Best UK Forex Trader: Top 3 Forex Trading Brokers In 2023
The foreign exchange (forex) market is continuously growing. As one of the largest and most active financial markets in the world, it’s fair to say that forex draws together experienced and newbie traders.
So, here’s the problem:
When you start looking for forex trading platforms, it’s very easy to become overwhelmed by the many choices.
By our review’s end, we’ve identified the three best UK forex platforms to sign up for in 2023 and beyond.
Let’s get to know them, shall we?
Best Forex Trading Platforms In The UK
- AvaTrade – Overall Best UK Trading Platform; Editor’s Pick
- BlackBull Markets – Top Brokers For Trading & Foreign Exchange
- eToro – Trusted Foreign Trading Brokerage Accounts For Investment
#1. AvaTrade – Overall Best UK Forex Trading Platform; Editor’s Pick
AvaTrade first launched back in 2006. And ever since, it has been continuously growing and improving its services.
Today, it counts over 400K registered customers worldwide and over two million traders executed monthly. In addition, AvaTrade counts an impressive $70 billion each month in terms of volume.
Now that we got the numbers out of the way let’s look at other things AvaTrade offers.
Right from the moment you sign up, you notice that user experience is significant for the company. We love to see it since forex already attracts many new people to the market and having an intuitive and user-friendly platform to trade on will make things easier for them.
They also offer 24/7 support to assist all their customers when using their products and have built an impressive suite of tools and offerings.
AvaTrade’s Main Perks
- Trading platforms
AvaTrade’s web trader platform is intuitive, straightforward, and with a simple design that both beginners and experienced traders can appreciate.
You can execute your trade with minimal effort and get a taste of it in the AvaTrade demo mode, a handy tool that will allow you to get to know the tool quickly.
You can use the platform to buy and sell forex pairs, CFDs, ETFs, cryptos, bonds, and commodities. They also feature helpful charts and detailed analytics to offer traders all the information they need to make intelligent and informed decisions.
Regarding safety, AvaTrade performs well and has a strong track record. All the data transfers are compressed and encrypted on 128-bit keys, so all your information (and your money) remain perfectly safe.
- Product range
AvaTrade provides access to over 250 different financial instruments, such as:
- CFDs
- Commodities
- Forex trading
- Copy trading
- Crypto
However, it does not offer real stocks, mutual funds, or other asset classes. Plus, not all instruments will be available across AvaTrade’s platforms, so be sure to check which one offers the kind you want to trade.
- Customer support
AvaTrade’s customer service is pristine! The team takes this very seriously and is available 24 hours a day to help the platform’s users find answers and get out of tricky situations.
One issue is that they don’t work on the weekends, so if you need to get in touch with them, you’ll need to wait until Monday.
Still, they offer lots of educational resources on the site, so you have a strong chance of finding answers to your questions even without the team!
For non-urgent requests, you can reach out to them by email, and their live chat can give you a hand when you need more urgent help.
- Regulation and safety
AvaTrade EU is currently regulated by the Central Bank of Ireland and licensed and regulated by many other financial institutions, such as the British Virgin Islands Financial Services Commission or the Australian Securities & Investments Commission.
Because it is regulated, AvaTrade had to adhere to some stringent rules to keep its licensed status. In fact, it’s one of the most regulated brokers in the entire world!
- Fees for UK users
AvaTrade generally gets its winnings through the Buy/Sell spread. When a trader opens a position, they automatically pay the spread, which is incorporated into the company’s quoted rates, and not an extra fee.
However, additional fees may be involved, such as if you hold a position open after 22:00 GMT.
For users who are inactive for three consecutive months, UK traders will have 50 GBP subtracted from their accounts. After 12 consecutive months of inactivity, the company will deduct an administration fee of 100 GBP.
Pros
- Great information and newbie-friendly content
- Easy to set up and use
- Excellent analytical tools
- Free deposit and withdrawals options
Cons
- Average forex fees
- High inactivity fees
⇒ Visit the Official Website of AvaTrade
#2. BlackBull Markets – Top Brokers For Trading & Foreign Exchange
BlackBull Markets is based in Auckland, New Zealand, and now serves thousands of traders from over 180 countries.
The broker provides multiple trading solutions through proprietary software and competitive pricing. It first appeared in 2014 and has gathered an impressive user base over time.
BlackBull Markets provides users many opportunities, from assets to trade to diverse conditions. We are sure both experienced and new forex traders will be impressed with what this platform offers.
We particularly liked that BlackBull has a special section dedicated to newbies, with lots of valuable resources they can use to learn. The company is very aware of the wave of newcomers in the forex market and is taking a responsible approach to welcome them all!
BlackBull Markets’ Main Perks
- Platforms
BlackBull Markets has both MetaTrader4 and MetaTrader5, two of the most well-known forex trading platforms in the industry, developed by MetaQuotes.
These platforms have excellent automated trading capabilities, so definitely look for them when searching for forex platforms.
In addition, the website has access to other trading platforms, such as TradingView, and its educational resources to help get newbies started.
- Product range
Additionally, the platform specializes in forex but offers other highly liquid products. For example, there are over 65 currency pairs, precious metals such as gold and silver, and even commodities like gas.
BlackBull Markets might offer a smaller range of products than its competitors. Still, it’s important to note that the trading conditions they create might be preferable, depending on your strategy.
For instance, if you’re a day trader and want a place with low commissions and spreads, then this is the perfect place for you. But, on the other hand, if you want to dive into stocks, it’s best to keep looking because you will not find that here.
- Customer support
BlackBull Markets offer 24/7 support via a live chat, which we really appreciate. So traders always have a very convenient way to reach out to a team member and seek help, particularly in important moments.
But it’s not the only way to connect with them! If you’re the type of person who wants to talk to someone, the company has a phone number posted you can call and ask your queries.
Of course, that’s assuming you even need to reach out to them. Their FAQ section is well thought-out and answers most of the common questions that bring people to customer support anyways, so be sure to check it any time you need some answers!
- Regulation and safety
Two reputable institutions regulate BlackBull Markets: The New Zealand Financial Markets Authority and the Seychelles Financial Services Authority.
Being regulated means they must respect some strict operational guidelines, making the entire platform safer and more trustworthy.
- Fees for UK users
We loved to see that BlackBull Market’s fees are generally low and, in some cases, completely waived (even for trades that other products usually charge for).
This encourages their users to trade frequently, so if that’s something you’re interested in, you can definitely do that here.
Pros
- Low forex fees
- Good educational tools
- Access to many trading platforms
- Is regulated
Cons
- Includes withdrawal fees
- Account verifications can take a while, especially for non-New Zealand users
⇒ Visit the Official Website of BlackBull
#3. eToro – Trusted Foreign Trading Brokerage Accounts For Investment
eToro is a revolutionary trading platform that combines trading with a social experience. It’s a trading social network that welcomes new and experienced traders.
One of the most prominent features of eToro is the “copy trade,” where users can essentially copy the most successful traders’ moves.
This makes it an excellent solution for people who want to enter the world of forex, crypto, and general trading.
eToro has one of the most intuitive site designs we’ve ever seen. It’s evident that the entire team expressly set out to give newbies a leg up and give them easy solutions to find their way.
Of course, experienced traders will also greatly appreciate a lot of what eToro has to offer. It operated in over 140 countries, with a heavier crypto approach.
- Platforms
eToro has an innovative self-directed dreading, and copy-trading feature merged into a unitary experience.
The platform is very easy to use, and the basic operations are done in mere seconds, thanks to its innovative design. Traders also have some valuable features right at their fingertips, such as creating watchlists.
Traders have a special tab where they can view all the prices, stocks, and other helpful information provided in real time.
eToro does not allow a fully automated trading system, even in the case of the copy trades features. So even if you copy another user’s trade, you will place it manually.
When you first sign-up, you’ll enter quite a good onboarding process with a self-guided questionnaire that helps you set everything up quickly. eToro supports a lot of financial institutions which you can link to your account and make deposits.
- Product range
eToro allows you to trade in the top markets:
- 3122 stocks
- 49 currencies
- 73 crypto
- 18 indices
- 27 commodities
- 317 EFTS
You can buy and sell a very great variety of major USD and other currency pairs, with a leverage of up to 1:30. For the “Professional Client” accounts, the leverage is up to 1:40 to allow greater exposure through less capital.
- Customer support
eToro’s customer support is at the level we’d expect one of the leading global forex trading platforms to have.
First, you have a considerable number of FAQ-type articles that will address any new and experienced traders’ inquiries. And if by some chance you can’t find your answers in one of these articles, there are other options available, albeit a bit limited.
You can chat directly with a help agent through the live chat feature, which is very useful and can allow you to get answers or address an emergency efficiently. As for emails or phone numbers, those are a bit harder to find.
This tells us that eToro would prefer to solve user issues through the tickets function, which is not necessarily bad. But it can be frustrating if you want to speak directly to a representative on the phone or through email.
- Regulation and safety
eToro is regulated by the UK’s Financial Conduct Authority, the Australian Securities and Investment Commission, and the Cyprus Securities and Exchange Commission.
Users from the UK who open an eToro account will therefore be protected by the FCA. So if the company becomes insolvent, eToro UK users can be compensated with a maximum of £85,000 guaranteed by the Financial Services Compensation Scheme.
- Fees for UK users
People can join eToro for free and even receive a welcome package of $100,000 virtual money to use in a demo account and start to learn to trade.
They have a dedicated fees page where they explain how much users will pay to execute trades based on which products are chosen, so they are one of the most transparent brokers regarding revealing their fees.
Other than that, eToro has five types of fees, which can vary depending on the buy/sell values or other factors:
- Conversion fee, which applies to non-USD deposits and withdrawals
- Spread fee, which is a standard way in which brokers charge
- Overnight fees, or rollover fees, if you hold a CFD position overnight
- Withdrawal fees, which are $5
- Inactivity fee, which is applied after you don’t use your account for one year
Pros
- Reputable global brand
- Is licensed
- Innovate approach to trading
- Large selection of educational and support resources
Cons
- Limited account types
- Limited product types
⇒ Visit the Official Website of eToro
How We Created the List Of Top Forex Trading Platforms In The Forex Market?
The forex market has many platforms, all competing for your attention and, most importantly, for your money.
If you think people gravitate around this market in swarms, it doesn’t even come close to the seemingly infinite number of companies that pop up every month.
As a result, it is your responsibility to carefully vet a forex trader based on various factors, such as the types of currencies offered, commodities, crypto, or NFTs, not to mention any personal requirements you may have.
We decided to lend you a hand and do much of the work for you. So, we’ve looked at some of the best UK forex trading platforms around and put them under a microscope.
To make this list, we needed to come up with a list of factors to use when analyzing the different brokers that came our way.
Using this list, we could quickly disqualify many potential candidates simply because they did not meet our expectations. And that’s how we ended up with the three top UK forex brokers you saw above!
Check out our list below, and feel free to use it yourself when doing your own research!
Licensing and Compliance
First, we wanted to make sure the forex trading platforms followed the law. It’s essential to partner with a company you can trust with your money, and that often means signing up for a platform that’s licensed.
Legitimate forex brokers in the UK are usually authorized and regulated by the Financial Conduct Authority (FCA), which has some rigorous requirements to adhere to. But of course, there are other authorities that can provide these types of licensing.
Most importantly, when a forex company is probably licensed, it generally means it’s much safer to use it. This is because many regulatory bodies make brokers separate the client’s money from the company assets.
This way, if the brokerages get into trouble and lose everything, you don’t lose everything along with them.
Leverage and Margin Amounts
Another crucial factor we were interested in was the level of leverage and margin amounts available.
Leverage means that most of your position size is borrowed from the broker. When a trader opens a forex action, they put down a percentage of its own value, called the margin, and the broker puts out the rest of it.
This influences how large your profits and losses can be compared to how much you paid to open a position.
This ratio is a crucial factor to consider when looking for a broker. If the leverage is high, you can make a lot more with even smaller capital. But high leverage also means potential losses are higher as well.
Usually, a manageable ratio is 1:30, so that’s the kind you should be looking for, especially when first starting out.
Available forex markets
Usually, you’ll want to opt for forex traders with the most significant number of currency pairs so that you can find the match that best suits your trading strategy.
Each currency pair comes with its own pros and cons, opportunities, and risks. Researching them is your no.1 responsibility, but you’ll also need to find a broker who offers it.
Most brokers try their best to offer lots of pairs, especially with popular currencies like USD or EUR.
However, if you want a more “niche” pairing, check out this information on the broker’s website before joining.
Trading tool
Forex traders require special tools (trading platforms) to allow their users to place their actual trades.
This platform’s quality weighed heavily on whether you included a forex trader on our list or not. Therefore, we focused only on user-friendly ones that can even be customized to a certain extent so that users can create their own interfaces.
A complicated trading platform usually means people will have a much harder time getting their way around it. This complicates the process needlessly, so we really wanted to avoid that.
Fees, Commissions, and Spreads
It’s standard for forex brokers to get their money from spreads. This is the difference between the buy and sell prices when you open a forex trade, and it mainly depends on market conditions.
But brokers can have a variety of other commissions or even fees. So, we tried to focus on those platforms that offered the best possible deals for their users.
Trading hours
We focused on those forex traders that offer people as many trading hours as possible. So, although you might be trading in the UK, the type of currency pair you choose might impose different “working hours.”
As a result, even if the broker offers a specific trading pair, it may be virtually impossible to open a trade with it because of the limited trading hours.
Therefore, during our analysis, we tried to pull out brokers who could have offered a satisfactory amount of trading hours.
Resources and Educational Tools
When we first set out to create this guide, we knew it had to be helpful for all types of forex traders in the UK, no matter their experience.
But that also meant that these forex traders we included in our review needed to offer excellent educational resources that could help newcomers get started quickly and safely.
When a company offers such resources for free, it shows a desire to help their customer succeed, make intelligent decisions, and even reach their trading goals.
And lucky for us, many forex brokers went above and beyond to offer this sort of support to new traders. Some of them had full-blown academies explicitly created for newbies to learn the ins and outs of forex, crypto, stock trading, and more.
Online Reviews
Unfortunately, there’s only so much you can tell about a company from checking its website or even using its product for a test drive.
The truth is often revealed in the reviews section. We wanted to see what these user bases genuinely thought of these brokers regarding how they operate and whether they deliver on their promises.
To get a more objective picture, we searched for user-generated reviews on third-party sites like TrustPilot. Many forex brokers love to feature customer reviews on their own websites, but those are always carefully selected to show the company in the best possible light.
For objectivity purposes, we looked at various good and bad reviews and tried to read between the lines to find out more about the company, especially when it comes to paying out users or resolving certain issues.
Things to Consider When Looking for A Forex Broker In UK
The three top UK forex brokers we’ve outlined above are all great places to get started with trading currencies.
However, we are aware that you may also have some specific requirements that they might need to address.
So, to help you with your own search, we’ve prepared a few questions to ask yourself before making a decision:
● Does the forex trading platform fit your trading style?
Your trading style can significantly influence your decision, as you’ll need to ensure the platform itself can offer you the tools and proper support to suit you.
For example, if you focus on carry trades and want to hold positions longer to turn a profit, you need to check out the broker’s swap rates and rollover prices. Likewise, scalpers need a broker who offers tighter spreads.
Lastly, if you’re a beginner and have never traded currencies before, it’s worth looking at the type of resources the broker offers that can help you learn.
We’re not just talking about general how-to guides or breakdowns of forex trading but also support to help you learn how to analyze data and utilize the platform to its full potential.
● What Are the broker’s trading costs?
The next thing you need to ask yourself is how much the entire service will cost since that will significantly impact your earnings.
Many forex brokers make their money through spreads and commissions, but they may also have a lot of additional fees you should be aware of. Nevertheless, it’s a good way to avoid being charged for slight mistakes.
For example, many brokers charge fees for inactivity, but the period that a platform considers a user inactive differs. Some choose a year, while others may impose this charge after even just a few months.
Apart from these costs, consider the minimum deposit the broker imposes, withdrawal charges, and interest rates, as they can vary significantly from broker to broker.
Unexpected costs can be a considerable nuisance to forex trading, so always read the fine print to know exactly what you’re signing up for!
● How stable is the company?
The reputation and stability of a forex trader are paramount to making a safe decision. To assess a company’s stability, we recommend looking at a few key aspects.
The first is the company background. A quick Google search can reveal a lot of things about the company’s history and even some red flags you should be aware of.
The next is the way in which it protects its customers. These platforms have to juggle a lot of sensitive and personal information, including information about your finances. Therefore, they must take many steps to ensure they will be revealed or get into the wrong hands.
Things such as data encryption or two-factor authentication to secure accounts are some of the things you should be looking for.
● Does it offer good customer service?
A forex trading platform doesn’t just offer people a way to trade currencies – it offers the context.
And this context is often created through their level of customer service. The level of support they can offer you directly influences your success as a trader, as they can be the ones to help you navigate an issue and create a safe space for you to reach your goals.
Conversely, trading on their platform can be risky when a broker has poor customer experience.
Support can be offered in different ways, but we’d recommend checking out whether a broker makes it easy for you to get in touch with them if needed. FAQs and resource guides are excellent, but sometimes you need to talk directly with a representative.
FAQ’s: UK Forex Trader
Q1. How do I get started with forex trading in the UK?
- Choose your broker
First, you’ll need to find a forex trading platform that suits your needs. Be sure to use our guide above since not all brokers are created equal!
- Do your homework
If you don’t have any experience, you should start learning about the basics of forex trading. Many brokers offer lots of valuable resources to get you started, but you can also find lots of guides or even courses on other sources.
Forex trading isn’t gambling, so it doesn’t come down to luck. It takes a lot of skills and knowledge to execute good trades and genuinely make a profit out of them.
It would be best to familiarize yourself with the terminology, different trading strategies, and the best currency pairs to trade.
Some brokers may offer learning tools like demo platforms that allow you to make “demo” trades using real-life data without making a deposit. These can be great to test your skills.
- Set up an account
Once you find the perfect broker, you’ll need to set up an account and deposit funds into it. Most brokers will accept a variety of payment methods, but some may impose a minimum deposit amount.
Moreover, some brokers may need more time to vet your information before you can start making trades, so be mindful of that.
After that, you are ready to get on the trading platform and execute your trading strategy!
Q2. Are forex traders legal in the UK?
Yes, forex trading is perfectly legal in the UK. But it’s essential to consider whether you will need to pay taxes to ensure you are respecting the law.
For instance, amateur traders do not need to pay taxes on their forex trading profits. But if you plan to make forex trading your primary source of income, you will need to pay taxes on what you earn.
Q3. Can you trade currencies without a broker?
You can trade forex without a broker by doing your swap through a bank or exchange office. Some people want to choose this option to remove the middleman and stop paying commissions or fees to brokers.
But be aware of the exchange rate if you opt for the non-broker route, as in some cases, you may need to pay at a higher rate than the broker’s fees.
Moreover, brokers offer additional perks such as leverage and educational resources, which banks and currency exchanges do not offer.
Q4. Can you actually make money through forex trading?
Yes, it’s absolutely possible! The forex market has relatively low entry barriers when compared with other avenues of trading, so with a bit of effort and learning, you can improve your strategy and turn a profit.
The most successful trades will require a lot of time and effort, so you need to be realistic about how much money you will end up making. But, at the end of the day, you get what you give in return.
Q5. Which is the best UK forex broker?
With many forex trading platforms active in the UK and worldwide, it takes a lot of work to determine which is the best.
Even more, choosing a forex broker is a financial decision that must be made based on your specific circumstances and requirements. Therefore, the best broker for you might not be the best for us.
Q6. Are forex trading platforms safe?
Forex brokers can be safe, but you’ll need to do a little bit of detective work to see if the one you choose will offer a safe experience.
One of the first things to check is whether the broker is licensed and regulated but a reputable financial institution and therefore activates legally in the UK.
Licensed brokers have a strict list of guidelines they need to abide by, which helps protect their users.
Moreover, you should also check the security measures a broker has in place to ensure their platform is protected against outside attacks or potential breaches.
Brokers can take lots of different steps to protect their users, such as SSL encryption or two-factor authentication.
Final Thoughts: Best UK Forex Broker Alternatives On The Market
So, there you have it – the top 3 UK forex brokers to try out and start trading your favorite currencies!
Forex trading’s low entry barriers can often be a blessing and a curse.
It’s a blessing because it can give many people from all backgrounds a chance to seek financial independence through trading.
But this heightened consumer interest also means many brokers can try to exploit unsuspecting people. As a result, it is imperative to do your research and only sign up with a broker after you’ve thoroughly vetted them.
Before you get started, we recommend using our guide above to help you through your journey.
Or you can always start with the 3 UK forex trading platforms we’ve vetted for you! We’re sure you will be satisfied with what you find there.
