Please remember that when you trade, your capital is at risk. More than 65% of retail investor accounts lose money when trading CFDs with most of the providers below. You should consider whether you can afford to take the high risk of losing your money before moving forward.
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We’ve compiled a list of the best forex trading platforms in the UK. These are our top five forex brokers for buying and selling national currency pairs using leverage.
Please remember that when you trade, your capital is at risk. More than 65% of retail investor accounts lose money when trading CFDs with most of the providers below. You should consider whether you can afford to take the high risk of losing your money before moving forward.
The platforms listed below are authorised and regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA).
Here are the best forex trading platforms in the UK:
FinecoBank is one of Europe’s largest banks, with 20+ years of leadership history in brokerage and over 30 million orders processed every year. Its core mission is to make online trading simple by providing direct access to the markets in just one click. With FinecoBank, you can access 26 global markets and trade over 20,000 financial instruments worldwide on a single account, including forex, CFDs, UK and overseas shares, ETFs, funds, bonds, futures and options. FinecoBank offers a wide selection of cross-currency pairs, including the most important FX market pairs, EUR/USD, GBP/USD, GBP/JPY and AUD/USD. Users can also invest and trade directly in GBP, EUR, USD, CHF and 20+ currencies.
FinecoBank users enjoy advanced tools, interactive charts and automatic orders via the website, mobile apps or PowerDesk platform. PowerDesk is an advanced and fully customisable trading platform with powerful charting, analytics tools, and stock screeners. The large spectrum of indicators and chart analysis available on PowerDesk will satisfy the needs of the most experienced forex traders. PowerDesk also offers powerful risk management tools such as Stop Loss, Take Profit, Trailing Stop, Conditional Orders, One-Cancels-the-Other (OCO) and Basket Orders. Users can access real-time prices across thousands of products, with live P&L updates and economic data. In-house training to improve your trading abilities and acquire specific skills for forex trading is also available. FinecoBank is suitable for both beginners and experts.
With FinecoBank, the spreads, which function as trading fees for forex brokers, start as low as 0.8 pips. Overnight position charges also apply based on the value and duration of your trade. FinecoBank does not charge currency conversion fees, but FX spreads apply. FinecoBank’s products include a Trading Account and Stocks and Shares ISA.
Please note: When you invest, your capital is at risk. 68.01% of retail investors lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and can afford to take the high risk of losing your money.
XTB is an easy-to-use, fully customisable European trading platform and one of the largest stock exchange-listed CFD and forex trading brokerages in the world. XTB provides traders instant access to hundreds of global markets and over 2,100 instruments, including forex, indices, commodities, stock CFDs and ETF CFDs. With XTB, you can trade 48 national currency pairs, including majors such as GBP/USD, EUR/USD, EUR/GBP, USD/CAD, USD/CHF, USD/JPY and AUD/USD. You can also trade minors, exotic pairs and crosses.
xStation by XTB is a powerful trading software available on iOS, Android and desktop devices and suitable for both beginners and advanced forex traders. The xStation forex trading apps give you access to comprehensive charting and risk management tools. With the built-in trading calculator, you can easily estimate costs, profits or losses before opening a position, modify stop loss and take profit orders directly on the chart or close all positions with a click of a single button. You can also enjoy access to market sentiments, which shows you how XTB customers around the world position themselves on individual markets. The software also supports micro-lot trading. In addition, XTB has an extensive library of educational materials containing videos, webinars and courses suitable for both beginners and experienced traders. When you sign up, you will have access to a dedicated account officer who will work with you to help you better understand your needs and how XTB works.
It is free to open a forex trading account with XTB. Deposits in GBP and EUR are free of charge, but withdrawals below £60 have a £12 processing fee. On XTB, the spreads, which function as trading fees for forex brokers, start at 0.1 pips. XTB also charges overnight fees relative to the value of your positions. Inactive accounts attract a monthly fee of €10 (£9). Other fees apply. For more information, visit XTB. XTB has offices in over 13 countries, including the UK, Germany and France, and over 500,000 customers worldwide. XTB does not offer an ISA or SIPP.
Please note: Contracts for Difference (CFDs) are leveraged products and carry a significant risk of loss to your capital, as prices may move rapidly against you, and you may be required to make further payments to keep any trades open. Between 74 and 89% of retail investor accounts lose money when trading CFDs. These products are not suitable for all clients. Please ensure you fully understand the risks and seek independent advice.
eToro is a multi-asset trading platform that allows you to invest and trade in forex, stocks, ETFs, indices, commodities, cryptocurrencies, and NFTs, directly or via contracts for difference (CFDs). With eToro, you can trade up to 49 national currency pairs, including majors such as EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF and EUR/GBP. You can also trade minors, exotic pairs and crosses.
The eToro trading software is powerful, intuitive and easy to use. ProCharts, a professional-grade technical analysis tool available via the software, enables you to compare charts from different financial instruments and time frames. The software also provides risk management tools, such as Stop Loss, Take Profit and Trailing Stop Loss, which you can use to better manage your positions, protect your investments and secure your profits. Forex trading on eToro is suitable for both beginners and advanced traders. Beginners can benefit from the educational materials, user-friendly desktop and mobile forex trading apps and copy trading tools (which allow you to copy the trades of top-performing forex traders on the eToro platform). Advanced forex traders can take advantage of the superior charting and analytics tools, social trading features, and real-time market news and insights.
It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free, which you can use to practise trading until you become confident. On eToro, the spreads, which function as trading fees for forex brokers, start at 1 pip. eToro also charges overnight fees relative to the value of your positions. Trading on eToro occurs in USD, so a currency conversion fee will apply if you deposit or withdraw in a currency other than USD. Withdrawals incur a fee of US$5, and the minimum withdrawal amount is US$50. For UK customers, eToro offers an eToro Money app which allows you to convert your GBP to USD free of charge, thereby reducing your foreign exchange costs. eToro does not offer an ISA or SIPP.
Please note: When you invest, your capital is at risk. 80 - 90% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Additionally, cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. Copy Trading does not amount to investment advice. Other fees apply. For more information, visit eToro.
Pepperstone is a CFD and forex broker that allows you to trade a wide variety of instruments, including forex, indices, stocks, ETFs, commodities and other assets via contracts for difference (CFDs). The Pepperstone platform boasts low-cost spreads, fast execution speeds and access to over 1,200 trading instruments. The Pepperstone CFD trading accounts allow a minimum trading size of 0.01 lots and a maximum of 100 lots. Retail traders can access leverage of up to 30:1 and 60+ currency pairs. Professional traders can access much higher leverage and even more exclusive features. With Pepperstone, you can trade more than 60 national currency pairs, including majors such as EUR/USD, EUR/GBP, GBP/USD, USD/CAD, USD/CHF, USD/JPY and AUD/USD. Users can also trade minors, exotic pairs and crosses.
Pepperstone also allows you to trade and enjoy the seamless creation of advanced trading strategies via some of the most popular and powerful trading software, including TradingView, MetaTrader 4 (MT4), MetaTrader 5 (MT5), CTrader, DupliTrade (for social and copy trading), and Capitalise AI (for code-free trading automation). The Pepperstone platform is suitable for both beginners and advanced traders. It is entirely free to open an account with Pepperstone, and all registered users gain access to a free demo account which you can use to practise forex trading until you become confident.
On Pepperstone, the spreads, which function as trading fees for forex brokers, start at 0.6 pips. Pepperstone charges commissions on CFD Razor accounts when trading forex and a swap rate (overnight fee) for holding CFD positions overnight. Other fees apply. Pepperstone does not offer an ISA or SIPP.
Please note: When you invest, your capital is at risk. Between 74 and 89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and can afford to take the high risk of losing your money.
Saxo Markets is the UK division of Saxo Bank, a large European bank and investment platform that allows you to invest in 60,000+ financial products from stock markets around the world, including London, New York, Hong Kong, and 50+ other global markets. With Saxo, you can invest in leveraged trading products such as forex, CFDs, futures, commodities and options, or cash investment products such as UK and overseas stocks and shares, bonds, and ETFs.
Saxo offers a wide selection of currency pairs, including majors such as GBP/USD, EUR/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF and EUR/GBP, minors, exotic pairs and spot metals. Saxo traders benefit from extensive charting with 50+ technical indicators, integrated trade signals, news feeds and risk-management features via the SaxoTraderGO platform, which is available on desktop, tablet or smartphone. Advanced traders can access even more sophisticated trading features on SaxoTraderPRO, Saxo Bank’s desktop-only advanced trading platform.
With Saxo, the spreads, which function as trading fees for forex brokers, start as low as 0.4 pips. Overnight interest rates and charges also apply based on the value and duration of your trade. Saxo’s suite of products includes a Trading Account, Stocks and Shares ISA and SIPP.
Please note: When you invest, your capital is at risk. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and can afford to take the high risk of losing your money.
Forex (foreign exchange or FX) trading involves the speculative buying and selling of national currencies with the goal of making a profit.
If you’ve ever travelled out of the country, received or paid someone in a currency other than your local currency or visited a post office, bank, or bureau de change to buy travel money, you have already participated in the foreign exchange market.
But unlike buying and selling foreign currencies in a bureau de change or bank for personal or even commercial use, when you trade forex, you do not actually receive the foreign currency in your bank account or the cash in your hand. Instead, you are participating in a contract that specifies that if the currency you purchase increases in value, you take the profit, and in the same way, if it drops in value, you accept the loss. This is called “over the counter” or OTC trading, which means there is no physical exchange of the actual currency.
People and institutions use forex to hedge currency and interest rate risk, speculate on geopolitical events, diversify portfolios, or simply make a quick financial gain.
Because countries need to trade with one another to thrive, the foreign exchange market tends to be the largest and most liquid asset market in the world. According to a 2022 triennial (three-year) report from the Bank for International Settlements (a global bank for national central banks), trading in OTC FX markets reached $7.5 trillion per day in April 2022, up 14% from $6.6 trillion three years earlier.
Forex literally translates to foreign exchange, which refers to trading or exchanging one currency for another. “Forex” is a portmanteau of the words “foreign” and “exchange”.
People and institutions trade forex for a variety of reasons, including hedging currency and interest rate risk, speculating on geopolitical events and diversifying portfolios.
The best forex trading platforms in the UK provide the tools and support to empower everyday traders to trade forex for hedging, speculation and diversification.
Currencies are traded on the forex markets and are usually traded in pairs. This is because when you buy one currency, you simultaneously sell the other. Each currency has a three-letter symbol similar to the ticker symbols you find on stock exchanges (for example, AAPL represents Apple Inc. on the NASDAQ Stock Market in the US).
In the forex market, we use GBP for the British pound sterling, EUR for the euro, USD for the United States dollar and so on. Currency pairs are quotations of two different currencies, with the value of one currency being quoted against the other. For example, GBP/USD.
Each currency pair comprises two elements: the first is known as the “base currency”, and the second is the “quote currency”. The base currency is always equal to 1, while the quote currency is the value of the second currency. For example, if GBP/USD = 1.3, this means that £1 = US$1.3. Alternatively, you could say it would cost US$1.3 to buy £1. An easy way to think of this is - any time you look at the value of a currency pair, you are looking at the value of the second currency.
Currency pairs on the forex markets typically have two prices: the “Bid” price, which is the price you buy a currency pair and the “Ask (or Offer)” price, which is the price you sell a currency pair.
It is relatively easy to enter and participate in the forex markets. The markets are open 24 hours a day, five days a week: starting each day in Australia and ending in New York, and anyone with a smartphone and internet connection can access them. The easiest way to participate in the forex market is by signing up with a forex trading app or broker. Additionally, participating in the FX markets requires very little of your own money to start, as most forex brokers provide the opportunity to use leverage (credit) to increase the size of your portfolio.
Finally, since trading foreign exchange is a macroeconomic endeavour, one need not bother with understanding the nuances of microeconomic factors.
Beginners can start trading forex in the UK by following the steps below:
The forex market is open 24 hours a day, five days a week: starting each day in Australia and ending in New York.
Unlike individual stock exchanges, such as the New York, London or Frankfurt stock exchanges, which work to specific opening hours and hence have a stop-start nature, forex markets work non-stop five days a week from 9 pm GMT on Sunday until 8 pm GMT on Friday.
The ability of the forex markets to trade over 24 hours is due in part to different international time zones. The forex market has four main trading hubs, each working across different time zones: Sydney, London, Tokyo and New York. When FX trading stops in one location, it continues in another. Forex is also traded in Zurich, Frankfurt, Paris, Hong Kong and Singapore.
There are four main types of forex traders: scalper, day trader, swing trader and position trader.
To succeed in forex trading, you need to understand the terminology. Here are some important forex terms to get you started:
Here are the best forex trading apps for beginners:
Yes, forex trading is subject to tax in the UK. The tax treatment depends on whether you are trading forex via Contracts for Difference (CFDs) or Spread Bets. If forex trading is performed through a spread betting account, the income from your trades will be exempt from tax under UK tax law. If you trade forex via CFDs, you are liable to pay Capital Gains Tax (CGT) on the profits from your trades above the capital gains allowance.
It is important to keep accurate records of all your forex trading activities to ensure you pay the correct amount of tax to HMRC. You may also wish to consult a tax adviser to ensure you fully understand your tax obligations.
Professional forex traders typically use a range of software tools to help them make informed trading decisions. Some of the most commonly used software for forex trading are:
The best forex trading platforms in the UK provide access to some of these platforms. Others offer their own in-house software, which is just as powerful.
In addition to trading platforms, professional traders may also use analytical software tools to help them analyse market trends and develop trading strategies. These tools may include data analysis tools like Excel, Google Sheets or Python, as well as backtesting software that allows traders to test their trading strategies using historical market data.
To start trading forex in the UK, you need to:
You can start forex trading with as little as £100 in the UK. However, forex trading requires a significant time commitment, and in order to make a full-time income, you will likely need capital in the hundreds of thousands of pounds.
The best forex trading platforms for beginners in the UK are eToro, FinecoBank and Saxo. These platforms are easy to use and accessible on desktop, iOS and Android devices. They also provide a host of educational resources, including courses, webinars and video tutorials to help beginners learn forex trading. FinecoBank and Saxo are also relatively cheap compared to other forex brokers.
Whether forex trading is worth it depends on various factors such as risk tolerance, investment goals, and market conditions.
For instance, if an individual has a high-risk tolerance and is willing to put in the effort to research and analyse market trends, they may be able to profit from forex trading. On the other hand, if someone is risk-averse and lacks market knowledge, they may end up losing money.
Additionally, the forex market is highly affected by global events and economic factors, such as political instability, inflation, and interest rates. This means that traders need to stay up-to-date on these factors and be able to make informed decisions based on market trends.
Forex trading can be worth it for experienced traders who are willing to take risks and invest time in learning the market. However, it is not a guaranteed way to make money and can be risky for beginners or those unwilling to invest the necessary time and effort.
Yes, it is possible to make a living with forex trading, but it requires a lot of dedication, discipline, and experience. Forex traders who are successful make consistent profits over a long period by managing their risks and using a variety of trading strategies. For example, traders may use technical analysis to identify trends and support/resistance levels or fundamental analysis to analyse economic indicators and news events.
With that said, forex trading involves a high degree of risk, and traders should always be aware of the potential for losses. It is essential to have a solid understanding of the markets and to continuously learn and adapt to new market conditions if you hope to become a successful forex trader.
Yes, forex markets are regulated. The Financial Conduct Authority (FCA) regulates forex trading in the UK.
Here are the top five forex brokers in the UK:
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