UK Forex Brokers are Forex brokers that are both regulated by the FCA and have an established physical presence in the United Kingdom. However, choosing which of the UK Forex brokers are the best to trade with is not an easy task or a decision to make. The best option for a trader based in the UK is to look for a Forex broker who is regulated by the UK regulatory authorities. In the UK, the relevant regulatory financial authority for the Forex trading industry is the Financial Conduct Authority (FCA). The FCA is an independent body from the UK’s government. It is financed by the membership fees collected from the members that it oversights.

Furthermore, traders in the UK can trade a variety of financial instruments, including stocks and CFDs, on the spot, or enjoy products like spread betting which is tax free.

With the FCA on constant alert and regulations, UK Forex brokers are considered to be more dependable than financial service providers that are in other regions, even in Europe. FX brokers that are located in the United Kingdom are renowned for its safety in investments, not to mention the works of the FCA is far too superior for any fraudulent activity to take place. The FCA is concerned with the welfare of the British economy, but it also highlights on its efforts on establishing a long lasting transparent financial markets that permits investors and traders to gain the maximum potential of the markets, with no obstacles. This is why UK FX brokers are considered superior in the financial services provider industry.

Below is a UK Forex brokers list for you to compare and choose from.

  UK Forex Brokers List

 

Broker
Description
Trade Now
Octafx
OctaFX
Regulation: CySec
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.4 pips

Review


FP Markets
FP Markets

Regulation: ASIC, CySEC
Min. Deposit: $/€/£ 100
Leverage: 1:500
Spreads: Ultra Tight from 0.0 pips

Review


NSBroker
NSBroker
Regulation: MSFA, BaFin, FCA,
Min. Deposit: $250
Leverage: 1:100
Spreads: Low as 1.2 pips

Review
XM
XM
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 5
Leverage: 1:500
Spreads: Low as 0.1 pips

Review
Avatrade
Avatrade
Regulation: ASIC,JFSA,FSCA
Min. Deposit: $/€/£ 250
Leverage: 1:400
Spreads: Floating from 1 pip

Review


IC Markets
IC Markets
Regulation: ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:500
Spreads: Low as 0.0 pips

Review


Etoro
Etoro
Regulation: CySEC,FCA,ASIC
Min. Deposit: $/€/£ 200
Leverage: 1:30
Spreads: Variable

Review

XTB
XTB
Regulation: FCA
Min. Deposit: $/€/£ 250
Leverage: 1:30
Spreads: Low as 0.1 pips

Review


IQOption
IQOption


Regulation: CySec
Min. Deposit: $/€/£ 10
Leverage: 1:1000
Spreads: Floating from 1 pip

Review


OlympTrade
OlympTrade
Regulation: IFC
Min. Deposit: $/€/£ 10
Leverage: 1:500
Spreads: Low as 0.0 pips

Review
Globex360
GlobeX360
Regulation: FSCA
Min. Deposit: No min Deposit
Leverage: 1:500
Spreads: Low as 1.6 pips

Review

 

UK Forex Brokers Regulatory Requirements

A UK Forex Broker under the FCA’s jurisdiction and regulation is required to show a minimum of one million pounds in operating capital and this number increases as the number of traders increases.

With the Financial Conduct Authority, there are many regulations that must be followed, four cornerstones that allow brokers to be regulated and registered by them. The first regulation requirement is brokers have to process all withdrawal requests instantaneously and efficiently. This means that all withdrawal requests must be accepted and registered into the database of the broker, without delay. A delay in the withdrawal request means that there is an issue with the client’s funds, and that defies the direct order of the FCA’s protection of funds. In order to be regulated by the FCA, UK Forex brokers must be able to process all withdrawal requests without delay, or mediation.

The second regulation requirement is that brokers must submit annually audited reports to the FCA for inspection and evaluation. This is a form of monitoring and evaluation for the FCA, so they will be able to track the footsteps of each broker they insure. The annual audit is a comprehensive overview of the broker’s movements and actions throughout the whole fiscal year. With UK Forex brokers, this allows the FCA to detect any suspicious and unlawful activity that could have taken place in the previous year. Many brokers have used the audit as a form of transparency between the financial services provider and the watchdog, along with their clients as well.

The third and final regulation requirement is that brokers must submit periodic financial statements of capital assets to ensure that the broker is in compliance and in accordance of its capital adequacy ratio. These financial statements are another form of transparency, for the Financial Conduct Authority to monitor whether the broker is compliant and acts accordingly to the regulations that are provided. Many UK Forex brokers under the FCA jurisdiction must be able to show that they are abiding by the rules, especially with the capital adequacy ratio. This specific aspect defines whether the broker is operating under false or sincere pretences with their traders.

In order to continue being regulated by the FCA, UK FX brokers must be able to comply with the three regulation requirements, at least.

By trading with a regulated broker under the FCA, you also have the benefit of protection of your trading funds under the FSCS (Financial Services Compensation Scheme). All FCA regulated, UK Forex brokers are required to be a member of the FSCS. The aim of this scheme is to compensate traders of the loss of the money, in the event the broker runs into insolvency issues. Under the FSCS, traders are guaranteed protection up to a maximum amount of £50,000. In the event of liquidation, traders will receive 100% of their money up to £30,000. Above £30,000, they will get to receive a maximum of 90%.

UK Forex Brokers and its Benefits

UK Forex brokers provides different types of Forex products, including Forex trading, binary options trading, and spread betting. As a caution, it should be made known that spread betting and binary options trading are considered to be unlawful activity in various areas of the world. In certain countries, spread betting and binary options can lead to severe convictions. Forex trading is seen as a much safer alternative to spread betting and binary options trading.

Despite the legal aspects of these trading products, selecting a trading instrument depends on the amount of risk you are willing to take as a trader. With regarding to the safest trading market, UK Forex brokers can offer the most suitable product according to your specific requirements. They are considered to be the safest option for Forex traders, and make it easier for traders to deal with their funds in a safe way.

One of the main benefits that come with UK Forex brokers is the financial security that comes with it. The Financial Conduct Authority has comprehensive rules and regulatory guidelines that compel brokers into protecting the trading and private funds of the traders. The Financial Services Compensation Scheme permits the FCA to assert confidence in regards to the security of a shareholder’s trading funds if the insolvency of a broker takes place.

Another major benefit of the UK Forex brokers is that they keep their execution funds away from the client’s funds, which means that the client’s trading funds, are put in segregated accounts. This makes it impossible for a broker to misuse or misplace a client’s funds for their Forex operations. UK Forex brokers would be able to offer you quality levels of safety and security for your trading funds and personal information.

Conclusion

In conclusion, UK Forex brokers are considered one of the safest brokers in the world. They provide traders with the utmost safety and security for their trading funds and personal information, which are kept in segregated accounts and private databases. They are also registered under and regulated by the official UK regulatory agency, the Financial Conduct Authority (FCA). This financial entity requires many precautions to keep traders safe from any misconduct or illegal activity, ensure the compliance of the broker registered to them.

In addition, all UK Forex brokers that are under the Financial Conduct Authority’s (FCA) jurisdiction are required to achieve the following regulation requirements, or they will be otherwise considered unregulated by the United Kingdom financial watchdog:

  • To process all withdrawal requests instantaneously and efficiently
  • To submit annually audited reports to the FCA for inspection and evaluation
  • To submit periodic financial statements of capital assets to ensure that the broker is in compliance and in accordance of its capital adequacy ratio

Many UK Forex brokers exist around the world, such as IC Markets, eToro, IQ Options, and many others. They are in accordance with the laws and regulations that are applied by the FCA and the FSCS, making them completely reliable, safe for large and small investments, and scam-free. However, deciding which of these brokers are suitable for you depend on the preference of one’s trading characteristics; it’s entirely up to you.