Best Forex Brokers in the UK for 2023

Trading forex (Foreign Exchange or FX) in the United Kingdom (UK) using brokerage firms (aka forex brokers) is a common and regulated activity.

The primary regulator for Forex trading in the UK is the Financial Conduct Authority (FCA). The FCA was established in 2012 as an independent body responsible for overseeing the financial markets and ensuring compliance with regulations in the UK. The FCA has a reputation as one of the world’s most reputable regulatory bodies, providing robust protections for traders.

Forex brokerages and trading platforms in the UK must comply with various regulations set by the FCA. These include capital adequacy, segregated accounts, fair practice, and risk management.

Forex trading in the UK is typically unrestricted, with traders able to engage in trading activity 24 hours a day, five days a week. However, limitations exist in terms of the leverage offered by brokers. The FCA imposes a limit of 30:1 leverage for retail clients trading major currency pairs, and lower for minor pairs, exotic pairs, and cryptocurrencies, and usually 400:1 for professional clients (depending on the broker’s offer).

Forex trading is taxable in the UK under the Capital Gains Tax. Traders are taxed at 10% on amounts up to £50,000 and at 20% on amounts over £50,000. However, any earnings below £12,500 are tax-free. Importantly, spread betting, which is a form of trading that many Forex traders engage in, is typically tax-free in the UK.

To create this UK forex brokers list, we have taken into consideration the following factors which can highlight why these forex trading platforms and brokers in the UK are among the best:

• If the broker is allowed to operate in the UK
• The Minimum Deposit requested
• The number of tradable assets
• The Spreads charged on Forex
• The Leverage for UK retail and professional clients
• If Spread Betting is available

Overview of the Best UK Forex Brokers in 2023

What are the best UK forex brokers?

Is Forex Trading legal in the UK?

All forex trading is legal in the UK under the FCA (Financial Conduct Authority) regulations.

They are an independent body, established in 2012 to oversee the financial markets and compliance in the UK. In this more specific case, the FCA is responsible for overseeing the work of all the forex trading company names in the industry.

They have quickly grown into one of the most reputable regulatory bodies in the world providing the very best protection for you as a forex trader.

How to trade forex in the UK

Trading forex in the UK is in fact not much different from getting started as a forex trader in many other parts of the world.

Typically, all top forex brokers will required the following from you in order to get started:

• Proof of ID – Your passport is usually best for this one.
• Proof of Residence – A bank statement or utility bill dated within 3 months is usually fine for this purpose.

Once you have provided these documents to your UK broker, your account will typically be verified very quickly and often through automated systems. If there is any discrepancy then it may take the broker an additional day or two to complete the process, but then you will be ready to trade.

British trader? Here’s What British traders should look for in a UK forex broker

There are a few important key points to note if you are a British trader and planning to choose an FCA regulated broker regarding what is permitted and what’s not in terms of the regulations.

The FCA are well-known as one of the more stringent in terms of the rules they apply, though this is ultimately for your benefit and protection.

With those points in mind, here are three key things you should be mindful of when choosing an online broker:

1. Look for UK regulated forex brokers

Regulation is vital.

When choosing a UK forex broker or forex platform, you should really be looking no further than choosing an FCA regulated broker as your first choice, since they are the most respected regulatory body in the region who will offer you the most protection as a trader.

2. Minimum trade size is important

When trading forex you should always have a look at the minimum trade size associated with your broker. In many cases, with a leverage of 30:1, you would need a minimum of £33 in order to open a position trading on a micro lot. In that case, you should aim to deposit more in order to have the best trading experience.

With that said, there are usually online brokers who offer trading with a deposit as low as £10. So, take into account your intended deposit and find a broker that matches this need.

3. Are you into Betting and Trading? Try Spread Betting

Remembering that spread betting is legal in the UK and Ireland, if you are interested in trying this, then you should choose a broker that makes it available with a user-friendly trading platform. It is tax-free but known as being quite a risky trading strategy. If it interests you though, you should certainly check our listing of the best spread betting forex brokers to choose one.

4. If You’re Just Starting Out, opt for a Broker with Low Minimum Deposit

If you’re new to forex trading, we’d recommend going for a broker with a low initial deposit requirement. This way, you can learn the ropes without putting too much on the line. And once you’re feeling more confident, you can always deposit more.

Also, make sure you pick a forex broker with a rich selection of educational materials like tutorials, articles, and guidelines. Having a personal Forex library at your fingertips can be really useful. And don’t forget to check if the broker offers a demo account. It’s a fantastic way to practice your trades without any real-money risk involved.

How to verify if a forex broker is regulated in the UK

Of course, when you choose a regulated broker, you should take a moment to verify that regulation for yourself. This can be easily done for most UK forex brokers by visiting the FCA official website.

Once you are there you can look for the FCA register and look for the company name of the broker (which often differs from the broker’s name). This company name can usually be found at the bottom of your broker homepage.

Is forex trading taxable in the UK?

Yes, forex trading is taxable in the UK.

With that said, there are a number of categories. If your earnings fall below £12,500 then you will not have to pay any taxes. From there though, a capital gains tax of 10% on amounts up to £50,000, and 20% on amounts over £50,000 applies.

We are not professional tax advisors, thus we strongly suggest you contact the local authorities if you don’t know how to manage this aspect.

Key Takeaways: The Best Forex Brokers, UK

Let’s recap by talking about the key takeaways when it comes to choosing the best UK Forex broker. Remember, it’s essential to pick a broker that suits your personal preferences and trading goals.

First up, always go for a broker regulated by the FCA. This way, you know you’re dealing with a reliable and secure Forex platform.

Next, think about the minimum deposit and trade size – these factors can make a huge difference in your trading experience. If spread betting is your thing, or you’re just starting in Forex, find a broker that offers these options and has plenty of educational resources and a demo account.