker and visit their website. You need to fill out your personal information including your name, address, and contact details. Different brokers have different verification requirements. Some Forex brokers in the UK may ask you for a bank statement or a utility bill stating your address. Choosing a broker is the first and most important step in your Forex trading carrier. You should make sure that the broker is regulated by the FCA (Financial Conduct Authority) and follows the guidelines set by the regulator.
In the second step, you will have to select an account type. These days Fx brokers offer various types of accounts with different trading conditions. The main types are mini, micro, standard, and managed accounts. If you are starting with a small amount perhaps a mini account will be suitable for you as it will provide an adequate leverage facility. However, you should always check additional things associated with a specific account type such as commissions, spread, negative balance protection and so forth.
In the third and final step, you will have to fund your account. After funding your account, you should be ready for trading provided there are no other requirements from the broker’s compliance department. Before funding your account, you must once again make sure that your broker is following the regulator’s requirements and keeping your funds in a segregated trading account.
Is forex trading legal in the UK?
FX trading is fully legal in the United Kingdom. Foreign currency trading in the UK is regulated by FCA, the Financial Conduct Authority. The Financial Services and Markets Act gave them their statutory powers, and the United Kingdom Parliament passed that in 2000. This organization is an independent body, that not only regulates but supervises the whole financial services industry in the United Kingdom. No country is free of scandals and fraud, but when it comes to security, the United Kingdom probably offers the best solutions for safe foreign currency trading to anyone. FCA requires the client, for example, to separate their assets from the assets of the company, making the clients’ account almost 100% immune to some claims that creditors could make in the unfortunate event of fraud, or bankruptcy.
Forex trading has grown in popularity since the start of the 21st century. Thanks to the internet technology that brought Forex trading into the palm of our hand. Today, anyone with a computer or a mobile device can easily open a Forex trading account and start trading. The technology revolution has brought a huge influx of new traders to the Forex market and it has become one of the biggest financial markets in the world. Its daily turnover has now peaked at $5.2 trillion compared to only $500 billion back in the 1980s.
The UK is one of the biggest hubs of the Foreign Exchange market and home to some of the largest Forex brokerage firms. It has an equally higher number of forex traders that are estimated at 730,000. The number of Forex traders in the UK is twice as many as in any other European country. The fact that a great number of people are attracted to Forex trading every day there is still the need to know the exact process of opening a Forex trading account. In the UK, the process is fairly simple and involves 3 steps.
FCA Forex Brokers: An insider’s view
The UK has an overall strict financial regulatory system. The laws apply firmly to the Trading and Finance Industry. Moreover, the FCA forex brokers, authorized by the Financial Conduct Authority (FCA), offer financial and trading services.
The UK forex brokers serving in the country need to acquire a license from FCA. It is one of the stricter and most competent authorities in the whole of the EU and the UK.
It protects the interests of the investors. If the FCA-regulated forex broker goes bankrupt, their clients are covered up to £50,000.
This is an insider’s view on FCA and the regulated forex brokers. But, there is more to the regulations and laws made by the Financial Conduct Authority, UK. Let’s get a sneak peek into this competent authority.
FCA: Who They Are and What They Do?
FCA or Financial Conduct Authority of the UK regulates the trading and financial industry. It came into existence on April 1, 2013. FCA came into force after FSA (Financial Services Authority) was abolished. The authority was created to manage market risks, especially after the ‘2008 financial crisis’.
FCA aims to create a regulated financial market for traders to get a fair deal. Their main aim is to protect the integrity of the UK’s financial system.
It regulates almost 59,000 financial service agencies. FCA is the ‘prudential supervisor’ for 49,000 financial firms. For 19,000 agencies, it has set up specified regulatory standards.
Now, what is the role of FCA? Here’s what you need to know:
Regulate the UK’s forex trading and financial market functions
Overlook the functioning of the market by making it safe for businesses and individuals
Promote the soundness and safety of financial firms
In case of a breach of conduct, take disciplinary actions against the broker or the firm
Investigates and carry out ‘criminal proceedings against any executive-level crimes
Imposes penalty for misuse of power and issues ‘public statement’ against the perpetrators too
Provide transparency in the UK market by offering an honest and fair view of the market
So, this is what UK’s FCA does to prevail integrity in the money market. But, it is necessary to take services of the FCA-regulated forex brokers. Read onto know why?
Why Traders Prefer FCA Regulated UK Forex Brokers?
FCA is keen on traders and customer protection. The authority is ‘investor-centric’ which makes it safe for users. It is mandatory to opt for UK forex brokers regulated by FCA. Here’s why?
No Maximum Financial Cap: Trading with FCA-regulated forex broker will not put unnecessary restrictions. There are no limitations to scalping or hedging strategies.
Provides Modern Financial Products: Get your hands on innovative market and trading products. You can choose Binary Options Trading, CFD trading, and Spread Betting. Enjoy tax breaks in the UK with a Spread Betting option.
Separate Accounts for Keeping Funds: FCA-certified broker will keep your funds in the ‘segregated account’. You can also avail of negative protection against your balances.
Submission of Audited Reports: FCA requires audited reports yearly. Even brokers have to submit financial statements periodically.
Protection of Trader’s Capital: FCA has removed versatile financial crimes and frauds in recent years. The transparent working and displaying of financial reports make them respectable and trustworthy. FCA-based forex brokers stick to strict guidelines that protect investors’ capital in return.
FCA regulations have given a new face to the UK’s forex trading. The investors can now safely invest with the FCA-regulated brokers. Besides, it gives them a sense of belongingness and safety. Even their finances are safe and leveraged by FCA brokers.
The focus of FCA is to make the UK’s financial market innovative and compliant with the latest rules. FCA deems that it is necessary to prevail overall financial security to avoid any capital loss.
The authority wants the investors to put their trust in the sophisticated UK trading market. It will enhance the economy and help investors to get maximum ROI too.
After investigating numerous brokers, we narrowed down the top contenders and carefully evaluated each according to our ranking criteria. Our research identified the best forex brokers in the United Kingdom so you can make an informed decision when choosing one for your trading needs.
Broker Confidence Score (SCS)by BrokerTrending: The financial reputation of the company including Financial Conduct Authority (FCA) regulation, negative balance protection, deposit held, and year founded,…
Trading platforms and tools: Trading platform (Metatrader, web-based and mobile), chart tools, VPS service,…
Instruments: All assets available for trading.
Trading conditions: Here we include the average spreads for the most popular currency pairs, the complexity of orders, execution, assets available for trading, and leverage,…
Trading Accounts: Type of accounts offered by the broker ( standard, demo, micro, Islamic,..).
Other features: minimum deposit, education tools, promotions, customer support and deposit/withdrawal options.
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