10 Best Forex Brokers in the UK • Benzinga

The UK is a hub for forex trading and London has the highest foreign exchange trading volume globally, making it a popular choice for those seeking a forex broker in the UK.

Many reputable brokers offer competitive services with varying features and benefits. It’s important to verify the regulation of any UK forex broker by checking its registration number on the Financial Conduct Authority (FCA) website before making a decision.

In this article, Benzinga reviewed the top forex brokers in the UK, highlighting their key features, benefits and regulatory status to help you choose a broker that fits your needs.

Quick Look: Best Forex Brokers in the UK

Best Forex Brokers in the UK

It’s crucial to work with a broker that is not only regulated with a high quality trading platform, but a broker you can trust to keep your funds safe. Take a look at some of the the best brokers in the UK you can feel confident trading with.

1. Best for Dedicated Forex Traders: FOREX.com

FOREX.com is regulated by several jurisdictions, including the U.K., U.S., and Japan, which ensures that the company’s business activities are well-monitored, a plus for traders of any level.

With more than just forex trades on tap, Forex.com also offers traders opportunities to trade key indexes or even cryptocurrencies.

An expansive learning center, packed with educational information, coupled with three trading platforms ranging from advanced to mobile, makes FOREX.com a solid choice for traders of any level of expertise.

Tight spreads help reduce trading costs while 24-hour live support ensures that questions or issues can be quickly resolved.

2. Best for Lighting Fast Execution Speed: Blackbull Markets

BlackBull Markets is a fast-growing trading broker founded in 2014. With its headquarters in New Zealand and regulation from the FMA and FSA, it offers a wide range of trading options, making it popular among traders interested in forex, indices, commodities, energies, metals and CFDs.

BlackBull Markets’ global expansion and strong reputation further establish it as a trusted and reliable choice in the trading industry. The broker is licensed with tier-1 regulators and offers traders negative balance protection. Each trader has a dedicated account manager and can expect round-the-clock support.

3. Best for Low Forex Fees: Axi

Formerly known as AxiTrader, Axi allows you to trade CFDs in a safe environment, even going so far as offering a demo account that allows you to work with $50,000 in virtual currency. The platform works off MetaTrader 4 and offers copy trading, excellent educational tools and AI and machine learning tools that learn from you to help you make better trades.

With Axi you can trade a number of different assets including forex, CFDs, precious metals, oil, commodities and cryptocurrency. With access to more than 40 currency pairs, leverage trading, more than 30 indices and over 30 leading cryptocurrencies. Fee are competitive with low trading fees, $10 monthly maintenance fee for inactive accounts and no deposit or withdrawal fees. Axi is regulated by the FCA the ASIC.

4. Best for High Trust Scores: IG Markets

IG Markets offers various trading options and powerful platforms. You can use MT4 or the proprietary platform IG Group created for its customers. They offer low spreads on your investments, and the minimum deposit is only $250. The demo account option allows you to practice your forex trading strategy and you can reach their customer service team 24/5.

When you place orders, you can set your bracket and limit orders any way you like. The site makes it easy for you to protect yourself, especially when investing in volatile assets. IG Markets is truly a global brand, offering multilingual support and the broker is regulated by the UK’s FCA.

5. Best for CFD Trading: City Index

City Index is a leading provider of online trading services, specializing in Contract for Difference (CFDs), forex and spread betting. With over 35 years of experience, City Index offers a wide range of tradable assets to cater to the needs of both individual and institutional traders. Spread betting is their most popular way to trade forex. You’ll have access to markets 24 hours a day on 80+ forex currency pairs.

City Index has offices in the U.K., Australia, and Singapore. The broker is part of the Nasdaq listed StoneX Group and is regulated by the FCA in the UK, the ASIC and MAS.

6. Best for Excellent Trading Conditions: FxPro

FxPro is a reputable forex broker that offers a diverse range of products and services to traders. Founded in 2006, their extensive experience in the industry has built a strong reputation for providing reliable and trustworthy services.

They offer a wide variety of assets including forex, commodities, indices, shares and cryptocurrencies. FxPro also stands out with their selection of trading platforms. They offer a choice of several platforms including MetaTrader 4, MetaTrader 5 and cTrader. This gives traders the flexibility to choose the platform that best suits their needs and preferences.

7. Best for Copy Trading: eToro

eToro is a multi-asset, global forex broker that has established itself as one of the leaders in the industry. Based in Cyprus and regulated by the FCA, eToro offers traders in the UK an impressive range of products and services to choose from. Its standout feature, copy-trading, allows users to reproduce the trades of other investors on the platform.

The company’s philosophy is to make trading accessible to everyone, regardless of experience or financial background. It offers a range of trading services, including a comprehensive selection of forex pairs and CFDs, as well as an excellent social trading platform.

8. Best for Low Spreads: FXCC

FXCC is an international broker offering support for forex and CFD investors since 2010. They offer 70 currency pairs and 8 popular trading assets including forex, cryptocurrencies, spot palladium, gold and silver. You can even invest in Brent and WTI oil.

In addition to the expansive list of trading options, you also have analytical and charting tools. FXCC is a registered Cyprus Investment Firm (CIF), regulated by CySec and a member of the EU’s Markets in Financial Instruments Directive (MiFID). Regulated, secure and diverse, FXCC will help you get started or simply grow as a forex investor.

9. Best for Education and Beginners: AvaTrade

AvaTrade is a broker with a large reach from Europe and South Africa to the Middle East, Australia, the Caribbean, Japan and much more. You can easily trade CFDs based on several assets like stocks, forex, indices, crypto, and much more. 

AvaTrade is unique in that it works best for both beginners and advanced traders who want to volume trade. You can get service in 20 languages, and you will have more than enough variety to keep your portfolio both up-to-date and profitable.

British traders will have more options to build their portfolios, and this could turn into a wonderful place where you can experiment with unique asset classes before allocating more funds to the cause. AvaTrade is licensed as a regulated broker in the EU, Japan, Australia, South Africa, UAE and the British Virgin Islands.

10. Best for Leverage Trading With Multiple Instruments: IFC Markets

IFC Markets is an online trading platform that offers forex, stocks, commodities, indices and synthetic assets through excellent trading platforms. They offer competitive trading conditions, low spreads and reliable customer support.

Its trading platforms include MetaTrader 4 and MT5, and its own developed NetTradeX advanced platform. IFC Markets also gives clients unlimited trading opportunities via its unique GeWorko Portfolio Quoting Method that lets traders create their own synthetic instruments or choose from PCI Library synthetic instruments created by professionals.

11. Best for Professionals: Interactive Brokers

Interactive Brokers (IBKR) is a well-known broker that also offers various assets for traders including forex, stocks/ETFs, options, futures, spot contract, event contracts, US spot gold, bonds and mutual funds. They are known for their competitive pricing, advanced trading platforms and wide range of currency pairs. Interactive Brokers offers a reliable and reputable platform with access to global markets.

The FXTrader provides an optimized trading interface with tools built for the currency markets, including real-time streaming quotes, up and down indicators, trading volumes, pending trades, executions, positions and average price plus P&L.

Large-Sized Order quotes are specific to the order quantity entered are generated based upon an aggregation of quotes provided by interbank dealers to help get the best execution possible and minimize market impact. IBKR is regulated by the SEC, FINRA, NYSE, FCA and other regulatory agencies around the world.

How to Choose the Best Forex Brokers in the UK

Here is the methodology behind Benzinga’s top picks for forex brokers in the UK and how you can thoroughly vet a broker that suits your trading needs.

Spreads

Unlike stock trading, forex trading isn’t usually burdened by commissions or similar fees. Instead, brokers are compensated by using a spread, a gap between the bid and ask prices, that allows them a profit on each trade.

While not the only consideration, spreads matter because they affect the profitability of trades. Wider spreads can have the effect of higher trading costs. Rollover fees or swap rates, which represent the difference in interest rates between the two currencies in a pair held overnight aren’t considered as a cost because a rollover fee can be either a fee or a payment to the trader. They work both ways.

FCA Regulation

While the trades themselves aren’t monitored, brokers that are FCA-regulated provide an extra margin of safety because their business practices are monitored.

There are examples of forex brokers that have become insolvent due to rapid changes in currency prices and exposure through leverage granted to traders and margin calls that haven’t been covered. FCA regulation assures that funds for trading accounts are kept separate from the broker’s own funds.

Cash Management

The ease of funding trading accounts and getting your money back out are important considerations. Forex trading benefits from the ability to manage balances nimbly and to fund your account in a number of ways. When it’s time to take profits out, that process should be equally simple.

Trading Tools

Forex traders come in all forms, from beginner to expert, and everywhere in between. Trading tools that help traders to understand price movements or the mechanics of a trade are expected. Brokers or trading platforms should have charting, historical data, news, and other tools available for traders.

Customer Support

When a problem or question arises for traders, it’s important that there’s a way — or several ways — that traders can get support. The forex trading market has evolved, making the platforms or brokers with better trading tools more appealing.

How to Verify FCA Authorization

To verify FCA authorization, access the FCA Financial Services Register and confirm the broker’s FCA register number with the official FCA database. Here are the step to verify:

• 1. Open your preferred web browser and visit the FCA Financial Services Register. You can simply enter “FCA Financial Services Register” in the search bar or click this link.
• 2. Locate the search box and enter the name or details of the broker or firm you want to verify into the search box. For example, you can enter the broker’s name, company name, or FCA register number if you have it. The search results will display a list of regulated entities matching your search criteria.
• 3. Locate the specific broker or firm you are interested in verifying from the search results. Look for the broker’s FCA register number. This number uniquely identifies the broker and is usually provided alongside their other details. Make a note of this number.
• 4. Now, go back to the FCA Financial Services Register page and find the search box again. This time, select the “Firm Reference Number” option from the “Search by” drop-down menu, which allows for a specific search using the FCA register number.
• 5. Enter the broker’s FCA register number into the search box, the search results should display the specific broker or firm matching the FCA register number you entered. Ensure that the details provided on the FCA Financial Services Register match the information provided by the broker. This confirms their FCA authorization.

Why is the Financial Conduct Authority (FCA) Important for Forex Traders in the United Kingdom?

The FCA plays a crucial role in the forex trading industry in the UK and is highly important for forex traders operating in the country. As the main regulatory body, the FCA ensures that UK-based brokers comply with regulations and adhere to strict guidelines, ultimately protecting you and upholding market integrity.

The FCA helps protect investors from fraudulent activities, such as unauthorized trading or misappropriation of funds.They require UK brokers to isolate client funds from their own operational funds. This segregation of client funds significantly reduces the risk of misappropriation or loss.

In the event of a broker’s bankruptcy or insolvency, the Financial Services Compensation Scheme (FSCS) provides a safety net for traders. This scheme ensures that, up to a certain limit, traders may be compensated for their financial losses. This acts as a contingency plan for traders, providing them with additional protection and peace of mind.

What is Spread Betting, and Why is it Popular in the UK?

Spread betting is a form of financial trading where investors speculate on the price movements of various financial instruments, such as stocks, currencies and commodities. It involves placing a bet on whether the value of an asset will rise or fall, and the amount of profit or loss depends on how accurate the prediction is.

Spread betting is popular in the UK because it offers several advantages over traditional forms of trading, such as direct ownership of assets. Some of the reasons for its popularity include the potential for high returns, the ability to trade on margin (borrowing money to make larger trades), and the tax benefits for UK residents (profits are tax-free). Additionally, spread betting allows traders to take advantage of both rising and falling markets, providing opportunities for profit in any market conditions.

Trading with the Best Forex Trading Platforms in the UK

Massive swings aren’t unusual in forex trading. Fortunately, many platforms offer demo accounts that allow traders to learn at their own pace or to test trading strategies without the risk of using their own capital.

Whether you’re new to trading or a seasoned pro, whether you’re a high-leverage risk taker or a more conservative trader, there’s a forex broker that’s the best fit — and in many cases, the broker you choose will continue to meet your needs as your account grows.

Frequently Asked Questions