There are plenty of reputable UK forex brokers, but there are a few that we wouldn’t recommend. Read on for our UK forex broker review and for how to check that they are fully regulated and trustworthy. You can also check out our table of recommended forex brokers in the UK.
The UK Forex Markets
The City of London in the UK has long been a major financial centre and home to various forex brokerage headquarters and other financial institutions. Companies providing financial products and services in the UK must be licensed and regulated by the Financial Conduct Authority (FCA), a strict and well-regarded regulatory body.
UK-based brokers generally have access to worldwide markets and provide trading in a wide range of currency pairs, often alongside other assets. CFD trading and spread betting are both legal in the UK, so a range of options is available to UK forex traders. The national currency of the UK is the pound (GBP), and factors that affect the pound’s price are similar to those that affect other major currencies, including political events, interest rates and the health of the UK economy.
It is fair to say that the GBP has faced challenging times due to Brexit and other political events in the UK. It is worth noting, however, that many UK forex brokers allow your account to be funded with a choice of base currencies, including USD and EUR.
Who Regulates Forex Trading in the UK?
Any financial firm headquartered in the UK must be licensed and regulated by the FCA (Financial Conduct Authority), which usually applies to firms that just have an office or a presence in the country. The FCA has a variety of powers, including the authority to oversee all activity linked to the marketing of various financial products. It can also place requirements on financial products and set minimum standards that all industry participants have to observe.
The FCA sets rules regarding what forex brokers can offer, such as the level of leverage, and can investigate organisations, companies, and individuals providing financial services in the UK. It can also instruct operators to cease all promotional activity concerning a particular product or product class and even ban a financial product, temporarily or permanently.
The FCA has not been without controversy and has been criticised in the past by various branches of the UK’s financial industry, mainly due to a lack of concern and inadequate response to various scandals. Overall, however, it is considered a reliable and trustworthy body.
UK regulations concerning forex brokers mean that a broker’s activities will be monitored, and non-compliance with local and international rules and regulations will be sanctioned. You can ensure that a UK forex broker is legitimate by checking that it is listed as a licensed brokerage on the FCA website. Complaints and issues with UK forex brokers can be reported to the FCA.
The Best Forex Brokers in the UK
If you are looking for a UK forex broker, here are some of our recommendations of the best forex brokers in the UK.
|Broker||Features||Min Deposit||EURUSD Spread|
|74% of clients lose money. Capital at risk. US Clients: Yes Regulated : Yes||
||$100||from 0.1 Pips||
Sign Up 74% of clients lose money. Capital at risk.
|Your capital is at risk US Clients: Yes Regulated : No||
– Trade 15 cryptocurrencies