Best Forex Brokers in the UK

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Contributor, Benzinga
June 6, 2024

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

Disclosure: 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 CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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 Mobile Users: Plus500

Plus500 has the platform that advanced traders in the UK can use to manage larger portfolios or to help their clients manage massive chunks of investments. There are many different assets you can try like forex, CFDs, stocks, futures, options and more. Minimum investment is low, fees are low and you can easily invest your money back into your portfolio as Plus500 helps keep money in your pocket.

Pros

  • You can choose from a massive range of assets
  • You can build a complex portfolio or help your clients
  • It’s easy to save money on this platform

Cons

  • Some people may prefer a less complex platform

2. Best for Dedicated Forex Traders: FOREX.com

  • Forex.com NON US
    Best For:
    Fast, Reliable Execution and High-Volume Traders
    securely through Forex.com NON US's website

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% to 77.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

    The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account

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.

Pros

  • Highly trusted broker
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
  • $100 minimum deposit

Cons

  • Can't buy and sell other securities such as stocks and bonds
  • High stock CFD fees

3. 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.

Pros

  • $0 minimum deposit
  • 1:500 leverage
  • 26,000+ assets across six asset classes
  • 24/7 customer support
  • Low forex fees

Cons

  • Lacks additional Tier-1 regulatory licenses outside of New Zealand
  • Educational resources aren't as established as other options

4. Best for Low Forex Fees: Axi

  • Axi
    Best For:
    MT4 Traders
    securely through Axi's website

    Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.

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.

Pros

  • User-friendly MetaTrader 4 platform
  • Copy trading to learn from professional traders
  • Economic calendar with country and category filters for news of economic affairs and economic indicators from across the globe
  • Good educational material including a demo account, tutorials and videos
  • Advanced analytics driven by AI and ML

Cons

  • Customer service 24/5
  • Inactivity fees

5. Best for Advanced Traders: Saxo

  • Saxo
    Best For:
    Advanced Forex Traders in the UK
    securely through Saxo's website

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, FX or any of our other products work and whether you can afford to take the high risk of losing your money. Losses can exceed deposits on some products.

Saxo stands out as a premier multi-asset broker, offering exceptional research capabilities and an outstanding trading platform. With an impressive array of over 70,000 tradable instruments, Saxo caters to the needs of diverse investors. For those engaged in active trading, Saxo delivers a comprehensive and immersive experience, boasting a vast selection of tools, top-notch research resources, and premium features.

Saxo holds a license from the Danish Financial Supervisory Authority, adhering to rigorous regulations set by both Danish and EU authorities governing financial institutions. Additionally, all branches and subsidiaries offering financial services are duly registered and authorized by local regulatory bodies.

Pros

  • Unparalleled market analysis and insight
  • High-quality videos and educational resources
  • Provides a variety of advanced order types and account protection features for effortless risk management
  • Over 190 currency pairs

Cons

  • Beginners may find the platform overwhelming
  • While the charts on SaxoTraderGO are robust, they lack the functionality to swiftly adjust stop-loss and/or limit orders through drag-and-drop actions

6. Best for High Trust Scores: IG Markets

  • IG Markets
    Best For:
    Fast Execution for U.S. Traders
    securely through IG Markets's website

    Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.

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.

Pros

  • Easy-to-navigate platform is easy for beginners to master
  • Mobile and tablet platforms offer full functionality of the desktop version
  • Margin rates are easy to understand and affordable
  • Excellent educational tools
  • Highly trusted
  • Access to over 80 currency pairs

Cons

  • Customer service options are lacking
  • No 2-factor authentication on mobile

7. Best for CFD Trading: City Index

  • City Index
    Best For:
    International Forex and CFD Traders
    securely through City Index's website

    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 CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

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.

Pros

  • A range of trading options and spreads
  • High quality research tools
  • Low trading and non-trading fees
  • Quick and easy account opening
  • Demo accounts available
  • Connection to Trading View

Cons

  • Only forex and CFDs are available on the platform
  • High stock CFD fees

8. Best for Excellent Trading Conditions: FxPro

  • FxPro
    Best For:
    Excellent Trading Conditions
    securely through FxPro's website

    CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. You should consider whether you understand how CFDs and Spread Betting work and whether you can afford to take the high risk of losing your money.

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.

FxPro offers Spread Betting to UK clients through FxPro Edge, a customizable trading platform. With FxPro Edge, you can trade a wide range of instruments across six asset classes tax-free. The platform features a widget-based user interface that can be tailored to individual trading needs. Additionally, traders can trade directly from the chart, ticker, or set up custom quick trade options. FxPro Edge also provides over 50 technical indicators, price alerts, and other features for enhanced trading experience.

Pros

  • Educational resources for traders of all skill levels
  • Customer support is top-notch
  • FCA license allows spread betting on FxPro Edge
  • Fully-transparent execution methods that vary by account type
  • Range of convenient payment options
  • Regulated in two Tier-1 jurisdictions, one Tier-2 jurisdictions, and one Tier-4 jurisdiction

Cons

  • Offers fewer symbols for forex and CFD traders than other industry leaders
  • Pricing could be more competitive

9. Best for Copy Trading: eToro

  • eToro Forex
    Best For:
    Copy Trading
    securely through eToro Forex's website

    CFD trading is not available to U.S. users. 51% 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.

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.

Pros

  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Demo account that gives you $100,000 to practice trades
  • Great option for traders interested in forex and crypto

Cons

  • High non-trading fees
  • Limited customer service
  • Doesn't support MT4 or 5

10. 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.

Pros

  • Extremely low pips
  • 24/5 customer service via live chat, phone, email or fax
  • Multilingual support
  • ECN/STP broker model
  • 100% first deposit tradable bonus
  • Free Virtual Private Server (VPS)
  • Supports MetaTrader 4
  • Has an offshore subsidiary for high leverage trading
  • Automated trading and hedging

Cons

  • Customer service not available on weekends
  • Only supports 1 trading platform

11. 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.

Pros

  • Customer support available in 20 different languages
  • Excellent educational resources and research tools
  • Free deposit and withdrawal methods
  • Best in Class rating for education and beginners in 2024

Cons

  • High CFD fees
  • High inactivity fees

12. 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.

Pros

  • Unique trading instruments such as portfolio quoting, continuous stock indices and derivatives
  • Low minimums
  • More than 600 trading assets in different classes
  • Beginner-friendly Micro accounts with a minimum deposit of just $1

Cons

  • High spreads compared to other brokers
  • Complex account verification
  • High currency fees for UK traders
  • Lacks regulations

13. 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.

Pros

  • 100+ currency pairs on 23 currencies
  • Comprehensive, quick desktop platform
  • Mobile app mirrors full capabilities of desktop version
  • Access to massive range of tradable assets
  • Low margin rates
  • Easy-to-use and enhanced screening options are better than ever

Cons

  • Trading platform may be intimidating for new investors

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.

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

Q

Is forex trading legal in the UK?

A

Yes, forex trading is legal in the UK. The Financial Conduct Authority (FCA) regulates forex trading in the UK and brokers must adhere to strict regulatory guidelines to operate legally.

Q

Do you pay tax on forex trading in the UK?

A

Yes, in the UK, individuals are required to pay taxes on profits made from forex trading. This is considered capital gains tax, and the amount you pay will depend on the level of profits you have made. It is important to keep accurate records of your trading activity to ensure you are compliant with tax regulations.

Q

What leverage is available for UK traders?

A

UK traders have several leverage options available to them, including margin trading on their accounts, options and futures trading, and leverage offered by forex brokers. Leverage can amplify potential profits, but it also increases the risk of substantial losses, so you should use it carefully and consider your risk tolerance before utilizing leverage in your trading strategies.

Get a Forex Pro on Your Side

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Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.

About Kaitlyn Wolf

Kaitlyn Wolf is a personal finance, investing and lifestyle writer with over 8 years of experience in the SEO world. Her main focuses include forex, saving for retirement, budgeting and personal investing strategies. She’s passionate about helping others take control of their finances in simple and easy to understand ways. Her work has been published on various investing platforms including MoneyLion and Benzinga.