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Forex trading involves exchanging one currency for the other, hoping to profit from the exchange rate difference. It is the most liquid market and carries risks of losing money. That is why it is crucial always to be fully prepared with a solid plan and the best FCA-regulated broker for maximum potential. At InvestingGuide, we thoroughly analyse forex brokers before recommending them to our readers. Therefore, it is up to you to learn the forex market before investing real money. Most importantly, understand the tax implications on UK forex trading and utilise demo accounts if you are a newbie.
The UK financial landscape hosts hundreds of forex brokers. However, not all of them are legitimate. It is crucial to make the best choice to avoid falling victim to scammers. The best forex broker should be licensed and regulated by the Financial Conduct Authority (FCA). They should also feature other elements aligning with your forex trading needs.
Our ultimate guide below recommends some of the best forex brokers UK. It also explains forex trading, provides essential tips for choosing a suitable option, and more.
List of the Best Forex Trading Platforms UK
- Pepperstone – Best Forex Broker in the UK With Automated Features
- eToro – Beginner-Friendly Forex Broker in the UK
- Plus500*- Cheapest UK Broker For Forex Trading as CFDs
- FP Markets – Top Forex Broker For MT4 Users
- FxPro – Overall Best Forex Broker in the UK
Note: 80% of CFD retail accounts lose money with this provider.
In This Guide
UK Forex Brokers: Comparison Table
Coming up with this list of recommendations was not easy. We went out of our way to conduct thorough market research that took hours to complete. We conducted multiple tests on as many forex brokers UK as we could and shortlisted a few that met our specifications. Some of the elements that influenced our choices include security, fees, demo accounts, support service, and more.
Besides tests, we analysed user testimonials on Google Play, the App Store, and Trustpilot. This procedure helped us remain unbiased and not favour any forex broker. We then combined our test results with user testimonials findings to create this recommendations list.
That being said, below is our comparison table highlighting the elements that made us settle with the forex brokers listed here.
| Best Forex Broker | Licence | Support Service | Software | Payment Method | Demo Account | Money Insurance |
|---|---|---|---|---|---|---|
| Pepperstone | FCA, ASIC, FSCA, DFSA, CySEC, CMA, SCB, BaFin | 24/5 | TradingView, MT4, MT5, cTrader, Pepperstone Trading Platform, Social trading | Visa, Mastercard, Bank transfer, Neteller, Skrill, PayPal | Yes | Yes (up to £85,000) |
| eToro | FCA, CySEC, FSCA, ASIC, SFSA, MFSA, FSAS, SEC | 24/5 | eToro investing platform and app, Multi-asset platform, Social Trading, Copy Trader, Smart Portfolios | Credit/debit cards, Bank transfer, Klarna, PayPal, Skrill, Neteller | Yes | Yes (up to $250,000) |
| Plus500* 80% of retail investor accounts lose money when trading CFDs with this provider. | FSCA, CySEC (#250/14), FCA (FRN 509909), ASIC, FMA, MAS | 24/7 | Plus500 Invest, Plus500 CFD | Visa, MasterCard, PayPal, Skrill, Bank transfer | Yes | Yes (up to £85,000) |
| FP Markets | FCA, FSCA, ASIC, CMA, CySEC, FSA | 24/7 | MT4, MT5, TradingView, cTrader, WebTrader, Mobile App, Copy Trading | Debit/credit cards, Neteller, Skrill, Bank transfer, Google Pay, Apple Pay | Yes | Yes (up to $500,000) |
| FxPro | FCA, CySEC, FSCA, SCB | 24/7 | FxPro Mobile App, MT4, MT5, cTrader, FxPro WebTrader | Credit/debit cards, Bank wire transfers, Neteller, Skrill, PayPal | Yes | Yes (up to £85,000) |
Brokers Short Overview
Choosing a forex broker with features aligning with your trading needs guarantees an exciting trading experience. According to our market analysis, the majority of UK forex traders prefer brokers they can afford and those hosting their preferred instruments.
Unfortunately, they claim that comparing hundreds of brokers for suitable choices can be overwhelming. That is why we decided to help you save time by doing all the legwork. Our tables below show the applicable fees and asset offerings in our top recommendations.
Fees
| Best Forex Broker | Minimum Deposit Requirement | Commission/ Spreads | Deposits/ Withdrawals | Inactivity Fee |
|---|---|---|---|---|
| Pepperstone | £0 | From 0.0 pips | Free | None |
| eToro | £100 | From 1 pip | £5 withdrawal fee | £10 monthly |
| Plus500* | £100 | From 0.0 pips | Free | £10 monthly |
| FP Markets | £100 | From 0.0 pips | Free | None |
| FxPro | £100 | From 0.0 pips | Free | £10 one-off account maintenance fee |
Note: 80% of CFD retail accounts lose money with this provider.
Assets
| Best Forex Broker | Stocks | Forex | Cryptos | Commodities | Indices | ETFs | Options |
|---|---|---|---|---|---|---|---|
| Pepperstone | Yes | Yes | Yes | Yes | Yes | Yes | No |
| eToro | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Plus500* (CFDs) | Yes | Yes | No | Yes | Yes | Yes | Yes |
| FP Markets | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| FxPro | Yes | Yes | Yes | Yes | Yes | Yes | No |
Note: 80% of CFD retail accounts lose money with this provider.
Our Expert’s Opinion about the Best Forex Brokers UK
After conducting multiple tests and comparisons, we came up with the list below of top forex trading platforms UK. Feel free to compare the mini-reviews we prepared based on our hands-on experience for informed choices.
1. Pepperstone – Best Forex Broker in the UK With Automated Features
Pepperstone lists over 90 currency pairs to explore. Its platform is user-friendly and customisable, guaranteeing an exciting experience. We also find its support service team to be reliable and responsive, though they operate five days a week. For traders looking to diversify their portfolios, Pepperstone offers an additional 1200+ CFD instruments for this purpose. These include shares, commodities, indices, commodities, ETFs, and more.
When it comes to automated trading, Pepperstone supports this feature on its MT4, MT5, and cTrader platforms. We discovered EAs and code algorithms for use across its CFD instruments, including the listed currency pairs. Furthermore, users will enjoy social and copy trading features and advanced resources for market analysis.
Pepperstone
✔24/7 customer support
✔No inactivity fees
Pros & Cons
Fees
Trading Assets
Pros
- No minimum deposit requirement for UK clients
- Lists over 90 currency pairs to trade with spreads from 0.0 pips
- Advanced resources on the MT4, MT5, cTrader, and TradingView platforms
- Quality learning materials and a demo account for newbies
Cons
- Additional securities can only be traded as CFDs and spread betting
- Its fundamental data can be improved
After evaluating Pepperstone, we opened a trading account for conducting extensive tests. The process was quick and easy.
But what impressed us most was the Pepperstone minimum deposit requirement. This platform has no minimum deposit, which makes it ideal for low-budget and high-budget traders. If you are a beginner, joining this broker is advisable since you can start with a low amount and increase your stakes with time. To top it off, Pepperstone supports free deposits and withdrawals. This broker allows you to use diverse payment methods for free, from Visa debit and credit cards to PayPal and domestic bank transfers.
When it comes to spreads and commissions, Pepperstone is very cost-friendly. You can open a Razor account with this broker and enjoy 20 commission-free trades. Pepperstone’s Standard accounts also have zero commissions. On the other hand, spreads start from as low as 0.0 pips for forex pairs like EUR/USD and 0.5 for commodities like XAUUSD.
Finally, unlike most of its peers, Pepperstone charges zero inactivity fees. However, any positions you hold overnight with this platform are subject to swap rates. Visit Pepperstone’s pricing page for a detailed account of how this broker calculated swap rates for different financial instruments.
2. eToro – Beginner-Friendly Forex Broker in the UK
If you are a beginner trying to venture into forex, consider a reliable broker like eToro. While testing it, we had a seamless experience with its user-friendly and modern design platform. Plus, eToro is home to numerous quality learning materials for skills development. These include guides, articles, recorded videos, webinars, seminars, and more. On top of that, it hosts a £100,000 virtually funded demo account for practising forex trading and gauging your skill level risk-free.
When it comes to asset offerings, eToro lists over 55 currencies to trade with spreads from 1 pip. Additional assets are also offered, including shares, commodities, cryptos, ETFs, and more. We like its CopyTrader platform, which allows users to mingle with other global traders. It is also the best platform to follow the most professional traders. This way, you can easily mirror their positions you find have increased profitability.
eToro
✔5000+ financial instruments
✔Cost-free deposits
Pros & Cons
Fees
Trading Assets
Pros
- 55+ forex currency pairs
- A wide variety of other instruments for portfolio diversification
- 0% commission for real stocks trades
- Low minimum deposit requirement for UK clients
- Excellent selection of learning materials plus a CopyTrader platform for social and copy trading
Cons
- It doesn’t support popular trading platforms like MT4 and MT5
- High forex trading fees compared to its peers
- Charges £5 for every withdrawal request
If there’s anything that can eat away at your profit margins, it’s unnecessary costs. Thankfully, eToro fees UK are reasonable and pocket-friendly. We acquired a new account without paying a single cent, which was quite a relief. We also noticed that you can enjoy free deposits by using USD. That said, eToro supports many other currencies, including GBP, EUR, and RMB.
You will incur conversion fees if you use any currency other than USD. And if you use any currency that eToro doesn’t support, you must pay conversion fees to your payment provider. The exact conversion fees you may incur at any moment will depend on various factors, including your preferred currency and payment method.
Please note that eToro subjects each withdrawal request to a £5 fee. The platform uses this money to pay expenses arising from international money transfers. Most importantly, you can’t withdraw less than £30 from the eToro trading platform.
While depositing money into our account, we noticed that eToro has strict minimum deposit requirements. Britons using this platform have to deposit at least £100 the first time. Afterwards, you can fund your account with as little as £10, depending on your preferred payment method.
Commission-wise, eToro is very friendly to people who trade ETFs or invest in real stocks since the broker charges 0% for these assets. On the other hand, if you buy or sell crypto on this platform, expect to pay a 1% fee. CFD trading also attracts variable spreads depending on the involved instruments. For instance, the spreads for currencies and commodities start from 1 pip and 2 pips, respectively.
Not to forget, eToro charges a £10 monthly inactivity fee that kicks in after 12 months of dormancy.
3. Plus500 – Cheapest UK Broker For Forex Trading as CFDs
We have explored many affordable forex brokers in the UK, but Plus500 stood out in this category. The broker has a low minimum deposit requirement of £100 and does not charge commissions on its trades. Even the spreads incurred are low, starting from 0.0 pips on major currency pairs. On top of that, you will transact with multiple payment methods free of charge. Plus500UK Ltd authorized & regulated by the FCA (#509909).
Our experience trading forex with Plus500 was seamless. From creating a trading account to navigating its platforms’ trading tools, Plus500 did not disappoint. The broker gives users access to over 60 currency pairs as CFDs, as well as additional asset classes for portfolio diversification. These include shares, commodities, indices, ETFs as CFDs, and more. With leverage limits going up to 1:300 for expert traders and “Professional Account” with advanced resources, Plus500 suits all types of forex traders.
Note: 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500
✔User-friendly interface
✔Zero deposit and withdrawal fees
Pros & Cons
Fees
Trading Assets
Pros
- Low minimum deposit requirement
- Offers special accounts with advanced features to professional traders
- Responsive support representatives available 24/7
- Spreads as low as 0.0 pips
- Free deposits and withdrawals
Cons
- Its inactivity fee of £10 monthly kicks in after 3 months
- No advanced third-party platforms like MT4 and MT5
Brokers need to generate revenue and cover operating costs. That’s why many have fees and commissions. Sadly, high charges can undermine your profitability in the long run. That’s why looking for an affordable service provider is necessary.
With that in mind, we evaluated Plus500 fees UK. The process was easy since this broker values transparency. Our team was impressed by the fact that the trading platform doesn’t charge a dime for most services. First, opening an account is free. Deposits and withdrawals also attract zero charges. Furthermore, the broker offers free live CFD prices and dynamic charts. But note that the Plus500 minimum deposit UK is £100.
Plus500 primary source of compensation is the spread. While trading with this platform, you’ll have to cover the spread whenever you open a position. Your costs will depend on various factors, including your preferred instrument and current market conditions.
This broker also charges overnight funding and currency conversion fees. The former fee kicks in whenever you keep a position open overnight. On the other hand, you have to cover currency conversion fees whenever you interact with any currency besides your account’s base currency. Lastly, dormant Plus500 accounts attract a £10 monthly inactivity fee.
4. FP Markets – Top Forex Broker For MT4 Users
MT4 users will have an exciting experience trading forex with FP Markets. Our experience with this broker was amazing, and we enjoyed its advanced resources for market analysis. FP Markets lists over 60 currency pairs, which you can trade with spreads from 0.0 pips. The best part is that the broker does not manipulate prices and has no hidden charges. This makes it easier for users to plan their activities without worrying about overspending.
If you have done enough research on forex trading, you probably know that MT4 is one of the most preferred platforms for forex trading. FP Markets gives you access to this third-party platform with advanced resources. Some of the MT4 features include Expert Advisors, customisable charts, 60+ Pre-installed Indicators, and more. You can join this platform with as little as £100. There are also other platforms to explore, including MT5, cTrader, TradingView, and Iress.
FP Markets
✔10,000+ tradeable financial instruments
✔Free deposits and withdrawals
Pros & Cons
Fees
Trading Assets
Pros
- Low minimum deposit requirement of £100 for UK clients
- Lists over 60 currency pairs to choose from
- Low spreads from 0.0 pips on major currency pairs
- Quality market analysis tools on its advanced platforms
Cons
- You can only trade the additional securities as CFDs
- Its learning resources can be improved
Before going any further, note that the FP Markets minimum deposit is £100. You can’t fund your account with anything less than the mandated amount. Also, as a trader, expect to cover stipulated FP Markets fees and commissions. Let’s expound on that.
FP Markets has different trading and non-trading fees. However, the costs you will likely incur depend on where you are from. Take London as an example. If you’re from this city, you’ll incur a 0.10% commission per side while trading equity CFDs. You’ll also have to pay a £60 monthly fee if you use Iress Trader or ViewPoint.
But here’s the good news. You won’t incur additional costs while depositing or withdrawing money from your FP Markets trading account. Moreover, unlike many other brokers, this service provider doesn’t have inactivity fees for dormant accounts.
Please visit FP Market’s official site for a comprehensive overview of all fees and commissions.
5. FxPro – Overall Best Forex Broker in the UK
Among the forex brokers we tested in the UK, FxPro stood out in many ways. For instance, we love its modern design and user-friendly platform, which gave us an exciting experience. Moreover, the broker operates seamlessly on both mobile and desktop devices, thus allowing users to effectively manage their activities anywhere anytime.
When it comes to currency listings, expect to explore over 70 currency pairs, including major, minor, and exotic. This broker also features additional securities, including shares, commodities, cryptos, indices, and more. It enables you to easily diversify your portfolio in a single platform. We like that beginners have access to quality learning materials and a demo account while expert traders get to enjoy advanced trading tools on its cTrader, MT4, and MT5 platforms.
FxPro
✔User-friendly platform
✔Low minimum deposit requirement for UK clients
Pros & Cons
Fees
Trading Assets
Pros
- Free, instant deposits and withdrawals
- Low forex trading spreads, from 0.0 pips on major currency pairs
- Lists over 70 currency pairs to choose from
- A simple account registration process
- Advanced trading platforms for professional traders
Cons
- List forex and CFD instruments only
- Charges a one-off account maintenance fee of £10 should your account remain dormant for 6 months
From our broker analysis and comparisons, we find FxPro to be one of the most affordable brokers for Ul clients. For starters, this broker has a free account opening procedure that takes minutes to complete. Moreover, it has a £1000 minimum deposit requirement, though you can deposit as little as £100. And when it comes to transaction costs, FxPro doesn’t impose any. We believe this makes it suitable for newbies who are sceptical about spending a lot of money and low-budget traders.
When it comes to trading charges, FxPro imposes low fees compared to other brokerage firms. For instance, forex trading attracts low fees, starting from 0.0 pips on major currency pairs. However, expect to incur additional costs for positions left overnight. There is also an inactivity fee of £10 monthly should your account remain dormant for over six months.
Forex Trading in the UK
Forex trading is a popular legal activity in the UK, and many traders are boosting their income with it. However, you need to be at least 18 years old and have an identification card to create a forex trading account with an FCA-regulated broker. Forex trading involves exchanging one currency for another, looking to profit from exchange rate differences.
Also known as foreign exchange, currency, or FX trading, the activity allows traders to predict whether a currency’s value will rise or fall relative to another. For instance, you can go short, whereby you sell a currency and expect its value to depreciate. This is so you can repurchase it at a much lower rate to sell for profits.
Forex traders can also go long, whereby they buy a currency, predicting its value will increase. They hope to sell it at a much higher rate for profit. Note that there is no physical exchange when you buy or sell currencies. The activity takes place over the counter via brokerage firms.
The Financial Conduct Authority (FCA) is responsible for ensuring the UK’s financial landscape remains secure. It oversees all brokers’ activities so traders have the best trading conditions and environment. Furthermore, forex trading in the UK comes with capital gains tax deductions on all profits earned from the activity.
What is a Forex Broker?
This is a financial service provider that allows traders to buy and sell various global currencies. The brokers act as middlemen between traders and the interbank market, thus making it easier for you to access multiple currencies.
Note that forex brokers come in various forms, including dealing desk brokers and no-dealing-desk brokers. Also known as market makers, the former set fixed prices called spreads for buying and selling their featured currencies.
On the other hand, no-dealing-desk brokers analyse currency prices from various financial institutions and share those they find favourable to traders. Such brokers are common among retail traders since it is challenging for them to access the interbank market and make trades themselves.
See our full list of top High Leverage Forex Brokers in our related article.
How to Choose the Best Forex Trading Platform UK
Choosing the best forex trading platform UK is crucial to having an exciting trading experience. If you are new to this market, we guide you below through the major elements to consider when making suitable choices.
Security
Asset Offerings
Platform Reliability
Charges/Fees
Support Service
User Recommendations
Above all, consider the security measures employed by a forex broker you plan to trade with. For instance, it should be highly encrypted on all its platforms to avoid unauthorised access. Most importantly, the broker should be licensed and regulated by the Financial Conduct Authority (FCA). Having a regulated broker ensures you trade in a secure environment and do not fall victim to scammers.
Obviously, you want the best forex broker UK listing your preferred currencies for trade. Whether you want to explore major currency pairs like GBP/USD or minor pairs like GBP/JPY, ensure your broker supports the currencies. Additionally, consider a forex broker listing more assets like stocks, commodities, cryptos, ETFs, and more. This way, you can easily try new markets and effectively diversify your portfolio on a single platform.
A reliable platform will help you enjoy your experience. Whether you are a newbie or a professional trader, ensure the broker’s platform is user-friendly and customisable. Moreover, it must host quality resources for learning and skills development. For those new to a broker, check the availability of a demo account. This way, you can practise forex trading and gauge your skill level without risking real funds.
A suitable UK forex broker should be affordable and fit your budget. It is important to trade with funds you are comfortable losing, considering that the financial market is dynamic and asset prices tend to change frequently. Therefore, confirm a broker’s trading and non-trading fees. These include the minimum deposit requirement, commissions/spreads, inactivity fees, overnight charges, and more. Most importantly, ensure your broker has no hidden costs to avoid spending beyond what you had budgeted for.
Forex trading requires the best support to maximise your potential. Therefore, choose a broker with a reliable and efficient support service. You can contact the broker’s team via supported communication channels, including phone, email, and live chat. Gauge their response rate and whether they offer relevant solutions to any concerns you raise.
Analyse user comments and ratings regarding their experience with forex brokers in the UK. To get honest opinions, visit Google Play, the App Store and Trustpilot. By doing so, you will understand various forex brokers’ strengths and weaknesses, thus making the best choice for your trading requirements.
Read about the Risks in Trading Emerging Market Currencies in our other article.
How to Sign up for an Account with a Forex Broker
Creating a forex trading account with an FCA-regulated broker like the ones we recommend above is a straightforward procedure. Below, we take you through the steps to ensure you are prepared to make your first trade.
Step 1: Visit your broker’s website
Step 2: Create a forex trading account
Step 3: Participate in account verification
Step 4: Fund your account
Step 5: Trade forex
Start by visiting your broker’s website. If you have chosen an option from our recommendations list above, we share links to the brokers’ sites on this page for quick access. On the site, understand the broker’s terms of service and install its trading app to efficiently manage your positions while on the move.
Click the join now, register, or sign up button to create a forex trading account. Using the provided form, share your personal details, including your name, email, preferred currency, age, and more. Your broker will also require you to create a unique username and a strong password for an added layer of safety.
Verify your account to have it fully activated. For all FCA-regulated brokers, this procedure is a must, as it aims to secure the online trading environment from imposters. That being said, your forex broker will want you to verify your identity and location before having your account fully activated. You will share copies of your personal documents, including your ID card or passport and a utility bill or bank statement, respectively.
Once your account is fully activated, fund it. Consider your broker’s minimum deposit requirement and deposit funds based on your budget. You should also transact using the most convenient method for fast and effective transactions so you can dive straight into your trading activities. Fortunately, forex brokers like the ones we recommend allow you to deposit and withdraw funds using multiple methods. These include credit/debit cards, e-wallets, and bank transfers.
Your broker will confirm your deposit and redirect you to its listed instruments to trade. Choose your preferred currency pairs, trade size, and open a position. Do not forget to apply risk management controls and track your activities to ensure everything works out as expected.
For beginners, start forex trading using your broker’s demo account. You do not want to risk your hard-earned money without becoming familiar with how forex trading works. You can then trade on the live account once you are confident in your skill level.
Conclusion
Many UK individuals are earning good profits from forex trading. However, they put in a lot of effort and discipline to maximise their potential. As a beginner, understand that the market carries risks and losses are inevitable. Do not rush into trading currencies with real money before becoming familiar with how the market works. Plus, choose a suitable UK forex broker like the ones we recommend above for an exciting experience. And to ensure you avoid repeating the same mistakes, have a trading journal to note your progress. With time, you will discover where your strength lies and start reaping the benefits.
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