The 5 best forex brokers for the UK and how to choose the right one

Every pip counts in forex trading. But those tight spreads brokers advertise? They only tell part of the story.

In the UK—where 43% of the world’s forex trading volume takes place—traders need more than just low spreads to stay ahead.

Many learn too late that their broker’s “tight spreads” can widen fast during market swings or that trading platforms can freeze up just when they’re needed most.

To succeed in today’s markets, UK traders need fast execution, dependable platforms, and the security of Financial Conduct Authority (FCA) oversight.

Finding the best forex broker (UK) takes careful research—but we've done the heavy lifting here at InvestorsObserver.

We’ve put together a list of the best forex apps and brokers in the UK based on factors that matter most to forex trading (UK):

• Trading costs and spreads
• Range of currency pairs and markets
• Speed and accuracy
• Quality of customer support
• Regulatory compliance

With that in mind, here’s our verdict on the best forex trading platform for UK traders:

• CMC Markets: Leading-edge technology with no commission
• IG: a legacy choice with award-winning apps
• Pepperstone: Low fees and powerful platforms
• Saxo: Pro-level trading tools and advanced feature
• XTB: Multi-asset access and user experience

Note: FX broker offerings can change rapidly, and information should be verified directly with the brokers for the most up-to-date and accurate details.

Here’s another happy reminder before we get started (ICYMI): In the UK, spread betting profits are tax-free!

Just remember, tax treatment depends on your individual situation and can change with new laws.

CMC Markets: FX-focused tools with no commission

CMC Markets' Next Generation platform shows why they're considered best-in-class.

With access to over 330 currency pairs and tools that actually make sense, they've built something that works for both technical traders and newcomers.

Dig into the platform, and you'll find features that matter.

Their pattern recognition scanner checks 120+ popular instruments every 15 minutes, automatically flagging emerging chart patterns - from wedges to head and shoulders formations.

For technical analysis, you get over 115 indicators and 70 chart patterns. The platform also lets you trade directly from charts and customize your workspace.

The numbers work in your favor, too.

EUR/USD spreads start at 0.7 pips, GBP/USD at 0.9, and there's zero commission on forex trades.

While some UK brokers limit you to major pairs, CMC offers 12 forex index baskets alongside their 330+ currency pairs. Start with as little as you want - there's no minimum deposit.

Trading costs

Here's what you'll pay:

• EUR/USD spreads from 0.7 pips
• GBP/USD spreads around 0.9 pips
• No commissions on forex trades
• First monthly withdrawal free
• No minimum deposit required

Best for:

CMC Markets stands out for traders who take technical analysis seriously but don't want to fight with clunky software.

Their platform suits both technical analysts who need depth and newer traders who are still learning the ropes.

If you value sophisticated charting tools and automated pattern recognition over rock-bottom spreads, and you're ready to move beyond basic forex trading platforms, CMC might be exactly what you need.

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IG: The UK’s award-winner

Recognized as the UK’s No.1 retail forex provider according to Investment Trends UK, IG combines over 50 years of experience with FCA-regulated security.

With IG, you’re not just limited to the basics—they give you over 80 currency pairs, which means you can trade majors, minors, and even exotics if you’re looking to try something different.

On a standard account, EUR/USD spreads average around 0.98 pips, but active traders can see those costs drop to about 0.82 pips.

And with no deposit fees or surprise charges, it’s straightforward and budget-friendly.

IG’s platform selection includes its award-winning web and mobile apps, which are ideal for quick, clear analysis.

For advanced tools, ProRealTime and MetaTrader 4 (MT4) integrate nearly 100 indicators and extensive charting.

The only catch is they don’t offer MT5, so if that’s a must, you may want to weigh that.

Trading costs

• EUR/USD spreads from 0.98 pips on standard accounts
• All-in costs are as low as 0.82 pips for active traders
• No commission on standard accounts; commission only on Forex Direct execution
• No deposit fees
• Minimum deposit: £250 for UK accounts

Best for:

If you’re after choice and reliability, IG’s range and tools make it a solid platform for traders at any level. They bring the market depth and experience you need without a lot of extra noise.

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Pepperstone: Extremely fast and cheap

Both slow execution and high costs can destroy your edge in forex trading—and Pepperstone tackles both problems head-on.

Founded in 2010 and FCA-regulated, they've built their reputation on combining ultra-low trading costs with some of the fastest execution technology in the market.

Most brokers talk about tight spreads, but Pepperstone delivers with raw spreads starting from 0.0 pips on major pairs.

More impressively, their execution technology achieves average speeds of 30 milliseconds, with price improvement on over 80% of trades.

For active traders, this combination of low costs and fast fills can make the difference between profit and loss.

Platform choice shows Pepperstone's commitment to serious traders.

Beyond the standard MetaTrader 4 and 5 offerings, they provide cTrader for algorithmic trading and direct TradingView integration.

Each platform connects directly to top-tier liquidity providers with no dealing desk intervention – meaning the price you see is the price you get.

Trading costs

Here's what you can expect with Pepperstone:

• EUR/USD spreads: From 0.0 pips on Razor accounts (plus commission).
• Standard accounts: No commission, slightly wider spreads.
• Razor account commission: $7.00 per standard lot round turn on MT4/MT5; $6.00 on cTrader.
• No deposit fees.
• No inactivity fees.
• $0 minimum deposit.

Best for:

Pepperstone shines for traders who count costs and execution speed as top priorities.

Their platform particularly suits active traders and algorithmic strategies where every pip and millisecond counts.

While they may not offer the broadest range of products, they excel at their core mission: delivering fast, cost-effective forex trading.

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Saxo: Elite tools for the serious trader

For traders who want the world at their fingertips, Saxo is a great fit.

This Danish investment bank gives investors access to more than 70,000 financial instruments—from stocks and forex to bonds and commodities.

Since its launch in 1992, Saxo has built its reputation on sophisticated trading platforms that rival professional trading desks, making it a go-to choice for serious traders who've outgrown basic brokers.

In a major move in January 2024, Saxo slashed fees across the board.

They ditched the old £7.95 monthly custody fee and inactivity charges that used to penalize quieter trading periods.

US stock trades now cost just $1 minimum—down significantly from previous rates—while UK trades start at £3. Their currency conversion fees have also dropped to a competitive 0.25%, making international trading more affordable.

Traders can choose between two powerful platforms: SaxoTraderGO, a web-based platform for flexible access, and SaxoTraderPRO, a feature-rich desktop application for advanced trading.

Both offer sophisticated charting tools, real-time analysis, and live market commentary. For experienced traders, Saxo goes further with algorithmic trading capabilities and API integrations.

The way Saxo structures its service is telling. Start with a Classic account (under £200,000), and you'll get solid tools and research.

But once you climb to Platinum (£200,000+) or VIP status (£1 million+), the real perks kick in - better rates, faster support, and extra features that heavy traders will appreciate.

Trading costs

Let's break down Saxo's current fee structure:

• UK trades: £3 minimum or 0.08% of trade value (whichever is higher)
• US trades: $1 minimum commission
• Custody fees: Classic account: 0.15% p.a., Platinum account: 0.12% p.a., VIP account: 0.09% p.a.
• Currency conversion: Up to 0.25% across all accounts
• No inactivity fees
• Tiered pricing based on account size: Classic: Under £200,000, Platinum: Above £200,000, VIP: Above £1 million.

Best for:

Saxo makes sense for traders who've outgrown basic platforms. If you trade multiple markets and value professional tools, their recent fee cuts make them worth a serious look.

While probably overkill for casual investors, anyone handling serious money will appreciate their institutional-grade service.

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XTB: Easy multi-asset trading with an exceptional user experience

Trading doesn't have to be complicated with XTB.

While some brokers overwhelm you with cluttered screens and confusing menus, XTB's proprietary xStation platform strips away the complexity without sacrificing essential trading tools.

Don't mistake simplicity for basic, though.

XTB has a serious range - over 48 currency pairs, 1,900 global stocks, and markets spanning from ETFs to cryptocurrencies.

(The bad news: if you’re in the UK, you can’t trade cryptocurrency CFDs).

Their xStation mobile app brings the same clean interface to your phone, while traders who prefer MetaTrader 4 can still use that platform.

Beginners get a proper welcome at XTB.

Their Trading Academy walks you through the basics with live webinars, and you can practice risk-free with a demo account.

Need help? Their support team answers quickly through chat, phone, or email five days a week.

Unlike some brokers who want large deposits upfront, XTB lets you start with whatever suits your budget as there’s no minimum deposit requirement.

Trading costs

Here's the full picture of XTB's fees:

• Spreads from 0.1 pips on major pairs (Pro account)
• Standard account: No commission, wider spreads than Pro
• No deposit or withdrawal fees
• Inactivity fee: £10/€10 monthly after 365 days
• Zero minimum deposit requirement

Best for:

XTB hits the sweet spot between user-friendly and professional. Their platform suits both newcomers learning the ropes and active traders who need efficient execution.

While they might not offer every exotic market and feature out there, they make trading accessible without sacrificing the tools serious traders demand.

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How to choose the right forex broker for you

The forex brokerage world has seen a major shift in recent years.

While spreads are tighter than ever, experienced traders know that real success depends on more than just low rates.

Here’s what really counts when choosing the best forex broker:

Look closely at pricing

Don't let flashy "zero commission" claims fool you. Smart traders examine the total cost picture: overnight fees, withdrawal charges, and those easily overlooked account maintenance fees. Above all, stick with FCA-regulated brokers - your funds deserve that protection.

Test the technology

Modern trading platforms pack impressive features, but can you use them when it counts? Download demo accounts during peak market hours. Watch how orders execute under pressure. Check if mobile apps deliver the same capabilities as desktop versions. Your platform should enhance your trading, not complicate it.

Consider your trading style

High-frequency traders need different things than long-term position traders. If you're scalping, focus on execution speed and tight spreads. For longer-term trading, research tools and analysis might matter more. Make sure your broker's strengths align with how you actually trade.

Check the support structure

The true test of broker support comes when markets turn volatile or technical issues strike. Call their desk during different market hours. Try their live chat. Email their team. Good support proves invaluable when you need it most.

Evaluate account options

Look beyond basic accounts. You want:

• Leverage that matches your risk tolerance
• Account types that scale with your growth
• Reasonable entry points
• Quick access to your money
• Multiple funding options
• Solid demo trading environment

The best broker for you aligns with your trading goals, skill level, and market approach. Take time to test thoroughly - this choice affects every trade you'll make.

Choosing a forex broker isn't about finding the "best" - it's about finding your best fit.

The tightest spreads mean nothing if the platform freezes during your biggest trades, and fancy tools won't help if you can't navigate them. Take time to test-drive your shortlist.

After all, this isn't just about opening an account - it's about choosing the platform where you'll build your trading future.

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Frequently asked questions (FAQ)

How do forex brokers make money?

Forex brokers make money mainly through spreads—the difference between the buying and selling price of a currency pair.

Think of it like a store's markup: when you buy euros with dollars, you'll pay slightly more than the market rate, and when you sell, you'll get slightly less.

That tiny difference is how brokers profit on each trade.

Most brokers also charge commissions on trades and overnight fees for positions held past market close.

While these costs might seem small individually, smart traders compare them across different brokers—because, in the fast-moving forex market, every penny counts.

What exactly are forex brokers?

Imagine trying to exchange currencies directly with banks around the world - it would be a nightmare.

Forex brokers solve this by acting as your gateway to global currency markets. They provide the trading platform, tools, and market access you need to trade currencies from your computer or phone.

Think of them as your professional middleman in the world's largest financial market.

Which brokers offer instant withdrawals?

While "instant" might be stretching it, some brokers are definitely quicker than others.

IG, XTB, and Pepperstone have solid reputations for fast withdrawals. But remember - even these brokers need to follow security checks and banking procedures.

Your withdrawal speed often depends on your payment method and account verification status.

What makes a forex broker "the best"?

There's no one-size-fits-all answer here. The best broker for you depends on what matters most to you.

IG excels in research and range, Pepperstone in speed and costs, Saxo in professional tools, and XTB in user experience.

All our top picks share some crucial features, though: solid FCA regulation, competitive pricing, reliable platforms, and strong track records.

How much do forex brokers charge?

Broker fees come in different varieties.

Some offer commission-free trading but make up for it with wider spreads. Others charge commission but give you tighter spreads.

Pro accounts usually offer better rates but might require larger deposits.

The key is looking at the total cost - spreads, commissions, overnight fees, and any extra charges - not just the headline rates brokers advertise.