The UK Forex market is well-known, with its popularity stretching from the UK itself to the rest of the world. Investors from different parts of the globe have taken a keen interest in it, which has led a lot of UK forex brokers to settle their offices in London.
UK brokerage firms offer a couple of advantages, for example, a regulatory framework that guarantees the customer assets security, less stringent market exchange conditions, and a variety of features. Each of these points of interest mostly arises from the unique offerings that UK brokers advertise, which has turned into a notable wonder to speculators on a worldwide scale.
Due to these currency trading merits, a considerable number of hedge funds, finance organizations, and even the best banks have set up home offices in London. This simple aspect has caused the UK to hold its position as the most preferred forex trading destination on the planet. Also, this shows why the UK currency trading transactions occur in high volumes.
We have compiled this list of the Top 5 UK forex brokers and explained what makes them such a phenomenon in the global Forex market.
Top 5 UK Based Forex Brokers
Currency Pairs: 104
EURUSD Spread: 0.8 pips
Leverage: Up to 1:50
IG Markets is based in London. It is subject to the regulation of the Financial Conduct Authority (FCA). This broker has been providing access to the markets since 1974, making an effort to implement the latest innovations on their platform, providing exposure to five major groups of assets – forex, indices, shares, commodities, and crypto.
The IG Markets platform has no assets, and all the trading operations are carried out in derivatives, which allows you to gain exposure to the markets without owning the asset.
IG Markets also offers its traders a free demo account to practice without risking real money. To switch to the real account, a minimum deposit of £250 is required.
IG Markets offers its users a true trading school for free and accessible to all users. Training is available anywhere and anytime thanks to the IG Academy app, which allows you to follow courses, videos, and webinars on any mobile device.
- Five possible ways to trade
- Demo platform available
- Free training available from the application
- Regulation by FCA
- Additional monthly fees compared to other online brokers on the market
- Minimum deposit in real account
Currency Pairs: 42
EURUSD Spread: 0.2 pips
Leverage: Up to 1:30
Darwinex is a FinTech company operating since 2012, licensed and regulated by the UK Financial Conduct Authority (FCA). Its main service is asset management, allowing traders to invest in thousands of strategies.
In Darwinex, you can adopt the role of a strategy creator trader, charging a commission when your DARWINs are copied and have profits, or as an investor purchasing DARWINs from other traders, copying the most successful DARWINs and gaining a return on your investment.
Forex traders have access to only 41 currency pairs, meaning the broker does not provide complete coverage of the market.
The initial minimum deposit is $500, while subsequent transfers are possible from $100. Leverage is capped at 1:30 for retail traders, as per the stipulations of the European Securities and Markets Authority (ESMA).
Darwinex offers a free demo account to practice, and it is compatible with MetaTrader 4 and MetaTrader 5.
- Platform integrations
- Copy trading
- Regulated by FCA
- High minimum deposit
- Lack of choice for forex pairs trading
Currency Pairs: 50
EURUSD Spread: 0.8 pips
Leverage: Up to 1:200
ETX Capital is an online forex and CFD broker headquartered in London and authorized and regulated by the British FCA. It belongs to the Monecor company founded in 1965, with a long history in the financial sector. Moreover, it is a member of the London Stock Exchange.
Through this broker, we have the possibility of trading more than 50 currency pairs, among which are the main values of the world, such as the dollar, pound, euro, yen, or the Swiss franc.
ETX Capital offers several trading platforms adapted to different investor profiles, such as its own ETX Trader and ETX Trader PRO platforms, the popular MetaTrader 4, or specific versions for mobile phones with the Android system or for the iOS-based iPhone and iPad.
You can open an account without a minimum deposit and with the maximum leverage that varies depending on the financial instrument with which you are going to operate.
In addition, ETX Capital offers face-to-face seminars, Webinars, and free courses for traders. There are also monthly tutoring sessions, comments, and market news — literally, everything to help you learn to invest and get the most out of your operations.
- Their own trading platform to add to MetaTrader
- Demo account availability
- Free education center
- Lack of research tools
Currency Pairs: 158
EURUSD Spread: 0.7 pips
Leverage: Up to 1:30
CMC Markets is one of the oldest and most prestigious CFD brokers in the world, which has been operating since 1989.
It is regulated by FCA, and also CMC is covered by the British Financial Services Compensation Scheme (FSCS), which provides the compensation of up to £50,000 per account in the event of non-customer issues.
CMC stands out for having one of the largest asset offerings on the market, more than 330 currency pairs.
The spreads of CMC Markets are among the best in the market. For example, in the EUR/USD, it is easy to find an average spread between 0.7 and 0.9 pips, which many brokers cannot match.
Unlike other brokers, which have external platforms, CMC Markets offers its own platform, and also you can open an account with MetaTrader.
In addition, CMC offers different formats of educational videos, namely online seminars, trading guides, and technical analysis streaming.
- No minimum deposit
- Low forex fees and spreads
- Regulated by FCA
- Great variety of currency pairs
- Complicated account verification process
Currency Pairs: 62
EURUSD Spread: 0.1 pips
Leverage: Up to 1:500
Tickmill is an online forex and CFD broker launched in 2011. It is regulated by the UK Financial Conduct Authority (FCA), and its head office is based in London.
Tickmill offers trading in 62 forex currency pairs and the maximum leverage in forex in the UK, restricted to 30 to 1 by ESMA regulations.
Tickmill offers three accounts: Classic, PRO, and VIP. With a low commission rate, the PRO account will be ideal for most traders compared to the standard account, as the spreads are inherently lower.
Tickmill not only has a couple of live data centers and demo accounts but also offers quality support. The broker’s customer support, accessible via phone or email, receives positive customer reviews on a regular basis.
- Low fees for forex traders
- Fast and easy account opening procedure
- Free deposit and withdrawal
- Minimum deposit
What is important when choosing a UK forex broker
The decision of which broker to choose is crucial and will strongly affect your future trading — and it is success or failure. So, to do it wisely, here is a concise list of features to look for.
The activity of a trusted broker must always be governed by a true regulator designed to protect and promote the integrity of the broker’s operations and investments.
The Financial Conduct Authority (FCA) is the highest financial authority in the United Kingdom. Hence, if you prefer to trust your funds to a broker, go to their website and verify whether the broker is regulated by FCA.
This is a very important aspect to examine before signing up with a broker. What spreads do they offer? Just to give a very basic explanation, coins are traded in pairs. The difference between the selling price and buying price is called the spread. A good indicator is that the spread should not be more than five pips for the major currencies. The major ones include the US dollar:
This is a more important feature in forex than in other markets. Before signing up with a specific broker, test their customer support by emailing, calling, or chatting with their representative online. If you don’t get the response you expected, think twice before opening an account with that broker.
Leverage, in general, is what gives the Forex market a strong appeal to retail traders. However, the risks of trading with high leverage are as significant as the benefits. The most serious brokers offer leverage ratios that start at 100: 1 and go up to 400: 1. The higher the leverage, the higher the risk for the broker. If a broker offers leverage that seems too high for you, this could be a good indication of that broker’s future or lack thereof.
This is one of the most basic and essential checks you need to do before choosing a broker. The trading platform is where everything will go down. If the platform is not easy to navigate and user-friendly, or too slow and you have to refresh every time, this represents a potential problem. The platform should have an interface that allows you to accomplish your goals with a minimum number of steps.
To sum it up, there are many things we should do before becoming a successful forex trader, but one of the most important is finding a reliable, professional broker. The steps above will help you do that.
Currently, there is a wide range of online brokers that offer their services to investors from all over the world, and the number is increasing. It has become difficult, especially for beginners, to appreciate what the differences are between them and how to choose the right online broker.
The factor we consider the most important when choosing an online broker is that it needs to be a reliable regulated company. The online broker will be in charge of receiving your money and executing with it the operations that you request. For this reason, it is essential to pay special attention to a serious, transparent, and professional broker.