FxScouts follows a strict editorial standard in our review process. We may receive compensation when you click on links to products we review. Please read our advertising disclosure.

We have tested over 100 Forex brokers that offer their services to UK traders, to create a shortlist of the best UK Forex brokers. All UK Forex Brokers are licenced and authorised by the Financial Conduct Authority, which is the financial regulatory body in the UK. The FCA is respected worldwide for its strict and fair oversight of the Forex trading industry, ensuring that FCA-regulated Forex brokers are the most trusted and most secure in the world. 

To test these platforms, we opened both demo accounts and live accounts, set up the trading software, read the educational material, deposited and traded £250, and created all kinds of trouble for the customer service teams. Plus we put the withdrawal procedures to the test to see how long it took to process and receive our money. While experimenting with these brokers, we rate the quality of their financial regulation, trading platform choice and read the fine print to get a grasp of the trading conditions and how transparent the broker is with sharing them. These are the best Forex brokers in the UK for 2021, according to our testing and our research.

English

These are the best Forex brokers in the UK

Last updated on 27 Aug 2021
Updated 27 Aug 2021
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
Pepperstone
Min. Deposit
GBP 5
4.614.61
Min. Spread
0 pips
Fx Pairs
80+
FCA Licence
684312
Platforms
Overall Rating
4.61/5
AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.
2
IG Markets
Min. Deposit
GBP 250
4.694.69
Min. Spread
0.60 pips
Fx Pairs
93
FCA Licence
195355
Platforms
Overall Rating
4.69/5
AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.
3
XM
Min. Deposit
GBP 5
4.254.25
Min. Spread
0.60 pips
Fx Pairs
57
FCA Licence
705428
Platforms
Overall Rating
4.25/5
AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.
4
Axi
Min. Deposit
GBP 5
4.344.34
Min. Spread
0 pips
Fx Pairs
80+
FCA Licence
509746
Platforms
Overall Rating
4.34/5
AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.
5
HF Markets
Min. Deposit
GBP 100
4.154.15
Min. Spread
0.10 pips
Fx Pairs
50+
FCA Licence
801701
Platforms
Overall Rating
4.15/5
AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA. 69.03% of traders lose money with this provider.
6
FxPro
Min. Deposit
GBP 100
4.244.24
Min. Spread
0.60 pips
Fx Pairs
70+
FCA Licence
509956
Platforms
Overall Rating
4.24/5
AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 77% of traders lose money with this provider.
7
eToro
Min. Deposit
USD 50
3.693.69
Min. Spread
1 pips
Fx Pairs
52
FCA Licence
583263
Platforms
Overall Rating
3.69/5
AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.
8
markets.com
Min. Deposit
GBP 100
4.494.49
Min. Spread
0.60 pips
Fx Pairs
67
FCA Licence
607305
Platforms
Overall Rating
4.49/5
AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 , and Marketsx platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC. 74.93% of traders lose money with this provider.
9
FXCM
Min. Deposit
GBP 50
4.134.13
Min. Spread
0 pips
Fx Pairs
40
FCA Licence
217689
Platforms
Overall Rating
4.13/5
AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA. 76.31% of traders lose money with this provider.
10
HYCM
Min. Deposit
GBP 100
4.184.18
Min. Spread
0.20 pips
Fx Pairs
38
FCA Licence
186171
Platforms
Overall Rating
4.18/5
AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. HYCM is regulated by CySEC, FCA, and the DFSA. 74% of traders lose money with this provider.

What to consider when comparing Forex brokers

Regulation: Completely invisible and perhaps the most critical aspect, the regulator supervising your trading account serves to keep your money safe. It is not the number of regulatory agencies that govern the activity of the broker that matters, but the quality of regulatory oversight. 

Trading Conditions: Your trading cost should be as low as possible. Brokers should couple trading accounts with transparent documentation on the spreads and execution policy, and a list of all CFD assets available. 

Education Material: Beginner traders should have a coherent and well-structured trading course alongside a demo account. Advanced strategy, webinars, and market research all contribute to the complete learning experience.

Platforms: Though the brokers with the most trading platforms supported usually offer the best trading experience, this is not always the case. Each trader will have a software preference and should be able to use it at multiple brokers. 


Best Forex brokers for 2021

  • Pepperstone - Best ECN Trading Execution
  • IG Markets - Best UK Broker
  • XM - Broker with the Lowest Spreads
  • Axi - Best ECN broker on MT4
  • HF Markets - Highest Leverage with Market Execution
  • FxPro - Best FCA Regulated No Dealing Desk (NDD) Broker
  • eToro - Best Social Trading Broker
  • markets.com - Best Mobile Platform
  • FXCM - Best Broker for Beginners
  • HYCM - Best for Deposits and Withdrawals

Pepperstone – Best ECN Trading Execution

Pepperstone is the leading Australian ECN/STP Forex broker. Most trades on Pepperstone have execution in less than 30ms, which is ideal for scalpers and clients who run expert advisors. Both accounts offer market execution with some of the tightest spreads in the industry – the Razor Account has spreads from 0 pips for the EUR/USD and 7 USD commission. Furthermore, Pepperstone supports all three major trading platforms – MT4, MT5 and cTrader.

Pepperstone’s award-winning, 24-hour support provides the foundation for its excellent customer service, where personalised assistance is available via several methods. For beginners interested in ECN trading, Pepperstone’s also has one of the better education sections offered by a market execution broker.

Pros
  • Well regulated
  • Tight spreads
  • Great platform choice
  • Wide range of assets
Cons
    AlertAccepts UK Clients. Average spread EUR/USD 0.69 pips with 0.0 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 & cTrader platforms supported. Pepperstone is regulated by the FCA, ASIC, and the DFSA. 79.3% of traders lose money with this provider.

    IG Markets – Best UK Broker

    IG Markets is the world’s largest CFD broker by revenue and listed on the LSE and a member of the FTSE 250, giving IG Markets a stricter layer of oversight than most regulated brokers. Yearly audits and compliance reports to the LSE and the FCA provide a high level of oversight on all CFD trading. 

    IG Markets offers a single CFD account type is offered. Forex trading is commission-free, and spreads start at 0.6 pips on the EUR/USD. Other instruments also available through the same account include commodities, indices, cryptocurrencies, over 16,000 shares and ETFs, options, interest rates and bonds. Negative balance protection is provided to all clients, and all funds are kept in segregated accounts.

    The IG Academy has structured courses for beginner, intermediate and advanced traders and daily classroom-style lessons. Market analysis is updated regularly by the IG Markets research team of finance professionals. 

    Pros
    • Well regulated
    • Tight spreads
    • Great platform choice
    • Excellent education
    • Excellent market analysis
    Cons
    • High minimum deposit
    AlertAccepts UK Clients. Average spread EUR/USD 0.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, ProRealTime and L2 Dealer platforms supported. IG Markets Group is regulated by FCA, ASIC, and the FSCA. 75% of traders lose money with this provider.

    XM – Broker with the Lowest Spreads

    XM is one of the most regulated market makers in the Forex industry and stands out for leading trading conditions, account choice, execution speed and a wide range of CFD assets available on both the MT4 and MT5 platforms. Hedging, scalping and algorithmic trading are all permitted.

    With a minimum deposit of 50 USD, traders can open the XM Ultra Low Account, where spreads start at 0.6 pips with no commission charged. All accounts also benefit from having access to XM’s no-requotes execution policy, and 99.35% of XM orders are executed in less than one second, making XM one of the fastest executors of trades in retail Forex trading.

    Pros
    • Well regulated
    • Excellent education
    • Wide range of assets
    • Fast and free withdrawals
    Cons
    • Dealing desk
    AlertAccepts UK Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC. 77.19% of traders lose money with this provider.

    Axi – Best ECN broker on MT4

    Axi only offers support for the MT4 platform. This singular focus allows them to offer the best ECN MT4 experience with the help of the MT4 NexGen plugin that includes an advanced sentiment indicator, a correlation trader, a more intuitive terminal window, and an automated trade journal. Apart from MT4 NexGen, traders at Axi have access to a range of tools, including AutoChartist and PsyQuation – an AI diagnostic that tracks your trading style and coaches you into more profitable trades. VPS hosting is also available, along with all the trading algorithms which install on MT4.

    The ECN trading conditions come from Axi’s pricing model, which connects to over 20 liquidity sources, so traders experience less slippage and requotes than with a broker with a singular source. Spreads on the Pro Account start at 0 pips with a 7 USD per lot commission, and the leverage maximum is 1:500 for non-European and Australian traders.

    Pros
    • Low minimum deposit
    • Wide range of assets
    • Well regulated
    • Tight spreads
    Cons
    • Poor customer service
    • Limited demo account
    AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. Axi Group is regulated by the FCA, ASIC and the DFSA. 75.6% of traders lose money with this provider.

    HF Markets – Highest Leverage for Market Execution

    Regulated by the FCA, CySEC and the FSCA, HF Markets provides No-Dealing Desk STP execution for all trades. Client’s trades are posted directly to the market, and leverage is flexible up to 1000:1 on the Micro Account where the minimum deposit is 5 USD. Spreads are reasonably tight for the industry, starting at 1 pip even on the Micro Account.

    HF Markets devotes a section of its website to detailed market analysis for beginners and professionals and trading tools; these include daily market news, trade analysis, and outlooks. Trading calculators and economic calendars are also available for reference outside of a trading platform, and customer support is available 24/5 from toll-free local phone number to assist.

    Pros
    • Well regulated
    • Excellent market analysis
    • Copy trading accounts
    Cons
    • Limited base currencies
    AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA. 69.03% of traders lose money with this provider.

    FxPro – Best FCA Regulated No Dealing Desk (NDD) Broker

    FxPro offers an NDD execution model on MT4, MT5, cTrader and a browser-based platform. A 100 USD opening deposit and responsive customer service are combined with competitive spreads – often as low as 0.6 pips. Most trades are executed in less than 10 milliseconds and only 9% of orders receive negative slippage. These execution statistics are ideal for scalpers and traders who like to take advantage of volatile markets.

    FxPro has three accounts, one for each of the major platforms: MT4, MT5 and cTrader. The MT4 and MT5 accounts offer commission-free trading while the cTrader account has a 4.50 USD commission per trade but raw spreads – down to 0.3 pips on the EUR/USD. Also, FxPro has its own FxPro (EDGE) web platform that has bespoke advanced trading features.

    Pros
    • Well regulated
    • Great platform choice
    • Tight spreads
    Cons
    • Limited education
    AlertAccepts UK Clients. Average spread EUR/USD 1.40 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5, cTrader and FxPro proprietary trading platform supported. FxPro Group is regulated by FCA, CySEC, FSCA, and the SCB. 77% of traders lose money with this provider.

    eToro – Best Social Trading Broker

    eToro were the creators of the first social trading system and remains the leading social trading broker in the UK. eToro offers a free unlimited demo account on its proprietary platform, and for traders who want to start trading with a live account, the minimum deposit is 200 USD. 

    eToro’s web-based platform, also available as a mobile app, is intuitive and easy to use. The complex trading features found on other platforms like MetaTrader and cTrader are either removed or are blended into the trading experience in a more natural way. This point-and-click platform is built for beginners and needs little introduction before opening trades. eToro lets traders copy individual traders or algorithmically managed investment portfolios following a selected strategy named CopyPortfolios.

    Pros
    • Well regulated
    • Good for beginners
    • Innovative trading tools
    Cons
    • Limited education
    • Wide spreads
    AlertAccepts UK Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. Only eToro proprietary trading platform supported. eToro is regulated by CySEC, FCA, and ASIC. 67% of traders lose money with this provider.

    Marketsx – Best Mobile Platform

    Marketsx is a trading platform operated by Markets.com that offers traders fast, commission-free trading with spreads as tight as most ECN brokers. Marketsx offers a large variety of tradeable instruments. Over 2000 global shares, 67 currency pairs, 41 global indices, 27 commodities, 60 ETFs, 7 cryptocurrencies, and 4 government bonds. Spreads start at 0.60 pips on major FX pairs with no commission and leverage of 30:1.

    The platform is based on native design for iOS and Android, providing a smoother and more stable trading experience. The Marketsx app has built-in advanced charting – trendlines, channels, pitchforks, and Fibonacci Retracements. The Marketsx trading tools menu features a range of tools that crunch big data from leading analysts, hedge funds, and commentators to give traders better insight into the market. Each tool has integrated buy and sell buttons so traders can act instantly upon the information presented. In the chart view, traders can see their orders, related instruments, and open positions with a single click.

    Pros
    • Well regulated
    • Tight spreads
    • Wide range of assets
    • Fast and free withdrawals
    Cons
    • High minimum deposit
    AlertAccepts UK Clients. Average spread EUR/USD 0.70 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4, MT5 , and Marketsx platforms supported. Markets.com is regulated by the FCA, CySEC, ASIC, and the BVI FSC. 74.93% of traders lose money with this provider.

    FXCM – Best Broker for Beginners

    FXCM is a well-regulated market-maker with tight spreads and low minimum deposits. With support for the MT4 platform, alongside its proprietary and intuitive Trading Station platform, FXCM has options for both beginners and more experienced traders. The education section and the analysis section are updated daily in both video and written form. FXCM also hosts webinars for customers with local professionals providing dedicated expertise. 

    FXCM’s award-winning customer support is available 24/5 via webchat, email and 42 freephone numbers worldwide. Customer support is technically knowledgeable, responsive and prioritises getting beginner traders up and running. With local offices in 10 countries, FXCM also welcomes walk-in visits. FXCM’s also has a free deposits and withdrawal policy.

    Pros
    • Well regulated
    • Great platform choice
    • Excellent education
    • Innovative trading tools
    Cons
    • Limited demo account
    AlertAccepts UK Clients. Average spread EUR/USD 1.30 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. MT4 & Ninja Trader platforms supported. FXCM is regulated by FCA, ASIC, and the FSCA. 76.31% of traders lose money with this provider.

    HYCM – Best for Deposits and Withdrawals

    HYCM is regulated by the FCA, CySEC and the DFSA. A market maker broker with a good selection of trading accounts at low entry prices, with fast and free deposits and withdrawals, HYCM also offers support for MT4 and MT5. Payment methods accepted at HYCM include MasterCard, Visa, Skrill, and Bank Transfer. All deposits are made in less than an hour, and withdrawals (except bank wires) and completed the same day.

    HYCM offers two commission-free accounts, the Classic Account and the Fixed Account. These accounts require a minimum deposit of 100 GBP, but the Classic Account has a variable spread (starting at 1.2 pips on major pairs) while the Fixed Account offers has fixed spreads (starting at 1.8 pips on the EUR/USD). HYCM also offer a Raw Account with spreads starting at 0.20 pips but charges 4 USD commission per round turn and requires a minimum deposit of 200 GBP. Max leverage on all accounts is 500:1.

    Pros
    • Well regulated
    • Wide range of assets
    • Good range of accounts
    • Fast and free withdrawals
    Cons
    • Limited currency pairs
    AlertAccepts UK Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 platform supported. HYCM is regulated by CySEC, FCA, and the DFSA. 74% of traders lose money with this provider.

    How to Compare Forex Brokers

    Though Forex brokers might appear to be similar, they are quite different once you dig a little deeper. To make an effective comparison, our research team judges every Forex broker by the same standards:

    If you have any questions after reading through this guide, please get in touch with us in the comments at the bottom of the page or via our contact page.

    Forex Broker Fees and Trading Costs

    Forex brokers always charge fees for their services. The most obvious fee is the spread (the difference between the buy and sell price of a Forex pair) and some brokers also charge a commission per trade. But brokers also charge rollover fees, and some charge deposit and withdrawal fees. Finally, there is also the minimum deposit to consider. To find out your trading costs you will need a clear understanding of these fees.

    Spreads

    The spread is the difference between the buy and sell price of a currency pair and is measured in pips (the smallest amount by which a currency can change). The lower (or “tighter”) the spread, the less of your own money you will be spending when you trade.

    Brokers with wide spreads or unpublished spreads are marked down in our reviews. Good brokers will publish their spreads for all the currency pairs they offer. When researching a broker, be sure that they publish their spreads and that the spreads are “tight” for the currency pairs you want to trade. If you find a broker that does not publish its spreads you should be cautious.

    Some brokers have fixed spreads, meaning that they never change. Other brokers will have floating spreads which means that they can get lower or higher (“tighter” or “wider”), depending on market movements.

    Commission

    Some brokers may also charge a trading commission in addition to the spread. Brokers that charge a commission are known as ECN brokers; they provide “direct market access” and will have tighter floating spreads down to 0 pips. Commission varies between brokers, but the cost is usually between 4 USD – 7 USD per 100,000 USD traded.

    ECN brokers who charge more than 7 USD total commission and have average spreads over 0.3 pips should be avoided and we mark them down in our reviews.

    Some brokers will offer both standard accounts (with no commission and a wider spread) and ECN accounts (with a commission and a tight spread). If you decide to trade with an ECN account, you will want a low commission and an average spread close to 0 pips.

    Rollover Fees

    The rollover fee is a small fee charged by brokers for holding a trading position overnight. It is usually charged at 17:00 EST (New York time). This fee is based on the interbank interest rate for each currency in a currency pair. Sometimes these interest rates can work in your favour and you will gain interest on your position rather than be charged by the broker.

    All brokers will charge rollover fees. This fee can only be avoided by opening and closing your trades on the same day.

    Deposit and Withdrawal Fees

    Better brokers will charge no fees for deposits and withdrawals, and the worst brokers will have very high fees and delayed payouts. Brokers that charge high fees or take a long time to process withdrawals are marked down in our reviews. When you are looking for a new broker, always make sure to check the fees for deposits and withdrawals for your preferred payment method. Just because a broker charges fees does not mean that they are bad, but it is always something to be aware of.

    Most brokers will charge no fees for transactions via online payment systems like Skrill, Neteller or Ozow. Credit and debit card transactions are also often free, but bank wires will usually be charged by your bank for both deposits and withdrawals. Some brokers will charge a percentage of the deposit or withdrawal, which can get expensive if you make large deposits and withdrawals.

    Minimum Deposit

    Most brokers will require a minimum deposit to open a trading account. For some brokers this will be R70, for others, it may be R1500 or even R3000.  Larger deposits usually unlock improved trading conditions and other perks. We do not mark down brokers for having accounts with higher minimum deposits, but we do think it is important for beginner traders to have an account that is not too expensive to open. 

    What level of minimum deposit you are comfortable with depends on your financial situation.  But, brokers who expect beginner traders to spend a lot of money to open an account are being unfair.

    Broker Trading Conditions

    Forex brokers all have different trading conditions and they will affect your trading experience and trading costs.

    Apart from the spread, there are several other important trading conditions to consider. One of the most important is the leverage offered by a Forex broker. Other trading conditions are a broker’s execution method and execution speed, the base currency of your trading account, what assets are available to trade and whether scalping and hedging are allowed.

    Leverage

    Leverage is money borrowed from your Forex broker to increase the size of a Forex trade. Leverage is essential in Forex trading because the movements of the market are too small to make a decent profit unless you place thousands of dollars on each trade. Brokers will always advertise the maximum leverage they offer in a ratio format, such as 30:1, 100:1, 300:1, etc. The maximum leverage varies between brokers.

    Leverage can be used to make large profits with little of your own money, but you can also quickly lose more than your original investment. If the trader opened a position with 10 GBP and 300:1 leverage, the traders would borrow 300 times their capital from the broker making the actual trading capital in the trade 3000 GBP.

    As leverage is borrowed money, the trader is responsible for the full amount of your trade. Should the trader be unable to cover the losses, the broker will use trading account funds to settle the debt. If this is still not enough to cover your losses, you may end up owing your Forex broker money, unless they offer negative balance protection

    When comparing brokers, you want to see that they offer enough leverage to make Forex trading profitable. In the UK there are restrictions on leverage and negative balance protection is required. Always check that your broker provides negative balance protection before you start trading.

    Execution Speed and Execution Method

    Execution speed is how fast a broker will open your trade and is linked to a broker’s execution method. We do not mark brokers down in our reviews for their execution method, but we will always mention it as we know that some traders have a strong preference.

    Market maker brokers will offer instant execution, thus preventing changes in price while your trade order is processed (slippage) or the rejection and return of your trade order (requotes). When you trade with a market maker broker, they do not place your trade on the Forex market, but instead, act as counterparty to your trade. While there is a conflict of interest in this business model, because when a trader loses the broker profits, most market makers take their prices from the large banks and regulation prevents them from manipulating market data.

    Brokers who offer market execution are either ECN brokers or STP brokers. ECN brokers operate as a hub for a network of liquidity providers and will automatically find the best price for your trade from the members of their network. STP brokers have more control over which liquidity provider to use and generally have faster execution speeds. Some market execution brokers are hybrid ECN/STP brokers.

    Base Currencies

    A broker will let traders choose the base currency with money will be held in. The most common base currency is the US Dollar (USD). The majority of brokers will also offer Euro (EUR) or Pound Sterling (GBP) accounts. We do not mark brokers down in our reviews for not having GBP accounts, but it is something we will highlight as we know how important it is for UK traders.

    Trading Assets

    Better Forex brokers will offer 50+ currency pairs to trade. Many Forex brokers are also multi-asset brokers, especially the larger ones, which means that you can also trade other financial instruments such as cryptocurrencies, equities, commodities, precious metals, indices, and bonds. Brokers that have fewer currency pairs to trade will be marked down in our reviews. We also mark down brokers who do not offer at least a few other financial instruments to trade.

    Hedging and Scalping

    Not all Forex brokers allow scalping. A Forex scalping strategy is where a trader seeks to profit from rapid price changes in a short period. A scalper, a trader who employs a scalping strategy, enters and exit trades several times a day, and closes all trades on the day they were opened. 

     Not all brokers allow hedging on their platforms, but most market execution brokers do. Hedging is protecting yourself against adverse price movements that would affect open trades and is a form of insurance. Direct hedging is a common strategy, where a trader buys a currency pair and then sells the same pair at the same time.

    Regulation: UK Financial Conduct Authority (FCA)

    The single most important aspect of judging a Forex broker. Regulation ensures the security of your funds and offers protection against fraud, broker manipulation and broker bankruptcy.  Simply put, having a regulated broker is not optional. The FCA is the UK’s regulator. 

    Regulators ensure that brokers abide by the law and don’t cheat their clients. They ensure that brokers keep company money and trader’s money in separate accounts. They also ensure that brokers have enough money to keep going even if they make heavy losses.

    Some traders believe that unregulated brokers are rare, but this is not the case. Unregulated brokers will often claim to be regulated, so you should always check.

    Checking if a broker is regulated is easy and only takes a couple of minutes (and could save you a lot of money and heartache!) Once you are finished reading this section you will be able to check if a broker is licensed with all the following regulators:

    The UK’s Financial Conduct Authority is seen as the best financial regulator in the world. It’s no surprise that their search function is the easiest to use and the most thorough, you can access it here: https://register.fca.org.uk/s/. Like other major regulators, all brokers with an FCA licence are required to publish their FCA reference number on their website, here is AxiTrader’s (FCA license – 509746) FCA number at the bottom of their website:

    AxiTrader FCA Number

    AxiTrader is the trading name of a larger financial group, in this case, the FCA licence holder is AxiCorp Limited. Using the FCA reference number, we can search the FCA’s database of registered companies and find AxiCorp Limited’s entry:

    AxiTrader FCA Entry

    Notice that the FCA also warns of unregulated brokers that are attempting to use AxiCorp’s identity to scam unwary traders.

    Broker Customer Support

    Better Forex brokers have customer support available 24 hours a day (Monday-Friday) via live chat, telephone, messaging services and email. It is also important that a broker has great IT support, as setting up a trading platform can be tricky for new traders. We highly rate brokers that offer 24-hour support and weekend support.

    Forex Trading Platforms

    Brokers will always offer you a trading platform to access the Forex market. While a select few brokers have proprietary software unique to their brokerage, many use independent trading programs like MT4MT5 or cTrader. We know that Forex traders value choice and brokers with a range of platforms will be rated higher in our reviews.

    If you are a beginner seeking to learn more about platform options, we have put together a guide to the best Forex trading platforms and the brokers that support them. All brokers have mobile trading apps, and some will have developed proprietary apps, but a vast majority rely on the MetaTrader app for IOS and Android.

    Brokers for Beginners

    Some brokers are better than others for beginners. The best brokers for beginners will have clear and practical educational material, insightful market analysis and top-notch customer support. Some brokers will also offer one-on-one training, live webinars and real-world seminars.

    Demo Accounts

    All brokers will offer a demo account. It is important for beginner Forex traders to have a demo account that will not expire, so you can be completely comfortable with the market and the trading platform before you start trading with your own money.

    Swap-Free (Islamic) Accounts

    Islamic accounts, or swap-free accounts, are an optional trading account type that allows Forex traders to be compliant with the principles of Sharia law. In Sharia law, interest is prohibited, so swap-free accounts do not pay or earn overnight interest (rollover fees) on open positions.

    Managed Accounts

    Some brokers will operate a managed account for you, but this is rare. There are independent money managers who can manage your account while they are trading for themselves. It is vital that you read our article on managed accounts and understand the minimum deposit requirements and additional risks involved when trading CFDs.

    FAQs

    What is the best UK FCA-regulated Forex broker?

    The best brokers are IG Markets, Pepperstone and XM. IG Markets is a good all-round broker with low fees and tight spreads. Pepperstone is trusted by thousands of traders across the world and has a wide range of account types. XM has tight spreads and a generous education offering.

    I am a beginner trader, what should I look for in a broker?

    As a beginner trader, choose a broker with an unlimited demo account, as this will give you the opportunity to practice before making a deposit. Limited demo accounts usually expire after 1-3 weeks, which is not enough time to learn how to profit from CFD trading.

    Beginner traders should get educational support when starting, and each broker varies significantly in what material they provide. The minimum you should accept is some general videos and articles, but some brokers have invested in creating small trading universities that include video material as well as live webinars hosted by experts.

    Each of our reviews has a section on the educational content to help beginner traders decide the best path forward.

    Which is the best Forex brokers for beginners?

    The Forex broker for beginners is XTB.  Customer service is available 24/7 with both one-on-one mentoring and dedicated account managers provided for new traders. Educational material is excellent and is presented via XTB’s Trading Academy, which is both well-structured and clear. Finally, minimum deposit requirements are low, and spreads are tight.

    How do I know I can trust a Forex broker?

    Four things should be considered when determining if a broker may be trusted – regulation, trade execution method, client funds management, and industry recognition of their achievements.

    The more major regulators the broker group is regulated by, the more oversight the group has. The number of regulators overseeing their processes gives a strong indication of the level of trust the government regulatory agencies have in them.

    The execution method of trades is another component because if the broker profits from your loss – as is the case with market maker brokers – this can be seen as making the broker less trustworthy.

    This is more of a concern if fewer major regulators regulate a market maker. Therefore, a heavily regulated market maker is considered more reputable than one with lesser regulation. It is noteworthy that some market makers have strong reputations and lots of client resources.

    Most regulators require strict processes to keep client funds safe. This process includes placing client funds in segregated accounts at major banks in the local jurisdiction. Segregated bank accounts that are audited every evening means that client funds are protected against any bankruptcy.

    Industry awards are given to brokers from journalists, financial watchdog organisations and their peers. While it can be argued that these award ceremonies are biased, they remain the best gauge industry recognition.

    Do brokers trade against you?

    If the broker is a market maker, then they are the market and will be trading against you by being the counterparty to your trade to create the liquidity you need. Since a vast majority of trades by retail traders are lost, a market maker is making money in most client trades. DMA brokers do not have any conflict of interest and do not trade against you.

    How do brokers make money?

    Market Makers will make money only from the spread – the difference between the buying and selling price of the currency pair. Since a Market Maker will become the counterparty to any trade, they will also make money when clients lose trades.

    DMA brokers will make money from a tight spread and a commission, which is calculated on a per lot amount.

    How to deposit with a broker?

    Each broker is going to have different deposit methods, but all will have a deposit by credit/debit card and bank transfer option. Most brokers will also accept Neteller or Skrill, which are favoured by many traders because deposits and withdrawals are instant and usually free.

    Some will accept regional payment methods and, on occasion, brokers will accept Bitcoin deposits.

    Which broker should I choose?

    Traders have different requirements of Forex brokers, and thus there is no single best choice. This is how we compare them, and we offer insight into your choices. At the top of this article, there is a list of those that we believe are the best brokers for traders based on their reputation, platform, trading conditions and resources available to beginners.

    How can I report scam brokers?

    If you believe you have been scammed by your broker, the first thing to do is warn others and tell your story.  We have a report a scam broker form which we use to gather information so that we get the word out.  If you have been scammed, please complete the form.

    Forex Risk Disclaimer

    Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

    Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

    Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

    Our Rating & Review Methodology

    Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

    With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

    In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

    All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

    References

    Featured Brokers

    Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Close
    >