Forex Brokers are intermediary who buy and sell assets for a commission. Our professional team of successful forex traders in the United Kingdom has put together a list of the best Forex Brokers in UK. When it comes to Forex trading, you use a forex broker, to place your trades. You open an account through a broker’s online trading platform and you will be able to buy and sell currency using margin. The purpose of this article is to educate UK residents what a Forex broker is, how to find the best Forex brokers UK, Forex brokers with high leverage and best brokers for forex trading.
What is A Forex Broker?
Forex brokers, also known as retail brokers, or currency trading brokers, are forex trading companies that offer Forex traders with access to a platform that enables them to buy and sell foreign currencies. Transactions in the foreign exchange market are continuously between a pair of two different currencies also called “currency pair”, so that traders can be able to buy or sell the currency pair they wish to trade.
Best Forex Brokers UK for 2020
Foreign exchange, also known as Forex or Forex Trading, is the largest market in the world with more than $5.3 trillion US dollars daily volume traded. There are forex brokers best for offering low fees. But who are these brokers online? The below is a list of the best Forex Brokers geared for retail traders trading for themselves, especially beginner Forex traders. Here are some of Best UK Forex Brokers for 2020:
- XTB – Best Broker for Currency Pairs
- CMC Markets – Best Broker with Deposit Bonus
- IG – Best for Beginners
- FXTM –Best Forex Broker UK
- com – One of the best Forex brokers ranking well
- FXCM – One of the Forex brokers Minimum Deposit
- City Index – One of the best Forex broker in London
- Vantage FX – Best Broker for Beginners
- Skilling – Top Online Broker
- Tickmill – Top Forex Broker Online
- eToro – Most Popular Forex Broker in the World
The Best Forex Brokers for Beginners
Here’s a list of the best forex brokers for beginner forex traders. This forex brokers list will help you know the best Forex companies for newbies.
- AvaTrade – Best Broker for Beginners
- com – One of the Best Online Brokers for Beginners
- eToro – One of Forex Brokers best for Beginners
- Saxo Bank – Best UK Forex Broker
- easyMarkets – Top Forex Broker in UK
- Admiral Markets – Best Forex Trading Broker for Beginners
- City Index – Best Forex Beginners’ Broker
Types of Forex Brokers
There are two types of Forex brokers. We have Direct Market Access (DMA) brokers and Market Maker brokers. Each Forex broker category is divided into two subcategories. DMA brokers are split into subcategories called ECN and ECN/STP. Market Maker Brokers can have a dealing desk where the broker can modify trades before they are executed.
Trading Conditions
- Spreads – A spread in Forex is the difference between the buy and sell prices quoted for an asset.
- Leverage – Leverage in Forex trading refers to a ‘loan’ that the Forex broker offers the trader so that the trader has more capital to trade with than what they initially deposited
- Trading Assets – Best Forex brokers in the United Kingdom offer different assets to trade, including equities, commodities, Forex CFDs, cryptocurrencies, precious metals and bonds.
- Scalping – Is the act of moving in and out of foreign exchange trades frequently throughout the trading day.
- Hedging – Hedging with forex is a strategy used to protect a trader’s position in a currency pair from an unfavourable move.
How To Find The Best Forex Broker
Forex brokers in UK should be measured by account options, regulation, trading conditions and trading platform choice. While some traders prefer forex brokers with bonus, some are looking for forex brokers with low spreads.
Regulation
Regulators make sure that online forex brokers have a fair trading environment and prevent money laundering just to name a few. While there are many Forex brokers in the UK regulated by more than one regulator, in the United Kingdom, brokers are regulated by the Financial Conduct Authority (FCA).
Account Types
Each brokerage in the UK comes with different types of accounts. We have demo accounts, live accounts and swap-free accounts.
- Demo Accounts – Also known as Practice accounts, they allow forex traders to practice trading with fake or virtual money. A forex brokers demo account will help you learn the ins and outs of trading online.
- Live Accounts – These accounts allow traders to trade with real money.
- Swap-Free (Islamic) Accounts – Islamic accounts also known as swap free accounts, are accounts for forex brokers who cannot earn or pay interest due to their religious beliefs.
- Managed Accounts – These are accounts that are owned by one investor but are supervised by a professional account manager who has been hired by investors.
Platform Choice
Some good Forex brokers UK also provide trading platforms. So before you choose an online broker, make sure you check the trading platforms offered by the broker. Many forex brokers list trading platforms on their website. Popular trading platforms include MetaTrader 4, MetaTrader 5, WebTrader and ZuluTrade.
Forex Brokers FAQs
These are frequently asked questions about Forex brokers in UK.
Question: What is the best Forex broker in UK?
Answer: The best Forex traders in UK are AvaTrade, CM Trading, FXTM and IG. Some of these forex brokers regulated in the UK offer lowest spreads.
Question: Which is the best Forex broker for beginners?
Answer: Markets.com, City Index and eToro are the best Forex brokers for beginners in the United Kingdom.
Question: How do I know I can trust a broker?
Answer: Make sure you check who regulates the broker in your country. In the UK, FCA regulates the brokers operating in the UK. Also do forex brokers comparison and read forex brokers reviews on the forums and online.
Question: How do Forex brokers make money?
Answer: The main source of income for Forex brokers are broker fees. Brokers also make money by getting a commission for helping traders buy and sell investment tools such as stocks, bonds and mutual funds. Some make money by keeping the spread or charging a set fee per round turn.