What is the best forex trading platform for beginners in the U.K.?

IG stands out for beginners in the U.K. The broker is a leader when it comes to education, thanks to the ease of use across its flagship platform. Beginners also benefit from IG Academy, a dedicated mobile app with educational resources; content from DailyFX, a blog-style news site; and access to IG Community, a social network resembling an advanced forum.

Is forex trading legal in the U.K.?

Yes, forex trading is legal in the U.K. provided that it is offered by a broker that is properly authorized and regulated by the FCA — a requirement that will also protect you from dealing with a scam broker. That’s why it is critical to only use a trusted forex broker that holds a valid regulatory status with the FCA. When checking a broker that holds a valid license in the U.K. on the FCA website, you can see the type of clients that it can work with (such as retail or professional) and the types of investments the broker can provide, such as: Contract for differences Rights to or interests in investments (Contractually Based Investments) Rights to or interests in investments (Security) Rolling spot forex contract Shares Spread bet

Can I trade with a U.K. forex broker if I reside in the EU?

U.K. forex brokers that are also regulated in the EU can accept you as an EU client through their EU entity. Since the U.K. has left the European Union, passporting is no longer supported from the U.K. (except to Gibraltar). Therefore, If you reside outside of the U.K., your broker may also need to be regulated in your country of residence. To check which brokers accept clients from your country of residence, use our forex brokers international search tool.

Do UK forex brokers need to be authorized by the FCA?

Yes, U.K. forex brokers must be licensed and regulated by the Financial Conduct Authority (FCA) and authorized to deal in investments as agent and/or as principal. The type of investments that FCA-regulated forex brokers can offer clients can also vary depending on their specific authorization from the FCA. That might include rolling spot forex contracts, CFDs, shares, futures, options, spread bets, and other instruments. A benefit of dealing with a regulated broker in the U.K. is that as a retail client, you are eligible for up to £85,000 in compensation in the extraordinary event of your broker’s insolvency, thanks to the Financial Services Compensation Scheme, or FSCS.

Do you pay tax on forex trading in the UK?

Yes, gains from forex trading are subject to capital gains tax in the U.K., with certain exceptions including whether you are trading forex as a CFD, rolling spot contract or spread bet. If you are resident of the U.K., you will need to report your capital gains trading income or losses from rolling spot forex and CFD trades. The exception is if you are trading forex as a spread bet, which is exempt from capital gains tax as it is more akin to gambling in terms of its tax treatment. In addition, other factors, such as whether you trade full time and the amount of any gains/losses, may affect your potential tax obligation. It’s important to note that unrealized gains are not taxed until the trade is closed. While some traders may opt to do a self-assessment when calculating taxes, if you are not sure it is best to find a qualified accountant such as an ACCA certified or ICAEW chartered accountant.

Can you use MetaTrader 4 in the U.K.?

Yes, there are numerous FCA-regulated forex brokers in the U.K. that offer the MetaTrader platform suite, including MetaTrader 4 (MT4) and MetaTrader 5 (MT5) for desktop, web and mobile. Compare MetaTrader brokers For example, you can use MT4 with any of the following U.K. brokers: IG, Saxo Bank, CMC Markets, City Index, XTB, FOREX.com, Swissquote, FXCM, Pepperstone, Tickmill, FxPro, Vantage FX, HYCM, Eightcap and XM Group, all of which hold regulatory status with the FCA either directly or through their parent company. Some of these brokers also offer MetaTrader 5.

Best Forex Brokers in the UK for April 2024

Written by Steven Hatzakis
Edited by Carolyn Kimball
Fact-checked by Dayana Yochim
Reviewed by Blain Reinkensmeyer

April 03, 2024

London accounts for more foreign exchange, or forex, trading volume than anywhere else in the world, so if you’re looking for a forex broker in the U.K., you’re in good company.

Before choosing any U.K. forex broker you must ensure it’s properly regulated by the Financial Conduct Authority, or FCA, by verifying its registration number on the FCA website. I tested more than 20 of the most regulated brokers globally for this guide, which ranks the all-around top U.K. forex trading platforms for beginners, intermediate and even advanced traders.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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