Best forex trading platforms UK: The foreign exchange market is having the largest turnover among all other financial markets. It is known for currency exchange or trading. There can be different reasons for exchange such as tourism, trading, business, and others. A forex transaction is executed when one currency is bought, and another one is sold.
What Is Meant by Forex Market?
The foreign exchange market or FX forex market is the marketplace from where all the currency exchanges are carried out. It is the market that decides the exchange rates of currency pairs being traded all over the world. The forex market is the oldest financial market that is still operating.
The market is working over-the-counter 24 hours, and a transaction between two parties is completed electronically. Several factors are responsible for the exchange rate of all the currency pairs.
How Forex Trading Works?
The foreign exchange market is globally accessible for trading, commerce, and tourism purposes. Currencies are exchanged to earn a living by a large number of the world’s population. If an individual is buying something from the international market, then also currency exchange is conducted.
There are many direct and indirect ways of exchanging currencies. If you are visiting abroad for a vacation, then also you will need to exchange the domestic currency with a foreign one. An individual cannot directly exchange a currency from the foreign exchange market. A broker is required to complete the transaction successfully.
The nature of forex trading is highly liquid due to a large number of participants that are actively trading in the market. It is having the largest average daily turnover among all other financial markets that is approximately $6.6 trillion.
Understanding Currency Pairs
The exchange rates are determined by the forex market for currency pairs. There is a specific term for both the currencies that are listed in a pair. For example, there is a currency pair GBP/USD. In this pair, GBP is termed as the base currency, and USD is the quote currency.
Different types of currency pairs are traded in the market. These are classified on the basis of liquidity, trading frequency, demand, and several other factors. The currency pairs are termed as:
Major Currency Pairs
These are the pairs that are most traded in the forex market. One thing that is common in these pairs is that they have USD in them, whether as the base currency or quote currency. Another currency listed with USD is also a currency of a strong economy. Some examples are:
- EUR/USD (Euro and US Dollar)
- USD/CHF (US Dollar and Swiss Franc)
- GBP/USD (British Pound and US Dollar)
- USD/JPY (US Dollar and Japanese Yen)
Minor Currency Pairs
Minor currency pairs do not include USD in them and they are made by exchanging currencies of top economies of the world. The second term used for these pairs is cross-currency pairs. They are liquid pairs but the volatility is lesser as compared to other currency pairs. A few examples of minor pairs are:
- GBP/JPY (British Pound and Japanese Yen)
- EUR/GBP (Euro and British Pound)
- EUR/AUD (Euro and Australian Dollar)
- GBP/CAD (British Pound and Canadian Dollar)
Exotic Currency Pairs
These pairs consist of currencies of emerging economies and they are usually less traded. The amount of profits traders can fetch is also lower with these currency pairs and the situation arises a few times only. Examples of exotic pairs are:
- EUR/TRY (Euro and Turkish Lira)
- USD/THB (US Dollar and Thailand Baht)
- GBP/ZAR (British Pound and South African Rand)
- AUD/MXN (Australian Dollar and Mexican Peso)
What Are the Different Types of Foreign Exchange Market?
The foreign exchange market has no physical location and all the transactions are carried out electronically. Various types of transactions are executed based on the duration and way of completing transactions. The various types of foreign exchange markets are:
It is the quickest market of the foreign exchange market. Currencies are immediately exchanged in this type of transaction. The present exchange rate is used to complete the orders. Approximately, one-third of the total forex market transactions are carried out from the spot markets.
A transaction generally takes one or two days for settlement. Due to this, the market becomes volatile and prices rise or fall. The major participants of these transactions are commercial banks, brokers, and central banks. Traders use to diversify their portfolio using forex trading.
If any individual trader wants to participate in this transaction, a bank or broker will act as an intermediary for the respective transaction. Spot transactions are heavily traded globally.
It is a transaction in which two individuals, companies, or agencies agree to execute the transaction at a future date on a predetermined price and quantity. There is no requirement for a security deposit or signing of documents. It is mostly used for hedging, and this is purely speculative.
Speculators predict prices based on their predictions; they wait for prices to rise or fall to make profits. The wider the time, the larger the probability of price movement. They are illiquid also because of the involvement of only two parties. Forwards markets are a decentralised form of the forex market, which make trading difficult.
An example of a forward transaction is when a farmer enters into a contract to sell his crop at a predetermined price to avoid a price fall. In this way, the farmer can save his upcoming loss.
Future markets are similar to forward markets but the main difference is that it is a centralised form of trading. They are carried out through recognised exchanges globally. The best part is that these types of transactions are liquid. The counterparty risks are not involved in these transactions.
Both the parties in the transaction are obligated to complete the transaction. These types of transactions are generally settled between the duration of one month to six months. It is also one of the forex derivatives.
Option markets give the right to buy or sell to the buyer. The buying and selling are completed at a future fixed date and price. It is also a type of derivative in the forex market. There are two types of options:
Call Options – A call option gives the right to buy to the holder. Lesser prices will drive higher profits in these types of transactions. In short, when the market price is higher you are having the right to buy at a predetermined price lower price.
Put Options – A put option gives the right to sell. In this transaction, profit is derived when the prices are lower and you are having the right to sell at a higher price. The price is predetermined at the time of agreement.
Swaps are the markets where two parties borrow funds and agree to swap the interest rate. One party pays the interest of another party to save some money. These transactions are carried out on huge borrowings. Trades usually divide the amount of money saved with swaps.
When swaps are done with large amounts, the profit earned is also large.
What Are the Benefits of Forex Trading?
Forex trading has multiple benefits as the market is very large and has endless trading opportunities. Top forex trading benefits are:
- Traders can start trading with low capital investment as it is not like other financial markets which require minimum capital.
- No trading volume, as when you trade stocks you have to buy or sell a complete lot to execute the transaction.
- The foreign exchange market is open 24 hours and five and a half days a week, so there is no time limitation for trading.
- The market is highly liquid due to a high number of active buyers and sellers trading in the forex market.
- Beginners can even start trading with a demo account offered by most of the brokers to practise the market.
- Traders can trade through leverage amounts, which means you can trade with more funds than what is invested.
- The forex market is highly volatile and traders just need to find a trading opportunity to earn potential profits.
- The foreign exchange market is highly regulated with the leading regulatory bodies across the world.
Top Forex Trading Platforms UK
Forex trading is a typical thing and traders require patience and experience to earn profits. Another important thing traders need is a trustable broker that fits their requirements. Here are the best forex trading platforms for beginners in the UK and experienced traders can also try them for trading. Many trading features are offered by the top forex trading platforms UK. The brokers are:
Brokereo offers a 1:500 trading leverage and a demo account for trading. Apart from the demo account, silver, gold, platinum, and professional accounts are also provided by the broker. Traders get an option of more than 300 trading instruments for trading.
Traders can resolve their issues with the help of customer support that is available five days a week. The broker provides an MT4 trading platform that is user friendly and can be accessed from multiple devices. Use several educational materials and analytical tools available on the platform.
It is an award-winning broker, and traders can start trading with only $250. Multiple options are available for depositing and withdrawing funds.
With T1Markets, traders get leverage up to 1:500. Traders can choose between silver, gold, platinum, and a demo account. 300+ trading instruments are offered by the broker with 24/5 dedicated customer support.
MetaTrader 4, WebTrader, and Mobile app are the trading platforms of the broker. A wide variety of analytical tools and educational materials are provided by the broker. Traders can start trading with a minimum deposit of $250 dollars.
Enjoy commission-free trading with multiple withdraw and deposit options available with the broker.
At TradedWell, traders get three different trading accounts that are silver, gold and platinum. The maximum leverage provided by the broker is 1:400. Various types of trading assets are available for trading with this broker.
A demo account is also accessible by traders to explore the platform and the market. 24/5 customer support is offered by the broker. A trader can start trading with a minimum deposit of $250. The broker runs on the MetaTrader 4 trading platform that is convenient for traders.
Analytical tools and educational materials are offered by the broker so that traders can predict the market and improve their skills. A huge number of deposit and withdrawal options are available to manage your funds.
Zero commission trading with ROinvesting in more than 350 trading instruments. The broker is offering high leverage of 1:400. Silver, gold, platinum and professional accounts are the options available for traders. Get customer support 24/5 for your queries.
Traders have WebTrader and Mobile apps options for convenient trading. Start trading with a minimum of $100 that you can deposit with any option present on the platform. Implement analytical tools and educational resources to get better trading results.
Traders’ data and transactions are encrypted to protect the interest of traders. Get access to global financial markets with a single click.
At PrimeFin, traders can trade with leverage of 1:500 and 350+ trading assets. Traders can choose among silver, gold and platinum trading accounts for trading. Apart from these, traders also get an option of a demo account.
Get 24/5 customer support via live chat, email and telephone. Open your trading account and start trading on the MT 4 trading platform with a minimum deposit of $250. Your data and transactions are protected with the best security measures.
The broker is offering a wide range of research tools and educational materials so that a trader can improve his knowledge and trading skills. Enjoy quick trading features with PrimeFin.
Start trading with a minimum deposit of 250 US dollars and choose a trading account among silver, gold and platinum trading accounts.TradeATF is offering the maximum leverage of 1:500. Traders can also start with a demo account.
Trade on the most simple and easily accessible trading platform that is MetaTrader 4. Get dedicated customer support 24/5. Pay zero commissions on trading transactions. However, spreads and swap charges may apply.
A wide range of traders’ educational material and analytical tools are provided by the broker. It will assist you in better decision making.
ETFinance is offering trading leverage of 1:500. Traders can select among silver, gold and platinum trading accounts. If you are a professional go with a customisable professional account. 300+ trading instruments are easily accessible by traders.
Traders can get 24/5 customer support to solve broker related issues. You don’t need to pay any commission charges on trading. Trader on MT 4, WebTrader and Mobile app according to your convenience.
The broker is offering educational material and multiple analytical tools. Traders can start trading with a minimum 250 US dollar deposit. There are various options for funds depositing and withdrawing.
1:500 is the highest trading leverage offered by Capixal. Traders have the option of silver, gold, platinum, professional and a demo trading account. The best part is that traders can start with even $20 of deposit.
More than 350 trading assets, 60 analytical tools, 100 educational resources are provided by the broker. Customer support is also available 24/7, which is another best part with the broker.
MetaTrader 4, WebTrader and Mobile app are the trading platforms offered by the broker. Traders can choose among different deposit and withdrawal options for managing their funds. All the transactions are protected with SSL and firewalls.
101Investing is offering silver, gold, platinum, professional and demo trading accounts. Traders get the maximum leverage of 1:500. Professional accounts can be customised by the traders according to their preferences.
$100 is the minimum requirement to start trading on a reliable MetaTrader 4 trading platform. Traders can trade more than 250 trading instruments along with zero commission. Get customer support 24/5. The trading platform is encrypted to ensure traders’ protection.
There are various deposit and withdrawal options available to add and withdrawal funds. Use educational material offered by the broker to improve your trading knowledge. The broker also offers trading tools to make better decisions.
These all are regulated brokers that are offering the best services to their traders. Some of the leading and best forex trading platforms UK. Traders should try them, as all of them are offering a demo account. They are focused to improve your trading experience with quality educational materials and trading research tools offered by the brokers.
The Bottom Line
Forex trading has many opportunities to earn potential profits, and traders should try forex trading. Start your trading career with a trustable broker. Choose among the above listed top forex trading platforms UK. Traders can even start with a demo account so that you do not need to risk your funds. Learn market fundamentals and trade with the best online forex brokers.