UK forex traders can access some of the world’s top ECN brokers without a dealing desk. ECN forex brokers give UK traders access to lower spreads like GBP/USD and direct market access for price transparency, so there are no markups.
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Our list of the best brokers for ECN trading were 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
9.33 |
FCA, ASIC CySEC, DFSA |
1.12 | 1.69 | 1.22 | 0.1 | 0.6 | 0.3 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
|
4.83 |
DFSA, FCA ASIC, FMA |
1.2 | 1.3 | 1.3 | 0.44 | 0.85 | 0.42 | $3.50 |
|
|
|
90ms | $0 | 72+ | 11+ | 30:1 | 400:1 |
|
|
6.67 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
|
|
|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
|
|
7.83 |
FCA, FINMA MAS, DFSA, MFSA |
1.7 | 2 | 1.6 | - | - | - | 2 |
|
|
|
170ms | $1000 | 76+ | 26+ | 30:1 | 400:1 |
|
|
7.93 |
ASIC, FSCA FCA, CIRO AMF, ISA, CySEC |
1.3 | 1.4 | 1.7 | 0.30 | 0.90 | 0.40 | $3.00 |
|
|
|
150ms | $300 | 42+ | 7+ | 30:1 | 500:1 |
|
|
7.46 |
FCA, FSCA CySEC, SCB, FSCM |
1.32 | 1.7 | 1.95 | 0.32 | 0.37 | 0.51 | $3.50 |
|
|
|
151ms | $0 | 69+ | 30+ | 30:1 | 200:1 |
|
Based on our top UK forex broker list, we shortlisted the ECN brokers with straight-through processing and rated each provider based on spreads, trading platforms and customer service. This included an interactive spread module to demonstrate the depth of liquidity provided by each forex broker.
Pepperstone’s Tools And Features Allows For Fast Speed And Tight Spreads Making It The Best ECN MetaTrader Broker
We rated Pepperstone the best ECN broker in the UK based on five factors:
Pepperstone ReviewVisit Pepperstone
Like all ECN brokers, we’re dealing with an entity that abides by the standards and rules imposed by the local regulatory watchdogs and more:
According to our research, Pepperstone is the best UK ECN MetaTrader broker due to its superior financial services that come in the form of:
Our team of industry experts will highlight the main Pepperstone features that recommend this ECN broker as the top choice for 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. Study the table below for a quick spread comparison offered by UK ECN forex brokers.
| Average Spreads (02/01/2020) |
EUR/USD | USD/JPY | AUD/USD | GBP/USD |
|---|---|---|---|---|
| Pepperstone | 0.16* | 0.25* | 0.27* | 0.49* |
| IC Markets | 0.1* | 0.2* | 0.2* | 0.4* |
| IG Markets | 0.263* | 0.293* | 0.512* | 0.992* |
| CMC Markets | 0.805 | 0.879 | 0.751 | 2.793 |
| AxiTrader | 0.44* | 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 and 2.793 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:
ECN Forex Brokers with Fast Speed
The benefit of true ECN forex brokers is that you can trade with fast order execution speed. Pepperstone can offer UK forex traders the ability to rapidly deal through MT4 and MT5 trading platforms. Pepperstone executes $12.55 billion worth of trades daily. 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 executed at the best available market prices. We also ran the tests via a MetaTrader 4 demo account.
Our Final Thoughts On Why We Rated Pepperstone The Best ECN Forex Broker
The automatic price improvement technology used by Pepperstone, and the tools and features, mentioned above 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 mediator between the UK retail investors and the foreign exchange market, you can trade with peace of mind directly on the interbank spot rates.
View Pepperstone ReviewVisit Pepperstone
FxPro’s Asset Range, Execution Speed, And Tight Regulation Make It The Best NDD Broker
UK-based traders who want unfiltered access to the forex market can conduct business through a no-dealing desk (NDD) forex broker like FxPro. Headquartered in London, FxPro operates across 173 countries worldwide. FxPro also has 4 industry licences (FCA, CySEC, FSCA, and SCB) which show that the brokerage trading firm operates lawfully and your funds are safe.
No dealing desk execution is superior for the following reasons:
Trade execution speed (FxPro advertise 11.06 milliseconds average execution time)How FxPro No Dealing Desk Execution Model Works?
To understand how FxPro processes your orders, our devoted team of experts has tested whether or not FxPro is a true ECN broker. Unlike dealing desk brokers who mark up the wholesale price feed, ECN brokers can offer raw spreads. After conducting a real-time spread comparison, our rigorous process concluded that the spread size shown by FxPro is higher. Most UK ECN brokers can keep the spread lower.
For example, the GBP/USD spread depends (fixed spreads and variable spreads) on the trading platform used and the execution model:
The total costs offered by FxPro are more comparable with market maker forex brokers. This begs two questions that our experts at Compare Forex Brokers will answer:
FxPro is not a true ECN broker because it matches some client orders internally. In the electronic communication network environment, the forex brokers pass the orders to their liquidity providers. FxPro can be considered a hybrid type of ECN broker as there is no dealing desk intervention.
FxPro is not a true STP (Straight Through Processing) broker, but at the same time, they use STP technology with their order execution engine. FxPro uses its price aggregator Quotix, which is co-located inside the Equinix FX Ecosystem (LD5 London or Amsterdam).
ECN Brokers Real-Time Speed Test
FxPro claims its price engine is ultra-fast, as orders are executed in less than 11.06 milliseconds, with up to 7,000 trades processed each second. Our team of experts tested the fast order execution speed claim and found the following real-time ECN execution speeds:
Compared to other UK-based forex brokers, FxPro comes in third place for both market order and limit order execution speed. Only Pepperstone and FP Markets can boost award-winning execution speeds.
Summary – Why FxPro is Among the Best Forex Brokers with NDD Model
The wide range of asset classes, fast order execution speed, reduced slippage, and tight regulation have boosted FxPro to the top of the list for the best forex brokers with no dealing desk execution models. Check the top five reasons to choose the FxPro trading account here FxPro Review and learn why FxPro is one of the best spread betting platforms UK. Please note that to gain access to a demo account, you must follow the standard procedures for opening a live trading account and submit your legal documents.
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*Your capital is at risk ‘78.87% of retail CFD accounts lose money’
Axi Has A Wide Range Of Financial Instruments And Markets To Trade
UK retail traders can directly access 145 currency pairs and CFDs in total. Axi blends the bid and asks for quotes from multiple sources of liquidity providers. It allows Axi to have low spreads starting from as low as 0.0 pips. However, the typical average spreads found with the Axi trading account are:
72 currency pairs (major, minor, and exotic pairs)
UK retail traders can directly access 145 currency pairs and CFDs in total. Axi blends the bid and asks for quotes from multiple sources of liquidity providers. It allows Axi to have low spreads starting from as low as 0.0 pips. However, the typical average spreads found with the Axi trading account are:
Note* Trading CFDs and forex trading on Axi Pro account come with a commission fee of GBP 4.50 per side per one standard lot (or $7.00 commission round-turn trading costs).
UK Forex Brokers with Price Improvement Technology
Not all MetaTrader 4 trading platforms can bring advanced trading capabilities. However, Axi combines its vast pool of liquidity providers (global banks and financial institutions), its dedicated collocated infrastructure, and fibre optics to provide UK forex traders with improved price technology.
The ECN trading liquidity can give UK-based traders a superior advantage, especially during volatile times when the exchange rates can suddenly move. The price stability offered by Axi creates a suitable trading environment for scalping.
Summary – UK ECN Brokers with Biggest Range of Markets
Overall, Axi can be the one-stop trading partner for UK residents seeking to trade CFDs and forex trading from one platform. Axi MT4 standard and Pro accounts don’t require an up-front initial deposit. This is a positive as you can start testing your trading strategies without risking, which is the case for the best UK forex brokers.
IG Markets’ Liquidity Providers Include Numerous Financial Institutions And Major Banks
For our ECN Brokers UK review, we assessed the forex institutional liquidity providers included by the UK forex brokers and discovered that IG Markets has the biggest liquidity providers. Our team of FX experts has conducted a detailed analysis of the best UK ECN forex brokers to see who has a better relationship with the FX liquidity providers.
IG Markets unites liquidity providers of around 12 financial institutions and major world banks, including:
All these liquidity providers compete equally to give UK-based traders the best available bid and ask quotes. In theory, the more forex liquidity providers supply their feeds, the more competitive the spreads are.
Forex Brokers with Dedicated DMA Trading Platform
IG DMA passes client orders directly to the liquidity providers via their dedicated L2 Dealer platform. This proprietary trading platform was developed in-house by IG experts, and it can give UK traders direct market access to:
Note: Forex DMA is only available for UK professional traders such as investment managers, fund managers, and forex analysts who make a salary in the financial field.
To qualify for an IG professional account, UK residents must meet at least two criteria from the following requirements:
The L2 Dealer DMA platform offers a superior technological solution for both CFD trading and forex trading. Besides gaining access to top ECN liquidity providers, the IG DMA platform offers the following advantages:
What are the Total Costs Trading via DMA Platform?
At IG DMA, there is no dealing desk intervention. UK-based traders execute their orders with no additional markups on the spread. The forex prices are quoted directly from IG’s liquidity providers. The IG typical average spreads are 0.165 pips for EUR/USD respectively 0.589 pips for GBP/USD (according to the data compiled for the 12 weeks ending 19th Nov 2019).
While IG Markets doesn’t mark up the spreads for the DMA account, it charges a commission based on the volume traded in the prior month. UK forex traders can expect to pay $6 in commissions for every 100,000 units traded (based on $100 million volumes traded.). Traders must generate at least $500 million in volume to benefit from more competitive spreads. The forex commission drops to $3 per side for this type of trading volume. With Pepperstone and IC Markets you can get lower forex commissions without the need to generate such a high trading volume.
Note* For share trading, besides the regular fees, you may be liable for paying exchange data fees.
Summary – IG The Best UK Broker with the Most Liquidity
The IG DMA account is equipped to give UK traders direct market access to trading forex and CFDs. Due to the strong relationship with the leading providers, IG Markets can offer UK traders fast order execution speed of 14 milliseconds. IG is a trustworthy name with a rich history and infrastructure to satisfy the needs of the most sophisticated UK traders. You can download the L2 Dealer platform for free for desktop and mobile trading.
Swissquote’s Retail Investor Accounts Have Zero Commission Trading
With more than CHF 30.5 billion in client assets, Swissquote has been awarded for its competitive trading conditions and transparent pricing policy. Compared to other UK ECN brokers, Swissquote ranked on top of our star scoring system for the best variable spreads. The Swissquote offering includes 4 account types, but there are only 2 retail investor accounts, namely:
Both of the retail investor accounts have 0 commission trading. Swissquote offers variable spreads on over 130 currency pairs and CFD instruments (precious metals, stock indices, commodities, and bonds).
Note* Swissquote Elite and Professional accounts charge the raw spreads and the typical ECN commission.
What are the Typical Variable Spreads Offered by Swissquote?
Our team of FX experts conducted a detailed comparison of the variable spreads offered by the UK’s best forex brokers. We have concluded that Swissquote has the best offering. The variable spread accounts typically have no commissions on trades or any other additional fee. UK traders can expect a minimum spread of:
Risk Warning: Please note that depending on the market conditions, the floating spreads can widen considerably. The table below compares the market maker spreads offered by UK forex brokers with spread-only accounts.
| Currency Pair | Swissquote Prime | OANDA | AvaTrade | FXCM | Dukascopy | EasyMarkets |
|---|---|---|---|---|---|---|
| EURUSD | 1.0 | 1.1 | 1.3 | 1.4 | 1.8 | 1.8 |
| EURGBP | 1.2 | 1.4 | 2.0 | 2.4 | 1.4 | 3.0 |
| AUDUSD | 1.0 | 1.2 | 1.8 | 0.8 | 1.7 | 2.6 |
| GBPUSD | 1.0 | 1.7 | 2.0 | 1.2 | 2.3 | 3.3 |
| USDJPY | 0.6 | 1.2 | 1.5 | 1.6 | 1.7 | 3.0 |
Benefit from Fast Order Execution and Flexible Leverage
With Swissquote, you can benefit not only from the reduced variable spreads but also from fast forex execution speed and flexible leverage. Swissquote client orders are filled 97% of the time with an average execution speed of 27 milliseconds. The Swissquote execution model can boost the following additional advantages:
15% of client orders get price improvements (positive slippage)Swissquote also offers flexible leverage that can start from 1:30 for forex trading and can go up to 1:400 if you are eligible for the professional account. The table below compares the different levels of leverage offered by Swissquote.
Summary – Best Variable Spread Forex Brokers
The only disadvantage of floating spreads is that the bid and asks prices can widen during financial market distress. The UK-based traders can open a Swissquote trading account in over 15 supported funding currencies. Three bespoke trading platforms (MetaTrader 4, MetaTrader 5, and Advanced Trader) await Swissquote clients to conquer the financial markets.
FXCM’s Free Demo Account Lets You Learn How CFD Trading Works
FXCM offers the best demo account that perfectly mimics the same conditions found with a live ECN trading account. For every online broker we assessed, we checked whether they offered demo accounts as an integrated tool of their trading platform. Trading complex instruments such as Forex currency pairs and CFDs carries a high-risk level.
Note* The only downside found on the FXCM MT4 demo account is the maximum account balance restrictions of $50,000. Other ECN and STP brokers have more flexible demo accounts with custom balances.
Summary – Best ECN Trading Account to Practice Trading Risk-Free
FXCM demo account allows potential clients to test the financial services offered by ECN forex brokers. The demo account also permits UK FX traders to learn how CFDs work before risking their hard-earned money. FXCM’s trading platforms are fully equipped with all the tools to satisfy the needs of all traders. Click the link below to sign up for your free MT4 demo account.
*Your capital is at risk ‘67% of retail CFD accounts lose money’
Overall, Pepperstone Is The UK Best ECN Forex Broker
Compare Forex Brokers reviewed ECN brokers for forex traders worldwide with good knowledge of 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. 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:
We have a complete and detailed review of Pepperstone trading features. It includes the range of trading platforms, available instruments for trading, spreads and fees, the quality of trade execution, customer service and much more. You can find it here: Pepperstone Review 2023.
What Is An Electronic Communication Network (ECN Broker)?
ECN stands for Electronic Communications Network, a technological solution that provides 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 for quotes from a wide range of liquidity providers such as tier-one banks, licenced financial institutions, authorised brokers, etc.
We can distinguish two types of liquidity providers:
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:
The top level has tier-one liquidity providers like Deutsche Bank, Barclays Capital, JP Morgan, Citi, etc.Unlike electronic communication network brokers, STP brokers use the MTF protocol, which protects UK traders from slippage.
The first advantages of the ECN forex brokers are that the bid and ask spread is much tighter. The ECN brokers charge a typical fixed or variable commission compared to market maker brokers. 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 unsuitable for all retail investors, so before you risk your money, understand how CFDs work. Only invest money you can lose.
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