Biggest Forex Brokers in The UK 2024
Biggest Forex Broker in the UK - HF Markets
Top Forex brokers in the UK by trading volume:
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HF Markets - A leading Forex broker in the UK with a daily trading volume of 13.8 billion USD, regulated by multiple authorities including the FCA
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Oanda - Boasts a daily trading volume of 12.84 billion USD and is regulated by several global entities, including the FCA
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AvaTrade - With a daily trading volume of 9.36 billion USD, it's regulated by various international bodies, including the FCA
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IG Markets - A prominent UK Forex broker, trading 8.16 billion USD daily and regulated by the FCA among others
In 2023, the UK's Forex market witnessed a surge in trading activity, solidifying its position as a leading global Forex hub. Identifying the most prominent ones becomes crucial, with many brokers competing for traders' attention. This article delves into the biggest Forex brokers in the UK and the advantages of trading with them.
Why is trading volume important?
Volume in Forex trading represents how much currency is being traded within a certain period of time. It is one of the most important aspects of trading as it can reflect the interest of the market participants, the traded instrument's liquidity, and can also be used as a leading indicator.
To a broker, daily trading volume is very important as it can have an impact on the company's bottom line. It's a marketing tool to attract clients and, more importantly, retain them. When a client is happy with the liquidity, spreads, and commissions, they are less likely to leave for another broker.
So, what are some benefits of high daily trading volume?
Better Liquidity. This is the most important factor, as it directly impacts the broker's business model. Liquidity refers to the number of buyers and sellers in the market. When there are more participants, it is easier to execute trades at desired prices
Lower Commissions. When there is a high daily trading volume, brokers are able to charge lower commissions as they are making more money from the volume
Lower Slippage. Slippage is the difference between the expected price of a trade and the actual price that is filled. When there is high liquidity, slippage is less likely to occur as there are more counterparties willing to take the other side of the trade
Fewer Gaps. A gap is when the price of a currency pair moves from one level to another without any trading happening in between. These can happen overnight (when the market is closed) or during the day. When there is a high volume, there are fewer gaps. This is one reason why high-volume trading sessions tend to be more stable
If you're a Forex trader, it is beneficial to choose a broker with the highest daily trading volume. The benefits you get will directly impact your trading success.
List of the biggest Forex brokers in the UK
| Forex broker | Average Trading Volume per Day (Billion USD) | Regulation |
|---|---|---|
13.8 |
FCA, Dubai FSA, FSCA (SouthAfrica), FSA (Seychelles), CMA (Kenya) |
|
12.84 |
Monetary Authority of Singapore, International Enterprise Singapore, IIROC, FCA, ASIC |
|
9.36 |
Central Bank of Ireland, ASIC, B.V.I Financial Services Commission, FSA, FSCA, Abu Dhabi Global Markets |
|
8.16 |
FCA, ASIC, JFSA, FMA, MAS |
|
8.04 |
FCA, ASIC, DFSA |
|
7.8 |
FSCA, CySEC, FCA, SCB |
|
7.11 |
ASIC, FSCA, FCA |
|
6.56 |
FCA |
|
5.69 |
ASIC, Dubai FSA, FCA |
|
5.13 |
FCA |
|
4.87 |
FSA (Seychelles), FCA, CySEC, FSCA, Labuan Financial Services Authority |
What is the biggest Forex broker in the world?
IC Markets is the largest Forex broker in the world, with close to $10 trillion in trading volume per year. Currently, IC Markets operates in over 200 countries. It also has over 200,000 active clients and is continuing to grow.
The company offers a wide range of Forex products, including major, minor and exotic currency pairs, commodities, precious metals, and stock indices. It also provides different types of accounts, such as Standard, ECN, Swap-Free, and Islamic. , due to their high trading volume (1.11 trillion in March 2022) has low spreads, competitive commissions, and ultra-fast order execution.
IC Markets' trading conditions are some of the best in the industry. The spreads start at 0.0 pips for all platforms — MetaTrader 4, MetaTrader 5, and cTrader. Execution is also very fast, with an average of 0.4 ms once an order is placed.
Margin and leverage requirements are also very low. For major currency pairs, the margin is 0.5%, and the leverage is 500:1. Leverage helps traders magnify their returns but also increases risk.
You also access over four metals and 60 currency pairs on all platforms with IC Markets.
IC Markets was founded in 2007 by a team of finance, trading, and technology professionals. The company was created with the mission to provide lower spreads, superior execution technology, and unrivaled liquidity.
Over the years, IC Markets has continued to innovate and improve its products and services. In 2015, they became the first Australian broker to introduce the cTrader platform. In 2017, they launched the world's largest true ECN Forex trading account with a $200 minimum deposit.
Other top Forex brokers in the UK by trading volume
HF Markets
HF Markets is a Forex broker that has an average trading volume of $13.8 billion per day. HF Markets was founded in 2010 and is headquartered in the Marshall Islands. The company is regulated by the Marshall Islands Business Corporation Act.
HF Markets offers five types of trading accounts. They are micro, premium, zero spread, PAMM, and HFCopy. The minimum deposit for a micro account is $5, and for a premium account, it is $100. You can trade over 150 assets through HF Markets.
OANDA
OANDA is a Forex broker that has an average trading volume of $12.8 billion per day. The company began in 1997, and is one of the oldest forex brokers. OANDA has its headquarters in New York City and offices in Toronto, London, Singapore, and Tokyo.
OANDA uses two types of pricing models: spread only and commission. The spread-only model includes the broker's trading fees in the spread. The commission model is a traditional brokerage fee charged separately from the spread. Since the broker doesn’t add anything to the bid/ask spread for commission fee accounts, that provides traders who opt for commission fees with tighter spreads.
OANDA offers two types of accounts: Standard and Advanced Trader accounts. Either account gives you access to trade over 70 Forex pairs. The minimum deposit requirement for a standard account is $0, and the minimum for an Advanced Trader account is $10,000.
AvaTrade
AvaTrade is a forex broker with an ADTV of $9.36 billion. By depositing only $100, you can open an account with this broker. And apart from trading over 60 Forex pairs, AvaTrade gives you an opportunity to trade gold, silver, and cryptocurrencies.
AvaTrade trading platforms include MetaTrader 4, Webtrader, and AvaTradeGo. They also have fixed spreads starting from 0.6 pips.
IG Markets
IG Markets is a forex broker with over $8.16 billion in ADTV. The minimum deposit amount you need to open an account with them is $250. With this broker, you can trade over 80 Forex pairs, as well as other assets, such as indices, stock shares, and cryptocurrencies.
Their trading platforms include MT4, L2 Dealer, and ProRealTime. IG clients get low spreads, starting from 0.6 pips.
Rules and Regulation
Licensing in the UK
Brokerage activity in the United Kingdom is licensed and regulated by the FCA. The country's main public legal institution imposes strict requirements on applicants:
- registration with Companies House
- payment of membership fees to a British bank
- maintaining an office within the jurisdiction
- preparing a document package to substantiate licensing objectives and compliance with all regulatory requirements
Investor protection in the UK
Investors in the UK are protected by the Financial Services Compensation Scheme (FSCS). The FSCS’ purpose is to pay traders compensation (up to £85,000 per client) in case a financial company goes bankrupt or is liquidated.
Taxation in the UK
If a trader’s profits are £50,000 or more, he must pay a 20% income tax. Profits under £50,000 are tax-free.
What are the benefits of trading with a big Forex broker in the UK?
Regulatory protection. One of the primary benefits of trading with renowned Forex brokers or prop firms in the UK is stringent regulatory protection. Big brokers are typically regulated by the Financial Conduct Authority (FCA), ensuring they adhere to strict guidelines and standards and safeguarding traders' interests
Financial stability. Larger brokers have a strong economic backbone. This stability ensures they can withstand market volatility and provide continuous services to their clients
Security of funds. Top-tier brokers in the UK often employ advanced security measures like segregated bank accounts for clients' funds, ensuring money protection even if the broker faces financial difficulties
Liquidity and execution speed. High trading volumes associated with big brokers ensure ample liquidity. This results in faster execution speeds, allowing traders to enter and exit the market efficiently
Bonuses and programs. Prominent brokers offer lucrative bonuses, loyalty programs, and promotional offers, providing traders with additional value and opportunities
How to choose the best big Forex broker in the UK?
Regulatory compliance. Ensure the broker is licensed and regulated by a reputable authority, preferably the FCA in the UK. This ensures trustworthiness and reliability
Leverage and margin amounts. Evaluate the broker's offered leverage and margin requirements, ensuring they align with your trading style and risk appetite
Spread and commission rate. A narrower spread and reasonable commission rates can significantly impact profitability. Compare rates among top brokers
Deposits and withdrawals. Prioritize brokers with swift and hassle-free deposit and withdrawal processes, preferably without exorbitant fees
Trading platforms. The broker should provide a user-friendly and technologically advanced platform, offering essential tools for analysis and trading. Check whether the platform offers copy trading in the UK
Trading hours. Check if the broker's trading hours align with global market hours, ensuring you get key trading opportunities. Check the trading sessions in the UK and whether brokers support them
Amount of Forex markets available. More currency pairs provide more trading options. Choose brokers offering a diverse range of currency pairs
Educational tools available. Especially crucial for beginners, the broker should offer educational resources to enhance trading skills
Summary
The UK's forex market remains dominant in 2023, with numerous brokers vying for supremacy. Trading with the biggest forex brokers offers multiple advantages, from robust regulatory protection to enhanced liquidity and execution speeds. However, traders must meticulously choose the best trading app, considering various criteria, from regulatory compliance to the array of educational tools provided.
FAQs
What is the best broker in the UK?
In 2024, eToro stands out as the overall best stock broker in the UK.
How many Forex brokers are there in the UK?
The Financial Conduct Authority (FCA) states that over 200 forex brokers operate in the UK.
How big is the FX market in the UK?
The average daily reported UK foreign exchange turnover reached $3,117 billion, marking a 9% growth from October 2022 but a 5% decrease compared to April 2022.
What is the largest Forex city in the world?
London holds the title as the world's largest forex trading center. With major banks and financial institutions headquartered in the city and a time zone facilitating trade across Asian and American hours, London remains a forex powerhouse.
Team that worked on the article
Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).