Best Forex Brokers in the UK for 2024: A Head-to-Head Comparison

When comparing the best Forex brokers in the UK, we:

• Confirmed that the brokers were regulated by the FCA or other top-tier authorities to ensure trader protection.
• Opened live accounts at each broker to assess trading costs and platform options for UK residents.
• Reviewed each broker’s educational material (such as e-books, webinars, glossary etc), to ensure they cater to all levels of traders, especially beginners.
• Made deposits and withdrawals at each broker to confirm funding costs and withdrawal times for UK residents.
• Contacted customer support via telephone, live chat and email. We checked response time, service quality and whether or not they have a dedicated UK support team and phone number.

How does the FCA regulate Forex Brokers in the UK?

Forex trading in the UK is legal and regulated by the Financial Conduct Authority (FCA). The FCA requires all Forex brokers operating in the country to hold a valid license and adhere to strict standards, including:

• The provision of segregated trading accounts to protect client funds from broker mismanagement or default.
• The provision of negative balance protection to ensure that client losses can not exceed the amount in the trading account.
• Client fund protection which includes higher margin close-out percentages designed to limit client losses.
• Effective fraud investigation processes and frequently published investment scam reports.

Regulators supervise Forex brokers and other financial services companies to make sure they’re behaving ethically and within the law. Tier 1 regulators, like the FCA, have the best legal structure and enforcement mechanisms in the world, ensuring a clean market and the protection of participants. 

The FCA has the power to take action against any Forex broker that is found to violate its regulations, including revoking their license to operate. It has a register of firms that allows you to check that you are indeed using an FCA-regulated broker. The Authority warns that if a broker is not listed on its register, “it’s probably a scam”. The FCA also maintains a warning list of firms to avoid.

Unregulated brokers are not forced to hold to the same standards. This can lead to a higher risk of fraud or unethical practices, which can result in financial losses for traders. Choosing a regulated Forex broker gives you peace of mind and security, knowing that your investments are protected and your trading experience is fair. Read more about regulation and its importance in Forex trading here.

How to check if your broker is regulated by the FCA

Confirming whether the FCA regulates your broker is a straightforward process. You can find their FCA registration number by navigating to the broker’s homepage and checking the small print across the bottom of the page.

To confirm the registration number is legitimate, you must visit the FCA’s official register page. By entering the broker’s registration number, you can instantly confirm their compliance with FCA regulations.

Scam Brokers and Reporting Regulatory Violations

If you are unsure about the reliability of your Forex broker, you can check our list of brokers to avoid. If you believe your broker has scammed you, the first thing to do is contact the FCA. You can contact the FCA’s complaints department here, and they can advise you on the next steps.

Do I need a broker to trade Forex?

Yes, you will need a broker to trade Forex. Connecting traders to the Forex market is an expensive and technically complex business. Most Forex brokers form a bridge between the global Forex market and Forex traders, called market makers. Market makers buy up large trading positions from the Forex market, which they sell to traders in smaller trade sizes.

Other brokers act as a go-between, taking orders from traders and sending them straight to the global Forex market. These are called ECN brokers or DMA brokers. Both types of Forex brokers require a lot of money to set up and need teams of highly qualified technicians to maintain their trading platforms. 

How much does it cost to trade Forex?

The cost of trading Forex varies depending on what you are trading, how much of it you are trading and how your broker charges you. The two common trading costs are the spread and the commission — these are fees that a Forex trader pays to use a broker’s services. It is important to understand and calculate your costs when trading Forex, as these costs will affect your overall profitability. 

The spread is the difference between the buy price (also known as the offer or ask price) and the sell price (also known as the bid price) quoted for a currency. It can be either fixed or variable. The spread is measured in pips, with the industry average being around 1 pip on the EUR/USD, but higher for other currency pairs. 

The commission is a fee, usually measured in USD, that is charged when you open and close a trade. The industry average is 3.50 USD per lot per side (7 USD round turn), but this often depends on the account type and platform you choose. Not all brokers charge a commission and instead have wider spreads.

To calculate the total cost, use a spread cost calculator, which are widely available for free on the Internet.

Read more about understanding your trading costs in Forex here.

Do brokers charge other fees?

Besides the trading costs, brokers could also charge other types of fees – often referred to as non-trading fees. These fees include swap/rollover fees (a fee your broker either credits or debits from your account balance whenever you keep a position open overnight), inactivity fees (charged to accounts when there’s been no trading activity for a certain amount of time) and fees for withdrawing funds.

Brokers often charge fees for additional paid services such as VPS (Virtual Private Server) hosting, premium trading signals, and access to exclusive versions of trading platforms, such as Tradingview Plus or Premium.

Why is broker regulation important?

Regulation is essential for protecting your money and ensuring a fair and transparent trading experience.

When trading Forex, you want to be confident that your broker is operating legally and ethically and that your funds are handled safely. Regulated Forex brokers must adhere to strict standards set by regulatory bodies, which include requirements for capital adequacy, segregation of client funds, and ongoing reporting and compliance. This means that your funds are protected and your trading experience is fair.

What are the best trading platforms?

The best trading platforms are Metatrader 4 (MT4), MetaTrader 5 (MT5), and cTrader. Another excellent platform is Tradingview, which is harder to find. These are all third-party trading platforms which you can install on your computer. They are fully customisable and have advanced charting tools, research tools, and options for automated trading or copy trading. Some brokers also have their own trading platforms, which we find are often more user-friendly, and are usually accessed via a browser or on your mobile phone. For more details on trading platforms and how they work, check out our guide on trading platforms. 

What is a Forex trading app?

Forex trading apps are trading platforms that can be downloaded to a phone or other mobile device. Forex brokers usually offer them free of charge. Some apps are proprietary, which means they are developed in-house by a broker. However, many popular apps are developed by third-party companies.

The best Forex trading apps let you open a demo or trading account, buy and sell instruments, deposit and withdraw funds from your broker, access real-time market data, display news and analysis, and receive price alerts and other tools to manage your risk. 

Using a trading app offers the convenience and ability to react instantly to market changes directly from your smartphone, transforming how traders manage positions outside of a traditional desktop setup. However, this accessibility has drawbacks, including the potential for overtrading and making impulsive decisions. Additionally, while mobile technology has advanced, trading on a small screen limits detailed chart analysis and risk management, especially in volatile market conditions or with poor internet connectivity.

For more details on trading apps, check out our guide on the best Forex trading apps.

What else can I trade with a Forex broker?

We have found that the best brokers offer traders a wide range of asset classes to choose from, such as Forex, shares, indices, cryptocurrencies (although since 2021, it has been illegal for non-professional traders in the UK to trade cryptocurrencies), commodities, bonds, and interest rates. These trading instruments are collectively known as contracts for difference or CFDs.

Because of rules implemented by the FCA, CFD brokers in the UK have a maximum leverage of 30:1, but other instruments will have different leverage. See below for a list of instruments, their average availability and usual leverage.

Other rare instruments include futures, which are available at brokers such as IG and FP Markets, and Vanilla Options, which are available to trade at Avatrade.

Read more about the best CFD brokers here.

Which Forex broker has the best proprietary platform?

xStation5, developed by XTB, is considered by many (and ourselves) to be one of the absolute best trading platforms in the industry. During our testing, we found the platform to be user-friendly, intuitive, powerful, and fast, and has many advanced features found in other popular third-party platforms, like MT4. xStation5 offers an impressive range of customisable charts, risk management tools, multiple order types, price alerts, and real-time performance statistics to evaluate your trading activity and identify areas for improvement. xStation5 also displays sentiment data on its dashboard so users can view the percentage of traders who bought or sold particular instruments. Overall, we believe that most traders will find trading on xStation5 a great experience.

As a beginner, what should I look for in a Forex broker?

The best brokers for beginners are well-regulated and have a 100 GBP or lower minimum deposit requirement, ensuring security and a low cost of entry. Other important factors include low trading fees and negative balance protection (a requirement for all brokers regulated by the FCA), which both help lower risk. Responsive and knowledgeable customer support is also essential. Customer service should be available at least 24/5 via email, live chat, and telephone (preferably through a local phone number). A few brokers offer customer service 24/7.

Beginners should look for a broker with a high-quality education section; this should feature articles, video tutorials, frequent webinars, advanced trading strategies, and chart analysis.

Check out our dedicated page on the best brokers for beginners for more details and to see which brokers we recommend for new traders.

Which Forex brokers have the best demo accounts?

The brokers with the best demo accounts cater to both beginners and more experienced traders. We have found that these brokers understand that traders need to be able to practise without being forced into trading real money too soon, and be able to test strategies without any restrictions. In our experience, the brokers with the best demo accounts have accounts that are not time-limited and replicate real market conditions as closely as possible. Beginners looking for a demo account will also want a broker with good education sources, so they can learn about Forex trading as they practise.

For more details and to see which brokers we recommend for demo trading, check out our dedicated page on the best demo accounts.

What is leverage? And what leverage is offered by brokers in the UK?

Leverage in Forex trading is a tool that allows traders to control a larger position in the market with a relatively small amount of capital. It amplifies potential gains and losses, as traders can enter positions much larger than their account balance.

All brokers regulated by the Financial Conduct Authority (FCA) have a maximum leverage of 30:1 for retail traders. This means you can borrow 30 times more than your own capital. Offshore brokers may offer leverage as high as 2000:1, which brings very high risks. We always recommend choosing a well-regulated broker to ensure your funds are safe.

Is Forex Trading taxable in the UK?

Yes, Forex trading will generally be subject to either income tax or capital gains taxes (CGT), depending on personal circumstances and the instruments traded. 

In the UK, the most common ways of leveraged trading are CFD trading and spread betting, which are subject to varied taxation. The primary difference is how capital gains tax (CGT) is applied. For the majority, spread betting is tax-free, meaning there is no tax obligation. 

However, CFD trading may be subject to CGT, and the tax rate will depend on your income. This means you will deduct your losses from your profit, and the remainder will be taxable. If you’re a part-time Forex trader, you will have a tax-free allowance for the first £1000 in profits. 

For more information, we recommend contacting HM Revenue and Customs or a tax consultant.