Best UK Forex Brokers for 2020

Although we have listed our top five UK forex broker picks, no two brokers are the same. For example, while the brokers listed above should suit the vast majority of you, there might come a time when you have a specific niche requirement. As such, we would suggest reviewing the following metrics when choosing a new UK forex broker site.

• Licensing

Without a doubt, you need to ensure that your chosen UK forex broker holds at least one regulatory license – that of the FCA. This will ensure that the broker complies with all relevant UK laws, especially with respect to client fund segregation. This means that were the broker to collapse, your funds should be safe, as they are held with tier-one financial institutions.

• Forex Pairs

If you’ve got a specific forex pair that you like to trade, you’ll need to make sure that the broker lists it. Similarly, if you’re the type of investor that likes the trade multiple pairs, it’s probably best to stick with brokers that offer a highly extensive number of currencies.  

• Payment Methods

You’re going to be trading with real-world money, so it makes sense that you check to see what payment methods the broker supports. In the vast majority of cases, UK brokers will allow you to fund your account with an everyday debit or credit card. You might get the option of depositing funds with a UK bank account or e-wallet, too.

• Spreads and Commissions

When you use a UK forex broker you will likely pay fees on two main fronts. Firstly, you’ll need to explore the average spreads charged on your preferred forex pairs. This is the difference between the buy and sell price of a particular currency pair and it’s expressed in ‘pips. The higher the pip amount, the more expensive it is to trade.

You also need to explore what trading commissions the broker charges, as this is separate from the spread. You’ll likely pay a percentage of the amount you trade. For example, if the commission is 0.1% and the size of your trade is £10,000, you’ll pay a fee of £1.

• Trading Tools and Research

Successful forex traders will know first-hand the importance of charting tools. At the forefront of this is technical indicators, so check to see what the broker offers before signing up. You’ll also need some assistance in the form of fundamental research. At a minimum, this should include real-time news updates and trading ideas.

• Leverage

If you’ve got a slightly higher appetite for risk, then you might be looking to trade on leverage. Most, but not all, UK forex brokers allow you to buy and sell currencies on leverage. With that said, you’ll still need to abide by the limitations imposed by ESMA. 

• Account Minimums

Most UK forex brokers will impose a minimum account balance. This typically starts at £100, although it can be higher. Similarly, you should also check what the broker’s policy is on minimum withdrawals.

• Customer Support

Finally, you also need to explore what the broker’s customer support department is like. We prefer UK forex brokers that offer support on three fronts – live chat, telephone, and email. Moreover, it’s best to stick with brokers that offer customer support on a 24/7 basis.