How to Find the Best Forex Broker in UK?
You will have to find the best brokers UK based on some facts. To give you the proper guideline on finding UK brokers, we will discuss the following topics:
- Forex regulation in the UK
- The process to find the best regulated forex broker UK How to open an account
- Effect of Brexit on the traders
Broker Regulations
The UK forex market is usually regulated by the Financial Conduct Authority of the UK (FCA) to ensure that the UK forex market works properly for the traders, brokers and contributes to the UK’s economy as a whole.
FCA oversees the UK brokers, while it is accountable to Her Majesty’s Treasury. However, FCA is funded by the companies that provide financial services all over the UK. FCA also works closely with the Bank of England to confirm that all the UK forex broker are operating through a healthy trading environment and serve the trader’s best interest.
A regulated broker in the UK is safe to trade as they have to maintain some strict rule by FCA, which are:
- Best brokers UK as well as other brokers should have $ 1,000,000 operating capital.
- Brokers will have to provide financial statements and audit statements to the FCA.
- They will have to be a member of the Financial Services Compensation Scheme (FSCS), which ensures compensation for the traders in case the broker goes bankrupt.
The process to Find the Best Regulated Forex Broker
Finding the best forex trading platforms in UK can sometimes be challenging as there are many regulated brokerage options available. However, all those regulated brokers don’t provide the same trading opportunities, leading you to research the brokers.
So, what should you check while researching for the best forex brokers UK?
We have made a list of some specific aspects you should check, such as:
- Regulation: This is the foremost thing you will need to check, as there are many unregulated brokers too. And, trading with unregulated brokers is risky because there is a huge possibility for you to lose money.
- Types of the Account: Usually, the best regulated forex broker UK offers a variety of account types for beginners as well as experts.
- Registration Process: According to UK law, brokers are obligated to seek some information from you, such as identity, funding sources, and assessment of your forex knowledge. By law, you will have to verify that info to register a live account. So, you have to be patient as the best forex broker UK takes time to verify all the information with proper authority.
- Payment Methods: Local payment methods will be convenient for UK traders. So, you should prioritize the brokers with easy payment methods such as local bank transfers. Besides, the popular e-wallets such as PayPal and Skrill are also easy methods.
- Attractive Spreads: Brokers with fair spreads and fees should get you to benefit over other brokers. As a British trader, you should look for the best trading platform UK with competitive spreads for the GBP currency pairs.
- UK Focused Assets: The best forex broker UK should focus on the instruments that are based mostly on the UK. For instance, you will have to search for a broker that offers stocks from UK companies and indices like FTSE100. When you find these in any broker, you can opt-in for that.
By checking these aspects, you can also find the best Islamic forex broker UK too.
How would you Find if a Broker is Licensed in the UK?
When you choose the best forex broker UK, you may want to check that broker’s license with the FCA. To do that, you will need to get the broker’s registration number first. It is a six-digit number that can be found at the footer of the broker’s website.
Once you find the number, you can check it from FCA’s register. If the broker is regulated and listed on FCA, you will see all the details such as contact details, address, and current FCA status. However, a broker can be authorized, EEA authorized, and unauthorized. You will not find any information about an unauthorized broker in the FCA database.
How to open an Account with the Best Forex Broker UK for Beginners?
You find the desired broker; it is time to open a live account with them. Whether you are a beginner or an expert, the account opening process is the same for all.
To open an account, you must provide personal information such as an address, name, email, date of birth, and phone number. Besides, your national insurance number will be required too so that the broker can confirm your tax residency status.
Some other details you will need to provide are-
- Details of your employment: Information related to employment such as occupation, employment status, and current salary.
- Info regarding funding: Source of the fund, net worth, and estimated investments are necessary elements to inform the broker, eventually the regulator.
- Details of trading experience: You will need to inform about any past investment history so that the broker can categorize you and give you proper feedback while trading.
The account opening process has not been done yet. Once you are done registration with the best forex trading platform UK, you will need to provide some additional documents too, which are mentioned below.
- Debit/ credit card or bank statement.
- Utility bill.
- Council tax bill.
- Address verification certificate from local government.
- A valid driver’s license, if you have one.
Professional Trading Account with the Best UK ECN Forex Broker
A few best trading platform UK offers professional accounts to the highly experienced traders who contain a large investment capital. However, anyone cannot open a professional trading account as it requires them to meet some conditions. Such as-
- Need to have at least €500,000 portfolio.
- Have completed at least 10 trades over the one-year period.
- Have worked or working in any financial sector for at least a year.
However, you need to meet all these three requirements. Complying any two will work fine to open a professional account.
Effect of Brexit on the Best Forex Broker UK and Trader
After a lot of dramas, the UK finally left the European Union, which had an impact on the best forex trading platform UK, eventually the traders. The UK is having a transition period now, which leads many best mt4 brokers UK to move out to other countries. Although the country is still holding the EU rules, there is a huge chance the UK will impose strict rules, which most of the best brokers UK assume.
Conclusion
The forex market is essentially competitive with many best MetaTrader 4 forex brokers UK along with the hundreds of offerings. However, if you successfully find the best forex broker UK, you should not get worried about the competitive market.
You may get worried if you are a newbie, but as long as you sign up with the best forex trading platform UK for beginners, you are safe.
The aspects we have mentioned in this article should help you to find the best forex broker in the UK.
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