Trading forex currencies in the United Kingdom UK is popular among residents. Before any fx broker can accept UK forex and CFD traders as clients, they must become authorised by the Financial Conduct Authority FCA , which is the financial regulatory body in the UK.

The FCA's website is FCA. We recommend UK residents also follow the FCA on twitter, TheFCA. The FCA was formed out of the Financial Services Act of , effectively replacing its predecessor, the Financial Services Authority FSA. For a historical breakdown, here's a link to Financial Conduct Authority webpage on Wikipedia. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

To find the best forex brokers in the UK, we created a list of all FCA authorised brokers, then ranked brokers by their Overall ranking. Compare UK authorised forex and CFDs brokers side by side using the forex broker comparison tool or the summary table below.

This broker list is sorted by the firm's ForexBrokers. com Overall ranking. Check out our sister site, UK. com , for a detailed rundown on the very best trading platforms available for traders in the UK, and for a breakdown of the top mobile apps for UK stock trading. To identify if a forex broker is licensed to operate in the United Kingdom UK , the first step is to identify the register number from the disclosure text at the bottom of the broker's UK homepage.

For example, here's the key disclosure text from IG's website:. Both IG Markets Ltd Register number and IG Index Ltd Register number are authorised and regulated by the Financial Conduct Authority.

Next, look up the firm on the FCA website to validate the register number is, in fact, legitimate. The forex broker provides extensive forex training for beginners, a unique forex platform that allows web trading, mobile trading via iOS and Android Apps or a desktop platform that can be downloaded and the option to trade indices, shares and forex.

City Index in the United Kingdom trades as GAIN Capital UK Limited with local offices in London with FCA registration number The lowest spreads available are through a Pepperstone Razor forex account. You can compare the Razor vs standard account to see which one best suits your trading needs. Every forex broker in the UK recommended on this page is listed on the Financial Conduct Authority FCA register. This was called the Financial Services Authority FSA prior to , after which the Banking Reform Act reformed the authority.

As part of Europe , the United Kingdom follows the ESMA guidelines on CFD trading. You can view the full list of FCA regulated brokers at the bottom of this page. The authority is independently formed by the government and funded by membership fees. Forex brokers are required to hold a minimum of £1 million in operating capital in the UK by the FCA.

This may increase based on a formula aligned to the number of traders a fx broker has. Other requirements include:. The FCA has a compensation scheme to guarantee forex broker UK client funds are protected.

This is called the Financial Services Compensation Scheme FSCS. The objective of the FSCS is to compensate CFD traders when a broker comes into insolvency issues, offering protection up to £50, When insolvency and liquidation issues occur, the FSCS provides CFDs traders with:.

To submit a claim a CFD trader is required to make an insurance claim through the Financial Services Compensation Scheme website. To avoid a scam broker, it is strongly recommended that UK residents choose an FCA-regulated broker. Traders should note that this year Cryptocurrency CFD trading was banned by the FCA. This means that any crypto class such as Bitcoin is no longer offered by any regulated broker in the United Kingdom. Cryptocurrencies are also banned for traders that choose spread betting.

Based on factors such as currency trading conditions, forex market range, fees and customer service, a list of recommended UK forex brokers regulated by the FCA has been created. This was last revised in November and is regularly updated based on CFD providers that gain or lose an FCA licence. Many brokers such as OANDA, XTB and their platform xStation were considered in this review and may be featured on our other UK comparison page.

They are shown in the table below. Disclaimer: CFD and Spread Betting involve complex instruments. In volatile markets, the combination of leverage creates a high-risk trading environment. Volatility can lead clients to lose money quickly.

Make sure that you understand the risks of CFDs and spread bets and can afford to lose your money when trading. I noticed that some overseas brokers offer higher leverage than the list provided here. Why is this? The Financial Regulator of the UK, the Financial Conduct Authority FCA restricts maximum leverage to for major currency pairs and for minor currency pairs. Professional traders however can trade with leverage up to Leverage involves high risk, so if spread move in an unfavourable direction, losses can be crippling.

For this reason, leverage is limited for retail traders to protect them as they may not have the funds to cope with such large losses or the skills to trade effectively with leverage. Some overseas regulators have a more relaxed approach to leverage however these brokers are no approved for traders in the UK. If you are in the UK, you can use a broker regulated by CySEC at this time however if you are in Europe, you should use a broker regulated by a European regulator.

Spread betting is an alternative to CFD trading and is only available in the UK and Ireland. CFD trading and spread betting have some similarities in that they are both leveraged products that allow you to profit off the price movements of the same kind of financial products without owning the actual instruments however this is where the similarity ends.

When spread betting, you bet on how much you think a market will increase or decrease. You bet per point or pips how much the market will move from that point and the more it moves you win or lose a proportional amount. CFD trading is different, with this you buy a contract at the price matched the underlying instrument. You profit or lose when the price moves away from your purchased price.

Spread betting does offer some tax benefits over CFD trading. CFD trading is subject to capital gains taxed but unlike spread betting, you may be able to claim a tax loss if you lose. Of the UK-regulated brokers we discuss, our top stockbroker is eToro.

With over two thousand different stocks and share CFDs as well as free expert stock analysis, eToro is a great broker for trading shares. We use cookies to ensure you get the best experience on our website. By continuing to browse you accept our use of cookies. Best UK Forex Brokers Lowest Spread Forex Brokers Best UK Spread Betting Brokers Best ECN Brokers In UK FCA Regulated Brokers. Best CFD Trading Platforms In UK Best Forex Platforms For Beginners Best MT4 Brokers In UK Copy Trading Platforms Automated Trading Platform.

Pepperstone Review IG Markets Review FP Markets Review Swissquote Review FXCM Review Plus Review. Home » Trading » Best Forex Broker UK.

Best Forex Brokers In UK Forex trading in England and Wales requires an FCA regulated UK forex broker offering CFDs, currency pairs and forex trading platforms. Written by Justin Grossbard Written by Justin Grossbard Co Founder. Edited by Justin Hertzberg Edited by Justin Hertzberg Forest Park FX President.

Reviewed by Riley Adams Reviewed by Riley Adams Senior Trading Editor. Fact Checked We double-check broker fee details each month which is made possible through partner paid advertising. Learn more this here. Visit Site. Our Rating. Review Of Pepperstone. Review Of FXCM. Review Of eToro. Swissquote Review. CMC Markets Review. FCA UK. Raw Spread. Commissions USD Base. Minimum Deposit. Swap Free Account. No Inactivity Fees. Funding Methods. No Funding Fees. Currency Pairs.

Index CFDs. Share CFDs. Commodities CFD. Retail Max. Leverage The United Kingdom. MetaTrader 4 MT4. MetaTrader 5 MT5. Proprietary Platform. Automated Trading. Standard Stop Loss. Guaranteed Stop Loss. Demo Account. Pepperstone Is The Best FCA Regulated Forex Broker. Base Currency USD EUR AUD GBP. Total Fees. Visit Broker. Our Rating The overall rating is based on review by our experts.

Key strengths of FXCM include: Large range of forex pairs Choice of trading platforms Discounts for active traders Account Types And Platforms FXCM Account FXCM offers a choice of 2 types of trading accounts.

FXCM Standard Account The FXCM is the trading account most traders with FXCM will use since there is no minimum deposit to sign up. You can use any of the trading platforms on offer: Trading Station NinjaTrader MetaTrader 4 ZuluTrade All trading platforms support automation facilities and come with advanced backtesting capability. Final Verdict On FXCM Those looking to trade not just forex majors but also exotic currency pairs and rare Contracts for Difference should choose FXCM based on the large range of forex and CFDs available with the online broker.

Plus Has The Top Mobile Forex Trading Platform Plus is a market-maker forex broker that offers an intuitive trading platform with a range of useful risk management tools.

Key Strengths Of Plus include: Commission free trading Large range of trading products A Guaranteed Stop Loss Order Plus Trading Accounts Plus is a spread-only broker meaning they do not charge commission costs. Plus Trading Platform Plus has its own proprietary trading platform. One of the appeals of the Plus trading is its risk management tools.

Risk Management Tools Plus comes with a number of useful risk management tools to help protect you against losses, of particular note is their Guaranteed Stop Loss Order. Guaranteed Stop Loss Orders GSLO : For a small premium by widening the spread when you open your position, you can protect yourself from unexpected losses by using a GSLO. Price Alerts: As well as different order types and sentiment features, Plus offers clients excellent alert tools. Plus Products Except for cryptos which are banned for retail traders in the UK , Plus offers all the CFD products one should expect.

Final Verdict On Plus Plus is best for traders wanting access to a guaranteed stop loss or who want to be mobile when trading. eToro Is The Top UK CFD Broker For Social Trading eToro UK Ltd is unique as a forex brokers in the UK with its focus on social trading.

The broker earns its reputation as the best social broker for CFD trading with the following strengths: Best social trading network in the industry Excellent proprietary trading platforms CopyTrader and Smart Portfolios platforms The eToro Trading Accounts eToro is a market maker, so only offers one type of trading account.

Final Verdict On eToro Individuals who want to copy the trades of selected forex traders and like being part of a social trading community should choose eToro. FxPro Has The Best Forex Broker UK Customer Support Our best forex broker UK analysis found FxPro had one of the best range of markets including over 70 currency pairs with ultra-tight spreads in addition to Shares, Spot Metals, Spot Energies, Spot Indices, Shares and Futures. Key Strengths In the FxPro offering include: Choice of Variable and Fixed Spreads Choice of 4 trading platforms Specialist Spread Betting Platform FxPro Trading Accounts It is worthwhile making an effort to understand the types of accounts FxPro offer before signing up as there are differences between each account.

FxPro Trading Platforms In addition to MT4 and MT5 which are available with many brokers on this list , FxPro also offers cTrader and their own platform called FxPro Trading Platform.

Tax-Efficient Investments Many UK residents prefer a spread betting broker as profits are tax-free. CMC Markets Next Generation Trading Platform Has Good Risk Management Tools In addition to MetaTrader 4, CMC Markets also have its own trading platform called Next Generation. The platform also has a wealth of risk management tools Different order types include: Guaranteed stop-loss orders GSLOs Partially close trades Boundary orders Final Verdict On CMC Markets Traders who want to try Spread Betting should consider CMC Markets due to their large range of products and the Next Generation Trading Platform.

XTB Has The Most Advanced Demo Account XTB is a forex and CFD exchange-listed firm that is regulated by the FCA and accepts UK residents. Key Strengths of XTB: Large Range Of Trading Products Demo Account Education Tools XTB Trading Account XTB like many traders on this list offers commission-free forex trading for their products however they do advertise a lower minimum spread than their competitors being just 0.

When you open an XTB demo account a trader can access the full range of financial instruments. Educational Resources As well as the benefits of a demo account for both beginner and advanced traders, XTB offers a range of educational resources to gain confidence.

Final Verdict For XTB? Our Best Forex Broker UK For Beginners Is City Index City Index is the best UK forex broker for beginner forex traders based on their low spread only account.

Swissquote Is The Most Trusted Broker If you are after a broker with access to deep liquidity and fast execution along with an appealing range of trading platforms then Swissquotes is one broker you can trust to deliver. Swissquotes Strengths One impressive aspect about Swissquotes is their average execution speed.

Swissquote Trading Platforms Like any good broker, Swissquote allows offers a range of platforms to suit the needs of different traders. All platforms are available for desktop not Mac in the case of Advance Trader , web and mobile MetaTrader 4 and MetaTrader 5 are both excellent options and a good reason to select Swissquote but Advanced Trader is superior if you have specific or complex trading needs. Swissquote Trading Products Over 70 currency pairs are available for forex CFD trading with Swissquote.

Final Verdict On SwissQuote With exceptionally fast execution speed, an award-winning trading platform and an extensive array of range of financial instruments available to trade with, Swissquote is a safe choice as your broker. IG Broker UK Has A Good Trading Platform Range IG Markets is a market maker that provides one of the largest range of CFD products of all brokers and usually with no commission costs.

Key Strengths of IG One of the oldest and largest CFD brokers Large range of trading platforms to choose from DMA trading There are 4 trading platform options. Final Verdict On IG Markets Individuals who want to trade with the largest foreign exchange broker and have the choice of forex platform with the ability to switch should consider IG.

Key Strengths With Eightcap Competitive Spreads Top Range Of Trading Platforms Best Choice For Automations Most Competitive Spreads With ECN-Like Pricing Your spread cost is one of the most important factors to consider when choosing a broker given you pay a spread cost each time you open and close your trading position per , lots.

Account Summary Eightcap gives you two trading account options: Standard and Raw. ECN Broker Spreads. FAQs For UK Forex Brokers What is the best forex broker in the UK?

What are the top fx brokers for beginner traders? Which fx and CFD broker has the best spreads? com UK FCA £50 0. This ensures that you can get instant support on your question or concern without needing to pick up the telephone. With that said, we also came across providers that only offer support via email. The fundamentals of forex trading are that you exchange a specific amount of one fiat currency against another. On the other hand, you would stand to suffer losses if the exchange rate drops.

Forex CFD trading allows you to speculate on the market movements of the underlying asset while also using leverage to maximize your purchase power. Instead of settling a set amount of base currency, contracts for differences are settled in cash. Forex brokers come in all shapes and sizes.

They vary depending on what their FX quotations are based on. There are four main categories to choose from:. Each of these forex brokers has a different way of managing transactions and executing orders.

Details about the four key types of forex brokers and their features follow:. The No Dealing Desk NDD forex broker does not have a dealing desk, as the name suggests. Nonetheless, it offers diverse composite forex quotes sourced from various forex quote providers. These third-party companies give the No Dealing Desk broker its liquidity within the FX market. A majority of forex quote providers post their main markets with the No Dealing Desk forex platform.

The NDD broker will execute trades according to those forex quotes. No Dealing Desk forex brokers typically charge a commission or they broaden the market spread as a way to earn a profit for the service they provide. Market Makers or Dealing Desk forex brokers typically execute trades without trading in the underlying market. Market Makers offer a forex quote based on the underlying market prices, and then take the other side of the transaction by buying on their bid side or selling on their offer side.

Forex trading platforms that operate on an Electronic Communications Network, or ECN, usually do not have their own dealing desk. As a result, the ECN broker offers an electronic trading platform where advanced traders and expert market-makers at commercial banks can enter bids and offers. A key benefit of using an ECN is that the trader posting the price can maintain a level of anonymity.

This is ideal for investors who want to keep their trading strategies private. Straight-through processing brokers typically refers to the way forex trades are processed. The liquidity providers can be hedge funds, corporate banks, as well as investors. In other words, STP means that the forex broker acts as a seamless link between the trader and the underlying market, as opposed to a dealing desk that re-processes orders.

For day traders and other short-term forex trading strategies, you might want to research the range of supported currency pairs. This is because day trading , scalping , and spread betting , all try to capitalize on short-term price movements within a single trading day.

After reviewing several forex trading platforms in the UK, we found that eToro is advertised as a forex broker for beginners. For a platform review , covering fees and commissions to tradable assets and payment methods, read our full eToro review.

eToro facilitates commission-free forex trading. This is also a swap free forex broker. Opening an account is free and there are no mark-up, ticketing fees or stamp duty tax. Approaching the forex markets without any knowledge of the space is like trying to navigate a ship through a storm without a helm.

Beginner traders will therefore appreciate the free demo account and copy trading tools that eToro provides. Practice your trading strategies and broaden your knowledge of online investing with the eToro demo account. These practice accounts, or paper trading accounts, allow you to trade in a simulated, risk-free environment that mimics real market conditions.

Furthermore, eToro also offers several copy trading tools:. Visit eToro. Experienced forex traders are less reliant on automated trading features and demo accounts.

For an advanced investor, technical indicators and fully customizable charts are of more value than a copy trading tool — but which forex broker offers the right tools and features for advanced users? This is where MetaTrader 4 comes in. MT4 has been operating since and is among the industry-leading forex trading platforms in the UK. As well as forex, MetaTrader 4 can be used to participate in other markets such as commodities and indices through CFDs and spread betting.

MT4 is widely accepted for two main reasons. Secondly, it offers automated trading via algorithms to close and open positions based on pre-set criteria.

A popular forex broker for professionals is AvaTrade. This CFD and forex broker was launched in and is heavily regulated by financial authorities including ASIC and the Central Bank of Ireland.

To gain access to the MT4 trading platform, simply open a live trading account with AvaTrade and choose MetaTrader 4 as your preferred trading platform.

The minimum deposit is £ to gain exposure to the markets. Then download MT4 and log in using your AvaTrade credentials. Why should I use MT4 on AvaTrade? MT4 has several features that allow you to conduct advanced price analyses on all supported instruments.

These include a range of timeframes, interactive charts, as well as built-in technical indicators. The AvaTrade MT4 platform allows you to pinpoint the optimal prices to enter and exit your positions.

AvaTrade does not charge trading commissions, meaning the only trading fees you will encounter are the bid-ask spreads, and the overnight financing fee if you keep positions open after standard market hours transpire. For a more detailed look at the ins and outs of AvaTrade see our dedicated AvaTrade review. Visit a regulated UK Forex broker and open an account. This will require you to enter some personal details — such as your name and email address.

Your deposit limits will also be removed. You can now search for the forex pair that you wish to trade. The way to do this is to enter the specific pair into the search box at the top of the page.

You now need to select from a buy or sell order. Select the former if you think the exchange rate will increase and the latter if you think the opposite. With so many forex trading platforms in the UK to choose from, it can be challenging to know which one to go with. The main thing is that your chosen provider is one regulated by the FCA , supports your chosen pairs, and offers low fees and tight spreads.

It takes just 10 minutes to open an account at one of the various forex brokers in the UK that we reviewed. Yes, although forex trading in the UK is heavily regulated, it is perfectly legal to buy and sell currency pairs online.

Just make sure that your chosen forex platform is regulated by the FCA. After reviewing dozens of providers, we found that eToro has low fees. The platform not only offers tight spreads, but all tradable markets are commission-free. With more than 27 million clients as of Q1 - eToro is often the go-to forex trading platform for beginners.

The platform is particularly simple and getting started takes minutes. Well-established forex trading platforms in the UK are safe, as they will be regulated by the FCA. This ensures that you can buy and sell forex pairs in a safe and secure manner. If you want to trade forex with Paypal, eToro supports this e-wallet alongside Skrill and Neteller. eToro is known as a market leader in the growing social and copy trading scene.

The platform is home to more than , verified copy traders, many of which specialize in forex. The largest forex broker in the UK is eToro. This social trading platform gives you access to many forex pairs, as well as CFDs, fractional share trading, copy trading and more. Regulated brokers will display their FCA license, or make a reference to it on their homepage. For example, if you scroll to the bottom of the eToro.

com page you will see a comprehensive list of its financial regulators underneath the risk disclaimer. If it holds a license with the FCA it will appear in the search results along with the license number. Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain.

In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Kane has also written for websites such as MoneyCheck , InsideBitcoins , Blockonomi , Learnbonds , Buyshares and the Malta Association of Compliance Officers. Home » forex. Best Forex Trading Platform UK — Cheapest Platform Reviewed. Kane Pepi Pro Investor. Updated: 29 September In This Guide 1 UK Forex Trading Platforms List 2 UK Forex Brokers Reviewed — Compare Forex Trading Platforms 2.

XTB 2. Alvexo 2. Libertex 2. Skilling 2. AvaTrade 2.

Written by Steven Hatzakis Edited by John Bringans Fact-checked by Joey Shadeck. The ForexBrokers. com annual forex broker review six years running is the most cited in the industry. With over 50, words of research across the site, we spend hundreds of hours testing forex brokers each year. Here's how we test.

Trading forex currencies in the United Kingdom UK is popular among residents. Before any fx broker can accept UK forex and CFD traders as clients, they must become authorised by the Financial Conduct Authority FCA , which is the financial regulatory body in the UK. The FCA's website is FCA. We recommend UK residents also follow the FCA on twitter, TheFCA. The FCA was formed out of the Financial Services Act of , effectively replacing its predecessor, the Financial Services Authority FSA.

For a historical breakdown, here's a link to Financial Conduct Authority webpage on Wikipedia. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. To find the best forex brokers in the UK, we created a list of all FCA authorised brokers, then ranked brokers by their Overall ranking.

Compare UK authorised forex and CFDs brokers side by side using the forex broker comparison tool or the summary table below. This broker list is sorted by the firm's ForexBrokers. com Overall ranking. Check out our sister site, UK. com , for a detailed rundown on the very best trading platforms available for traders in the UK, and for a breakdown of the top mobile apps for UK stock trading.

To identify if a forex broker is licensed to operate in the United Kingdom UK , the first step is to identify the register number from the disclosure text at the bottom of the broker's UK homepage. For example, here's the key disclosure text from IG's website:. Both IG Markets Ltd Register number and IG Index Ltd Register number are authorised and regulated by the Financial Conduct Authority. Next, look up the firm on the FCA website to validate the register number is, in fact, legitimate.

Here is the official FCA page for IG Markets Limited. Was this helpful? Yes or No. For our Forex Broker Review we assessed, rated, and ranked 39 international forex brokers over a three-month time period resulting in over 50, words of published research.

Each broker was graded on different variables, including our proprietary Trust Score algorithm. This innovative scoring system ranks the level of trustworthiness for each broker based on factors such as licenses, regulation and corporate structure.

Read more about Trust Score here. As part of our annual review process, all brokers had the opportunity to provide updates and key milestones and complete an in-depth data profile, which we hand-checked for accuracy.

Ultimately, our rigorous data validation process yields an error rate of less than. Learn more about how we test. There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Read more on forex trading risks. Steven Hatzakis is the Global Director of Research for ForexBrokers. Steven previously served as an Editor for Finance Magnates, where he authored over 1, published articles about the online finance industry. A forex industry expert and an active fintech and crypto researcher, Steven advises blockchain companies at the board level and holds a Series III license in the U.

as a Commodity Trading Advisor CTA. John Bringans is the Senior Editor of ForexBrokers. An experienced media professional, John has close to a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets.

Joey Shadeck is the Content Strategist and Research Analyst for ForexBrokers. He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years. An industry veteran, Joey obtains and verifies data, conducts research, and analyzes and validates our content. com is committed to the highest ethical standards and reviews services independently. Learn How We Make Money. Home Forex Guides Directory. October 05, Submit Details.

Steven Hatzakis Steven Hatzakis is the Global Director of Research for ForexBrokers. John Bringans John Bringans is the Senior Editor of ForexBrokers. Joey Shadeck Joey Shadeck is the Content Strategist and Research Analyst for ForexBrokers.

Given the spreads are 0. Pepperstone has local offices in London, United Kingdom and trades in the UK as Pepperstone Limited under Financial Conduct Authority FCA Registration Number Forex brokers come in all shapes and sizes. The broker provides comprehensive market access to a range of asset classes, including Forex, Indices, Stocks and ETFs. As a bonus, eToro also includes free stock analysis from a team of experts. City Index is the best UK forex broker for beginner forex traders based on their low spread only account.

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