Best Forex Brokers for Beginners in the United Kingdom

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Posted by: Freddie NorthOctober 11, 2021 Updated: October 12, 2021

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Parts of Best Forex Brokers for Beginners in the United Kingdom
 

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If you have decided to trade in the UK market, choosing the right Forex broker is paramount. Most companies offer services for beginners, but which one is the best?

Inexperienced traders need a user-friendly platform that facilitates learning. We have looked at demo trading opportunities, educational content, and other features to present 10 recommended brokers in 2021

TOP 15 Forex brokers review

Risk Warning

We have researched dozens of brokers providing services in the UK. Our experts compared the background and legal status, key strengths and weaknesses, deposit requirements, withdrawal conditions, and other factors. Here are 10 companies we recommend with confidence.

1. eToro

eToro UK

This London-based broker has a strong focus on social trading. You can buy and sell stocks, currencies (47 pairs), ETFs, stock CFDs, indices, cryptocurrencies, gold, and silver from the same account. There are substantial fees for inactivity.

Members have access to free courses and webinars. Demo accounts are free, too. If you sign up using a referral link, you can get $50 as a sign-up bonus.  Read about eToro Minimum Deposit.

Since its emergence in 2004, the network has attracted 6 million investors worldwide. The broker is regulated in the UK, Australia, and Cyprus. Through the system, traders can easily follow and copy each other. 

For traders based in the UK, the minimum deposit is $200 ($500 for bank wire). Conversion from pounds to dollars is automatic, and the withdrawal fee is fixed ($5). You will need to use the same method for depositing and withdrawing: MasterCard and Visa, PayPal, or bank transfer. 

2. Avatrade

Avatrade Broker

This award-winning broker gives access to an array of markets. Opening an account is easy, the spreads are tight, and the research tools are multifaceted. On the downside, the fees for inactivity are relatively high, while the Forex fees are average. 

New clients may be eligible for a generous welcome bonus. The broker gives up to 40% of the deposit. This amount is calculated based on a sliding scale, and it is capped at $16,000. 

Avatrade was established in 2006. All of the instruments are traded via CFDs, and copy trading is available. The company is authorized in Ireland, the British Virgin Islands, and other jurisdictions. 

New users need to transfer at least $100 to their balance. Withdrawals are free of charge, which is a major advantage. A wide range of methods is accepted: MasterCard and Visa, bank transfers, and e-wallets. 

3. FxPro.com

FXPro broker

This global broker has garnered over 60 industry awards. Some of its key strengths are excellent customer service and zero fees for deposits and withdrawals. On the flip side, the cost of inactivity is substantial, and the trading stock CFDs is relatively expensive. There are no bonuses, but demo accounts are free.

Like Avatrade, this company was established in 2006. It is regulated in several jurisdictions aside from the UK — Cyprus, Bahamas, and South Africa. The broker offers Forex pairs and an array of CFDs — a relatively modest selection. 

The lowest acceptable deposit is $100. Withdrawals are free through a wide range of methods: MasterCard, Visa, bank transfers, and e-wallets. 

4. IQ Option 

IQ Option United Kingdom

Does not accept UK clients after Brexit.

IQ Option is one of the well-known Forex or CFD trading platforms. Good programmers and analysts created an online broker in 2013; therefore, it has a high class of service and many features that are steadily attracting new users to it today. Convenient mobile application as well as the ability to trade from a PC.

Beginners need to deposit a minimum of $ 10. For replenishment, you can use MasterCard, Visa, bank transfers and e-wallets.

5. FXPRIMUS (FXPrimus.com) 

FXPRIMUS platform

This broker offers an easy-to-use and secure platform and ECN accounts without commissions. It has a wealth of educational resources for beginners, useful trading tools, and competitive spreads. However, the best conditions are provided to holders of VIP accounts, and spreads are only floating. The company gives a 100% bonus to new users up to $10,000. 

The broker was established in 2009, and it is regulated in three jurisdictions outside of the UK — Cyprus, Vanuatu, and South Africa. The asset range includes CFDs on a variety of underlying assets — currencies, cryptocurrencies, indices, stocks, metals, and energy. 

The minimum deposit is $100. Withdrawal fees apply to some of the payment methods. Funds may be transferred via Mastercard and Visa, bank transfers, and a wide array of e-wallets. 

6. Pepperstone

Pepperstone

This Australian provider offers quick account registration, flexible digital access, and excellent customer support. Transfers to and from your account will be convenient, and the spreads on Majors are very tight. On the downside, the choice of instruments is limited to Forex pairs and CFDs. The company does not offer bonuses, but you can try their demo for free. 

The company was incorporated in 2010, and it opened an office in London in 2015. After Brexit, traders from the EU have been served by other branches. The broker has approval from regulators in the UK, Germany, and Australia.

There is no minimum deposit for the Standard account. For UK residents, withdrawals are free, but the conversion fee applies. The payment methods include MasterCard and Visa, bank transfers, and PayPal. 

7. Forex.com

Forex.com UK

This broker boasts some of the lowest Forex fees in the industry. It offers a wide variety of pairs (90) and over 4,500 markets. This is the biggest MetaTrader broker of 2019, and its research tools are very diverse. On the downside, the fees for CFD trading are not the lowest. The welcome bonus promotion allows you to get 20% on your first deposit — up to $5,000. 

This broker has been in business for two decades — since 2001. Its parent company StoneX Group Inc is listed on the NASDAQ Stock Exchange. Forex.com is regulated in several jurisdictions, including the UK and the US. Traders can access Forex, CFDs (stocks, indices, commodities), and cryptocurrencies. The demo account is free for 90 days.

The minimum deposit is $100. You can use MasterCard and Visa (some types only), PayPal, or bank transfer. All withdrawals are free.

8. IG

IG

This is one of the few brokers listed on the London Stock Exchange. IG is the biggest provider of CFDs worldwide. Oversight from top-tier regulators, a user-friendly platform, and excellent educational tools are the biggest advantages. However, the portfolio is relatively limited, and fees for trading Forex and CFDs are quite high. Currently, the company offers a referral bonus (£100 per friend, up to £500).

This UK-based broker was established in 1974. It is authorized by the local FCA, as well as BaFin in Germany, and other global regulators. The range of assets includes Forex, CFD, options, ETFs, stocks, IPOs, and Robo-advisory in the UK. You can open a demo account for free and use a wealth of educational resources. 

The broker does not require a minimum deposit for bank transfers (it is $300 otherwise). All withdrawals are free. Clients can also transfer funds via MasterCard and Visa and PayPal. 

9. Capital.com

Capital.com

This broker boasts some of the tightest spreads, a great trading platform for Forex and CFDs, and multilingual support (24 languages!). Its vast range of assets includes mutual funds. The biggest drawbacks are the overnight fees and the absence of price alerts on the web platform. The company offers a free demo and a referral bonus — up to $100. 

The company was registered in 2016. Aside from the UK (London), it has branches in Cyprus and Belarus. Capital.com is licensed in all three locations. Clients can trade in over 3,000 markets: Forex, CFDs, and crypto. 

The minimum deposit is very low — $20 if you use MasterCard and Visa or Apple Pay. With bank transfers, the requirement is at least $250. No withdrawal fees are charged, and you can use the same methods as for deposits. 

10. FXCM

FXCM

This broker has excellent tools for technical traders and plenty of educational content. Accounts are easy to set up. On the flip side, the range of instruments is limited to currencies and CFDs. The absence of two-factor authentication makes trading less secure, and the withdrawal fees are quite high. 

Users enjoy cashback rebates for trades, and they also get a switch bonus if they come from a competitor ($25). The demo account is free and comes with $20,000 in virtual money. 

Forex Capital Markets is based in the UK. Established in 1999, it belongs to the Jefferies Financial Group, a company listed on the New York Stock Exchange. Outside the UK, the company is regulated in Australia and South Africa. Traders can enter the markets for currencies, CFDs (stocks, indices, commodities), and cryptocurrencies. 

The minimum deposit is $300. Withdrawal is free unless you use a bank transfer. The other methods are MasterCard, Visa, and electronic wallets. 

11. Markets.com

This veteran CFD and Forex broker has been in business for over a decade — since 2008. It is a subsidiary of Finalto Limited, a UK-based constituent of Playtech, which is aт FTSE 250 listed company (LSE: PTEC). The provider is safe to trade with, as it is regulated by the CySEC and the FCA. 

The company offers a broad range of digital tools and 2,200+ instruments. Aside from currency pairs, commodities, and indices, clients may trade over 2,000 shares, 60 ETFs (exchange-traded funds) and 23 stock blends (handpicked and themed baskets). Only one account type is offered, but there is a demo mode. 

Currently, the broker does not offer incentives for UK-based traders, but conditions for no-commission trading are competitive. In addition to MT4 and MT5, clients may use Marketsx and Marketsi for CFD trading and portfolio investments, respectively. The company’s software lets you work with 11 base currencies, and the tightest spread is 0.6 pips (EUR/USD).

Markets.com supports all strategies and gives access to unique diversification tools. The company’s Knowledge Center offers a wealth of data for effective forecasts. For example, the XRay tool is a personalized service for streaming financial commentary.

The minimum deposit requirement is £100. Deposits are accepted via Visa, Mastercard, e-wallets, and Fast Bank Transfer. No fees apply to deposits and withdrawals. 

12. ThinkMarkets

This broker headquartered in London and Melbourne is the Best CFD Provider according to the City of London Wealth Management Awards in 2021. Founded in 2010, it is regulated in several jurisdictions by the ASIC, the FCA and the FSCA. Its key strengths include a powerful platform (ThinkTrader), attractive trading conditions, and 24/7 support. 

The company does not offer deposit bonuses or loyalty systems. However, it has tight spreads (0.1 pip for EUR/USD), modest fees on the ECN account for currencies and metals (from £2.5) and reliable VPS with 0.01% downtime. Clients may choose between the ECN and the market-maker model. 

Three accounts are available: standard, ThinkZero, and Professional. The company offers over 1,600 instruments in total, including 38 currency pairs, 15 indices, and 1,500 CFDs on shares and ETFs. 

While ThinkTrader is designed for desktop use, clients may also trade using browsers and mobile devices with MT4 and MT5. Social trading is supported via the ZuluTrade platform. Overall, the company’s offerings suit the needs of most users, beginners and pros. 

Standards accounts do not have a minimum deposit requirement. Aside from debit and credit cards, clients may use bank transfers and e-wallets including BitPay. No fees apply. 

13. City Index

This broker is one of the best intermediaries for beginners. It is a subsidiary of GAIN Capital Holdings Inc, which was established in 1999 to provide affordable access to FX markets. The brand is regulated by the FCA and the ASIC.

The company’s key strengths are modest FX trading and withdrawal fees. Overall, clients have access to 12,000+ markets including 4,500 stocks and 21 global indices traded via CFDs. The spreads can be as low as 0.5 pips.

Three account types are available: Trader, Premium Trader, and Professional. Members from the UK may also open a Self-Invested Personal Pension (SIPP) account. Clients choose between MT4 and the company’s own platform for CFDs trades. 

The only bonus mentioned on the site applies to Pro accounts (£1,000). Their holders also get cash backs, VIP services and assistance from a client relationship manager. This requires an investment of £500,000. 

All members can access a rich set of training resources for all levels. The company holds webinars and shares videos to help clients master the markets. Overall, this is a strong broker for novices and intermediate traders who do not need ECN functionality.

You can start with £100. The company accepts bank wires, credit and debit cards, and PayPal. All transfers are free of charge. 

14. XTB

This brand has headquarters in the UK, Poland, and Spain. It was established in 2002 and holds licenses from the IFSC, the FCA, the CNMV, and the KNF. XTB is an exchange-listed Forex and CFD broker with a comprehensive set of markets and assets. 

XTB offers 2,100+ instruments, including commodities and shares via CFDs. You can earn cashback on closed positions, and the minimum spread is only 0.5. The demo mode works for four weeks and comes with a hefty balance of £100,000. The website includes a wide selection of educational resources for different levels. 

On the downside, the welcome bonus is unavailable for clients from the UK, and just two accounts — standard and swap-free — are offered. Clients may choose between the company’s own platform xStation and MT4. Both are customizable and user-friendly, while their mobile versions let traders work on the go. Overall, XTB is most attractive for beginners due to its advanced demo account and training resources

There is no minimum deposit requirement. In terms of payment methods, the choice is wide: bank wires, credit and debit cards, Paypal, and Paysafe. No deposit or withdrawal fees apply.

15. CMC Markets

This financial services company has a rich history, as it was founded in 1989. Headquartered in the UK and Germany, it is regulated by the FCA and BaFin. In addition to Forex and CFDs, this company lets you trade Treasuries, and a whopping 10,000+ instruments are offered in total. 

Every member that refers a friend who opens a CFD account may be eligible for a generous bonus ($250 for the trader and referral). The broker offers three types of accounts: spread betting, CFD, and corporate. The first option lets UK-based traders gain profit without capital gains tax or forex fees. The typical spreads start from 0.74 pips (EUR/USD). 

In terms of software, you have a choice between MT4 and the company’s proprietary product ‘Next Generation’ with 115+ indicators and drawing tools. Desktop and mobile use are supported, so clients may trade on their tablets and phones. However, it is the tax benefits that make CMC Markets particularly attractive for traders in the UK. 

Clients may start with any deposit. To make a payment, you may use bank transfers or Visa/MasterCard. Withdrawals and deposits are free. 

  1. eToro

Bonus: $50

Assets: 3,000+

Min. Trade: $1,000 (exceptions: stocks and CFDs $50; crypto $25)

  1. Avatrade

Bonus: up to $16,000

Assets: 250+

Min. Trade: 0.01 Lot

  1. FXPro.com

Bonus: — 

Assets: 400+

Min. Trade: 0.01 Lot

  1. Plus500

Bonus: depends on the first deposit

Assets: 2,000+

Min. Trade: varies

  1. FXPRIMUS

Bonus: up to $10,000

Assets:120+

Min. Trade: 0.01 lot

  1. Pepperstone

Bonus: — 

Assets: 1,000+

Min. Trade: 0.01 lot

  1. Forex.com

Bonus: up to $5,000

Assets: 4,500+

Min. Trade: 0.01 lot

  1. IG

Bonus: up to £500 for referrals

Assets: 17,000+

Min. Trade: 0.01 lot

  1. Capital.com

Bonus: up to $100 for referral

Assets: 3,000+

Min. Trade: 0.01 lot

  1. FXCM

Bonus: $25 for switch 

Assets: 80+

Min. Trade: 0.1 lot

  1. Markets.com

Bonus: — 

Assets: 2,200+

Min. Trade: 0.1 lot

  1. ThinkMarkets

Bonus: — 

Assets: 1,600+

Min. Trade: 0.1 lot

  1. City Index

Bonus: £1,000 (Pro)

Assets: 12,000+

Min. Trade: 1 lot

  1. XTB

Bonus: — 

Assets: 2,100+

Min. Trade: 0.01 lot

  1. CMC Markets

Bonus: $250 for referral

Assets: 10,000+

Min. Trade: 0.1 lot

What is the best forex broker for beginners in the UK

Comparison Table

UK BROKERLOWEST EUR/USD SPREADMINIMUM DEPOSITMAX RETAIL LEVERAGEMAX PROFESSIONAL LEVERAGE
eToro3$20030:1400:1
Avatrade0.9£10030:1400:1
FXPro.com1.2£10030:1500:1
Plus5000.6£10030:1300:1
FXPRIMUS0.4£10030:1500:1
Pepperstone0.630:1500:1
Forex.com1.1£10030:150:1
IG0.6£25030:1222:1
Capital.com0.6£20-25030:1200:1
FXCM0.7£30030:1400:1
Markets.com0.6£10030:1300:1
ThinkMarkets0.1£030:1500:1
City Index0.5£10030:1400:1
XTB0.530:1500:1
CMC Markets0.730:1400:1

If you are looking for the best Forex broker for beginners, analyze the offerings thoroughly. Different companies provide services in the UK but their conditions vary greatly. Consider the following to avoid fraudulent sites:

  • Credibility (Is the broker licensed to operate in the UK? Will it protect your trading interests?)
  • Platform (Are its features customizable and beginner-friendly?)
  • Charges (How much do you need to deposit? Are there overnight or withdrawal fees, charges for inactivity, etc.?)
  • Customer support (Is the team responsive? Can you contact them every weekday?) 
  • Demo account (Can you practice for free?)
  • Payment methods (Can you use the most convenient systems?)
  • Customer recommendations (Do other traders recommend this provider?)

5 Features You Should Look for in a Forex Trading Account for Beginners

Choosing the best Forex Broker for beginners in the UK is not easy. You need to know at least the basic terminology first. Here are five factors to help you compare brokers. 

How to choose brokers for beginners

1. Minimum deposits

Modern brokers provide affordable entry. Some do not have any minimum requirements at all. For example, this is true for Pepperstone. 

2. Small trading sizes

1 lot in Forex equals 100,000 units of the respective currency (e.g., 1 lot USD means $100,000). Choose accounts with modest trading volumes, such as 0.01 lots or 0.1 lots. This is typical for Micro and Mini accounts, respectively.

3. Leverage

Leverage allows you to trade more than you have by borrowing from the broker. For instance, the 1:100 ratio means you can open a trade worth $10,000 after depositing only $100. However, risks are magnified along with potential profits, so steer clear of leverage until you gain experience. With any broker authorized only by the EU entities like the CySEC, Forex leverage is limited to 1:30. 

Leverage analyzing

4. Fixed spreads

This is the gap between the Ask and Bid price, and a source of profit for the broker. Fixed spreads are preferable for newbies as they can evaluate their profits more easily. Floating ones change all the time. 

5. Forex education

Choose a broker with ample educational features. Beginners need access to articles, tutorials, webinars, and other sources of information from experts. These should cover both technical and fundamental strategies. 

Conclusion

Finding the best Forex broker is a challenge, especially for beginners. If you want to trade the global markets in the UK, our list of recommended companies will help you. Each of these providers offers plenty of educational resources and support. Create a demo account today, start learning, and achieve financial freedom!

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