10 Best Forex Brokers in the UK for 2024
Dom Farnell
Co-Founder
Dom is a Co-Founder and of TIC. A passionate investor and seasoned blog writer with a keen interest in financial markets and wealth management.My goal is to empower individuals to make informed investment decisions through informative and engaging content.
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Please bear in mind that trading involves the risk of capital loss. 68% to 84% of retail investor accounts lose money when trading CFDs with the providers below. You should consider whether you can afford to take the high risk of losing your money.
Quick Answer: What is the best Forex Broker in the UK?
AvaTrade emerges as the top choice for forex trading in the UK, catering to both experienced traders and beginners alike. Its comprehensive features, user-friendly interface, and educational resources make it the preferred platform for navigating the forex market with confidence and success.
Here are the top 10 best Forex Brokers in the UK:
Avatrade – Best for beginners and overall
IG – Best for advanced charting tools
Pepperstone – Great overall features and access to currency pairs
- Trading 212 – Easiest to use
- Plus500 – Best for CFDs overall
Saxo – Best for analysis and trusted brand
City Index – Ticks most of the boxes in every feature
XTB – Our favourite trading platform
eToro – Great for features such as copy trading
CMC Markets – Access to great currency pairs
Forex Broker Comparison Chart
Fee Score | 3.8 | 3.5 | 4.1 | 3.8 | 3.9 | 4.2 | 3.9 | 3.4 | 3.2 | 3.8 |
Platform Score | 4.8 | 4.9 | 3.5 | 4.6 | 4.9 | 4.9 | 4.2 | 4.3 | 4.3 | 4.6 |
Account Opening Score | 5 | 4.5 | 3.5 | 4.6 | 5 | 4.8 | 4.2 | 4.4 | 4.3 | 4.4 |
EURUSD Spread | 0.9 | 0.6 | 0.1 | 1 | 0.8 | Varies on Account | 1.1 | 1 | 1 | 0.7 |
Withdrawl/ Deposit Fee | No | No | No | No | No | No | No | No | $5 | No |
Minimum Deposit | $100 | $0 | $0 | $1 | $100 | $0 | $0 | $10 | $0 | $0 |
MT4 Available | Yes | Yes | Yes | No | No | No | No | No | No | No |
FCA Regulated | No (CBI In Ireland) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Number of Forex Pairs | 60+ | 80+ | 70+ | 150+ | 60+ | 180+ | 80+ | 50+ | 40+ | 80+ |
Major Pairs | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Minor Pairs | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Exotic Pairs | Yes | Yes | Yes | Yes | No | Yes | Limited | Limited | No | Yes |
FSCS Protection of £85K to UK Clients | No | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Top 10 Forex Brokers in the UK
TIC Score 4.5/5
Pros
Cons
76% 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.
- Competitive Pricing: AvaTrade boasts a competitive edge with its reasonable fees, scoring 3.8/5, and offers an attractive EURUSD spread of 0.9, aligning well with the needs of forex traders seeking cost-effective trading options.
- Zero Withdrawal or Deposit Fees: The platform's policy of not charging fees for deposits and withdrawals enhances the trading experience by eliminating extra costs, a significant advantage for forex traders managing their trading capital.
- Diverse Deposit Methods: Offering a range of deposit options, including bank transfers and digital wallets like PayPal, Wise, and Revolut, AvaTrade provides forex traders with the convenience and flexibility to fund their accounts easily.
- Effective Customer Support: The platform's solid customer service, rated at 4.2/5, indicates that traders can expect accessible and helpful support, an essential factor for navigating the forex market successfully.
- Educational Resources: With a wealth of educational materials and demo accounts, Trading 212 supports new investors in learning about the market and practicing trading strategies without risk.
- Lack of FCA Regulation: While AvaTrade is regulated by the Central Bank of Ireland, the absence of regulation by the Financial Conduct Authority (FCA) might raise concerns for UK-based forex traders looking for local regulatory oversight.
- No FSCS Protection: The lack of Financial Services Compensation Scheme (FSCS) protection means that UK forex traders do not benefit from the same level of financial safeguarding available with some other brokers, potentially affecting the security of their investments.
- Potential for Platform Enhancements: Although AvaTrade's trading platform is highly rated, any room for improvement, such as adding new features, enhancing usability, or expanding customization options, could further enrich the trading forex experience.
Fees
| Type | Fee |
| Minimum Deposit | £100 |
| Inactivity Fee | USD Account: $50 EUR Account: €50 GBP Account: £50 |
| Administration Fee | USD Account: $100 EUR Account: €100 GBP Account: £100 |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
Forex Pairs
Avatrade offers more than 60 currency pairs, including major, minor, and exotic pairs. While the exact number might fluctuate slightly depending on market conditions, Avatrade consistently offers a wide selection for traders.
Here are some of the popular currency pairs available on Avatrade:
- Major pairs: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, EUR/GBP, USD/CAD, NZD/USD
- Minor pairs: EUR/CHF, GBP/JPY, EUR/AUD, EUR/CAD, CHF/JPY
- Exotic pairs: USD/TRY, EUR/TRY, GBP/TRY, USD/NOK, EUR/NOK, GBP/NOK
TIC Score 4/5
Pros
Cons
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
- Competitive Spreads: IG's forex trading is highly competitive, especially with an EURUSD spread of just 0.6, making it an attractive choice for active forex traders looking for cost efficiency.
- Zero Withdrawal or Deposit Fees: The absence of charges on deposits and withdrawals significantly eases the financial management process for traders, removing barriers to fund movements.
- Diverse Deposit Methods: Offering a range of deposit options, including traditional bank transfers and modern digital wallets like PayPal, Wise, and Revolut, IG ensures convenience and flexibility for forex traders globally.
- User-Friendly Platform: A platform score of 4.9/5 underscores IG's commitment to providing a robust and intuitive trading experience, equipped with a variety of features to suit different trading styles and preferences.
- MetaTrader 4 Integration: The availability of MetaTrader 4 (MT4) caters to a wide range of traders, especially those who favor this renowned platform for its comprehensive suite of advanced trading tools.
- Limited Platform Options: While the availability of MT4 is beneficial, the absence of its successor, MetaTrader 5 (MT5), might deter traders seeking the enhanced functionalities and broader instrument coverage offered by the newer version.
- Room for Improvement in Customer Support: A customer service score of 3.5/5, though decent, points towards potential areas for enhancement in IG's support services, highlighting the importance of striving for excellence in customer satisfaction.
- Need for Greater Fee Transparency: A fee score of 3.5/5 indicates that IG could improve in communicating its fee structure more clearly, ensuring that traders have a comprehensive understanding of all potential costs involved without needing to conduct extensive research.
Fees
| Type | Fee |
| Minimum Deposit | £0 |
| Inactivity Fee | £12 per month after a period of 24 consecutive months |
| Administration Fee | 2.5% for spread bets and standard CFD contracts and 3% for minis |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
Forex Pairs
IG offers a significantly wider range of forex pairs compared to Avatrade. They boast over 80 currency pairs, encompassing:
- Major pairs: All the standard major pairs like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and more.
- Minor pairs: A comprehensive selection of minor pairs beyond the popular ones like EUR/CHF and GBP/JPY.
- Exotic pairs: A diverse range of exotic pairs, catering to traders seeking less common currency combinations.
TIC Score 4/5
Pros
Cons
79% 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.
- Zero Transaction Fees: The absence of withdrawal and deposit fees makes Trading 212 an attractive option for traders at all levels, reducing the cost of trading activities.
- Low Entry Barrier: With a minimal deposit requirement of just $1, Trading 212 stands out as highly accessible for beginners or those preferring to start with small capital, encouraging broader participation in forex trading.
- Diverse Deposit Methods: The platform accommodates various deposit methods, including bank transfers and digital wallets like PayPal, Wise, and Revolut, offering traders convenience and flexibility in funding their accounts.
- Streamlined Account Opening: The process of opening an account with Trading 212 is efficient and user-friendly, as reflected by a perfect account opening score, ensuring a smooth start for new clients.
- User-Friendly Platform: A high platform rating of 4.6/5 indicates that Trading 212 provides a satisfactory trading experience, with a focus on user-friendly features and efficient functionality.
- Lack of MetaTrader Support: The unavailability of popular trading platforms such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5) might be a limiting factor for traders who prefer these established platforms for their comprehensive trading tools and functionalities.
- Potential for Enhanced Customer Support: While the customer service is competent, with a score of 4.0/5, there remains an opportunity for improvement to achieve higher satisfaction levels among traders.
- Fees Transparency: The fees score of 3.8/5 suggests that while the platform promotes commission-free trading, there could be more clarity around the spreads or any other underlying costs, urging traders to delve deeper into the fee structure for a clear understanding of all potential charges.
Fees
| Type | Fee |
| Minimum Deposit | $1 |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Inactivity fee | No |
| Account fee | No |
Forex Pairs
Trading 212 offers a vast selection of forex pairs, exceeding even IG’s offerings. They boast a staggering 150+ currency pairs, catering to diverse trading needs and preferences. Here’s a breakdown:
- Major pairs: All the standard major pairs like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and more are readily available.
- Minor pairs: An extensive selection of minor pairs beyond the popular ones like EUR/CHF and GBP/JPY, providing ample opportunities for expansion.
- Exotic pairs: A wide array of exotic pairs, catering to traders seeking less common and potentially higher-risk currency combinations.
TIC Score 4/5
Pros
Cons
81.7% 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.
- Lowest Industry Spreads: With an impressive EURUSD spread of just 0.1, Pepperstone positions itself as a leader in providing some of the industry's most competitive spreads, aiming to significantly reduce trading costs for its clients.
- Zero Fees on Money Transfers: The absence of charges on both deposits and withdrawals facilitates a hassle-free management of funds, allowing traders to operate without worrying about additional transaction costs.
- Variety in Payment Methods: Catering to a wide range of preferences, Pepperstone supports various deposit methods including traditional bank transfers and modern digital wallets like PayPal, Wise, and Revolut, ensuring flexibility and convenience in account funding.
- Simplified Account Creation: The process for opening an account with Pepperstone is praised for being straightforward and user-friendly, as indicated by a perfect account opening score, which highlights the broker's commitment to accessibility.
- Comprehensive MetaTrader Support: By offering the full suite of MetaTrader platforms, including both MT4 and MT5, Pepperstone caters to diverse trading needs, from manual trading preferences to those requiring sophisticated automated trading systems.
- Need for Platform Enhancement: Although receiving a respectable platform score of 3.5/5, there's an indication that improvements could be made in enhancing usability or expanding the feature set to better meet trader demands.
- Limited Features on Proprietary Platforms: Traders in search of innovative tools and unique features that are typically found on proprietary platforms might find the current offerings by Pepperstone somewhat lacking in novelty and advanced capabilities.
- Expansion of Learning and Research Materials: While Pepperstone provides certain market research and educational resources, there's potential for broadening these offerings to include more in-depth analyses and comprehensive educational materials, supporting traders in refining their strategies and market understanding.
Pepperstone’s approach to forex trading—marked by low spreads, a diverse range of payment options, and robust platform support—sets a high standard, though there are opportunities for further enhancements, particularly in platform innovation and educational support.
Fees
| Type | Fee |
| Minimum Deposit | $200 |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Inactivity fee | No |
| Account fee | No |
Forex Pairs
Pepperstone offers a competitive number of forex pairs, although it falls slightly short of Trading 212 and IG. They have over 70 currency pairs, encompassing:
- Major pairs: All the standard major pairs like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and more.
- Minor pairs: A comprehensive selection of minor pairs beyond the popular ones like EUR/CHF and GBP/JPY.
- Exotic pairs: A diverse range of exotic pairs, catering to traders seeking less common currency combinations.
However, the exact number of available pairs might vary depending on your location and account type. It’s always best to check directly with Pepperstone’s website for the most current and specific offerings in your region.
TIC Score 5/5
Pros
Cons
81% 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.
- Competitive Pricing: Plus500's fee structure, with a score of 3.9/5 and a EURUSD spread of 0.8, is designed to be competitive, benefiting frequent traders by keeping trading costs manageable.
- No Extra Fees for Funds Transfer: Eliminating fees for deposits and withdrawals facilitates smoother fund management for traders, removing financial barriers to transactions.
- Diverse Funding Methods: The platform's support for a variety of deposit methods, including bank transfers and e-wallets like PayPal, Wise, and Revolut, offers traders the flexibility and ease to fund their accounts according to their preferences.
- Streamlined Onboarding: The account opening process at Plus500 is efficient and straightforward, earning a perfect score in this area and making it welcoming for new users.
- Reliable Customer Support: With a customer service rating of 4.1/5, Plus500 ensures that its support team is both accessible and effective in assisting traders with their queries and issues.
- Absence of MetaTrader Platforms: The lack of availability of MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms may be seen as a limitation for traders who prefer these platforms for their comprehensive trading tools and capabilities for automated trading strategies.
- Inactivity Fee: An inactivity fee of $10 per month after a certain period of inactivity can increase the cost for traders not actively trading, prompting the need for regular account activity to avoid such charges.
Fees
| Type | Fee |
| Overnight Funding | yes |
| Currency Conversion Fee | 0.7% |
| Guaranteed Stop Order | spread applies |
| Inactivity Fee | $10 per month |
| Withdrawls/Deposits | $0 |
Forex Pairs
Plus500 offers a range of forex pairs, focusing primarily on major and minor currencies. While not the most extensive compared to some other brokers, it still caters to a variety of needs:
- Number of Forex Pairs: 60+ pairs
- Major Pairs Included: Yes, all standard major pairs are readily available.
- Minor Pairs Included: Yes, a selection of popular minor pairs is offered.
- Exotic Pairs Included: No, Plus500 currently does not offer any exotic currency pairs.
TIC Score 4.5/5
Pros
Cons
64% 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.
- Extensive Instrument Offering: Saxo provides access to a vast array of currency pairs, enabling traders to take advantage of forex trading opportunities across major, minor, and exotic pairs.
- Competitive Spreads: With competitive spreads on a wide range of forex pairs, Saxo is attractive for traders looking to minimize trading costs.
- Advanced Trading Platforms: Saxo offers its proprietary SaxoTraderGO and SaxoTraderPRO platforms, both of which are known for their robustness, comprehensive analysis tools, and user-friendly interfaces.
- High-Quality Research and Educational Resources: The platform is well-regarded for its market research and educational content, which helps traders make informed decisions and improve their trading skills.
- Regulatory Oversight: Being regulated by multiple top-tier financial authorities, Saxo offers a high level of trust and security to its clients.
- Overwhelming for Beginners: Saxo is targeted for seasoned investors and traders and can be overwhleming for newbies.
- Complex Pricing Structure: While offering competitive spreads, the platform's pricing structure can be complex, with varying levels of spreads and commissions based on account types.
- Limited MetaTrader Availability: Unlike many of its competitors, Saxo does not offer the popular MetaTrader platforms, which might deter traders who prefer these platforms for their trading activities.
Fees
| Category | Fee type | Cost | Notes |
|---|---|---|---|
| Shares (Stocks) | Commission | Varies depending on market and order type | Commissions from $1 on US Stocks |
| ETFs (Exchange-Traded Funds) | Commission | Varies depending on market and order type | Commissions from $1 on US Listed ETFs |
| Investment Trusts | Commission | Varies depending on market and order type | Same range as shares and ETFs. Minimum commission may apply. |
| Bonds (Government & Corporate) | Commission | Varies depending on bond type and order size | Typically, 0.05%-0.25% of bond value. Minimum commission may apply. |
| Spread Betting & CFDs | Spread | Varies depending on the market | Spread is the difference between buy and sell price. |
| Spread Betting & CFDs | Overnight financing | Varies depending on position and interest rates | Charged for holding positions overnight. Can be positive or negative. |
| Managed Portfolios | Annual management fee | Varies depending on portfolio type and size | Typically 0.5%-1.75% of assets under management. |
| ISAs (Individual Savings Accounts) | Platform fee | £0 – £2 per month | Varies depending on ISA type and account size. |
| SIPPs (Self-Invested Personal Pensions) | Platform fee | £0 – £12 per year | Varies depending on investment size and features. |
Forex Pairs
Saxo boasts a comprehensive selection of forex pairs, exceeding even Trading 212 in sheer number. They offer a staggering 180+ currency pairs, catering to diverse trading needs and preferences. Here’s a breakdown:
- Major pairs: All the standard major pairs like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and more are readily available.
- Minor pairs: An extensive selection of minor pairs beyond the popular ones like EUR/CHF and GBP/JPY, providing ample opportunities for expansion.
- Exotic pairs: A wide array of exotic pairs, catering to traders seeking less common and potentially higher-risk currency combinations.
TIC Score 3.5/5
City Index - Ticks most of the boxes in every feature
Pros
Cons
64% 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.
- Competitive Spreads: City Index is known for its tight spreads, especially on major currency pairs, which can significantly enhance trading efficiency and reduce costs for traders.
- Diverse Trading Instruments: Offering a broad spectrum of forex pairs, including majors, minors, and exotics, City Index caters to traders looking to diversify their trading strategies.
- Robust Trading Platforms: The platform provides access to both its proprietary WebTrader and the widely-used MetaTrader 4, offering flexibility and advanced tools suitable for all trading styles.
- Comprehensive Educational Resources: With a wealth of educational materials and market analysis, City Index supports traders at every skill level with resources to improve their trading knowledge and strategies.
- Regulated and Trustworthy: Operating under strict regulatory oversight, City Index assures a high level of security and trust for its clients' funds and personal information.
- Platform Navigation: While offering powerful tools, new users may find the abundance of features and options on City Index’s platforms somewhat overwhelming until they become more familiar with the system.
- Inactivity Fee: City Index charges an inactivity fee, which could impact traders who do not trade frequently, adding an extra cost for maintaining an account.
- Limited Account Types: Compared to some competitors, City Index offers a more limited selection of account types, which might not cater to all trading needs and preferences.
Fees
| Category | Fee type | Cost | Notes |
|---|---|---|---|
| Shares (Stocks) | Commission | 0.1% per trade | Minimum commission £5. Fractional shares have a 0.4% commission. |
| ETFs (Exchange-Traded Funds) | Commission | 0.1% per trade | Minimum commission £5. |
| Investment Trusts | Commission | 0.5% per trade | Minimum commission £5. |
| Bonds (Government & Corporate) | Commission | Varies depending on the bond | Typically, 0.25% – 0.5% of the bond value. |
| Spread Betting & CFDs | Spread | Varies depending on the market | Spread is the difference between the buy and sell price. |
| Spread Betting & CFDs | Overnight financing | Varies depending on the position and interest rates | Charged for holding positions overnight. Can be positive or negative. |
| Managed Portfolios | Annual management fee | 0.75% – 1.25% of assets under management | Fee varies depending on portfolio complexity and size. |
| ISAs (Individual Savings Accounts) | Platform fee | £0 – £2 per month | Varies depending on ISA type and account size. |
| SIPPs (Self-Invested Personal Pensions) | Platform fee | £0 – £12 per year | Varies depending on investment size and features. |
Forex Pairs
City Index also offers a competitive selection of forex pairs, although not quite as many as Saxo Bank. They boast over 80 currency pairs, encompassing:
- Major pairs: All the standard major pairs like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and more.
- Minor pairs: A comprehensive selection of minor pairs beyond the popular ones like EUR/CHF and GBP/JPY.
- Exotic pairs: A limited selection of exotic pairs, catering to traders seeking some less common currency combinations.
TIC Score 3.5/5
XTB - Our favourite trading platform
Pros
Cons
81% 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.
- Wide Range of Markets: XTB offers an extensive selection of trading instruments, including a vast array of forex pairs, CFDs on stocks, commodities, indices, cryptocurrencies, and more, catering to the diverse needs of traders.
- Low Forex Spreads: Known for its competitive spreads, especially in forex trading, XTB enables traders to execute their strategies cost-effectively, maximizing their potential returns.
- Advanced Trading Platform: XTB's proprietary xStation 5 platform is celebrated for its user-friendly interface, advanced charting tools, and rapid execution speeds, enhancing the trading experience for both novice and seasoned traders.
- Strong Regulatory Framework: As a platform regulated by several reputable authorities, XTB assures a high level of security and reliability, instilling confidence in its users.
- Superb Educational Resources: With a commitment to trader education, XTB provides a wealth of learning materials, including webinars, tutorials, and articles that cover various aspects of trading and market analysis.
- Limited MetaTrader Availability: While XTB offers its outstanding xStation 5 platform, the availability of MetaTrader platforms is limited, which might be a downside for traders specifically looking for MetaTrader's capabilities.
- Inactivity Fees: Traders should be aware of potential inactivity fees if their accounts remain dormant for an extended period, which could impact those who trade less frequently.
Fees
| Category | Fee | Details |
|---|---|---|
| Overnight Funding | Yes | Charged for holding positions overnight, depending on the instrument and interest rates. Rates are listed on XTB’s website. |
| Currency Conversion Fee | 0.5% | Charged on trades involving currencies different from your account base currency. |
| Guaranteed Stop Orders | No | XTB doesn’t charge extra for guaranteed stop orders. |
| Spread | Yes | Varies depending on the instrument and market conditions. Check XTB’s live quotes or the fee tables for specific spreads. |
| Inactivity Fee | Yes | €10 per month after 12 months of inactivity. |
| Withdrawals/Deposits | Free | Most withdrawal and deposit methods are free, but certain methods might incur fees from payment providers. |
Forex Pairs
XTB offers a decent range of forex pairs, not quite as many as the leaders but still catering to a good portion of trading needs. Here’s a breakdown:
- Number of Forex Pairs: 50+ pairs
- Major Pairs Included: Yes, all standard major pairs are readily available.
- Minor Pairs Included: Yes, a selection of popular minor pairs is offered.
- Exotic Pairs Included: Yes, XTB offers a limited selection of exotic pairs, though not as extensive as some other platforms.
TIC Score 3.5/5
eToro - Great for features such as copy trading
Pros
Cons
81% 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.
- Innovative Social Trading Platform: eToro has revolutionized the way people trade and invest by making financial markets more accessible through its social trading network. This allows users to view, follow, and copy the network's top traders automatically.
- Copy Trading Excellence: The platform’s copy trading feature enables less experienced traders to replicate the positions of more seasoned traders, effectively democratizing trading strategies and insights.
- Diverse Trading Instruments: eToro offers a comprehensive range of financial instruments, including forex, stocks, cryptocurrencies, ETFs, and commodities, providing users with ample opportunities to diversify their investment portfolios.
- User-Friendly Interface: The platform is designed with user experience in mind, offering an intuitive and easy-to-navigate interface suitable for both beginners and experienced traders.
- Regulated by Top-tier Authorities: eToro operates under the regulation of several reputable financial authorities, ensuring a high level of security and trustworthiness for its users.
- Withdrawal and Conversion Fees: eToro charges a fixed withdrawal fee and conversion fees for non-USD deposits and withdrawals, which may add extra costs for international traders.
- Lack of Advanced Trading Tools: While eToro's platform is highly accessible, some advanced traders may find the analytical tools insufficient for complex technical analysis compared to other specialized trading platforms.
- Inactivity Fee: An inactivity fee is applied to accounts that have been inactive for a certain period, which could affect users who do not trade regularly.
Fees
| Category | Fee | Details |
|---|---|---|
| Overnight Funding | Yes (for CFDs only) | Rate depends on the instrument and interest rates. Listed on the eToro platform. |
| Currency Conversion Fee | 0.5% | Applies to non-USD deposits and withdrawals. |
| Guaranteed Stop Orders | No | eToro doesn’t charge extra for guaranteed stop orders. |
| Spread | Yes | Varies depending on the instrument and market conditions. Check live quotes or ask support for details. |
| Inactivity Fee | $10 USD | Charged annually after 12 months of inactivity. |
| Withdrawals/Deposits | $5 USD withdrawal fee, free deposits. | Additional fees might apply for specific payment methods. |
Forex Pairs
eToro offers over 40 currency pairs, primarily focusing on major and some minor pairs. While not the most extensive selection, it caters to basic trading needs.
- Major Pairs: All standard major pairs like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and more are readily available.
- Minor Pairs: eToro offers a limited selection of popular minor pairs like EUR/CHF and GBP/JPY.
- Exotic Pairs: Currently, eToro does not offer any exotic currency pairs.
TIC Score 4/5
CMC Markets - Access to great currency pairs
Pros
Cons
81% 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.
- Extensive Forex Market Access: CMC Markets stands out for its broad offering of currency pairs, providing traders with the opportunity to engage in forex trading across global markets.
- Competitive Spreads: The platform is known for its tight spreads on a wide array of currency pairs, which enhances trading efficiency and can lead to cost savings for traders.
- Advanced Trading Tools: With sophisticated charting capabilities and a suite of analytical tools, CMC Markets caters to the needs of serious forex traders looking for in-depth market analysis.
- Educational Resources: A wealth of educational materials and resources is available, supporting traders at all levels in refining their trading strategies and market understanding.
- Strong Regulatory Framework: Regulated by top-tier authorities, CMC Markets ensures a secure and trustworthy trading environment, reinforcing its commitment to trader protection.
- Complex Platform Features: While offering advanced functionalities, new traders may find the platform's features somewhat complex, requiring a learning curve to fully utilize its capabilities.
- Inactivity Fee: Traders should be mindful of the inactivity fee charged by CMC Markets, which could impact those who do not maintain regular trading activity.
- Market Data Subscription Fees: Access to certain market data and premium analytical tools may require a subscription fee, adding to the overall cost for traders who require these advanced features.
Fees
| Category | Fee | Details |
|---|---|---|
| Overnight Funding | Yes (for CFDs only) | Rate depends on the instrument and interest rates. Listed on the CMC Markets platform. |
| Currency Conversion Fee | 0.5% markup | Added to currency conversion fees charged by your payment provider. |
| Guaranteed Stop Orders | No | CMC Markets doesn’t charge extra for guaranteed stop orders. |
| Spread | Yes | Varies depending on the instrument, account type, and market conditions. Check live quotes or ask support for details. |
| Inactivity Fee | £10 (or equivalent in your currency) | Charged per month after 12 months of inactivity. |
| Withdrawals/Deposits | Varies | Depends on the withdrawal method and currency. Check the Fees page for details. |
Forex Pairs
CMC Markets offers over 80 currency pairs, encompassing:
- Major Pairs: All standard major pairs like EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, and more.
- Minor Pairs: A comprehensive selection of minor pairs beyond the popular ones like EUR/CHF and GBP/JPY.
- Exotic Pairs: Yes, CMC Markets offers a selection of exotic currency pairs, catering to traders seeking less common currency combinations.
Understanding Forex Trading with UK Forex Brokers
Forex trading involves buying and selling currencies on the global market. The UK, home to some of the top forex brokers, has become a hub for currency exchange. Whether you are a seasoned trader or just starting, selecting a UK forex broker can be the first step toward successful trading.
Choosing the Best UK Forex Brokers
When looking for the best UK forex brokers, consider factors such as regulatory compliance, trading platforms, customer service, and market research tools. The best brokers provide a balance of reliable features and user-friendly interfaces.
Navigating the Forex and CFD Markets
The forex and CFD markets offer opportunities and risks. While forex involves pairs of currencies, CFD trading encompasses a broader range of markets such as indices, commodities, and stocks. CFD brokers cater to clients who prefer to trade contracts for difference, which can include price movements in the forex markets.
Criteria for Top Forex Brokers
Top forex brokers are not just about their ranking but also about the quality of services they provide. These brokers often offer comprehensive education resources, robust customer support, and advanced trading technologies.
The Rise of Top UK Forex Brokers
Top UK forex brokers have distinguished themselves by adhering to stringent regulatory standards while offering traders advanced tools and resources. Their commitment to excellence has made the UK a desirable destination for forex trading.
How can I trade forex in the UK?
Trading forex in the U.K. involves several key steps for both novice and experienced traders. Here’s a concise guide:
Choose a Forex Broker: Select from the best forex brokers in the UK that are regulated by the Financial Conduct Authority (FCA). Consider factors like spreads, fees, and platform features.
Verify FCA Regulation: Ensure you use FCA regulated forex brokers or similar to guarantee financial security and fair trading practices.
Open and Fund Your Account: Complete the account setup process, which includes identity verification. Fund your account using flexible deposit options like bank transfer, PayPal, Wise, or Revolut.
Start Trading: Utilise the trading platform provided by your broker to access the foreign exchange market. Beginners may start with major currency pairs due to their liquidity and lower volatility.
If you’re starting trading forex as a beginner, I would recommend checking out AvaTrade.
Why is the Financial Conduct Authority (FCA) important for forex traders in the UK?
The FCA’s role is crucial in the U.K.’s forex trading landscape for several reasons:
Investor Protection: The FCA ensures that forex brokers operate with transparency and fairness, safeguarding traders’ interests.
Financial Security: FCA regulation mandates that client funds be held in segregated accounts, providing an additional layer of security.
Market Integrity: The FCA’s oversight helps maintain the integrity of the forex markets, ensuring competitive spreads and preventing manipulation.
Dispute Resolution: The FCA offers a framework for resolving disputes between traders and brokers, including access to the Financial Ombudsman Service.
Is forex trading legal in the UK?
Yes, forex trading is legal in the UK, subject to regulation and oversight by the Financial Conduct Authority (FCA). Here’s what traders need to know:
Regulated Activity: Forex trading is recognized as a legitimate financial activity, with FCA-regulated brokers offering access to the forex markets.
Compliance Requirements: Traders and brokers must comply with FCA rules and guidelines, ensuring fair trading practices and investor protection.
Tax Implications: Profits from forex trades may be subject to capital gains tax, depending on the trader’s circumstances and tax status.
Accessibility: A forex trading account is accessible to retail investor accounts, offering opportunities to trade on movements in the foreign exchange market.
By following these guidelines and ensuring compliance with local regulations, traders in the U.K. can participate in forex trading legally and securely.
Update 07/04/2024
Leverage Restrictions: The European Securities and Markets Authority (ESMA) has implemented regulations limiting leverage offered to retail investors. This has forced many brokers in Europe to reduce leverage ratios, with some even exiting the market entirely.
Focus on Crypto Regulations: The UK’s Financial Conduct Authority (FCA) is prioritizing regulations around cryptocurrencies. They’ve implemented marketing rules for crypto service providers to ensure consumer awareness and understanding of crypto investments.
Do you pay tax on forex trading in the UK?
In the UK, whether you pay tax on forex trading profits depends on how the trading activity is classified. Here’s a general overview:
Capital Gains Tax: If you’re trading forex as an investment, any profits may be subject to Capital Gains Tax. However, you only need to pay this tax if your total gains for the tax year exceed the annual exempt amount.
Income Tax: For those who trade forex as a primary source of income, or through a professional business setup, profits might be considered income and taxed accordingly.
Spread Betting: If you’re engaging in forex trading via spread betting, it’s generally tax-free in the UK as it’s considered gambling under current laws.
It’s important to consult with a tax professional to understand your specific situation.
Is copy trading legal in the UK?
Copy trading is indeed legal in the United Kingdom and has become an increasingly popular investment strategy among retail investors. This method allows individuals to automatically mirror the trading actions of experienced and proficient traders, thereby potentially benefiting from the expertise of these seasoned market participants.
Understanding Copy Trading
Copy trading involves linking a portion of your investment portfolio to the portfolio of a trader whose strategies and results you wish to emulate. Whenever this trader makes a trade, an identical trade will be executed in your account, proportionate to the amount you have allocated for copy trading. This process can be highly automated, thus requiring minimal active management on your part.
Regulatory Framework
In the UK, the legal framework governing copy trading is robust, aimed at protecting investors from potential fraud and financial mismanagement. The Financial Conduct Authority (FCA) plays a crucial role in this regulation. Platforms offering copy trading services must be authorized and regulated by the FCA to ensure they adhere to strict financial standards and conduct rules. This regulation helps in safeguarding investors’ funds, providing a layer of security and ensuring that the platforms operate transparently and fairly.
Choosing the Right Platform
It is essential for investors interested in copy trading to choose platforms that are not only regulated by the FCA but also reputable and reliable. Factors to consider include the platform’s track record, the range of traders available to copy, the transparency of trading outcomes, and the fees involved. Some platforms also provide additional tools to assist investors in making informed decisions such as risk management features, diverse trader rankings, and detailed trading history analysis.
Potential Risks
While copy trading can be lucrative, it also comes with its own set of risks. The primary risk is market risk, as the success of this strategy is directly tied to the trading decisions of the copied investors. If these traders experience a downturn, your investment will mirror this decline. There is also the risk of over-reliance on a single trader or a narrow group of traders, making diversification crucial.
Legal Considerations
Legally, copy trading in the UK is subject to the same regulations that govern all trading activities. This includes the need for transparent disclosure of potential risks to investors and the requirement that all advertising materials are clear, fair, and not misleading. Additionally, traders who are being copied cannot directly access your funds; instead, they are simply providing a model which your account copies automatically.
In conclusion, copy trading is a legal and regulated investment option in the UK, provided it is carried out through platforms regulated by the FCA. Investors are advised to diligently assess the platforms and traders they choose to follow, understand the associated risks, and use risk management strategies to protect their investments. With the right approach, copy trading can be a valuable addition to an investment portfolio, offering a way to leverage the insights and expertise of seasoned traders.
Is MetaTrader Available and Legal in the UK?
Availability
MetaTrader, including both MT4 and MT5 platforms, is widely available and used by traders in the UK. These platforms are offered by many of the best UK forex brokers, catering to a range of trading preferences and strategies.
Legality
The use of MetaTrader platforms is legal in the UK when accessing them through an FCA-regulated broker. The platforms themselves are just tools for trading in financial markets, including forex, and their legality is contingent on the regulatory status of the broker providing them.
For specifics regarding tax implications, the legal nuances of copy trading, or details about using MetaTrader with a UK-regulated broker, consulting with a financial advisor or directly with a regulated broker can provide personalized and up-to-date information.
References:
1 – What is Forex Trading? A Beginners Guide – Investopedia
2 – How To Trade Forex? – City Index
3 – Is Forex Trading Legal? – Unmasking the Truth – Investing.com
4 – Trading Volume – Forex.com
5 – Foreign Exchange Markets – Wikipedia
6 – Top Three Criteria for Choosing a Reliable Broker – FX Street
Glossary
- Forex (FX): Short for foreign exchange, forex refers to the global marketplace for trading currencies. It involves the simultaneous buying of one currency while selling another and is primarily used for commerce, trading, or tourism.
- Currency Pair: In forex trading, currencies are quoted in pairs, showing the value of one currency relative to another. The first currency listed is the base currency, and the second is the quote currency. For example, in the EUR/USD pair, EUR is the base currency, and USD is the quote currency.
- Pip (Percentage in Point): A pip is the smallest price move that a given exchange rate can make based on market convention. Typically, a pip is equal to a one-digit movement in the fourth decimal place of a currency pair, though there are exceptions like the Japanese Yen pairs where a pip represents a movement in the second decimal place.
- Leverage: Leverage in forex allows traders to control a large position with a relatively small amount of capital. It’s expressed as a ratio, such as 50:1, meaning that with $1 of capital, a trader can control a position worth $50. While leverage can magnify profits, it also increases the risk of losses.
- Margin: This is the amount of money required in your account to open a trade. Margin is used to create leverage, and the amount required will depend on the size of the trade and the broker’s requirements.
- Bid Price: The bid is the price at which the market (or your broker) will buy a specific currency pair from you. Thus, at this price, the trader can sell the base currency.
- Ask Price: The ask price is the price at which the market (or your broker) will sell a specific currency pair to you. Thus, at this price, the trader can buy the base currency.
- Spread: The spread is the difference between the bid price and the ask price of a currency pair. It represents the broker’s profit from the trade (outside of any commissions or fees) and varies from broker to broker.
- Lot Size: In forex, currencies are traded in lots – a standardized unit of currency trading. A standard lot represents 100,000 units of the base currency, a mini lot represents 10,000 units, and a micro lot represents 1,000 units of currency.
- Stop Loss Order: This is an order placed with a broker to buy or sell once the currency reaches a certain price. A stop loss is designed to limit an investor’s loss on a security position. It’s a critical risk management tool in trading forex to prevent large losses.
FAQs
UK traders should prioritise platforms that offer:
A user-friendly interface for both novice and experienced traders.
Access to a wide range of currency pairs and trading instruments.
Advanced trading tools for market analysis and strategy execution.
Regulatory compliance with the Financial Conduct Authority (FCA) for security and trust.
Yes, forex trades are legal in the UK. Retail traders should ensure they use FCA-regulated brokers for protection under UK financial laws. It’s also essential for traders to be aware of the high risk of losing money when trading CFDs due to market volatility.
Yes, trading CFDs (Contract for Difference) allows you to participate in foreign exchange trading without owning the underlying asset. Benefits for CFD traders include:
The ability to leverage trades, potentially increasing profits.
The capacity to go long or short, providing trading opportunities in both rising and falling markets.
Access to global markets from a single platform.
Professional traders should look for features like:
Algorithmic trading capabilities to execute complex strategies automatically.
Comprehensive trading tools and analytics for in-depth market analysis.
A robust trading environment with minimal latency and superior execution speeds.
Support for professional trading strategies and risk management tools.
Trading fees and costs are crucial factors as they can significantly impact profitability. Traders should consider:
The spreads on major and minor currency pairs.
Any commissions or fees on trades, including withdrawal and deposit fees.
The transparency of the fee structure to avoid any hidden charges.
Forex trading involves the buying and selling of currencies on the global market with the aim of making a profit. Traders speculate on the fluctuations in exchange rates between different currency pairs. Online trading services provide a platform for traders to engage in this activity, offering tools for analysis, real-time quotes, and the ability to execute trades instantly from anywhere in the world. These platforms also offer educational resources and customer support to help traders make informed decisions.