Lowest Spread Forex Brokers In UK

FXCM has the lowest spreads when spread betting

Spread betting has much in common with CFD trading since they allow you to potentially profit from movement in the underlying financial instrument without actually owning the asset.  Many traders prefer to spread bets than trade CFDs since there are no taxes on profits and no stamp duty.

FXCM Retail Spread betting account

The FXCM retail spread betting account has the same spreads as FXCM’s standard account for CFD trading. Regardless of whether you are spread betting using Forex, Shares, Indices, or any other financial instruments FXCM offer, the spread will be the same as if you were trading CFDs.

FXCM does not charge commissions which means the markup is included as part of the spread.  Spreads for the FXCM account are as follows:

FXCM Spread Betting: Standard Account, No Commission Spreads	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD
	1.30	1.70	2.40	2.10	1.70

Data taken from broker website. Accurate as at 01/01/2022

Active trader account for spread betting

If you want the best spread betting prices FXCM offer and you plan to bet at least 150 million every 3 months in notional volume then you should apply for an Active Trader account.  While $150 million might sound like a lot, keep in mind that you are spread betting using leverage. As always keep in mind leverage is a risky instrument so do keep your risk of large losses in mind which is why FXCM requires the account to maintain at least $25,000 in equity. FXCM spreads come with a $25 commission for each $1million you bet.

The following table lists the average spreads FXCM offer for Active Traders and are updated each month. As one can see, points for FXCM as the tightest in the market for spread betting.

FXCM Active Trader: Standard Account, No Commission Spreads	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDAUD/JPYEUR/GBPEUR/JPYGBP/USDUSD/JPYUSD/CADUSD/SGD
	1.30	1.01	2.10	2.30	2.10
	0.20	0.30	0.60	0.50	0.50
	0.79	0.87	1.55	1.26	1.39
	0.85	0.82	1.79	1.40	1.97
	0.80	0.90	2.70	1.70	2.30
	0.81	1.21	n/a	1.40	1.49

Data taken from broker website. Accurate as at 01/01/2022

Using an active trader account doesn’t just mean FXCM best spreads but also give you other features like:

• Dedicated support – personal support through a relationship manager
• Market depth – with FXCM’s Trading station for Depth of Market (DoM)
• Free eFXplus subscription

FXCM Spread Betting Products – Shares, Forex, Trading Baskets

FXCM is a great choice Choosing FXCM means you get a large and diverse range of financial instruments you can use for trading. Products include:

•  39 Forex Pairs
• Choice of global stock markets such as US, UK, Hong Kong, German, French, and other European  stock markets
• 15 Indices
• 12 hard and soft commodities
• 1 Treasury (Bund)
• 3 Forex Baskets – US Dollar Index, Yen Index, Emerging Markets Index
• 14 Stock Indices –  including FAANG, Cannabis, U.S Banks, eSports, Biotech, Airlines, Casinos

FXCM allows you to trade stocks right across the world. Regardless of whether you prefer to use shares from Australia, the USA, The UK, or even Hong Kong, all the major stock markets are available. If you prefer something less risky than single shares, then you can trade 15 indices across the world including SPX500, GER30, UK100, US30, and AUD200.

Lastly, you can bet using FXCM’s most unique products – Forex and Stock Baskets. Baskets are a type of custom indices compiled based on a common theme.

FXCM’s 3 Forex baskets are based around 4 to 6 currencies in a particular currency denomination. For example, the Dow Jones Dollar Index Basket is in US Dollars and consists of US$10,000 of AUD, YEN, Euro, GBP). IN a similar vein The JPY Basket is in Yen and consists of YEN in each of AUD, GBP, USD, Euro, and CAD. The 3rd option is the Emerging Markets Index which consists of $2,500 in Mexican Peso, Turkish Lira, Chinese Renminbi and South African Rand.

The difference between each index is the number of currencies that make up the index.

Alternately, you can trade using a stock basket grouped by theme. The FAANG consists of the best tech stocks on the US Market while other themes include BioTech stocks, Cannabis and eSports.

View FXCM Review >>Visit FXCM >>

*Your capital is at risk ‘67% of retail CFD accounts lose money’

AvaTrade Has The Best Fixed Spreads Of All Brokers

As the name suggests, spreads that are fixed do not change regardless of the time of the day, market conditions, or volatility. Traders may prefer fixed spread to variable spreads as prices are more predictable which can make it easier to prepare a trade plan or strategy.

Choosing a fixed spread account does mean your spreads will be wider than ECN Pricing accounts and even standard accounts but provide are less risky. Like a standard account, a fixed spread account contains no commission charges.

The table below is compiled each month and contains the published spreads from brokers that offer fixed spreads. Spreads with AvaTrade are superior to all others brokers that offer fixed spreads, with only easyMarkets coming close. It is interesting to note that AvaTrades fixed spreads are superior to the spreads some brokers offer with that standard account.

Fixed Spreads	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USDAUD/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USDAUD/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USDAUD/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USDAUD/JPYUSD/JPYUSD/CADUSD/SGD	EUR/USDAUD/USDEUR/GBPEUR/JPYGBP/USDAUD/JPYUSD/JPYUSD/CADUSD/SGD
	0.90	1.10	1.50	1.80	1.60
	0.90	1.20	2.00	1.50	1.80
	1.77	N/A	1.96	2.32	2.04
	1.60	1.90	1.70	2.40	2.10
	1.50	1.80	2.00	2.00	2.00
	3.00	3.00	3.00	3.00	3.00
	4.00	4.00	3.00	5.00	5.00
	3.00	4.00	4.00	6.00	4.00

Data taken from broker website. Accurate as at 01/01/2022

AvaTrade Regulation

AvaTrade has over 200,000 traders which makes them the world’s largest broker to offer fixed spreads. They are eight subsidiaries each regulated by the appropriate oversite:

• Europe – AVA Trade EU Ltd is regulated by the Central Bank of Ireland
• Australia – Ava Capital Markets Australia Pty Ltd is regulated by the ASIC
• South Africa – Ava Capital Markets Pty is regulated by the South African Financial Sector Conduct Authority
• Japan – Ava Trade Japan K.K. is licensed and regulated in Japan by the Financial Services Agency (License No.1662)
• United Arab Emirates – Ava Trade Middle East Ltd is regulated by the Abu Dhabi Global Markets (ADGM) Financial Regulatory Services Authority (FRSA)
• Other regions – AVA Trade Ltd is regulated by the B.V.I Financial Services Commission

AvaTrade Advanced Risk Management Tools

If you are using AvaTrades WebTrader or AvaTradeGo trading platforms then you will have access to AvaTrade’s unique risk management feature called AvaProtect. When you purchase AvaProtect, should your position produce a negative outcome within the protection period, the forex broker will refund the difference. The only cost to the trader will be the protection fee. AvaProtect guarantees that it is not possible for a trade to go poor for up to 2 days after you open your position. This feature is only available with forex, Gold, and Silver.

Summary Of AvaTrade

AvaTrade with its fixed spreads offers a point of difference to most other brokers as they offer variable spreads. For this reason, AvaTrade is a good option if you are new to the market and are concerned about dramatic changes in spreads due to market volatility.

View AvaTrade Review >>Visit AvaTrade >>

City Index Has The Top Low Spreads No Commission Forex Account

CFD trading is associated with costs that could pile up over time and reduce earnings. Therefore, choosing a Forex broker with tight spreads and low commissions is essential to preserve gains. Among the regulated brokers in the UK that we reviewed, City Index offers the lowest spreads in combination with no commissions.

City Index is a trading name of GAIN Capital UK Limited, a company registered in England and Wales under registration number 1761813. GAIN Capital is authorised and regulated by the United Kingdom’s FCA with reference number 113942.

CFD Trading With Zero Commissions

City Index offers a transparent pricing model. This means City Index clients will be aware of the total costs of trading before they open a position. With City Index, UK-based investors can trade over 12,000 financial markets with zero commissions on the following instruments:

• CFDs on Forex
• CFDs on Commodities
• CFDs on Indices
• CFDs on Bonds

Note * The only exception is Shares CFDs, where a commission is charged when clients open a trade and when they close a trade. Spreads start from 0.1% on UK stocks and commissions start from GBP 10.00 on UK shares.

CFD Trading with Low Spreads

When it comes to spreads, City Index offers two pricing models:

• Variable spreads
• Fixed spreads

Note* The variable spreads may widen throughout the day due to variations in liquidity and volatility.

With variable spreads, City Index offers clients the minimum spread for a trading instrument plus an average spread for a specified historical period.

If we set our focus on trading the Forex market specifically, we should note the broker offers pip spreads as low as 0.5 on major currency pairs such as EUR/USD and AUD/USD. The following table visualises spreads associated with major and some minor pairs:

Overnight Financing Commissions

We should note that lower spread Forex brokers usually pass on additional charges to retail clients, in case UK-based traders hold an open position overnight. A daily financing fee will be imposed on clients’ account every day during which they hold an open trade, including weekend days. City Index sets financing rates (also known as swap rates) by using the benchmark interest rate LIBOR +/- 2.5%.

When trading Forex, every night clients will pay a small financing charge on the exposure of their position. The financing charge depends on the interest rate differential between the two currencies in the currency pair. Overall, City Index is one of the best forex brokers in the UK if you want to benefit from no commission trading. City Index platform is equipped with the latest technology, so if you want to test your trading strategy, you can open a demo account by clicking the button below.

Open a demo account >>Visit City Index >>

OANDA Has The Top Low Spread Low Deposit Broker

Established in 1995, OANDA Corp has an international presence being regulated across multiple continents. Our team of experts have chosen Oanda for its no minimum deposit requirement.

Note* While Oanda doesn’t enforce the no-minimum deposit policy, they recommend UK clients to deposit at least GBP 250.  

Oanda provides its financial services under the supervision of the following regulatory agencies:

• US Commodity Futures Trading Commission and is also a member of the National Futures Association.
• OANDA (Canada) Corp ULC is licensed by the Investment Industry Regulatory Organization of Canada (IIROC)
• OANDA Australia Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC) with reference number 412981
• OANDA Europe Limited is a company registered in England with registration number 7110087, while it is authorised and regulated by the FCA with reference number 542574

UK Forex Broker with No Minimum Deposit

Unlike other regulated brokers in the UK we reviewed, OANDA has no minimum deposit requirement for clients to open an account with this brokerage. This is valid for the broker’s Standard Account. Still, we should note that UK traders will have to ensure sufficient funds on their trading account to meet OANDA’s margin requirements.

On the other hand, if UK clients choose to open a Premium Account with the broker, they will have to ensure an initial deposit of $20,000 (or the equivalent in GBP or EUR).

Forex Trading Spreads and Commissions

OANDA offers competitive spreads for the most popular currency pairs only on the Core pricing model. But on the downside, Oanda’s core pricing model is a commission-based model.

Oanda offers two types of pricing models:

• Commission-based model
• Spread-based model aka flexible spreads (EUR/USD spread of 1.1 pips and GBP/USD spread of 1.5 pips)

Note* When compared to other UK-based brokers, Oanda’s $5 commission is relatively high (Pepperstone has the lowest commission of GBP 2.29).

The table below outlines Oanda’s live spreads (flexible spreads) on the major currency pairs:

In certain market conditions, the broker’s spreads could be wider than usual. This is especially valid when particular markets open or close as well as during major geopolitical events.

Oanda Financing Costs

If UK clients choose to hold an active position overnight, the latter will be subject to either a financing charge or a financing credit, depending on whether it is a long or a short position.

For example, if a client holds a long position with 1 standard lot in GBP/USD overnight on Dec 24^th, there will be a financing charge of $7.03, deducted from their account balance.

Oanda Deposit Methods

UK Forex traders can deposit money on their Oanda account using 5 types of payment options:

• Credit card and debit card
• Electronic wallet (PayPal)
• Bank wire
• Electronic bank transfer

At Oanda, there are no deposit fees, but UK clients can incur a withdrawal fee of GBP 10 for the first withdrawal processed within a calendar and GBP 20 for any subsequent withdrawals. If you want to have access to life forex quotes and currency rates but without committing any money, you can opt for an Oanda live account.

Open a demo account >>Visit OANDA >>

FxPro Is The Best Fixed Spread Broker

The low spread forex brokers we reviewed so far offer either variable spreads only or a combination of variable and fixed spreads on their products. When it comes to the most competitive fixed spread brokers in the United Kingdom, our research clearly points to FxPro.

Established in 2006, FxPro Financial Services Ltd is an international online UK CFD provider based in London, United Kingdom, which serves retail and institutional clientele in 173 countries. FxPro Group Limited is the parent company of:

• FxPro UK Limited, which is authorised and regulated by the UK Financial Conduct Authority with reference number 509956
• FxPro Financial Services Ltd, which is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 078/07. It is also authorised by the Financial Sector Conduct Authority (FSCA) in South Africa with authorisation number 45052
• FxPro Global Markets Ltd, which is authorised and regulated by the Securities Commission of The Bahamas (SCB) with license number SIA-F184

FxPro is not an ECN or STP broker. FxPro is self-labelled as a true No Dealing Desk Execution model, which means customer orders are executed with no dealing desk intervention. The brokerage offers two types of execution models:

• instant execution
• and market execution

With an instant execution model, clients will have their orders filled at the price they see on the screen or they can receive a requote. With the market execution model, client orders will be filled at the volume-weighted average price.

Forex Trading with FxPro MT4 Fixed Spread Account

FxPro offers fixed spreads only on its MT4 Account. UK-based traders are able to choose from 4 major and 3 minor currency pairs with fixed pricing. The broker will have the spread fixed, depending on specific time intervals during the trading session. For example, when trading GBP/USD on MT4 Fixed Spread Account, the spreads offered will be as follows:

• Between 08:00 am – 08:00 pm (UK time) – 1.8 pips
• Between 08:00 pm – 08:00 am (UK time) – 2.1 pips
• Between 09:15 pm – 10:50 pm (UK time) – 3.0 pips

Note* We should note that depending on the market conditions and available liquidity, the GBP/USD spread can reach 3.5 pips.

FxPro will charge no commissions for CFD trading on its MT4 and MT5 account types. However, UK-based clients trading Forex currency pairs on the FxPro cTrader account will be charged $4.5 per side for every 1 standard lot traded. Click the link below to open your FxPro demo account, but be prepared to follow the same standard process that comes with a live account.

Open a demo account >>Visit FxPro >>

*Your capital is at risk ‘73.76% of retail CFD accounts lose money’

CMC Markets Has A Top Spread Betting Facility

Headquartered in London, CMC Markets is a leading online CFD provider having offices across Europe and the Asia Pacific region. CMC Markets UK plc is authorised and regulated in the United Kingdom by:

• the UK Financial Conduct Authority with reference number 173730
• while CMC Spreadbet plc falls under the FCA’s regulation with reference number 170627.

Among the best 20 Forex brokers in the UK we reviewed, CMC Markets offers the best spread betting conditions.

Lowest Spread Betting Account

Spread betting, just as CFD trading, is associated with a high risk of losing capital as leverage is used. At present, CMC Markets offers spread betting only to residents of the United Kingdom and Ireland. Clients are allowed to spread bet on more than 9500 global instruments in asset classes such as:

• Currency pairs
• Commodities
• Indices
• Shares
• ETFs
• Treasuries

Spread betting is a form of derivatives trading, which is not subject to stamp duty and capital gains tax in the UK. Clients are able to speculate on the price movement of trading instruments without the need to actually buy or sell a particular asset. They simply buy or sell a specified amount per point of movement for the selected asset, also known as spread bet stake size.

How Spread Betting Works?

Let us consider a simple example. A client decides to place a buy spread bet on Barclays Plc on the expectation the stock will gain value. Barclays was trading at 164/165 (with the spread being equal to 1). The client opens a long position at £10 per point of movement.

In two weeks’ time, the stock indeed surges to 220/221, while the client decides to close the position. Thus, she sells at 220, the current sell quote. Since the price has moved 55 points in her favour (220 sell price – 165 buy price originally), her stake of £10 is then multiplied by that amount to generate a profit of £550.

CMC Markets Low Spread Betting Account

CMC Markets has no minimum deposit requirement on its Spread Betting Account and offers spreads of as low as:

• 0.7 points on EUR/USD
• 0.9 points on GBP/USD
• 1.0 points on the UK 100

UK-based clients are able to spread bet without paying any commissions, however, if a position is held overnight, there will be holding costs. In Forex spread betting, holding costs will be calculated as follows:

• Buy position holding rate = tom-next (tomorrow to next day) rate % + 0.0027%
• Sell position holding rate = tom-next (tomorrow to next day) rate % – 0.0027%

CMC Markets best UK spread betting platform comes with the following key features:

• Advanced charting tools and layout management
• 100 built-in technical indicators
• Automatic pattern recognition
• Client sentiment analysis
• Advanced order types and automatic execution
• 1-click trading directly from the chart
• Mobile apps for on-the-go trading

Overall, CMC Markets offers competitive costs for trading CFDs and spread betting. Professional clients that open an account with this award-winning provider can qualify to gain monthly cash rebates (CMC Markets paid £14.1 million in cash rebates during the previous fiscal year).

Open a demo account >>Visit CMC Markets >>

Axi Is The Great MetaTrader 4 Low Spread Broker

Our research has concluded that among the leading regulated brokers in the UK that we’ve reviewed, Axi (formally AxiTrader) stands out clearly offering the best MT4 platform trading conditions.

The AxiCorp group was established in Sydney, Australia, in 2007 by a team of professional traders. Axi UK represents a trading name of AxiCorp Limited registered in England under registration number 06378544. AxiCorp is authorised and regulated by the following regulatory financial authorities:

• Financial Conduct Authority (FCA) in the UK, with reference number 509746
• Australian Securities and Investments Commission (ASIC) in Australia with AFSL number 318232
• Dubai Financial Services Authority (DFSA)

Axi offers a MetaTrader 4 package that includes a full set of functions such as charts, alerts and analysis tools. The most popular trading platform is available for:

• Desktop PC
• Mac operating system
• Android
• iOS (iPhone, iPad)
• WebTrader

Lower costs, faster execution, better pricing

What really impresses with Axi’s MT4 offering is the network technology used, which allows for considerable latency reduction. As a result, the probability to experience slippage is also reduced drastically, which translates into lower trading costs compared to a standard connection.

Due to lower latency, Axi’s system refresh speed is increased, which ensures better pricing received by clients. This is especially valid during times of high market volatility and/or low liquidity such as those surrounding major political events (presidential election).

Since Axi’s pricing is derived directly from a source of up to 20 independent market makers, the broker’s network is not reliant on ECN-style technology. As a result, the company’s pricing is delivered faster, refreshes faster, features more depth and fewer outages.

Axi’s specialised low latency network enhances clients’ back end execution, meaning they will enjoy faster speeds and greater reliability compared to the same setup in the same conditions on a different network.

MT4 Trading Instruments and Features

 With Axi’s MT4 offering, UK-based clients are granted access to over 150 trading instruments, including major, minor and exotic currency pairs, commodities and indices.

Forex traders can closely monitor market movement thanks to real-time pricing. They have the freedom to choose:

• how market data is visualised with MT4 live charting options
• take advantage of automated trading via Expert Advisors
• automated news updates.

Another notable feature is the Autochartist MetaTrader Plugin, the world’s first market scanner that allows traders to view all symbols and all time periods from a single chart. It continuously scans markets for real-time pricing, automatically recognises trade setups and alerts clients to unbiased market analysis. The Autochartist feature is also available on a demo account with the broker.

The Autochartist MT4 Plugin allows for:

• continuous intraday market scanning
• automated technical analysis
• detailed performance statistics
• volatility analysis and more

MetaTrader 4 Multi Account Manager

Axi offers a unique solution for money manager through its Multi Account Manager (MAM) software that it’s integrated with the MetaTrader 4 trading platform. UK professional traders interested to take advantage of the Axi MAM solution can expect the following benefits:

• Unlimited number of managed accounts
• Includes all the features that come with Axi Standard Account
• Increased speed
• 6 allocation methods (Lot Allocation, Percent Allocation, Proportional By Balance, Proportional By Equity, Equity Percent Allocation and Allocation by Equal Risk)

Summary of Best MetaTrader 4 Broker in the UK

In conclusion, Axi’s MT4 offering may suit all types of trading styles, from scalping to swing trading. Axi is handling more than $100 billion in trading volume for its client’s base of 40,000 trading accounts from over 100 countries that are managed from 8 international offices. The live forex spreads start as low as 0.8 pips on EUR/USD respectively 1.8 pips on GBP/USD (Standard Account).

Open a demo account >>Visit Axi >>