Best Forex Brokers To Look At Right Now

With all of the unexpected twists and turns 2020 has had to offer so far, many are looking for the best ways to invest their money to create a nest egg for their futures, and the financial security they need to see them through their latter years.

While some are choosing to play it safe, others are looking for more high risk leveraged opportunities with the most established way individuals are building their wealth being through stocks and shares. This requires a lot of research first in the current Covid-19 environment due to the risks companies are facing and the record high prices shares have right now worldwide. It also requires a stockbroker which can have a range of fees.

How forex is different to shares

Despite popular opinion, the stock market isn’t the most liquid in the world, it is, in fact, the forex market, with trading occurring every day and over £3 trillion in value being exchanged.

Since there is no central marketplace, retail forex traders require a forex broker to trade on international currency markets. Needs will vary depending on your chosen trading style, and this will help you to determine which kind of broker would be able to support you best.

The key difference between trading shares and forex, is leverage, and in the UK this can be up to 30:1 meaning that a deposit such as £1,000 can lead to a trader having the exposure of £30,000. Small fluctuations in a currency pair such as the GBP/USD will lead to large losses or profits, therefore, based on this exposure, it’s important to understand the risks of currency trading first as they are complex instruments.

The foreign exchange (also known as FX or forex) market is a global marketplace for exchanging national currencies against one another

Brokers offering forex trading in the UK

The most important factor for any UK trader considering forex is to choose a broker that is FCA regulated in order to avoid forex scams as identified by the conduct regulator. We have identified a list of suitable FCA regulated brokers using the Compare Forex Brokers UK List.

Pepperstone

Allowing you to trade forex through CFDs or spread betting, Pepperstone offers 24/5 support, alongside a range of trading resources and a seamless account experience. The broker offers MetaTrader 4 which is the most popular forex trading platform and has won a range of awards.

IG

A good choice when it comes to UK forex trading platforms, IG offers a user-friendly interface, expert trade ideas and friendly support as standard, offering over 17,000 markets and a range of other ways to trade.

A global leader in the provision of forex, CFD and spread betting marker access, FXCM offers the most currency pairs and CFDs and caters to both active traders and beginners, providing a world class service suite to help you to reach your goals. Screenshot taken from fxcm.com/uk/

FXCM

A global leader in the provision of forex, CFD and spread betting marker access, FXCM offers the most currency pairs and CFDs and caters to both active traders and beginners, providing a world-class service suite to help you to reach your goals.

City Index

Perhaps one of the best Forex brokers for beginners, City Index is quick and simple to navigate and allows users to take a position on 84 global currency pairs from anywhere with fast and reliable execution and tight spreads.

Plus 500

Plus 500 is another top pick, owing largely to its user-friendly mobile and web platform. It offers over 2,000 financial instruments, free real-time quotes and dedicated, round-the-clock customer support.

Current lockdowns and social distancing mean market volatility will remain high, and remote work will keep traders focused on forex markets

More about forex trading

Covid-19 has seen forex trading increasing but the process of trading is extremely complex. You’ll also want to look into the types of accounts on offer; forex traders have access to a range of leverage amounts, depending on the broker – which is essentially a loan extended to margin account holders by their brokers in order to help them to maximise profits. Although this is a great opportunity for those who are looking to make big investments for big returns, it’s a risky strategy, too – as you could also stand to lose a lot if things go south.

Commissions and spreads are another key consideration; many brokers offer zero commissions on investment, instead making their commissions from a wider spread – but those that do not may charge a specific percentage of a spread, or the difference between the bid and the ask price of the forex pair.

Pay attention, too, to the initial deposit required by any given broker. Although in most cases, these can be as low as £50, this does not always apply, so look into your options before you choose your broker to find one that best aligns with your requirements and expectations.

Trading forex puts your capital at risk and most traders lose money. You can view each forex broker’s website and those that are FCA regulated will publish the % of traders that lose money. With most people losing money, you should do your research first, consider trialling a demo account and consider before opening a live account if this is right for your circumstances.

Please note: This article should not be taken as professional investment advice via luxurylifestylemag

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