The Best UK Forex Brokers

Do you live in the United Kingdom or are you from a part of the world which automatically disqualifies you from doing forex business with brokers Japan, Australia or the US? If you want access to top notch brokerage services from a jurisdiction known for strict regulation and enforcement of world-class brokerage standards, then you should consider working with UK forex brokers.

Who are UK forex brokers? These are brokers that are located in the United Kingdom and licensed to conduct forex brokerage business by the UK brokers’ watchdog, the Financial Conduct Authority (FCA). The FCA and its predecessor (FSA) have been known to set a standard when it comes to regulation of forex brokers. These standards were tested to the hilt when UK financial brokerage Alpari went insolvent as a result of losses sustained from slippage when the Swiss National Bank de-pegged the Swiss Franc from the Euro. Measures initiated to protect the capital of investors kicked in and ensured that investors did not lose any money from that sudden, catastrophic event.

UK Forex Brokers: What Are the Benefits?

The benefits accruable to users of UK forex brokers are immense. All UK forex brokers must be licensed and regulated by the Financial Conduct Authority (FCA). The FCA has clear-cut guidelines that UK forex brokers must operate by, all in the interest of market players and to ensure the sanctity of markets. Some of the measures that UK forex brokers must comply with are as follows:

A) Clients’ Funds Are Segregated

All money deposited by clients of UK forex brokers are expected to be lodged in dedicated accounts used solely as a depository for account trading capital of clients. This account must separate from the bank accounts used by the brokers for everyday operations. Protection of clients’ funds in case of brokerage insolvency is the driving force behind this policy and the liquidation of Alpari UK was a case which put this regulatory requirement to the test, with successful outcomes. So if you put your money with a UK forex broker, you can be sure that your funds are protected and cannot be used by the UK forex broker to bost their asset base oin the remote possibility of insolvency of the brokerage.

B) Financial Services Compensation Scheme (FSCS)

The FSCS is a special compensation fund setup by UK forex brokers to provide for compensation of their clients to a 50,000 GBP maximum if such clients lose money as a result of broker malpractice or other broker-related loss. All UK forex brokers must contribute to this scheme. If you trade with a UK forex broker, you will be entitled to this protection. Trading with brokers outside of the UK does not afford such protection. This is one of the major benefits that the FCA has been able to deliver to clients of UK forex brokers.

C) Financial Services Register

The FCA lists all UK forex brokers that it regulates in its Financial Services Register. This is a record that provides the details of brokerage firms, individuals and entities that are regulated by both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). It also displays information on companies that were previously licensed by the Financial Services Authority, but who had opted out of being licensed by the FCA or had their licenses revoked. This register can therefore be referred to as an online database of licensed brokers that enables clients to conduct a quick search to see if the brokerage that they intend to use is in good standing or not, or whether the entity is exempt from licensing. The register can be accessed from a specific webpage of the Financial Conduct Authority’s web portal.

D) Capital Adequacy Requirements

What is capital adequacy? Capital adequacy refers to a principle guiding financial institutions such as banks and financial market brokerages. Capital adequacy refers to the possession of a ratio of capital relative to amount and commercial risk assumed by their businesses, sufficient enough to enable them fulfill their financial obligations to clients even in the event of a sudden depreciation of the value of their assets. The FCA Handbook, which is published by the Financial Conduct Authority, provides a detailed information guide on the capital adequacy requirements for UK forex brokerages.

Every brokerage that is FCA regulated (i.e. every UK forex broker) must have a minimum capital base in order to be given an operating license. Brokerages work like banks. Every client does not place withdrawal requests at the same time, but there will be occasions when there are lots of withdrawal demands that are made on the brokerage. Capital adequacy requirements ensure that in the event that this happens, the UK forex brokerage must have the capacity to handle all withdrawal requests without being tilted to the edge of insolvency.

New capital adequacy rules were issued by the FCA in 2015, with full implementation kicking off in June 2016.

Conclusion

In terms of consumer protection, the FCA has put in place a lot of measures to ensure that traders can be assured of safety of their funds when trading with UK forex brokers. This has ensured that the UK is one of the safest places to do forex business. Regulation in the UK has been done in a pattern which protects the consumer without unduly stifling the market with excessive regulation. This is why when compared to the US, the UK still remains a preferred location for many overseas brokers wishing to gain a firm presence in the UK market.

We have a list of UK forex brokers that you can work with. Here is a list of our UK forex brokers:

RANK
Broker
MINIMUM DEPOSIT
BONUS
Avg Spread
Pros
RATING
MORE INFO
Min Deposit :
$250
20%-40% up to £5,000 Bonus!
Avg Spread :
N/A
  • Unregulated
  • Big Payouts (95%)
  • Unique Trading Tools
9.8/10
Min Deposit :
$100
N/A
Avg Spread :
0.5pips
  • Mobile trading
  • Social Trading Allowed
  • Regulated Broker
9.3/10
Min Deposit :
$100
No bonuses awarded
Avg Spread :
0.5pips
  • Regulated Broker
  • Mobile Trading
  • Wide Asset Range
9/10
4
Min Deposit :
$250
N/A
Avg Spread :
N/A
  • Mobile Trading Available
  • Regulated Broker
  • Good Track Record
9/10
5
Min Deposit :
$1000
N/A
Avg Spread :
N/A
  • Free Software
  • Highly Accurate Signals
  • Uses Sound Indicators
9/10
6
Min Deposit :
$100
N/A
Avg Spread :
0.5pips
  • Mobile trading
  • Regulated Broker
  • Robust Forex Education
8.8/10
7
Min Deposit :
$200
This promotion is valid for new and existing clients on their first deposit during the promotion period only
Avg Spread :
1 pip
  • Automated Trading
  • Well Regulated
  • Mobile Trading
8.8/10
8
Min Deposit :
$500
N/A
Avg Spread :
0.5 pips
  • Proprietary platform
  • Regulated Broker
  • Numerous Assets to Trade
8.5/10
9
Min Deposit :
$250
No-deposit bonus
Avg Spread :
0.5pips
  • Regulated Broker
  • Mobile Trading
  • Compendium of forex training tools
8.2/10
10
Min Deposit :
$500
No-deposit bonus
Avg Spread :
0.5pips
  • Multiple regulation and licensing
  • Mobile trading
8/10
11
Min Deposit :
$10
Deposit $1200 minimum for a 100% bonus
Avg Spread :
0.4pips
  • Mobile Trading
  • MT4 platform with robot trading capacity
8/10
12
Min Deposit :
$100
N/A
Avg Spread :
N/A
  • Downloadable Platform
  • Mobile Trading Available
  • Multiple Trade Types
7.5/10
13
Min Deposit :
$250
N/A
Avg Spread :
N/A
  • Automated trading
  • Easy to use
6.5/10
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