Compare Forex Brokers

Why UK traders need an FCA-regulated broker list

A forex or CFD broker that takes UK retail clients has to be authorised by the Financial Conduct Authority. Authorisation gives each firm a Firm Reference Number you can look up on the FCA register, and it brings UK retail protections that offshore brokers do not: capped leverage, negative balance protection, and access to the Financial Ombudsman Service and the Financial Services Compensation Scheme.

Lists built for other markets miss this. An Australian or offshore comparison ranks brokers under different rules, different leverage, and a different compensation scheme, none of which apply to a UK trader. Each of the 27 FCA-regulated brokers covered on this site has a verifiable UK FCA retail entity. Where a broker only serves UK clients through an offshore arm, or has no UK retail permission, it is left off rather than dressed up as a UK option.

How we compare brokers

Our ranking comes from a scored model, not a sponsored running order. The full process sits on the methodology page, including the eight weighted criteria and the live UK account testing behind every claim. The scores feed the individual broker reviews, and every review states the broker’s UK entity and FRN.

Spread testing

Spread is the cost you pay on every trade, so it carries the heaviest weight. We measure it in GBP terms on the pairs UK traders actually use, led by GBP/USD and EUR/GBP, and we record the average rather than the marketing “from” figure a broker quotes.

Execution testing

Execution decides whether the price you click is the price you get. Where we test it live, routing runs through LD4 in London, the data centre most UK-facing brokers use, and we log fill speed and slippage rather than taking the broker’s word for it.

FCA rules every UK retail trader should know

The FCA caps leverage and adds protections that change how much you can lose. These apply to every retail account at an FCA-authorised broker, whichever firm you pick.

Leverage is capped at position open

These limits come from FCA policy statement PS19/18, in force since 1 August 2019. Any 100:1, 200:1 or 500:1 figure you see advertised is an offshore or professional-client number that a UK retail account cannot use.

Negative balance protection and 50% margin close-out

Your account cannot go below zero. Negative balance protection means a fast market move cannot leave you owing the broker money. Margin close-out is separate: once your account equity falls to 50% of the margin needed to keep your positions open, the broker starts closing them.

Bonuses banned, risk warnings standardised, crypto CFDs banned for retail

UK brokers cannot offer deposit bonuses, cashback or other trading incentives to retail clients. Each firm has to publish a standardised risk warning that includes its own percentage of retail accounts that lose money. Crypto derivatives, including crypto CFDs, were banned for UK retail consumers under PS20/10 from 6 January 2021.

FSCS protection up to £85,000 and the Financial Ombudsman Service

If an FCA-authorised broker fails and cannot return your money, the Financial Services Compensation Scheme covers eligible claims up to £85,000 per person, per firm. For disputes that do not involve insolvency, the Financial Ombudsman Service handles complaints once the broker’s own process is exhausted.

How to choose a broker if you are new to this

Three questions narrow the field faster than any feature list.

What do you want to trade?

Most people start with a handful of currency pairs, then add indices or commodities. If you mainly want UK and global shares, check whether the broker offers share CFDs or actual share dealing, because they are taxed and structured differently. IG and CMC Markets carry the broadest multi-asset range; Plus500 and eToro lean towards a simpler retail experience.

Which platform do you already know?

A platform you can read at a glance beats a powerful one you fight with. MT4 and MT5 suit traders who want charting and automation; Pepperstone, XTB and Trading 212 are common starting points. If you have never used a trading platform, a broker’s own web app is usually the gentler route.

How much do you plan to deposit?

Minimum deposits range from nothing to a few hundred pounds. Fund what you can afford to lose, not what unlocks a tier. The leverage caps above mean a small account still controls a meaningful position, and a meaningful loss, so size your first trades against the deposit, not the leverage.

A note on costs

Two numbers decide what trading costs you: the spread, quoted in pips, and the commission, charged per lot. A “zero commission” account usually carries a wider spread, and a raw-spread account usually adds commission, so compare the total. We work both out in GBP for every broker and surface them on the lowest spread forex broker UK and lowest-commission pages.

Raw versus standard accounts, a worked comparison

One standard lot on EUR/USD costs the spread plus any commission. One pip is worth about $10, so the two account types compare like this (figures illustrative, at a GBP/USD rate near 1.27).

Raw pricing usually wins once you trade more than a handful of times a month, while a standard account can be simpler for occasional trades. The lowest spread and lowest commission guides run this test for every broker.

Our standards

Justin Grossbard is the co-founder and head of research at CompareForexBrokers. He leads UK broker testing routed through London LD4 and has personally tested every FCA-regulated broker on this site. David Levy is the head of content and fact-checker at CompareForexBrokers and signs off every figure before publication. Read the full testing model on methodology and the editorial standards on why we’re trustworthy.