Plus500 has been one of the best CFD brokers globally since 2008. The broker offers a wide range of online CFDs on forex, shares, commodities, and more!
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ESMA is a financial regulatory authority overseeing the activities of brokers within the EU. You probably must be wondering why UK clients need such brokers even though the UK is no longer part of the EU. Well, ESMA imposes high regulatory standards that protect clients. Besides, UK traders were already accustomed to ESMA rules before Brexit. Simply put, ESMA brokers offer quality services and make it easier for UK traders to explore other markets within the EU.
So, how do you choose the best ESMA-regulated brokers in the UK? Our team did all the legwork and share below the top options that have been thoroughly tested. Here, we also enlighten you more on ESMA regulations, how they benefit you and share tips for getting started using such brokers in the UK.
As experts in this field, our goal is to supply quality information and unbiased recommendations. In this regard, we can assure you that the ESMA-regulated brokers we list here have undergone thorough market research. The research involved multiple tests and user review findings from Google Play, the App Store, and Trustpilot. We strive to remain as unbiased as possible so every reader can find an option that best suits their trading requirements.
Licenses/Regulations
Market Instruments
Broker’s Platform
Payment Methods
Customer Support
Commissions & Fees
That being said, we share below our comparison table highlighting the key elements that make our recommended ESMA regulated brokers stand out. We hope the table will help you identify a suitable option.
Brief Overview of Our Recommended ESMA Brokers’ Fees and Assets
Choosing the right ESMA broker is crucial if you want to have a maximum experience. Consider various elements in this process, including security, fees, asset offerings, support services, payment methods, and more. We will take you through how to choose the right ESMA broker later in this guide. But first, let’s understand the applicable charges and assets you will explore at these brokers we recommend.
We tested eToroand had one of the best experiences, particularly when it comes to stock trading. The activity is commission-free and we explored over 4960 shares, including global options like Tesla, Microsoft, and more. Moreover, eToro hosts additional asset classes like forex, commodities, cryptocurrencies, and more. This makes it easier for you to diversify your portfolio and limit the risk of losing money on a single asset.
eToro does not impose deposit fees whether you transact via debit cards, e-wallets, or bank transfers. However, you will incur withdrawal charges of $5. With extra features like social trading and an Investor Program, we believe eToro can accommodate all types of traders. We can’t go without mentioning the broker’s vast learning materials, including guides, articles, webinars, videos, and more.
1
eToro Review
TradingGuides Rating:
✔Copy/Social trading
✔Low minimum to fund an account and begin investing
Low minimum deposit requirement of $100 for UK clients.
Offers a £100,000 virtually funded demo account suitable for newbies.
Cons
Withdrawal charges apply
No third-party platforms like the MT4
Types
Fee
Minimum Deposit
$50
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)
Stocks – there are more than 6000 stocks offered ranging from the biggest tech businesses in the U.S. to smaller companies from all over the world. Stock trading is always commission-free with eToro.
Cryptocurrencies – being one of the first brokers to jump on the cryptocurrency bandwagon, it comes as no surprise that eToro dominates this segment. With more than 20 coins and a number of cryptocurrency pairs, there is enough for all crypto traders.
Currency Pairs – in the early days, eToro was just another FX broker and even though they’ve developed since, the broker has stayed true to its roots. As a trader, you can choose between 56 currency pairs ranging from majors and minors to a few exotic ones.
Long-Term Investments– unlike many online brokers, eToro is also suitable for long-term investments. For example, their investment portfolios are a great way to diversify your portfolio and limit risk.
Additional assets – in addition to the above, eToro provides access to commodities, indices, and ETFs as CFDs. There is also a range of unique assets such as Crypto Portfolios that are only offered by eToro. This means that you can create a diverse portfolio with ease.
2. Plus500 - ESMA Regulated CFD Trading Broker for Mobile Trading
When looking for the best ESMA trading app for your mobile device, Plus500 takes the lead. This is not only because of its impeccable performance but users on Google Play and App Store rate it as the best. We also found the app to be user-friendly and easy to navigate. Plus, it has robust security measures like two-factor authentication and face ID to prevent unauthorised access to your account. Note that this ESMA regulated broker has a low minimum deposit requirement of £100 with zero transaction costs.
Although Plus500 only offers CFD instruments, its diverse asset class offerings make it easier for you to diversify your portfolio. We also noticed that there are no third-party platforms like the MT4 and MT5. However, this doesn’t limit its offerings since professional traders can still benefit from advanced resources on its Professional Trading platform. You can also trade CFDs across various markets with zero commission.
1
Plus500 Review
TradingGuides Rating:
✔ Educational materials
✔ Regulated in many countries
Does not host third-party platforms like the MT4/5
Type
Fee
Overnight Funding
yes
Currency Conversion Fee
0.7%
Guaranteed Stop Order
spread applies
Inactivity Fee
$10 per month
Withdrawls/Deposits
$0
Plus500 provides access to 2800+ CFDs across a wide range of different asset classes, including: Indices – Country and Sector, Forex, Commodities, Individual shares, ETFs, Options
Note: 76% 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. Capital com - Best For Leverage-Free Trading
Finding an ESMA-regulated broker that allows trading with no leverage can be challenging. Fortunately, Capital.com has made it easier with its 1X account. While the account only allows users to trade over 2,700 CFD assets on shares and indices, there is no overnight funding for positions opened on the platform. On top of that, spreads are among the lowest at 0.0 pips on major currency pairs.
In addition to leverage-free trading, Capital.com also supports spread betting. You can also trade over 5,000+ CFD assets with flexible leverage limits up to 1:30 for retail clients. The assets supported for UK clients include shares, forex, commodities, and indices. And the best part is that you can start exploring these instruments and features with as little as £20.
When it comes to platform offerings, you have a variety of options to choose from. Besides its proprietary Web and mobile platform, there are MT4 and TradingView. These come with quality resources for strategy development, including 100+ technical analysis indicators, drawing tools, unlimited watchlists, social trading, and more.
Its 1X leverage-free account gives access to over 2,700 securities
Quality trading tools on its MT4 and TradingView platforms
Has an Investmate app loaded with quality learning resources
Cons
There is no buying and taking ownership of the listed assets
You can only trade shares and indices on its 1X account
Type
Fee
Minimum Deposit
$0
Withdrawal fee
$0
Deposit fee
$0
Inactivity fee
No
Account fee
No
1200+ instruments across FX, indices, cryptocurrencies*, equities, energy and commodities, and more, across three, free powerful platforms.
*Only Pro clients get access to cryptos.
4. FxPro - Top Broker for MetaTrader Users
We find FxPro to be a reliable ESMA-regulated broker for MetaTrader users due to its support for MT4 and MT5 platforms, plus additional exciting features. While trading, accessing these platforms was seamless, and we got access to quality features. These include automated trading, chart trading, Depth of Market, 35+ indicators, and many more. These helped me effectively plan my activities and know when to open a position.
In addition to MT4 and MT5, FxPro hosts cTrader and TradingView. These platforms are also loaded with high-quality, unique resources that guarantee an exciting experience for all types of traders. We also like that FxPro has multiple trading accounts to suit different types of traders. For instance, there is the Edge Spread Betting account that allows you to spread bet across 2,100+ assets commission-free with spreads starting from 0.0 pips. Alternatively, you can choose between Standard MT4/5, Raw+ MT4/5, and cTrader.
When it comes to learning resources, FxPro’s “Knowledge Hub” offers a wide range of options, from articles and guides to webinars and seminars. We also like its support service and the professionals behind it. While it operates only 24/5, the team is very responsive and offers relevant solutions to any matter you bring to them. This is whether you use live chat, phone, or email.
Low minimum deposit requirement of £100 for UK clients
Free deposits and withdrawals
Multiple platforms, including MT4, MT5, cTrader, and TradingView
Reliable support service operating 24/5
A user-friendly platform for desktop and mobile trading
Cons
No physical purchasing of the featured securities
Charges an inactivity fee after only 6 months of the account’s dormancy
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.
5. IG Markets - Leading Option for ETF Investing
IG Markets is one of the pioneers of online trading, and it continues to adapt to advancing technology to ensure its users receive the best service. The fact that it is regulated by the ESMA and the FCA makes it highly secure for UK clients. We primarily recommend it for ETF investing because it lists over 3,000 ETFs, which you can explore through IG’s share-dealing and ISA accounts. Plus, ETF investing offers low commissions, with a currency conversion fee of just 0.7%.
Besides ETFs, IG Markets allows investing in 12,000+ shares through its share-dealing, ISA, and SIPP accounts. You can also invest in cryptocurrencies and diversify your portfolio with an additional 15,000+ CFD instruments, including forex, indices, bonds, IPOs, commodities and more. And the best part is that you have an opportunity to earn up to 4.00% AER variable interest on your GBP cash balance.
For beginners, IG Academy hosts quality learning materials to familiarise the markets with. Moreover, it has proprietary web and mobile platforms that are user-friendly and allow trades to be executed seamlessly. Alternatively, you can get started with demo account, which is loaded with £10,000 virtual money to trade with.
1
IG Markets Review
TradingGuides Rating:
✔ Extensive range of offerings ✔ Leading broker with low fees
The numerous features and multiple platforms can challenge newbies to navigate
No MT5 platform
Account Standard
Account RAW
Account PRO
Opening an account
$50
$50
$10.000
Spreads
From 1 pips
0 pips
0 pips
Commissions
$0
From $3 per lot per side
From $1.5 per lot per side
Withdrawal fee
$0
$0
$0
Deposit fee
$0
$0
$0
Overnight fee
$0
$0
$0
Clients can trade on popular currency pairs, indices, stocks, commodities, precious metals, cryptocurrencies and more than 500 tokens and coins.
6. Spreadex - Best for Spread Betting
Spread betting at Spreadex gives you access to over 10,000 securities. During my time, we were able to explore forex, ETFs, shares, indices, and more on its powerful and customisable platform. What we like most about Spreadex is that it has no minimum deposit requirement and all transactions are free. On top of that, there are no commissions for both spread betting and CFD trading. While you will incur spreads, they are low, starting from 0.6 pips on major currency pairs.
We found Spreadex to be user-friendly, whether you use a desktop or a mobile device. While it doesn’t have a demo account, its support service team is dedicated to helping you find relevant solutions to your concerns or questions. For advanced traders, this broker gives access to the TradingView platform. It is one of our favourite platforms because we get to enjoy excellent features, including social trading, charting, and analytical tools.
Additional CFD assets are available for portfolio diversification
Cons
No demo account
No MetaTrader platforms
Types
Fee
Minimum deposit
€0
Withdrawal fee
€0
Inactivity fee
€0
Deposit fee
€0
Custody fee
€0
Currency conversion
0.25%
Degiro offers a wide range of assets for traders as ETFs, Stocks, Bonds, Futures, Options, Structured products, Funds, Cryptocurrencies, and Commodities.
What is ESMA?
The European Securities and Markets Authority (ESMA) is a financial regulatory body overseeing the activities of financial institutions in the European Union. Its goal is to foster financial stability and efficiency in the EU’s financial landscape, thus boosting investor protection. The authority was established in 2011 and is currently based in Paris.
Note that ESMA is an independent authority. It cooperates with the European Systemic Risk Board (ESRB), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) and national competent authorities (NCA) to ensure proper maintenance of financial stability in the EU.
ESMA ensures that national authorities like the UK’s FCA adhere to its laid down regulations within their regions. It tracks and assesses market trends to come up with favourable regulations for consumers. Plus, it identifies potential vulnerabilities and sends warnings and recommendations to strengthen financial supervision.
How the ESMA Protects You
ESMA creates various rules to enhance financial stability within the EU. Its main goal is to protect traders and ensure they get a favourable environment that will maximise their experience. For instance, ESMA regulation imposes leverage limits for retail traders across various asset classes to reduce potential risks and exposure. As you probably know, applying leverage can maximise profits or leave you with massive losses. This approach ensures retail traders are not prone to huge risks.
Additionally, ESMA protects traders through its negative balance protection scheme. This means that retail traders cannot lose more money than what they have deposited in their accounts with regulated brokers. There is also the margin close-out rule, whereby your open position automatically closes when your funds fall below a certain percentage.
Overall, it is advisable to stick with an ESMA-regulated broker in the UK to avoid falling victim to scammers. Be knowledgeable of the laid regulations for brokers and traders to enjoy your experience. You will also avoid violating rules that could lead to penalties or restrictions on various trading activities.
How to Choose the Right ESMA-Regulated Trading Brokers UK
Trading in the UK’s financial landscape requires proper planning and strategies. Most importantly, you need the best broker with features aligning with your trading requirements. This is so you can enjoy your experience while maximising your chances of managing successful trades.
Note that there are many ESMA-regulated brokers in the UK. For this reason, it can be challenging to compare the variety of options and make a suitable choice. Fret not, though, for we share some tips below to ensure you identify the right choice for your needs.
The UK’s financial landscape hosts both legitimate and fraudulent brokers. Therefore, to avoid falling victim to scammers, ensure you confirm the regulatory status of a broker. The broker you select must not only be ESMA regulated but also overseen by the UK’s Financial Conduct Authority (FCA). With such brokers, you are guaranteed a secure trading experience. For instance, your funds will be stored in segregated accounts only accessible to you. Plus, it will be easy to take legal action against a broker in case of an agreement breach.
Different brokers offer different trading platforms to suit different types of traders. Therefore, ensure your ESMA-regulated broker’s platform is user-friendly, customisable, and modern in design. Plus, the platform should be fit for your skill level and support quality tools or resources for market analysis and strategy development. For beginners, settle with an ESMA broker with a demo account. You should also consider trading app availability so it will be easier to manage your activities even while on the move.
Before considering trading the financial market, you probably have an idea of the asset/s you want to explore. In this regard, choose an ESMA broker offering your preferred securities and more. While trading can bring good profits, diversify your portfolio across different asset classes like forex, shares, commodities, and more. This way, you do not incur massive losses in case one trade fails to work out in your favour.
ESMA brokers in the UK have varying trading and non-trading charges. Therefore, start by setting aside trading funds for the activity. Then select a broker that fits your budget by considering various elements. These include minimum deposit requirements, deposit/withdrawal fees, inactivity charges, financing fees, and more. Be thorough during this process and ensure there are no hidden charges.
Choose a broker with the right payment methods to avoid wasting time and money in transactions. For instance, our recommended ESMA brokers above support deposits and withdrawals using multiple methods, including credit/debit cards, e-wallets, and bank transfers. This means that every trader will have a suitable choice so they can focus entirely on managing their activities.
Both new and professional traders have bad days while trading or investing in the financial space. With the advancing technology, things change, and you might find yourself requiring some clarifications or guidance. With a broker backed up by a professional support team, you are guaranteed quality assistance. Remember, some brokers operate 24/7 while others five days a week. Therefore, choose a broker whose availability aligns with your trading schedule.
Always confirm what other users say regarding their experiences with an ESMA-regulated broker. This way, you can understand both the positive and negative elements that come with a broker you are considering for an informed choice. To get honest user opinions, visit Google Play, the App Store, and Trustpilot.
How to Register an Account with an ESMA-Regulated Broker
Now that you are familiar with the top ESMA regulated brokers in the UK, let’s dive into how to create a trading account using either of them. Note that since they all are overseen by ESMA and the FCA, the procedures involved are similar.
You must visit an ESMA broker’s website to set up a trading account. On this page, we share links to give you direct access to their websites. Once there, start by reading and understanding your broker’s terms of service. This will ensure both parties are on the same page, and you are guaranteed an exciting experience. Moreover, consider installing your broker’s trading app on your mobile device to manage your activities on the go.
Click on the register or sign up button at the top right corner of your broker’s website to begin the registration process. Most FCA and ESMA-regulated brokers will provide you with a form to fill out using your personal details. These include your name, email, phone number, date of birth, and more. Your broker will also require you to create a unique username and password for added protection to your account. You do not want to have unauthorised access to it.
The next step involves participating in account verification to fully set up your account. This is a standard protocol set by the FCA and ESMA to ensure the UK’s and EU’s financial space is free from imposters. Your broker will request copies of your personal documents as proof of identity and location. These include your government-issued ID card and utility bill, respectively. You can also submit copies of your passport or bank statement.
At this point, you can fund your account per your broker’s minimum deposit requirement. Ensure you transact with a convenient option to avoid wasting time in transactions or currency conversions. For our recommended brokers above, you can use credit/debit cards, e-wallets like PayPal and Neteller, and bank transfers to fund your account.
Once your deposit has been confirmed by your broker, proceed to select an asset you prefer. Then, choose a trade size based on your budget and apply risk management controls before opening a position. If you are new to a broker, we advise you to start trading using its demo account. Here, you will not spend your hard-earned money, meaning that you should also not expect to earn real cash profits. You can then transfer your activities to a live trading account once you feel confident in your skills and are ready to risk real money.
FAQs
What does ESMA stand for?
ESMA stands for European Securities and Markets Authority.
Is ESMA a regulator?
Yes. ESMA enhances the protection of investors by promoting a conducive and safe financial market.
What is ESMA approval?
ESMA approval means that ESMA approves your activities in the financial markets.
Where is ESMA located?
ESMA is located in Paris.
Are ESMA regulated brokers safe?
Yes. ESMA is a European Union financial regulator with global recognition, meaning that your trading funds are safe with any broker regulated by it.
Conclusion
Trading the financial landscape can be lucrative if you have solid plans and strategies. With an ESMA-regulated broker in the UK, you can easily make efficient and strategic moves that will maximise your potential. Plus, you are guaranteed your funds protection and favourable leverage limits. Such brokers make trading stress-free since you will entirely focus on managing your activities.
That being said, you can try any of our recommendations above that you believe will suit your trading requirements. Start by exploring its performance via its demo account before making a commitment. Remember, success doesn’t come overnight. Therefore, even if you have the best broker, ensure you remain disciplined, strategise and be open to learning from your losses.
How we test?
Our evaluation and testing process is thorough and exhaustive. First, we conduct extensive research. Our experts visit each broker’s official site and assess every offering. Then, we go to credible review sites like Trustpilot, Google Play, and the App Store and read user testimonials and feedback. After research, our experts proceed to the next step: testing.
The testing phase is critical in determining if brokers deliver as promised. We used demo and live accounts to vet available trading platforms, tools, and other resources. While doing so, our experts strive to identify the most pronounced strengths and weaknesses.
Why do we do all that? It’s simple. You are a valued member of the TradingGuide family, and we are committed to doing everything in our power to ensure you have access to the best brokers. Find out more about our test process here.
Is a regular dad trying to be smart about how we play and win in this big game of life. He has worked within the very best of the financial industry producing numerous training resources. He is an experienced copywriter with immense financial background. Now earns a full time living as a Trader, and as our writer.
His articles help everyday families build sustainable wealth, stop stressing about their financial security, and start living the life they’ve always wanted.
If he is not trading or writing, he is at the gym.
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