Best Legal UK Forex Brokers and Trading PlatformsThe UK is the ideal place for a Forex trader and Forex brokers on the British Isles have always been known to possess some of the most desirable traits when it comes to trading. They provide traders with trading products and services which are always up to date, highly relevant and admired both home and abroad. In fact, for many people who are well acquainted with Forex trading, the financial market in the UK boasts innovative regulatory guidelines which are almost tailor made for the professional Forex trader.

UK laws are much more lenient when it comes to which broker you choose. There are no strict trade restrictions provided that there is no breach of laws preventing money laundering. Because of these regulatory and legal conditions UK Forex brokers have long been at the head of the queue when it comes to customer service, dedication to keeping transactions safe and, at the end of the day, helping traders make profit.

It is paramount for everyone participating in the Forex trading market that there are rules and laws which govern how the trading shall be done. In the UK there are three main agencies and institutions which ensure that traders will be offered fair conditions and that their funds will never be subjected to scams and frauds.

The most important regulatory body in charge of regulating Forex brokers in the UK is the Financial Conduct Authority (FCA). The FCA is an agency which is independent from other administrative bodies and is tasked with overseeing the legality of all UK financial companies as well as individual investors who participate in Forex trading.

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The agency was established by the UK parliament in 2012 and was given the responsibility to apply and implement the Government’s legal guidelines and procedures to make sure that both the macroeconomic and microeconomic aspects of regulating different financial markets are overseen in greater detail. Joining the FCA in watching over UK’s financial markets are the Bank of England and the Prudential Regulatory Authority (PRA). The PRA is basically owned by the Bank of England and is more of a quasi-governmental body since the Bank of England is independent from the Government of the UK.

Frequently Asked Questions

In an attempt to explain legal UK Forex trading, Forex Trading Platforms and the regulated UK trading market in more detail, we will list the answers to the ten most frequently asked questions on the topic.

  1. What is the lowest possible initial trading capital that UK Forex brokers require?

    Established UK Forex brokers facilitate trading for as low as £15. However, there are also brokers who would sometimes accept even lower sums of money depending on the type of account you want to open with them. Institutional traders usually have to start with bigger initial investments. One of the more positive things about trading with a UK based Forex trader is the fact that they offer you the chance to start with high leverage, meaning that you can start with a very low initial trading capital.

  2. What happens if a regulated FCA broker becomes insolvent?

    FCA guarantees compensation to traders thorough the Financial Services Compensation Scheme (FSCS) in a situation when brokers become insolvent and cannot continue operating and provide service to their customers. The (FSCS) ensures a maximum compensation of £50,000 if a broker firm becomes insolvent. This means that if your Forex broker is liquidated you will be entitled to a compensation of up to £50,000. If the amount that you were supposed to receive exceeds the compensation limit you will again get the guaranteed maximum of £50,000.

  3. How secure are my funds when trading with a UK based Forex broker?

    Because the FCA dictates that Forex brokers under its umbrella must follow the specified regulatory guidelines your funds are very secure with a UK Forex broker. All UK based Forex brokers must have at least £1 million in operating capital at all times. This ensures that payment to customers will be done in timely manner and this also gives the security to traders that the broker they trade with is solvent. The FCA also requests that traders’ funds have to be kept separate from the broker’s operating capital. The facilitator of the trading process must ensure that traders’ money and the firm’s capital are always on separate accounts. This will prevent traders’ money from being wrongly applied and misused.

  4. What are the trading restrictions imposed on UK based Forex brokers?

    Unlike the brokers in the USA, UK’s top Forex brokers don’t impose any trading restrictions on traders. This means that there are no restrictions on hedging and leverage. In addition, they offer a greater variety of trading, and spread betting and binary options are not considered to be against the law in the UK. And since spread betting is not taxed in the UK, it is an appealing alternative to Forex trading for many people.

  5. What are the payment options that UK based Forex brokers offer to customers?

    As you might expect, UK Forex brokers work with all possible payment options. Your money can be transferred through credit card payments (Visa, MasterCard, Diners Club International, Union Pay etc), online payment processors (Neteller, Skrill, QIWI, Perfect Money etc), check payments and bank wires. Please note that bank wire transfers are usually processed within 24 hours of your withdrawal request; however, the funds are credited into your bank account within 2-5 business days.

  6. Can I be lured into a broker scam with a UK based broker?

    It is highly unlikely, even impossible, to end up in a broker scam if you trade with broker firms under the umbrella of the FCA. If a situation such as this one occurs, the FCA will act swiftly and will revoke the broker’s license and exalt huge penalties tarnishing the broker’s reputation so much that it will be impossible for the company or any of its executives to ever enter the business again.

  7. How can I avoid getting involved in a broker scam?

    The FCA provides all trading enthusiasts with an online register of all regulated companies. In it you don’t only see the name of the company, but also get important information about it. All traders have to be wary of brokers who claim on their websites that they are regulated by the FCA and should always check the official FCA register themselves first. Often times an illegitimate company would go to great lengths just to make a quick profit. These companies usually don’t even have offices in the UK and opt to buy virtual UK email addresses so that they can create the illusion of being based there.

  8. How can I choose the best Forex broker for me?

    Traders should always check the FCA online register of regulated brokers and should continue from there. Usually there are small differences between Forex brokers as they all compete to get as many customers as possible. However, it’s always a good idea to look at the broker’s website and see the types of accounts they offer, the leverage they can give you and the bonuses that you might get. If you like what you see there then you shouldn’t think twice.

  9. Do UK Forex brokers cater to people who are new to Forex trading and Forex Trading Platforms?

    They definitely do. In fact, many UK based Forex brokers have an option to start trading with a virtual money account before you switch to the real money one. In this way, people to whom the concept of Forex trading is new and unknown have a chance to learn the ins and outs of trading without losing any real money.

  10. What is mobile Forex trading?

    Mobile trading is participating in the Forex market from your tablet or smartphone. As you might imagine, it is becoming much more popular than the standard desktop computer trading and that’s why it is essential that you possess a device with a Forex trading app installed on it. Luckily, this is very easy as most Forex apps are free and work perfectly well on operating systems such as Android or iOS (iPhone). You can also invest some money and install some of the apps that you have to pay for as they have offer some extra features.

Advantages of Trading in a Regulated Forex Market

There are quite a few benefits when it comes to trading in a regulated Forex market. Here are the main ones:

  • You can rest assured that your investments are safe;
  • No matter what happens you can always be compensated by the governing body (up to £50,000);
  • In a regulated market you stand to make a profit regardless of whether the market is rising or falling.

Know When to Stop

There are no disadvantages of partaking in an organized and regulated Forex market per se. The only disadvantage, which in fact extends to trading, betting and speculating in general, is that sometimes traders don’t know when to stop.

A regulated Forex market won’t stop you from losing money if your trading strategy isn’t working. When you find yourself in a situation like this, take a step back, rethink your strategy and start over when conditions for trading are better.