Until the late 20th century, Forex trading was only accessible to institutions. Today, large banks and corporations exchange currencies alongside individuals. Retail traders in the UK monitor finance trends and make profitable decisions with assistance from local brokers. These intermediaries do not only give access to the market but also educate clients on the most viable Forex trading strategies.
Dozens of companies are advertising brokerage services online. Due to the incredible popularity of Forex trading around the world, the existence of scam sites is not surprising. Since brokers handle their clients’ financial operations, it is vital to make the right choice. This article will help you identify reliable operators in your country.
Crucial Selection Criteria
Use the following list of factors to weed out scammers. See if you can answer these questions.
1. Does the company comply with UK regulations? What regulatory body is it monitored by?
The company must have a licence to conduct business in the United Kingdom. This information should be clearly stated on their website, as it is a sign of credibility. Check the list of regulating bodies carefully. After all, your financial flows will go through the broker.
2. Do client reviews look genuine?
Online feedback can hardly be perceived as a reliable source of opinions. However, when reviews are fake or paid, this may be deduced from the language. Look at specialized platforms with comparisons of Forex operators.
3. How much are the transaction costs?
The spreads (i.e., the difference between the Ask and Bid values) determine the broker’s commission for every transaction. Although it is natural to seek the lowest fees, remember that these must look realistic.
4. Are there any hidden fees?
Unscrupulous providers may use deceptive passages in their Terms and Conditions. Reliable brokers, on the other hand, make all the conditions transparent.
5. How much is the minimum deposit?
This usually depends on the type of account you open. Can you afford to start trading with this broker?
6. Are their deposit and withdrawal methods convenient?
This determines your ability to make transfers using the accepted methods.
7. Does the broker offer comprehensive guidance?
Renowned Forex providers supply clients with tonnes of educational material. Demo accounts should be available, so you can practice trades with zero risks. You should also be able to reach the support centre around the clock, at least on weekdays.
Example: Trading with FXTM
Established in 2011, this brand is now truly global. With 2+ million clients in 150 countries, it boasts impressive geographical coverage. In the UK, the company is subject to regulation by the FCA (Financial Conduct Authority). The mission of this entity is to protect consumers, enhance market integrity and promote competition in the finance field.
Over the years, FXTM has collected over 25 industry awards. The firm is usually included in annual forex broker reviews. Importantly, all client funds are kept separate from corporate assets. This adds another degree of protection. Other competitive advantages include:
- efficient software optimized for portable devices (MetaTrader 4 and 5),
- competitive spreads,
- low minimum deposit requirement,
- regular promotions and loyalty bonuses,
- trading of currencies, stocks, CFDs and commodities,
- around-the-clock support on weekdays.
Other UK Brokers
Here are a few other brokers with positive trust ratings. All of them are regulated by FCA. Check the companies’ sites for exact terms and conditions of trading.
- CMC Markets
- Saxo Bank.