With a turnover of billions and billions, Forex is the largest global market. It appeals to many who deal with currencies in hope of making extra money or even turning it into a full-fledged career.
Many UK broker businesses underlie a strict observation and regulation policy, and those are the broker firms one should look for. The ever-rising business sees the establishment of more and more broker companies, and some of them are not managed in the best way. As a beginner, it is probably better to stick with an experienced and well-reputed broker who will know how to handle your invested money.
Best Forex brokers UK provide safety, good management and a variety of options for their clients. This article will give you tips on what to look for in a broker company and what are the best UK Forex brokers all about.
The broker companies in the United Kingdom are regulated by theFinancial Conduct Authority (FCA). Their task is to ensure fair and honest trading. The Forex brokers under their regulation have to meet numerous business standards, as to keep clients assets separate from the companys assets. This automatically reduces the risk of scamming by providing a safe place for your deposits and investments.
The FCAs task is to make the market run smoothly for the benefit of the individual as well as the company. 56,000 businesses entrusted their regulation to this independent body that was founded in 2013.
The Forex market has an impact on all spheres of life affecting everyone, and a tight regulation of the market will basically improve the life for everybody involved, and that is one of the goals of FCA.
Protection of consumers and protection of the financial market and the UK economy as a whole.
Promotion of healthy competition benefiting the consumers.
Working as an independent body, the FCA is funded by the companies they regulate by charging fees. They are responsible to the Parliament and the Treasury (the Economic and Financial Ministry).
Consumer groups, trade associations, and professional bodies, EU and UK regulators, and different stakeholder are all a part of their customer base.
It is a powerful body in terms that they set the minimum criteria for financial products and can impose requirements for a product. They also have free reign to investigate organizations and persons and can ban financial products up to a year. They have the competence to require companies to change promotions if they find them misleading in any sense.
One of the reasons that the best Forex brokers UK are acknowledged as such is that they comply with the FCA rules and ensure a safe environment for their clients. The clients in return trust these brokers will take care of their investments and deposits with utmost sincerity.
We discussed above the powerful role of the FCA in the United Kingdom, their influence, agenda and efforts to enhance the UK financial market. Based on that, UK Forex brokers, under the FCA regulation, are more trustworthy in the eyes of customers and people will probably look for an FCA regulated broker.
The choice of brokers in the UK is almost infinite. All of them try to win more clients than the other by offering appealing online platforms and a range of currency pairs that suit their current and potential clients.
Basically, at a first glance, they all seem similar. Easy registration requirements, a friendly-user interface, and a user guide are mostly provided by every single UK broker. Your goal as a customer, of course, is to choose the best, and we hope we can help you to distinguish top Forex brokers UK from less trustworthy brokers.
A top broker should meet all of your needs in this turbulent and dynamic business you entered. Here are some features that should be covered by your broker.
Since the major focus of profit in this business consists of currency value movement, make sure thatyour Forex brokerallows not only depositing but withdrawals in pounds (GBP). Cashing in your money should in no way be done in other currencies but your own.
If you ensured or made some profit and want to cash in your money, your broker should offer you fast cash out, without any delays. It is your money and your broker cannot have an excuse for payout delays.
Some brokers offer immediate pay-outs in the manner that the day you won is the day you get paid, while others offer a 24-hour pay-out. Both options are acceptable and offer very good payout deals. One more thing you should do is look into their banking page and check if this information is really true.
Trading platforms are also not to be neglected. Always look for platforms that are easy to use, accompanied by user instructions and powered by strong software that runs smoothly. Some brokers offer only one platform, while the majority has a variety of platforms for you to pick.
The platforms are a big deal because everything happens right there. That is the place where you set up and close your close trades, and where you observe the overall situation of your undertakings and activities.
Some platforms require a download, others are simply found in the web browser, and the platforms are usually accompanied by mobile apps for your phones.
It is very important for UK traders to always check if the broker is licensed to operate in the UK. Check their websites for licensing and regulation information. They can be licensed somewhere else, but do not let that fool you and stick with brokers complying with the UK regulations.
The best UK Forex brokers always offer a demo account for newcomers to practice first. Use that opportunity and check out all of the platforms if you are new to the market. In that way, you can see what trading platform suits you best, and you can draw a comparison of the features, parameters, and offers each platform provides.
Before you enter the market, be aware that the trading market is a risky business. The market requires a strategic approach which can secure your profit but also cause losses.
The currency exchange market is appealing to many, i.e. making predictions on currency movements is exciting and fun. Experts usually rely on evaluating different economic factors and statistic data, while beginners usually rely on their common sense and logic to give it a try.
As a beginner it is not easy to catch up on the many different aspects of Forex trading. Therefore a good trading platform and a decent broker would come in handy.
Not all brokers offer as many currency pairs as you might wish to have at your disposal, therefore, look for a broker who offers a variety of currency pairs you can choose from. For example, if you want to trade in more than just one currency pair, look for a broker who offers multiple currency pairs.
Brokers also offer different leverage policies. Leverage, in short, is the money the broker borrows to you in proportion to the money you deposited. The leverages are usually between 1:3-1:5 (meaning that they offer you the triple-quintuple on average of the money you have). Nevertheless, always keep in mind that leverages can push you into debt and be rational in taking those offers.
Spreads is also a term you will come across a lot. Spreads refer to the differences between a currency pair (for example1 EUR equals 1.1091 USD, and the spread refers to the 1.091 cents of the USD).
The best brokers UK will usually offer currencies with low, but also with high spreads. The beginners are especially advised to start out with small spread trades to avoid significant loss.
Make your decision after you examined the different spreads and currencies the brokers offer and choose the one that fits your needs best.