To help select a good beginner forex broker in the UK, our team has compared the top CFD providers based on trading fees, customer support, trade speeds and the best forex trading platforms suitable for UK beginner forex traders.
Our forex comparisons and broker reviews are reader supported and we may receive payment when you click on a link to a partner site.
The best forex trading platforms in the UK for beginner traders are the following.
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | Read Full Review |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Read review ›
|
81 |
FCA CIRO |
0.6 | 0.9 | 0.7 | - | - | - | - |
|
|
|
- | $0 | 70+ | 4+ |
|
||
Read review ›
|
98 |
FCA CySEC |
1.12 | 1.69 | 1.22 | 0.1 | 0.6 | 0.3 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
Read review ›
|
43 |
FCA CySEC |
1.0 | 2.0 | 1.0 | - | - | - | - |
|
|
|
130ms | $200 (Australia), $50-$100 (EU) | 49+ | 46+ | 30:1 | 400:1 |
|
Read review ›
|
57 |
FCA CySEC |
1.70 | 2.3 | 1.4 | - | - | - | - |
|
|
|
140ms | $100 | 71+ | 15+ | 30:1 | 300:1 |
|
Read review ›
|
46 |
FCA CySEC, BaFin |
0.9 | 1.4 | 1.3 | 0.9 | 0.14 | 0.13 | - |
|
|
|
160ms | $250 | 49+ | 16+ | 30:1 | 500:1 |
|
Read review ›
|
70 |
FCA BaFin, CySEC |
1.3 | 1.4 | 1.7 | 0.30 | 0.90 | 0.40 | $3.00 |
|
|
|
150ms | $300 | 42+ | 7+ | 30:1 | 500:1 |
|
Read review ›
|
69 |
FCA BaFin |
1.12 | 1.30 | 1.64 | 0.5 | 0.9 | 0.6 | $2.50 |
|
|
|
138ms | $0 | 338+ | 19+ | 30:1 | 500:1 |
|
Read review ›
|
61 |
FCA CySEC |
1.32 | 1.7 | 1.95 | 0.32 | 0.37 | 0.51 | $3.50 |
|
|
|
151ms | $0 | 69+ | 30+ | 30:1 | 200:1 |
|
Read review ›
|
66 |
FCA ASIC, MAS |
0.70 | 1.1 | 2.2 | - | - | - | - |
|
|
|
95ms | $150 | 84+ | 25+ | 30:1 | 500:1 |
|
Read review ›
|
58 |
FCA CySEC, FSCA |
1.6 | 1.6 | 1.9 | - | - | - | - |
|
|
|
150ms | $100 | 54+ | 24+ | 30:1 | 300:1 |
|
Our team created the best forex brokers UK list for general traders in the United Kingdom, but what about those new to trading? For beginner forex traders, we re-weighted some criteria, such as ease-of-use of the trading platforms offered, the broker’s demo account features, education, and customer service levels provided. We’ve narrowed down our choices to the following list of brokers.
Forex Panel Score
Average Spread
EUR/USD = 0.6
GBP/USD = 0.9
AUD/USD = 0.7
Trading Platforms
MT4, TradingView,
Oanda Web (fxTrade)
Minimum Deposit
$0
Why We Recommend OANDA
We highly recommend OANDA as a top choice for beginner traders in the UK. Having personally utilised their services, we can vouch for their robust regulation by esteemed authorities like the MAS, ASIC, and, notably, the FCA. Newcomers will appreciate the comprehensive charting and trading tools available on their MetaTrader 4 platform. Furthermore, the ability to craft automated trading strategies is a significant advantage for those starting their trading journey.
Pros & Cons
Broker Details
OANDA’s proprietary trading platform, Oanda Trade, allows investors to trade CFDs derived from asset classes such as indices, commodities, and bonds in addition to forex.
The web trader platform is easy to use and provides analysis tools, including 100+ drawing tools and technical indicators. To supplement any technical analysis conducted, you can keep updated with real-time forex industry news on the web-based platform.
An advantage beginner traders gain when using OANDA trade is that they can manually set leverage when trading CFDs. Many of the best brokers do not allow leverage to be changed or reduced from the maximum available, increasing the high risk of forex trading. For instance, OANDA customers new to forex trading may be offered 30:1 leverage under ASIC regulation yet choose to place an order with 5:1 leverage to reduce the high risk and exposure. Some brokers like AvaTrade also allow spreads to be fixed, giving certainty to brokerage fees.
OANDA has regulatory approval in Australia by ASIC and in many other regions, such as in the United States by the US Commodity Futures Trading Commission (CFTC). This is one of the hardest regulators to get approval by, with only a few brokers like Interactive Brokers being US regulated.
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 0.1
GBP/USD = 0.4
AUD/USD = 0.2
Trading Platforms
MT4, MT5, cTrader, TradingView, Capitalise.ai
Minimum Deposit
$0
Why We Recommend Pepperstone
We can confidently attest to Pepperstone’s exceptional trading platforms, competitive spreads, and minimal commission costs. Regulated by the FCA, they ensure a trustworthy trading experience. Platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, TradingView, and Capitalise.ai provide comprehensive tools and broad market access. Their superior customer service further sets them apart in supporting newcomers in their forex journey.
Pros & Cons
Broker Details
Pepperstone is regulated by the Financial Conduct Authority (FCA) in the UK and is one of the best brokers in the world, thanks to its top trading platforms, tight spreads, low commission fees, and excellent customer support. You can trade CFDs and forex using MetaTrader 4 (MT4), MetaTrader 5 (MT5), cTrader, TadingView and Capitalise.ai, with each platform providing extensive tools and market access.
cTrader is a popular platform but is better suited if you are an experienced trader. At the same time, MT4 and MT5 are ideal trading platforms for all experience levels, including beginners, with easy-to-use trading tools for analysis and automation.
Beginner Traders can benefit from the following MetaTrader 4 and 5 features:
Automated Trading Tools:
There are two main approaches to automating your trading. Social-copy trading software is account mirroring software that allows you to copy the trading strategies of experienced traders, rather than develop your own.
The second option is algorithmic trading, where you use trading robots known as Expert Advisors to monitor markets and enter or exit trades according to your algorithm’s pre-set parameters.
Social-Copy Trading
Algorithmic Trading
Trading Account Types
Pepperstone is a no-dealing desk (NDD) broker offering an institutional-grade trading environment with low spreads and fees.
As a Pepperstone client, you can choose between two main trading account types – either a Raw or Standard Account. The best account type that suits you depends on whether you prefer tighter spreads while paying flat-rate commission fees or wider spreads with no commission fees.
Razor vs Standard Account Types
When trading forex with Pepperstone, the critical difference between a Razor and Standard account type is the spreads and commission fees.
If you are a beginner trader, you may prefer a standard account type. The compensation for Pepperstone’s services is included in the spreads, allowing for a simple pricing structure.
If you are an experienced trader, Pepperstone’s Razor account offers an environment ideal for scalping, day trading and expert advisor strategies. With the Razor account, you can trade ultra-low spreads while paying flat-rate commission fees.
Low Spreads + Commission: Razor Account Type
A Razor account gives you access to low spreads on various currency pairs. As spreads are so tight, you pay a flat rate commission fee per side of each trade per 100,000 traded.
Pepperstone offers tighter spreads than many other leading brokers for a range of currency pairs, including EUR/USD, EUR/JPY and AUD/USD forex pairs. While some brokers may have better spreads for certain FX pairs, Pepperstone offers the best value across the board.
|
Commission Spreads
|
|||||
|---|---|---|---|---|---|
|
0.10 | 0.20 | 0.40 | 1.00 | 0.60 |
|
0.10 | 0.50 | 0.60 | 0.80 | 1.10 |
|
0.20 | 0.20 | 0.40 | N/A | 0.30 |
|
0.20 | 0.40 | 0.50 | 0.70 | 0.70 |
|
0.30 | 0.50 | 0.50 | 0.50 | 0.60 |
|
0.44 | 0.42 | 0.40 | 0.30 | 0.83 |
|
n/a | 0.50 | 0.60 | 0.40 | 0.30 |
|
0.17 | 0.30 | 0.54 | 0.68 | N/A |
|
0.44 | 1.23 | 1.13 | 1.23 | 1.41 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Commission-Free Spreads: Standard Account Type
You can trade spreads inclusive of commission fees as a Standard Account holder. Pepperstone’s no-commission spreads for the EUR/JPY, GBP/USD and USD/CAD are the most competitive compared to other top brokers. While Pepperstone offers 1.34 pips for the EUR/JPY FX pair spreads, Forex.com spreads are nearly double, averaging 2.40 pips.
The EUR/USD and EUR/GBP currency pairs are close to brokers like Saxo Bank, with spreads being wider by just 0.01-0.05 pips.
|
No Commission Spreads
|
|||||
|---|---|---|---|---|---|
|
|
1.10 | 1.20 | 1.40 | 2.00 | 1.50 |
|
1.20 | 1.80 | 1.90 | 2.30 | 2.30 |
|
1.20 | 1.30 | 1.50 | 1.70 | 1.20 |
|
1.20 | 1.40 | 1.50 | 2.80 | 2.60 |
|
1.70 | 1.60 | 1.70 | 2.50 | 2.70 |
|
1.20 | 0.90 | 1.50 | 2.20 | 1.70 |
|
1.30 | 1.70 | 2.10 | 1.70 | 2.10 |
|
1.32 | 1.95 | 1.37 | 1.87 | 1.73 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Order Execution Speeds
When placing orders with Pepperstone, the online broker offers fast execution speed. As a no-dealing desk broker, Pepperstone quickly matches orders with liquidity providers. Thus, allowing orders to be filled faster than most competing brokers.
Limit Orders allow you to buy or sell forex and CFDs at a specified price or better. This order type includes buy stop, sell stop, buy limit and sell limit orders. Pepperstone’s limit order execution speed lags just behind FP Markets and ties with Axi, making them one of the best brokers for fast orders.
Pepperstone also offers fast execution for orders that are placed at the current market price, known as Market Orders.
Starting to Trade Forex
After signing up for a Razor or Standard account type and choosing a trading platform, you will select a base currency and make an initial minimum deposit to start trading.
With such a simple registration process, Pepperstone is one of the best brokers if you are a beginner trader. Pepperstone’s award-winning customer service team is available 24/5 via live chat, email or phone if you need customer support.
A demo account is available with Pepperstone on MetaTrader 4 and 5, a valuable tool for traders with experience and beginner traders. Demo accounts are a great risk management tool. You can practice trading strategies with virtual funds risk-free in real-time market conditions.
If you are new to trading, demos can help you familiarise yourself with different forex trading concepts and the MT4 and MT5 trading platforms.
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 1.0
GBP/USD = 2.0
AUD/USD = 1.0
Trading Platforms
eToro Trading Platform
Minimum Deposit
$50
Why We Recommend eToro
Drawing from our experience, it’s evident why eToro is the world’s leading social trading platform, boasting an intuitive interface and top-notch account mirroring services. Their credibility is further solidified by being regulated by renowned bodies like the FCA, CySEC, and ASIC. Rest assured, with eToro, you’re engaging with a reputable CFD broker.
Pros & Cons
Broker Details
eToro is the largest social trading network worldwide, famous for its user-friendly trading platform and account mirroring services. With regulation by the Financial Conduct Authority (FCA, UK), Cyprus Securities Exchange Commission (CySEC, Cyprus) and the Australian Securities and Investments Commission (ASIC), you have the assurance you need that you are trading CFDs with a trusted broker.
Social Trading
eToro’s social-copy trading platform is well-known for its simplistic platform design and easy-to-use trading tools. You can enjoy many benefits if you are a beginner trader. First, you gain access to a vast trading community with millions of traders from over 140 countries. Second, eToro offers account mirroring services where you can copy the trading strategies of successful investors with proven track records. Known as Popular Investors, experienced traders receive bonuses for profitable strategies, providing incentivises for successful trades.
To find suitable Popular Investors, you can search for trading strategies that match your risk level, markets and location. You can copy strategies surrounding a range of CFDs, with forex, commodities and Share CFDs available. The social trading platform offers a real-time newsfeed function to stay updated with market changes. It shows an analysis conducted by Popular Investors you follow.
As a beginner trader, you may want a well-diversified portfolio to start. eToro’s CopyPortfolios are an excellent option, with two different portfolio types available:
Broker Screenshots
Forex Panel Score
Average Spread
EUR/USD = 1.70
GBP/USD = 2.3
AUD/USD = 1.4
Trading Platforms
Plus500 Trading Platform
Minimum Deposit
$100
Why We Recommend Plus500
Having tested their custom trading platform ourselves, we found Plus500 exceptionally user-friendly, perfect for those keen to navigate the forex markets. Whether you’re using their online trader platform or mobile app, the experience is seamless. Notably, Plus500 provides diverse order types to manage CFD trading risks effectively.
Pros & Cons
Broker Details
If you want to familiarise yourself with forex markets via a user-friendly interface, Plus500’s proprietary trading platform is an excellent choice. Plus500’s platform is available as a web trader platform or mobile trading app (compatible with iOS and Android devices). Our testing found that the broker has the best forex trading app in UK with a range of order types available to manage CFD trading risk.
Risk Management: Order Types
Besides signing up with a trusted regulated broker, you can reduce the high risk of CFD trading by utilising the broker’s trading platform’s risk management tools, such as order types.
FCA Regulated Broker
Plus500 is a regulated broker overseen by the Financial Conduct Authority (FCA) in the UK and other financial authorities worldwide. On top of FCA regulation, Plus500’s listed on the London Stock Exchange. Being a publicly listed company increases transparency by requiring the broker to disclose financial information frequently. As a customer of Pluss500’s UK subsidiary, you receive various forms of investor protection to help you manage the high risk of forex trading.
While Plus500 also offers brokerage services in Australia (ASIC), NZ (FMA), Singapore (MAS), South Africa (FSCA) and Israel (ISA), if you register with these subsidiaries, you will not receive the same strict investor protection in UK traders receive, except for segregated client funds.
Forex Panel Score
Average Spread
EUR/USD = 0.9
GBP/USD = 1.4
AUD/USD = 1.3
Trading Platforms
MT4, xStation 5
Minimum Deposit
$0
Why We Recommend XTB
We found the flexibility to choose between a no-commission standard account and a pro account with competitive spreads and a straightforward commission per lot quite advantageous. With XTB, traders can delve into over 3,000 financial markets. Their proprietary trading platform, xStation 5, accessible via desktop, web, or mobile apps, offers a seamless trading experience. This broker simplifies the journey for those new to forex trading in the UK.
Pros & Cons
Broker Details
XTB is an FCA-regulated broker that offers you a choice of either a standard account type with no commission or a pro account with low spreads with a flat-rate commission for each lot you trade. When trading CFDs via xStation, the broker’s proprietary trading platform, over 3,000 financial markets are available using desktop, web or mobile apps.
The mobile trading app is suitable for beginner traders as it provides an easy-to-use and modern design. There are also comprehensive trading tools, including interactive charts and technical indicators. XTB mobile app features include:
When trading on the go, you can manage the high risk of CFD trading by utilising different order types. These include market orders, limit orders and stop-loss orders. You can also set up various customisable alerts and notifications to stay updated with market news and trading opportunities.
You can view the best forex broker for beginner traders to compare XTB to other leading providers.
Forex Panel Score
Average Spread
EUR/USD = 1.12
GBP/USD = 1.3
AUD/USD = 1.64
Trading Platforms
MT4, CMC NGEN
Minimum Deposit
$0
Why We Recommend CMC Markets
We highly recommend the Next Generation platform, exclusive to CMC Markets, for those new to trading in the UK. Drawing from our own use, it offers expansive access to various asset classes, complete with comprehensive trading tools and educational resources. The platform’s flexibility in allowing traders to switch between a regular or advanced view means beginners can opt for a more simplified interface, making their initial trading steps more manageable.
Pros & Cons
Broker Details
As a beginner, you might initially prefer an online trader platform to avoid downloading and installing a desktop trading platform. CMC Markets’ proprietary web trading platform, Next Generation, offers comprehensive trading tools and educational resources to develop trading strategies while providing market access to various asset classes.
The web-based platform lets you choose either a standard or advanced view, allowing beginner traders to opt for a simplified interface when starting. If you are new to forex trading, you can benefit from the extensive trading tools and platform features, such as:
If you are using the online brokers Next Generation platform, you can access foreign exchange markets as well as the following CFD products:
To supplement CMC Markets’ impressive market access and Next Generation platform, you can learn about risk management, trading strategies and unique platform feature with the broker’s library of educational resources.
CMC Markets’ award-winning educational resources consist of webinars, e-books, videos, articles and trading courses designed for beginner, intermediate and experienced traders. Topics discussed include forex and CFD trading, technical indicators, fundamental analysis, and trading platforms.
CMC Markets is regulated by top-tier financial markets authorities such as the FCA (Financial Conduct Authority, UK), BaFin (Germany), ASIC (Australian Securities and Investments Commission), and the CFTC (Commodities and Futures Trading Commission, US).
Forex Panel Score
Average Spread
EUR/USD = 1.32
GBP/USD = 1.7
AUD/USD = 1.95
Trading Platforms
MT4,MT5, cTrader,
FxPro Trading Platform
Minimum Deposit
$100
Why We Recommend FxPro
We’ve spent time on FxPro and recommend it for beginner traders in the UK. With FxPro, you get the cTrader forex trading software, either via the WebTrader platform or their efficient mobile app, available for iOS and Android. Especially enticing for those keen on tight spreads and rapid execution, cTrader offers spreads on sought-after pairs like the EUR/USD, hitting lows of 0.0 pips. Remember that there’s a flat commission fee, a fair trade for the top-notch services FxPro delivers.
Pros & Cons
Broker Details
cTrader is a popular forex trading platform offered by FxPro. You can use a WebTrader platform or mobile trading app (iOS and Android) to access the trading software.
Mimicking a professional FX trading environment, cTrader is suited to traders wanting low spreads and ultra-fast execution. Spreads are as low as 0.0 pips on major currency pairs such as the EUR/USD, so you pay a flat rate commission fee to compensate FxPro for their brokerage services.
Commission fees depend on the volume traded, $45 charged per million traded and $4.5 per 100k. To assist customers with calculating commission fees for different trade sizes, base currencies and currency pairs, the FX broker provides a commission calculator on its website.
In addition to major, minor, and exotic FX pairs, cTrader users can build diversified trading strategies using other asset classes like indices, energies and metals.
Trading Conditions and Tools
FxPro cTrader customers benefit from the following trading features and tools:
In terms of risk management, you can use a range of order types to mitigate losses. Besides standard market orders, the following order types are available to manage the high risk of forex trading:
cTrader VIP Account Type
For traders wanting even tighter spreads and lower commission fees, you can sign up for the broker’s VIP account type. To qualify as a VIP, you need to deposit an amount of $50,000 into your trading account. After you make the required minimum deposit, a FxPro account manager will reach out to process a VIP account application.
Forex Panel Score
Average Spread
EUR/USD = 0.7
GBP/USD = 1.1
AUD/USD = 2.2
Trading Platforms
MT4, TradingView, WebTrader
Minimum Deposit
$0
Why We Recommend City Index
After thoroughly testing numerous platforms, we’re confident in naming City Index as the best beginner CFD trading platform for UK traders. Esteemed as a trusted FCA-regulated broker, City Index provides access to over 12,000 financial markets. Their web trading platform impresses with its advanced tools, tailor-made workspace, commendable risk management features, and robust CFD market access. Whether you’re eyeing forex, shares, or indices, City Index makes the initiation into CFD trading straightforward and user-friendly.
Pros & Cons
Forex Panel Score
Average Spread
EUR/USD = 1.6
GBP/USD = 1.6
AUD/USD = 1.9
Trading Platforms
MT4, MT5,
Markets.com Trading App
Minimum Deposit
$100
Why We Recommend markets.com
We confidently recommend Markets.com as the best forex broker for small accounts in the UK. Operating as a commission-free market maker, they boast a broad array of forex and CFD options, from shares to commodities and ETFs. Markets.com strictly adheres to the UK’s Financial Conduct Authority (FCA) regulations in line with top-tier standards. Additionally, for those based in the UK, the assurance of negative balance and FSCS protection adds an extra layer of security to your investments.
Pros & Cons
Broker Details
Markets.com is a commission-free forex broker that follows a market maker business model. The broker offers an excellent range of forex and CFDs with forex, commodities, indices, bonds, and ETFs available, plus thousands of different shares.
The FX broker follows tier-1 regulation, including that set by the UK’s Financial Conduct Authority (FCA). Therefore, Markets.com provides negative balance protection, and as a UK resident, you receive protection from the Financial Services Compensation Scheme (FSCS).
To add another layer of transparency regarding financial reporting and disclosure, the broker’s parent company, PlayTech, is a public company listed on the London Stock Exchange and a component of the FTSE 250 index.
Online Trading Accounts
As a market maker with dealing desk execution, Markets.com offers one primary account type. It requires a small initial deposit of $250 to open an account, and you will gain access to tight spreads as low as 0.40 pips with no commission fees. The combination of tight spreads with no commission fees and a low initial deposit makes it a great option if you are a beginner trader.
If you make a living and earn a salary as a professional trader, Markets.com offers a Pro Account to access higher leverage and a dedicated account manager.
To qualify for a professional trading account, you need to satisfy two of the following criteria:
Online Trading Platforms
In addition to MT4 and MT5, you can also use the broker’s proprietary trading platform to conduct analysis and place orders.
You can access the platform online, via a web trader platform or through mobile trading apps for iOS and Android devices. Both versions of the software offer an excellent range of tools to enhance your trading experience, including:
Markets.com’s market sentiment tools are one of the best features the broker and trading platform offers. The tools help determine whether most market participants feel positive or negative about a specific financial instrument.
Examples of Sentiment Tools:
On top of the sophisticated sentiment features, you can also use various technical and fundamental tools to develop trading strategies that include complex instruments and techniques:
OANDA is the best forex trading platform for beginners in the UK, per our analysis. Beginner traders can use their comprehensive charting and trading tools.
The broker offers access to MetaTrader 4, TradingView and OANDA Web, and has the industry’s lowest spreads on their Standard Account – with the average spread on the top 5 most traded forex pairs being 0.70 pips.
The broker offers a wide range of financial products with more than 70 forex pairs available to trade on their easy-to-use platform.
OANDA allows new traders to craft automated trading strategies, offers fast execution speeds, and has a minimum deposit of $0 on their Standard Account.
Here is what to look for in a forex trading broker if you are new to trading:
A forex broker should have low spreads. The ”spread” is the difference between the buy and sell rate when exchanging the two currencies that make up a currency pair.
That means if the spread is low, you won’t be losing much of your funds when trading.
Choosing a broker with a fast execution speed matters because it prevents slippage. All trades have a lag time (even if minimal) between an order being placed and being filled which is enough time for forex prices to slightly change. This process is called slippage.
While slippage can be both positive or negative depending on which way the price moves, we imagine that you’d prefer to get the price you placed your order at.
Execution speed is critical if your trading strategy will be scalping (profiting off a few pips) or if you use automated trading (e.g. copy trading).
Your forex broker should have stop-loss orders, which are risk management tools that instruct your broker to automatically exit your open trading positions when the price drops to a certain level.
A Stop-Loss Limit Order instructs your broker to exit the trade at a specified limit automatically.
Your desired broker should have risk management tools and options, such as a Guaranteed Stop-Loss. Instead of ”trying” to exit (like with a Stop Loss Order), the broker guarantees that they will exit your trade at your set limit.
The Forex broker will pay you any differences between your stop loss price and the price they exit you at if below your limit.
Note that this is a feature that comes with a small commission set by the broker.
If you are a beginner, another thing you should look for in your forex broker will be if they offer copy trading platforms on their platform.
Copy trading is a type of automated trading where you are following another experienced trader and you automatically replicate their trades.
A good forex broker in the UK will give you access to low spreads and commission fees, all while providing you with access to a wide range of forex pairs.
The forex trading broker will also have to be regulated by the Financial Conduct Authority (FCA) in the UK and offer advanced trading platforms and risk management tools.
After you have chosen a trusted forex broker in the UK, we advise you to open a demo account to experiment with trading.
Explore the broker’s offering of forex pairs, risk management tools, available leverage, and market analysis features.
Some forex brokers choose to be day traders (e.g. scalpers), while others trade long-term with CFDs (the speculative market).
You can fund your live trading account with a small sum of money and gradually increase it as you gain more experience and market knowledge.
If you are unsure about your capabilities, you can engage in copy trading, where you copy other traders’ trades.
Here are our top 5 tips on trading forex as a beginner:
If you are going to be choosing a forex broker in the UK for trading CFDs, you need to use a platform that offers an intuitive user interface and extensive educational resources.
OANDA Trade is an easy-to-use trading platform that features powerful research tools with plenty of beginner-friendly technical indicators.
https://www.compareforexbrokers.com/uk/trading/best-uk/mt4/
MetaTrader 4 (MT4) is the most used trading platform, as it is easy to use and offers risk management and automated trading tools. The best MT4 brokers also offer a reliable trade execution.
https://www.compareforexbrokers.com/trading-platforms/best-mt5-brokers/
MetaTrader 5 (MT5) is a bit more advanced than MetaTrader 4 (MT4) and forex brokers which have MT5 offer beginners diverse market access to various assets, advanced trading tools, and enhanced charting.
TradingView is similar to the MetaTrader platforms but offers a more powerful charting platform and a bigger social network for traders.
https://www.compareforexbrokers.com/trading-platforms/best-ctrader-brokers/
cTrader is renowned for its beginner-friendly interface and extensive customisation options. The main difference between cTrader and the MetaTrader platforms is that brokers with cTrader allow you to use pending orders when the market is closed, while MT does not.
OANDA offers the best demo account on the UK trading market. What separates OANDA’s demo account from the rest is that you can experiment with automated trading and simulate realistic trading conditions with trading bots.
OANDA’s demo account offers the ability to trade more than 70 currency pairs and gives flexible leverage to use with their trading platforms, MT4 and TradingView.
Here are the different forex trading costs:
It is important to note that fees vary from broker to broker.
It is Pepperstone that offers the lowest spreads in the UK. The FCA-regulated broker offers low Standard Account (non-commission) spreads on the major currency pairs – such as 1.12 pips spread on EUR/USD.
Standard accounts have no commissions and are popular with new traders in the UK. This is why choosing a forex broker like Pepperstone that offers low spreads will make sure that you are retaining more of your profits.
See how Pepperstone compares to other popular forex brokers in the UK:
| Tested Raw Spreads | |
|---|---|
| Broker | Combined for major pairs |
| Pepperstone | 0.36 |
| ThinkMarkets | 0.46 |
| Tickmill | 0.47 |
| Eightcap | 0.5 |
| Axi | 0.73 |
| CMC Markets | 0.73 |
| Admirals | 0.79 |
Pepperstone has an average spread of 0.19 pips on AUD/USD and 0.41 pips on GBP/USD on their RAW accounts.
| AUDUSD | Average Spread | EURUSD | Average Spread | GBPUSD | Average Spread |
|---|---|---|---|---|---|
| Pepperstone | 0.19 | Tickmill | 0.15 | Pepperstone | 0.41 |
| Tickmill | 0.37 | Pepperstone | 0.19 | EightCap | 0.44 |
| ThinkMarkets | 0.42 | EightCap | 0.2 | Tickmill | 0.59 |
| EightCap | 0.48 | Admiral Markets | 0.21 | ThinkMarkets | 0.62 |
| Axi | 0.67 | ThinkMarkets | 0.22 | Admiral Markets | 0.73 |
| CMC Markets | 0.68 | Axi | 0.43 | CMC Markets | 0.9 |
| Admiral Markets | 0.7 | CMC Markets | 0.44 | Axi | 0.95 |
Copy trading can be beneficial for beginners as it would allow you to follow the trades of a more experienced investor.
However, it comes with risks, as success depends on the performance of the chosen traders. You should still do your research and choose reputable trading platforms as well as copy traders that have the same risk tolerance as you do.
Social trading is generally good for beginners; however, there are risks to be aware of. If you have limited knowledge of Forex trading, social trading, much like copy trading, allows you to leverage the skills of other more learned traders; however, there may be traders in the social network that are giving poor trading advice. For this reason, you need to make sure you do your research on any trader you take advice from and consider if they are legit and give good advice.
Forex brokers in the UK would offer you a negative balance protection which is a risk management feature that ensures you do not lose more money than you have deposited into your trading account.
As for protections coming from the main regulatory body in the UK, the FCA, traders have deposit insurance which is a compensation right to retail customers in the unlikely event of the forex broker going bankrupt.
That means if your FCA-regulated forex broker goes bankrupt, the UK’s Financial Services Compensation Scheme (FSCS) will provide you with up to £85,000 of protection.
The main risk of any kind of investing is losing the capital that you have invested as a result of a forex pair going down.
Apart from the obvious, other risks include market volatility, which is the rapid and unpredictable price movement that leads to large losses over a short period.
Another risk of trading for beginners is when you use leverage while having a lack of experience and poor market knowledge. That could result in serious losses and could even trigger a negative balance protection from your broker.
A not-so-obvious risk for beginners is choosing a fraudulent forex broker, which is why our team selects only the most trustworthy forex brokers in our review process.
A beginner can use leverage, as long as you take the right risk management precautions (e.g. guaranteed stop loss) and if you are willing to risk a higher portion of your trading capital.
Leverage in forex allows you to control a larger position size with a smaller amount of capital, which amplifies both potential profits and losses. It is recommended that you start with low leverage to limit your losses and learn how to manage the risks associated with leveraged trading better.
Different forex brokers in the UK have different minimum deposit requirements.
For example, OANDA has no minimum deposit requirement, which means that you can start trading with as little as $100, if not less.
Keep in mind that most forex brokers would have a different minimum deposit requirement depending on what account type you choose.
The easiness of the forex trading platform will depend on the forex broker you choose. Some platforms can be easy to learn, given that they have an easy-to-use user interface.
All things considered, it is recommended that you spend some time learning the different trading platforms in a demo account so you can familiarise yourself with the trading process, risk management, and market analysis features.
Beginners should trade currency pairs that are not very volatile, such as the major pairs EUR/USD, USD/JPY, and AUD/USD. These currency pairs have proven historically to be stable, and are less likely to drop suddenly.
It is not recommended to be a day trader on margin if you are a beginner forex trader. This is because of the risk of losing more money than you have initially invested in your account.
If you are new to forex and CFD trading and want a tried and tested trading platform, award-winning customer support and ultra-tight spreads, Pepperstone is the best broker for UK traders. The regulated broker is overseen by the Financial Conduct Authority (FCA) and provides risk management tools beneficial to beginners. To start trading forex and other CFDs, such as indices and commodities, with Pepperstone, you can easily open an ECN-style or no-commission account online, with a demo account available for 30 days.
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Creating our list of the best trading platforms for beginners in the UK wasn’t a task taken lightly. Our focus was heavily geared towards ensuring that these platforms are novice-friendly and compliant with the Financial Conduct Authority (FCA) in the UK. Regulatory oversight by the FCA is non-negotiable, as it’s a cornerstone of financial safety and fair trading practices. Therefore, each broker on our list has passed rigorous checks to ensure they meet the high standards set by this regulatory body.
Beyond FCA regulation, we delved into aspects specifically tailored to newcomers in the trading world. We assessed the overall user experience, user interface, educational resources, and demo accounts, among other features of the top forex brokers in the country. This multi-faceted evaluation process ensures that not only are you engaging with a broker that’s trustworthy and compliant, but also one that can help you navigate the complexities of trading with ease. Our aim is to give you the confidence to embark on your trading journey with a platform that’s both secure and beginner-friendly if you’re looking for something more advanced then navigate back to the homepage.
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