Forex Broker UK 2020 Comparison

Forex brokers in the UK are regulated by the Financial Conduct Authority (FCA) with the best UK forex brokers having low spreads and commissions, the choice of forex trading platform from MT4 to cTrader, fast execution speeds, range of CFDs markets and strong customer service.

Compare the best forex brokers UK based on these features below.

By Justin Grossbard / Updated: Friday, February 14th, 2020

Forex Brokers In UK

Top 8 UK Forex BrokersTop Forex Brokers UK By Category

The best forex brokers in the UK were determined by comparing FCA regulated forex brokers based on fees, platforms and customer service. Below lists the best UK forex brokers for each category. This limits CFDs retail investor account leverage to 30:1 when forex trading

The Best FCA Registered Forex Broker UK List

The Top 10 UK forex brokers shown below are regulated by the Financial Conduct Authority (FCA). This is the regulator of the United Kingdom and their website show a list of firms (from Banks, Institutions to CFDs providers). These firms are also covered under the FSCS for events such as insolvency issues. More details about conditions of FCA regulated brokers can be viewed at the bottom of this page.

1) Lowest Spread Forex Broker = Pepperstone

Most forex brokers have two account types which impact brokerage. The first account type is a spread only account (non-commission trading account). Many fx brokers who only offer this account are ‘market makers’ and set the buy/sell prices of the forex pairs. The positive of this account type is that its straightforward when forex trading with brokerage priced into the trading. The option is a spread + commission CFDs account type offered by ECN forex brokers. Prices (spreads) with these accounts are set by banks and institutions (ECN) so rather the main brokerage source for the UK broker is the commission based on volume.

Pepperstone Razor Account Type

Pepperstone ‘Razor’ account is the best spread + commission forex trading account with:

  • Spreads from 0.0 pips for currency pairs such as EUR/USD
  • Commission from GBP4.59 round-turn 100k*
  • Active traders program further lowering commission
  • Price improvement (PPI) technology
  • Low slippage thanks to fast execution speeds

UK Spread Comparison

Below compares the spreads of the most popular currency pairs traded by United Kindom forex traders. It shows the average spreads for most forex pairs with Pepperstone are lower than other CFDs brokers in the UK. The EUR/USD (in particular was 0.16) when last measured for their Razor account which is considered an ECN broker rate.

Average Spreads
(21/02/2019)
EUR/USDUSD/JPYAUD/USDGBP/USD
Pepperstone0.16*0.25*0.27*0.49*
London Capital Group0.200.300.400,60
Price Markets0.200.200,600.80
IG Markets0.263*0.293*0.512*0.992*
XTB0.300.500.500.60
AxiTrader0.44*0.62*0.42*0.85*
CMC Markets0.8050.8790.7512.793

UK Comparison Of Broker Commission

The second brokerage charge of low spread retail investor accounts are commission rates. This is a flat rate charged based on the volume traded. The rates shown below are per lot which is 100,000 base currency traded. This can be multiplied by two for a round turn (when a currency is traded back to the base currency). So for example from GBP to USD and back to GBP. Overall, as shown below the Pepperstone Razor account £2.29 is the best rate offered by FCA regulated forex brokers.

FX Per Lot Commission From:MetaTrader 4Propriety Broker
Pepperstone2.29 GBPN/A
London Capital Group10 USD4.50 USD
Price Markets3.5 USD3.5 USD
IG (DMA Account)N/A6.00 USD
XTB3.00 GBP3.00 GBP
AxiTrader$7 USD per lotN/A

Additional Fee Benefits Of Pepperstone

Pepperstone Price Improvement TechnologyPepperstone offers price improvement technology inbuilt into its ecosystem. While this doesn’t impact the spreads and commissions, it does impact the final price the order is filled. This could then be considered part of the brokerage charge for a CFD broker. It works in three steps:

  1. A trader places a trade
  2. The market moves favourably (between placement and execution)
  3. Pepperstone works to fill the price at the improved price

Another factor impacting the final price is slippage. This occurs when an fx broker execution speed is slow which means the price displayed is not the price executed. While no ECN broker can guarantee no slippage having the best technology and systems are a way to overcome this. Pepperstone has partnered with Equinix who have servers in New York (next to Wall Street) for MetaTrader 4 + 5 traders. Equinix also has servers in London for cTrader forex traders. These state of the art servers and close proximity to trading hubs is why Pepperstone has the fastest execution speeds leading to some of the lowest slippage rates of the brokers in the UK.

UK Spreads+ Commission Fee Conclusion

A comparison of FX brokers in the UK that offers spread plus commission accounts (ECN broker style accounts) shows the Pepperstone has the lowest brokerage. This is across both the spreads and the commissions charged. In addition, there is an active trader program that can lead to a further 15% commission rebate. For these key factors, Pepperstone is recommended for forex traders looking to minimise their CFDs trading fees.

Review Of Pepperstone
REGULATED BY
  • asic
  • fca

Pepperstone

Pepperstone has won awards globally for their low spreads (starting from 0.0 pips for EUR/USD), low latency speeds due to a superior technology setup with Equinix and their customer support. The CFD provider offers a further commission rebate for high volumes traders which is why experienced UK forex traders have grown the fx brokers market-share in the United Kingdom.

MIN. AMOUNT
GBP £200
MIN. SPREADS
0.0 pips (Razor)
MAX. LEVERAGE
1:30 Retail / 500:1 Pro
OUR BROKER RATING
9.17
  • Account Types
    Standard, Razor (MT4/MT5), Razor (cTrader),
  • Commission (per 100k side trip)
    From GBP$2.295
  • Trade Sizes
    Mini-lots, Micro-lots, Standard-lots
  • Trading Instruments
    Commodities, Gold, Silver, Metals, Oil, Equity Indices, Cryptocurrency, Shares CFD, Currency Index
  • Trading Platforms
    MetaTrader 4, MetaTrader 5, cTrader
  • Deposit Methods
    Visa, MasterCard, Bank Transfer
  • Funding Costs
    $0 (except bank wire GBP£15 min withdrawal £80)
  • UK Regulation
    FCA 684312
  • Customer Support
    24/5- Live chat, Phone, eMail
  • Education
    Available
  • Risk Management
    Standard risk features
  • Bonus Offers
    Refer a Friend, Active Trader Rebates
  • Trustpilot Reviews
    4.6 - ‎512 reviews
details


Our Rating

The overall rating is based on review by our experts

9.17
Spreads
10 / 10
Leverage
10 / 10
Trading Platform
10 / 10
Risk Management
7 / 10
Range of Markets
8 / 10
Customer Service
10 / 10

UK Forex Broker FAQs

UK brokers charge both spreads and commissions. Spreads are the difference between the ‘buy’ and ‘sell’ price of a currency pair such as GBP/USD. A commission is a set fee based on the volume traded when currency trading.

Beginner forex traders often choose a spread only retail CFD accounts which have no commissions but the spreads are widened so the broker makes money. View our Swissquote review to see the lowest fee spread only account.

More advanced forex traders prefer a spread and commission account which in most cases will lead to lower charges compared to a ‘spread only’ account. View our Pepperstone review which has the lowest fee account.

There are other charges some UK foreign exchange brokers charge that includes overnight fee charges (for longer-term positions held), forex platform premium features, deposit and withdrawal charges. These vary by the UK online broker selected.

If you’re a UK resident selecting a forex broker you should following the following checklist:

  • Is the broker UK regulated (Financial Conduct Authority)?
  • What fees does the broker charge (spreads and commissions)?
  • What UK forex trading platform options exist (eg MetaTrader 4)?
  • What is the minimum deposit of the broker?
  • What leverage does the broker offer (professional vs retail investor accounts)?
  • What level of customer service does the fx provider offer?

Most FCA regulated brokers don’t offer sign-up bonuses and gimmicks and rather focus on customer service, low fees and a solid forex trading experience. All forex brokers offer a free demo account to test their platform and features while Pepperstone offers a discount on their brokerage for the initial trades.

Overall, it’s recommended to think long-term when choosing a broker rather than basing a decision on a short-term forex broker bonus.

No UK forex broker offers a true ECN trading account due to a number of factors. Rather, several brokers offer spread + commission accounts offering spreads similar to an ECN STP environment from 0.0 pips with no dealing desk.

The best forex account with the lowest spreads (ECN style spreads) is Pepperstone. The EUR/USD average spread is just 0.16 and commission is 2.29 GBP per lot. View the full UK Pepperstone review to learn more.

The FCA (Financial Conduct Authority) sets limits on CFD trading for retail accounts of up to 30:1. All UK CFDs providers meet this restriction with the only exception if the individual qualifies for a professional account. To qualify there are a number of requirements from your trading experience to cash deposits.

FCA Forex BrokersFinancial Conduct Authority (FCA) Regulation

The FCA (Financial Conduct Authority) is the regulator for CFD providers in the UK. This was formally the FSA (Financial Services Authority).

All the forex brokers UK shown on this page are regulated by the FCA with benefits for UK residences including:

  • Client accounts (deposits) are segregated from the brokers
  • The requirement to resolve customer complaints through a structured process
  • The ability to claim through the FSCS if insolvency issues exist

A regulated broker also has requirements set by the FCA from marketing and advertising restrictions to the requirement to submit audited reports. Other locations to view FCA regulated broker is on the UK forex trading platforms page or the best forex brokers UK section which goes through the top forex brokers in more detail.

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