Best UK Forex Brokers That You Can Trust

The Forex industry in the United Kingdom is perfectly legal and regulated by the FCA (also known as Financial Conduct Authority). This regulatory body operates independently and controls all financial services in the country, ensuring the protection of customers and generally, keeping the industry safe and stable.  The FCA is the main reason why trading Forex in the UK is one of the most popular activities as the rights of clients are highly protected.

Traders from the UK have to pay taxes, however, it depends on what kind of trader you are. Generally, you can either be tax-free or subject to Capital Gains Tax which goes up to 20%.

The local currency of the country – GBP plays a huge role in Forex as it is the 4th most popularly traded currency and directly represents the economy of the country, which is obviously very strong. Considering the fact that the British Pound is very fluctuating after Brexit, makes it an attractive choice for investors around the world.

Currently, the leverage ratio in the country is restricted to 30:1 for retail traders but professional traders can enjoy maximum leverage of 500:1.

It will be no surprise to say that traders from the UK have the privilege of using some of the most popular payment methods including debit/credit cards, e-wallets, and most importantly – PayPal.

List of the best Forex brokers in the UK

Forex is one of the largest and most dynamic financial markets in the United Kingdom. That’s why hundreds of brokerage companies appear on the market every year and traders from this country get more and more diverse options for which broker to choose. Therefore, it is extremely important to identify the most beneficial and advanced trading platforms and the best offers from the brokers. Below is the list of the top Forex brokers in the UK.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4, MT5, WebTrader

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

SAXO Bank

SAXO Bank Forex Review

Minimum deposit

USD 5,000

Regulation

FINMA, FCA, ASIC, FSA, MAS, AFM

Bonus

N/A

Maximum leverage

1:30

Year founded

1992

Trading platform

SaxoTraderGo, SaxoTraderPro

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:400

Year founded

2010

Trading platform

MT4, MT5, cTrader, TradingView

FXRoad

Review of FXRoad – Broker with Superior Islamic Accounts

Minimum deposit

250 EUR

Regulation

FSA (Seychelles)

Bonus

None

Maximum leverage

1:200

Year founded

2023

Trading platform

FXRoad web & mobile platforms

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Who Regulates Forex brokers in the UK?

When it comes to Forex brokers in the United Kingdom, one over-arching regulatory body is in charge of controlling the broker houses that are registered on the British territory. The name of that agency is FCA, which stands for Financial Conduct Authority. This regulatory body was granted its royal assent in 2013, which means that for the last couple of years, all operations and activities in the Forex market have been monitored by the FCA.

FCA

best forex brokers uk

Since this agency operates independently, i.e. it is not controlled by the government, FCA is financed by charging fees to UK FX brokers. Even with such a structure, it is estimated that the annual budget of this organization is somewhere around £450 million, which is an impressive amount by all means. It speaks a lot about the significance of the organization and the amount of attention granted to it.

The FCA’s preceding agency, called FSA (Financial Services Authority) was replaced by this modern version during the reforms that took place in 2013. In 2015, another slight modification of the system took place, and FCA created a separate regulatory structure, which was named PSR (Payment Systems Regulator). As the name clearly suggests, this agency focuses on banking methods that are used in the Forex trading market. The role of the FCA is vital in keeping the forex trading market under control. Forex market needs monitoring in every part of the globe since the risks of losing the financial resources are already too high, and having a regulatory body with such integrity is a major factor for the best Forex brokers UK as well.

Other powers vested in FCA include the “power” to regulate the conduct of retail brokers in the UK. Also, it has the right to specify the standards of operations for those broker houses, i.e. to place direct requirements on how these companies should treat their customers and which actions they must take to protect the safety of their client’s funds and personal information. Of course, just like any other “police unit” in the world, FCA is entitled to conduct investigations and audits about certain activities and operations in the Forex trading scene, and if some irregularities appear – this regulatory body can issue a temporary or a permanent ban. Evidently, the role of the FCA of the utmost importance for the survival of the entire foreign exchange market in the UK, and that is why UK Forex trading brokers are eager to comply with the necessary rules and regulations.

Trade with an FCA-regulated broker – HotForex

How is Forex trading taxed in the UK?

best forex broker ukAs in the majority of countries around the world, Forex trading is also taxable in the UK. If you are a Forex trader and your annual income is less than 50,000 GBP, then you have to pay 10% of your profits. Total income of more than 50,000 GPB will result in a Capital Gains Tax of 20% in total.

In case you are considered a part-time spread betting trader, whose main goal is not making profits for a long period of time, then congratulations, you are tax-free and don’t have to share anything with the government.

It is important to note that the amount of tax you pay can depend on many other things as well. The amount can vary – for instance, if you are short time trader (speculator) you will have not have any debt to anyone, while in other cases (being an investor) you will have to pay taxes on the profits you make. That’s why we advise you to do research so you are fully aware of the tax implications that you are going to face after your trading is done.

Are local currency pairs available?

best uk forex brokersConsidering the fact that GBP is one of the strongest currencies in the Forex market, you will be able to find accounts/currency pairs in GBP with the majority of reputable brokerage companies, which is very good news indeed. The pound is a floating currency which makes it possible for customers to buy/sell the currency in an international market without any difficulties.

The British Pound has one of the highest values and is pretty popular among investors due to several important factors. You will definitely know that London is the world’s biggest financial center and this fact alone already contributes a lot to the high amount of the Pound. The country has the fifth-largest economy, which is mostly dominated by the service sector. Of course, there also are other factors that affect the strength of GBP such as monetary policies controlled by the BoE (the Bank of England), GDP, inflation, and political news.

Start trading GBP with AvaTrade

Is there a cap on leverage for the UK Forex brokers?

Yes, Forex companies in the UK, have a cap on leverage. The retail clients are restricted to 30:1 leverage, while other kinds of traders can use the maximum ratio of 500:1. This is due to the fact that high leverage can be quite risky and is a double-edged sword. While it is true that professional traders often make huge profits from it, they also lose all their funds quite frequently. That’s why the majority of financial regulatory bodies put restrictions on it.

Wherever you trade, we advise you to stay within the limits. The industry’s standard is somewhere between 200:1 and 300:1, meaning that it might not be a good idea for you to go above that, especially with unregulated Forex brokers as there is a high chance that you will get scammed.

What Payment Systems are available in the UK?

forex companies in ukThe UK is a perfect choice if you wish to have a lot of payment methods at your disposal. The clients have the possibility to choose from Visa, Mastercard, Neteller, Skrill, and Wire transfers. However, it is important to note that wire transfers are not as comfortable as other methods as they can be more expensive and slower, which makes your trading experience not very enjoyable.

The most popular payment system with Forex brokers in the UK remains PayPal due to the simple fact that it is fast and easy to use. The usage of this provider in Europe is highest in the United Kingdom and Forex trading takes a significant part of it. It is important to note that each payment method comes with its own specifications and requirements. For instance, PayPal mostly offers the fastest transaction speed that can go up to 1 working day. Visa/Mastercard can go up to 5 working days, while Wire transfers take 10 working days in total. Making deposits and withdrawals sometimes can come with additional fees, so it is never a bad idea to check terms and conditions before choosing a specific payment system for your future transactions.

Trade on AvaTrade with PayPal

What should you look out for when trading Forex in the UK?

Trading with currencies can be a highly exciting and profitable activity, and that is why Forex brokers from the UK can be a great solution for anyone interested in this type of financial investment. However, it is important to take certain precautions when embarking on this adventure, and the turbulent seas of the financial world may not be everyone’s cup of tea. But, if you pick the right company and use the appropriate tactics – there is no reason why your money should not “grow” at a very fast rate.

The Forex market is quite confusing and difficult when you are not familiar with the industry and don’t know all the basics that you might need in the trading process. One of the most important things is to know the basics and that’s why we have made multiple guides for you to check your knowledge. You can either read our article for beginners in the Forex market or how to start Forex trading. Making multiple trading strategies can also help you perform better and make more profitable trading decisions.

Other than that, it is also a good idea to go for platforms that offer nice customer service, which directly reflects the quality of a specific platform. While trading, there is a high chance that you have some issue with a specific instrument and the availability of a helpful support team can easily help you avoid negative consequences. Mostly, top Forex brokerage companies have a live chat option integrated into their webpage, giving you the possibility to get in touch with the company in a matter of seconds.

FAQs on top Forex brokers in the UK

Is Forex trading legal in the UK?

Forex trading is more than simply legal in the United Kingdom. The market is highly regulated and one of the safest places for Forex traders worldwide. The UK has produced a leading regulatory authority the Financial Conduct Authority (FCA) which is famous for its exceptional regulatory framework and high-class functioning to monitor the local trading markets. The FCA license is recognized in numerous countries worldwide and the brokers with the authorization from the FCA can freely offer their services to the residents of the European Union.

Do you pay tax on Forex UK?

It depends on how you trade Forex. The simplest speculating, such as spread betting is free from any taxes. However, usually, most Forex traders need to pay income tax. If you are eligible for tax on personal points then you have to pay Capital Gains Tax at the end of every year.

How much does a Forex trader make in the UK?

On average, those who trade with the top Forex brokers UK and have done their research on the latest trends, trading strategies, and analysis of the Forex market can earn more than just for living by trading currency pairs. It always depends on your trading skills and expertise in the end, not to mention the quality of the brokerage company that you are dealing with and the trading platform.

How to start trading with UK brokers?

A financial arena is a place that will show you no mercy if you make just one wrong step, and lots and lots of people have lost their hard-earned funds because they entered the “battle” unprepared. However, if you do your homework and learn a thing or two about the ways of the Forex trading world and about the best UK Forex brokers you could join the large community of traders who have made a fortune by accurately predicting the fluctuations of currency pairs. Foreign exchange can be a lucrative and profitable endeavor, but it is vital that you sign up with a broker company that is reliable and legitimate. In other words, you need to look for a regulated broker, and licenses and credentials are immensely important in this sector.

What are the important features of UK Forex brokers?

It is highly important to work with a safe and professional broker since this may save you from a lot of problems and complications later on. What this means is that you should always sign up with brokerage companies that have a seal of approval from FCA visibly displayed on their website. If the permit is not there – you are dealing with an unregulated broker “organization,” which may cause a whole series of issues once you deposit your hard-earned money. Besides safety, there are some other characteristics that you should be considering such as trading platform, customer support, and available markets.