Demo Account Guide
Demo Account Guide

Forex Brokers in the United Kingdom


London is one of the prominent financial industries in the world, so forex trading in the United Kingdom is highly regulated and promoted. FCA (Financial Conduct Authority) is the one overseeing the financial market and regulates the brokers. As such, UK forex brokers are required to be licensed by the FCA.


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Score Broker Country Regulation Min Deposit Max Leverage

If you are interested in trying one of the brokers in the list above, make sure to open the forex demo account so you could experience trading firsthand with virtual money. You don't even have to deposit any funds since the demo account is 100% free. It is also available in most brokers.


Yes, forex trading is legal in the UK. It is subject to regulation by the Financial Conduct Authority (FCA). The FCA mandates brokers to acquire appropriate licenses and authorization to lawfully provide forex trading services to their clients. Therefore, forex brokers could not legally offer their products and services in the UK without being registered under the FCA.

On the other side, forex traders in the UK are protected by the law when they trade in FCA-regulated brokers.


Yes, profit from forex trading is subject to taxation in the United Kingdom as a capital gain. The tax treatment of forex trading depends on the individual's status as a trader or investor and the specific circumstances of their trading activities.

Forex trading as a part-time job would fall under the purview of the Trading Allowance. You are free of any tax liability as long as your income from forex trading doesn't exceed £1000. Any profits higher than that threshold will be subject to taxation.

Here's the detail for Income Tax rates in the fiscal year of 2023/24:

Income Tax Rate Income Rate Type
Up to £12,570 0% Personal Allowance
£12,571 - £50,270 20% Basic Rate
£50,271 - £150,000 40% Higher Rate
Over £150,000 45% Additional Rate


Since forex trading in the UK is strictly regulated by the FCA, all the regulations follow the agency's guidelines. Here are some key policies that may affect the way you trade:

  1. Maximum leverage of 30:1.
  2. Maximum stop out level of 50%.
  3. No bonus programs.
  4. Funds protection guaranteed (segregated account, compensation schemes, and negative balance protection).
  5. Data security guaranteed (encryption, two-factor authentication).
  6. No restriction on hedging strategy.
  7. Spread betting is allowed.
  8. Complex registration process (for compliance with KYC and AML policies).


Choosing the best broker in the United Kingdom involves careful consideration of various factors to ensure a safe, reliable, and suitable trading experience. The following are the most important aspects to consider:

  • Regulated by the FCA, as verified by the checking on the registry page.
  • Offers competitive trading specifications that comply with FCA regulations.
  • Has a physical office in the UK.
  • Accepts GBP account currency.
  • Provides deposits and withdrawals via local banks.
  • Hosts education programs for UK clients.

Additional FAQ

The FCA has the objective of ensuring that financial markets work well in accordance with the regulation. By doing so, the FCA strives for:

  • Protecting customers.
  • Enhancing the integrity of the UK financial system.
  • Promoting fair competition in the interests of customers.

Continue Reading at What are the Top UK Financial Regulators?

To encourage compliance with the rules, the FCA will also pay regulatory visits, which can be divided into these types:

  • Virtual visit: a conference call that can last up to 2 hours with a 6-week notice prior to the call.
  • Surgery: an invitation from the FCA for a Treating Customers Fairly (TFC) meeting in a suitable venue.
  • Actual Visit: a visit by the FCA team, either announced or announced.

Continue Reading at What are the Top UK Financial Regulators?

If we look more closely, the FCA has three main objectives:

  1. Protecting consumers,
  2. protecting and enhancing the integrity of the UK financial system, and
  3. promoting healthy competition between financial services providers in consumers' interests.

These objectives were based on the Financial Services and Markets Act 2000 and amended by the Financial Services Act 2012.

Continue Reading at FSA Vs FCA: Exposing the Differences and the History

The FCA, also known as the Financial Conduct Authority, is a financial regulatory body based in the United Kingdom. The main task of this entity is to monitor and regulate every financial services industry operating inside its jurisdiction.

They are operating independently from the government and have the right to charge fees to their members so they can maintain the integrity of the financial markets within the United Kingdom.

Continue Reading at Comparing CySEC Vs FCA Regulation