April 29, 2024

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Best Forex Brokers UK | Top 10 Online Forex Brokers in 2021

21 min read
3 years ago Talia Koe

If you are interested in forex trading and want to make a career out of it, the first thing you need to do is look for a reputable and reliable broker. The broker must be an ideal match for your trading goals and approach. Not only your fund’s security but also your success rate in trading depends on your broker to a great extent. So, it is crucial to carefully choose one among the many available in the forex market.

Take a look at the best forex brokers of 2021 below.

Leading UK Forex Brokers

What is a Forex Broker?

In the foreign exchange market or vastly known as the forex market, the transactions primarily conduct between a pair of two independent currencies. In the course of buying and selling cryptocurrencies, a forex broker is typically a financial service company that acts as an intermediary between the trader and the interbank system. While making a transaction between a pair of currencies that are generally made of the ten most traded and liquid currencies including USD, EUR, AUD, and others, traders can initiate and execute a trade using a forex broker and earn profit depending on the current exchange rate.

How Do Forex Brokers Work?

The forex broker typically works as an intermediary between you and the interbank system, which is a network of banks that trade with each other daily. The broker will typically offer you a price from the banks and financial institutions through which they have access to forex liquidity.

When you start trading with a forex broker and open your first trade, the broker will pass it through the market. They offer you a price for that particular forex pair, typically shown in quote form such as GBP/USD 1.3500/1.3505. Here, the first number is the rate the broker offers you if you want to sell the pair. The second number shows the rate at which you can buy the pair. The difference between the numbers i.e., .0005 or 5 pips is taken as a commission by the broker and is known as the spread.

A broker will typically provide you with a trading platform, which is a software program that can either be downloaded or used via a browser on the web. This is the main platform where you buy and sell currencies, monitor trades, conduct technical analysis, and all related functions of trading. Once the broker executes your order, it can either be a winning or a losing trade, leading to a profit or loss for your trading account.

Best UK Forex Brokers – Top 10 Reviewed

1. eToro – Best of the Best Forex Brokers

eToro

Founded in 2007, eToro is one of the leading forex brokers worldwide. The broker offers copy trading across more than 2000 assets, including forex, cryptocurrencies, CFDs, and securities. Users can either trade on its webs platform or mobile app. The easy user interface makes it a great option for beginners.

On this visual forex trading platform, traders can understand trading easily with graphic representations for different assets. eToro also offers social trading and copy trading with its innovative OpenBook and CopyTrader features. Both novice and professional traders can use the professional tools provided on eToro WebTrader.

eToro is considered a safe broker for traders and investors due to its regulations under one tier-2 and two tier-1 jurisdictions. The broker is authorized by strict financial bodies like CySEC, FCA, and ASIC.

Pros Cons
Forex trading starts from low spreads like 1 pip for EURUSD and USDJPY on this platform. Poor customer support
eToro offers almost unlimited liquidity to its users along with access to flexible leverage trading where they can apply up to 1:30 leverage. Only one base currency for accounting purposes
Clients can have a diversified portfolio with more than 40 currency pairs. High non-trading fees
The broker offers free stock and ETF trading with zero commissions for US stock trading.
The broker offers a demo account with $100,000 virtual cash for users to experience risk-free trading.
Clients are provided with the unique CopyTrader feature to follow the strategies of advanced traders and copy them automatically.
The platform offers the innovative ProCharts tool for conducting professional market analysis.

 

67% of all retail investor accounts lose money when trading CFDs with this provider.

2. AvaTrade – Top Forex Brokers UK with 0% Commission

Avatrade

AvaTrade is a renowned forex broker which is best known for offering a wide collection of trading options. Established in 2006, the broker offers top-notch platforms like AvaSocial, AvaOptions, and AvaTrade WebTrader along with the legendary MetaTrader platform. For social trading and copy trading, traders are provided with ZuluTrade and DubliTrade.

AvaTrade is licensed and regulated by top-tier financial bodies like FSA, ASIC, JFSA, MiFID, Central Bank of Ireland, and IIROC. Based in Ireland, the broker operates in several countries including Australia, Israel, Japan, the British Virgin Islands, South Africa, and Abu Dhabi. It offers 55 forex currency pairs along with options, 14 cryptocurrencies, and CFDs on commodities, stocks, and shares.

Fees and commissions on this platform are around the industry average. Forex trading is available from 0.9 pips on the EURUSD currency pair. However, professional traders, you can trade the pair for 0.6 pips. The platform offers easy deposit options, including Credit cards, bank wire, and e-payment options.

Pros Cons
AvaTrade constantly develops educational materials like strategies eBooks and video tutorials and offers live webinars along with frequent market analysis. Average fees for trading forex
AvaTrade assists beginners with a step-by-step forex trading guide where they can learn about automated trading and more. High inactivity fees
Traders can trade forex, equities, commodities, and equities from anywhere and anytime using the AvaTradeGo app.
The platform offers great trading conditions by allowing hedging, netting, scalping, and short selling.
The trades can be executed on the platform fast with very low spreads.
The strict regulations imposed on the broker enhance the security of clients’ funds.

 

67% of all retail investor accounts lose money when trading CFDs with this provider.

3. CMC Markets – Forex Brokers UK with Leading CFD

CMC Markets

Established in 1989, CMC Markets is a leading CFD and forex broker regulated by many top-tier financial bodies like FCA. The broker also maintains segregated accounts to keep the funds of its clients protected, which makes it one of the safest places to start trading. The funds are held in segregated bank accounts with a Canadian bank.

The broker is well-known for offering low-cost trading with spreads lower than the industry average. Financial instruments provided on the broker apart from forex pairs are indices, commodities, shares, ETFs, CFDs, and treasuries. You can apply leverage to forex trading on CMC Markets, with leverage up to 1:30. The platform also offers copy trading which is very useful for beginners.

CMC Markets is user-friendly with its native apps and proprietary platform. The award-winning trading platform offers customized training for both beginners and advanced traders by developing educational material including weekly economic outlooks, events and webinars, guide of trading strategies, and platform guides. You may start with its risk-free demo account to test the platform.

Pros Cons
CMC Markets offers different packages for new traders and experienced traders to suit each trading goal and style. High fees for stock CFD trading
The platform offers fast execution of trades at reasonable spreads for forex, and it does not charge a withdrawal fee.
Traders are provided with sophisticated trading tools like client sentiment analysis, pattern recognition scanner, multiple layouts, and module linking along with charting tools.
CMC Markets offers spread betting profits to its clients without making them pay tax for it.
The platform does not require a minimum deposit to start trading, which makes it an ideal option for new traders.
The strict regulations imposed on the broker enhance the security of clients’ funds.

 

Or go to CMC Market>

67% of all retail investor accounts lose money when trading CFDs with this provider.

4. XTB

XTB

Headquartered in London and Warsaw, XTB is a universally known forex broker established in 2002. The broker is licensed and authorized by many regulatory bodies like FCA. It is preferred as a safe platform by many traders worldwide because of its impressive record of trade execution. As of now, the broker has more than 317,000 users across the world.

On XTB’s trading platform xStation 5, users can trade more than 4000 instruments including CFDs for forex, stocks, Indies, cryptocurrencies, and commodities from across the world. With the professional analytical tools on the mobile version, traders can execute and monitor trade from anywhere. As a result, investments can be managed easier and quicker. The web version is compatible with top browsers like Firefox, Opera, Chrome, and Safari.

The broker also pays attention to risk management. It allows traders to assess costs, as well as profits and losses before they open a trading position. The tool used to conduct this estimation is the built-in trading calculator. Traders can also use the chart to directly modify TP and SL levels and close all open positions with just a click.

Pros Cons
XTB offers an easy-to-use and innovative xStation 5 trading platform that can be fully customized according to the trader’s requirements. High stock CFDs fees
The broker offers high execution speed for forex trading. Limited fundamental data
Traders are provided with advanced trading tools like sentiment, performance stats, charts, market order depth, and trader’s calculator.
The broker is safe and secure with top-tier regulation, stock exchange listing, and transparent financial statements.
The broker offers easy payment options and does not charge any deposit or withdrawal fee.

 

Or go to XTB>

67% of all retail investor accounts lose money when trading CFDs with this provider.

5. IG

IG

Established in 1974, IG is a renowned UK-based forex broker that supports more than 80 currency pairs at present and is considered to be one of the most profitable CFD brokers worldwide. IG Group is regulated by several top-tier regulators including JFSA, FCA, and others, and is also listed on the London Stock Exchange. With a trust score of 99, IG offers a seamless interface on both desktop and mobile platforms, making it easier to navigate for novice traders apart from providing a low-risk trading facility.

By providing a native tablet interface available on android and iOS platforms, traders can avail benefits of opening a trade account within minutes to set up automatic profit-taking and stop-loss orders and many other features with IG. Account-holders can also access several educational resources including IG Academy, native newsfeed, and live webinars to gain more insights on forex trading.

IG’s dedicated mobile app provides facilities that mirror the desktop version along with providing interesting features such as personalized watchlists, dedicated features for tablet users as well as real-time alerts that help you to execute a trade on the go. Similar to most forex brokers, IG also prefers the spread pricing model rather than a flat-rate commission. The term ‘spread’ refers to the difference between the asking price and bid price and may vary on the volatility of the market conditions as well as on the base currency.

Pros Cons
Complete functionality of the desktop version can be accessed through tablet and mobile platforms. Lack of excellent customer support service
Supports more than 80 currency pairs. U.S. traders are currently limited to access only forex trading
Novice traders can take advantage of the user-friendly interface 2FA on the mobile platform is not available at present
Affordable and easy-to-understand margin rates
Offers useful educational resources and tools

 

Or go to IG>

67% of all retail investor accounts lose money when trading CFDs with this provider.

6. Interactive Brokers

Interactive Brokers- Best Institutional Grade Trading Platform in U.S 2021

Interactive brokers is a professional forex and CFD trader’s first choice as a dependable trading platform that has been operational for several years. This multi-asset broker provides its clients with a definitive platform that has sophisticated tools, institutional-grade security of funds, and a competitive fee structure that is hard to find in the industry. Interactive Brokers is available as a desktop platform and also as a mobile application.

The company was founded in 1977 and is now known as a reputed, publicly-listed company. This broker has secured more than enough top-tier licenses for operation from renowned regulatory bodies. Legal compliance makes Interactive Brokers a safe broker to be used for advanced forex trading. The trading platform offers users based in 33 countries to choose from a comprehensive list of 125 global financial markets such as currencies, stocks, options, and futures.

Interactive Broker is a great place to start forex trading for those who have a bit of experience in how the foreign exchange market works. The platform’s a little too complicated for beginner forex traders to understand and utilize for their benefit despite dynamic price fluctuations. This broker supports advanced orders, desktop charts, and a professional forex layout on its main terminal to break down the complexity of trading one’s favorite forex pairs.

Pros Cons
Investment selection for traders using the Interactive Broker platform is considerably huge and versatile. The website confuses many new clients as it is not easy to navigate.
This refined forex broker comes with some of the best research and trading tools that help both new and seasoned players in the field of forex trading. The pro account comes with an inactivity fee.
It is a great match for advanced as well as casual traders looking for a worthy broker to invest in forex.
Its best-in-class margin account and options trading without any fees are the industry’s favorite features.
Interactive Brokers accepts international investors on its compliant trading platform with zero account minimum.

 

Or go to Interactive Brokers>

67% of all retail investor accounts lose money when trading CFDs with this provider.

7. FXCM

FXCM

FXCM is a popular online brokerage services provider under the management of Leucadia Company that originated in the year 1999. It is a low-risk broker for forex and also CFDs that has been properly regulated by at least 3 different regulatory jurisdictions over the years. Its platforms, mobile trading app, and advanced tools make it one of the best forex brokers out there.

FXCM provides its clients easy access to exchange-traded funds which makes up for the broker’s limited CFD selection. Its trading platform is diverse and has something for every single type of forex broker. It uses segregated accounts to keep investors’ funds safe from any unforeseen financial predicament. In terms of commissions implemented on the FXCM trading platform, it would seem a bit higher than many of its alternatives.

But this broker has the support of millions of active forex and CFD traders that make it an industry favorite. FXCM’s parent company is also a publicly traded company that adds to its trust score making it a safe, authorized, and easy-to-use forex broker for beginner traders who are looking for a place to improve their trading skills without risking real money.

Pros Cons
The account opening procedure is pretty fast and easy to follow thanks to the clearly stated instructions and guidelines. The portfolio offered to traders through FXCM lacks many tradable assets.
Technical research tools that FXCM offers are highly advanced and user-friendly which is a rare combination in the case of forex brokers. Withdrawal fees are extraordinarily huge if one chooses a bank option.
To help clients who are new to the whole forex markets, this broker maintains a comprehensive educational content section with detailed information regarding terminology, strategies, and tools used in forex trading frequently. The trading platform lacks 2FA authentication.
Forex scalping is allowed on FXCM due to its No Dealing Desk execution type.

 

Or go to FXCM>

67% of all retail investor accounts lose money when trading CFDs with this provider.

8. Pepperstone

Pepperstone equities available

Shortly after its origin that took place in the year 2010, Pepperstone has been known as one of the top forex brokers available online. It is a regulated and low-risk trading platform that mainly offers its clients a safe way to trade with forex and some CFDs using MetaTrader as well as cTrader.

For those who are looking for an advanced experience, Pepperstone has a premium platform and associated add-ons to improve the trading experience on MetaTrader. Research tools available on this broker’s website are a lot better than many of its peers but average in comparison with IG.

A wide selection of third-party platforms makes Pepperstone an easy to manage and welcoming broker for new and inexperienced traders. Such forex enthusiasts do not have many options to choose from when it comes to finding a trustworthy broker. Pepperstone is regulated by ASIC, FCA, and CySEC which makes it a great place to start forex trading without worrying about being cheated out of your money.

Pros Cons
This broker constantly upgrades its trading platform with up-to-date and enhanced trading conditions for better liquidity and tight spreads. Does not guarantee negative balance protection, hence this broker is not suitable for beginner traders.
Trading cost is minimal on Pepperstone and order execution is as fast as forex traders prefer.
It has dedicated customer support to help clients with their trading or platform-related issues.
As one of the leading retail forex brokers, Pepperstone has a clear and impressive track record.
Average daily trading volume on Pepperstone recently rose to $5.8 billion which is a feat on its own.

 

Or go to Pepperstone>

67% of all retail investor accounts lose money when trading CFDs with this provider.

9. Saxo Bank

Saxo Bank

Founded in 1992, Saxo Bank is a reputed multi-asset broker that offers you access to over 40,000 tradable symbols via an electronically tradable market. The broker also offers forex options, sport FX instruments, non, deliverable forwards, CFDs, stocks, ETFs, and bonds. Headquartered in Copenhagen, Denmark, it has caved up a reputation as being one of Europe’s leading retail brokerage innovators.

Saxo Bank’s diverse product portfolio is made up of forex, bonds, equities, ETFs, mutual funds, Options, Futures, CFDs, and cryptocurrencies. Their trading platform called “SaxoTrader” is compatible with a host of different devices and operating systems including iOS, Windows, and Android. The broker provides four main types of accounts: Classic, Platinum, Premium, and VIP, all of which differ in funding requirements. The classic account is for entry-level traders who can deposit a minimum of $10,000 to begin trading. To protect trader’s accounts from unnecessary losses, the broker offers an Account Value Shield feature. This allows you to specify the maximum risk you will be comfortable with across your account balance.

Saxo Bank is regulated globally by more than 10 international financial regulators. This includes Financial Conduct Authority(UK), the Italian Market Authority, Danish Financial Supervisory Authority, Japanese, Financial Services Agency, and the Australian Securities and Investments Commission (ASIC), just to name a few.

Pros Cons
Saxo Bank’s intuitive trading platform is complemented by the broker’s research team which constantly feeds the traders with ideas. The minimum deposit of using MT4 with Saxo Bank is high at $20,000.
The broker’s product portfolio is massive, allowing for ample opportunity to diversify one’s portfolio. The broker’s fees for trading bonds, options, and futures are pretty high.
Saxo Bank does not charge its users with a withdrawal fee and has kept trading fees for forex and funds. Saxo Bank lacks a live chat service on a 24/7 basis, making it difficult for clients to reach the broker when they have queries.
The broker provides 26 base currencies for you to choose from including USD, GBP, AUD, CAD, CHF, DKK, RUB, SEK, PLN, and SGD.
Saxo Bank provides enough educational resources and tutorials for novice traders to get started.

 

Or go to Saxo Bank>

67% of all retail investor accounts lose money when trading CFDs with this provider.

10. FP Markets

FP Markets

FP Markets is a MetaTrader 4 broker which has been established back in 2005. Over time the broker has won over 40 accolades for being one of the most reliable ECN brokers operating globally. It primarily offers forex and CFD trading via MetaTrader 4 and its proprietary offering the Iress suite.

Some of the other value-added services that FP Markets provide consist of MT4 PAMM/MAM modules, copy trading, and VPS hosting. The broker is regulated by the Australian Securities and Investments Commission (ASIC) and CySEC. They take great care in keeping client funds segregated from corporate funds. They use an NDD execution model, which provides their clients with conflict-free trade execution.

Pros Cons
The broker delivers very reasonable commission-based trading, providing raw spreads of 0.0 pips and a commission of $6.00 per round lot. FP Markets does not accept US clients
FP Markets provides multilingual customer support on a 24/7 basis via live chat, phone, call-backs, and a quality FAQ section. You will not find any fixed spread accounts.
The broker provides 18 primary funding methods including credit/debit cards, bank wire transfer, and cryptocurrencies.

 

Or go to Fpmarket>

67% of all retail investor accounts lose money when trading CFDs with this provider.

What is a Forex Broker?

In the foreign exchange market or vastly known as the forex market, the transactions primarily conduct between a pair of two independent currencies. In the course of buying and selling cryptocurrencies, a forex broker is typically a financial service company that acts as an intermediary between the trader and the interbank system. While making a transaction between a pair of currencies that are generally made of the ten most traded and liquid currencies including USD, EUR, AUD, and others, traders can initiate and execute a trade using a forex broker and earn profit depending on the current exchange rate.

How Do Forex Brokers Work?

The forex broker typically works as an intermediary between you and the interbank system, which is a network of banks that trade with each other daily. The broker will typically offer you a price from the banks and financial institutions through which they have access to forex liquidity.

When you start trading with a forex broker and open your first trade, the broker will pass it through the market. They offer you a price for that particular forex pair, typically shown in quote form such as GBP/USD 1.3500/1.3505. Here, the first number is the rate the broker offers you if you want to sell the pair. The second number shows the rate at which you can buy the pair. The difference between the numbers i.e., .0005 or 5 pips is taken as a commission by the broker and is known as the spread.

A broker will typically provide you with a trading platform, which is a software program that can either be downloaded or used via a browser on the web. This is the main platform where you buy and sell currencies, monitor trades, conduct technical analysis, and all related functions of trading. Once the broker executes your order, it can either be a winning or a losing trade, leading to a profit or loss for your trading account.

Knowing Which UK Forex Brokers Are The Best

With a myriad of choices available when it comes to forex brokers, you can easily get confused and end up making a bad choice. This is why you should always ensure that the forex broker you choose meets certain standards of functionality and convenience.

Some of the best forex brokers have the following features.

  • The broker should provide convenient deposits and withdrawals without charging outlandish fees.
  • It should carry out appropriate background research on all the traders under its network to ensure they remain compliant with existing anti-money laundering laws.
  • Online brokers should provide trading conditions that are similar to what traders would find in the real market.
  • Make sure that the broker you choose provides adequate leverage and margin trading features.
  • Expert and advanced traders should always go for brokers which offer a host of analytical tools
  • The broker should provide a responsive customer service team that can be reached via more than one medium.
  • To help novice traders get a grip on the market, responsible brokers also provide a wealth of educational resources on various trading topics.
  • The broker should be regulated by a major international regulatory body.

Do’s and Don’t’s

Picking the right forex broker will certainly nudge you in the right direction. However, success in the forex market also depends on your actions. You should thus know what to do and what not to do to minimise losses and maximise profits.

Do:

Develop a concrete plan: You should always try to develop a concrete plan before you dive into the market. Evaluate your goals and objectives before you cast your first trade. Entering the market without a plan can have disastrous consequences, especially if one trades impulsively.

Always use stop loss and take profit: It’s always important to sit down and evaluate the amount of profit that you feel is realistically achievable. This extends to the use of stop-loss and take-profit levels. Failure to choose fixed levels for closing your trading position will result in closing trades based on emotion.

Researching the market: Staying on top of the factors that affect the forex market. This can extend to international politics, news regarding financial regulations, and other factors such as wars and natural disasters. Typically you would want to get real-time information on factors that affect the currency pair you’re trading, such as the country’s inflation rates and other economic markers.

Don’t:

Don’t commit money you can’t afford to lose: There is a fine line between trading cautiously and outright gambling. So you should always stay within the budget parameters set. It is very easy to get carried away and end up investing more money than you originally planned in forex trading.

Don’t commit revenge trading: Revenge trading is when you try to make up for losses incurred earlier in the day by impulsively executing trades. Do not fall for this trap as you will end up trading using raw emotion rather than trading rules, leading to more losses. You should rather use take-profit levels to lock your gains once you reach your profit target levels. This will alleviate the temptation for further gains.

Don’t let emotions take over: Human emotions such as greed and fear can lead to impractical trading decisions where you will end up incurring a loss. For instance, fear can lead to traders closing their positions early missing out on profits. Always remember that you should stick to your set plan and exit the market once your target profit level for the day has been achieved.

How to Begin Trading With Forex Brokers – eToro Guide

Once you have made up your mind about which forex broker to use for trading your preferred forex pairs then all that is left to do is start trading. People with some experience might not get stuck at this point but those individuals who have never tried opening an account with a high-quality forex broker would find it complex.

The following step-by-guide is supposed to help the latter by explaining the procedure of getting started with the best forex broker.

Step 1: Visit eToro

Open an Online Trading Account

After you have decided which forex broker to proceed with, the first thing to do is visit their official website and get accustomed to it. There you will find a lot of important information regarding their trading platform, its features, its offerings, and most importantly where to join. Simply click on the “open an account” or “register” to start.

Signup at eToro here to Trade Forex with 0% commission >