Forex Brokers UK 2020 Updated Review

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Over the years, the United Kingdom has evolved as a global financial hub and is currently the fifth-largest economy. If a Forex broker is to be accepted by the UK Forex and CFDs (Contract for Differences) clients and their traders, they should be authorized by the Financial Conduct Authority (FCA) which is considered as the financial regulatory body in the UK. Forex trading in the UK has several outstanding brokers that are known for their transparency, reliability, and quality.

Best Forex Brokers in the UK

There are several types of forex brokers that are available in the United Kingdom to help the forex traders in the UK. Trading in forex in the UK is always coming up with new forex brokers every time, thus making it difficult for the traders to choose among the available brokers. A forex broker offers several features and a trader should be up to date about the latest events that are happening in forex trading.

Below given is the list we have compiled on the best Forex brokers in the UK –

  • IG
  • Saxo Bank
  • CMC Markets
  • Dukascopy Bank
  • TD Ameritrade FX
  • City Index
  • FOREX.com
  • XTB X-TRADE Broker
  • FXCM
  • XM.com
  • IC Markets
  • AxiTrader
  • Oanda
  • market.com
  • eToro
  • IQ Option
  • LONDON CAPITAL GROUP (LCG)
  • Pepperstone

IG

IG - Leading Forex Trading PlatformIG – Leading Forex Trading Platform

  • In 1974, IG was established as one of the leading CFD and best forex brokers in the UK, and also globally. IG is regulated by top-level regulators such as the Financial Conduct Authority (FCA) and the Federal Financial Supervisory Authority. Moreover, IG Forex broker is listed on the London Stock exchange.
  • The trader using IG can take their pick from the 80 currency pairs available for trading. Some of the important pairs are GBP/USD, HUF/EUR, and several more. Moreover, the users can trade with the forex pairs through spread bets or CFDs.
  • One of the best features of the IG Forex broker is that its web-based platform is very user-friendly, well designed, and can be easily customized. Besides, users can find many useful and informative educational tools that can help them learn the nitty-gritty of trading. Depositing and withdrawing funds are very easy and they offer several options for the trader.
  • The trading fees of IG are very high for CFDs and stocks. The product portfolio is very limited, and in most of the countries, this forex broker offers only options and CFD trading. Further, customer support needs improvement.
  • The trader should remember that CFDs are complex instruments and their capital is at risk. 76% of CFDs retail investor accounts lose money when trading CFDs and spread bets with this provider.
Pros Cons
Top-class web-based platform Restricted product portfolio
Offers many withdrawal and deposit methods Customer support needs to be improved
This broker offers excellent educational tools for the user to access High fees for stocks and CFDs

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Saxo Bank

Saxo Bank Worlds Best BrokerSaxo Bank – World’s Best Broker

  • Founded in 1992, Saxo Bank is a fully licensed and regulated investment bank in Denmark, and it provides online trading and investment services. Saxo Bank is regulated by financial authorities from across the globe, which includes the UK financial conduct authority, and the Danish financial services agency (FSA).
  • Saxo Bank provides its services globally. In various parts of the world, its subsidiaries are found as a separate legal entity. Saxo Bank offers excellent pricing for the benefit of its traders. Saxo Bank is attributed as the number one broker to trade CFDs and Forex while at the same time securing the top place in the fees and commission category.
  • Some of the account types offered by Saxo Bank are the entry-level classic account, which requires a minimum deposit of $10,000 and the platinum account which requires a deposit of $200,000.
  • Saxo Bank offers high-quality trading and research tools in its mobile app, thereby the trader can trade while on the go — a feature not offered by most other brokers. It also offers an excellent web-based trading platform. Further, it offers a wide range of product portfolios, which meets the expectations of the experienced traders.
Pros Cons
The platform is easy to use The minimum deposit is high
Offers high-quality research materials Does not offer 24×7 live chat
Extensive product portfolio High fees for bonds, options, and futures

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CMC Markets

CMC Markets - Join Award-winning Broker!CMC Markets – Join Award-winning Broker!m

  • CMC markets can be described as a CFD and multi-asset class spread betting broker having an experience of 30 years. It is regulated by the FCA, the UK Financial Conduct Authority, which offers segregated funds and high-level safety and security. Moreover, the CMC group can be described as a publicly-traded company listed on the London Stock exchange.
  • If the users want to participate in spread betting, this forex broker has a wide range of products, automated execution, and tight spreads, for them. The traders of CMC Markets can leverage to go short or long in trades in forex, cryptocurrency, index, commodity markets, and treasury.
  • Pricing offered by CMC Markets is favorable and is subject to a few taxes when compared to other financial instruments. There are no commissions and fees and this broker earns its income through the spreads.
  • Traders who want to try spread betting because of the unique tax benefits offered for UK residents should choose CMC Markets.
  • Several of CFDs retail investor accounts lose money when trading CFDs and spread bets by using this provider.
Pros Cons
Traders can leverage more than 9000 instruments that cover several asset classes. This platform is not suitable for beginners
This broker offers a high-class trading platform
It provides analysis and news from their in-house market professionals

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Dukascopy Bank

Dukascopy Bank - Best UK Forex Brokerage FirmDukascopy Bank – Best UK Forex Brokerage Firm

  • Dukascopy Bank was founded in 2004 and is based in Geneva. It offers a wide range of banking services and large brokerage operations, and it is focused primarily on CFDs (contract for difference). Dukascopy owns and operates the unique Swiss FX Marketplace (SWFX). There are different divisions in Geneva, Switzerland and it offers services for Switzerland and the rest of Europe.
  • This UK forex brokerage firm offers higher than average trading fees and costs and a small product catalog. Also, it offers an active traders discount program, which is an upgrade to lower spreads and commissions. This forex trading platform is at par with Metatrader 4, which offers higher commissions and several currency pairs.
  • Dukascopy Forex is licensed in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA) and the European Union through the Financial and Capital Market Commission of Latvia.
  • Dukascopy Bank offers a small product catalog only with 61 currency pairs, 24 indexes, 500 plus shares, CFDs, commodities, and also two cryptocurrency CFDs. Forex is traded through CFDs and this brokerage does not offer future contracts, spot markets, option coverages, and forward contracts.
Pros Cons
Offers a world-class trading platform The trading costs are higher than average
This brokerage provides advanced charting techniques unlike other brokers Does not offer two-factor authentication
Android and IOS sync well with desktop Offers smaller product portfolio

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TD Ameritrade FX

TD Ameritrade - Join and Earn More!TD Ameritrade – Join and Earn More!

  • In 1978, TD Ameritrade was established, and it is one of the largest US-based stock brokers. Also, it is regulated by top-level regulators such as the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC) and Financial Industry Regulatory Authority (FINRA).
  • TD Ameritrade offers free ETF stock trading. Also, bonds, forex, and option fees are very low. On the contrary, fees for mutual funds are high.
  • Currently, TD Ameritrade is one of the largest online forex brokers, and it has built a solid base with traders and investors.TD Ameritrade offers its customers several trading features and their services have benefited the users. They can be seen on several social media sites, which include Facebook and Twitter.
  • TD Ameritrade offers several trading platforms that are aimed at traders having different levels of experience. It offers several exhaustive educational tutorials to help beginners become more confident and let them explore several asset classes in due course of time.
Pros Cons
Offers good customer service Slow account opening process
World-class desktop trading platform The traders can trade only in US markets
Offers free ETF and stock trading Non-availability of electronic wallets and credit and debit cards for money transfer

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City Index

City Index - Global Forex and CFD BrokersCity Index – Global Forex and CFD Brokers

  • City Index was established in 1983, and it is one of the leading global forex and CFD brokers. Besides, City Index is regulated by top levels of financial authorities such as the Australian Securities and Investment Commission, Financial Conduct Authority, and Monetary Authority of Singapore.
  • City Index’s parent company is Gain Capital which is listed on the New York Stock Exchange (NYSE). It is a major advantage in terms of security and safety as the City Index forex broker releases transparent financial statements regularly.
  • City Index forex broker offers leverage and low fees for the forex, index CFDs, and stocks. But there is an inactivity fee and the stock CFDs fees are very high.
  • City Index’s non-trading fees such as withdrawal fees are very low. The account opening process with City Index is smooth and fast, and when the trader starts trading they can use exhaustive and high-quality research tools.
Pros Cons
Hassle-free and almost instant account opening process CFD and stocks fees are high
Offers exhaustive research tools The desktop platform is not user-friendly
Low fees for index CFDs and forex Restricted product portfolio

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FOREX.com

Forex.com leading brokers of forexForex.com leading brokers of forex

  • Forex.com was established in the year 2001 and is one of the leading brokers of forex. Forex.com is the brand name of Gain Capital which is listed on the New York Stock Exchange. Besides, forex.com is regulated by various financial authorities which include the UK or the US Commodity Futures Trading Commission, and the Financial Conduct Authority (FCA).
  • Forex.com earned top awards for several categories in 2020 which include commissions and fees, the offering of investments, professional trading, education, easy to use, crypto trading, and several more. As per several reviews, forex.com is a good option for all types of traders.
  • Forex.com is used by casual traders and their web-based platform is very easy to navigate and browse various markets, analyze charts through trading Central, conducting research, and also to execute trades.
  • The alternative web platform of forex.com is a white-labeled version of Trading View, a popular charting web app used for technical analysis that offers around 67 indicators. Forex.com offers everything needed to trade forex, such as several currency pairs, more technical research tools, and low forex fees.

Pros Cons
Offers several types of currency pairs The desktop platform needs improvement
Technical research tools are diverse Stock CFD fees are high
Forex fees are low Does not offer many products for trading

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XTB X-TRADE Broker

XTB - Regulated BrokerXTB – Regulated Broker

  • XTB is headquartered in London, and it is a global forex and CFD broker. This company is regulated by various financial authorities globally, such as the UK Financial Conduct Authority and the Polish Financial Supervision Authority. XTB is listed on the Warsaw Stock Exchange (WSE).
  • XTB charges very low fees for stocks, indexes, CFDs, and forex. Deposits and withdrawals are free and the trader can use multiple options which include electronic wallets, credit or debit cards. The account opening process is quick and user friendly.
  • XTB offers leverage and users can have access to Forex, shares, metals, commodities, indices, and also cryptocurrencies. It is regulated by several authorities. Its history goes back to Poland and it is publicly listed on the WSE.
  • XTB offers the users guaranteed stop loss, negative balance protection, account insurance, and industry average security.
Pros Cons
Fast and free withdrawal and deposits Customer support needs to be improved
Account opening process is fast Stock CFD fees are high
Forex and stock index CFDs fees are low Restricted product portfolio, mostly Forex and CFDs

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FXCM

FXCM trading platformFXCM trading platform

  • FXCM was founded in 1999, in the United Kingdom. The FXCM brand is managed by FXCM Limited. It is an established international online CFD and Forex brokerage firm.
  • Forex capital market or FXCM is a Forex broker based in the UK offering CFDs and Forex. Its main shareholder is the Jefferies financial group.
  • FXCM brokerage has several offices in many countries like South Africa and Australia. This broker is one of the most popular and leading online forex brokers and currently caters to the needs of new and experienced traders.
  • FXCM brokerage offers online education and training to both new and experienced traders in the form of live webinars and news articles. It offers leverage to users and FXCM market insights and also offers a wide range of trader tools like FXCM apps, FXCM plus, live trading signals, and online market scanner.
Pros Cons
Several trading tools are provided for free Restricted product portfolio
Minimum deposit requirement is low This brokerage does not accept US clients
Offers exhaustive research and educational materials

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XM.com

XM - Global Forex And CFD Brokerage FirmXM – Global Forex And CFD Brokerage Firm

  • XM’s parent company Trading Point Holding is a global forex and CFD brokerage firm established in 2009. Moreover, Trading Point Holding has two brands such as trading.com and XM.
  • XM is one of those forex brokers which are available worldwide and is regulated by top tier financial authorities like the Australian Securities and Investment Commission, Cyprus Securities and Exchange Commission, and International Financial Services Commission of Belize.
  • XM offers low withdrawal and CFD fees. Opening an account with this broker is very fast and user friendly and it offers several educational tools like a demo account and webinars.
  • XM offers two trading platforms that can be accessed from the demo as well as real accounts. It also offers multi-award-winning MetaTrader 4 and it is an exclusive Forex trading platform that supports stop, market, limit, and trailing orders where the users can leverage on.
Pros Cons
CFDs and withdrawal fees are low This brokerage firm charges inactivity fees
It provides the fastest trading engine currently in the industry by offering 1 million transactions per second For traders who wants to withdraw fiat currency, there is no option for anonymity
Fast and easy account opening Forex fees are average

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IC Markets

IC Markets - Best Forex CFD ProviderIC Markets – Best Forex CFD Provider

  • Founded in the year 2007, IC Markets is an Australian FX broker. Moreover, IC Markets is regulated by a top-level authority like Australian Securities and Investments Commission (ASIC).
  • IC Markets is one of the best online brokers that are available for the users, as it offers the highest leverage, low fees, competitive spreads, and several more.
  • IC Markets users can leverage on free high-quality platforms to trade for the benefits of the trader. By providing 3 trading platforms, it offers the users to choose several tools and technical analysis to place the trades. Moreover, IC Markets offers low forex fees and it is easy to open an account. The deposit and withdrawal methods are user-friendly and free as well.
  • IC Markets offers day traders a wide range of assets and trading instruments. Users of IC Markets can leverage more than 80 instruments which include CFDs, indices, commodities, stocks, futures, precious metals, and currency pairs. It also offers cryptocurrencies like Bitcoin and Ethereum.
Pros Cons
This broker offers free deposit and withdrawals Nil negative balance protection
Fast and easy account opening process This broker does not offer investor protection
Forex fees are lower

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 AxiTrader

AxiTrader - leading FX PlatformAxiTrader – leading FX Platform

  • AxiTrader is a leading FX broker. It was founded in the year 2007. AxiTrader is regulated by several financial authorities globally like the Financial Conduct Authority (FCA), Dubai Financial Services Authority (DFSA), and Australian Securities and Investment Commission (ASIC).
  • AxiTrader is an exclusive MetaTrader-broker that offers CFDs and forex and the users can leverage on more than 80 currency pairs, 65 CFDs, and also on metals, commodities, indices, and cryptocurrencies, over standard and Pro MetaTrader 4 platforms.
  • AxiTrader charges very low fees from its forex traders in the UK. A great advantage is that they do not charge any inactivity fees. Moreover, deposits and withdrawals are free of charge. Besides, the account opening process is quick and completely digital.
  • AxiTrader is one among those brokers which offer a small range of forex and CFDs. Besides, customer support is only available through email which is 24×5 and the research options are very limited.
Pros Cons
Account opening is fully digital Customer support needs to be improved
No fees for deposits and withdrawals Research tools are limited
No inactivity fees and trading fees are lower This broker only offers CFD and forex trading

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Oanda

Oanda Trading PlatformOanda Trading Platform

  • Oanda was established in 1996 and is recognized as one of the leading American FX brokers. It now offers services in Europe and Asia as well. This broker discloses its financial statements and is regulated by top-level authorities such as the US retail foreign exchange dealer and the UK Financial Conduct Authority (FCA).
  • One of the most advantageous features of this broker is that it charges very low CFDs and Forex fees. Non-trading and withdrawal fees for bank transfers are quite high.
  • Oanda fxTrade offers a mobile app, which is very easy to use. It offers quality market research which includes great charting features, such as 33 technical indicators, for the benefit of its traders.
  • Oanda offers an excellent web trading platform that is user-friendly and quick where the user can leverage it. Besides, an account can be opened without a minimum deposit.
  • CFDs are complex instruments, and the trader should note that their capital is at risk. 76.5% of CFDs retail investor accounts lose money when trading CFDs and have a high risk of losing their funds with this provider.
Pros Cons
This broker offers low fees Offers only CFDs and forex
Web trading platform is easy to use Withdrawal fees are higher
Account opening is easy and completely digital Customer service needs to be improved

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Markets.com

Markets.com - Most Popular Trading PlatformMarkets.com – Most Popular Trading Platform

  • In 2010, markets.com was established, and it is one of the leading and most popular global CFD and forex brokers. Besides, it is regulated by top-level financial authorities such as Cypriot CySEC and the UK Financial Conduct Authority.
  • Moreover, Markets.com’s MarketsX trading platform is well designed and easy to use, the user can leverage several features like market analysis, integrated research, educational videos, and webinars.
  • MarketsX’s withdrawal and deposit methods are free and fast and the trader can leverage several options, which include electronic wallets and credit or debit cards. The account opening process is quick and user friendly and it also offers high-quality exhaustive research tools like good interactive charts and trading ideas.
  • A bit of caution- CFDs retail investor accounts lose money when trading CFDs and there is a high risk of losing money while using this provider.
Pros Cons
Account opening process is fast Trading fees are higher
Offers great tools for research and learning Restricted product portfolio
Offers free and fast withdrawal and deposits

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eToro

eToro Copy Trading PlatformeToro Copy Trading Platform

  • eToro is one of the leading online trading platforms. Established in 2007, it was formerly known as RetailFX and has become one of the best online brokers for social trading.
  • eToro’s Openbook social trading platforms have changed the way the trader in the financial trading markets trade. It has made it easy for every trader to access the forex markets, irrespective of the experience level of the traders.
  • eToro’s platform allows the traders to copy the trade strategies of other successful traders and execute strategies accordingly.
  • This broker offers leverage on commission-free stock trading. Besides, the account opening process is fast and easy.
  • Many CFDs retail investor accounts lose money when trading CFDs and there is a high risk of losing money while using this provider.
Pros Cons
Great social trading experience Forex fees are higher
Account opening process is fast and easy Withdrawals are slow
Stock and ETF trading is free Offers one account base currency

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IQ Option

IQ Option - Start Investing Now!IQ Option – Start Investing Now!

  • IQ Option broker is a leading financial service provider based in Cyprus and it is designated as a Cypriot investment firm. Managed by Options Europe Limited, this trading platform comes under the Cyprus Securities Exchange Commission (CySEC).
  • IQ Option offers a mobile trading app that is offered free of charge by the platform so that the traders can use it on the go. This mobile trading app is specifically designed for mobile devices and smartphones.
  • Presently, the users of IQ Option can trade in more than 90 different types of assets, which consist of various currency pairs, market indices, commodities, and stocks where the users can leverage on. It has also added 12 different types of cryptocurrencies for the benefit of its users.
  • Several CFDs retail investor accounts have lost money when trading CFDs and there is a high risk of losing money while using this provider.
Pros Cons
Offers easy-to-use interface Customer support is slower
Offers several options Restrictions are offered for few countries
The demo account is free

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LONDON CAPITAL GROUP (LCG)

LCG - Leading FX BrokersLCG – Leading FX Brokers

  • LCG is one of the leading FX brokers. Unlike most other brokers, it offers a wide range of CFDs and also spreads betting instruments over several different types of assets which include, forex, cryptocurrencies, commodities, bonds, and stocks. LCG offers very low spreads and there are no commissions while trading with this brokerage firm.
  • LCG makes sure that the client funds are not mixed with corporate funds, and is in accordance with the client money rules of the UK Financial Conduct Authority (FCA).
  • LCG offers leverage and helps the trader access several financial instruments that can be traded from the technical chart or via a new order window.
  • LCG offers its users a demo version and it is free. Moreover, there are no differences between the demo version and the live version; as a trader can make use of all the features and functionalities before they start live trading.
  • CFDs retail investor accounts lose money when trading CFDs and there is a high risk of losing money while using this provider.
Pros Cons
Excellent web-based trading platform No automated trading
Excellent mobile app Does not integrate third-party tools on the platform
Offers demo mode for free for its traders

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Pepperstone

Pepperstone - Leading Trading PlatformPepperstone – Leading Trading Platform

  • Pepperstone is one of the leading Australian FX brokers that offers forex and CFDs. Pepperstone was established in the year 2010 and started its operations in London in 2015 to serve its European clients.
  • Pepperstone has grown remarkably since its inception. It has grown steadily over the past decade and now has a client base of more than 57,000. Its daily average transaction size is $12.55 billion.
  • Pepperstone users can leverage and access 150 trading instruments across equity, forex, indexes, CFDs, cryptocurrencies, and commodities. Their main focus is on forex trading with 61 currency pairs offered to the traders.
  • Trading of CFDs comes with risks. 76.5% of CFDs retail investor accounts lose money when trading CFDs and there is a high risk of losing money when using this provider.
Pros Cons
Customer service is great Offers only CFDs, forex and cryptocurrencies
IFree withdrawals and deposits Does not offer investor protection for non-EU clients
Equity, index, forex and CFD fees are low Offers only basic news for its users

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Wrap Up

The trader should keep in mind that finding a perfect Forex broker is not always easy; especially if you are a new trader and do not know what you are looking for. As already specified, there are several factors to be considered before choosing a reliable forex broker. By reviewing the various forex brokers given above, you should be able to choose the best forex broker that suits your trading requirements. When you have selected the right broker from the multitude of forex brokers available, you can start forex trading with confidence and thereby make more profits in the forex market.

FAQs

1. Is forex trading legal in the UK?

Ans. Forex trading is completely legal in the United Kingdom, and there are regulatory and judicial authorities such as the FCA (Financial Conduct Authority) and several more. Moreover, the trader gets benefited from the customer services and the dedication offered by the brokers to keep the transaction secure. This is one of the reasons why UK Forex brokers are considered the best.

2. What is the best forex broker for beginners?

Ans. Trading in the forex market can be profitable for both new and experienced traders. However, extreme caution should be exercised if you are a new trader looking for profits. By trading in the forex market, and to avoid the risk of loss, it is always best to start with a demo account, to analyze, research, and refine the trading strategies. After gaining confidence, the traders can start with live trading.

3. How to choose the best forex broker?

Ans. To start trading with foreign exchange (Forex) currency, the trader should be able to find a reliable forex broker among the available brokers in the market. A forex broker can be defined as a trading company that provides the trader’s access to their forex trading platform and also enables the users to buy and sell foreign currencies.

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