Best UK Trading Platforms & Brokers Regulated by FCA

Written by Miro Nikolov

Miro Nikolov is the co-founder of TradingPedia.com and BestBrokers.com. His mission is to help people make profitable investments by giving them access to educational resources and analytics tools.

, | Updated: October 30, 2024

Our team of expert traders tested several regulated and trustworthy UK trading platforms and compiled a toplist with the best among them. Each trading platform operating in the United Kingdom received a quality score based on several factors, including Trustpilot rating, regulation, fees and commissions, available trading platforms, customer service and more.

Online trading with currency pairs, stocks, and other financial instruments is a stringently regulated activity in the United Kingdom. Legitimate online brokers looking to conduct business with traders from the local market must receive authorization from the Financial Conduct Authority (FCA). Established in 2013, this entity oversees all financial services companies operating in the country. It observes for misconduct on their behalf, provides them with guidelines, and safeguards the interests of consumers.

Brokers regulated by the FCA must adhere to strict consumer protection and anti-fraud policies. All retail customers from the UK have their funds stored in segregated accounts and are entitled to negative balance protection. The financial watchdog requires licensed brokers to impose leverage caps on retail customers trading with contracts for difference (CFDs) and other derivatives. These leverage restrictions serve as guardrails that protect unversed retail clients. from sustaining massive losses and running up crippling debts when trading on margin with borrowed money.

On this page, we provide extensive information about the trading regulations in the UK and cover all aspects of the operations of FCA-licensed brokerages, including the payment methods and trading platforms they offer. The members of our team have tested dozens of trading sites to identify the brokers with the highest overall trust ratings in the UK. We look into the range of financial instruments they offer and the costs associated with trading on their platforms.

Regulators	Financial Conduct Authority (FCA)
Forex Trading Leverage	30:1
Stocks Leverage	5:1
CFD Leverage	30:1

Best UK Brokers

Finding an online broker that corresponds to your individual requirements, objectives, and trading style is an important but not necessarily easy task. To help Britons who wish to dip their toes in online trading, we compiled this list of the best brokerages that accept customers from the UK market. Our recommendations are based on a thorough research process that covers all aspects of the brokers’ operations, from trading costs and fees to market diversity and payments.

TRADE NOWREAD REVIEW
Regulators
Financial Services Authority of Seychelles (FSA)
Vanuatu Financial Services Commission (VFSC)
Australian Securities and Investments Commission (ASIC)
Platforms
MT4, MT5, WebTrader, Fusion+, DupliTrade
1. Fusion Markets
Min Deposit
£0
Fees
No fees for deposits and withdrawals
No fees on dormant accounts
Deposit Methods
Commissions
£2.25 per lot plus spreads on Zero accounts
Spread
Starts from 0 pips
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
500:1
Instruments
Forex, precious metals, energy, soft commodities, stocks, indices
Gleneagle Asset Management Limited (ABN 29 103 162 278) trading as Fusion Markets, is the issuer of the Fusion Markets Products described in this communication. Trading in Fusion Markets Products involves the potential for profit as well as the risk of loss which may vastly exceed the amount of your initial deposit and is not suitable for all investors. You should read all of these Financial Product Service Terms, the Product Disclosure Statement (PDS) and the Financial Services Guide (available on our website) carefully, consider your own financial situation, needs and objectives for investing in these Fusion Markets Products and obtain independent financial advice.
Fusion Markets was launched by a group of seasoned traders who share a combined experience of 50 years. The brokerage provides cost-effective trading with currency pairs, equity indices, energies, precious metals, soft commodities, stocks, and cryptocurrencies. Customers can trade on margin with contracts for difference (CFD), with maximum leverage ratios set at 30:1 for EU retail accounts and 500:1 for other countries.
The broker offers a varied range of trading platforms, including MetaTrader 4 and MetaTrader 5. Copy trading is also possible via the Fusion+ and DupliTrade platforms. Those who are new to the markets can test the trading site via free demo accounts. Fusion Markets has no minimum deposit requirements, allowing customers to start trading with an amount they are comfortable with.
Several account types are available, namely Zero, Classic, and Professional. Customers of the Muslim faith have the option to trade swap-free via Islamic accounts. Traders with live accounts face a balanced range of payment methods, including Visa, Mastercard, Skrill, Neteller, Perfect Money, PayPal, AstroPay, and Fasapay. The brokerage has waived all additional charges on these deposit methods.
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Regulators
South African Financial Sector Conduct Authority (FSCA)
Financial Services Agency of Japan (FSA)
Central Bank of Ireland
Cyprus Securities and Exchange Commission (CySEC)
Australian Securities and Investments Commission (ASIC)
Poland Financial Supervision Authority (PFSA)
British Virgin Islands Financial Services Commission (BVI FSC)
Israel Securities Authority (ISA)
Abu Dhabi Global Markets (ADGM)
Platforms
MT4, MT5, AvaTradeGO, AvaOptions, DupliTrade
2. AvaTrade
Min Deposit
£100
Fees
Free deposits and withdrawals
£50 inactivity fee
Deposit Methods
Commissions
0% commission
Spread
Starts at 0.9 for Forex
Withdrawal Methods
Leverage EU
30:1 for retail accounts
Leverage non-EU
400:1
Instruments
Forex, stocks, indices, spread betting, commodities, ETFs, bonds, vanilla options
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
AvaTrade is licensed to service customers from nine jurisdictions, including the UK, Canada, Ireland, South Africa, Japan, and Australia. Since it launched in 2006, the company has earned the trust of more than 400,000 registered traders who cumulatively execute approximately 2 million trades on a monthly basis. Apart from standard options like currency pairs, commodities, indices, and stocks, clients can dabble in spread betting, forex options, and vanilla options. All in all, the broker offers over 1,000 tradable instruments.
The spreads for major currency pairs like EUR/USD average 0.9 pips at AvaTrade and there are no commissions. Registering with the brokerage is a seamless process. Seasoned traders can choose from several types of accounts, including professional and Islamic accounts that incur no swaps on overnight positions. Beginner traders can build experience and hone their skills by opening free demo accounts loaded with £100,000 in virtual credits.
Where trading platforms are concerned, the brokerage provides a choice from MT4, MT5, DupliTrade, AvaOptions, and WebTrader. AvaTrade supports a variety of popular deposit and withdrawal methods without charging additional processing fees. Clients can fund their live accounts via credit and debit cards, wire transfers, and digital wallets like Skrill.
On the flip side, clients with dormant accounts are subject to a £50 monthly fee after three months of inactivity. AvaTrade is friendly to novice traders, providing them with a healthy range of educational materials. Beginner courses are available for forex and stock market trading.
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Regulators
Australian Securities and Investments Commission (ASIC)
Seychelles Financial Services Authority (SFSA)
British Virgin Islands Financial Services Commission (BVI FSC)
Cyprus Securities and Exchange Commission (CySEC)
Platforms
TradingView, MT4, MT5, Proprietary Platform
3. easyMarkets
Min Deposit
£25 on standard accounts
Fees
Free deposits and withdrawals £25 inactivity fee
Deposit Methods
Commissions
No commission on MT5
Spread
Starts at 0.5 for major currency pairs
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
400:1 (500:1 for MT5 accounts)
Instruments
Forex, precious metals, soft commodities, indices, stocks, cryptocurrencies, CFDs, forwards, options
Trading in leveraged instruments may result in a substantial or complete loss of funds and therefore should only be undertaken with risk capital. The definition of risk capital is funds that are not necessary to the survival or well-being of the user. easyMarkets strongly recommends that a user, who is considering trading our products, read through all the main topics contained in the easyMarkets website so that he/she may obtain a clear and accurate understanding of the risks inherent of trading.
EasyMarkets is a reliable online broker that facilitates trading with a well-balanced range of financial instruments, including shares, commodities, and forex pairs. The brokerage has been witnessing tremendous growth since its launch in 2001 as Easy-Forex, but eventually rebranded and expanded its product portfolio to feature contracts for difference on indices, energies, and cryptocurrencies. Derivative trading with vanilla options is also possible at easyMarkets.
Trading with easyMarkets is simple and accessible even for beginners, who will benefit from negative balance protection, highly competitive fixed spreads, and various useful features like guaranteed stop-loss orders. Customers can choose from multiple trading platforms, including TradingView and MT4. MT5 accounts are available as well but come with variable spreads. The company also offers a proprietary web-based platform loaded with powerful tools like dealCancellation and Inside Viewer.
Clients of easyMarkets face a choice from three main account types, namely Standard, Premium, and VIP. Each of these comes with a minimum transaction size of 0.01 lots, fixed spreads, and no commissions on your open positions. The broker supports 19 base account currencies and accepts payments with Visa, Maestro, Mastercard, AstroPay, Skrill, Neteller, and WebMoney, among others. Local methods like Fasapay and UnionPay are an option for traders from Indonesia and China, respectively. Deposits with certain payment solutions can take several business days to reflect in your easyMarkets balance.
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Regulators
Financial Conduct Authority (FCA)
Australian Securities and Investments Commission (ASIC)
Cyprus Securities and Exchange Commission (CySEC)
Jordan Securities Commission (JSC)
South Africa Financial Sector Conduct Authority (FSCA)
Platforms
MT4, MT5, WebTrader, MetaTrader Supreme Edition, StereoTrader
4. Admirals
Min Deposit
£100
Fees
Free deposits, one free withdrawal per month
Deposit Methods
Commissions
£1.4 to £2.4 per lot per side, depending on the monthly trading volume for metals and currency trades on Zero MT5 and MT4 accounts
Spread
Starts from 0.5 pips on standard MT4 and MT5 trading accounts
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
1,000:1
Instruments
Forex, commodities, indices, stocks, bonds, cryptocurrencies, ETFs
Investments involve risks and are not suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Since its launch in the early 2000s, Admirals has been consistently demonstrating a firm commitment to providing reliable and cost-effective services to traders worldwide. The company boasts a strong global presence and has over 24,000 active customers from more than 130 jurisdictions. Admirals holds operating licenses from multiple financial regulators, including the FCA, CySEC, ASIC, and JSC.
Previously known as Admiral Markets, the brokerage supports trading with multiple assets via the broadly used MetaTrader 4 and MetaTrader 5 platforms. Clients can dabble in various financial instruments, including forex, commodities, stocks, indices, bonds, cryptocurrencies, and exchange-traded funds (ETFs). Spreads are sharp at Admirals but the exact cost of your trades depends on the type of live account you open. There are no spreads on Zero MT4 and MT5 accounts; clients are charged commissions instead. The minimum spreads for standard trading accounts average 0.5 pips.
Admirals is largely regarded as one of the best online brokers for beginner traders. The website offers exhaustive educational content, including online courses developed by professional investors. Webinars, free trading videos, and detailed articles are available to clients looking to hone their skills and gain a better understanding of the markets. Traders can better control their volatility via stop, limit, and take-profit orders. Customers have access to in-depth information about the latest market sentiments, trading news, and various tools for fundamental analysis.
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Regulators
Financial Conduct Authority (FCA)
Cyprus Securities and Exchange Commission (CySEC)
Dubai Financial Services Authority (DFSA)
Australian Securities and Investments Commission (ASIC)
Platforms
MT4, MT5, cTrader, TradingView
5. Pepperstone
Min Deposit
No minimum deposit requirements
Fees
No fees on deposits and withdrawals
No inactivity fees on dormant accounts
Deposit Methods
Commissions
£2.25 commission per standard forex lot per side on Razor accounts
Spread
Start from 0 pips on specific forex pairs
Withdrawal Methods
Leverage EU
30:1 (500:1 for professional traders)
Leverage non-EU
500:1 for Australia, 400:1 for Saudi Arabia, 50:1 for Dubai
Instruments
Forex, commodities, stocks, indices, ETFs, CFDs, spread betting
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.9% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Pepperstone is an established brokerage that gives you access to more than 1,200 financial instruments spread across different asset categories like shares, forex, commodities, and indices. Trusted by over 400,000 traders worldwide, the company operates legitimately with licenses issued by the financial watchdogs of Australia, Dubai, Saudi Arabia, Germany, and the Bahamas. The Financial Conduct Authority regulates the UK-facing version of the website.
The broker resorts to multiple top-tier liquidity providers to deliver the sharpest possible spreads on a broad range of instruments. Orders are executed at blazing speed without any dealing desk intervention. The fill rates at Pepperstone reach an impressive 99.94%. Clients have the flexibility to trade whenever and however they want via several different platforms. Algorithmic traders can take advantage of the popular cTrader platform. MT4 and MT5 are also available at Pepperstone. Additionally, customers have access to TradingView whose state-of-the-art charting tools can help them sharpen their trading expertise.
Pepperstone facilitates informed decision-making by offering a varied assortment of educational materials, including detailed trading guides, webinars, and free videos. Traders can tailor their experience to their individual risk tolerance and budget as the brokerage does not impose any minimum deposit requirements. You can start trading with Pepperstone with as little money as you want. As for the supported payment methods you can fund your account with, these include Visa, PayPal, Mastercard, and bank transfers, among others.
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Regulators
Australian Securities and Investments Commission (ASIC)
Financial Conduct Authority (outward passporting)
Cyprus Securities and Exchange Commission (CySEC)
Belize Financial Services Commission (BFSC)
Dubai Financial Services Authority (DFSA)
Platforms
MT4, MT5, WebTrader
6. XM Group
Min Deposit
£5
Fees
No fees on deposits and withdrawals
£5 monthly fee after 90 days of inactivity
Deposit Methods
Commissions
No commissions on micro and standard accounts
Spread
Starts at 0 pips for major currency pairs on Zero accounts; 0.6 for Micro and Standard accounts
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
1000:1
Instruments
Forex, stocks, soft commodities, precious metals, energies, indices
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
XM is an award-winning brokerage that gives online traders access to more than 1,000 instruments. The trading site has over ten million customers worldwide and provides extensive coverage of all major asset classes, allowing you to trade on margin with stocks, indices, energies, metals, and currency pairs. Registered clients can avail themselves of sharp spreads that average zero pips for all major forex pairs traded via Zero accounts. The renowned broker adheres to a strict non-requotes policy, with 99.35% of all orders being executed in under one second.
Customers who are new to the markets can hone their skills by creating free demo accounts topped up with £100,000 in virtual credits. Live trading is possible via MetaTrader 4, MetaTrader 5, and a proprietary web platform that requires no additional downloads. Registration is an effortless process with XM, with most clients being able to start using their accounts within the same day. The broker offers Micro, Standard, and Zero accounts, with a contract size of 1 lot for all three options.
XM accommodates traders with a comprehensive research and education center. Customers can gain a competitive advantage by watching educational videos or listening to daily podcasts that provide them with the latest market insights. Technical summaries, trading ideas, and an economic calendar are also featured on the website. Clients can start their live trading experience by depositing as little as £5 into their accounts. XM accepts a broad array of payment solutions, including standard bank transfers, cards, and digital wallets.
TRADE NOWREAD REVIEW
Regulators
Financial Conduct Authority (FCA)
Cyprus Securities and Exchange Commission (CySEC)
Australian Securities and Investments Commission (ASIC)
British Virgin Islands Financial Services Commission (BVI FSC)
South Africa Financial Sector Conduct Authority (FSCA)
Platforms
MT4, MT5, Proprietary Web Platform
7. Markets.com
Min Deposit
£100
Fees
No deposit and withdrawal fees
£10 monthly fee after 90 days of inactivity
Deposit Methods
Commissions
No commissions on trades
Spread
0.6 pips on major pairs
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
500:1
Instruments
Forex, stocks, commodities, indices, ETFs, bonds, spread betting, IPOs
High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.
Markets.com ranks among the best trading sites on the internet as it offers tight spreads, lightning-fast order execution, and north of 3,000 tradable instruments. The company has acquired over 4.3 million customers since it started doing business back in 2009 and presently handles approximately 22,500 trades per year. The broker has obtained authorization from all major financial regulators in the world, including the FCA, ASIC, CySEC, and FSCA.
Customers can optimize their trading experience as Markets.com charges zero commissions on trades. Minimum spreads align with the industry average and start at 0.6 for majors like the EUR/USD. Apart from standard asset classes like forex, shares, commodities, and indices, the broker supports investing in exchange-traded funds and bonds. Spread betting is an option for clients who are well-versed in financial derivatives. MetaTrader 4 and MetaTrader 5 are supported but we recommend novices to start with the broker’s proprietary platform since it is friendlier to beginners.
Customers from Europe can gain greater exposure to the markets by taking advantage of maximum leverage ratios of 30:1. Those located outside the Old Continent will benefit from higher leverage ratios that reach 500:1. UK traders can fund their live balance with familiar methods like Visa, Mastercard, Apple Pay, and bank transfers. There are no extra fees for depositing and withdrawing but dormant accounts incur a £10 monthly fee after three months of inactivity.
TRADE NOWREAD REVIEW
Regulators
Financial Conduct Authority (FCA)
Cyprus Securities and Exchange Commission (CySEC)
Hong Kong Securities and Futures Commission (SFC)
Investment Industry Regulatory Organization of Canada (IIROC)
Japan Financial Services Agency (FSA)
US Commodities Futures Trading Association (CFTC)
Monetary Authority of Singapore (MAS)
Australian Securities and Investments Commission (ASIC)
Cayman Islands Monetary Authority (CIMA)
Platforms
MT5, MT4, WebTrader, Proprietary Platform
8. Forex.com
Min Deposit
£100
Fees
Free deposits and withdrawals £12 monthly fee after one year of inactivity
Deposit Methods
Commissions
0.08% on major shares
Spread
0.7 average spreads for major forex pairs
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
400:1
Instruments
Forex, indices, stocks, commodities
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone.
Trusted by more than one million customers across the globe, Forex.com is the go-to platform for traders looking to dabble in the foreign exchange markets at competitive pricing. Forex traders can buy and sell more than 80 currency pairs with zero commissions and spreads as low as 0.7 pips for majors like the EUR/USD. Other asset classes like soft commodities, precious metals, indices, and shares are also available for trading here. Execution speed is excellent and averages 0.02 seconds, with 99.99% of all trades being executed successfully.
The experienced broker provides a choice from a full suite of browser-based and downloadable trading platforms, including MT4, MT5, and WebTrader. New customers can give the award-winning brokerage a risk-free test drive by setting up demo accounts funded with £10,000 in virtual money. Demo accounts can be used for a period of 90 days, after which time clients can create live Standard, MT4, Direct Market Access, or Corporate accounts.
Forex.com empowers customers with a competitive advantage by giving them access to a large database of educational resources and research tools. Traders can browse the educational content depending on their level of knowledge and experience. The Academy section of the website is divided into three main categories, beginner, intermediate, and advanced. An economic calendar can also be found at Forex.com. The broker is licensed in several jurisdictions, including the UK, Japan, and Australia.
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Regulators
Cyprus Securities and Exchange Commission (CySEC)
Federal Financial Supervisory Authority (BaFin)
Platforms
MT4, MT5
9. Libertex
Min Deposit
£10
Fees
No fees on deposits; a 0.5% fee on bank transfer withdrawals; a 1% fee on Neteller withdrawals; £1 on credit and debit card withdrawals
Deposit Methods
Commissions
Floating commissions based on the markets’ spread levels
Spread
0.2 pips for EUR/USD
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
999:1
Instruments
Forex, metals, agricultural commodities, oil, gas, indices, stocks, cryptocurrencies, ETFs
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 85.9% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Libertex is a reliable trading platform with over two decades of experience in the financial markets. The established company has won over forty industry awards for excellence and was dubbed the Best CFD Broker in Europe by the Global Brands Magazine in 2022. Libertex excels in the provision of tradable contracts for difference with over 250 underlying assets, including cryptocurrencies, forex, exchange-traded funds, and commodities. Customers of the Cyprus-based broker can additionally invest in over 100 stocks of the biggest companies from the energy, telecommunications, technology, and consumer services sectors.
One of the most distinctive features of Libertex is its proprietary platform whose user-friendly design makes it easily navigable for beginners and seasoned traders alike. The platform is packed with useful features, including an economic calendar, real-time news feeds, and chart trading. MetaTrader 4 and its successor MetaTrader 5 are also available to clients of the brokerage.
Libertext poses as a great choice for foreign exchange traders looking to minimize their costs as it advertises minimum spreads of 0.2 pips for major currency pairs like EUR/USD. Beginner traders can hone their skills by setting up free demo accounts loaded with 50,000 in virtual credits. UK customers who feel confident enough in their expertise can leverage their positions at a ratio of 30:1, while those based in other countries like South Africa will benefit from maximum leverage of 999:1.
TRADE NOWREAD REVIEW
Regulators
Financial Conduct Authority (FCA)
Monetary Authority of Singapore (MAS)
Platforms
MT4, TradingView, WebTrader
10. City Index
Min Deposit
£100 recommended minimum
Fees
Free deposits and withdrawals
£12 monthly fee after one year of inactivity
Deposit Methods
Commissions
0.08% on stocks
Spread
0.7 pips for major currency pairs; 0.5 pips for spot gold; 0.4 pips for major indices, 1.5 pips for US crude oil
Withdrawal Methods
Leverage EU
30:1
Leverage non-EU
400:1
Instruments
Forex, spread betting, CFDs, indices, commodities, stocks, bonds, options, interest rates
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
City Index is a global provider of cost-effective trading services whose history dates back to 1983. The company was established in the UK and currently operates as part of the publicly traded StoneX Group. The brokerage has more than one million registered customers and specializes in the provision of derivatives like options, contracts for difference, and spread betting. It boasts an impressive coverage of over 13,500 markets for all major asset classes, including forex, shares, indices, and commodities. The speed of order execution averages 0.02 seconds, which renders City Index a solid choice for traders who dabble in rapidly moving and highly volatile markets.
The broker offers a browser-based platform equipped with advanced charts, customizable workspaces, and state-of-the-art analytics tools. One-click trading through charts is possible as well. MetaTrader 4 and TradingView are also supported by City Index. The broker is a perfect fit for beginner and mid-level traders who will benefit from a comprehensive research portal. Online courses and lessons are readily available to those who wish to take their trading to the next level.
City Index is regulated in nine jurisdictions, including Canada, the UK, Cyprus, Singapore, and Australia. The brokerage boasts a membership in the Financial Services Compensation Scheme (FSCS) and can reimburse customers with a maximum compensation of £85,000 in the event of insolvency. Clients can start trading with any amount they feel comfortable with since City Index imposes no minimum deposit requirements. With that in mind, the brokerage recommends new clients to fund their live balance with at least £100.

Trading Regulations in the UK

The Financial Conduct Authority (FCA) is tasked with the responsibility of overseeing the financial markets in the United Kingdom. At the time of publication, the regulatory entity oversees over 50,000 financial services companies and online brokerages. The body was created under the provisions of the Financial Services Act 2012 and regulates the financial industry alongside the Prudential Regulatory Authority (PRA) and the Financial Policy Committee (FPC) of the Bank of England.

The FCA has several main objectives, including preserving the integrity of the local financial industry, promoting healthy competition among market participants, and ensuring high levels of consumer protection. Online brokers registered with the watchdog must adhere to strict guidelines that aim to safeguard local traders and their funds.

Forex Trading Regulations in the UK

The provision of foreign exchange services requires relevant authorization from the Financial Conduct Authority. Three types of permits are available to forex brokers, starting with the dealer licenses granted to companies that have adopted the market-making model that involves taking the opposite side of customers’ positions.

Intermediary licenses are granted to forex brokerages that have adopted the straight-through processing (STP) model of order execution, which gives traders direct access to the foreign exchange markets. In this case, their trades are being hedged with same-value transactions with liquidity providers.

Finally, there are the so-called restricted or limited brokerage licenses. These are referral-type of permits, allowing companies to carry out marketing campaigns and sales without having the authorization to hold traders’ funds. All firms applying for forex licenses are expected to meet specific initial capital requirements but the minimum required amounts vary depending on the type of permit they apply for.

The bare minimum is set at £125,000. Full dealer licenses require an initial investment of £730,000, while the threshold for limited permits is set at £500,000. Firms based outside the country are eligible for permits on condition they have a physical presence in the country. The companies must set up offices in the UK and employ regional personnel for all key management and compliance positions. Their executive directors should also be locals and gain approval from the FCA to ensure they are suitable to hold their positions.

Licensed forex brokers must store the funds of their clients in segregated accounts separate from their operational capital. The requirement ensures all customers get their money back if a broker suddenly exits the local market due to license revocation or insolvency, for example. The FCA imposes levies on the brokers it regulates and a portion of the collected taxes goes toward the Financial Services Compensation Scheme (FSCS). Launched by the British government, the scheme safeguards clients of authorized financial services firms and compensates them with up to £85,000 per eligible person if their trading provider bankrupts.

Stocks Trading Regulations in the UK

The Financial Conduct Authority regulates all securities markets in the UK under the Financial Services and Markets Act 2000, including the operations of the London Stock Exchange (LSE). The watchdog enforces compliance and monitors the market disclosures of all participants in the market such as stock brokers and security issuers. The FCA is also responsible for setting out the listing requirements and eligibility criteria for companies looking to trade their shares publicly on the LSE.

Companies seeking to trade their securities on the Main Market must first apply for admission to the Official List of the watchdog. Their shares should be freely negotiable and transferable without any restrictions. The cumulative value of their shares should amount to £30 million or more.

Another requirement stipulates that at least 10% of the applying company’s shares should be in free float, meaning that they should belong to the public or be freely available for public trading. A couple of years ago, the minimum threshold for free float shares was higher at 25% but the financial regulator decided to reduce it for certain companies depending on the circumstances.

There are three types of stock brokerages operating on the UK market. Full-service brokerages are exactly what they sound like since they provide services that are fully tailored to their customers’ needs, including investment advice. Such brokers typically profit from the commissions they charge. Discount brokerages follow the instructions of their customers without providing investment or trading advice. Online brokers, on the other hand, facilitate remote trading with stocks, giving their clients access to a broad range of charting tools, stock analysis, and market sentiments. Regardless, all three types require approval from the FCA before they can start offering their services in the UK.

CFD Trading Regulations in the UK

Trading with derivative instruments like contracts for difference (CFDs) is heavily regulated in the UK under a framework based on the Markets in Financial Instruments Directive (MiFID) issued in 2014. It applies to all financial services providers operating within the European Economic Area (EEA) and imposes restrictions on the maximum leverage retail clients can take advantage of when trading on margin. The idea behind these leverage caps is to prevent inexperienced and less knowledgeable traders from slipping into debt in the event of rapid market movements.

Using leverage enables derivative traders with limited capital to gain a larger exposure to the markets by using borrowed funds. The catch is leveraging your positions can greatly enhance both your potential profits and losses. To spare retail traders from slipping into debt, the FCA requires brokers to impose a maximum leverage cap of 30:1 for major forex pairs. Leverage restrictions are proportionate to the volatility of the financial instruments one trades with. The more volatile an instrument is, the lower the leverage those who trade with it can use.

Thus, the available retail leverage for gold, major indices, minor and exotic currency pairs is capped at 20:1. CFDs on other commodities and non-major indices come with a leverage ceiling of 10:1. Retail clients who trade individual shares can boost the value of their positions at a maximum ratio of 5:1. Cryptocurrencies are easily the most volatile financial instrument you can dabble in, so their leverage ratio is the lowest at 2:1 under the MiFIN framework. With that said, retail customers in the UK can no longer trade cryptocurrencies on margin as the FCA unveiled an outright ban on this practice in early 2021. Professional traders are not affected by the prohibition, however.

The financial watchdog requires licensed brokers to close out the positions of their retail clients once their balance drops to 50% of the margin necessary to maintain them open. CFD brokerages are prohibited from actively encouraging their customers to participate in leveraged trading. They must post standardized warnings in prominent places on their websites to inform customers about the risk associated with derivative trading.

Last but not least, they must provide negative balance protection to retail traders. This mechanism serves as a safety net, preventing retail clients from losing more money than they have available in their live balance. Professional investors are not covered by this policy.

UK Trading Regulations FAQ

1. How can I identify unreliable online brokers?

2. Do I have to pay taxes on the income I generate from online trading?

3. Will I get in trouble for trading with a broker that is not registered with the FCA?

4. Can I use leverage when trading cryptocurrencies with FCA brokers?

5. What is the maximum leverage UK traders can use?

Funding and Withdrawing from UK Trading Accounts

Reliable UK-friendly brokers tend to prioritize speed, efficiency, and security when it comes to payments. They typically offer a broad selection of convenient banking solutions and take all the necessary measures to prevent any delays in the processing of their clients’ transactions. Continue reading as we explore the most common payment methods British traders can use to deposit and withdraw from their live trading accounts.

Depositing at UK Trading Account

British traders can fund the balance of their live accounts with a varied range of convenient payment methods, starting with everyone’s familiar debit and credit cards. Various card brands are accepted but the most popular options typically include Visa, Maestro, Diners Club, and Mastercard. Card deposits normally reflect in your live balance in real time without any delays provided that you have already verified your account. If not, the broker will prompt you to send verification documents to confirm your identity, address, and payment method. To this end, you must provide color copies of the front and back of the card you deposited with to prove you are the rightful owner.

Digital wallets are also broadly accepted at UK-friendly trading sites, giving you the flexibility to initiate real-time deposits without revealing any sensitive financial information in the process. PayPal, Skrill, Neteller, and WebMoney comprise the most common options from this category. Using these payment methods is not associated with additional fees on the broker’s behalf, which is another benefit of transacting with them.

Online banking is also a suitable option for UK traders who wish to replenish their live balance. You can initiate the deposit straight through your online banking account or use the services of third-party online banking processors like Trustly. Either way, you can anticipate no extra charges on your broker’s end.

Bank wire transfers pose another secure method of transferring money directly from your bank account to your online trading balance. This method is less time-efficient as it usually takes several business days for the transaction to come through. Traders can expedite the process by emailing the broker a copy of their bank’s SWIFT code and their trading account number. UK brokers usually apply no charges for depositing via wire transfers but you might incur some processing fees from your bank.

Common Deposit Methods Offered by UK Brokers
Type of Method	Usual Limits per Transaction	Processing Timeframes	Processing Fees
Debit and credit cards	£100 min.	Instant	Free
Digital wallets	£10 min.	Instant	Free
Wire transfers	£100 min.	3 to 7 days in some cases	Free
Online banking	£10 min.	Instant	Free

Withdrawing from UK Trading Account

The best online brokers on the UK market strive to make the withdrawal process as seamless and hassle-free as possible. They achieve this goal by working with a varied selection of flexible and convenient payment solutions, including the above-mentioned credit and debit cards, digital wallets, and conventional wire transfers. It is essential to mention that clients are generally expected to withdraw via the same payment solution they have used when funding their accounts.

So if you have used a debit card, for example, you must request your withdrawal to the same card. In many cases, customers must withdraw the original deposit back to the method they have used to process it before they can switch to another supported withdrawal solution. By means of example, let’s suppose you have deposited £1,000 via credit card and generated £2,000 in net profits. The broker will return the first £1,000 to your credit card and only then can you request to withdraw the remaining £2,000 via another method like awire transfer.

Speaking of which, credit and debit cards are commonly preferred for withdrawals due to their short processing timeframe which rarely exceeds three business days. The same goes for online banking and digital wallets like PayPal – they also facilitate smooth and speedy withdrawals from verified accounts. Wire transfer withdrawals are slower by rule of thumb, requiring between five and seven days to process on average. Traders should bear in mind that the vast majority of UK-licensed brokers handle withdrawals on business days only. If you request a payment during weekends or on public holidays, you are likely to experience additional clearance delays.

Common Withdrawal Methods Offered by UK Brokers
Type of Method	Usual Limits per Transaction	Processing Timeframes	Processing Fees
Debit and credit cards	£100 – £100,000	1 to 3 business days	Free
Digital wallets	£100 – £20,000	1 to 3 business days	Free
Wire Transfers	£100 (no maximum limit in many cases)	5 to 7 business days	Free
Online Banking	£100	1 to 3 business days	Free

UK Trading Platforms

Committed to satisfying the needs of all types of traders, the best UK brokers offer a versatile selection of platforms for manual and automated trading. Some platforms facilitate trading in specific financial instruments like options or spread betting, while others are better suited for performing in-depth fundamental and technical analysis. Most platforms are cross-compatible and work seamlessly on all devices, including desktop computers, tablets, and smartphones.

Third-party platforms like MetaTrader 4 (MT4) and MetaTrader 5 (MT5) by MetaQuotes are broadly available at most UK-friendly brokers. Traders normally have the option to download and install MT4 or MT5 on compatible desktop computers but using the browser-based version WebTrader is also an alternative. Let’s dive deeper into these platforms and their specifications.

MetaTrader 4

MT4 is widely preferred by British traders due to its navigable interface and simple design. The platform is supported by most FCA-regulated online brokers and is predominantly suitable for foreign exchange trading, although other asset classes like shares, commodities, and indices are also available for trading via contracts for difference. Due to its user-friendliness, the platform poses as a great solution for retail traders looking to dip their toes in the markets.

Many advanced traders also stick to MetaTrader 4 due to the proliferation of tools for fundamental and technical analysis it offers. The platform allows for hedging and is packed with great features, including 30 technical indicators, 9 timeframes, and 31 graphical objects. There are four types of pending orders – buy limit, sell limit, sell stop, and buy stop.

Algorithmic trading is one of the biggest strengths of MetaTrader 4. MT4 users will benefit from a wide range of robots for automated trading known as Expert Advisors (EAs). These robots require very little human input and can be programmed to alert traders whenever they identify potential profit opportunities based on specific predetermined parameters. Creating personalized advisor robots is an option for users who are familiar with the MQL4 programming language.

MetaTrader 5

Released in early June 2010, MT5 is the more advanced successor of MT4. The platform supports a greater number of tradable instruments, including forex, stocks, commodities, bonds, options, and futures. It uses a different programming language (MQL5) and enables more efficient back-testing compared to its predecessor. Being the more advanced version, MT5 has superior functionalities and capabilities, which render it suitable for more experienced traders. They have access to a depth-of-market feature that enables them to figure out where the prices of specific assets might be heading.

Additionally, MT5 features 44 graphical objects as opposed to 31 in MT4. Traders can take advantage of 21 timeframes and 38 technical indicators. The platform comes with several advanced order types, including Return, Immediate or Cancel, and Fill or Kill. MT5 makes it possible for users to transfer funds between accounts and supports hedging, exchange trading, and netting. The built-in economic calendar provides valuable real-time information and enables them to keep track of all key financial announcements that may impact price movements.

Many UK brokers that work with MT4 and MT5 allow their customers to trade with the browser-based version known as WebTrader. The latter is associated with greater flexibility as it does not require downloading and setting up any additional software. Both MT4 and MT5 are compatible with portable devices, with mobile users having the option to download dedicated apps for Android and iOS.

DupliTrade

Many of the UK brokers recommended on this page offer the third-party platform DupliTrade. Launched in 2017, the platform is broadly considered an ideal solution for those who wish to dabble in copy trading. It comes with an uncluttered, easy-to-use interface and enables users to automatically replicate the actions and strategies of seasoned traders directly into their own trading accounts. DupliTrade offers a rich selection of tried-and-tested strategy providers to accommodate all copy traders, regardless of their risk tolerance. All strategy providers contributing to the pool undergo rigorous audits and only the most successful traders are singled out.

The platform is mostly suitable for copy trading with currency pairs, commodities, and shares. Users can remain on top of their game as DupliTrade alerts them via email each time a copied trading activity occurs in their accounts. It is available at all major brokers that accept clients from the UK, including AvaTrade, Pepperstone, and Fusion Markets.

Getting started with DupliTrade is a breeze. To begin with, you must set up an account with the platform and then register with an online brokerage that supports it. Once you link your trading account to your DupliTrade account, you must pick strategy providers to follow, adjust your level of risk exposure, and you are good to go.

Best UK Trading Platforms