High levels of safety and low taxes are the prime factors Forex traders are looking for nowadays.
The United Kingdom is a prime location offering both advantages, with investments protected by the UK Financial Conduct Authority (FCA), a tier-2 Forex regulator, overseeing money markets in the location.
UK Forex trading is currently the highest globally, with London generating an average daily turnover of nearly $4 trillion from currency exchange.
With this in mind, everyone wants to embark on a Forex career in the UK but is not sure where to start and which platforms to check out. Luckily, this guide is made to address these questions.
Trading Forex in the United Kingdom
First up, it is important to note that trading Forex in the UK is legal. This means traders need to go around a bureaucratic signup process, more restrictions on trading activities, and surveillance funneling of funds.
On the other hand, these little inconveniences are balanced out by the security and reliability of platforms that operate legally in its market.
When choosing a Forex broker, traders are advised to go for FCA-regulated platforms. This step is seen as a crucial aspect of any trading career as it ensures the protection of funds and pro-investor rules.
Another important factor to note is trying out demo accounts before going all in. Many service providers offer free demo accounts for interested users to see the platform’s user-friendliness, get to know fee structures and commissions, and familiarize themselves with trading features before putting in real money.
Lastly, traders in UK Forex markets are advised to go easy when starting as the Forex market is a chaotic market to be in and money burns fast if not careful. Initially, a budget between $500 to $1000 is advised – always invest only what one is ready to lose.
Best UK Forex Broker of 2023
The Best UK Forex Broker this year is Admiral Markets, an FCA-regulated Forex broker operating since 2001. Traders Union, with its expertise in evaluating and recommending brokers, recognizes Admiral Markets for its outstanding performance and regulatory compliance in the UK market.
The Estonian platform has been declared as Traders Union Awards’ Best Broker of Europe in 2022 and is highly regulated by tier-2 and tier-3 regulatory bodies, including the United Kingdom’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investment Commission (ASIC).
In addition, RoboForex has been selected as the best platform for stock Contract-for-Differences (CFDs), also offering a competitive Forex environment with its $10 minimum deposit requirement.
For liquidity seekers, Traders Union named IC Markets as the best provider of Forex liquidity for active seekers for its wide range of trading instruments, 0-pip spreads, and high-speed order execution.
For the cheapest Electronic Communication Network (ECN) provider, Tickmill continues to outshine its competitors, offering Pro and VIP ECN accounts with nearly zero spreads.
Other notable Forex brokers in the UK are FxPro, Teletrade, InstaForex, NordFx, MultiBank, and FBS which are all highly regulated platforms offering low minimum deposit and reliable services.
How to Choose a Forex Broker in the UK
Traders Union suggests looking into the following reminders before initiating an account with any Forex broker in the UK:
- Be familiar with the trading platform through a demo account – demo accounts facilitate traders in becoming acquainted with the exchange’s features.
- Prioritize safety considerations – platforms regulated by top-tier bodies like the Financial Conduct Authority (FCA), Australian Securities and Investment Commissions (ASIC), and Cyprus Securities and Exchange Commission (CySec) hold an advantage over others. The FCA is the premier regulator in the UK market, and service providers overseen by them carry the highest degree of safety and reliability.
- Review customer feedback – examine opinions from traders who have already used the platform to assess the broker’s overall reliability.
- Evaluate research options – verify whether the broker provides a robust set of analytical tools, including technical indicators, charting tools, educational resources, and analytical reports. This will enable flexibility to try a wide array of trading strategies in pursuit of higher profitability.
- Investigate automation tools – opt for a platform that offers industry-standard automation tools such as copy trading to execute trades without constant supervision. The presence of the latest platforms such as MetaTrader4 and MetaTrader5 should also be considered.
UK’s 100% Deposit Bonus Offers
Another consideration that traders look for is brokerage companies offering lucrative incentives. A 100% deposit bonus Forex broker is valuable, especially for those with a low amount of capital seeking ways to amplify their funds.
RoboForex currently has a one-time 100% deposit bonus program that matches a user’s initial Cent account deposit. The process is also pretty straightforward: deposit funds into MetaTrader4 or 5 accounts of RoboForex, look for the bonus option on the deposit form, choose the ‘100% deposit bonus,’ and enter the bonus code to activate it.
For those looking for a similar offer, AMarkets currently runs a deposit bonus program where users can get up to $10,000 equal to 100% of the user’s initial deposit. While Forex4You observes a 100% welcome bonus for each account a new trader opens, be it in Forex, CFDs, or commodities.
Other notable platforms that Traders Union experts found to have attractive deposit bonuses this year are Teletrade, InstaForex, and Admiral Markets.
What is the catch of a 100% deposit bonus in Forex? Users are required to meet the platform’s minimum trading volume requirement before becoming eligible to withdraw the funds. This is a condition one should never miss looking out for before signing up on a new platform.
