ECN Brokers UK Comparison

The UK forex traders can have access to the world’s top ECN brokers with no dealing desk execution. The ECN forex brokers will give the UK residents lower GBP/USD spreads, direct market access, price feed transparency with interbank bid and ask price, no markups and instant trades.

Compare the top ECN Brokers for the UK forex traders below.

By Justin Grossbard / Updated: Saturday, February 15th, 2020

UK ECN Brokers

Top 6 UK ECN Brokers For UK Forex Traders

Find the top 6 UK ECN brokers with the best MetaTrader 4 platform, best NDD execution model, the largest range of currencies and CFDs, most liquidity providers and best spreads below:

  • Top 6 UK ECN Brokers For UK Forex TradersPepperstone – Best MetaTrader 4 + 5 ECN Broker
  • FxPro – Best No Dealing Desk Forex Broker
  • AxiTrader – Largest Range Of Currency Pairs + CFDs
  • IG – UK Broker With The Most Liquidity Providers
  • Swissquote – Best Variable Spread Broker (No Commission)
  • FxPro – Best ECN Broker Demo Account

Pepperstone - The Best UK MetaTrader 4 + 5 ECN BrokerPepperstone – The Best UK MetaTrader 4 + 5 ECN Broker

Pepperstone has its origins in Australia, but since 2015 it’s operating its London-based office to serve clients from both the UK and Europe. Pepperstone’s UK office is located in the heart of London at 70 Gracechurch St. London, United Kingdom EC3V 0HR. Like all ECN brokers we’re dealing with an entity that abides by the standards and rules imposed by the local regulatory watchdog and more:

  • Pepperstone UK branch is regulated by the Financial Conduct Authority (FCA) with registration number 684312
  • Pepperstone AU headquarters is regulated by the Australian Securities and Investment Commission (ASIC) with AFS license number 414530

Best UK MetaTrader 4 + 5 ECN Broker

Pepperstone best UK Metatrader brokerAccording to our research, Pepperstone is the best UK ECN Metatrader broker due to its superior financial services that come in the form of:

  • Lightning-fast execution speed of 60 milliseconds (and 30ms for Australian traders)
  • Best bid and ask pricings (GBP/USD spread start as low as 0.44 pips)
  • Powerful trading tools (Smart Trader Tools and Autochartist)
  • One trading account gives UK traders access to both MetaTrader 4 and MetaTrader 5
  • Trading platforms available to download for desktop, Mac OS, mobile trading (iOS and Android), tablet trading and including a web trading app

Our team of industry experts will highlight the main Pepperstone features that recommend this ECN broker the top choice for the UK traders.

Pepperstone offers Low-Cost Pricing ECN Account

At Pepperstone, UK traders can benefit from tight forex spreads with no markups (available on the Pepperstone Razor Account). The bid and ask prices are derived from a wide range of liquidity providers. The multiple sources of liquidity providers allow Pepperstone to supply UK forex traders with the best raw spreads. For a quick spread comparison offered by UK ECN forex brokers study the table below.

Average Spreads
(02/01/2020)
EUR/USDUSD/JPYAUD/USDGBP/USD
Pepperstone0.16*0.25*0.27*0.49*
IC Markets0.1*0.2*0.2*0.4*
IG Markets0.263*0.293*0.512*0.992*
CMC Markets0.8050.8790.7512.793
AxiTrader0.44*0.62*0.42*0.85*

If you’re looking for the lowest spread ECN brokers in the UK, the top choices are Pepperstone and IC Markets. On the other hand, among the ECN forex brokers examined, CMC Markets has the worst spreads. The EUR/USD spread is 0.805 pips respectively 2.793 spread on the GBP/USD pair.

Pepperstone also keeps the commissions extremely competitive. Pepperstone UK has introduced transparent ECN commissions, which are determined by the trading platform used and the trading account currency:

  • MT4 Razor account commission of GBP 2.29 per one standard lot traded (or GBP 4.59 round turn). The USD-based trading account charges a commission of $7.53 round turn.
  • MT5 Razor account commission of GBP 2.29 per one standard lot traded (or GBP 4.59 round turn). The USD-based trading account charges a commission of $7 round turn.

Pepperstone UK ECN Forex Broker Commission

best ecn forex broker in the UKECN Forex Brokers with Fast Speed

The benefit that comes with true ECN forex brokers is that you can trade with fast order execution speed. Pepperstone is able to offer UK forex traders the ability to trade through MT4 and MT5 trading platforms with fast speed. On a daily basis, Pepperstone executes $12. 55 billion worth of trades. Most orders are filled in less than 60 milliseconds.

Our team of experts used third-party scripts to test the market order execution speed. The speed testing results confirmed that Pepperstone is the best forex broker in the UK. The Australian-based broker boosted an 85-millisecond average execution speed.

Our order execution speed comparison among the best ECN forex brokers in the UK can be seen below.

Note* The ECN speeding test was conducted using FX spot orders that are executed at the best available market prices. We also conducted the tests via a MetaTrader 4 demo account.

Summary – Why Pepperstone is the Best ECN Forex Broker

The automatic price improvement technology used by Pepperstone coupled with the above-mentioned tools and features made this true ECN broker the best forex broker in the UK. Pepperstone doesn’t interfere with the bid and asks prices because it doesn’t operate a dealing desk. With no middleman between the UK retail investors and the foreign exchange market, you can trade with the peace of mind directly on the interbank spot rates.

Open a demo account >>Visit Pepperstone >>


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

Overall, Pepperstone Is The UK Best ECN Forex Broker

Compare Forex Broker has reviewed ECN brokers for forex traders from across the whole world and knows the anatomy of a good ECN broker. Our best-in-industry methodology for reviewing online Forex brokers revealed that if you’re a UK-based trader, the best ECN forex broker is Pepperstone.

London is the world’s second-biggest financial centre and as a financial hub, it tends to attract the best of the best ECN forex brokers. In this regard, there are many attractive options to lure retail investors into Forex trading. If you’re still unsure which ECN broker offers the best financial service, our team of industry experts will highlight all the critical aspects that make Pepperstone the best UK ECN forex broker:

  • Lowest Raw spreads (EUR/USD spread as low as 0.16 pips)
  • Fastest market order execution speed (85 milliseconds) among the top 10 ECN brokers in the UKBest ECN Forex Broker in the UK
  • Second fastest limit order execution speed (100 milliseconds) among the top 10 UK ECN brokers
  • Trading on the most popular forex platforms (MT4, MT5 and cTrader)
  • Lowest ECN based account commissions (GBP 2.29 per side)
  • The active trader program gives attractive rebates up to 15%
  • Deposit and withdrawals with no additional fees
  • Deposit protection up to GBP 85,000 per eligible person under the Financial Services Compensation Scheme
  • Award-winning customer support service

A full and detailed review of Pepperstone trading features, including the range of trading platforms, available instruments for trading, spreads and fees, the quality of trade execution, customer service and much more can be found here: Pepperstone Review 2020.

What Is An Electronic Communication Network (ECN Broker)?

ECN stands for Electronic Communications Network and it’s a piece of technological solution used to provide forex traders direct market access. The Electronic Communication Network (ECN) technology is only used to match orders between traders. Typically the ECN brokers consolidate the bid and ask quotes from a wide range of liquidity providers such as tier-one banks, licensed financial institutions, authorized brokers etc.

We can distinguish two types of liquidity providers:

  • ECN (Electronic Communication Network)
  • MTF (Multilateral Trading Facility)

Since the Forex market doesn’t operate from one single exchange, but rather from multiple venues aka liquidity providers, we can distinguish the following type of structure:

  • Electronic Communications Network Liquidity ProvidersTop Level we have tier-one liquidity providers like Deutsche Bank, Barclays Capital, JP Morgan, Citi, etc.
  • The second level is comprised of liquidity pools such as EBS, FXall (Thomas Reuter), Currenex, Integral, KCG Hotspot, CFH Clearing, and LMAX Exchange
  • Prime Brokers
  • Retail Brokers can act as market makers

Unlike an electronic communication network brokers, the MTF protocol is used by the STP brokers. The STP brokers will protect the UK traders from slippage.

The first advantages of the ECN forex brokers are that the bid and ask spread is much tighter. Compared to market maker brokers, the ECN brokers will charge a typical fixed or variable commission. This feature eliminates any conflict of interest between the broker and the trader.

Risk Warning: Trading over-the-counter using high leverage products carries a high risk of losing money. Trading Forex is not suitable for all retail investors so before you risk your money, make sure you understand how CFDs work. Only invest money you can lose.

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