Margin trading, the exhilarating strategy that amplifies your investment potential, is the secret handshake of seasoned traders. Yet, this high-stakes activity isn’t for the faint-hearted. To succeed, you need the best margin trading platforms in the UK by your side—those trusted allies that turn challenges into opportunities.
But here’s the kicker: how do you navigate the UK financial market and make the right choice? Fret not, for we’ve ventured into the depths of the trading universe, wielding our analytical prowess to unearth the gems among brokers. Below, we’ll unveil the best margin trading platforms and their offerings to help you conquer the world of margin trading.
Essence
- Margin trading involves borrowing money from a broker to purchase financial assets, using the assets themselves as collateral for the loan.
- The best margin trading platforms allow investors to use their existing cash or securities as collateral for a loan.
- The use of leverage through margin can amplify both gains and losses.
- As a trader, it is crucial to have a clear risk tolerance and well-defined risk management strategies to mitigate potential losses and prevent margin calls.
- Borrowing on the best margin trading platforms often incurs interest charges.
- The best margin trading platforms may offer varying assets for margin trading. Traders should select platforms that offer the assets they want and more for maximum experience.
- Traders should have a solid understanding of how margin trading platforms work and the risks involved.
List of the Best Margin Trading Platforms in the UK
- Pepperstone – Broker with Lowest Margin Rate
- Admiral Markets – Best Margin Trading Platforms With Excellent Support Service
- Plus500* – Best CFD Margin Trading Platform in the UK
- Spreadex – The Cheapest Margin Trading Platform in the UK
- FP Markets – Best Margin Trading Broker for Advanced Traders in the UK
- XTB – Best Margin Trading Platform for Mobile Users
- eToro – Best Margin Trading Broker for Beginners
- AvaTrade – Best Margin Trading Broker for Research & Analysis
- FxPro – Best MT4 Margin Trading Platform in the UK
- Forex.com – Best Margin Broker for Forex
*80% of CFD retail accounts lose money
How We Choose Margin Brokers
When it comes to recommending the best margin brokers in the UK, we, as TradingGuide experts, conduct thorough research. At the forefront of our selection process is the brokers’ reputation and regulatory compliance. We prioritise brokers with a solid track record of reliability and transparency, backed by licences from the Financial Conduct Authority (FCA).
In addition to regulatory oversight, we assess the margin brokers’ features to ensure they meet our specifications. Some of the elements we prioritise include trade execution speed, mobile compatibility, trading tools availability, support service responsiveness, and more. Moreover, we scrutinise the broker’s margin requirements, leverage offerings, and interest rates to determine their competitiveness and suitability for our trading strategies.
Besides testing brokers for margin trading and comparing their features, we analyse and sample user comments and ratings on Google Play, the App Store, and Trustpilot. We then combine our findings from these procedures to create a list of the best margin brokers in the UK. Trust TradingGuide as your perfect place for the best recommendations and more learning resources on margin trading.
In this guide
Best Margin Brokers in the UK
- List of the Best Margin Trading Platforms in the UK
- Compare the Best Margin Trading Platforms
- Brief Overview of Our Recommended Brokers’ Fees and Assets
- Our Opinion & Overview of the Best Margin Brokers in the UK
- What Do Other Traders Say?
- The Ultimate Guide About Trade on Margin
- How to Choose the Right Margin Broker
- Difference Between Margin and Margin Trading
- How Does Margin Trading Work
- Pros and Cons to Trade on Margin
- FAQs
Compare the Best Margin Trading Platforms
Comparing margin brokers in the UK was time-consuming but with the help of our dedicated experts, we managed to come up with the best recommendations above. Our main goal is to help you get the best margin brokers in the UK that checks all the boxes of our experts specifications. To further influence your decision, we have prepared a comparison table below for these brokers highlighting key features, including licences, supported software, payment methods, and more.
Compare brokers
Brief Overview of Our Recommended Brokers’ Fees and Assets
As a trader or investor seeking the optimal margin trading platform, it’s imperative to align your choice with your preferred assets and budgetary constraints. To facilitate your decision-making process, we’ve thoughtfully assembled concise tables below, offering a quick glimpse into our recommended brokers’ fee and available assets. These invaluable insights will empower you to make well-informed choices that not only fit your financial parameters but also elevate your trading experience.
Fees
| Best Margin Trading Platform | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| Pepperstone | From 0.0 pips | £0 | Free | None |
| Admiral Markets | From 0.0 pips | £250 | Free, but 1% exchange fee | €10 monthly |
| Plus500 | From 0.0 pips | £100 | Free | £10 monthly |
| Spreadex | From 0.6 pips | £0 | Free | None |
| FP Markets | From 0.0 pips | £100 | Free | None |
| XTB | From 0.1 pips | £0 | Free | £10 monthly |
| eToro | 2 pips | $100 | $5 withdrawal | $10 monthly |
| AvaTrade | 0.03 pips | £100 | Free | £50 quarterly |
| FxPro | From 0.0 pips | $100 | Free | $15 once + $5 monthly |
| Forex.com | From 0.0 pips | £100 | Free | £15 monthly |
Assets
| Best Margin Trading Platform | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| Pepperstone | Yes | Yes | Yes | Yes | No |
| Admiral Markets | Yes | Yes | CFDs on commodities | Yes | No |
| Plus500 (CFDs) | Yes | Yes | Yes | Yes | Yes |
| Spreadex | Yes | Yes | Yes | Yes | Yes |
| FP Markets | Yes | Yes | Yes | Yes | No |
| XTB | Yes | Yes | Yes | Yes | Yes |
| eToro | Yes | Yes | Yes | Yes | No |
| AvaTrade | Yes | Yes | Yes | Yes | Yes |
| FxPro | Yes | Yes | Yes | Yes | No |
| Forex.com | Yes | Yes | Yes | Yes | No |
Our Opinion & Overview of the Best Margin Brokers in the UK
Now that you are familiar with our recommended margin trading platform’s fees and assets, we thought it is best to give you a brief overview regarding these platforms. Note that the reviews are solely based on our in-depth research and opinions of other users on Google Play, the App Store, and Trustpilot.
1. Pepperstone – Broker with Lowest Margin Rate
Pepperstone is a CFD margin broker with over 1200 instruments for choosing. Its platform is also user-friendly, and with no minimum deposit, UK traders can access the featured assets. While trading with the broker, we incurred low trading charges and margin rates. We also noticed that Pepperstone has an inbuilt margin calculator that helped us fully understand the margin required for our trades.
Pepperstone offers leverage that goes up to 30:1 for retail clients with margin requirements from as low as 0.5%. While this broker’s margin rates are low, your initial margin requirement will depend on your trade size, the instrument you trade, and account leverage. Overall, we believe that Pepperstone’s features complement all types of traders’, whether newbies or advanced. For instance, it has the MetaTrader platforms for expert UK traders and a social trading platform for newbies willing to learn from other traders. We couldn’t help but also notice its excellent support service that is operational 24/7, making us leave it with a 5-star rating.
✔ No dealing desk intervention
- Extremely low margin rates
- Offers margin calculator to calculate margin requirements
- Powerful 4 trading platforms
- Free deposits and withdrawals
- Limited product offerings compared to what most of its peers offer
- Financing charges for overnight positions are high
| Type | Fee |
| Minimum Deposit | $200 |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Inactivity fee | No |
| Account fee | No |
| Features | Availability |
| Minimum Investment Amount | £0 |
| Supported Assets | CFDs in FX, shares, commodities, indices, ETFs, forwards and spread betting |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | Credit/debit cards, e-wallets, bank transfers |
| Transaction Fees | £0 |
2. Admiral Markets – Best Margin Trading Platforms With Excellent Support Service
Among the margin trading platforms in the UK we tested, Admiral Markets impressed us in many ways. One feature we like is its reliable and responsive support service. We contacted the team via phone, email, and live chat and liked their prompt responses. We got relevant solutions that excited our experiences even more. Plus, Admiral Markets has a comprehensive FAQ page, which can help you get answers to commonly asked questions and save time.
Overall, Admiral Markets lists over 8,000 CFD instruments, which you get to trade at spreads from 0.0 pips (MT5). We also like its attractive margin rates, which go up to 1:30 for retail clients. This allows traders to manage larger trade sizes with little capital. Leverage potentially helps traders to achieve higher profits in the market. However, it entails risks of losses. Overall, we believe that Admiral Markets’ features complement all types of traders, whether newbies or advanced. For instance, it has the MetaTrader platforms for expert UK traders and a demo account where newbies can explore the financial market risk-free before trading with real
money.
✔ Advanced trading tools
- Offers users an opportunity to trade over 8,000 CFD and investment assets. These include forex, shares, CFDs on commodities, bonds, ETFs, and CFDs on indices
- Has favourable leverage limits that go up to 30:1 for retail clients
- Tight spreads starting from 0.5 pips on major currency pairs
- The Admiral Markets is compatible with desktop and mobile devices
- A user-friendly and customisable trading app
- We believe that minimum deposit requirement (£250) could be lower
- Only one free withdrawal per month. Subsequent withdrawals attract a fee, which varies depending on the payment method you use
| Type | Fee |
| Minimum deposit | £250 |
| Deposit fee | $0 |
| Withdrawal fee | 1 free withdrawal request every month, after – 1% |
| Inactivity fee | Monthly €10 |
| Overnight fee | Yes |
| Broker Features | Availability |
| Minimum Investment Amount | £250 |
| Demo Account | Yes |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | Bank Wire Transfer, Credit/debit cards, Skrill, Neteller, Paypal, Klarna, iDEAL |
| Transaction Fees | Free, but 1% exchange fee |
Risk warning: 61% of retail CFD accounts lose money.
3. Plus500 – Best CFD Margin Trading Platform in the UK
*Illustrative prices
As users, we found Plus500 to be the pinnacle of CFD margin trading platforms in the UK. Its user-friendly interface made margin trading hassle-free, allowing us to easily navigate and execute trades. With competitive margin rates from 3.33% on major currency pairs and over 2,800 CFD assets encompassing forex, stocks, commodities, and more, Plus500 provided ample opportunities for diversified trading strategies.
What truly set Plus500 apart are its robust risk management tools and real-time market updates. These features empowered us to make informed decisions, mitigating risks effectively. The platform’s advanced charting tools and customisable features enhanced our trading experience, allowing for easy in-depth analysis and personalised trading setups. Remember, the broker has a minimum deposit requirement of £100 and charges ultra-low spreads from 0.0 pips. Comparing it with its peers, we are delighted to give it a 4.5-star rating.
✔ Regulated in many countries
- Low minimum deposit requirement
- Commission-free trades with spreads from 0.0 pips
- Low margin rates from 3.33% on major currency pairs
- Quality learning tools and a FAQ section for beginners
- Inactivity fee applies after 3 months of the account’s dormancy
- No buying and taking full ownership of the featured assets
| Type | Fee |
| Overnight Funding | yes |
| Currency Conversion Fee | 0.7% |
| Guaranteed Stop Order | spread applies |
| Inactivity Fee | $10 per month |
| Withdrawls/Deposits | $0 |
| Broker Features | Availability |
| Minimum Investment Amount | £100 |
| Demo Account | Yes |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | E-wallets like PayPal and Skrill, Bank transfers, credit/debit cards |
| Transaction Fees | None |
Note: 80% 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.
4. Spreadex – The Cheapest Margin Trading Platform in the UK
Based on our research and experience, Spreadex stands as our top choice when it comes to offering the most cost-effective margin trading platform in the UK. With competitive margin rates catering to professional and retail traders, Spreadex has carved a niche for itself in the industry. For instance, professional forex traders get to enjoy margin rates starting from 0.45%, while those venturing into gold and cryptocurrencies benefit from a competitive rate of 0.6% and 18%, respectively.
These exceptionally low margin rates translate into significant cost savings for traders, enabling them to leverage their positions and potentially amplify their profits while managing risk effectively. And besides low margin rates, Spreadex’s users will enjoy additional features, including social trading, thus maximising their experience. We give it a 4.3-star rating.
✔Helpful customer service
- No minimum deposit requirement
- Highly competitive margin rates as low as 0.45% for professional traders
- Low spreads
- Over 10,000 assets to explore
- No demo or Islamic account
- No negative balance protection for professional traders
| Type | Fee |
| Minimum deposit | Free |
| Overnight fee | Yes |
| Deposit fee | Free |
| Withdrawal fee | Free |
| Inactivity fee | Free |
| Features | Availability |
| Minimum Investment Amount | £0 |
| Supported Assets | Forex, commodities, cryptocurrencies, indices, ETFs, options |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | E-wallets, Bank transfers, credit/debit cards |
| Transaction Fees | £0 |
5. FP Markets – Best Margin Trading Broker for Advanced Traders in the UK
If you are an expert investor, you need to find a margin broker with a plethora of educational materials and research tools. While comparing the best margin trading platforms in the UK, FP Markets excels as one of the most reliable in this category. The broker provides users with the MT4 and MT5 platforms, which are widely regarded as the best platforms for Forex trading. We also had an opportunity to enjoy the Iress and WebTrader platforms, which we can say are user-friendly and highly customisable.
FP Markets hosts more than 10,000 tradable CFD instruments to margin trade with, including currencies, shares, precious metals, commodities, indices, and cryptocurrencies. Leverage goes up to 30:1 for UK retail clients and 500:1 for professional traders, while margin requirements start at 1%. However, your initial margin requirement will vary depending on the account you choose, the instrument you trade, and your trade size. Based on our hands-on experience, FP Markets unquestionably earns a solid 4.3-star rating.
✔Accounts can be opened fast and easy
- Advanced platforms suitable for professional traders
- Thousands of tradable market assets for margin trading
- Low margin rates
- Low minimum deposit (£100)
- No two-step safe login
- You can only trade forex and CFDs
| Type | Fee |
| Minimum deposit | $100 |
| Overnight fee | $0 |
| Deposit fee | $0 |
| Withdrawal fee | Depends on payment method |
| Inactivity fee | $0 |
| Features | Availability |
| Minimum Investment Amount | £100 |
| Supported Assets | Stocks, commodities, cryptocurrencies, ETFs, forex, indices |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | E-wallets, Bank transfers, credit/debit cards |
| Transaction Fees | £0 |
6. XTB – Best Margin Trading Platform for Mobile Users
XTB garners high user ratings on Google Play and the App Store, making it one of the most esteemed trading platforms. Having tested it on both iOS and Android devices, our experience was exceptional. The broker is user-friendly and lists over 5,300 securities for UK retail traders. Margin trading begins with requirements starting from 5%, adhering to ESMA-set leverage limits for each asset. However, professional traders can access higher leverage, up to 500:1, augmenting potential profits. The margin close-out levels are set at 50% for UK clients and 30% for non-EU/UK clients.
Additionally, XTB offers competitive interest rates on uninvested funds, reaching up to 5%, including 3.8% for EUR and 5.0% for USD. These rates provide an added avenue for potential passive income while engaging in margin trading. With its comprehensive offerings and mobile-friendly interface, XTB earns a commendable 4.0-star rating from us.
✔ Wide range of global markets
- Favourable margin requirements starting from 5%
- No minimum deposit requirement
- Highly rated margin trading platform
- High leverage limit of 500:1 for professional traders
- Some assets attract high fees
- Support service availability can be improved
| Type | Fee |
| Opening an account | $0 |
| Account type: Standard: spread | 0.5 |
| Account type: Swap Free: spread | 0.7 |
| Forex | From 0.1 pips |
| Stock CFDs commission | 0% |
| ETF CFDs | 0% |
| Crypto commission | From 0.22% |
| Monthly Fee for maintaining an Account | Free of charge or up to 10 EUR |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Features | Availability |
| Minimum Investment Amount | £0 |
| Supported Assets | Forex, indices, commodities, ETFs, cryptocurrencies |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | E-wallets, Bank transfers, credit/debit cards |
| Transaction Fees | £0 |
7. eToro – Best Margin Trading Broker for Beginners
We tested eToro and were genuinely impressed with its user-friendly platform. What sets it apart is the pioneering social and copy trading feature, which remains a favourite among traders, including those here in the UK. So, if you’re just starting in margin trading, eToro is a fantastic choice. Transitioning to a live trading account was a breeze for us, with a minimum deposit requirement of just $100, as per the broker’s guidelines.
We noticed that eToro offers an extensive selection of over 2,000 instruments for margin trading, and what’s even better is that most come with low commissions and spreads. Leverage requirements vary based on the instruments you choose but can go as high as 30:1 for retail investors, in accordance with ESMA regulations. For beginners, we can confidently say that eToro provides numerous learning resources, including guides, articles, webinars, and more. Plus, the broker offers a reliable demo account funded with £100,000 in virtual funds for practising margin trading without risking real money. From our experience, eToro is an excellent choice for beginners, and we give it a well-deserved 5-star rating.
✔Low minimum to fund an account and begin investing
- User-friendly platform
- Free commission on stock trading
- $100 minimum deposit required
- An award-winning social and copy trading platform
- Charges withdrawal fees
- Support service availability is only five days a week
| Types | Fee |
| Minimum Deposit | $100 |
| Conversion Fee | depends on your payment method, currency, and eToro Club level. |
| Overnight Fee | vary according to the value and direction (BUY or SELL) of your position |
| Withdrawal Fee | all withdrawal requests are subject to a $5 USD fee |
| Inactivity Fee | monthly inactivity fee of $10 USD (charged after 12 months) |
| Features | Availability |
| Minimum Investment Amount | $100 |
| Supported Assets | Stocks, commodities, cryptocurrencies, ETFs, forex, indices, NFTs |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | E-wallets, Bank transfers, debit cards |
| Transaction Fees | $5 withdrawal fees apply |
8. AvaTrade – Best Margin Trading Broker for Research & Analysis
From our analysis, AvaTrade has one of the best research resources in the UK’s financial markets, which we easily accessed via its intuitive design platform. Whether conducting technical or fundamental analysis, AvaTrade ensures that its users identify substantial opportunities using news feed, adaptive indicators, and candlesticks. You can also make use of automated algorithms to maximise your potential.
If you are an advanced trader, this broker provides you with the MT4 and MT5 platforms. Newbies can benefit from its AvaSocial platform that allows them to meet and interact with other global traders. The margin requirements at AvaTrade increase with the size of your trade and market conditions like volatility and news release, which can go up to 50%. Based on our experience, we give this broker a 4.3-star rating.
✔ Quick deposits and withdrawals
- Powerful margin trading platforms
- Competitive spreads
- Low minimum deposit requirement of £100
- Plenty of research materials
- The analysis tools may be complicated for newbies to understand
- High inactivity fees
| Type | Fee |
| Minimum Deposit | £100 |
| Inactivity Fee | USD Account: $50 EUR Account: €50 GBP Account: £50 |
| Administration Fee | USD Account: $100 EUR Account: €100 GBP Account: £100 |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
| Features | Availability |
| Minimum Investment Amount | £100 |
| Supported Assets | Stocks, commodities, cryptocurrencies, options, ETFs, forex, indices |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | E-wallets, Bank transfers, credit/debit cards |
| Transaction Fees | £0 |
9. FxPro – Best MT4 Margin Trading Platform in the UK
In our comprehensive analysis, we find FxPro a viable choice for traders looking for an MT4 margin trading platform in the UK. Margin trading is not only available on the MT4 but also across other versatile platforms, including cTrader and MT5. From our experience, we believe this flexibility ensures a dynamic and adaptable trading experience for all users. FxPro’s notable order execution speed plays a pivotal role in margin trading, empowering traders to seize market opportunities with precision.
Trading on FxPro’s MT4 platform gives you access to over 2,100 CFD assets, including forex, shares, commodities, indices, and more. All trades are commission-free, with low spreads from just 0.6 pips on major currency pairs. We also enjoyed trading on margin with this broker as rates could go as low as 0.5% and leverage limits reaching up to 1:500 for professional clients. If you are a beginner, you can test this broker via its virtually funded risk-free demo account before transitioning to the live account with a minimum deposit of £100.
✔ Trustworthy broker
- Low minimum deposit requirement
- Although FxPro’s support service is available 24/5 via phone, email, and live chat, it offers timely and effective assistance to traders
- FxPro provides a user-friendly and customisable MT4 platform
- Low margin rates with leverage limits up to 1:500 for professional traders
- Limited asset offerings compared to its peers
- No copy or social trading
| Type | Fee |
| Minimum deposit | $100 |
| Withdrawal fee | $0 |
| Inactivity fee | $15 once + $5 monthly |
| Features | Availability |
| Minimum Investment Amount | £100 |
| Supported Assets | Stocks, forex, commodities, cryptos, ETFs |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | Wire transfers, Credit/Debit cards, PayPal, Neteller, Skrill |
| Transaction Fees | £0 |
10. Forex.com – Best Margin Broker for Forex
Forex.com has more than 90 currency pairs and spot metals that UK traders can use for profits. Comparing it with other platforms in the UK, we can confidently say that Forex.com is beginner-friendly, primarily due to the availability of many learning resources. Advanced forex traders in the UK will also trade on its powerful platforms, loaded with top-tier resources for technical and fundamental analysis.
Forex.com also has favourable margin requirements starting from 2%, and trading charges are also low. For low-budget traders, this is a plus since you get to try the quality trading tools without the need for extra money. Moreover, three account types are offered based on your skills level, including standard, commission, and DMA accounts. A demo account is also at your disposal for experimenting with margin trading if you have zero experience in the field. Undoubtedly, Forex.com is a fully packed broker for forex traders, and we give it a 4-star rating.
✔ Wide array of offerings
- Low margin rate from 2%
- +90 currency pairs and spot metals
- £100 minimum deposit requirement
- Inactivity fee applies after one year
- Lacks the two-step safer login
| Type | Fee |
| Minimum deposit | $100 |
| Inactivity fee | $15 |
| Deposit fee | $0 |
| Withdrawal fee | $0 |
| Overnight fee | $0 |
Clients can trade Forex, Indices, Cryptocurrencies, Stocks, and Commodities (including precious metals and oil) with different account types.
| Features | Availability |
| Minimum Investment Amount | £100 |
| Supported Assets | Forex, shares, commodities, cryptos, indices, ETFs |
| Mobile App | Yes (Android or iOS) |
| Payment Methods | Bank transfer, Credit/debit cards, Skrill, Neteller |
| Transaction Fees | £0 |
What Do Other Traders Say?
Our pursuit of the top margin trading platforms in the UK was not solely based on our insights. We engaged in meticulous research, rigorous testing, and thorough comparisons. However, we sought a more comprehensive perspective. To achieve this, we explored unfiltered user opinions on Google Play, the App Store, and Trustpilot. The candid comments below reflect diverse real-trader experiences, enhancing our recommendations into a well-rounded and dependable guide for you.
Pepperstone
Users widely praise Pepperstone for its exceptional CFD trading, emphasizing low spreads and trustworthiness. The platform’s 24/7 dedicated support and customizable features make it highly accommodating to all traders.
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“Got fast and effective help in real time from Constantine, by means of the chat applet, through the application process for a live account. Issues fixed satisfactory and quickly.” – DEL REGNO David
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“I’ve used many trading platforms, and this is my favourite. Took me a while to get used to it, as it was slightly different from what I was used to, but now love it & all its features.” – Jana from Gold Coast
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“Easy to open. Easy to use. Easy to add money. Easy to withdraw money. Good customer service. Fast execution. Less spreads. Just learn how to trade and have fun.” – Pruthviraj Rathod.
XTB
XTB’s stellar reputation extends far and wide, with the majority of users singing its praises on Google Play, Trustpilot, and the App Store. Its intuitive interface and an impressive arsenal of trading tools have captured the hearts of many traders, offering a harmonious blend of simplicity for beginners and sophistication for seasoned professionals.
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“I have shares in other brokers, but I’m using this app to check prices and charts because it’s simply better. Flawless usability” – Kosciej
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“Very good app. Customer service is welcoming. Lots of information for new traders available for free. Feel very valued and accepted as a beginner. Best app I have found after trying 10+ others.” – Thomas Ashley
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“Excellent account managers who keep in touch. Find the app easy to use. Lots of educational content to help me learn. Good use of news and kept up to date with any stock market changes.” – Ross
Spreadex
Spreadex garners traders’ admiration for its remarkable flexibility, notably its absence of a mandatory minimum deposit, and its quick and attentive customer support. Nevertheless, a portion of the trading community does express concerns about what they perceive as relatively elevated trading fees.
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“Easy to use Platform, v friendly staff. Never had any issues” – Matthew Hill
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“Been with Spreadex more than ten years, great range of markets, particularly among UK smaller caps. Pay up quickly when a short goes to ‘zero’ too, much better experience than I have had with CMC for example.” – TheAceTrader
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“A very useful financial spread betting app that should cover all your needs. It’s definitely the most useable of the broker apps that I’ve tried. A great platform that lets you analyse the markets, place spread bets & manage your risk and positions all on your phone. They’ve also got a great range of tools and excellent customer service which I found very attractive. 10/10 for my experience with Spreadex thus far” – JakeReadman
FP Markets
Our exploration of FP Markets left us deeply impressed, echoing the sentiments of a majority of its users. This platform stands out with its competitive fee structure, earning widespread acclaim. Furthermore, it’s hailed for offering a reliable support team and a rich suite of market analysis tools that cater to the diverse needs of traders.
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“Customer support is really marvelous, my problem was taken seriously and solved within no time. Thanks to the team for their efforts. Great!” – Tariq
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“The app is user friendly. Even for beginners, it is easy to use, and the customer service live chat is quick in replying.” – Wayne K
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“Awesome! I’ve been trading with their mobile app for a while now and no issues or lags have occurred; their UI is also clean and smooth.” – Edwina G
eToro
After delving deep into user testimonials and examining the eToro margin trading platform from various angles, we were genuinely impressed by the resounding consensus among users. Their sentiments painted a vivid picture of a platform that goes beyond the ordinary. Here’s a glimpse into the distinctive qualities that set eToro apart.
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“Etoro is a great platform with lots of benefits compared to other trading apps my designated account Alfie is great, friendly and professional. He checks in with me quite often and keeps me updated of any new features or benifits etoro has to offer.” – Shukhraj
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“Great application to get money all the time” – fitnessandnutrition212
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“Best trade app I’ve used, display is nice and clear whilst the functions are easy to use. Customer support has been very responsive within 24hrs.” – Tony C
AvaTrade
AvaTrade, a UK-based margin trading platform, boasts a trove of positive user testimonials on Google Play, the App Store, and Trustpilot. Renowned for its unwavering legitimacy, affordability, and resource-rich offerings, it excels in the margin trading realm. Additionally, its responsive support service addresses users’ concerns effectively, as seen in the following comments.
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“Mobile application is best to use because it is easy for me rather than working on a computer my phone is often on my hand and easy to use” – Andile M
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“I was assisted by Alev Nazli. She was very friendly and helpful. Made sure I understood the platform and confirmed that I’m all set to go. She followed up the next day as well. Much appreciated.” – Michael S
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“Best Broker with the best app for easy and quick deposits and withdrawals. Search feature on the app has for me the latest market news to date. Proactive Account Manager who is ready to go the extra mile. I’m happy at AvaTrade, best broker for sure!” – Menfret M
Forex.com
Forex.com garners high praise from traders for its outstanding flexibility. The platform boasts responsive and helpful customer support, further enhancing the trading experience. While many users find these aspects commendable, some may note that its app is not as reliable as the web version.
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“It’s a very good app. Easy to use and execution is fast. I enjoy using it.” – Charles Salter
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“I dont understand why i cant get notifications, whether its alerts or trades or news, i cant get a notification. I’ve uninstalled and reinstalled but still nothing. I get a pop up in the app to allow notifications but then once im in system settings theres no option to allow notifications. I dont know what to do about it so here i am. Hopefully this gets fixed ASAP.” – NotifyM3Forex
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“A Great Broker for Noobs and Pros! Customer Service is great they help with any problems you may be having. Website is easy to navigate as well.” – Caden Relmers
The Ultimate Guide About Trade on Margin
Margin trading is more than just choosing a broker; it’s a journey into leveraging assets for maximum gains. Our aim is to equip you with the knowledge for sound decisions. Therefore, we have prepared the sections below to take you through key insights and strategies to thrive in this dynamic arena.
How to Start Trading on Margin
Embarking on the journey of margin trading is a thrilling prospect, offering the potential for amplified profits. However, this path requires meticulous planning and strategic thinking. Below, we walk you through the essential steps to initiate your margin trading journey with confidence.
Before taking the plunge into margin trading, invest time in educating yourself about the market. Acquaint yourself with the intricacies of margin trading, understanding its dynamics and nuances. A wealth of online resources, books, and courses are at your disposal, offering valuable insights into this specialised field.
Selecting the right margin trading broker is paramount. Seek out a broker that provides a diverse range of trading assets, competitive fees, and an intuitive trading platform. Our thorough research has led us to identify some of the best margin trading brokers in the UK, which you can explore in the sections above.
Develop a meticulously crafted trading plan that serves as your roadmap. Define your financial objectives, gauge your risk tolerance, and determine the capital you’re willing to commit to margin trading. Your plan should outline clear entry and exit strategies for each trade, ensuring discipline in your approach.
Begin your margin trading journey with a prudent approach by starting with a modest investment. Margin trading can be volatile, and losses are possible. Commencing with a small capital allocation allows you to gain experience and insights without exposing yourself to undue risk.
Avoid putting all your assets in a single basket. Opt for diversification within your margin trading portfolio to spread risk. Steer clear of over-concentration in any particular asset or trade.
Thoroughly research the assets you plan to trade on margin. Scrutinise company financials, monitor relevant news and industry trends. Base your trading decisions on well-informed research rather than impulsive instincts.
Many margin trading platforms, including our recommended choices above, offer demo accounts. These risk-free environments allow you to practise margin trading with virtual funds. It’s an invaluable opportunity to refine your skills and strategies before committing real capital.
Stay attuned to market developments and breaking news that can influence margin trading. Market sentiment and news can significantly impact your trading decisions and outcomes.
Implement sound risk management practices, including setting stop-loss orders to limit potential losses. Never invest more than you can afford to lose, and maintain a disciplined approach to margin trading.
How to Choose the Right Margin Broker
Choosing the right UK margin broker isn’t easy; it demands research and testing. Fortunately, our experienced team has done all the work and compiled a list of top margin trading platforms above to choose from. However, if you prefer independent research, here are the core criteria we used to find the best UK margin brokers—your roadmap too.
Security is paramount when selecting a margin broker, ensuring the safety of your funds, regardless of the broker’s financial standing. To mitigate risks, opt for an FCA-regulated margin broker in the UK. Avoiding unregulated brokers is crucial to steer clear of potential fraudsters in the UK market solely focused on your funds.
Scrutinise the fee structure of the broker. Assess not only the trading fees but also overnight financing costs, withdrawal fees, and any other charges that may apply. Transparency in fee disclosure is crucial.
Examine the range of assets offered for margin trading. A diverse selection allows you to diversify your portfolio and explore different trading opportunities.
Understand the margin requirements set by the broker. Different assets may have varying margin rates, so ensure they align with your trading strategy and risk tolerance.
The trading platform is your gateway to the markets. It should be user-friendly, stable, and equipped with essential trading tools. Test the platform’s functionality using its demo account and ensure it meets your needs.
Reliable customer support can be a lifesaver in times of need. Evaluate the responsiveness and helpfulness of the broker’s customer service team. Accessible and knowledgeable support is invaluable.
Seek out feedback from fellow traders. User recommendations and reviews on Google Play, the App Store, and Trustpilot can provide genuine insights into a broker’s performance, reliability, and customer satisfaction.
5 Quick Steps To Start Trading on Margin
Trading on margin in the UK can offer you enhanced trading capabilities and opportunities. If you’re ready to dive into the exciting world of margin trading, here are five swift steps to help you get started.
Begin your journey by choosing a reputable margin trading broker. Visit the official website of a broker you trust or one that we’ve recommended on this page. Take the time to explore its services, fee structures, and regulatory compliance. If you prefer trading on the go, consider installing its mobile trading app for added convenience.
On the broker’s website, find and click on the option to “Open an Account” or “Sign Up.” This will initiate the account creation process. Prepare to provide essential personal details, including your full name, date of birth, contact information, and residential address. Select the type of trading account that best suits your trading goals and experience level, whether it’s a standard or professional account. Also, create a unique username and a strong password that will grant you access to your trading account.
To comply with regulatory requirements and ensure the security of your account, you’ll need to verify your identity. Your broker will typically request specific documents, such as a government-issued photo ID (like a passport or driver’s licence) and proof of your residential address (such as a utility bill or bank statement). Scan or take clear photos of these documents and securely upload them through the broker’s verification portal. Be patient during this process, as verification may take some time.
Once your account is verified, it’s time to fund it. Log in to your trading account using the credentials you established during registration. Find the “Deposit Funds” or “Fund Your Account” section within your account dashboard. Select your preferred funding method, which may include bank transfers, credit/debit cards, or electronic payment methods like PayPal.
With your trading account funded, you’re now ready to start margin trading. Choose the asset you wish to trade, determine your trade size, and set your entry and exit points. You can execute your trade using market orders or place pending orders to trigger at specific price levels. Keep a vigilant eye on your trade’s progress and be prepared to manage it according to your trading strategy. This may involve setting stop-loss and take-profit orders to mitigate potential losses and secure profits.
Read about the best MT4 brokers in the UK in our other guide.
Difference Between Margin and Margin Trading
Margin is the initial deposit you provide to your broker when opening a margin trading account. It serves as collateral and ensures brokers can cover potential losses, allowing traders to access leverage for larger positions. Margin is not a tradable asset itself; it’s a safety net to facilitate margin trading. However, it comes with increased risk, as losses can exceed the initial deposit.
Margin trading, in contrast, involves actively trading financial instruments with borrowed funds to amplify position sizes. It’s a strategy to magnify potential profits by leveraging borrowed capital. Traders use margin trading to capitalise on market movements, but it carries inherent risks due to the increased exposure. Effective risk management is essential when engaging in margin trading to mitigate potential losses.
In essence, margin represents the collateral to open a margin trading position, while margin trading is the practice of actively trading with borrowed funds for greater market exposure, aiming for amplified profits but also bearing heightened risk.
How Does Margin Trading Work
Margin trading allows traders to enter larger positions in financial markets than they could with their own capital. To do this, traders borrow funds from their brokers and use them to enter a leveraged trading position. The funds a trader can borrow are determined by the margin requirement set by the broker, which is usually expressed as a percentage of the total value of the trade.
While trading margin can bring about huge profits, you are also prone to significant losses. If a trade works out in your favour, you will earn a profit on the total value of the trade. However, if the trade moves against your expectations, you will suffer losses on the trade’s full value, plus additional funds you may have deposited to maintain your margin requirements.
Overall, margin trading is a high-risk strategy because of the potential for significant gains or losses. As a trader, you must carefully manage your risk and ensure you have enough margin funds to maintain your positions.
Note that margin brokers in the UK set margin call levels to protect themselves and their clients from incurring substantial losses. This means that when your account equity falls below the margin call level, the broker will issue a margin call requiring you to deposit additional funds to maintain your position. But, if you fail to meet the margin call, the broker may liquidate the open position, leaving you with losses.
Pros and Cons to Trade on Margin
Margin trading can be a powerful tool in the world of finance, offering both advantages and disadvantages. Understanding the pros and cons is crucial for anyone considering this approach to trading. Here’s a concise breakdown of the key benefits and drawbacks of trading on margin.
Pros
- It offers flexibility, allowing you to seize trading opportunities even when your capital is limited.
- By leveraging borrowed funds, you can potentially achieve higher returns.
- With margin, you can spread your investments across multiple assets, enhancing portfolio diversification and potentially reducing overall risk.
- Margin trading enables you to profit from falling markets by selling assets you don’t own, with the aim of buying them back at a lower price.
- Trading on margin allows you to control a larger position size than your available capital.
Cons
- If your trades move against you, you could face substantial losses that exceed your initial capital with margin trading.
- Borrowing funds for margin trading incurs interest costs, which can erode profits if your trades don’t generate sufficient returns to cover the interest.
- Brokers may issue margin calls if your account’s equity falls below a certain level due to losses. You’ll need to deposit additional funds or close positions to meet these calls.
FAQs
The amount of interest you pay for trading on margin varies from broker to broker and is based on the loan amount. Usually, it ranges between 3% and 15% of the contract’s value.
Margin trading in a broker means that you borrow trading funds from your broker to refund with a profit. When you trade on margin, you will first deposit cash as loan collateral then later pay the loan with interest.
Investing in margin starts with you learning how margin trading works. You will then select a suitable margin broker, create a trading account and make the necessary deposit. With your funded trading account used as collateral, the broker will lend you money to buy the assets you are interested in. Once you profit from the trade, you will pay the broker the loan amount with interest.
Yes. Trading on margin is not mandatory, and you can trade various assets without the need for margin.
All the above trading accounts are effective for traders since we all have different interests when trading. However, if you want to maximise your potential of making high profits, a margin account is the best choice. Note that margin trading is risky, and you must know how it works before you put in your money.
Since margin trading can bring about huge profits or losses, it is essential that you remain disciplined and cautious. For this reason, we advise you to try not to use over 10% of your initial investment’s value as a margin. If you must make an extension, let it not exceed 30%, and consider margin brokers with the lowest margin rates.
Conclusion
Margin trading presents a world of potential, but it’s a landscape best approached with caution and knowledge. As a trader or investor, it is crucial to select your broker wisely, educate yourself thoroughly, and establish a disciplined trading plan. Plus, always be mindful of the risks, and never trade with funds you can’t afford to lose. For beginners, use demo accounts for practice, and stay updated on financial trends for maximum experience and potential. Remember, margin trading is not a sprint; it’s a marathon, meaning that success comes to those who prioritise ongoing learning and strategic decision-making.
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.
Learn first! Learn to understand the market, learn technical analysis, learn when to buy, but also when to sell, make some fundamental research, read news …have an overall overview before you go into trade.
Great article. She made margin trading less confusing for me. It pointed me to reliable platforms like eToro, XTB, AvaTrade, Pepperstone. Real user feedback helped me make smart choices. I liked the clear steps on how to start margin trading. The pros and cons were well-explained, making it a must-read for crypto fans like me.
I want to share my impressions of the article about margin trading. A couple of days ago, I was looking for a broker, and the article turned out to be super helpful! The authors did a great job explaining why education is important. I even got interested in delving deeper into this world. The section on choosing a broker is clear and straightforward. Recommendations on safety and FCA are spot on. Now I feel confident. And I understand the difference between margin and margin trading! The article is light but super informative. I recommend it to everyone! Thanks to the authors for this cool guide!