FX or foreign exchange market otherwise known as forex is a trading platform with record of over $5 trillion per day. The strong liquidity and size of the trade volume has made it a honeycomb for traders. If you reside in the United Kingdom and you want to join this trading platform, this post will reveal the top 8 Forex brokers in UK you can trade with.
It is important that you know that forex trading does not have a clearing house or central exchange. This has made it non-transparent and very vulnerable to manipulations and malpractice by traders. The FCA (Financial Conduct Authority) acts as a watchdog to ensure that business conduct is ethical and free in the UK.Forex brokers in UK that pass the FCA standard test must ensure they adhere to the industry standards. The most important of these standards is that firms keep clients funds separate from company funds.
Traders in the United Kingdom can trade with any broker. Nevertheless, to be on the safer side, it is recommended that you only trade with EU licensed and regulated brokers; this provides security and assurance that you are not getting scammed.
At the mention of a trading broker, two cities come to mind – London and New York.
However, London beats New York when Forex market is to be discussed.
You must take proper care to do some in depth research into any forex broker before registering with them. I have made your research a whole lot easier by offering to you today a list of best forex brokers in the United Kingdom for you to choose from.
The following are UK top 8 FCA approved forex brokers listed in no particular order based on a group of factors ranging from security, stability of funds and trading platforms etc. You might want to consider factors like markets available, execution software and competitiveness of spreads before picking one.
When it comes to choosing a trading platform, a lot of brokers are faced with the tough decision of picking a broker with Ecn, Stp or a combination of both.
We have picked only the best UK STP/ECN brokers to make the decision simpler for you. Before we proceed, let us talk about “true ECN” and it’s implication to brokers and trading platforms.
True ECN Forex brokers in UK
Like you, many traders are on the search for a “true ECN broker “but you are faced with a problem; non-existence of pure Ecn brokers. Now, there are brokers who do a combination of both (ECN + STP) but a combination cannot beat something pure. You get?
To simplify things a little bit, ECN stands for “Electronic Communication Network”, while STP means “Straight through Processing”.
A broker who runs the STP structure is referred to as a no-dealing desk broker that is faced with two options when an order is received from a customer. The two choices are:
- Process the order internally
- Turn it to its liquidity providers
The first choice is almost the same thing to what a market marker does, but there is a slight difference. Everything is done automatically when the order is handled internally or turned over to liquidity providers, with no interference and intervention, as a market marker would do instead in some cases.
If that is the case, why does an Ecn possess this Stp structure combination?
Easy, the reason is… There is lack of instantaneous execution of an order in pure Ecn, even in the price you want. It only becomes executed when there is a counterparty taking on a contrary position.
But with a bit of love touch from STP modality, the broker is rest assured that his or her orders are executed at the set price in light speed because he can act as counterparty automatically or as a result of a direct counterpart in the Ecn.
Everything is pretty much designed to provide customer with the best experience, ensuring they have the option to either close or open their trade very fast.
List of ECN/STP Forex brokers in UK
Here is the list you have been waiting for. 8 of UK very own best brokers headquartered in the United Kingdom.
FxPro is one major player in the game of forex trading. It has been one of the best brokers In the UK. Through its cTrader platform, it offers a NDD account, with spread from 0 pips. This UK trader offers a comprehensive view of the market depth.
“AT” began business activities back in the year 2001 in Switzerland but later moved to London in 2005.
Admiral Markets ran business out of UK in the city of St. Petersburg in 2001, but proceeded to London in 2013.
ADS Prime by ADS Securities London
ADS Prime is part of ADS Securities London. It is an independent broker based in London, plus its part of the ADS Holding LLC of Abu Dhabhi.
LCG – London Capital Group
LCG is another forex broker in UK that provides its customers with a great ECN structure. It’s an acronym that represents “London Capital Group”.
This is part of the multinational Capital Group that owns offices all around the globe with one in London.
Forex Capital Markets also known as FXCM started operations in the USA on the year 1999 and was a major player of internet-based trading. It made the list of Inc.500 list of America’s Growing Companies three years in a row. Like PhilipCapital UK, it is also a global company with offices in places such as Australia, France, Italy and the UK. It’s headquarter is in New York.
It follows the regulation rules of each state it has an office in. FXCM is a publicly traded company based on Nasdaqexchange, a major U.S exchange.
FXTM is also known as Forex Time. This company was founded in 2012 and is considered a freshman to the world of online trading scene. However, within a short period of two years, this new company that made it to our list of best forex brokers in UK became successful and carved out a portion of the “big boys cake” for itself after it bagged the award of “Best Newcomer 2013” and “Fastest Growing Forex Broker”. Forex Time headquarter is situated in Cyprus and follows the regulations of FSB as well as IFSC of Belize.
Just like I said earlier, in no particular order, this is the list of top 8 Forex brokers in UK you can choose to trade with if you reside in the United Kingdom.