Legal Forex Trading in the UK: Important Considerations

Legal Forex Trading in the UK: Important Considerations

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Trading foreign currencies (Forex) is a sophisticated, hazardous, and exhilarating activity that takes advantage of price variations between different currencies. However, due to time constraints, you may need to use the services of an online forex broker to execute trades on your behalf. Luckily, there are a ton of alternatives to consider. The challenge, however, is in determining which forex broker is worth your time. We have found the top UK forex brokers, so you don’t have to:

CityIndex 

CityIndex could be one of the top forex brokers in the UK if you’re seeking lower spreads. They launched in 2014 and are currently operating as a GAIN Capital subsidiary. They have more currency pairings (84) than any other forex broker we looked at, covering all the bases from the most popular to the most obscure. For their majors, they also offer a customized platform with unique spreads. Although not the most user-friendly option, the platform is adaptable and performs adequately on desktop computers. If you’re more familiar with its interface, the MT4 platform is also available.

FXCM 

FXCM was established in 1999 and provided access to a wide variety of foreign currency pairs. The available spreads are marginally higher than the market average, and there are just 39 currency pairs to choose from. They facilitate large trades and bold maneuvers, making them ideal for traders who want to act quickly and frequently. FXCM, one of the finest licensed forex brokers in the UK, provides traders of all skill levels with access to a wide variety of trading platforms and other resources. However, due to the loss of their US regulatory license, they are unable to serve any customers in the United States. Despite this drawback, their platform is useful for traders who are mostly concerned with making deals using the few currency pairings they offer.

FxPro 

FxPro is one of the more recently established UK forex brokers to get our attention. They launched in 2006. Nonetheless, they provide access to over 70 FX pairings and a variety of account options. If the idea of paying commissions makes you queasy, this isn’t the greatest forex trading platform in the UK, varying account kinds have different spreads and commission rates. Therefore, traders that have a specific trading style or strategy in mind can benefit greatly from using this platform. Since it is only compatible with the whole MetaTrader (MT4 and MT5) suite, it is best suited for seasoned traders.

A Brief Introduction to Tickmill

Tickmill is an international CFD and forex brokerage that was established in 2014. It also functions as a trading platform. The findings of the examination of Tickmill indicate that the online platform is subject to the rules and regulations of financial authorities, such as the Financial Conduct Authority FCA of the United Kingdom. Because Tickmill is affiliated with top-tier liquidity providers, the company can guarantee that its customers will always trade assets with the tightest possible spreads and the fewest possible risks. The fact that the commission fees which the brokers charge for their products and services are quite modest is what differentiates the broker forum of Tickmill from other top forex brokers on the market. No matter what trading method they employ, the users are able to reduce their overall transaction costs thanks to the low commission rates. Tickmill is now concentrating its efforts on lowering its swap rates in order to make it possible for its users to maintain open trading positions for extended periods of time without sacrificing their profitability. No do you know the answer to the question “What is Tickmill?”

Legal Forex Trading in UK

Trading foreign exchange in the United Kingdom is lawful, so long as you deal with a broker that has been approved and monitored by the Financial Conduct Authority (FCA). That’s why, according to article in IBT Media, you should stick with reputable forex brokers who are in good standing with the Financial Conduct Authority (FCA). You can see what kinds of clients a broker can work with and what kinds of investments it can offer by verifying the broker’s license like:

  • Differences in Agreement
  • Investment rights or interests (Contractually Based Investments)
  • Investment-related property (Security)
  • Spot foreign exchange contracts