7 Best Forex Brokers in the UK for 2024

List of Top UK Forex Brokers & Platforms

UK’s Regulatory Landscape

To carry out the activities in the United Kingdom, each forex broker has to be authorized by the Financial Conduct Authority (FCA) which regulates the financial services industry and protects consumers in the UK. Hence, all of our selections in this list are regulated by FCA.

Benefits of trading with an FCA-regulated broker include the reassurance that funds are segregated and that accounts have negative balance protection. Clients can also benefit from a compensation fund in the event of broker insolvency. The UK is one of the few countries that offer spread betting, which has significant tax benefits.

How did FX Empire choose the best UK brokers?

• We made sure each broker was regulated by the top-tier UK Financial Conduct Authority (FCA).
• We tested fees and trading costs, including spreads, swap fees, inactivity fees, and withdrawal fees.
• We conducted a test drive for each platform, digging into available order types, charting, watchlist, and UX.
• We made a balanced assessment using a range of other areas (available markets to trade, customer service, account opening process, research, and educational resources).
• Using our extensive database of broker reviews we made side-by-side comparisons to choose the winning broker for each category.

Our team of experts has identified each broker’s strengths and weaknesses using FX Empire’s comprehensive methodology. Here’s how we test.

Now let’s dive into the selected brokers.

How to choose a forex broker in the UK?

In this section, we cover the key points to consider when opening up a brokerage account in the UK.

How to choose a safe broker in the UK?

First, you should check whether the broker is regulated by the UK Financial Conduct Authority. The FCA is widely viewed as upholding a gold standard for regulation. When working with an FCA-regulated broker, you can be confident that you have negative balance protection, that your funds will be segregated from company funds, and that there is a compensation fund to cover your losses in the event of broker insolvency.

The Financial Services Compensation Scheme (FSCS) covers up to £85,000 per eligible person, per broker. In the UK, traders also have the option of a professional account that grants them access to higher leverage and trading in cryptocurrency CFDs if they meet certain criteria.

The stringent requirements of the FCA can reassure UK traders. Brokers under the FCA’s jurisdiction must show a minimum of £1 million in operating capital, which increases along with the number of their clients. FCA-regulated brokers are also required to process all withdrawal requests instantaneously and submit yearly audited reports and periodic financial statements of capital holdings.

You can check if a broker is authorized by the Financial Conduct Authority (FCA) by going to the FCA Financial Services Register website and searching the broker’s name.

If a broker is not FCA regulated, they will often have a global entity where UK-based clients are directed. Global entities are typically regulated offshore and offer higher leverage but fewer account protections.

Check out our dedicated guide on Best FCA-regulated forex brokers.

What fees should you consider when choosing a broker?

Fees and the cost of trading via spreads, commissions, and swaps are also essential to understand. Fee schedules can be complex due to the different available account types.

• Spreads. The spread is the gap between the bid and offer prices and is essentially the cost of entering a trade. Some CFD brokers will also charge commissions, typically for ECN accounts with narrower spreads. We consider a spread of 1 pip or less in EUR/USD to be competitive.
• Swap Fees. Swaps are the cost of holding a leveraged position overnight. It is good to be conscious of swaps because these fees can add up to be substantial over time. We consider swap fees of less than $5 per full-sized lot (100,000 units of the base currency) as competitive.
• Other Fees. Most brokers do not charge for opening or closing an account, but an inactivity fee is standard. Here, a broker charges a monthly sum after an account has been dormant for a set number of months.

Check with your broker about the inactivity fee and when it is applied to avoid any surprises. Swap fees can sometimes be viewed within the broker’s proprietary platform, and they can also be viewed in MetaTrader by right-clicking the instrument and selecting ‘specification’.

Explore Best forex brokers with lowest spreads.

How to choose a suitable account type?

As a CFD trader in the UK, it’s important to understand the range of available account types. The main account types are as follows:

• Demo Accounts. These are a great way to get your feed wet in the markets and test strategies. Read more about Best forex demo accounts.
• Standard Accounts. When using a standard account, the CFD broker is typically the counterparty to your trade, and the cost of executing a trade is reflected in the spread only.
• ECN Accounts. These accounts are geared toward experienced traders looking for tighter spreads. While spreads are narrower, commissions are usually also charged. Read more about Best ECN forex brokers.
• Islamic Accounts. This account type does not charge swap fees, which makes it compliant with Sharia law. Read more about Best Islamic forex accounts.
• Professional Accounts. Traders designated as professionals can access higher leverage and trading in cryptocurrency CFDs. Keep in mind that professional accounts do not come with negative balance protection. Read more about Best forex brokers for professionals.

The minimum account balance at CFD brokers is typically low, not more than a couple of hundred dollars, but there are some exceptions. Generally, this makes a low barrier to entry and allows those with limited funds to get started in the financial markets.

What leverage is available for UK traders?

One of the reasons that traders are attracted to the forex and CFD markets is the high degree of available leverage. Leverage involves using borrowed funds to increase the size of your trading positions beyond what would be possible using only the cash in your account.

In the UK, retail CFD traders have access to leverage of 1:30. This means that with $1,000, you can trade $30,000 worth of positions in the market. Traders designated as professionals have access to even greater leverage.

For instance, in the case of Plus500, UK traders designated as professionals have access to leverage of up to 1:300. To qualify for a professional account, users must show a financial portfolio of over €500,000 and relevant financial experience. The FCA restriction of leverage to 1:30 for standard accounts is much lower than the maximum leverage at offshore brokers, which is typically 1:500.

When you consider that the maximum leverage for equities is typically 1:2, the available leverage of 1:30 for UK retail CFD traders is relatively high. Most seasoned trading professionals and money managers would consider using leverage of 1:500 as reckless and unnecessary.

Learn more Best forex brokers with high leverage.

What is spread betting, and why is it popular in the UK?

Spread betting is popular among UK traders mainly due to its tax-free status. It is available at some, but not all, UK CFD brokers. In spread betting, a trader does not take any ownership of the underlying asset, whether it be shares, commodities, or currencies. Spread betters simply speculate on whether the market price of an asset will go up or down. Spread bets differ from most CFD trades in that they expire after a set period.

When spread betting, traders can easily trade both sides of the market (long and short) and potentially profit from rising and falling markets. In spread betting, there are no commissions charged, and the cost of entering and exiting trades is reflected in the spread. Like CFD trading, spread betting is leveraged, and speculators can manage their risk using stop-loss orders.

Profits from spread betting are free from stamp duty and capital gains tax because it is classed as a short-term bet rather than an investment. You can see if a broker offers spread betting by looking under the available markets section of their website.

Find our list of the Best spread betting brokers.

Our Methodology

In selecting the best forex brokers for beginners, we used the results of our advanced proprietary methodology. All of the brokers listed were among the leaders in our tests.

FXEmpire has been reviewing brokers since 2010 and has pioneered the in-depth evaluation of CFD brokers. Our process has taken years to refine and involved hundreds of reviews. We’ve gone to a granular level – with over 250 data points in our analysis of each broker – so you can feel confident in selecting the right platform.

To provide the most comprehensive view, we break down the brokers according to nine different categories:

• Trust
• Fees
• Platforms and tools
• Tradable instruments
• Customer service
• Deposit and withdrawal
• Account types
• Research
• Education

In our broker reviews, we explain complex areas like regulatory status so you can easily understand the safety of your funds and the benefits you are guaranteed.

Data is gathered through live testing, research, detailed questionnaires, and in-person broker demonstrations. An account is opened with each broker, focusing primarily on the services of one entity and testing using the most standard account type and platform. We conduct live tests of spreads and measure overnight swap fees and account-related costs.

Our side-by-side analysis reveals whether a broker is competitive in relation to the industry as a whole. Trading platforms take time to master, but we have already done the legwork for you and our evaluations highlight their important features and usability.

FX Empire abides by strict guidelines for editorial integrity. Scoring is based on objective criteria and mostly measurable data, so our reviews cannot be swayed by individual preferences or biases. The review process is independent and follows a strict protocol. In addition, all facts are carefully checked and rechecked, as reviews are continually updated. Read more about our review process here.

For this guide, we selected forex brokers that accept clients from the UK and are regulated by the UK Financial Conduct Authority (FCA). We preferred brokers that offer a localized website, customer support, and trading platforms. We also confirmed whether the brokers provide special trading conditions for traders from the UK.

Meet our Writers

The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.

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