Forex Trading Accounts
A forex trading account is a vehicle that an investor uses to speculate on currencies. There are multiple accounts available online, from demo and practice solutions to live investing accounts. We look at the pros and cons of different account types and explain how to open a forex trading account.
Best UK Forex Trading Accounts
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Pepperstone offers ultra-competitive forex spreads averaging 0.12 pips on EUR/USD in the Razor account, accompanied by a diverse portfolio comprising 100+ currency pairs - an extensive selection surpassing most competitors. Additionally, Pepperstone distinguishes itself by offering three currency indices (USDX, EURX, JPYX), not commonly found among alternative platforms. Pepperstone has now won our annual 'Best Forex Broker' award twice.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.4 0.1 0.4 Total Assets FCA Regulated Platforms 100+ Yes MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower -
XTB provides access to 70+ currency pairs with low spreads averaging around 1 pip on majors. The xStation platform offers an intuitive environment for forex traders with an excellent charting package encompassing 30+ indicators, plus a range of order types, catering to various strategies and risk management techniques.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.4 1.0 1.4 Total Assets FCA Regulated Platforms 70+ Yes xStation -
FXCC's key selling point is its forex trading conditions. ECN spreads come in as low as 0.0 pips during peak trading hours, while it supports a wider range of currency pairs than the majority of rivals with over 70 forex assets. Additionally, you have access to MT4, which was built specifically for forex trading and excels for its charting tools.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.0 0.2 0.5 Total Assets FCA Regulated Platforms 70+ No MT4, MT5 -
Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.5 0.0 0.5 Total Assets FCA Regulated Platforms 55+ Yes ProTrader, MT4, MT5, TradingView, DupliTrade -
IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.23 0.02 0.27 Total Assets FCA Regulated Platforms 75 No MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower -
FxPro offers 70+ currency pairs but no minors and stands out with its ultra-fast execution speeds and tight spreads averaging 0.45 pips on EUR/USD. Forex traders can also build test and deploy short-term trading strategies on the industry-leading MT4 software, with expert advisors (EAs) for algo trading.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.6 0.45 0.73 Total Assets FCA Regulated Platforms 70+ Yes FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower -
IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.9 0.8 0.9 Total Assets FCA Regulated Platforms 80+ Yes Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime -
FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
GBPUSD Spread EURUSD Spread GBPEUR Spread 1.3 1.2 1.4 Total Assets FCA Regulated Platforms 80+ Yes MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral -
Eightcap offers 50+ currency pairs in line with the industry average but trailing category leaders like CMC Markets with its 300+ currency pairs. However, Eightcap stands out with institutional-level spreads from 0.0 pips on major pairs like the EUR/USD, alongside low $3.50/side commissions. The broker also offers rich forex data to inform trading decisions, including key fundamentals, bullish/bearish indicators and a calendar that tracks key events in the foreign exchange market.
GBPUSD Spread EURUSD Spread GBPEUR Spread 0.1 0.0 0.1 Total Assets FCA Regulated Platforms 50+ Yes MT4, MT5, TradingView -
PrimeXBT offers forex trading on over 50 majors, minors and exotics with margin opportunities and zero commissions. The forex platform is fast, reliable and feature-rich based on our latest tests with 3 charts, 10 timeframes, and 91 technical studies - ideal for active trading strategies.
GBPUSD Spread EURUSD Spread GBPEUR Spread Variable 0.1 Variable Total Assets FCA Regulated Platforms 45+ No Own
What Is A Forex Trading Account?
A forex trading account is your gateway to the currency market. It’s where you will deposit funds to buy and sell currency pairs, and where you’ll withdraw any profits. Depending on the account type, you’ll also get access to market analysis and research tools, settings to protect you from price volatility, access to mobile iOS and APK platforms, and even bespoke investing advice. In addition, your account could come with integrated customer support, welcome bonuses and automated trading.
As well as trading on FX, some accounts also allow investors to diversify their portfolios by trading on commodities, bonds, stocks and CFDs.
Types Of Forex Trading Accounts
There are several different free and paid forex trading accounts. Which one you choose will depend on your needs.
Mini
Aimed at beginners, mini or micro forex trading accounts let investors speculate on the market with smaller position sizes. Mini lots are worth £10,000 while micro lots are worth £1,000. With lower leverage caps and position sizes, these starter accounts are great for novices and those with less capital.
Standard
A standard forex trading account lets you engage in real money investing. Users trade in lots, with each lot worth £100,000. With that said, leverage means clients only need to deposit a small amount of capital and can borrow the remaining funds from a broker. The FCA caps retail leverage to 1:30 in the UK market. So if you deposit £1,000, you can trade with £30,000.
Standard forex trading accounts come with all the usual bells and whistles, from access to trading platforms and market data to customer support and mobile applications.
Managed
With a managed forex trading account, you allow an expert to make trades for you. All you need to do is deposit funds and decide on your risk tolerance. Your capital will then be managed and invested in line with your risk appetite.
Managed accounts are a straightforward and hands-off way to get involved with forex, though be aware that the broker will take a commission.
Other Forex Trading Accounts
Aside from the standard forex trading accounts above, there are several alternative solutions that may suit your needs:
- VIP – Aimed at experienced investors with significant capital at their disposal, VIP solutions offer exclusive benefits and additional features, from bespoke events and enhanced market data to advanced trading tools. VIP accounts also typically offer tighter spreads and reduced costs in return for large trading volumes. VIP account holders normally receive detailed monthly account statements.
- Copy trading – Copy trading forex accounts let you manually or automatically copy the trades of experienced investors. Copy trading can be a great way to generate profits with minimal time investment. Of course, it does mean your capital is tied to the success of other traders.
- Islamic – To comply with Sharia law, Islamic trading accounts remove interest or roll-over charges. Most top UK forex brokers now offer Islamic-friendly trading accounts.
- Funded – Funded forex trading accounts allow clients to invest with borrowed funds. In return, the individual shares a portion of the profits with the broker. To start trading, you’ll need to meet certain experience and evaluation criteria. While these types of accounts can be lucrative, they are less common today given the risk exposure for brokers.
- Demo – A practice account is funded with virtual funds and lets beginners practice trading on the FX market without risking real money. Available at most UK brokers, a demo account offers real-time market data so users can test strategies and the broker’s tools. Clients can then upgrade to a live account when they’re willing to put money on the line.
MetaTrader 4 Forex Trading Demo Account
How To Open A Forex Trading Account
You can create a forex trading account in a few simple steps.
- Choose a broker – Hundreds of forex brokers offer multiple account options. Do your research and find a provider that offers the tools and products that you need.
- Register – Find the ‘open an account’, ‘sign up’ or equivalent button on the broker’s website. There is usually a registration link on the company’s homepage.
- Online application form – Most FX brokers require you to fill in a short application form. You’ll need to answer questions about your trading experience, risk appetite and submit personal details. You may also need to submit proof of ID before you can make a withdrawal.
- Deposit funds – Once you’ve created a new forex trading account and have your login credentials, you’ll need to deposit funds with a debit card, bank transfer, or alternative payment method. Minimum deposits vary between brokers, but most providers offer instant payment processing so you can start trading right away.
The Best Forex Trading Accounts
Before you open a forex trading account, it’s important to consider what you’re looking for. Firstly, ensure the brokerage is reputable and preferably licensed with the FCA – there are many scams out there. There are several other questions you may want to ask:
- Do you want to trade forex with a specific platform, such as MetaTrader 4 (MT4)?
- Does the account work on fixed commissions or competitive floating spreads?
- What risk management alerts and tools come with the account?
- Does the account come with automated trading capabilities?
- Does the account allow scalping and hedging?
- Do you want to start copy trading forex?
Final Word On Forex Trading Accounts
As your portal to the FX market, it’s important to find a forex trading account that meets your needs. You want a user-friendly, feature-rich account that offers all the tools you need to implement your strategy. Your available capital will likely impact whether you opt for a beginner account with lower cash requirements and smaller position sizes. Experienced traders typically choose VIP or equivalent accounts so they can benefit from tighter spreads and additional support, such as dedicated account managers. See our list of the top forex brokers to find an account that’s right for you.
FAQ
What Is A Forex Trading Account?
A forex trading account is an online profile that lets you buy and sell currencies. There are multiple accounts to choose from that offer a range of platforms, tools and features. You can create a forex trading account by following the instructions at the respective broker.
What Leverage Is Available With Forex Trading Accounts?
Leverage is when your broker lends you fund so you can increase your trade size. In the UK, the Financial Conduct Authority (FCA) caps retail leverage levels to 1:30. This means if you deposit £100, you can trade with £3,000. Unlicensed forex brokers may offer greater leverage, but this will increase your risk exposure should the market move against you.
How Do I Open A Forex Trading Account?
Before starting with a forex trading account, you need to select the sign-up button on the broker’s website. Then simply follow the on-screen instructions. You’ll likely need to submit personal details. Opening a forex trading account usually takes several minutes.
What Is A Forex Trading Demo Account?
A forex demo account is a practice simulator that lets you test strategies in a risk-free environment. Traders can operate under near real-time market conditions but instead use virtual funds at brokers such as XM. The best demo forex trading account downloads in the UK can be used for an unlimited period.
What Are The Different Types Of Forex Trading Accounts?
There are multiple forex trading accounts available online. Beginners may want to open a micro or mini account, that lets investors trade the FX market with smaller lots and lower minimum deposit requirements. Investors with less time may want to opt for an automated trading or copy trading account. Experienced professionals may want to register for higher tier or VIP forex trading account to benefit from bespoke tools and lower fees.