Best Brokers and Trading Platforms UK 2025
We review and list the best UK brokers in 2025 in our large annual test of all the trading platforms that accept British traders. The UK is one of the financial capitals of the world making it a hotspot for online brokers, not all of which are safe to trade with. To find the best online broker for you, see our list of the highest rated and most recommended UK trading platforms below.
Top Rated UK Brokers
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Founded in Australia in 2010, Pepperstone is a highly regarded broker specialising in forex and CFDs. Serving more than 400,000 clients globally, it provides access to over 1,300 financial instruments through popular platforms like MT4, MT5, cTrader, and TradingView. Its fee structure is both low and transparent. With regulation by reputable bodies such as the FCA, ASIC, and CySEC, Pepperstone guarantees a safe trading environment for traders at every level.
Instruments Regulator Platforms CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto (only Pro clients), Spread Betting FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Established in Poland in 2002, XTB caters to over a million clients worldwide. This forex and CFD broker offers a robust regulatory framework, a diverse range of assets, and prioritises trader satisfaction. It provides an intuitive proprietary platform equipped with excellent tools to support aspiring traders.
Instruments Regulator Platforms CFDs on shares, Indices, ETFs, Raw Materials, Forex currencies, cryptocurrencies, Real shares, Real ETFs FCA, CySEC, KNF, DFSA, FSC, SCA, Bappebti xStation Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 -
FXCC, a well-established brokerage since 2010, offers cost-effective online trading. Registered in Nevis and regulated by CySEC, it is distinguished by its ECN conditions and absence of a minimum deposit requirement. The account opening process is efficient, taking under five minutes.
Instruments Regulator Platforms CFDs, Forex, Indices, Commodities, Crypto CySEC MT4, MT5 Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500 -
IC Markets is an internationally acclaimed forex and CFD broker, admired for its competitive pricing, diverse trading instruments, and superior technology. Established in 2007 and based in Australia, the firm is under the regulation of ASIC, CySEC, and FSA. It has successfully drawn over 180,000 clients from more than 200 nations.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto ASIC, CySEC, FSA, CMA MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) -
Founded in 2006, FxPro has built a reputation as a reliable non-dealing desk (NDD) broker, providing trading access across more than 2,100 markets to over 2 million clients globally. It has received over 100 industry awards, reflecting its favourable conditions for active traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Futures, Spread Betting FCA, CySEC, FSCA, SCB, FSA FxPro Edge, MT4, MT5, cTrader, AutoChartist, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $100 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Founded in 1974, IG is a part of IG Group Holdings Plc, a publicly listed brokerage (LSE: IGG). The company provides spread betting, CFD, and forex trading, offering access to over 17,000 markets. Its platforms and investing apps are notably user-friendly. Over the past 50 years, IG has consistently been an industry leader, excelling in all essential areas for traders.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA, CONSOB, AFM Web, ProRealTime, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:222 (Pro) -
IC Trading belongs to the reputable IC Markets group. Designed for dedicated traders, it offers highly competitive spreads, dependable order execution, and sophisticated trading tools. However, it operates from Mauritius, an offshore financial centre, allowing high leverage but within a less regulated environment.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Cryptos, Futures FSC MT4, MT5, cTrader, AutoChartist, TradingCentral Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:500
Pepperstone
XTB
FXCC
IC Markets
FXPro
IG Index
IC TradingSafety Comparison
Compare how safe the Best Brokers and Trading Platforms UK 2025 are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| XTB | ✔ | ✔ | ✔ | ✔ | |
| FXCC | ✘ | ✔ | ✘ | ✔ | |
| IC Markets | ✘ | ✔ | ✘ | ✔ | |
| FXPro | ✔ | ✔ | ✘ | ✔ | |
| IG Index | ✔ | ✔ | ✔ | ✔ | |
| IC Trading | ✘ | ✘ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Best Brokers and Trading Platforms UK 2025 support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| XTB | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| FXCC | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| FXPro | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| IG Index | ✔ | ✔ | ✔ | ✘ | ✘ | ✘ |
| IC Trading | ✔ | ✔ | ✔ | ✔ | ✘ | ✘ |
Mobile Trading Comparison
How good are the Best Brokers and Trading Platforms UK 2025 at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| XTB | iOS & Android | ✔ | ||
| FXCC | iOS & Android | ✘ | ||
| IC Markets | iOS & Android | ✘ | ||
| FXPro | iOS & Android | ✘ | ||
| IG Index | iOS & Android | ✔ | ||
| IC Trading | iOS & Android | ✘ |
Beginners Comparison
Are the Best Brokers and Trading Platforms UK 2025 good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| XTB | ✔ | $0 | 0.01 Lots | ||
| FXCC | ✔ | $0 | 0.01 Lots | ||
| IC Markets | ✔ | $200 | 0.01 Lots | ||
| FXPro | ✔ | $100 | 0.01 Lots | ||
| IG Index | ✔ | $0 | 0.01 Lots | ||
| IC Trading | ✔ | $200 | 0.01 Lots |
Advanced Trading Comparison
Do the Best Brokers and Trading Platforms UK 2025 offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✔ | ✔ | ✘ |
| XTB | Open API | ✔ | 1:30 | ✘ | ✘ | ✔ | ✘ |
| FXCC | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
| FXPro | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✘ | ✔ | ✘ |
| IG Index | Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | ✔ | 1:30 (Retail), 1:222 (Pro) | ✔ | ✘ | ✔ | ✔ |
| IC Trading | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Best Brokers and Trading Platforms UK 2025.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| XTB | |||||||||
| FXCC | |||||||||
| IC Markets | |||||||||
| FXPro | |||||||||
| IG Index | |||||||||
| IC Trading |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Tobias Robinson
Reviewer
Pros
- The award-winning customer support can be accessed through phone, email, or live chat. During tests, response times have consistently been under 5 minutes.
- Over the years, Pepperstone has consistently garnered recognition from DayTrading.com’s annual awards. Recently, it was honoured as the 'Best Overall Broker' in 2025 and was the 'Best Forex Broker' runner-up the same year.
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
Cons
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
Our Take On XTB
"XTB emerges as an ideal option for novice traders, offering the impressive xStation platform, zero commission pricing, no required minimum deposit, and outstanding educational resources, many of which are conveniently integrated into the platform."
Pros
- Setting up an XTB account is straightforward and fully online, requiring only a few minutes. This simplicity eases new traders into the world of trading.
- The xStation platform stands out with its user-friendly design and intuitive tools, such as adaptable news feeds, sentiment heatmaps, and a trader calculator. These features streamline the learning process for new traders.
- XTB offers a diverse range of over 7,000 instruments, including CFDs on shares, indices, ETFs, commodities, forex, and cryptocurrencies. The platform also provides real shares, real ETFs, share dealing, and the latest addition, Investment Plans, serving both traders seeking short-term gains and investors focused on long-term growth.
Cons
- The research tools at XTB are commendable but have the potential to excel further. Enhancing them with access to top-tier third-party services like Autochartist, Trading Central, and TipRanks would significantly elevate their offering.
- XTB lacks a raw spread account, a feature increasingly offered by competitors such as Pepperstone. This omission might not satisfy traders seeking the most competitive spreads.
- XTB has stopped supporting MT4, restricting traders to its own platform, xStation. This decision may discourage experienced traders accustomed to using the MetaTrader suite.
Our Take On FXCC
"FXCC remains a top choice for forex traders, offering over 70 currency pairs, very tight spreads from 0.0 pips in tests, and high leverage up to 1:500 with the ECN XL account."
Pros
- The complimentary education section, featuring the 'Traders Corner' blog, provides a wide array of resources suitable for traders of all experience levels.
- FXCC has introduced MT5, which in our evaluations, mirrored the trading conditions of MT4 by offering swift execution, improved charting, and market depth tools.
- FXCC offers competitive and transparent ECN spreads starting from 0.0 pips, with no commissions. This makes it one of the most cost-effective forex brokers available.
Cons
- The variety of currency pairs surpasses most options, but the choice of other assets is limited. Notably, stocks are absent.
- Unaware traders might face steep withdrawal fees, such as a notable $45 for bank transfers.
- The range of research tools, such as Trading Central and Autochartist, is quite limited. Leading platforms in this category, like IG, offer more advanced features.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- As a well-regulated and reputable broker, IC Markets focuses on client safety and transparency to provide a dependable global trading experience.
- IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
- Access over 2,250 CFDs across diverse markets like forex, commodities, indices, shares, bonds, and cryptocurrencies. This variety enables traders to employ diversified strategies.
Cons
- The tutorials, webinars, and educational resources require enhancement, lagging behind competitors such as CMC Markets, which diminishes their appeal to novice traders.
- Certain withdrawal methods incur fees, including a $20 charge for wire transfers. These costs can reduce profits, particularly with frequent withdrawals.
- Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
Our Take On FXPro
"FxPro is an excellent choice for traders, offering swift execution speeds under 12ms, reduced fees since 2022, and outstanding charting platforms like MT4, MT5, cTrader, and FxPro Edge."
Pros
- FxPro provides four dependable charting platforms, including the user-friendly FxPro Edge. It features more than 50 indicators, 7 types of charts, and 15 different timeframes.
- FxPro uses a 'No Dealing Desk' (NDD) model for swift and transparent order execution, usually within 12 milliseconds, making it well-suited for short-term trading strategies.
- FxPro's Wallet is a notable feature enabling traders to securely manage their funds. It ensures additional protection and ease by separating unused funds from active trading accounts.
Cons
- There are no passive investment options such as copy trading or interest on cash. While traders might not find these essential, competitors like eToro, which accommodate both active and passive investors, offer more extensive services.
- FxPro offers customer support five days a week around the clock, accessible via various platforms, and the service quality is reliable based on tests. However, the absence of weekend support can be a drawback for traders requiring help beyond standard market times.
- FxPro, with its $10M funded demo account and expanding Knowledge Hub, mainly caters to experienced traders. Beginners might find its account and fee structure challenging to understand.
Our Take On IG Index
"IG offers a complete package with an intuitive online platform, top-tier beginner education, advanced charting tools through its TradingView integration, real-time data, and swift execution for seasoned traders."
Pros
- The IG app provides an excellent mobile trading experience with an intuitive design, earning it the Runner Up position in our 'Best Trading App' award.
- As a seasoned broker, IG adheres to stringent regulatory standards across various regions, ensuring significant trust.
- IG provides a wide range of professional and engaging educational materials, such as webinars, articles, and analyses, tailored for traders.
Cons
- Based on tests, stock and CFD spreads remain less competitive than the lowest-cost brokers, such as CMC Markets.
- IG imposes a monthly inactivity fee of $12 after two years, discouraging occasional traders.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
Our Take On IC Trading
"IC Trading offers an ideal environment, featuring top-tier execution speeds of around 40 milliseconds, extensive liquidity, and advanced charting tools, perfect for scalpers, traders, and algorithmic traders."
Christian Harris
Reviewer
Pros
- IC Trading provides exceptional flexibility, allowing traders to open as many as 10 live accounts and 20 demo accounts. This enables the management of distinct profiles for various activities, including manual and algorithmic trading.
- The streamlined digital account setup allows traders to commence trading swiftly, eliminating lengthy paperwork. Testing shows the process takes mere minutes.
- Trading Central and Autochartist provide valuable technical analysis and actionable ideas. These tools are readily available within the account area or on the cTrader platform.
Cons
- The educational materials require significant enhancement unless accessed via the IC Markets website. This limitation is particularly disadvantageous for beginners seeking a thorough learning experience, especially when compared to industry leaders such as eToro.
- Unlike IC Markets, IC Trading lacks support for social trading via the IC Social app or the ZuluTrade platform.
- Although IC Trading operates under the reputable IC Markets group, it is licensed by the FSC in Mauritius, a regulator known for its limited financial transparency and lack of robust safeguards.
Trading Platforms
The best online brokers in the UK will provide a trading platform that is both easy to use and intuitive. We’ve listed the main options you’ll find on the market below.
MetaTrader 4 and 5
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular third-party platforms in the forex world. They were created by the developers MetaQuotes, who’ve been in the online trading market since 2005. There are over 150 online brokers in our list that offer the software, including top names such as Pepperstone, CMC Markets and Avatrade. It is free to download and use, you’ll just need to set up an account with your chosen broker and login with the credentials they provide upon sign up.
MT4 and MT5 are popular for a number of reasons, but there are two stand-out benefits that forex traders love:
- Breadth Of Analytical Tools – MT4 has 30 built-in indicators, 24 analytical objects and 9 time-frame charts. It is designed for traders who love to do their research, making it the top choice for some of the most successful global forex traders. MT5, the most recent software release, goes even further, with 38 indicators, 44 analytical objects and 21 time-frames.
- Customisability – But even better than its built-in tools, MetaTrader platforms are famous for their flexibility. There are 2000 free custom indicators, plus 700 that can be purchased from the Codebase.
Analytical Objects in MetaTrader 5
Proprietary Platforms
A proprietary platform is one that is owned and created by the broker. Sometimes, these can be lacking in the required functionality so online brokers may offer this option alongside MT4 for traders who need access to a variety of tools. However, some of the best online brokers in the UK use proprietary software, which tends to be much more user-friendly and intuitive. They’re ideal for traders that have a certain strategy in mind and require a platform tailored to this.
Top platforms for:
- Social Trading – eToro is a social trading broker that offers its own platform. It’s perfect for those keen to share tips and tricks with their fellow traders. It has a Tipranks Research Tab that allows you to gain insights from the most successful on its books, including those from top institutions. Plus, you can also review other’s trades and choose to copy or ‘mirror’ them if you’re a fan of their strategy.
- Mobile Trading – While MT4 and MT5 do have mobile apps, deep analysis is best completed on your desktop. If you’re looking to trade on the go, there are many top trading apps in the UK offered by online brokers that specialise in making trading simple from a small screen. For example, XTB’s xStation Mobile is great for CFDs, with over 1,500 instruments as well as news and insight available at the touch of a button.
- Asset Variety – For one of the largest selections of assets offered by online brokers in the UK, check out Plus500. It has over 2000 tradable instruments available on its in-house platform and boasts real-time quotes as well as round the clock customer support for all customers.
- Professional Traders – Interactive Brokers is an online broker that is favoured by professional traders. It has an excellent proprietary platform and ECN links to top exchanges that are perfect for day trading. However, high minimum deposit thresholds price some small-time investors out of the market.
eToro’s Copy Trade Function
Tools
There is a huge selection of tools out there to help you with your trade analysis, many of the best online brokers in the UK will offer these for free to clients.
News & Insights
Fundamental analysis is the study of economic factors that can influence an asset’s value. Macroeconomic factors, such as the Bank of England’s interest rate, the UK inflation rate and British public policy are all factors. Microeconomic factors include a company’s management, strategy, and P&L. These can all be gleaned by following business news closely. Many of the top online brokers in the UK offer blog posts, opinion insights and news articles as part of their service.
Education
Whether you’re a beginner looking to learn the ropes, or a veteran seeking out the latest strategy, most online forex and stock investors will benefit from access to education. How-to videos and tutorials from a broker are a fantastic way to learn new tips and tricks that may also be relevant to the trading platform you use. Online brokers in the UK that offer this type of resource are a definite advantage.
EAs & Bots
Automated trading is popular among those who prefer a hands-off approach to trading. Therefore, online brokers in the UK that offer access to trading robots (also known as Executive Assistants) are increasingly popular. There are some specialised brokers that offer bots created in-house, but those that provide access to MT4 and MT5 have a much broader selection, as the MetaTrader Codebase hosts thousands that are both free and available to purchase. Always remember to test your bot on a demo account before you trade with real money since there is no guarantee that EAs will be profitable.
Demo Account
A demo account allows you to trade with virtual currency before you take the plunge into the live trading environment. Most online brokers offer this service, which is vital for anyone new to the trading platform. You can use it to practice strategy or trial the features and functionality of the platform.
Fees & Commission
Online discount trading brokers have the cheapest fees of all services in the UK. But there’s a lot of variability depending on the asset traded. We’ve listed the most commonly found fees and what they mean below:
- Spreads – Most online forex brokers charge a fee through ‘spreads’. Spreads are the difference between the buy and sell price of an asset. They’ll either be fixed or variable. Fixed spreads tend to be slightly higher but have the benefit of being constant. Variable spreads change with market volatility.
- Commission – Stocks bought through an exchange are usually charged through commission. Often, this is a fixed amount per trade, e.g £8 or 0.2% of the value. Some online brokers will offer ‘commission-free stocks’, in this case, they usually charge a spread instead.
- Account Fees – Some companies charge just for keeping your account open. While this is rare with online brokers in the UK, it’s one to look out for.
- Rollover Fees – When trading CFDs, rollover fees apply if you keep positions open overnight. Day traders should have no issues, but those looking to invest long term should be aware.
Look out for hidden costs in online brokers offering their services for free. It’s more likely that the asset will be quoted marginally above market rate to cover their running costs. When using online brokers, cost comparison is key to profitability. Check out our online brokers list above for recommendations.
Leverage
The top 10 online brokers in the UK will all offer the opportunity to trade with leverage. Leverage allows you to maximise the results of a trade by multiplying by a chosen factor. For example, if you have a £100 deposit and you trade with leverage 1:5, you can open a position with a value of £500.
All FCA regulated brokers in the UK are limited to what leverage they can provide. They’re capped at between 1:30 and 1:5 depending on the volatility of the asset traded. Forex trading is usually between 1:20 and 1:30, whereas stocks are slightly lower, at around 1:10.
Unregulated online brokers in the UK sometimes offer higher leverage limits. However, we recommend you select a regulated firm as the limits are in place to protect retail traders from undue risk. Leverage amplifies losses as well as profits, so risk management is vital.
Operational Structure
Online brokers operate primarily with one of two trading models: dealing desk or non-dealing desk. A dealing desk broker, or ‘market maker’ creates liquidity on its order book by taking the other side of a trade. For example, if you’re looking to sell Google stocks, but there is no trader on its books willing to buy them, the broker will buy them instead. This ensures that orders are always filled, but it does mean that market makers are trading against you and other clients. If you lose money, they benefit, creating a conflict of interest.
A non-dealing desk broker (or ECN broker) connects to other institutions through an electronic network. This creates a larger order book, making it easier to find another investor willing to take the trade.
Both models are popular with online brokers, and neither is right or wrong. However, some traders prefer to limit the conflict of interest by selecting an ECN broker where possible.
Customer Support
If things don’t go as planned and you need help, an online broker with strong customer support is vital. Look out for a phone number or live chat service, these are key indications that they’ll be on hand when you need them. An email address or ‘contact us’ page is not sufficient. If you ever need it, there’s no doubt you’ll be wishing you’d selected a broker that puts this service as a high priority.
How UK Brokers Are Regulated
In the UK, any firm offering financial services must be regulated by the Financial Conduct Authority (FCA). The FCA was created in 2013 with the aim of managing risk as a result of the 2008 financial crisis. It currently regulates around 51,000 businesses in the UK. FCA regulation is a good indication that the trading broker can be trusted.
The FCA places a number of requirements on online brokers in the UK, which encourages transparency with retail traders. You may not have realised, but the following policies are FCA mandated:
- Risk Disclosure – Online brokers offering CFDs must disclose the percentage of retail traders that lose money with this instrument.
- Negative Balance Protection – When margin trading, it is possible to lose more than your deposit amount since the results of a trade are multiplied. Negative balance protection aims to prevent this by issuing a margin call. All traders regulated by the FCA will provide this.
- Limits On Leverage – As mentioned above, there are limits on how much leverage a broker can offer depending on the volatility of the instrument provided. This is capped at a maximum of 1:30. Online brokers offering higher leverage than this are unregulated and potentially scammers.
- Ban On Excessively Volatile Instruments – In 2020, the FCA banned the sale of crypto-derivatives. Their volatile nature was deemed to cause excessive risk to retail traders. Similarly, following the European Securities and Markets Authority’s (ESMA) temporary ban in 2018, the FCA permanently restricted the sale of binary options in 2019.
- Segregated Funds – If your brokerage fails, you’ll want to know that your trading funds are protected and will be returned to you. The FCA makes it mandatory for online brokers to keep customer funds in a separate account from those used by business operations. This means if their finances are lacking, they can’t use yours to top them up.
- Bonuses – Traders looking for online brokers with the best welcome bonuses should be cautious. The FCA has banned all types of cash bonuses from UK-based online trading brokers, since they entice traders to deposit funds for all the wrong reasons. Sometimes they even have unfair terms and conditions attached to them, like those that restrict profit withdrawal.
Final Word On Online Brokers In The UK
Since online brokers in the UK must be regulated, many will have similar policies. This includes a broker’s leverage limits, provision of negative balance protection and even restricts their instrument list. However, there are a few factors that will vary between firms. Look for online brokers that provide you with an intuitive trading platform with all the functionality you need. Plus, assess their fee structure, educational tools and customer support before taking the plunge.
FAQ
What Are The Best Online Brokers For UK Expats?
Expats can still use online brokers that are registered in the UK as long as the company offers the service to their current jurisdiction. However, be aware that regulatory protections may not apply to your location. Therefore, the best online brokers in the UK can usually be used by expats too, but the tax obligations will vary.
Do Online Brokers In The UK Need To Be Regulated?
Yes. It is mandatory for companies providing financial services in the UK to be regulated by the FCA. Before Brexit, it was sufficient for a broker to be registered with an ESMA approved European authority. This made regulators such as CySEC (Cyprus Securities and Exchange Commission) a commonly referenced industry figurehead. However, since leaving the EU, this no longer applies and online brokers must be regulated by the FCA.
How Can I Find The Best Online Brokers In The UK?
We’ve compiled a list of the top ten online brokers in the UK with a review of each and every one. Check out our UK brokers list and read the article to find the key factors to look for in a broker. This will help you choose the right service for you.
What Are The Best Online Trading Brokers For Beginners?
Beginners should ensure they select a broker that offers a trading platform that is intuitive and easy to use. Many of the charts, graphs and limit orders can be difficult to grasp initially. Before you try and grapple with this, start with the basics. Secondly, online brokers should always offer the opportunity to trial the platform through a demo account. See our list of the best brokers for beginners where we have rated the brokers most suited to beginner traders.
How Do You Start To Buy Stocks Through An Online Broker?
First and foremost, consider which broker offers you the stock you need for a sensible fee. Then, consider how you’ll be trading. For example, if you’re looking to buy stocks for long term investment, a platform isn’t required. However, if you want to make a profit from trading, you’ll need one that provides all the functionality you need. Once you’ve selected your top choice, sign up and follow the broker’s instructions to purchase.
Compare Online Brokers
In the list of UK Online Brokers above, a few key factors are displayed for each firm. But if you are looking for a much more detailed broker comparison we have dedicated pages for that. You can also compare a firm with other online brokers in the individual reviews. Below are some of the most popular comparisons.