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Top Forex Brokers in the UK for FX Trading

UK flagBritain is known for its long and varied history of trade and foreign currency exchange. Known to many as the country of merchants, the citizens of Britain have always considered trade as the best way to increase wealth.

It is to be noted that currencies are one of the most traded and one of the sought after goods in the entire world. London is known as the Mecca of financial centre globally because of its historical circumstances and geostrategic position.

The Pound Sterling is regarded as one of the oldest known currency that is still in use and is the 4th most traded currency in the entire world next only to the United States Dollar, the Japanese Yen and the Euro. In addition to this, Pound Sterling is also an important reserve currency.


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The value of Pound fluctuates from time to time concerning other currencies of the world, and some people have made a significant amount of money due to the fluctuations.

In addition to this, United Kingdom is known as a nation with the low tax rate on trade and investment and liberal legislation. Hence, it is not a matter of surprise that Forex Trading is one of the most popular forms of trading for the Brits.

UK-Regulated Forex Brokers

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FCA and the Legal Framework

All the Forex related trading in the UK are under the control of Financial Conduct Authority (FCA) which is the successor of FSA or Financial Services Authority. This organisation was founded in the year 2013 with an annual budget of over £450 million. It is an independent organisation and does not come under the purview of UK government. The budget is provided in the form of membership fees by the companies that are a part of the financial services industry. The role of FCA and its powers are very substantial.

    Regulates the marketing of financial services and related products

    Investigates companies and individuals if there is any suspicious or fraudulent behaviour

    Can prohibit certain products up to 12 months with the provision of a complete ban

    Sets the minimum standards and requirements for services and products

    Instructs companies for changing promotional offers if they are misleading or contradictory

As a result of which, the entire UK market is completely regulated and opening an online Forex account is not a difficult task. The number of trades is rising with the passage of every second. However, there is still a lot of interest among the fraudulent companies who try to entice innocent traders and convince them to invest their money in illegal trade activities.

The FCA has issued a clear warning to all the trades in the UK to keep wary from the unauthorised brokers and try to stay away from illegal websites at all costs. Some companies work to offer FX trading with unrealistic gains and guaranteed returns which are practically impossible. This sort of things is a clear indication that the company is of fraudulent nature. But if you see guarantee written on the website of the FX broker, then it is an entirely legal company.

All the Forex brokers that are based in the United Kingdom need to obtain the license from FCA. However, there are a few numbers of websites that claim to be found in UK and provide with a valid address with a posh London code to make people believe that it is a company based in London. In fact, the reality is that such companies have little to do with UK and are not registered with the address they claim to the traders.

Such kind of companies offers the best exchange rate as compared to the competitors in the market, and many traders do make some huge profits initially. But with the passage of time, they start experiencing unpleasant things like for instance account closure and suspension. By the time the trader wants to lodge complain, they realise that it is an illegal company and was not permitted by FCA to carry out Forex trade in the first place.

But by then the trader concerned has made a colossal mistake. The FCA makes endeavours for identifying and preventing such kind of websites from offering such type of trade to the citizens of UK. In most of the cases, the fraudulent brokers would use the actual name and registration number of the genuine broker for convincing potential traders. At any point in time, if you suspect any illegal activities of your broker, you need to contact FCA asap. The first step any trader needs to take is to make sure that the broker with which they are dealing is a legitimate one.

Offers in Forex Trading

The very first thing as a trader one need to check out is the legal status of the Forex broker. There are a few other things that need to be taken into consideration especially the ones related to the trading offers.



    Currency Pairs

It is better if the chosen Forex broker is offering more currency pairs. If you want to stick to a particular currency type or restrict trading to specific pairs, then there is no problem. But the number of currency pairs give you a comprehensive option and can broaden your horizon.

Some Forex brokers offer 30 currency pairs while there are some that give the flexibility to trade in 60 different pairs. It means that it would not be a difficult task to choose a currency pair in which you are interested in putting your money. Typically better spreads are provided on the primary currencies because they are the most traded ones. If you understand the market and can analyse the movement of less influential coins, then you can book nice profit for yourself.

In countries like the US, there is a limit on the leverage that Forex brokers offer. But there is no such limit in UK market, and the leverage ratio can go as high as 1000:1. It means that you can book a profit of £100,000 by investing £100.

You will be able to increase your profits significantly with the high leverage ratio, but you should also remember that you will have to incur substantial losses if the trade goes haywire. It is essential to understand how the leverage ratio works and how much amount should be invested. It is always recommended not to get influenced by high leverage ratio.

Most of the brokers in the Forex market does not charge any fees or commission on the trade deals. Instead, the profit is earned through spread which you should know is the difference between cost price and selling price of a given pair.

If there is a tighter spread, it means you will be able to earn a lot of money and lower the chances of losses. All the leading Forex brokers offer competitive ranges to the traders because they know traders want to compare the spreads with other brokerage firms. As a trader, there is no harm whatsoever in maintaining multiple accounts with different brokers. In fact, it gives you the flexibility to trade one currency pair with one broker and the other one with someone else, depending on the kind of spread they have to offer.

Other Important Aspects

In addition to the most critical aspect of FX trading that includes licensing of broker and specification of trade offered to the customer, there are a few other things that have to be taken into consideration. This thing might sound unimportant when compared to provided pairs and license, but they have their importance.

    Trading Platforms

    Payment Methods


    Customer Support

    Learning Resources

These days, the brokers are offering multiple trade platforms to the traders concerned. In fact, the trading platform has become mobile friendly and come with some exciting features and other options suitable for the experienced traders.

Many brokers offer First Deposit Bonus or No Deposit to all the new customers who sign up for the very first time. Some other brokers provide a bonus and other promotional features on a regular basis that can be highly beneficial.

If a Forex broker is having FCA authorisation sign on their website, it is a clear indication that all the financial transactions are secure. However, there are differences regarding accepted methods and speed at which all the transactions are settled. Some brokers charge some amount of fees on deposits through some of the many accepted methods.

Finally, all the trusted and reliable Forex brokers give traders a fantastic opportunity to learn more and grow as a professional. They make sure that their trader is getting better with every trade and for this, they provide some different learning materials that includes videos, ebooks and webinars.

Frequently Asked Questions

1. Which authority is responsible for regulating Forex trading in the UK?

The Financial Conduct Authority of FCA is the governing body that looks after the regulation activity of all the brokers in the UK. It is an independent organisation that has an official remit and a range of tools at its disposal.

2. Do we only allowed to trade major pairs or other currency pairs that include the Great Britain Pound?

No, you will have access to some different currency pairs at your disposal. In fact, all kinds of exotic currency pairs are also available that does not include any major or influential currencies.

3. Is there an upper limit for the leverage ratios which brokers can offer?

Unlike the United States (US) market, there is no restriction whatsoever in UK market when it comes to leverage ratio. Traders can utilise trades with a high leverage ratio that can be as high as 1000:1.

4. Do UK's Forex trading brokers charge any trading or administrative fees?

Most of the reliable and trustworthy UK Forex brokers do not charge any fees or commission on the trade. In fact, all the profits are booked through spreads.

5. What are the Forex trading market hours for United Kingdom's brokers?

The trading hours are completely dependent on the type of currency pair. Different markets have their opening and closing time. You will, however, have a few trading options at any time in daytime through all the working hours in the week. You should know that the Forex market is closed on weekends.

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