Forex trading is very interesting. However, you need to tread carefully lest you make wrong decisions. The information on this website will open your eyes to very important points that can help you to make better decisions when venturing into Forex trading UK. We are dedicated to connecting UK traders with the top forex brokers in UK.
Best Forex Trading Sites UK
| Forex Brokers | Min. Deposit | Platforms | Rating | |
|---|---|---|---|---|
1
|
EUR 100/100$
|
Copy trader
MT4, MT5 |
5/5 | Visit Site Fusion Markets Review |
| Regulators: FCA, CySec, ASIC | ||||
2
 Your capital is at risk |
$200
|
Web platform, MT4
Mobile app |
4.9/5 | Visit Site easyMarkets Review |
| Regulators: CySEC, ASIC, FSA-Seychelles | ||||
3
Your capital is at risk |
$100
|
MT4, MT5
Mobile Trading |
4.8/5 | Visit Site HYCM Review |
| Regulators: FCA, CySEC, DFSA, CIMA | ||||
4
Your capital is at risk |
$200
|
MT4, MT5
VPS, API |
4.7/5 | Visit Site BlackBull Markets Review |
| Regulators: FSPR, FMA, FSA | ||||
5
Your capital is at risk |
$100
|
MT4, MT5
WebTrader, Iress, VPS |
4.6/5 | Visit Site fpmarkets Review |
| Regulators: FCA, CFTC, ASIC | ||||
What is Forex Trading?
Forex is the abbreviated form of foreign exchange. So, Forex trading stands for foreign exchange trading. Foreign exchange refers to the process involved in exchanging currencies from one form to another. It has its basis on the basic concepts of buying and selling. However, buying and selling in Forex trading takes on an entirely different dimension. One of the unique dimensions is that it only involves the buying and selling of currencies.
Some unique things about Forex trading are highlighted below. Everyone venturing into Forex trading UK will need to bear these points in mind to trade Forex profitably:
- Forex trading takes place 24 hours of 5 days each week.
- The Forex market is the largest in the world; it is also the most liquid of all the asset markets around.
- The major moves in Forex trading are made possible by the major currency pairs. These major pairs are just 20 in number.
- Forex trading involves the trudging of currencies against each other in the form of pairs.
Important Things to Consider When Choosing a Trading Website
According to Forex Online Brokers, the first steps in finance and investment are often difficult. Before you act unsafe or even make mistakes that should have been avoided, it is advisable to look for a professional broker. A broker offers you the platform you need to survive trading securities or currencies. Here we have put together the 6 most important steps to help you open an account with a broker. We wish you every success with your systems.
Security
The safety of a broker is a top priority when making your choice. The provider is only really legitimate if there is security.
Transaction costs
Whenever you trade, you must pay commission or other fees. Therefore, it is advisable to look for cheap tariffs.
Deposit and withdrawal Options
With a high-quality Fx trading site it is possible for you to deposit or withdraw without problems.
The trading platform
Most trading activities in online foreign exchange trading are carried out via various trading platforms. This means that the trading platform of your selected broker should be set up as user-friendly as possible.
Trade Execution
Your orders and orders should be processed with your broker at the best possible price. This should be done under normal average market conditions.
Customer Service
Should there be any problems, you can contact customer service at a good UK forex website.
How to trade Forex in the UK?
Forex trading is very simple and anyone can learn about how to trade. Check below for some of the very important steps you need to take to venture into UK Forex trading.
- Learn about Forex trading: Before you start trading Forex, you need to first learn about the Forex market. The background knowledge can serve you very well when you start trading. You can even get the knowledge you need free of charge online. A good place to start your quest for knowledge is this website.
- Open a trading account: After acquiring adequate knowledge about Forex trading, it is time to open a trading account with a reliable broker. Check if the broker is secure before you register there.
- Fund your account: You can then deposit money into your trading account. You can use the available deposit methods offered by your preferred Forex broker.
- Test your strategy on a demo account: Demo trading will allow you to learn how the Forex trading platform works. Demo trading will ensure you do not get confused when you start live trading.
- Start trading live: You should only start live trading after building a good strategy and improving your trading confidence.
UK Forex Trading Apps
You may or may not install an app before you can start making money from UK Forex trading. First of all, we need to show you the various trading platforms available to Forex traders:
- Ninja trader
- Zulu-trade
- Mirror trader
- MetaTrader 4
- MetaTrader 5
- ATAS
- SB- Pro
- Libertex
- Rumus
- Jforex
- WebTarder
Among all the Forex trading platforms above, only WebTarder stands out in the sense that you will not have to download anything before you can start using it. You can easily access it on your desktop computer hassle-free, provided the desktop computer is connected to the internet.
However, you will need to download the other Forex trading platforms before you can start using them. You can download the apps above on either your desktop computer mobile device. However, the mobile device must be a smartphone connected to the internet. Not all brokers offer a web-based platform, however.
Forex Market Trading Hours
The Forex market is open for 24 hours from Monday to Friday. The Forex market does not open during the weekend. As a result of this, there is no trading activity on Saturdays and Sundays. The Forex market opens in the Australian trading session and closes after the United States trading session.
- The Australian trading session corresponds to 22:00 GMT on Sunday.
- The US trading session, on the other hand, corresponds to 22:00 GMT on Friday.
The three main trading sessions in the Forex market
- Asian session: The major market is in Tokyo and it opens from 11 pm to 8 am GMT
- European session: The major market is in London and it opens from 7 am to 4 pm GMT
- North American session: The major market is in New York and it opens from noon to 8 pm GMT.
Factors that Determine Liquidity in the Forex market
Liquidity is what makes UK Forex trading to be profitable. Liquidity makes the market fluctuate and, therefore, creates buying and selling opportunities. Series of economic factors can contribute to this fluctuation. Some of them are:
- Economic situations of the countries: If you want to trade EUR/USD, for example, you should consider the economic issues that are affecting Europe and the United States. This will help you to determine the possible direction of the currency pair.
- Geopolitical risk: For example, the general elections in countries can affect the currencies of the countries. If the results are good the currency will be boosted and vice versa.
- Trade and financial flows: If the number of investors that are coming into a country is increasing, then the currency of that country will get a boost. So, it will be better to buy such a currency.
- The number of employed/unemployed persons: The economy of a country gets a boost if more people have jobs than the number of those without jobs.
Currency Pairs
We have made mention of currency pairs above, but we will emphasize more on it in this section. A currency pair is the quotation of currency unit values of two different currencies. The value of one currency is quoted against the other one. An example of a currency pair is EUR/GBP.
- EUR represents the base currency
- GBP represents the quote currency
A currency pair indicates the quantity or amount of the quote currency you will need to buy a unit of the base currency. Each currency in a quote is written in the ISO currency code. This currency code gives each currency a 3-letter alphabetic code.
The ISO currency codes for the major currencies in the Forex market are:
- United States dollars: USD
- Euro: EUR
- Great Britain Pound: GBP
- Japanese Yen: JPY
- Australian dollars: AUD
- Canadian dollars: CAD
- New Zealand Dollars: NZD
- Swiss Franc: CHF
Margin in Forex Trading
The margin represents the money that you will need to deposit in your trading account with the broker. You can use margin to secure your trading positions. The margin amount differs from one broker to another. As a beginner in Forex trading, it is advisable to go for a broker that offers a low margin percentage. This way, you will not have to risk a lot of money when you trade Forex.
If the money in your account goes near the margin percentage, you will get a margin call from your broker. The margin call is to inform you of the need to add more funds to your trading account so that you can keep your trading position open.
Bear in mind that margin is not a transaction cost. Rather, it is a security deposit held by the broker when your trading position is still open. Margin makes it possible for the trader to increase his position size. It can also enable the trader to open a trading position with leverage.
Forex Trading Positions – Long and short positions
A long position simply means a buy position. On the other hand, a short position means a sell position. A buy position means that you open a trade by speculating that the value or price of that particular Forex pair will rise. This means that you speculate that the trade will be in profit if the price of the currency pair goes up.
The reverse is true for a sell position. When you open a sell position, you are invariably saying that the price of that asset will rise in value. This also means that you are speculating on the trade being in profit if the value or price of that currency pair goes down.
Long and short position indicates that you can make profit from Forex trading both when the value rises and falls. This is because Forex trading occurs via contract for difference (CFD). Such a thing is not possible in the traditional form of trading.
Forex Trading Strategies
There are different strategies you can adopt for Forex trading UK as a beginner. It may be difficult to determine the best one among them since each strategy will have its advantages and disadvantages. The best thing to do is to simply look for one and develop it into a profitable strategy. One of the rules of thumb that a beginner in Forex trading must always remember is that there is no 100% profitable strategy in Forex trading. Virtually all Forex strategies have their draw-downs.
The Forex market is highly dynamic. As a result of this, a strategy that functioned well yesterday may fail to repeat the same feat today. So, you should constantly improve your strategy so that it can accommodate the dynamism.
Forex trading strategies are classified into two major groups
- Fundamental analysis: Those who use this strategy base their trading decisions on economic news.
- Technical analysis: This involves the use of indicators and other technical tools to make trading decisions.
Some traders, however, combine the two when developing their Forex trading strategies.
Forex Trading Robots in UK
The fundamental analysis contributes a lot to price action in the Forex market. Be that as it may, the Forex market does not always obey fundamental analysis. While news reports or economic news can influence market movement, always remember that economic news is not the only factor that improves the Forex market. The Forex market put the other essential factors into consideration before making moves.
Always remember that economic news items are of different types and have different intensities. Check below for the clarifications of economic news:
- High impact news: This has the strongest impact on market movement. The Forex market almost always obey this category of news
- Medium impact news: The market may respond to this category of news, but it does not do that always. Response of the market to this category of news depends on several other factors, including technical analysis.
- Low impact news: The Forex market rarely responds to this category of news.
Forex Robot and Trading Bots
Instead of studying the Forex market before you can start trading Forex, you can as well employ a Forex robot to do the trading for you. A Forex robot is a computer program capable of executing trades for you. The Forex robot works based on predefined entry rules and exit rules. Some Forex robots even come with money management strategies to help safeguard the funds of the end-user.
Pros and Cons of Using Forex Robots and Bots
Pros
- They help to remove emotion from trading decision
- They can trade for you 24/7. This makes them cool for very busy individuals
- Forex Robots trades in a more efficient and faster way
- They can ease the process of back-testing a Forex trading strategy
- They remove the need to learn so many things before you can start trading Forex
Cons
- Some Forex trading robots are mere scams
- The developers may be using the robots to steal your personal data
- They are unreliable when it comes to fundamental analysis of the Forex market.
Forex trading signals
Forex trading signals can help you to trade Forex without any effort. The signal provider will do all the analysis for you while you sit back to enjoy the fruit of his labor. Subscribing to a Forex signal service may have its benefits, but also has its dark side. For one, you do not know how reliable or consistent the signal service will be. Also, the signal service may stop abruptly and this will leave you dry. It is always better to study how to trade by yourself instead of going for a signal service provider. Learning how to trade may not be easy, but it will pay off in the long run.
Latest Forex Trading UK News
Forex Investment – Is it Possible to lose Money?
It is possible to lose more than your forex investment, but many brokers make sure that this does not happen. The brokers set up their trading platforms to ensure that the maximum amount you can lose will never be more than the amount in your trading account. This means that you will not own the broker any debt if you lose while trading Forex. The Forex brokers make sure that the losing trade will close automatically when your account balance cannot bear the lot size you are using anymore.
When you incur more loss than the amount you have in your trading account, the broker will bear the extra cost. The broker is not comfortable with bearing such a cost. So, it sees to it that your trade closes automatically once the loss brings your account balance to zero.
What the brokers do is to put in place a stop-out level on all trades. The stop-out level that most brokers in Forex trading UK use is 20%. So, the account will close automatically once the stop-out level is reached.
Forex Trading UK FAQs
Why does every trade I enter in the Forex market start with a loss?
Each time you open a trade, you are doing so at the Ask-price when you go long and at the Bid-price when you go short. Every trade always starts in a loss because of the spread, which represents the difference between ask- and bid prices. Before you can make a profit from any trade, you need to first cover the spread for that currency pair.
Bear in mind that the spread differs from one currency pair to another. The time of the day or trading session can also determine the spread of that currency pair. The spread on a currency pair like EUR/USD may be lower than that of AUD/NZD. One of the reasons for this is because EUR/USD is more commonly traded than AUD/NZD.
Can just anybody trade Forex in the UK?
Yes, just anybody can venture into Forex trading UK. However, you need to be a minimum of 18 years old before you can venture into Forex trading.
Must I have a desktop computer or laptop before I can trade Forex?
No, you can also trade Forex on your Smartphone, provided it is connected to the internet.
Can I make money from Forex without any previous training or Forex education?
Yes, this is possible. All you need to do is to subscribe to a copy trading/social trading service. It will enable you to make money from Forex trading UK without learning how to trade.
What are fundamental and technical analyses?
Fundamental analysis is based on analyzing the Forex market using economic news, while technical analysis involves the use of technical tools for Forex market analysis.
How can I know if a Forex broker is regulated or not?
You can check the websites of the regulatory agencies claimed by the Forex broker to find out if the name of that broker is listed there.
Does trading Forex on mobile device put the trader at a disadvantage?
The mobile trading platform usually offers only the basic trading functions. The desktop version, on the other hand, will give a lot more features to those using it for Forex trading UK.
Is Forex trading risky?
Yes, Forex trading is very risky. This is why Forex traders must tread with caution. You should not invest more than what you can afford to lose.
Do I need a college degree to learn about or trade Forex?
You do not even need to go to school. You only need to know how to read and analyze charts.
NOTICE: Due to this website not being updated any longer, you can read this article about latest forex brokers in the UK. It’s a new resources that seems to update their list regularly.