Are you wondering how to pick the right forex broker in the UK, or what key features to look for? Choosing a CFD broker regulated by the Financial Conduct Authority (FCA) can make all the difference, offering a layer of trust and regulatory assurance.
Our 2024 guide for the UK ranks the top 10 FCA-regulated forex brokers, highlighting those who offer the lowest spreads, best trading platforms, and high quality customer support, among other key features.
1. Pepperstone - Best Forex Broker in the UK
Established in 2010 and headquartered in Australia, Pepperstone has grown into the leading player in the forex market, popular for its competitive spreads and diverse trading platform offerings. With a focus on providing traders with low-cost trading options and fast execution speeds, the FCA regulated broker takes the number one spot overall for UK forex traders.
Competitive Trading Conditions and Pricing
Pepperstone stands out for its low trading costs and efficient execution model. Using a no dealing desk (NDD) order execution model, trades go straight to the market, avoiding delays and re-quotes, giving you the best prices with minimal slippage.
Thanks to its strong connections with top liquidity providers, Pepperstone offers great trading conditions. It brings together prices from various sources, ensuring competitive spreads and plenty of liquidity. This setup is ideal for traders who need quick and accurate execution, like scalpers and those using automated trading systems.
As a Pepperstone trader you can choose between two main account types: the Standard Account, perfect for beginners with no commission fees, and the Razor Account for experienced traders who want tight spreads starting from 0.0 pips plus commission fees.
Other Features
In addition to competitive spreads and execution, Pepperstone provides access to a wide range of trading platforms, including MT4, MT5, cTrader, TradingView, Capitalise.ai, in addition to a newly released proprietary trading app. The broker's award-winning customer support and extensive forex range of over 60 currency pairs, alongside CFDs on shares, indices, ETFs, and commodities, further enhance its appeal.
Furthermore, the CFD broker supports various deposit and withdrawal methods, with zero fees on most transactions, reducing trading costs even further.
Pros of Pepperstone
Cons of Pepperstone
Which type of forex trader does Pepperstone suit? Pepperstone is best suited for traders looking for competitive spreads, a variety of online trading platforms, and excellent customer service, catering to both beginners and experienced traders.
Verdict on Pepperstone
Pepperstone's combination of low trading fees, comprehensive platform options, and exceptional customer support establishes it as the top choice for UK forex traders seeking a reliable and cost-effective trading experience.
2. OANDA - Best Forex Broker for Beginners
Founded in 1996 in the USA, OANDA is one of the early pioneers in the online forex brokerage industry. Its commitment to providing straightforward trading experiences, strong educational resources, and low commission-free spreads makes it an ideal platform for beginners.
Ideal for New Traders
OANDA stands as a top choice for beginners due to its user-friendly platforms, including OANDA Trade and the widely popular MetaTrader 4, and extensive educational resources. The broker's approach to online trading is designed to support those new to the market with easy-to-understand pricing and risk management tools.
OANDA’s trading platforms come equipped with helpful tutorials and the option for demo accounts, allowing new traders to practise without the high risk involved with forex markets.
Other Features
In addition to its beginner-friendly services, OANDA offers competitive spreads with its spread only account, starting at 0.6 pips. The broker’s proprietary and third-party trading platforms enable seamless trading experiences, while its award-winning customer service provides 24/7 support.
The online broker's commitment to technology and innovation is evident in its offering of fractional pips for tighter spreads and precise orders, enhancing trading efficiency and accuracy.
Pros of OANDA
Cons of OANDA
Which type of forex trader does OANDA suit? OANDA is particularly suited to beginners and those new to currency trading, thanks to its straightforward platforms, wealth of educational content, and supportive customer service.
Verdict on OANDA
OANDA's blend of accessible trading platforms, educational resources, and supportive customer care makes it an excellent starting point for beginners in forex trading. With competitive spreads and education, OANDA provides a reliable and user-friendly trading environment.
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3. eToro - Popular Copy Trading Broker
eToro, established in 2007 in Israel, has grown to become a leading name in the forex world known for its pioneering approach to social and copy trading. With a vibrant community that spans over 140 countries and over 30 million users, eToro offers a platform not just for trading but for learning and sharing with others.
Social and Copy Trading Tools
At the heart of eToro's offerings is its social trading feature, which allows traders to copy the trades of experienced investors through the CopyTrader and CopyPortfolio features. Whether you are low on time or new to forex markets, eToro’s copy trading concept allows you to effortlessly mimic the trading strategies of more experienced users within the social network, providing a straightforward pathway to market participation.
Through eToro's platform, users can utilise advanced filters to search for and identify traders to copy according to various metrics such as performance history and risk appetite, simplifying the decision-making process for you!
Other Features
Beyond social trading, eToro offers a comprehensive trading experience with a wide range of financial instruments, including forex, stocks, ETFs, and more. The platform is user-friendly and designed with new traders in mind, with features like a customisable watchlist and the ability to set alerts for market events.
eToro's commitment to innovation is evident in its continuous updates and the addition of new features, like the ability to share trading strategies and insights on social media directly from the platform.
Pros of eToro
Cons of eToro
Which type of forex trader does eToro suit? eToro is particularly well-suited for beginners and those interested in leveraging the knowledge of successful traders through social and copy trading. It also caters to traders looking for a vibrant community to exchange ideas and strategies.
Verdict on eToro
eToro revolutionises the trading experience by integrating social elements with traditional trading, making it an excellent choice for those new to the market or looking to engage with a community of traders.
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4. Plus500 - User-Friendly Forex Trading App
Plus500 stands out in the UK forex market for its user-friendly trading app, making it an ideal choice for traders who prefer a straightforward and efficient trading experience. Established in 2008 and headquartered in Israel, Plus500 has grown to become a global presence, offering a wide range of financial instruments including forex, shares, and commodities,
User-Friendly Forex Trading App
The hallmark of Plus500 is its proprietary trading platform, designed with simplicity and ease of use in mind. The platform caters to beginner traders requiring basic features, providing a seamless trading experience across web, desktop, and mobile apps. The Plus500 app is particularly popular among beginners for its intuitive design, allowing you to manage your accounts, execute trades, and access real-time market data from anywhere, at any time.
Other Features
Plus500 has higher spreads starting from 1.9 pips, but supports a diverse portfolio of over 2,000 trading instruments, including forex pairs, indices, and commodities. Additionally, Plus500's platform includes risk management tools like stop losses and price alerts to help traders make informed decisions.
Pros of Plus500
Cons of Plus500
Which Type of Forex Trader Does Plus500 Suit? Plus500 is best suited for traders seeking a straightforward, no-frills trading experience with access to a wide range of financial instruments. Its user-friendly platform makes it ideal for beginners, while the comprehensive trading tools and features can meet the needs of more experienced traders looking for efficient execution.
Verdict on Plus500
Plus500's commitment to providing a user-friendly trading app combined with a wide range of trading instruments and strong risk management tools makes it a compelling choice for UK forex traders. While its spreads are higher and it may lack in-depth educational resources, the mobile apps simplicity and ease of use offer a valuable trading environment for new traders.
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5. Eightcap - Good TradingView Forex Broker
Eightcap stands out as one of the best TradingView forex brokers, with a strong emphasis on integrating advanced charting and trading tools for its UK clients. Founded in 2009 and headquartered in Melbourne, Australia, Eightcap has rapidly expanded its global footprint, and is seen as a strong choice for if you are seeking a solid TradingView forex broker.
TradingView Integration
The key highlight of Eightcap's offering is its seamless integration with TradingView, a leading financial visualisation platform. This collaboration enables traders to access comprehensive charting tools, real-time data, and a vibrant community of traders directly through Eightcap.
The integration facilitates an enriched trading experience, allowing users to analyse markets, execute trades, and share insights within a single interface.
Other Features
Eightcap distinguishes itself through competitive spreads, starting from 0.0 pips on its Raw account, and a wide array of over 250 financial instruments including CFDs on forex pairs, commodities, indices, and shares. The online broker also supports both MetaTrader 4 and MetaTrader 5 platforms, catering to a wide range of trading preferences and strategies.
Pros of Eightcap
Cons of Eightcap
Which Type of Forex Trader Does Eightcap Suit? Eightcap is ideally suited for traders who prioritise advanced charting capabilities and community interaction, offered through its TradingView integration. The broker's competitive pricing and wide range of tradable assets make it a fitting choice if you are seeking a broker compatible with TradingView.
Verdict on Eightcap
Eightcap's integration with TradingView, coupled with its competitive trading conditions and regulatory assurances, positions it as a top choice for UK forex traders. While the broker could enhance its educational offerings, its core strengths in technology and pricing offer a solid foundation for trading success.
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6. IG Group - Best Forex Trading Platforms
IG Group, founded in 1974 in London, offers a top range of trading platforms and is considered the largest forex broker worldwide. Known for its comprehensive range of markets, including forex, CFDs, shares, and spread betting for UK clients, IG provides traders with solid trading solutions complemented by competitive spreads.
The Best Forex Trading Platforms
At the forefront of IG Group's offerings is its selection of trading platforms, designed to cater to various trader needs. IG’s proprietary platform is highly regarded for its user-friendly interface, advanced charting tools, and integrated news and market analysis. Additionally, IG offers access to third-party platforms such as MetaTrader 4 and ProRealTime for CFD trading, ensuring traders have the flexibility to choose the platform that best suits their trading style.
Other Features
Beyond its platform diversity, IG Group is popular thanks to its $0 minimum deposit requirement, making it accessible to traders of all levels. The broker also provides direct market access (DMA) options for advanced traders looking for professional-grade execution and deeper liquidity.
With over 17,000 financial instruments available, IG’s offering is among the most extensive in the industry, including a wide range of forex pairs, indices, stocks, commodities, and other more unique financial markets like Digital 100s and Knock Out Options.
Pros of IG Group
Cons of IG Group
Which Type of Forex Trader Does IG Group Suit?
IG Group is well-suited for both novice and experienced traders. Beginners will appreciate the educational resources and user-friendly nature of IG’s proprietary platform, while seasoned traders can leverage the advanced features and tools available through platforms like MT4 and ProRealTime.
Verdict on IG Group
IG Group’s commitment to offering a diverse selection of trading platforms, coupled with its extensive range of financial instruments and zero minimum deposit, is a top choice for traders looking for a reliable UK forex broker.
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7. CMC Markets - Diverse CFDs and Currency Pairs
Founded in 1989 in London, CMC Markets is a popular UK forex broker which offers an extensive selection of over 9,500 products. These span across forex, indices, and shares, as well as other financial markets.
Diverse Trading Offerings
CMC Markets is famous for its vast array of trading products, making it an ideal choice for traders seeking variety and depth in their trading portfolio. With over 9,500 trading instruments available, traders can access a broad spectrum of markets, including forex, shares, indices, ETFs, rates and bonds, share baskets, and commodities. This diversity, coupled with competitive spreads and margin rates, positions CMC Markets as a versatile trading destination.
Other Features
Another key feature of CMC Markets includes its trading platforms. Traders can choose between the popular MetaTrader 4 platform, known for its reliability and extensive range of features, and CMC’s Next Generation platform, which includes advanced charting tools, automated trading capabilities, and a user-friendly interface. Additionally, the broker charges $0 withdrawal fees and requires a $0 minimum deposit from traders to get started.
Pros of CMC Markets
Cons of CMC Markets
Which Type of Forex Trader Does CMC Markets Suit? CMC Markets is ideal for immediate traders. With a wide range of products, access to advanced platforms like MetaTrader 4 and the Next Generation platform, and extensive educational resources, CMC Markets caters to those who have a good grasp of trading fundamentals and are looking to delve deeper into financial markets.
Verdict on CMC Markets CMC Markets combines a comprehensive trading offer with advanced platforms and competitive costs, making it a leading choice for traders looking for depth, variety, and value.
8. XTB - Great Demo Account for UK Forex Traders
XTB, established in 2002 with its headquarters in London, UK, offers a comprehensive and user-friendly trading environment. Demo accounts are available for all trading platform options, with a generous virtual balance and extendable time limit.
Demo Accounts for Practice and Learning
XTB offers great demo accounts for both MetaTrader 4 and xStation, allowing UK forex traders to thoroughly acquaint themselves with the trading platforms risk-free. The demo accounts mirror the functionalities of a real trading account, providing access to $100,000 in virtual funds, alongside real account features such as indicators, data, and charts.
Furthermore, having a demo account grants access to market analyses from XTB's team of analysts and an 'Education' tab in xStation5, offering practical platform usage tutorials, market functioning insights, and analytical methods. This demo account becomes inactive after 30 days, but its validity can be extended.
Other Features
Beyond its demo account, XTB offers a variety of other impressive features. These include competitive spreads starting from 0.28 pips plus commission for the EUR/USD on the Pro account along with no withdrawal fees to keep trading costs low. The broker also provides sophisticated educational materials, including webinars, e-books, and articles.
Pros of XTB
Cons of XTB
Which Type of Forex Trader Does XTB Suit? XTB is particularly well-suited for beginners and intermediate traders due to its user-friendly platforms, extensive educational content, and high quality demo accounts.
Verdict on XTB
XTB establishes itself as a reliable and accessible broker for UK forex traders, offering a rich array of educational resources and a solid demo account. While it offers competitive spreads and a broad product range, traders seeking more specialised account options may find limitations.
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9. City Index - No Minimum Deposit for Forex Trading
City Index, established itself as a formidable presence in the forex market since its inception in 1983. Known for its no-minimum deposit requirement, this feature significantly lowers the barrier for new traders to enter the CFD trading space, encouraging a broader spectrum of traders to engage with forex markets.
No Minimum Deposit for Forex Trading
A major perk of City Index is the absence of a minimum deposit requirement, allowing traders to start trading with whatever capital they are comfortable with. This flexibility is particularly appealing to beginners who may wish to start small and gradually increase their investment as they gain more confidence and experience in trading.
Other Features
City Index impresses with its diverse range of over 12,000 markets, including forex, shares, and indices. Additionally, the broker offers competitive spreads and access to both its proprietary platform and MetaTrader 4, with strong educational resources and customer support to further enhance the trading experience.
Pros of City Index
Cons of City Index
Which Type of Forex Trader Does City Index Suit? City Index is well-suited for both beginners. Beginners will particularly benefit from the low entry threshold due to no minimum deposit requirement and the wealth of educational resources.
Verdict on City Index
City Index offers flexibility with no minimum deposit requirement, along with an extensive selection of trading instruments and educational resources.
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10. FxPro - Top Online Broker for Spread Betting
FxPro is a popular spread betting broker, known for its wide range of products and trading platforms. Established in 2006 and headquartered in the UK, FxPro offers the FxPro Edge platform for spread betting, as well as MetaTrader 4, MetaTrader 5, and cTrader for CFD trading.
Top Online Broker for Spread Betting
The online broker provides its spread betting services via its proprietary trading platform, FxPro Edge. Exclusively available to UK traders, where spread betting is tax-exempt, the online platform offers a customisable, user-friendly interface allowing traders to engage in spread betting across forex, indices, shares, and commodities.
Other Features
The broker's adoption of no dealing desk execution for ECN style trading guarantees transparency and fairness in pricing. Additionally, FxPro's dynamic leverage model allows traders to maximise their potential returns responsibly, while its extensive educational resources and award-winning customer service ensure traders are well-supported.
Pros of FxPro
Cons of FxPro
Which Type of Forex Trader Does FxPro Suit? FxPro is ideally suited for UK traders looking for a strong spread betting platform. The broker's range of platforms and fast execution speeds also make it a strong choice for CFD traders seeking a versatile trading environment.
Verdict on FxPro
FxPro sets a high standard with a superior spread betting platform with FxPro Edge, complemented by a wide selection of financial markets.
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Full List of FCA Regulated Forex Brokers in the UK
💡FAQ: The Best Forex Brokers UK
What is the best forex broker UK?
Pepperstone is the top forex broker in the UK for traders seeking competitive spreads, a variety of trading platforms, and excellent customer service. While OANDA is highly recommended for beginners due to its user-friendly platforms and extensive educational resources, Pepperstone's low trading fees, comprehensive platform options, and exceptional support establish it as the top choice for UK forex traders of all levels looking for a reliable and cost-effective broker.
What is the best UK forex broker?
IG Group and CMC Markets are known as the best UK forex brokers overall. IG Group, with its comprehensive trading platforms, appeals to a broader audience, offering access to a wide array of markets and tools. On the other hand, CMC Markets, known for its diverse CFDs and currency pairs, offers competitive spreads and a vast range of trading products, making it a strong contender for UK traders seeking diverse market access.
What is the best forex trading app in the UK?
The best forex trading app in the UK is Pepperstone's proprietary app, considered top overall for its user-friendly interface and comprehensive features. Plus500 follows closely, celebrated for its intuitive design that simplifies trading for users of all experience levels. IG Group's platforms also rank highly, offering strong analytical tools and a wide range of financial instruments.
Is forex trading legal in the UK?
Yes, forex trading is legal in the UK via both CFD trading and spread betting, and is regulated by the Financial Conduct Authority (FCA). The FCA's stringent regulations provide both retail investor accounts and professional traders with a secure and transparent trading environment.
However, it's important to note that while forex trading is legal, trading cryptocurrencies as spread bets or CFDs is not permitted in the UK, reflecting the FCA's approach to safeguarding investors from the high risks associated with volatility in crypto markets.
What protection does FCA provide to traders?
The Financial Conduct Authority (FCA) provides traders with multiple protections, including leverage caps to limit exposure, negative balance protection to prevent clients from losing more than their deposit, stringent measures against scams, and investor insurance schemes via the Financial Services Compensation Scheme (FSCS) to safeguard investments.
These foreign exchange trading rules are designed to ensure fair and transparent conditions, enhance market integrity, and protect investors from undue risks, fostering a safer trading environment for all participants in the UK financial markets.
If you are outside of the UK, look for brokers regulated in your local jurisdiction, such as ASIC in Australia or CySEC in Europe.
Is forex trading taxed in the UK?
In the UK, forex trading tax implications vary depending on whether you're trading forex through CFDs (Contracts for Difference) or spread betting. Profits from CFD trading are subject to Capital Gains Tax, as CFDs are considered investments.
However, spread betting is categorised as gambling under current UK law, meaning any profits are tax-free. It's crucial for traders to understand these distinctions and consider their trading strategy's tax implications, potentially influencing the choice between CFD trading and spread betting.
Are CFDs the same as spread betting?
No, CFDs (Contracts for Difference) and spread betting are not the same, although they share similarities in allowing traders to speculate on price movements without owning the underlying asset. CFD trading involves buying contracts that mirror asset prices, with profits or losses determined by the difference in price from when the contract was opened to when it's closed, and is subject to Capital Gains Tax. Spread betting, conversely, is a form of gambling on the price direction of an asset, with profits being tax-free in the UK.
Why do forex traders want low spreads?
Forex traders seek low spreads to minimise their trading costs, increasing the profitability of their trades. Low spreads mean less difference between the bid and ask prices, reducing the amount traders pay to enter and exit trades.
In commission-based accounts, traders pay a fixed fee per trade but benefit from tighter spreads, whereas no-commission accounts incorporate the cost into wider spreads. Lower spreads are especially crucial for high-volume traders and those employing short-term strategies, like scalping, where every pip counts towards overall success.
What are the major currency pairs?
The major currency pairs in forex trading are EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD, and NZD/USD. These pairs are the most traded globally, reflecting the world's largest economies. They are known for their liquidity, tight spreads, and significant volume, making them popular choices among traders.
The Euro, Japanese Yen, British Pound, Swiss Franc, Australian Dollar, Canadian Dollar, and New Zealand Dollar against the US Dollar form these key pairs, often influencing global currency markets.
How do I get into forex trading UK?
To get into forex trading in the UK, start by choosing a reputable broker regulated by the Financial Conduct Authority (FCA) to ensure safety and trust. Next, open a trading account, which typically involves identification verification and completing a knowledge assessment.
Many CFD brokers offer demo accounts that can be used before you start live trading, allowing you to practise forex trading strategies without risking real money. Additionally, consider using educational resources and tools provided by brokers or third-party platforms to build your trading knowledge and skills before investing real funds.
Disclaimer: This information is provided for educational purposes only and is not intended as financial advice.
