This post is also available in: deDeutsch itItaliano

Forex BrokerMax Leverage (outside UK & EU)Min. DepositSpreadFull Reviews Trade Now
1000:1$5From 0.1 PipsRead the full review
500:1$200From 0.0 PipsRead the full review
400:1$250From 0.1 PipsRead the full review
200:1$0From 0.1 pipsRead the full review
400:1$200From 2.0 PipsRead the full review
400:1$100From 0.8 PipsRead the full review

Why Forex is so popular in UK?

As the undisputed financial capital of the world and aided by a unique time-zone advantage, the UK is hugely popular among the general trading community. The European or UK session often displays more market volatility than any other trading session. This is one of the key reasons why a large number of financial services companies, leading banks and hedge funds have established their headquarters in London. The UK is also very popular in the Forex trading industry, which sees a high volume of Forex transactions conducted during the European/UK session.

Traders located in the UK have a large selection of local Forex brokers at their disposal. Top UK Forex brokers are licensed and regulated by the FCA (Financial Conduct Authority), which regulates the financial firms that provide services to consumers and maintains the integrity of the financial markets of the United Kingdom.

Although the UK has slightly more regulatory requirements and a higher tax environment than other areas of the world, Forex brokers still prefer the unique advantages they enjoy when conducting business in this jurisdiction. Even though traders from the UK can trade with any international broker, it may be beneficial to choose a local broker that operates under local law. There are, of course, other jurisdictions and regulatory bodies, such as the ASIC (the Australian Securities and Investments Commission) in Australia or CySEC (the Cyprus Securities and Exchange Commission), but there are also many ‘weaker’ jurisdictions from which brokers operate. This does not necessarily mean that brokers from these areas are ‘bad’, but it is true that it is often much easier to be registered as a broker in these jurisdictions as they tend to have lower capital requirements, looser policies and procedures, and limited oversight and enforcement powers. It is, therefore, advisable to choose a broker regulated by the FCA or another of the EU’s watchdogs and strong regulating bodies.

How ESMA is changing Forex in UK

To help you find the best UK-based Forex broker for your needs, our review presents a list of the top UK Forex brokers based on regulation, security, reliability,  professionalism, customer service and, of course, trading conditions.

The newly-implemented ESMA (European Securities and Markets Authority) requirements have recently limited all UK and European Forex brokers to offering maximum leverage of 30:1 to all retail customers. Further limitations on cryptocurrency trading and even bans on certain trading products, such as binary options trading or spread betting, have also been introduced by the ESMA. Though other jurisdictions permit higher or even unlimited maximum leverage settings and all trading products, it can be beneficial for retail clients to keep their trading under greater control with these ESMA rules.

Traders should always be very cautious when using high leverage settings as they involve high-risk trading CFDs. A 30:1 leverage on major currency pairs already significantly increases one’s exposure to risk.

Advantages of Trading with an UK fx Broker

When it comes to trading the British pound (GBP), a major currency that is often traded against the US dollar (USD) or the Euro (EUR) among others, it makes sense to look for a UK broker because they often offer the best market spreads for GBP pairs as well as fast execution.

However, it is not only the local currency that can be traded profitably with UK Forex brokers. Many of the UK’s best Forex brokers offer an overall excellent trading environment, very competitive spreads, fast execution speeds, a large range of trading products and many other great features, such as the option to engage in copy or social trading for example. Trading Forex, CFDs or other financial products with FCA regulated brokers is, therefore, a good choice.

Almost all top UK Forex brokers, such as XTB or Forex Time, offer leading trading platforms such as MetaTrader4 (MT4) and its younger sibling MT5 or cTrader. Both demo account and live account options are commonly available with any UK or Europe-based online broker. Some brokers have also built and utilize their very own proprietary trading platforms that are often highly intuitive, easy-to-use and feature-rich. Top Forex and CFD brokers, such as FXTM (Forextime), further offer asset (portfolio) management and copy trading to their clients. eToro, another popular UK-based broker, is one of the top social trading brokers and is utilized by many retail investors.

Find the best option for you

To help you find the Forex broker that is best suited to your needs, take a look at our comparison table and ranking of the UK’s top Forex brokers above. If you require more in-depth information or are looking for more brokers to choose from, check out our detailed individual broker reviews and additional comparison tables.