Best UK Forex Brokers

The forex market is the most liquid market in the world, with an average daily trading volume of around $6.6 trillion. While it’s true that the market is dominated by institutional players, many individual traders still operate in this space regularly, aiming either to generate profits or to hedge their investments.

In this article, we take a look at the best forex brokers in 2025 for traders based in the UK.

Who are the best UK forex brokers?

Saxo

Saxo is a well-established Danish broker with a strong presence in the UK, known for its institutional-grade trading tools and broad market access. It caters to both experienced retail traders and professionals, offering a wide range of products including spot forex, CFDs, stocks, futures, and more.

With over one million clients worldwide and daily forex turnover exceeding $17 billion, Saxo stands out for its depth, reliability, and advanced platform technology. Saxo provides access to spot FX, CFDs, stocks, futures and more via its SaxoTraderGO and SaxoTraderPRO platforms.

Regulation

Saxo is authorised and regulated by several top-tier financial authorities, including:

• FCA (UK)
• Danish FSA (Denmark)
• FINMA (Switzerland)

Currency Pairs

Trade a broad selection of forex pairs, including majors, minors, and exotics. The exact number varies by region, but coverage is among the widest in the industry.

Spreads and Trading Costs

• Spreads are competitive
• Institutional pricing and tiered rates for higher-volume traders.
• GBP/USD: Spreads from 1 pip

Platforms

• SaxoTraderGO (web/mobile)
• SaxoTraderPRO (desktop)

Pros and  Cons

Read our Saxo Bank review to learn more.

City Index

City Index, founded in 1983 and now part of StoneX, is a well‑established UK broker specialising in spread betting, CFDs and forex. It is regulated by the FCA and offers access to over 80 FX pairs. Spreads on major pairs start from 0.5 points, and you can trade via daily funded trades, forwards or options. The broker supports both a web-based platform with advanced charting tools and a mobile app.

City Index caters to both beginner and advanced traders with flexible account options, educational resources, and responsive customer support. It combines strong local presence with the backing of a global financial group, making it a reliable choice for UK-based forex traders.

Regulation

City Index is authorised and regulated by several top-tier financial authorities, including:

• FCA (UK)
• ASIC (Australia)
• MAS (Singapore)
• DFSA (Dubai)

Currency Pairs

Trade more than 80 forex pairs, including majors, minors, and exotics, via CFDs or spread betting.

Spreads and Trading Costs

• EUR/USD: Spreads from 0.5 pips
• GBP/USD: Spreads from 1.5 pips
• Other major pairs: Spreads typically range from 0.6 to 1.5 pips
• No deposit or withdrawal fees

Platforms

City Index offers a choice of advanced trading platforms:

• City Index Web Trader (browser-based)
• MetaTrader 4 (MT4)
• Mobile trading app for iOS and Android

Pros and  Cons

Interactive Brokers

Interactive Brokers (IBKR) is a US‑based broker prized by sophisticated traders for its direct market access, extensive product coverage and top-tier technology. Forex trading includes over 100 currency pairs with low margin rates and advanced order types. IBKR offers its Trader Workstation (TWS) and mobile/web platforms.

With ultra-competitive spreads and transparent commission structures, IBKR is ideal for traders who prioritise cost efficiency and execution quality. However, its platform complexity and lack of spread betting may not suit casual or beginner traders.

Regulation

Interactive Brokers is authorised and regulated by several top-tier regulators, including:

• FCA (UK)
• SEC & CFTC (USA)
• ASIC (Australia)
• SFC (Hong Kong)

Currency Pairs

Trade over 100 forex pairs across 26 currencies and access both spot FX and forex CFDs depending on account setup.

Spreads and Trading Costs

• Tight spreads as narrow as 1/10 PIP
• Transparent commission structure (as low as 0.2 basis points per trade)
• No markups on spreads; volume-based discounts available
• Deep liquidity and real time quotes from 17 of the world's largest FX dealers
  

Platforms

IBKR offers access to highly advanced trading platforms:

• Trader Workstation (TWS) – desktop
• Client Portal – web-based
• IBKR Mobile – full-featured trading app

Pros and  Cons

👉 Want to know more? Check out our full Interactive Brokers review

CMC Markets

CMC Markets is a London‑listed FCA‑regulated broker founded in 1989, offering over 12,000 instruments including 80+ forex pairs and CFDs. Its Next Generation platform provides powerful charting (115+ indicators) and integrated research and a free demo account with £10,000 in virtual funds allows new users to practise before trading live.

CMC is fully FCA-regulated and offers negative balance protection for retail clients, as well as competitive pricing with no commissions on forex trades — just the spread. With excellent educational content and responsive UK-based support, it’s a well-rounded choice for serious traders.

Regulation

CMC Markets is authorised and regulated by several top-tier regulators, including:

• FCA (UK)
• ASIC (Australia)
• MAS (Singapore)
• BaFin (Germany)

Currency Pairs

Access to over 330 forex pairs, including majors, minors, and exotics, also available via CFDs or spread betting for UK traders.

Spreads and Trading Costs

• EUR/USD: Spreads from 0.5 pips
• GBP/USD: Spreads from 0.5 pips
• No commission on forex trades – costs are built into the spread

Platforms

• Web platform - Next Generation
• MetaTrader 4
• Mobile app
• TradingView

Pros and  Cons

If you want to find out more, read our CMC Markets review

IG

IG is one of the UK’s most established brokers, offering a highly advanced trading platform with a wide range of features. It’s particularly suited to more experienced traders, as forex trading is only available through derivatives such as Turbo24s and Multi-Warrants.

One of IG’s key strengths is its integration with professional-grade platforms like MetaTrader 4 and ProRealTime. Traders also benefit from reliable support and educational tools. For those new to IG’s more complex product range, there’s a free demo account with €20,000 in virtual funds — perfect for getting familiar with the platform before moving to a live account.

With over 50 years of experience, IG is a trusted name in the industry. It offers access to more than 80 currency pairs and over 17,000 financial instruments, including indices, shares, and commodities. Customer service is also highly rated.

Regulation

IG is authorised and regulated by several top-tier financial authorities, including:

• FCA (UK)
• BaFin (Germany)
• FINMA (Switzerland)

Currency Pairs

Trade over 80 forex pairs, though access is provided exclusively through derivatives like Turbo24s and Multi-Warrants.

Spreads and Trading Costs

• EUR/USD: Spreads from 0.6 pips
• GBP/USD: Spreads from 0.9 pips
• Other pairs: Spreads from 0.9 pips, up to 6 pips depending on the market

Platforms

IG gives traders access to several industry-standard platforms:

• MetaTrader 4 (MT4)
• L2 Dealer
• IG’s own web-based trading platform
• Mobile apps
• ProRealTime
• TradingView

Pros and Cons

👉 Want to know more? Check out our full IG review

XTB

XTB is a well-known Polish founded broker with a strong presence in the UK and worldwide. Founded in 2002, it offers a user-friendly trading experience with a focus on forex and CFDs. XTB appeals to both beginner and experienced traders thanks to its competitive pricing, straightforward platforms, and excellent educational resources. The broker provides access to more than 50 currency pairs, alongside stocks, indices, commodities, and cryptocurrencies.

XTB’s flagship platform, xStation 5, is intuitive and packed with features like advanced charting tools, a built-in economic calendar, and real-time news —earning its recognition as one of the best trading platforms available. It also supports a web-based and mobile app for trading on the go. A free demo account with virtual funds allows users to practise risk-free before trading live. XTB is fully FCA-regulated and offers negative balance protection, making it a trusted choice for UK traders.

Regulation

XTB is authorised and regulated by several top-tier regulators, including:

• FCA (UK)
• KNF (Poland)
• CySEC (Cyprus)

Currency Pairs

Access to over 50 forex pairs including majors, minors, and some exotics.

Spreads and Trading Costs

• EUR/USD: Spreads from 0.9 pips (variable)
• GBP/USD: Spreads from 1.4 pips
• No commission on forex trades — costs built into the spread

Platforms

XTB offers access to:

• xStation 5 (web, desktop, and mobile)
• MetaTrader 4 (MT4)

Pros and  Cons

👉 Want to know more? Check out our full XTB review

eToro

eToro is a globally recognised social trading platform that has gained popularity in the UK for its user-friendly interface and innovative features. Founded in 2007, it allows traders to access forex, stocks, commodities, cryptocurrencies, and more through CFDs and direct investments. eToro is especially popular with beginners and those interested in social or copy trading, where users can follow and replicate the trades of successful investors.

The platform is designed for ease of use, with a simple web interface and mobile app that make it easy to buy, sell, and track assets. Its social features foster a community environment, allowing traders to share insights and strategies—cementing its reputation as one of the best copytrading platforms available. . While spreads on forex pairs tend to be slightly higher than some competitors, eToro charges no commissions on trades. A free demo account with $100,000 in virtual funds helps new users practise before trading with real money.

eToro

• Equities, ETFs, crypto both real and derivatives
• Social trading e copy trading
• User-friendly platform and demo account

Visita

61% of investor accounts lose money by trading CFDs with this provider.

Regulation

eToro is authorised and regulated by:

• FCA (UK)
• CySEC (Cyprus)
• ASIC (Australia)

Currency Pairs

Offers access to over 47 forex pairs including majors, minors, and select exotics.

Spreads and Trading Costs

• EUR/USD: Spreads from 1.0 pip
• GBP/USD: Spreads from 2 pips
• Other major pairs: Spreads generally range from 1 to 3 pips
• No commissions on trades, but fees apply on withdrawals and inactivity

Platforms

eToro’s platform is:

• WebTrader (web-based and mobile app)
• No MetaTrader support, but with unique social and copy trading features

Pros and  Cons

👉 Want to know more? Check out our full eToro review

How does forex trading work?

Forex, short for foreign exchange, is the global marketplace for trading national currencies. It’s the largest and most liquid financial market in the world, with over $6.6 trillion traded daily. In forex, you always trade currency pairs — for example, EUR/USD (euro against the US dollar).

When you buy a pair, you're buying the first currency (EUR) and selling the second (USD). When you sell the pair, you’re doing the opposite.

What are the different types of forex trades?

Spot Trading

Spot trading is the most straightforward form of forex trading. It involves buying or selling a currency pair at the current market price, with the intention of settling the transaction "on the spot" — usually within two business days. Retail traders often use spot trading to take advantage of short-term price movements.

When you hear someone say they’re trading EUR/USD, they’re likely engaging in spot trading, either directly or through a broker’s platform. While this is the most "pure" form of currency exchange, retail traders rarely take physical delivery of the currency — it’s typically settled in cash.

CFDs (Contracts for Difference)

CFDs are a popular way for retail traders to access the forex market without actually owning the underlying currencies. Instead of buying euros or dollars, for example, you’re entering into a contract with a broker to speculate on the price difference between the time you open and close the trade. If the price moves in your favour, you make a profit; if it moves against you, you incur a loss.

CFDs allow you to go long or short, use leverage, and trade a wide range of forex pairs with relatively small capital. However, they also carry a higher risk of loss, particularly when using leverage.

Forwards and Options

Forwards and options are more complex and are mainly used by institutional traders, corporations, or sophisticated investors for hedging or speculative purposes.

A forward contract is an agreement to exchange a specified amount of currency at a fixed rate on a future date. This is useful for businesses looking to lock in exchange rates and avoid the risk of currency fluctuations. 

Options give the buyer the right (but not the obligation) to exchange currency at a set rate before a certain date. These instruments involve more complicated pricing models and risk profiles, and are not typically used by casual or beginner traders.

How do you make money with forex?

You make a profit by speculating on price movements. For example:

• If you think the euro will strengthen against the dollar, you buy EUR/USD.
• If you think the euro will weaken, you sell EUR/USD.

If the price moves in your favour, you close the trade at a profit. If not, you take a loss.

FAQs

How can I trade forex in the UK?

To trade forex in the UK, you’ll need to open an account with a broker that is authorised by the Financial Conduct Authority (FCA). Most brokers offer online registration, where you’ll provide identity documents, proof of address, and some financial background to assess suitability.

Once verified, you can fund your account using bank transfer, debit card, or e-wallet, and begin trading via platforms like MetaTrader 4 (MT4), ProRealTime, or the broker’s proprietary software. Most UK brokers offer both CFDs and spread betting as the main ways to access the forex market.

How do you verify FCA authorisation?

To check if a forex broker is FCA-authorised, follow these steps:

• Visit the FCA Register: https://register.fca.org.uk
• Enter the firm name or FCA reference number (often listed in the footer of the broker’s website)
• Verify that the firm is listed as authorised, not just registered, and that forex or CFD trading is among its approved activities

Be cautious of clone firms — always cross-reference the broker’s contact details on the FCA Register with those on the broker’s website.

Is forex trading legal in the UK?

Yes, forex trading is completely legal in the UK, as long as you trade through a broker that is regulated by the FCA. Both retail and professional traders can trade forex, and the UK has one of the most mature and well-regulated forex markets in the world. The FCA sets rules to ensure transparency, fair conduct, and the protection of client funds.

Are my funds safe with forex brokers in the UK?

If you use an FCA-authorised broker, your funds are relatively safe. These brokers must:

• Keep client money in segregated accounts, separate from their own funds
• Offer negative balance protection to retail clients, so you can’t lose more than you deposit
• Be covered by the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 per person per firm in the event of broker insolvency

However, forex trading itself is risky, so while your funds are protected from broker failure, you can still lose money through trading decisions.

What taxes do I have to pay in the UK as a forex trader?

Tax treatment in the UK depends on how you trade:

• Spread betting: Profits are tax-free (no capital gains tax or income tax), as it is considered gambling under UK law — provided it's not your main source of income.
• CFD trading: Profits are subject to Capital Gains Tax (CGT). For the 2025/26 tax year, the annual CGT allowance is £3,000. Above this threshold, gains are taxed at 10% or 20%, depending on your income level.
• Forex as a business: If you trade full-time and rely on trading as your main income, HMRC may classify you as self-employed, in which case income tax may apply instead of CGT.

It’s wise to consult a tax advisor to ensure compliance with HMRC rules and to keep accurate records of all your trades.