The selection of a good forex broker is essential for profitable trading. Unfortunately, finding the best forex brokers in the UK could be a headache. In this piece, I’ll share a list of the most popular brokers in the UK. I’ll briefly discuss some main features, uncovering the pros and cons of each broker. Lastly, I’ll share some critical factors that you should consider before signing up with a broker.
Read: Forex Trading in the UK
Best Forex Brokers in the UK
#1 Plus500
Plus500 is an international forex broker offering trading services in multiple asset classes including, Forex, CFDs, cryptocurrencies. The UK based broker complies with the FCA regulation. With the flexibility of on the go trading, the company offers a mobile-supported online trading interface. Powered with the latest trading tools, Plus500 offers a range of educational resources as well as a demo account to help clients improve their trading skills. The advanced charting options and risk management tools increase your chances of success at Plus500 forex broker.
Thanks to multiple deposit and withdrawal options available at Plus500, you might enjoy greater flexibility of payments. Other features include tight spreads, commission-free trades, and lightning-fast trade execution. Plus500 offers customer support in 32 languages for five days a week. Funds protection through segregated bank accounts and SSL web encryption security protocols makes the company one of the best forex brokers in the UK.
Read: Plus500 Review
| PROS | CONS |
| Offers Risk Management Tools FCA Regulated Commission Free Trading Tight Spreads Protected under FSCS (Financial Service Compensation Scheme) | US Clients not accepted Variable Spreads Limited research tools No Live-Chat Customer Support |
#2 VantageFX
Founded in 2009, VantageFX is an Australian forex broker that provides regulated trading services under the brand name of the Vantage International Group. With spreads starting from 0.0 pips, and a minimum deposit of $200, VantageFX is a strong competitor for its rivals. Offering the industry’s most advanced trading platforms (Mt4, Mt5), VantageFX stands out of the crowd. Regulated by CIMA and ASIC, the broker offers multiple educational resources and hosts a 10% forex rebate program. In addition, the broker also offers a 50% welcome bonus to new customers.
With free forex tools and generous leverage (500:1), VantageFX offers four types of trading accounts. Social trading platforms such as MyFXBook Autotrade, DupliTrade, and ZuluTrade also support VantageFX.
Read: VantageFX Review
| PROS | CONS |
| Low Charges/Fees Quick Account Opening Process Multiple Deposit & Withdrawal Options STP/ECN Trade ExecutionSegregated Bank Accounts Funds are held with AAA rating banks | Limited Leverage for EU Clients Offers floating spreads Does not accept US Clients Does not offer Investor Funds Protection |
#3 FXCM
Forex Capital Market is a US-based online brokerage firm. The company offers regulated trading in forex, Indices, CFDs, shares, commodities, and cryptocurrencies. With high liquidity, traders can take advantage of low spreads at FXCM. Incorporated in 1999, FXCM is one of the pioneer brokers in the forex trading industry. The broker offers leverage upto 400:1. Considering the need for mobility, the broker allows you to access the FXCM trading station on your mobile phone. The broker holds regulations from the Financial Conduct Authority (FCA) in the United Kingdom.
FXCM has a rich collection of educational materials, including articles and video tutorials. To facilitate traders practicing the latest trading strategies, the company allows opening a free practice account in multiple currencies. In addition to algorithmic trading, the broker offers social trading services through state-of-the-art platforms such as Ninja Trader and ZuluTrade.
Read: FXCM Review
| PROS | CONS |
| Asks for Low Minimum Deposits User-Friendly Trading Interface Offers Social Trading Services Variety of Research Tools Rich Educational Resources | Limited Trading Instruments High Withdrawal Charges Weak Security Protocols Average Customer Support |
#4 FP Markets
FP Markets is a global CFD and Forex broker that offers a complete trading solution under one roof. The broker started its operations in 2005 with a headquarter located in Sydney. Ranging from its low-cost spreads to its advanced trading platforms, you enjoy every bit of trading with FP Markets. Raw pricing model and unrestricted scalping techniques takes traders to the next level of trading. Real-time trading with the Iress trading accounts helps you stay ahead of the market. Other features offered by the FP Markets include auto chartist tools, VPS service, and PAMM/MAM accounts.
FP Markets asks for a low deposit of $100 only for its standard and raw accounts. However, the minimum deposit for the Iress account starts from 1000 USD. Multiple deposit and withdrawal options with efficient customer support make the FP Markets one of the best brokers in the UK.
Read: FP Markets Review
| PROS | CONS |
| Relatively Low Trading fees Hassle-free Account Opening Process Doesn’t charge an Inactivity fee Offers few Trading Platform Wide range of Tradable Instruments | Does not offer Fixed Spreads Does not Accept US Clients Slow Customer Support Offers Limited Leverage to European Clients |
#5 City Index UK
Established in 1983, CityIndex is one of the pioneer brokers in CFDs and Forex trading. The company has its main office in London. With over 35 years of experience, CityIndex offers the most reliable trading platforms powered with instant trade execution. The FCA regulated broker is a subsidiary of StoneX Group Inc. CityIndex has a competitive pricing model for stock trading as well as spread betting across more than 12000 financial instruments. Risk management tools and tax-efficient crypto trading allows you to enjoy higher liquidity levels at CityIndex. Advanced trading tools such as charting options, forex signals, and economic calendar help you to use leverage options with full confidence.
CityIndex offers commission-free trading for both fixed and variable spread betting. Guaranteed stop loss and rollover discounts for future trading along with the availability of customer support round the clock are some other commendable features of the broker. The broker keeps client funds in segregated bank accounts that are maintained with AAA rating banks, ensuring the maximum security of your funds.
Read: City Index Review
| PROS | CONS |
| FCA RegulationLow Deposit Requirements Offers Negative Balance Protection Advanced Trading Platforms Forex Signals | Offers Variable Spreads Limited Deposit & Withdrawal Methods Does Not Accept US Clients Does Not Support Scalping |
How Did I Select the Above Forex Brokers?
Being a forex trader for almost a decade, I’ve tried countless brokers during my trading career. Honestly, I have found only a few of them to be legitimate and trustworthy. Based on my trading experience and the services I received, the above-listed forex brokers could secure a position in the list of my favorite brokers. Factors that I considered for making the above-listed brokers a part of my favorite brokers’ list include;
- Regulations
- Security
- Trading platforms
- Minimum Deposit
- Fee Structure
- Customer Support
All of the listed brokers accept clients from the UK and offer the most reliable services across the United Kingdom.
Financial Conduct Authority – FCA
In Great Britain, the Financial Conduct Authority (FCA) acts as the main regulatory body for forex brokers. Founded in 2013, the FCA oversees all the companies that involve financial transactions. Working with the Bank of England (BOE), the FCA ensures that all active brokers follow the best practices and abide by the SOPs, acting in the best interest of people.
The FCA reserves the right to revoke any company or broker’s license for ignoring the specific operational guidelines of the regulatory body. The broker might also need to pay a penalty for breaching the code of conduct.
Read: FCA Regulated Forex Brokers
Factors to Consider When Choosing a Forex Brokers
Since the market is crowded with brokers, selecting the best one could be a challenging task. Let me share some factors that you should consider before choosing a forex broker.
Regulation
Regulation holds dire importance when it comes to choosing a forex broker. With a trading account opened with a regulated broker, you are under the protection of the Financial Services Compensation Scheme in the UK. Regulation of a broker protects both your financial and personal rights. On the other hand, a non-regulated broker offers no security to your funds.
Security
Signing up with a broker involves the sharing of both personal and financial data. Before you sign up with a broker, always check if it has enough security protocols in place. Brokers with two steps authentication processes for identity verification are safer as compared to other brokers. Confirm if your prospective broker offers the same.
Trading Platforms
You might find brokers offering easy-to-use trading platforms more appealing. However, the simplicity of the trading interface should not be the only reason for you to sign up with the broker. You must also assess if the trading platform has all the basic and advanced level trading tools to help you maximize the chances of your success. It should also have a mobile supported version of the trading platform so you could use it on the go.
Trade Order Execution
Timely trade execution is crucial for you to remain profitable. Some brokers might try to exploit your profits. One such example is dealing desk brokers. Dealing desks usually offer intuitive customer friendly trading platforms, but they never let your order reach the market without interruption. They make profits when you lose. Therefore, always go for a non-dealing desk broker.
Account Types
Most of the time, brokers offer multiple account types, including Micro, Standard, and VIP accounts. These accounts are usually classified based on the minimum deposit requirement. Always select the account type that suits your needs. You might wish to look for deposit requirements, also checking if the broker allows you to place mini trades in your account might help you to decide whether or not you should sign up with the broker.
Customer Support
You may need to talk to customer support staff concerning any issue that you face after signing with a broker. Efficient customer support means that you have arrived at the right destination. Poor customer support tells much about the other affairs of the broker that you could expect meanwhile. Therefore, avoid signing up with such a broker.
Deposits & Withdrawals
Your prospective broker should have multiple deposit and withdrawal options. Also, it must not have any conditions that you need to fulfill before you could withdraw your funds. Often brokers make you agree to such restrictions at the time of registration. Therefore, always double-check the terms and conditions before signing-up with any broker.
Verdict
After a careful review of various factors and services offered by the above-mentioned brokers, I hereby conclude that Plus500 is one of the best forex brokers in the UK. Being well established, Plus500 offers all the services necessary for successful forex trading. The FCA regulation, advanced risk management technique, and instant trade execution are some main features of the broker. Plus500 also offers efficient customer support round the clock in multiple languages.
