How To Choose a Regulated Forex Broker in UK?

The main criteria to consider when choosing a regulated forex brokers in UK include: trading platforms, fees, mobile trading, deposits & withdrawals, assets, regulation, research & education and customer support.

Fees: Avoid brokerage accounts with high fees on trades, overnight fees and hidden fees.

Trading platforms: Look for intuitive, easy to use and fast executing forex trading platforms.

Mobile Trading: Mobile trading apps should offer the same trading tools and charts as their web versions.

Deposit & Withdrawal: Choose an broker that offers your preferred deposit and withdrawal option with low fees.

Assets: Look for the best coverage of asset classes and currency pairs. Forex broker who does not offer major currency pairs should be voided.

Regulation: Only choose tier one, DFSA regulated forex brokers.

Research & education: Beginner and average forex traders and investors should choose a broker with research and education tools including: weekly webinars, daily news updates, personal account manager, personal training and room access.

Customer support: Beginner forex traders should look out for responsive and professional customer support available in their language.

Islamic Accounts: All of the brokers from our list of the best forex brokers in UK offer an islamic account option. This gives the user to trade forex in compliance to the Sharia law.

Forex Trading in UK

Forex trading and spread betting are very popular in the UK. There are many online brokers and forex trading platforms available to UK residents. Tax regulation for traders and investors is ambiguous and comes with many benefits. Gains made with spread betting or CFD trading is not taxed. The first £1,000 yearly forex trading profits are tax-free, whilst the rest of your forex trading profits are taxed at a 10% capital gains tax if you are a basic-rate taxpayer or 20% if you are a higher-rate taxpayer.

The UK financial markets are regulated by the FCA and are easy to join as a beginner. Traders and investors are protected by the Financial Services Compensation Scheme. This scheme covers the back of UK traders and investors up to £20,000 in case of the broker going bankrupt. UK citizens can use offshore brokerage services to trade forex with higher leverage and trade financial instruments not offered by United Kingdom-based brokers like some digital coins and options.

Forex Trading Regulation in UK

The Financial Conduct Authority is the main financial regulatory body in UK. It protects consumers, keeps the industry stable, and prevents insider trading and other sorts of investment fraud. Founded in 2013 as an independent organisation it oversees the whole UK financial market. Brokers who offer trading and investment services to UK citizens have to apply for a license with them. Companies must comply with strict AML and ATF laws and pay a yearly membership fee to the FCA to obtain a license.

How to Check Authorisation

You can verify the validity of a forex broker license in the United Kingdom by going to the official website of the Financial Conduct Authority and checking the Financial Services Register for the name of the broker you want to trade or invest with. If its name doesn’t show up in the database, the broker or trading platform is unlicensed and we don’t recommend trading with them. You will be better off trading with one of the best forex brokers in UK mentioned in this guide.

Whenever a forex broker is based abroad, you can check the validity of their license by going to the official websites of international regulators including, but not limited to the ASIC, CySEC, BaFIN, and FCA, and checking their Registered Entities listings.