Trading de Forex ou de opções binárias: Forex brokers best 6

Best Forex Brokers UK.

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Last updated: 28th December 2022.

If you are looking to trade forex, you may be wondering which are the best forex brokers in the UK. Within this article, I have managed to take out the guesswork by performing hours of meticulous research into the best UK forex brokers and the best forex trading platforms, with the highest safety regulations for every level of trader from complete beginners to skilled traders and institutions.

Trading forex is tightly regulated by the FCA (Financial Conduct Authority) in the UK, and therefore you can rest assured that all the UK forex brokers I have listed here fall under that regulation.

Browse the best forex trading platforms for January 2023.

See my list of the best FX platforms before I go into more detail about each broker further down in this guide.

Forex Broker of the Month.

Fineco.

Trade across 26 global markets 20,000+ instruments with Shares, ETFs, CFDs, Futures, Options & Funds Low fixed fee share trading at £2.95 per trade on UK shares and $3.95 on US Shares No commission applied by Fineco on CFD trades (including Commodities) with very tight spreads.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.91% of retail investor accounts lose money due to CFD trading 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.

XTB.

Low spreads on FX from 0.1 pips Micro-lot trading available 48 currency pairs available 24 hours a day five days per week.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82% 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.

AvaTrade.

Guaranteed stop-loss orders with Ava Protect Commission free trading One of the most well known forex trading platforms.

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 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.

Plus500.

Free demo account Available on Google Play and App Store Minimum deposit £100.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% 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.

HYCM – Henyep Markets.

Multi-regulated broker – FCA, CySEC, DFSA, CIMA Minimum deposit £100 Free Demo Account – MT4 and MT5 platforms.

CFDs 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 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.

ActivTrades.

Multi-regulated broker, online since 2001 Spreads as low as 0.5 pips One of the best forex brokers.

Spread betting and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread betting and CFDs work and whether you can afford to take the high risk of losing your money.

Markets.com.

Low spreads, rapid execution World-class trading tools Expert support available 24/5.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.90% 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.

Forex.com.

EUR/USD spread as low as 0.5 Performance Analytics tool driven by behavioural science technology Operating since 2001.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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.

Ovalx.

Commission-free trading on popular stocks CFDs 5,000+ markets available Spread betting (UK Only) and CFD trading.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.85% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.

Swissquote.

The security and trust of a Swiss regulated bank In-house forex trading platform with Advance Trader One of the most extensive offers of currencies worldwide.

eToro.

Copy trading platform with more than 3 million active traders eToro is widely known for being a low trading cost forex broker.

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. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Admiral Markets: Admirals.

Get up to 50% cash back on your spreads Hundreds of stocks & stock CFDs Trade and invest in 8,000+ forex markets.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.

IG Investments.

One of the best forex brokers in the UK Excellent web platform for trading Low trading fees.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.

Interactive Brokers.

Huge range of tradable assets Very low cost for high volume traders.

Investing in financial products involves taking risk.Your investments may increase or decrease in value, and losses my exceed the value of your original investment.

City Index.

Choice of 12,000 markets from one account Smart Signal tool driven by statistics Tight spreads from 0.5 points on FX.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75 % 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.

IronFX.

MT4 and Webtrader 4 platforms available Over 200 tradable instruments available including forex CFDs Regulated by the Financial Conduct Authority – FCA No. 585561.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.44% 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.

Table of Contents.

Browse the best forex trading platforms for January 2023 Top forex brokers reviewed in January 2023 List of the best forex brokers UK: FCA Regulated What is forex trading? How to trade forex MetaTrader 4 (MT4) What influences price changes in the FX market? Why is FX trading so popular? Is FX trading legal in the UK? How to choose the best trading platforms for forex Forex broker FAQs.

Top forex brokers reviewed in January 2023.

Find more detailed reviews of FX brokers below.

IG Investments: Best overall forex broker.

At a Glance Pros & Cons Fees Features.

At a Glance.

IG has managed to retain it’s spot as the best forex brokers in the UK with an excellent range of CFD accounts from which retail investors can trade forex as well as a comprehensive suite of tradable assets, research tools, and educational material accessible on the trading platform.

In addition to this, IG are also competitive with their fees whilst retaining excellent levels of quality with a highly advanced and intuitive forex trading platform. Users can also rely on excellent levels of 24/7 customer service on chat, phone, email and social media.

For forex traders looking to expand their knowledge, the trading account at IG also provides access to IG’s guide for forex traders. This includes details on forex and what it entails, how to trade currencies and the benefits of trading forex.

IG are an regulated by the FCA. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Pros & Cons.

Pros.

Excellent web platform for trading Comprehensive educational tools Low trading fees Tight spreads Good market analysis.

Cons.

High inactivity fee Lack of social or copy trading.

IG forex fees.

EUR/USD – Standard Spread 0.60 pips Trading Cost – Standard Spread USD 6 EUR/USD – Raw Spread 0.85 pips GBP/USD – Raw Spread 1.40 pips USD/JPY – Raw Spread 0.94 pips Trading Commission Fees included in spread.

Features at IG I like include:

80+ currency pairs Technical analysis on charts Real-time streaming news Negative balance protection Offers GBP/USD, EUR/USD and USD/JPY on the weekend MetaTrader 4 (MT4) Guaranteed stop loss Demo account.

eToro: Best forex broker for copy trading.

At a Glance Pros & Cons Fees Features.

At a Glance.

The thriving community of traders utilising the eToro trading platform makes it the perfect forex trading account for copy trading, providing scope to mirror the trading activities of experienced traders with proven track records. Copied traders that use eToro are offered an incentive to continue making successful trades, turning a profit for themselves, and in turn, anyone copying their trades.

eToro is a great option for people just venturing into the forex space with more than 3 million traders available to copy and options to filter by returns, popularity among copiers, and the number of forex markets they are active in. Copy Trading can help increase profitable trades by relying on the experience and knowledge of other traders.

In addition to this eToro is highly competitive when it comes to fees and range of currency pairs with over 45 pairs available to choose from all available from both the web and your mobile device.

We highly recommend reading our review of eToro here: eToro Review.

Pros & Cons.

Pros.

Copy-trading with more than 3 million active traders Good selection of trading tools Large selection of investments.

Cons.

Can only trade in USD so FX fees apply.

eToro forex trading fees.

EUR/USD – Standard Spread 1.00 pips Trading Cost – Standard Spread USD 10 EUR/USD – Raw Spread 1.00 pips GBP/USD – Raw Spread 2.00 pips USD/JPY – Raw Spread 1.00 pips Trading Commission Fees included in spread.

eToro features I like:

47+ currency pairs 98+ cryptocurrency CFDs Demo account Guaranteed negative protection.

Interactive Brokers: Best forex broker UK for institutions and professional traders.

At a Glance Pros & Cons Fees Features.

At a Glance.

With its advanced research platform and risk analysis tools as well as technical research news, advanced charting and 20 order types , Interactive Brokers (IBKR) makes for the ideal forex trading account.

Whilst the platform and its vast array of customisable tools may be too daunting for the novice trader, there is a wealth of educational material to support trading development including video courses, webinars and articles.

In addition to this, traders have the option to test out the platform without risking any of their own funds with Interactive Investors demo trading account.

Trading forex at Interactive Brokers can be conducted from two main platforms, the Trader Workstation (TWS) and the Client Portal platform. The Trader Workstation is an ideal platform from where professional investors can access the impressive array of features. This can all be accessed on both the web platform and the IBKR mobile app.

Pros & Cons.

Pros.

Huge range of tradable assets Very low cost for high volume traders Access to 125 markets.

Cons.

Slow and unresponsive customer service Expensive for low volume traders Hidden fees on the IBKR Pro plan Inactivity fee.

IBKR forex trading fees.

Average spread EUR/USD standard – 1.60.

Inactivity fees to be aware of are:

$20 per month for an account balance of less than $2,000 $10 per month for an account balance of more than $2,000 $20 per month if you don’t generate a minimum of $20 in commissions.

IBKR features I like:

105 forex pairs Recommendations Fundamental data Charting News feed Demo account.

Investing in financial products involves taking risk.Your investments may increase or decrease in value, and losses my exceed the value of your original investment.

City Index: Best forex broker UK for beginners.

At a Glance Pros & Cons Fees Features.

At a Glance.

City Index has one of the lowest spreads available as one of the best UK forex brokers, making them an excellent choice for beginners. They also have a low initial deposit of only £100 as well as a comprehensive suite of training resources to help beginners all the way through to advanced forex traders. This includes webinars and videos, articles, platform tutorials, risk management tools, daily market analysis, and training.

There are three main account types on offer including Trader, Premium Trader, and Professional. This illustrates City Index’s commitment to catering to all levels of traders and their free demo account offers scope to try the service without any risk to your personal funds.

When traders open an account at City Index, they can access a range of support features including a welcome pack and a call to walk you through the platform. In addition to this, regular market intelligence emails and trading ideas can help develop skills for trading forex.

Forex traders at City Index can access 84 global FX pairs, with tight spreads of 0.5 points.

Pros & Cons.

Pros.

Low forex fees Quick and easy account opening Excellent research tools Excellent educational material.

Cons.

High stock CFD trading fees.

City Index forex trading fees.

FX Pair Minimum spread Typical spread Margin from* EUR/USD 0.5 0.8 3.33% AUD/USD 0.5 0.9 5% USD/JPY 0.6 0.8 3.33% GBP/USD 0.9 1.8 3.33% EUR/GBP 0.9 1.7 3.33%

City Index features I like:

Economic calendar Platform walkthroughs Tight spreads Research portal.

CMC Markets: Best forex broker for spread betting platform.

At a Glance Pros & Cons Fees Features.

At a Glance.

As profits made from spread betting are not subject to capital gains tax (CGT) or stamp duty in the UK, they are a popular choice among traders. CMC Markets offer a wide product range, with tight spreads and automated execution.

CMC Markets also offer traders a comprehensive range of risk management tools and training guides as well as a highly competitive pricing structure with typical spreads of 0.74 pips on the EUR/USD.

For traders who surpass at least $25 million in notional trading volumes per month, CMC Markets offers liquidity rebates starting at $5 per million and increasing to as much as $10 million for those that trade over $300 million monthly although this is only available to professional traders.

Whilst CMC caters well to advanced traders, they are also an excellent option for beginners with their world-class selection of educational materials.

Pros & Cons.

Pros.

Tight spreads Extensive number of products Excellent proprietary trading platform Comprehensive educational tools Competitive pricing.

Cons.

Slow withdrawal times High currency conversion fees.

CMC Markets forex trading fees.

Average spread EUR/USD – active 0.81 Average spread EUR/USD – standard 0.81.

CMC Markets features I like:

Guaranteed stop-loss orders Market orders Partially close trades Limit and stop entry orders Take-profit orders Stop-loss orders Trailing stop-loss orders Boundary orders.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting and/or trading 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.

XTB: Best FX broker for free demo account.

At a Glance Pros & Cons Fees Features.

At a Glance.

XTB is the perfect platform for new traders to practice their skills and strategies without risking any of their personal funds. The demo account is completely free for up to 4 weeks and traders get £100k of virtual funds with which to start trading on 1500+ CFD markets , forex, indices, commodities and shares.

To support the development of new traders, XTB also offer a comprehensive range of educational resources including videos explaining trading strategies, trading instruments and forex platforms and live webinars. This is all helpfully categorised by experience level including basic, intermediate, expert and premium.

Traders who are then confident enough to try their hand at trading with real funds can choose between three account types; Standard, Pro, and Islamic. Each of these accounts has a unique take on commission fees, minimum deposits, leverage and swap fees.

Pros & Cons.

Pros.

Low forex fees Quick and easy account opening Excellent educational materials.

Cons.

Limited forex pairs compared to some UK forex brokers No 24/7 support.

XTB forex trading fees.

Average spread EUR/USD – active 0.78 Average spread EUR/USD – standard 0.78.

XTB features I like:

Live performance statistics Comprehensive charting package Market news Price tables Market calendar.

AvaTrade: Best FX and CFD broker for education.

At a Glance Pros & Cons Fees Features.

At a Glance.

New traders looking to expand their knowledge and education need look no further than AvaTrade. AvaTrade is one of the oldest online UK forex brokers and is heavily regulated on several continents.

Whilst AvaTrade are an excellent choice for copy trading, trading on mobile and low-cost trading, where they really stand out is with their investor education with their extensive content from both in-house staff and third-party providers including SharpTrader. There are almost 60 articles for beginners and 29 for skilled traders which can help provide insights into the kind of activities that could influence market movement.

In addition, AvaTrade offer traders video content including platform tutorials and webinars explaining the more complex aspects to forex trading.

Pros & Cons.

Pros.

Quick and easy account opening Free deposits and withdrawals Excellent education Excellent research tools.

Cons.

Inactivity fees Average forex fees.

AvaTrade forex trading fees.

Average Spread EUR/USD – Standard 0.91 (August 2022) All-in Cost EUR/USD – Active 0.61 (August 2022) Inactivity fee $50 per quarter after 3 months of inactivity.

AvaTrade features I like:

1250 instruments to trade MetaTrader 5 or MetaTrader 4 Trading calculator Financial instruments Economic calendar Islamic account Automated trader Ava Social.

Pepperstone: Best FX broker for lowest spreads and commissions/scalping.

At a Glance Pros & Cons Fees Features.

At a Glance.

Pepperstone is ideal for scalpers as most trades have execution in less than 30ms as well as some of the tightest spreads among forex brokers in the UK. CFD trading and spread betting is also available, and I suggest you read my guide to CFD trading and guide to spread betting before you commit.

Pepperstone offer two main accounts, catering to different levels of traders, the standard account for beginner forex traders and a razor account for advanced traders. The forex spreads in the standard account start at just 0.6 pips and alongside the commission-free pricing structure, this makes for a very cost effective solution.

For veteran traders, the Razor account is highly competitive with super tight commission spreads for each major forex pair.

In addition to this Pepperstone have award-winning customer support which includes phone support, live chat and email. For traders who like to conduct trades on the go, the Pepperstone mobile platform offers a seamless experience with optimum functionality.

Pros & Cons.

Pros.

Copy-trading with over 20 million traders Easy to use interface Excellent range of tools for advanced traders Large selection of investments Excellent customer service Tight spreads.

Cons.

Limited market analysis.

Pepperstone forex trading fees.

Minimum Initial deposit to start trading $200 Average spread EUR/USD – active 0.17 Average spread EUR/USD – standard 0.77.

Pepperstone features I like:

MetaTrader 4 MetaTrader 5 TradingView cTrader Automated trading Social and copy trading Standard stop loss Guaranteed negative protection Demo account Spread betting Active Trader is only available for professional clients Commission rebates for active traders.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.8% 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.

Plus500: Trading forex via CFDs.

At a Glance Pros & Cons Fees Features.

At a Glance.

Plus500 have a slick, intuitive web and mobile platform with an excellent range of tools to trade in various asset classes via CFDs. In terms of fees, the commission-free trading and low non-trading fees make this forex broker highly competitive.

For forex traders who conduct their trades on the move, the Plus 500 mobile app is compatible with most android devices and smartwatches. From here traders can access all the great functionality and in-depth analysis as well as execute trades and manage their trading accounts. There are also several risk management tools to help minimise losses.

Plus500 also offer a free demo account so traders can test the platform completely risk-free. There are over 60 forex pairs which can be traded as CFDs, with leverage for trading and 24/7 support.

Plus500 is a publicly-traded company that is listed on the London Stock Exchange (LON: PLUS) as well as being regulated by the Financial Conduct Authority to offer forex trading to UK traders.

Pros & Cons.

Pros.

Heavily regulated across the globe More than 2,500 CFDs across multiple asset classes Commission-free trading Easy to use platform.

Cons.

No customer support via phone Limited education.

Plus500 forex trading fees.

Plus500’s fees can be complicated.

Fee charges for Plus500 include: inactivity fee, overnight fee, currency conversion fee, and guaranteed stop fee.

We recommend reading our Plus500 review which includes a full breakdown of all Plus500 fees.

Plus500 features I like:

Guaranteed stop Trailing stop Stop limit and stop-loss price levels Traders sentiment Price alerts.

List of the best forex brokers UK: FCA Regulated.

Below is my authorised list of the best forex brokers for UK investors regulated by the FCA.

Forex Broker UK Residents Accepted Regulated by the FCA Minimum Deposit ActivTrades Yes Yes $500 Admiral Markets Yes Yes $100 Capital.com Yes Yes 20 City Index Yes Yes 100 CMC Markets Yes Yes $0 eToro Yes Yes $10 FOREX.com Yes Yes $100 FXCM Yes Yes $50 HFM (HF Markets) Yes Yes $5 HYCM Yes Yes $100 IG Yes Yes 250 Interactive Brokers Yes Yes $0 IronFX Yes Yes $100 LegacyFx Yes Yes $500 Ovalx Yes Yes $100 Pepperstone Yes Yes $200 Saxo Bank Yes Yes $2000 Swissquote Yes Yes 1000 Tickmill Yes Yes $100 Trade Nation Yes Yes $0 Vantage Yes Yes $200 XTB Yes Yes $0.00.

What is forex trading?

Forex trading is the largest and most liquid financial market in the world involving the changing of one currency into another, often with the anticipation of making a profit in doing so.

The foreign exchange market, also known as the FX market or forex market, is the global market for the exchange of one currency to another. This can be conducted for commerce, trading, or tourism reasons and forex is usually traded as exchange rate pairs. An example of an exchange rate pair or currency pair would be GBP/USD which is the pair for trading the Great British Pound against the U.S dollar.

In contrast to a stock market, with forex trading, there is no central marketplace. Currency trading is conducted electronically over the counter (OTC) via computer networks among traders from across the globe. This means the market is open 24 hours a day for five and a half days a week with price changes constantly moving. This allows for speculative opportunities for trading one currency against another for professional traders and retail investors.

How to trade forex.

There are two ways to trade currencies. The first is to earn the interest rate differential between two currencies. This works by buying the currency with the higher interest rate, and shorting the currency with the lower interest rate.

The other way to trade currencies is to profit from changes in the exchange rate.

These fluctuations in the price of a currency will depend on the supply and demand from banks participating in the spot market. These large trade flows prevent rogue traders from having any influence on the price of any given currency, which in turn helps to provide some transparency for investors.

MetaTrader 4 (MT4)

MetaTrader 4 (MT4) is a trading platform commonly associated with forex trading, but it can also be used to trade a range of other markets including indices, cryptocurrencies, and commodities, via CFDs.

See my guide to the best MT4 brokers offering the MetaTrader 4 forex trading platform.

What influences price changes in the FX market?

The value of any particular currency is based on supply and demand, however, there are some currencies such as the Chinese renminbi which have a fixed exchange rate. Currencies without a fixed exchange rate are known as floating currencies, and this is the case for most advanced economies, including the UK pound.

Floating currencies are constantly moving up and down in value against other currencies. These are usually small changes in movement, as small as a fraction of a cent higher or lower at the end of a trading day. However, this can change dramatically at the hands of extreme economic or political news. In this instance, there can ensue wild swings in price, such as a fall in value of 10% the day after the UK voted to leave the European Union. This encouraged traders to sell the pound quickly, decreasing its demand, and thus its value.

Another example of a market influencer are economic developments such as data that reveals the economy is growing faster than predicted, which in turn could lead to the Bank of England increasing interest rates. Higher interest rates lead to a greater return on your money and therefore increases demand, boosting its value. This is how financial markets ebb and flow in line with economic, financial and political news.

The best forex trading platforms will often include live news feeds in their suite of tools to enhance retail traders capacity for profit. This is also the reason why mobile trading is so important, so traders can react instantly to changes that may affect the price of currencies.

Why is FX trading so popular?

Forex trading is arguably one of the most popular forms of investment, with a daily average trading volume of about $5 trillion.

The main reason for this demand among investors is that forex is one of the largest financial markets in the world. The high volume and number of different currencies being traded offers a decent amount of liquidity.

However, the downside to this amount of liquidity that potential investors should be aware of is that, while you may be able to generate a return by trading forex, there’s always the potential of losing value on your investment, too.

Indeed, most platforms will report that the majority of retail investment accounts lose money when trading CFDs and forex.

There are things you can do to mitigate this risk in your investment strategy. For example, building up your knowledge of the market can help you make informed investment decisions.

Additionally, the fact that the forex market is available for trading 24 hours a day for five and a half days of the week means individual investors can react quickly to market influences, such as political and economic news.

Unlike stocks and shares, where time in the market is typically more of an influence to your success than timing the market, these rapid price movements mean gains and losses are immediate.

The forex market also benefits from leveraged trading, whereby investors can open a position on a larger portion of the forex market.

This increased exposure can see your gains magnified by this margin without you having to invest the same amount of money that would usually be needed for such a trade at the outset.

However, you should bear in mind that this also means that any losses you make will be magnified in the same way. Therefore, it is important to fully understand how leveraged trading works before you invest.

Remember: no investment is risk-free, and you may not get back as much as you invest regardless of the strategy you use.

Please note: The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Is FX trading legal in the UK?

Yes, FX trading is legal in the UK, although each platform will have its own level of regulation and this is always worth checking. On the whole, forex brokers in the UK are regulated by the FCA (Financial Conduct Authority) who are responsible for ensuring that all UK forex brokers are licenced and are providing a trading environment that is in the best interests of the traders that use it. Regulation by the Financial Conduct Authority also provides protection of your funds under the Financial Services Compensation Scheme (FSCS) which aims to compensate traders for the loss of their trading funds in the event the broker runs into insolvency issues.

In addition to this, the FCA requires that a multi-asset trading platform keep its operating capital separate to that of its traders to ensure this is protected should the platform experience financial difficulty.

However, it may be the case that some forex brokers are regulated by a similar body outside of the UK. These regulators will be responsible for the same level of regulation as the FCA and can include:

Securities and Exchange Commission (SEC) and the National Futures Association (NFA) in the USA Australian Securities and Markets Authority (ASIC) in Australia European Securities and Markets Authority (ESMA) in the European Union Autorité des Marchés Financiers (AMF) in France Comisión Nacional de Mercado de Valores (CNMV) in Spain The Financial Services Agency (FSA) in Japan The Securities and Futures Commission (SFC) in Hong Kong.

This level of regulation should be considered a minimum when selecting a forex trading platform in order to ensure correct levels of protection for you and your funds. This can be confirmed on the FCA’s own website where they supply a register of all forex brokers in the UK who adhere to these standards.

Despite these regulations, it is crucial to understand that trading CFDs, FX and cryptocurrencies comes with a high degree of risk , and providers are required to publish the percentage of retail investor accounts that lose money when trading CFDs on their trading platform.

How to choose the best trading platforms for forex.

Trading forex has become accessible for all levels of experience, due in large to the plethora of forex brokers and forex trading apps available. This is good news for retail investors who can take advantage of trading platforms in an increasingly competitive forex trading industry.

However, when considering any trading platform for forex and CFD trading, there are some key elements that you should take into consideration.

Regulation.

As mentioned previously, the gold standard for regulation within the United Kingdom is the Financial Conduct Authority. It is always advisable to check that any of the forex trading platforms you are considering have this level of regulation. The best way to check this is via the FCA website where there is a published list of FCA regulated forex brokers.

Trading Costs.

Platform costs and trading costs can start to erode away at your gains and it is therefore important that the UK forex broker you are considering is competitive in this respect. You will need to be aware of commissions and spreads.

Commissions are usually calculated as a percentage of the spread. The spread is the difference between the bid and ask price of a forex pair. If the broker does not charge a commission then it is worth checking the spread as this is often where they will make their money.

Spreads are often depicted as a pip. A pip is the minimum unit of price change in forex. Look for a forex broker that has tight spreads.

Currency pairs offered.

There are a vast number of currency pairs available, but not all UK forex brokers will offer all the pairs. The most common pairs trade with the greatest liquidity and include EUR/USD, GBP/USD, USD/JPY and USD/CHF.

Trading platform.

Check the reviews for CFD & forex trading platforms on sites such as Trustpilot to ensure the FX broker you are considering is reliable and trades can be executed with ease. Usability and layout are all important elements, as are the tools such as automated trading options, strategy builders, and alerts.

A demo account offers an opportunity to get to the grips with the platform before risking any of your own funds. Demo trading accounts will usually offer a sum of virtual money with which to trade.

Minimum deposit.

Some forex trading accounts will support a low minimum deposit, however other platforms will require a large minimum deposit. Due to leverage, the buying power is far greater than the minimum deposit, and therefore you should ensure you are aware of the minimum deposit and whether that is suitable for your trading requirements. This is especially true for beginner traders who may not wish to commit to a large investment amount.

Deposit and withdrawal times.

It is wise to check the deposit and withdrawal policy on any given trading platform as times and costs can vary significantly. Funding can often be done online using a credit card, ACH payment, PayPal, wire transfer, or bank cheque. Withdrawals are often done using cheque or bank transfer. Check the average withdrawal times as well as customer reviews to ensure the trading platform is operating within their published times.

Customer service.

FX trading takes place 24 hours a day for five and a half days a week. Therefore, many brokers will offer 24 hour customer service so you can access help when you need it. However, this is not always the case and is therefore worth checking. Also check the method of contact the forex brokers are offering. These should include phone, email, and live chat.