UK Forex Brokers

The United Kingdom has always been very proud of its history and tradition, and trading is a vital part of their national identity. As a country of merchants, UK once “ruled the world,” more or less, and their global presence has left a significant mark on this planet. Because of all these factors, financial institutions from Britain are well-known throughout the world, and traders from all sides of the globe are willing to invest their funds in these companies. UK Forex Brokers can offer a lot of features and services to prospective investors, and forex trading is an area that shows a constant rise in popularity and numbers of traders.

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.

Forex trading at a glance

UK forex brokersFor those of you who are not entirely familiar with the concept of forex trading, we shall make a small digression and explain the term in a bit more detail. By doing so, you will have the opportunity to fully comprehend the mechanics and processes that govern foreign exchange market in the UK, as well as learn more about Forex Brokers England. First of all, forex trading is nothing else than speculating on the values of currencies, and what this means is that traders are supposed to make an accurate prediction about the future movement of prices of these currencies. Because of this fact, the global foreign exchange market is also frequently called currency market, and these names are pretty self-explanatory.

Another important characteristic of this trading method is the fact forex trading is enormously popular all over the globe. Even though most people are unable to grasp the actual “size” of this market fully, the fact that the daily traffic in forex trading exceeds $5 trillion is enough to make everyone amazed.

This impressive figure is a result of several factors, predominantly the high liquidity of the market. In other words, traders have a lot of opportunities to invest their funds since the prices of currencies are always fluctuating. Forex Brokers UK are not exempt from these changes, and investors can place their trades 24 hours a day, five days a week.

How to start trading with UK brokers

If these huge numbers have perhaps triggered your interest, there is a high chance that you would like to start trading as soon as possible. The Forex market can be a great place to start, but newcomers should always be careful when entering a new world such as this one. 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 you homework and learn a thing or two about the ways of the forex trading world and about United Kingdom FX Brokers, you could join the large group of individuals 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.

Forex trading in the UK: licenses and regulations

When it comes to FX Brokers UK, 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 three years, all operations and activities in the forex market have been monitored by the FCA.

FCA Regulation

Since this agency is independent, i.e. it is not controlled by the government, FCA is financed by charging fees to its members. 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.

The role of the FCA is vital in keeping the forex trading market under control, and having a regulatory body with such integrity is a major factor for the UK forex brokers as well. 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.

Other powers vested in FCA include the “power” to regulate the conduct of Retail Forex Brokers 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.

The most important features of UK Forex brokers

As we already mentioned, it is highly important to hire 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 when looking for a suitable forex broker. Here are the most important ones:

Trading platform

Software solutions are more and more relevant in the modern world, and contemporary broker houses are simply “forced” to keep up with the trends. English forex brokerages are using high-tech trading platforms, in most cases, but prospective investors should ask around about the quality of the software before signing up with the broker in question. The quality of execution is critical in making a lot of successful trades in a short time frame, and this factor can make a significant difference in the long run.

Forex bonuses

The vast majority of English Forex Brokers are using bonuses as one of their primary marketing “weapons.” Promotions, gifts and educational materials are activated as a tool that would, hopefully, attract the customers and later keep them loyal to the company. Over the years, various types of bonuses have been invented, but most of them come with “demanding” terms and conditions.

UK forex market

For instance, you have to fulfill a particular trading volume to release the bonus, and this number of investments can often exceed the value of the “gift” in the first place. The so-called “no deposit”, “deposit”, “welcome” bonus, analyses, and webinars will await you with the most of the top UK forex brokers, but the same principle applies here as well – always do your research and be careful when putting your name on the dotted line.

Available markets

Not all broker companies will offer the same trading opportunities, and that is another feature that differentiates them. For instance, some of them will offer around 15-20 currency pairs while others will provide more than 30 pairs and all of the way up to 60 in some cases. Of course, most investors will not need so many options, but it is sometimes good to have them available.

Customer support

Just like in any other business, forex trading is an area where customer satisfaction should be the number one priority for any enterprise. If a company has a dream of becoming the best UK Forex broker, it must offer exceptional customer support, and this condition is simply nonnegotiable. Clients have to be provided with several means of communication by which they can reach the support teams, and most broker houses offer phone, live chat, and email as communication channels that are available 24/7.

The final word

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 investments. 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. After all, the fundamental idea of foreign exchange is to make profits, and who knows, maybe you will be one of the lucky ones.