Forex trading has become a popular venture in the UK. Many brokers are competing for your attention, and it is up to you to identify the one that suits your trading requirements. Finding the best forex broker is not a walk in the park. You will need to conduct multiple tests on the brokers just to be sure you have the best of them all.
Our team of professionals has done all the research work for you. They have worked tirelessly to ensure that no stone is left unturned to recommend to you the best in the market. Below are our findings, which we combined with the honest user reviews from Trustpilot, Google Play, and App Store.
In this guide
Best Forex Brokers in the UK 2021
- 1. AvaTrade – The Lowest Spread Forex Broker in the UK
- 2. Plus500 – One of the Best CFD Platform/Providerin the UK*
- 3. eToro – Best Forex Broker for Copy Trading in the UK
- 4. CMC Markets – Best Spread Betting Forex Broker in the UK
- 5. Forex.com – Best Advanced Forex Broker in the UK
How we test?
Our test process is really based on two different aspects: our independent tests and research, as well as user reviews from Google Play, the App Store, and Trustpilot, etc.
The first thing we do when testing is to check every detail and test every tool and instrument. Our experts spend more than 200 hours on every article. We pay special attention to the specific function or the criteria that we’re comparing during the comparing stage. This means that we must determine which broker is more suited for beginners, and which is better suited for experts, for example. Find out more about our test process here.
Compare The Best Forex Brokers in the UK
Since we take our research procedures very seriously, there are specific standards that the best forex brokers in the UK must meet to make it to our list. Below are the metrics we base our research on.
With that said, here is how we rated the best forex brokers in the UK according to Trustpilot, Google Play, and App Store honest user reviews.
1. AvaTrade - The Lowest Spread Forex Broker in the UK
AvaTrade is a global forex broker that was founded in 2006 in Ireland. The broker is regulated by tier-one authorities, including the Financial Conduct Authority (FCA). What makes it stand out its charges. AvaTrade offers zero commissions on all trades. Spreads are also very competitive. No wonder it aces as the lowest spread forex broker in the UK. The non-trading fees such as deposit and withdrawal are also free. However, the broker falls short on non-activity fees, which is $50 (£36), and kicks off after three months.
Opening a trading account on AvaTrade is simple and straightforward. You will need an initial deposit of £100 to kickstart your investment journey. The world-class trading platform of AvaTrade comes in three different forms, including AvaOptions, MetaTrader 4, and DupliTrade. Trading on this broker’s platform secures your investment by letting you be in full control of your trading activities. You can also interact with other investors, which is another bonus point for AvaTrade.
More than 60 currency pairs are traded on AvaTrade. It also offers other financial tradable instruments, including stocks, ETFs, to name a few. Educational materials are also available in plenty to improve their trading skills. Additionally, there is a demo account should you wish to test the forex broker before diving all in.
- It has a DupliTrade feature where investors can interact and copy trades from the professionals
- 0% commission on all trades with competitive spreads
- Most advanced educational tools
- Regulated by the top-tier jurisdictions in the market
- High inactivity fees that kick off after three month
2. Plus500 - One of the Best CFD Platform/Providerin the UK*
*Investment Trends 2020
Plus500 is known as a global CFD broker regulated by highly regarded authorities, including the Financial Conduct Authority (FCA) and the Australian Securities and Investment Commission (ASIC).
Trading forex on Plus500 is commission-free. It earns its profits from spreads which are also very competitive. Note that opening a demo account on its platform is straightforward and takes you a few minutes. However, you will need to make a minimum deposit of £100 to kickstart your investment journey.
Plus500 trading platform is supported on all devices, including Android, Windows, and iOS. Investors can easily download its app on their mobile devices to monitor their trades anywhere, anytime. The offerings of Plus500 come in a wide selection of only CFD, including forex, stock, commodities, and ETFs. Note that trading CFD comes with high risks of losing money. If you are a beginner wanting to venture into it, make sure you first have a better understanding of the risks.
Although Plus500 has limited educational materials, you still have an option of using its demo account, which allows you to familiarise yourself with how the CFD broker works before proceeding to create a live account.
- Easy-to-use CFD trading platform
- 0% commission with competitive spreads
- Limitless demo account
- A wide range of tradable instruments
- Limited educational tools
- Only CFDs offered
Risk Warning: 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
3. eToro - Best Forex Broker for Copy Trading in the UK
If you are a novice investor looking for the best forex broker that will help you advance your trading experience quickly, then eToro is the broker to consider. This Israeli-based multi-asset broker was founded in 2007 has risen at full tilt to become one of the best forex brokers globally.
eToro is licensed and regulated by the Financial Conduct Authority (FCA) in the UK. It is known for its unique trading platform that is backed up with the social and copy feature. This feature allows investors to interact with each other, making it easy for newbies to learn and improve their trading skills. Additionally, novice traders also have the opportunity to copy trades from professionals. Note that copying trades is not an expeditious way to make profits. You need to be well knowledgeable and strategic to increase your chances.
Investing in eToro is commission-free. Making deposits is also free of charge. However, eToro charges spread, which is where the forex broker generates its income. Its withdrawal fee is also £5 with no clearance charge. Ultimately, eToro allows a wide range of payment methods for making deposits. They include debit/credit cards, bank transfers, and e-wallet like PayPal.
- Allows various payment methods, including PayPal
- User-friendly trading platform with the copy feature
- Responsive customer support service
- Regulated by various top-tier financial authorities
- Withdrawal fees of £5
4. CMC Markets - Best Spread Betting Forex Broker in the UK
CMC Markets began its operations in 1989. With a long track record in the trading industry, the broker is considered safe to invest in. It is also regulated by highly regarded jurisdictions across the globe.
You do not need to make a minimum deposit on CMC markets to start trading. Additionally, the broker benefits investors by offering one of the most competitive spreads that starts at 0.7 pips. This makes the CFD forex broker top the list as the best for spread betting in the UK. Note that spread betting in the Uk comes with its advantages. The profits you make from spreads are tax-free because the activity is not considered a business venture.
CMC Markets has a customisable, user-friendly trading platform. Although it is primarily recommended to experienced investors who enjoy technical indicators, newbies can easily catch up if they use the available educational materials, including webinars, videos, and articles. Additionally, CMC Markets has a demo account that investors can use to gauge how the trading platform works.
Lastly, CMC Markets has a very responsive customer support service available 24 hours, five days a week. You can reach them through phone, email, and live chat. The support service is also backed up by a FAQs page that answers all the critical questions.
- A wide range of educational and resource tools
- Competitive spreads from 0.7 pips
- A plethora of technical indicators
- Powerful trading platforms including Next Generation and MetaTrader 4
- Restricted to CFD trading only
- Customer support service only available for 24 hours, five days a week
5. Forex.com - Best Advanced Forex Broker in the UK
Forex.com boasts of being the biggest meta trader globally. It is the home of all forex trading instruments with more than 90 currency pairs. Forex.com is considered a safe forex broker to invest in because it is regulated by top-tier authorities.
It is easy to open a forex trading account on Forex.com because it is fully digital. You will need to have a minimum initial deposit of 100 units of your base currency to start investing. Additionally, trading forex on this broker’s platform is commission-free and has one of the most competitive spreads in the market.
When it comes to Forex.com educational and research tools, you will be amazed by the varieties this broker offers. Whether you are a novice or experienced, this broker has something for you to improve on their trading skills.
Ultimately, Forex.com allows you to trade on leverage. This is a significant way to take full control of your trading activities and increase your chances of earning more profits. Although we recommend this broker to all forex investors, you can still try it out using the demo account before investing in the live one.
- Advanced user-friendly trading platform
- A plethora of research and educational tools
- More than 90 currency pairs
- Licensed and regulated by the Financial Conduct Authority (FCA)
- Charges inactivity fees after 12 months
How To Choose the Right Forex Broker in the UK
Forex brokers in the UK vary depending on their offerings. This does not mean that one forex broker is better than the other. You just need to find a suitable one for your trading needs. So, what factors can you put into consideration when choosing a broker? Keep reading.
The security of your investment must be a priority. With so many forex brokers in the UK, it can be challenging to separate trustworthy brokers from fraudulent ones. Luckily, the process has been made easy. Simply check if the forex broker is licensed and regulated by top-tier financial authorities, including the Financial Conduct Authority (FCA) in the UK and the Securities and Exchange Commission in the U.S.
When trading on forex brokers’ platforms, you will definitely be subjected to transaction charges. Some of these brokers charge commissions while others spread. Therefore, it’s all about identifying and choosing one that aligns with your investment capital.
Since all of your trading activities are done on a trading platform, it is essential that you consider choosing a speedy one. It should also be customisable and easy-to-use with the necessary offerings that improve your investment skills. If you are an experienced investor, you may want to consider a more advanced trading platform.
The customer support service should be as important as choosing a trading platform. After all, we not only choose a broker to invest in but also learn. It is the customer service that we look up to when seeking clarification on trading issues. Therefore, make sure that it is available and responsive to all matters arising.
All forex brokers are great in their own way. That is why many investors find it challenging to choose. To confirm which one is suitable for your trading requirements, you can try it out using a demo account. You do not need to risk investing in a forex broker only to realise that they are not fit for you.
Forex brokers in the UK allow different payment methods. Some of them are still restricted to the traditional techniques, whereas others have gone the extra mile to include digital payments like the e-wallet. If you are not comfortable with a broker allowing only traditional payment modes, you may want to consider choosing another forex broker.
Finding a forex broker offering various tradable instruments should be of utmost importance. We advise that when trying a broker, take advantage of the tradable instruments and figure out which one aligns with your trading skills. You do not want to end up getting bored after a few trades. Do you?
Although it is possible to trade forex without a broker, it is not a walk in the park. We advise that you find a good forex broker, like the ones we recommend, to give you easy access to the market instruments. Simply make sure that the broker is licensed and regulated by top-tier jurisdictions.
Yes. All profits you make in forex trading are taxable except for those you earn from spread betting. The reason why profits from spread betting in the UK are tax-free is that spread betting is classed as gambling.
Yes. Forex trading is legal in the Uk for as long as you invest in a broker that is licensed and regulated by the Financial Conduct Authority (FCA). You must also be more than 18 years old to qualify.
Absolutely. Many of the brokers in the UK and the ones we recommend above have many educational tools that can help beginners improve their trading skills. However, as a beginner, you should not have high expectations entering into forex trading. Since it is a risky investment, you need to be patient and learn from your losses.
Yes. Some of the forex traders who have now become professionals learned forex on their own. However, the learning process can be slow and time-consuming. So, if you are not a patient individual, we suggest finding a forex trading institution where you will learn directly from the experts.
You can start forex trading with as little as £10. This is because forex brokers in the UK have varying minimum deposit requirements. While some have as low as £10, others will require as high as £1000 or even more.
Now that you know what to look for when choosing a forex broker, we believe you will make the best choices for your trading needs. All our recommended forex brokers above have undergone thorough research, and we guarantee you that they are the best you will ever come across. Ultimately, if you choose one of our recommended forex brokers, make sure you confirm their offering and try them first using the demo accounts.