♦ Eightcap, competitive price and excellent daily video。

♦ FXTM, the best all-round broker with high floating leverage and fast execution speed。

♦ AvaTrade, highly regulated with choice of fixed or floating spreads。

BlackBull Markets, the best ECN trading environment with scalping and hedging。

FP Markets, ECN trading, leverage up to 1: 500。

♦ ACY Securities, using the MT5 trading platform for swap-free trading。

MultiBank Group, deep liquidity with no trading restrictions。

Pepperstone, execute excellent ECN trading on MT4 platform。

eToro, the best broker for social traders and cryptocurrency traders: 74% of retail CFD accounts lose money。

♦ Plus500, extensive CFDs + trailing stops。

▍ Best UK Broker Comparison

 ○ Eightcap

Eightcap ranks among the best Forex brokers with its first-class trading infrastructure, excellent order execution capabilities, extremely high liquidity, extremely competitive fees and cutting-edge trading tools。Manual traders get a well-designed artificial intelligence economic calendar, Eightcap upgrades MT4 with Capitalise AI, algorithmic trading in a code-free environment。MT5 traders benefit from Flash Trader, while Crypto Crusher, a specialized cryptocurrency solution, meets the needs of cryptocurrency traders。

Copy traders get embedded MT4 / MT5 services, while Eightcap connects social traders with the active TradingView community。Novice traders have access to excellent education and research services through Eightcap Labs and Eightcap Trade Zone。

Advantages	Disadvantages
Low minimum deposits and leverage of up to 1: 500	Limited leverage in some areas
Competitive cost structure
Excellent technical infrastructure and experienced management team
Daily research and quality educational content

○ FXTM

We rated FXTM as one of the top brokers because in addition to its long history, it also enjoys a high level of supervision and reputation, and provides a very competitive fee structure, thereby reducing transaction costs。

Advantages	Disadvantages
Excellent commission-based forex pricing environment and transparency	No Cryptocurrencies, Limited Commodity Options
Upgraded MT4 / MT5 Trading Platform and Proprietary Mobile Trading APP
Quality market research and education content for junior traders
Proprietary replication trading platform and high leverage

○ AvaTrade

Headquartered in Dublin, Ireland, AvaTrade is an ECN / STP broker offering a trusted, highly regulated trading platform for traders across the UK.。

The AvaTrade platform is multifaceted and covers a range of popular trading options including MetaTrader 4 (MT4), MetaTrader 5 (MT5), AvaTradeGO and WebTrader。Avatrade is regarded as a top forex and CFD broker due to its high level of trust, and its regulators include the Australian Securities and Investments Commission (ASIC), Japan's Financial Services Authority (JFSA) and the Investment Industry Regulatory Organization of Canada (IIROC).。

In addition, UK traders can enjoy 6 ETF options and 2 bond options。While the minimum deposit on the account is $100, new members can test the company's options and features for free with a demo account。

Advantages	Disadvantages
Provide high-quality education services through SharpTrader	Transaction costs are competitive, but nothing special
A variety of trading platforms to choose from to meet various trading needs
Broad asset selection and cross-asset diversification opportunities
Trusted Broker Regulated by Central Bank

○ BlackBull Markets

BlackBull Markets launched in New Zealand in 2014。Like many anti-legacy forex brokers, BlackBull Markets is an ECN broker that offers raw spreads and commissions.。They are regulated in New Zealand by the Financial Service Providers Registration Authority (FSPR), which provides maximum leverage of up to 500 to 1 on certain foreign exchange currency pairs.。BlackBull Markets offers a relatively narrow range of tradable assets: 27 forex currency pairs and crosses, gold, silver, crude oil, natural gas and six major stock indices。This should be sufficient for traders whose strategies are more concentrated and do not require widespread diversification.。

Advantages	Disadvantages
ECN / NDD execution mode with deep liquidity	Limited deposit options
Institutional-level pricing for retail traders through proprietary price aggregation
ZuluTrade and Myfxbook for Social Trading
Leverage ratio up to 1: 500

○ FP Markets

FPMarkets offers UK traders a wide range of tradable assets, a strong track record and a level of regulation。The Australian company, founded in 2005, gives members the opportunity to trade more than 10,000 individual stocks and shares, thus outperforming most other brokers in the UK.。In addition, FPMarkets offers more than 60 forex currency pairs and crosses, all major commodities, no less than 5 cryptocurrencies (including Bitcoin) and 11 stock indices.。The company is heavily regulated by the Australian Securities and Investments Commission (ASIC) and the Cyprus Securities and Exchange Commission (CySEC), and is subject to additional regulation by the Saint Vincent and the Grenadines Financial Services Authority.。

Advantages	Disadvantages
Optional trading platform and auxiliary trading tools	Providing Iress is subject to geographical restrictions
Competitive cost structure and superior asset selection
Low minimum deposit requirements and leverage of up to 1: 500
Perfect supervision, trustworthy

○ ACY Securities

Traders with ACY Securities Pro Zero and Bespoke account types enjoy 0.The original spread from 0 points, the commission is 6.00 dollars and 5.00 美元。Upgraded MT4 / MT5 trading platform fully supports algorithmic trading and copy trading。ACY Securities offers low-latency 24 / 5 market access via VPS custody, while copy traders can also use third-party Signal Start and SoFinX。ACY Securities is one of the best forex brokers in the UK。

ACY Securities has occupational indemnity insurance, provides liability protection, and segregates all customer deposits from the Commonwealth Bank's corporate funds.。Pursuit of passive-income earners to get high-paying cooperative programs。

Advantages	Disadvantages
Vast library of daily analytics and educational content	Only 1 regulator
The low spread of the zero spread account starts at 0.
16 payment processors, including cryptocurrencies
Commission account transaction fees are competitive

○ MultiBank Group

MultiBankFX meets 10 regulatory requirements with offices in 20 countries, ensuring clients have an unparalleled global network with deep liquidity pools in major financial centres and core emerging markets。Traders can use the MT4 / MT5 trading platform (full support for algorithmic trading) and proprietary copy trading services。The asset selection includes 55 + currency pairs and 20,000 + equity CFDs and ETFs, while cryptocurrency traders have access to 11 highly liquid currencies.。MAM / PAMM accounts for traditional retail account management, VPS hosting for algorithmic traders, FIX API trading for advanced trading needs with customized solutions。In addition, there is a high-paying partner program。

Advantages	Disadvantages
20,000 assets with extensive coverage of financial markets	Access to the original spread requires a minimum deposit of $5,000 in the ECN account
The original spread is from 0 o'clock and the maximum leverage is 1: 500
MAM / PAMM account and proprietary copy trading platform
ECN trading with deep liquidity, no need to re-quote

○ Pepperstone

Pepperstone is known for its diverse selection of third-party platforms, including various social copy trading platforms.。For UK traders, Beibei Stone provides a solid and reliable foundation, thanks to three top financial regulators, namely the Australian Securities and Investments Commission (ASIC), the UK Financial Conduct Authority (FCA) and the German Financial Information Authority (BaFIN).。Pepperstone is also regulated by the Cyprus Securities and Exchange Commission (CySEC) and the Dubai Financial Services Authority (DFSA).。Pepperstone's active traders plan to return a percentage of their spreads based on monthly trading volume。UK Premium customers trade at least $15 million or 150 standard lots per month to qualify for Tier 1 rebates (10% per lot)。

Advantages	Disadvantages
Excellent trading platform selection consisting of MT4 / MT5 and cTrader	Demo accounts have a 30-day time limit
Market-leading MT4 / MT5 upgrade packages, Autochartist and API deals
Support social trading with Myfxbook, MetaTrader Signals and DupliTrade
Up to 1: 30 leverage and best-in-class trade execution

○  eToro

eToro was founded in 2007 in the early days of the online retail forex era, and as the king of social and copy trading, the broker occupies a unique space.。eToro has a long history and a unique reputation, although this image focuses more on its copy trading model than on any other individual characteristic, perhaps apart from its special relationship with cryptocurrencies, eToro is a leading cryptocurrency CFD broker。After acquiring Danish blockchain company Firmo and Belgian cryptocurrency portfolio tracking app Delta in 2019, it released a mobile cryptocurrency wallet.。

Advantages	Disadvantages
An active investment community is ideal for social trading	Internal Withdrawal Fee
Special tools for social transactions
Wide selection of cryptocurrencies
More educational services for novice traders

○ Plus500

Plus500 is a global forex broker founded in 2008.。It has a good regulatory environment provided by the UK FCA, Cyprus CySEC, Australia ASIC, New Zealand FMA, South Africa FSCA, Seychelles FSA and Singapore MAS.。In a commission-free trading environment, Plus500 offers traders more than 2,800 trading assets, including nearly 900 options contracts.。This extremely wide range of options makes Plus500 a suitable choice for traders looking to pursue a broad diversification of assets。Plus500 is licensed to offer CFDs in New Zealand through ASIC (AFSL # 417727) and FMA (FSP # 486026)。Plus500 also provides trading services in South Africa (Authorized Financial Services Provider # 47546)。

Advantages	Disadvantages
Wide selection of stock and option assets	Sub-standard trading platforms that do not support automated or social trading
Free and unlimited demo account
Advanced free analytical trading tool
Regulated Global Fintech Platform

How to Choose the Right Forex Broker in the UK

The most important thing for any broker is to be trustworthy.。The Financial Conduct Authority (FCA) is one of the world's leading regulators.。Every UK Forex broker must hold an FCA licence so that these brokers can operate in a highly secure environment。It is important to note that regulation is not a panacea, as there are cases where well-regulated brokers deceive their clients, but the FCA does provide a trustworthy environment。It should also be noted that traders in the UK can choose to trade with other non-FCA regulated brokers。Traders also need to consider cost structure and asset selection as they will directly affect the profitability of any executed trading strategy。

Almost all of the UK's forex brokers offer reputable trading platforms, with MT4 being the industry standard and often advertised as the cutting edge and industry leading gateway to the financial markets.。While the MT4 infrastructure has these features, most brokers offer out-of-the-box versions that don't。Competitive brokers will provide the necessary third-party plugins or create an alternative in-house。This is probably one of the most overlooked aspects of a UK Forex broker's overall product and service portfolio。Ancillary trading services, such as research, VPS custody, account management services through MAM / PAMM, should also be taken into account, as these services can distinguish brokers that focus only on the lowest operating costs from brokers that truly want to provide traders with a competitive advantage。

Is foreign exchange trading legal in the UK?？

Yes, forex trading is 100% legal and regulated in the UK, which is the world's largest forex trading market, with more than 37% of trading volume flowing through the UK financial industry and its hundreds of brokers every day。

Let's analyze the most important aspects to consider when choosing a forex broker in the UK:

1.UK Foreign Exchange Regulation

The United Kingdom, with the FCA as the industry regulator, has become a major destination for the financial industry since 2002, when the United States passed unfavourable laws that forced forex brokers to withdraw from the United States.。

Even after Brexit, online trading conditions for UK forex brokers operating under the supervision of the FCA remain the most competitive in the world.。Its leading position also benefits from its legally available trading instruments, such as contracts for difference (CFD) and other derivatives not available in the U.S.。The minimum deposit requirements for most of the UK's top forex brokers are relatively low, usually below $100 or its currency equivalent.。In the UK, funds must be completely segregated from the company's capital, which is safer than any other jurisdiction.。

The Role of the FCA for UK Forex Brokers

The FCA sets out a series of requirements that Forex brokers must meet before they can obtain a license to operate.。It also has a set of rules to ensure transparency and a stable capital structure.。Violations will result in investigations, fines and possible licence revocation, ensuring that only trusted brokers can legally operate in the UK。

Here are some of the requirements that all UK Forex brokers must comply with:

• Maintain minimum capital requirements with a straight-through processing (STP) model of 12.£50,000, market makers £730,000。
• Customer deposits must be segregated from company funds。
• Daily submission of capital balances and monthly and quarterly submission of financial documents。
• Ensure business models operate in line with best practices。
• Brokers must disclose to their clients the risks involved in each trading instrument and always have the client's best interests at heart。

Under the Financial Services Compensation Scheme (FSCS), customer deposit protection of up to £85,000 is the highest in the world.。In contrast, the investor compensation fund (CIF) allocated by brokers regulated by the Cyprus Securities and Exchange Commission (CySEC) is capped at €20,000.。The FCA also maintains a list of fraudulent brokers as many try to imitate brokers regulated by the FCA。In this way, traders can quickly identify real brokers from the FCA's designated "clone brokers."。

How to verify FCA authorization

Traders should find the FCA registration number, usually at the bottom of the broker's home page。This is then compared to the official FCA database to verify the FCA authorization。It also shows all known clones of registered brokers。

How to avoid foreign exchange scams in the UK

A growing number of UK traders and consumers are finding themselves unwittingly targeted by UK scammers who are promoting forex scams and fraud platforms on social media.。The easiest way to avoid forex scams in the UK is to trade with forex brokers regulated by the FCA who are legally allowed to accept clients residing in the UK。If you choose a broker regulated by the FCA, be sure to check the official FCA database to avoid cloning UK companies and scammers。

Benefits of regulated markets

As a UK trader, trading with a regulated forex broker ensures a safe and credible trading environment, best business practices, deposit security and financial stability for the broker, and the regulator ensures that the brokers serving UK traders have their best interests in mind, giving you peace of mind。

2.Trading platform and software

Trading platforms are desktop clients, online trading platforms or mobile applications.。Traders should ensure that the trading platform is user-friendly, with high-quality charts and a wide range of technical indicators。Trading and risk management tools are equally important。MT4 is the industry standard and is available from different brokers, some of which also maintain the MT5 version.。Please note that some brokers offer proprietary platforms that may be superior to MT4 and MT5。

3.Spreads, commissions and leverage

Transaction costs and leverage remain important aspects for every trader to consider。The spread is the difference between the bid price and the ask price.。There are two types of spreads: fixed spreads and variable spreads.。The former does not change with market conditions, while the latter accurately reflects market conditions.。The most competitive offer is as low as 0.8 points, with the lowest spread usually applied to the most liquid currency pair, the EUR / USD。

Forex brokers with STP / ECN execution mode can get as low as 0.Original spread of 0 points, commission per lot。This is ideal for high frequency and short term traders。Some brokers every 1.0 hand charge 3.$00 or 4.00 dollars, some as high as 20.00 美元。

Many people confuse high leverage with high risk and blame account losses on high leverage, but to be honest, losses are usually the result of poor risk management, not high leverage。Nevertheless, in order to prevent traders from making the wrong leverage decisions, the European Securities and Markets Authority (ESMA) limits the available leverage of all EU brokers.。Some brokers limit the maximum leverage ratio to 1: 30, but some brokers allow a staggering ratio of up to 1: 500。

4.Account Type

The most important difference between account types is a commission-free account and a commission account, as this difference affects the cost of each transaction。Some brokers offer mini accounts where new traders with less deposits can trade mini lots, equivalent to 10,000 currency units。In comparison, the total amount of a standard hand is 100,000 currency units.。An outdated but still common method is tiered accounts, where brokers offer better conditions for more deposits。

If I live in the EU, can I trade with a UK broker?？

UK brokers with an EU client base typically have subsidiaries in the EU, usually located in Ireland, Germany, the Netherlands, France, Spain or Cyprus。They cater to EU traders by providing them with a trading environment regulated by the European Securities and Markets Authority (ESMA).。UK brokers generally no longer accept traders from EU countries at their FCA-regulated subsidiaries, but are redirected to subsidiaries in EU countries at the time of account registration.。

As a result, EU traders can trade with UK-based brokers at their EU-regulated subsidiaries, but they do not have access to the UK trading environment, which is undergoing competitive changes.。They will trade with regulated subsidiaries of UK brokers based in the EU, but the trading environment remains governed by ESMA rules and regulations.。

What is the best UK trading platform for beginners?？

Although individual requirements vary, the following list includes all the aspects that a competitive trading platform should provide:

• Regulation: FCA regulation and clean operating record over 10 years eliminates fraud and scam risk。It also ensures the separation of customer deposits from company funds, the protection of liabilities, and the Investor Compensation Fund, which ensures 100% compensation for deposits up to a maximum of £85,000.。
• Local currency accounts: sterling trading accounts are very useful, especially for spread betting accounts。There are generally dollar accounts, which are ideal for forex traders because more than 80% of trades contain dollars。
• Local payment methods: Bank wire transfers and credit / debit card deposits are widely available, including online banking。Many brokers offer Skrill and Neteller, and World Pay, Stripe and PayPal are alternatives, but not everywhere.。
• Spread size: In the most liquid trading sessions, forex traders should not pay more than 0 commission on major currency pairs..1 point, which should not exceed 0 in a commission-free pricing environment.7 points。Stock traders should be from 0.Buy blue chips from £01, up from £1.Buy FTSE 100 from 0。
• Fees: Competitive Forex Trading Commission up to 1 per.0 Standard Hand 6.$00, 0 stock commission.10%。Volume-based rebate schemes for high-volume traders should exist and will reduce final transaction fees。
• Product: Balanced foreign exchange asset selection should exceed 60 currency pairs。Stock traders should choose at least international blue chips, while exchange-traded funds help with simple, cheap diversification。
• Asset diversity: Competitive UK brokers cover multiple sectors but should include FX, equities, indices and commodities。
• Algorithmic trading support: UK brokers with proprietary trading platforms should offer API trading, while out-of-the-box alternatives such as MT4, MT5 and cTrader fully support algorithmic trading。VPS hosting enables low latency market access 24 / 5, which is an added bonus。
• Excellent order execution capabilities: Strong liquidity and cutting-edge trading infrastructure ensure that traders can execute orders at the ideal price。
• Diversified account types: The two main account types are commission-free accounts and commission accounts, with sub-accounts available.。Tax-free spread betting accounts are equally applicable and are the main option for UK traders。Some brokers offer specific account types for investors, Islamic traders, copy traders, managed account services and retirement plans。
• Demo accounts: unlimited demo accounts are useful for beginners to test trading conditions, experienced traders to test new strategies, algorithmic traders to fix trading solutions and test EAs, and to copy traders to evaluate signal providers。
• Mobile Trading: Mobile apps are great for traders who want to manage their portfolios on the go, but not for analysis and trading。
• Competitive deposits / withdrawals: While deposits are usually free, traders may have to pay withdrawal fees, including third-party payment processing fees。

Advantages and Disadvantages of UK Forex Trading

○ Advantages

• The foreign exchange market is decentralized and operates around the clock。
• The foreign exchange market is the most liquid financial market.。
• capital requirements are lower than other asset classes and therefore easier to enter。
• Support for algorithmic trading, accounting for more than 80% of daily trading volume。
• Replication trading and signaling services provide diversification opportunities。
• Provide account management and mobile trading。
• Low-cost deposit and withdrawal methods ensure frictionless financial transactions。

○ Shortcomings

• Despite the widespread existence of foreign exchange trading, lack of education can create a fundamental misunderstanding of foreign exchange trading, its requirements and possibilities。
• Insufficient trading capital and unrealistic trading expectations can lead to over-trading and other costly mistakes。
• Traders often fail to do proper risk management。
• Many traders overuse leverage。
• Problematic Forex brokers and their affiliates advertise unrealistic trading performance。
• Lack of in-depth education sometimes leads beginners to fall victim to scams and fraud。

▍ Foreign exchange tax in the UK

As currency trading grows in popularity, the two most frequently asked questions about taxation of profits from foreign exchange trading in the UK are:

"Do Forex traders pay taxes in the UK?？"

"How to avoid paying taxes on foreign exchange transactions？

While these issues are somewhat complex and depend on individual circumstances, UK traders are often subject to capital gains tax (CGT) on trading-related profits.。Personal allowance of £12,000。Any profits above this limit are taxable。Traders are responsible for reporting trading profits in their annual tax returns to the UK tax authority, HM Revenue and Customs (HMRC)。

The tax treatment of CFD / spot market trading is different from that of spread betting.。The former is taxed in two levels。People with a gross income of less than £50,000 pay 10% tax and the rest pay 20% tax, unless the Royal Inland Revenue Service considers that income related to the transaction is taxable at the personal or corporate rate.。The £12,000 allowance (£24,000 for couples) still applies。UK retail customers who trade with spread betting accounts are generally not taxed, which is why spread betting has become the main form of currency trading offered by all brokers in the UK。

○ How to avoid paying taxes on foreign exchange transactions？

UK retail customers who trade with spread betting accounts are generally not taxed on any profits, which is why spread betting has become the dominant form of trading in the UK and is offered by all UK brokers.。

Economic turmoil and the UK foreign exchange market

Increased economic turmoil since entering the new millennium has led to significant changes in the UK foreign exchange market。Some brokers filed for bankruptcy while others left the jurisdiction voluntarily as the UK's Financial Supervisory Authority (FCA) raised capital requirements to ensure financial stability.。The regulations imposed by the European Securities and Markets Authority (ESMA) have also had adverse negative impacts along with MiFID II, but Brexit could correct these effects as the UK would no longer be subject to EU rules.。The Financial Supervisory Authority will ensure that financial stability, transparency and competitiveness remain the basic drivers of the UK's financial system, which, in addition to excellent infrastructure, enjoys a favourable time zone and tax environment, and will be improved after the end of the Brexit transition period.。

Following the global financial crisis in 2008, the Swiss National Bank decoupled the Swiss franc from the euro in January 2015, which caused a ripple effect across the financial system and the end of unsustainable brokerage operations.。This has also spawned new varieties, and competition is healthier than ever.。The rise of artificial intelligence and machine learning solutions is bringing fintech companies into it, and in 2019, London replaced Silicon Valley as the world's largest technology investment center.。The UK's foreign exchange market will change further, becoming more competitive and offering more favourable options for traders around the world。

▍ More FAQs

○ What time does the UK foreign exchange market open？

The forex market is open 24 hours a day, 5 days a week, but the UK is generally open from 8: 00 am to 9: 30 am UK time.。

○ How much money can Forex traders make in the UK？

The answer to this question depends on many personal circumstances, including time, money and trading strategies.。More than 75% of retail traders will lose money, and more than 20% will earn only modest gains。

What is the best Forex trading platform in the UK?？

While this depends on individual circumstances, the best forex trading platform should support algorithmic and copy trading, have state-of-the-art trading tools, and offer low transaction fees, balanced asset selection and first-class order execution capabilities.。

Can I use MT4 in the UK?？

Yes, many UK Forex brokers still offer MT4。MetaQuotes Software, the developer of the MT4 trading platform, has officially ended its support for MT4 and is now promoting MT5.。Despite their best efforts, the MT4 market is still dominant today, and there are many options to get white-label solutions and sub-licenses from established MT4 brokers.。