The Forex Market in the UK is expanding faster than ever before. The trend is more beneficial to the traders because they can now pick up various trading platforms, analyse them and finally choose what matches their needs. However, when it comes to the fast expansion of the forex brokers on the internet, we should comfortably say that some countries are contributing positively to that. The popularity of brokers highly depends on their country and brokers from the UK and Cyprus are the most popular. The two countries have huge markets and most traders from all over the world base their selection of forex brokers on them. We are not underestimating brokers from other countries, but today we will focus on the UK market and the selection of brokers from this country.
Top Forex Brokers in UK 2021
- Online Since 2009
- Regulated by ASIC, CySEC, FCA (UK), IFSC
- Spread From 1 Pips
- 5 Digit (5 Decimal Pricing)
- Leverage Up to 1:888
- MetaTrader 4 & MT5 Platform
- Free Swap & Commission
- Online Since 2008
- Regulated by CySEC, FCA UK, FSP, BaFin, CRFIN
- Spread From 0 Pip
- 5 Digit (5 Decimal Pricing)
- Leverage Up to 1:2000
- MetaTrader 4 & MT5 Platform
- Free Swap & Commission
The regulation of forex brokers in the UK
Speaking of regulation, the UK-based brokers are listed among the strictly regulated. That is because regulation in the country is solid and has a good reputation. Most traders believe that brokers from the country are highly secured and safest and they, therefore, opt for them. That is beginners. The advanced forex traders claim that regulation in the country is among the most trustworthy.
Here are the authorities in charge of forex brokers in the UK.
- The Financial Conduct Authority (FCA)
The Financial Conduct Authority abbreviated FCA and the ex-FSA is the regulating body for forex brokers in the UK. The financial regulatory body works independently from the government and gets its money from the fees customers in the financial services industry pay. It focuses more on wholesale and retail financial services. All the actions they put into force apply to UK forex brokers and their customers. FCA licenses the brokers and punishes the violations. This agency also accepts signals from the customers, particularly those relating to fraudulent behaviours. Moreover, they focus on the safety of the trader’s data and the safety of all financial transactions.
- European Union
The UK is an official member of the European Union and therefore it benefits from the additional safety measures the EU has adopted. The double protection makes the forex brokers in the UK trustworthy. Keep in mind that the EU has its specific procedures that brokers in the UK must observe. It is known to charge trading websites in the event of a giant violation. However, their main job is to advise traders and they recommend the best forex brokers in the UK.
So, how do you choose a forex broker in the UK?
Forex traders in the UK know that their investments are safe. However, you should not go for any broker. You have to ensure that they have the best specifications. Here are the key factors to look for when choosing a broker.
There is no point of depositing your money in an unsafe forex trading account. The money is likely to be misappropriated or stolen. You might spend your time studying the charts and market trends only to make losses at the end of the day. A higher level of security is the first thing to consider when choosing a forex broker. You should not hand over your money to a broker just because they claim to be legit brokers and because they are based in the UK. Fortunately, the process of ensuring that a forex broker is secure is a simple one. The FCA checks the credibility of all the brokers in the UK and they are there to help you distinguish the fake brokers from the trustworthy ones. Ensure that the broker you are about to choose is part of this regulatory body and the traders do not complain of fraudulent activities.
- Initial deposit
The required initial deposit amount is the other important thing to check. Most traders would want to risk the least amount possible when starting their careers. However, the initial deposit amount should be the last consideration unless you have capital limitations. Brokers who offer excellent services choose to set their initial deposit high to be sure that the clients are serious about their trading. Unfortunately, forex is highly volatile and many people who undercapitalize their accounts have found them wiped out in a single day.
Risk an amount that you can afford to lose. So, a broker who allows you to do that is a good choice. Starting your trading career with pittances like $10-50 and then trading at 10:1 leverage is unwise. Trading in such amounts is similar to using a demo account – the emotional lessons you gain might not be of any value to you.
- Trading platforms
To succeed in forex trading, you will need trading tips. Because the trading will happen through the FX trading platform most of the time, ensure that it is stable and user-friendly. Most foreign brokers enrich their platforms with many features. Some are helpful and others are not. Check whether the platform provides enough technical indicators and charting tools because they are important when evaluating price actions. A good platform should also provide financial news in addition to a clean and uncluttered user-interface. And because you are likely to spend more time examining the charts, you have to be sure that the appearance of the platform is relaxing and pleasing.
Use the demo account to test the reliability of the server. If you encounter connection problems when executing a trade, the platform is not a good choice. Check the width of the spreads during a news release and market volatility. If misquoting and slippage is not a problem, it is the right platform. A good platform should be easier to customize so that it matches your needs and it should support many languages. Even more, an advanced trading platform that is uncomplicated and easier to use will make your trading work easier.
- The type of accounts
Most forex brokers offer many types of account packages. Some might provide only one package but with customization options. Generally, the number of packages is irrelevant if the margin requirements and the leverage are adjustable. The account you choose should match your needs whether you are an experienced or inexperienced trader.
- Currencies offered
One of the best things to do when selecting a forex trader is to go for one offering a wide range of tradable currencies. When evaluating the offered currency pairs, ensure that they are available in different classifications and avoid focusing on the total offers. A quick example, if a broker is offering three pairs from the major economic powers, three of pegged or fixed currencies and three of the emerging countries with floating currencies in addition to three rare pairs like the Chinese Yuan or Saudi Riyal, he is better than one offering twelve pairs from the major developed economies alone. This aspect is important for the experienced traders but if you are just a beginner, you can focus on the basic factors.
- Transaction costs
When choosing a good forex broker, the transaction costs should not miss in the list of the key factors. Regardless of the type of currencies, you would want to focus on, and whether the trading platform is appealing to you, you have to check the transaction costs before you open an account. Each time you initiate a trade, the broker will charge you a commission or a spread. To look for the most economical and affordable rates, check the platforms of various brokers. If you need consistency, you will have to avoid those charging very low transaction costs. Be precise on whether you need tight spreads before evaluating the available options. Finding a good balance between the low transaction costs and security is important.
- Deposits and withdrawals
If the broker does not allow easier withdraw of earnings, he is not the right one. A good forex broker has to facilitate the termination of an account if the trader is not satisfied with the offered services –regardless of the reason. The termination of accounts is non-negotiable because brokers are only custodians of funds and they should not justify any unreasonable excuses or delays during the withdrawal of funds. Furthermore, the depositing of money should be hassle-free. A broker who is unable to facilitate smooth deposits is unlikely to guarantee painless trading experiences.
- The customer services
Trading platforms are prone to errors and this is likely to continue. Whenever you encounter problems when executing trades on a platform, you will need the help of the customer support team. Some of the commonest problems relating to the withdrawal and deposit of funds into accounts and delays. A patient and friendly customer support team will be helpful. And if the customer service team is made up of people with forex trading experience and an understanding of analysis and economic trends, you can ask them questions to succeed in your career. Before opening an account, read reviews from other traders so that you can be sure that the customer service is competent.
Safety is good in the UK. So, when searching for a foreign exchange trader, you have to choose one with a solid reputation and not associated with fraudulent activities. Forums and social media platforms are a good source of information about the two things. A bonus system will be advantageous if you are a beginner but remember that some brokers might increase their ratings artificially by offering big bonuses at an expense of the other vital trading features.