Are you a FX trader based in the UK? Here is our UK Forex Brokers Review. Choosing a suitable Forex broker is one of the trickiest parts of setting up a bountiful trading system. There’s absolutely hundreds – if not even thousands – of services to choose between, and where they are actually based is more important than most people give credit for. The UK has the advantage of being one of the most tightly regulated financial markets on the planet, and gives short shrift to fraudulent scams. It’s pretty safe to say that any trading site based and registered in the UK is going to be the real deal. Sure some are better than others, and choosing a suitable service is still not a decision to be taken lightly, but there’s sure to be a quality UK Forex broker for any kind of trader.
In this article we’ll take a close look into the best way to identify a quality UK based Forex trading service, as well as point out the key reasons why these are some of the best sites in the business.
UK Forex Brokers Review – How To Chose The Best UK Forex Brokers
It’s no secret that there’s plenty of scams out there that intending to abscond with any funds entrusted to their care. Unfortunately should a trader fall victim to a scam broker there’s very little they can usually do to try and reclaim their money. Primarily this is because scams are totally unregulated and usually based in countries with very lax financial regulations. Even in the unlikely event a trader can identify the crooks behind the scam, enforcing legal action or reclaiming funds if usually next to impossible.
The good news is that all UK based Forex brokers fall under the watch of the FCA (Financial Conduct Authority). This body isn’t directly linked to the government, but is a self-funded body that serves as the industry ‘watchdog’ and has very serious powers. Should a service be identified as fraudulent they can permanently shut it down and prosecute those behind the scam. Central to these powers is ensuring that all financial services adhere to very strict rules concerning marketing and general conduct, and those who fail to comply will be blacklisted.
This regulation means that any Forex trading site that is based/registered in the UK is going to be one of the most reliable and transparent to be found anywhere. All legitimate sites that comply to these rules will provide documentation on their websites explaining that they are fully compliant with these rules. Those that don’t are likely not even based in the UK, but simply masquerade as if they are in order to lure in more victims. Remember that it’s also seriously frowned upon to speculate on precise earnings – so any UK based Forex site assuring a set and stable return is likely a fraud. Every legitimate UK based trading site will have a unique company number and registration number, both of which can easily be checked with a simple online search.
Choosing The Best UK Forex Brokers
Don’t believe that just because a broker is authentic and listed in the UK means that it’s automatically a great service. There’s both very good and very bad brokers out there, and it’s essential to perform plenty of research before committing to a particular product.
A good broker will offer plenty of different currency pairs to trade between. Some investors have done very well recently thanks to the instability of the GBP, especially when compared to a solid USD. Over the last several months the Pound has lost nearly 25% of it’s value in this market, providing staggering return for those who invested sagely at the right time.
As for how much can be traded at a time, the UK is also very friendly to large scale trades. Generally speaking the typical leverage on offer can run as high as £100k – but of course always be aware that there’s also substantial risk as well as potential profits at stake. This is why the very reasonable UK laws regarding market spread are equally useful, as they allow traders to hold multiple accounts with numerous different service providers. It’s not unusual for successful brokers to perform insurance copy trading with multiple accounts in order to mitigate against risk.
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UK FX Brokers – Look Out For Great Bonuses & Customer Service
One of the standout reasons why UK Forex traders are so popular with international clients is that usually they offer some fantastic sign-up bonuses. This can provide new traders with a very substantial boost to their initial trading and some even offer repeat bonuses providing their clients meet minimum trading rules.
Look out for brokers who offer not just mobile apps but also web based trading. There’s not just automatic trading services out there, often some of the best incorporate a great amount of manual options too. Generally speaking these are going to the be the most reliable and powerful trading platforms, but it’s always important to do plenty of research and ideally practice trading before getting started. Keep an eye out for brokers that provide plenty of unique educational resources – the more the merrier. While trading is at heart a competitive pursuit, it’s surprising how extensive community forums and expert advice can be on the better sites.
As for customer service it’s sensible not to rely upon any UK broker that doesn’t offer a variety of contact means. 99% of the time any service that only offers email ‘support’ will be a scam. Always look out for telephone, email and live online support options as a bare minimum – and of course search online for recent reviews from current customers. Thanks to the aforementioned FCA those sites which don’t make the grade will usually not last long before being shut down, but always check out other people’s opinions before making any financial commitment.
International Regulation Still Matters
Plenty of the best UK hosted brokers will have multiple registrations with international regulatory authorities. Any EU citizen will be covered (for now) by the FCA’s partnership with the European MiFID but that’s not to suggest that citizens from outside of this trading area aren’t covered either. The best brokers will usually have multiple registrations that can span from North America to the Caribbean and Australasia. Traders from these territories are advised to look for brokers that possess this standard of documentation.
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Conclusion – Always go with Regulated FX Brokers in the UK
For the vast majority of people the UK is pretty much as steady and reliable as it gets when it comes to reliable and reputable Forex trading. Providing care is taken to research the quality and performance of the service, it’s quite difficult to go that far wrong. As outlined during this article just take care to ensure that all documentation is genuine and up to date, and look out for those services which offer maximum leverage, water tight regulation and favorable reviews across a number of currency pairs. Just because the broker may be based in the UK doesn’t mean that traders have to use the GBP. The best brokers will accommodate a variety of international markets and currency pairs.
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