Top 10 Best UK Regulated Forex Brokers 2020

Filippo Last Updated: October 2020 13 min read
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Regulated forex brokers in the UK can be beneficial for a variety of reasons. Not only have many of the top forex brokers been in the business for a very long time, but the majority are also regulated by the prestigious Financial Conduct Authority (FCA), one of the world’s most reputable regulators.

This instills a great deal of trust and professional experience. In this article, we are going to show you the best forex brokers that are UK regulated.

However, before we start it should be mentioned that not all UK regulated forex brokers deliver the same top-notch service. In fact, some go the extra mile offering unbeatable customer service, access to a wide range of markets, and user-friendly technology.

Don’t just give in to the first forex brokers that are UK regulated, because there are plenty to choose from.

Additionally, it should be mentioned that not all FCA UK regulated forex brokers are based there. A number are based offshore but have plenty of business there and/or want to be recognized by organizations like the FCA.

Table of contents

Is Forex Trading legal in the UK?

The simple answer to this question is a resounding yes. 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 sector and compliance in the UK. They have quickly grown into one of the most reputed 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 – Passport is usually best for this one.
  • Proof of Residence – A bank statement of 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.

Top 10 Forex Brokers UK Listing for 2020

Here’s our list of the best British forex brokers.

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76% of retail CFD accounts lose money

1. IG Markets

One of the most established companies operating since 1974, IG Markets has amassed a lifetime of experience in trading. They are even recognized as one of the longest established CFD providers in UK. As of 2018, they boast a mighty number of 195,000 clients worldwide and access to over 16,000 markets. The broker are very well-regulated by the FCA (#195355) and provide a great selection of forex pairs, over 90 within their asset offering.

Trading with IG Markets, beyond a trusted, and long standing reputation in the sector, you can get started with a reasonable minimum deposit at just £250 for traders based in the UK. Once you are trading you will also find a great value spread starting at just 0.6pips perfect for all types of trader. If you are into spread betting then this too is available to users within the UK at excellent rates.

80
Rated: Excellent
security 98
cost 50
trading 72
education 100

Platforms: Proprietary Web Platform, MAC Platforms Regulations: FSA, MAS, FINMA, FCA, CFTC, MIFID-ESMA, ASIC, FMA, FSCA, DFSA Minimum Deposit:
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79.3% of retail investor accounts lose money

2. Pepperstone

Based in both the UK and Australia Pepperstone has won numerous awards since its formation in 2010. One of these prestigious awards includes first place for Risk Management in Australia in 2017. They are FCA regulated (#684312) and In terms of security, Pepperstone boasts its segregated funds system which means traders funds aren’t automatically mixed in with other traders funds in some big pile of money. Instead, funds are deposited into segregated client accounts with Barclays, one of the UK’s biggest banks.

With the broker you can access a wide range of social trading features where you can really benefit from the trades and knowledge of other platform users as well as trade for yourself through the Standard or ECN Razor account types. Pepperstone also stays very accessible with a minimum deposit starting at just £200 and a really fantastic spread from 0 pips and a rewarding active trader program.

80
Rated: Excellent
security 96
cost 72
trading 69
education 82

Platforms: cTrader desktop, cTrader web, ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms Regulations: FCA, ASIC, DFSA, Offshore Minimum Deposit:
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79% of retail investor accounts lose money

3. AvaTrade

AvaTrade is not FCA regulated, however, it is regulated in Ireland by the Central Bank of Ireland and by the FSC, the regulatory body of the British Virgin Islands. They are also regulated in Australia, Japan, and South Africa, and adhere to the Markets in Financial Instruments Directive, which provides traders with a good thick layer of protection. Additionally, AvaTrade are the official partners of Manchester City FC, one of the UK’s biggest football teams.

In all, they are a very well-trusted Irish broker and many are attracted by the fact that accounts can be opened from just $100 with a great spread betting account also available. They are also one of the few to provide fixed spreads to traders. These start from an excellent 0.9 pips across a wide range of assets available. These assets, including those available for spread betting in particular, number into the hundreds and include forex, commodities, indices, equities, bonds, and ETFs. An array of choice for all.

80
Rated: Excellent
security 93
cost 74
trading 75
education 63

Platforms: Mirror Trader, ZuluTrade, MT4 Web, MT5 Web, Proprietary Web Platform, MAC Platforms Regulations: FSA, MIFID-ESMA, ASIC, IIROC, FSCA, Offshore, FSC (British) Minimum Deposit: 100
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80% of retail investor accounts lose money

4. XTB

XTB is perhaps one of the most highly regulated forex brokers in the world. They meet the regulatory standards of numerous countries aside from the UK where they are FCA regulated (#522157), and are proud of it. XTB also has offices in more than 10 countries, hold more than 14 years in the industry and use segregated accounts to store clients funds. During this time, they have received awards from Forbes and Bloomberg.

A very attractive point XTB holds for many traders is the fact that no minimum deposit is required. New traders in particular like that fact, and the ability to deposit with PayPal for a 2% fee makes them extremely accessible. Add to that the fact they have more than 1,500 assets to choose from including 48 forex pairs with spreads from 0.1pips and 25 crypto assets and you can easily see how they have established such a wide trader base.

74
Rated: Excellent
security 96
cost 55
trading 59
education 83

Platforms: Mirror Trader, Proprietary Desktop Platform, MAC Platforms Regulations: FCA, MIFID-ESMA, CYSEC, Offshore Minimum Deposit: $250
Open an account
76% of retail investor accounts lose money

5. Admiral Markets

Admiral Markets takes regulation very seriously. When you first open their page, you are immediately struck by a pop up showing you in what countries they are regulated. Admiral Markets also make it clear that not only do they also offer clients segregated accounts, they also adhere to the FSCS and have Negative Balance Protection in place as well as being FCA regulated (#595450).

Beyond this, they are one of the best known market maker brokers in the sector with a diverse choice of more than 4,000 assets to trade in that  includes bonds, ETFs, and cryptocurrency. The fact that you can open an account with just $100 is an added attraction for all levels of trader. Once you are trading you can look forward to a packed educational section perfect for learning as a new trader, and spreads that start from 0 pips on forex providing the very best value.

75
Rated: Excellent
security 96
cost 57
trading 58
education 100

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MAC Platforms Regulations: FCA, MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 100
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75.54% of retail investor accounts lose money

6. FxPro

FxPro is a London-based, FCA regulated (#509956) broker that is additionally regulated by CySEC and SCB, giving traders a high level of protection. In 2017, FxPro was voted ‘Best FX Broker’ by the Shares Awards and they are also the official main sponsor of Watford FC and official partner of the F1 McLaren team – two fairly big names in the sporting world. Additionally, FxPro were awarded ‘Most Trusted Forex Brand’ by Global Brands Magazine in 2017 as well as countless other accolades.

minimum deposit starting from just £100 provides top value to all, in particular newer traders, and the broker also carries one of the best known spread betting platforms in the industry, FcPro Edge to appeal to that type of trader. On top of everything, you can benefit from excellent spreads starting at 0 pips, and fixed spreads available through the MT4 trading platform too.

76
Rated: Excellent
security 96
cost 51
trading 63
education 100

Platforms: cTrader desktop, cTrader web, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms Regulations: FCA, MIFID-ESMA, FSB, CYSEC, Offshore Minimum Deposit:
Open an account
81% of retail investor accounts lose money

7. FXTM

FXTM, or as it is otherwise known, ForexTime, was established in 2011. The company is young, but has gained a lot of respect and won a number of awards in a short period of time. FXTM’s reputation has managed to garner them more than 10,000 clients in 135 countries worldwide. Their demo account also lets you play around with $1,000,000, which is more than enough to test their platform to its absolute limits. They are of course FCA regulated (#777911) and provide a total of six account types to choose from.

Of these 6 account types, 3 are dedicated ECN accounts with extremely fast execution speeds. The broker is particularly popular among African traders, for whom they cater very well. That popularity is extended thanks to a very accessible minimum deposit starting at just £10 as well as extremely competitive spreads from 0 pips and a very rewarding loyalty program.

74
Rated: Excellent
security 96
cost 58
trading 54
education 100

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, Proprietary Web Platform Regulations: FCA, MIFID-ESMA, FSB, CYSEC, FSC (Mauritius) Minimum Deposit: $100
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75% of retail investor accounts lose money

8. eToro

eToro is of course recognized as a global leader when it comes to social trading. They are the number one in this regard and one of the top brokers generally in the UK and worldwide. eToro are comprehensively regulated by the FCA (#583263), and are often one of the first choices for new traders entering the industry.

An affordable $200 minimum deposit is the first key to getting started with this household name. Prior to that you can hone your skills with an unlimited free demo account to get some practice in. Once you’re trading, you will experience one of the most user-friendly proprietary trading platforms in the business that is heralded by traders new and experienced alike. Only the USD base currency is supported so you may incur a small conversion fee, but the services and rewarding eToro Club more than make up for this, with a host of great markets available.

77
Rated: Excellent
security 93
cost 64
trading 71
education 72

Platforms: Proprietary Web Platform Regulations: FCA, CFTC, MIFID-ESMA, ASIC, CYSEC Minimum Deposit:
Open an account
73.57% of retail investor accounts lose money

9. XM

Next on our list of top UK brokers is another huge international broker in the shape of XM. They are well-regulated not only by the FCA (#705428), but also by CySEC and are very much a trusted name at the heart of the industry around the world. New traders as well as experienced traders are really attracted to XM thanks in part to a very reasonable $5 minimum deposit to get started.

Unbeatable spreads too are offered at XM from 0 pips on the Zero Spread account which can be opened with only $100. They also cater very well to Islamic traders with a swap-free account, and support the journey of those new to the industry on every step with a packed educational section and unlimited free demo account to practice with. These are some of the many reasons why XM remains a top UK and global forex broker choice.

76
Rated: Excellent
security 96
cost 75
trading 55
education 81

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms Regulations: FCA, MIFID-ESMA, ASIC, CYSEC Minimum Deposit: $5
Open an account
73.5% of retail investor accounts lose money

10. Oanda

Last on our listing of top UK brokers but still up there with the best, is Oanda. Like the others, they too are very well-regulated by the FCA (#542574), and are another much chosen pick for new and experienced traders alike. They too are highly experienced and trusted, having been in the industry since 1996.

Trading here you will find the most competitive of trade opening requirements from £1 that keeps trading available to all, though there is no minimum deposit required. There is a vast range of markets to choose from with something for all levels and types of trader, and the spreads also remain competitive starting from 1 pips with the option to try spread betting if you are interested. This combination of features and trusted reputation has helped Oanda remain at the head of the industry for decades.

72
Rated: Excellent
security 97
cost 53
trading 51
education 100

Platforms: Proprietary Desktop Platform, Proprietary Web Platform Regulations: FSA, MAS, FCA, CFTC, MIFID-ESMA, ASIC, IIROC Minimum Deposit: $0

British trader? Here’s what to look for in a forex broker

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

The first thing to keep in mind is related to leverage. Under FCA regulation like CySEC and ESMA brokers, this is capped at 30:1 for no professional traders. As a professional you can access as much as 400:1 leverage if you meet the criteria to qualify as a professional trader.

Unlike some other regulators though, the FCA do permit spread betting, so if this is something that interests you, then an FCA regulated broker could be the right choice. They do also ensure negative balance protection is offered to all traders and that all funds are held in segregated accounts. A further protective measure comes from the ICF (Investor Compensation Fund). They will cover up to £85,000 in losses due to bankruptcy or insolvency of your broker.

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

1. Look for UK regulated forex brokers

Regulation is vital. When choosing a UK forex broker, 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 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.

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 through 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 contacting local authorities if you don’t know how to manage this aspect


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