Best broker for a UK Newby

Hi All,
I’m a UK based newby and am looking for recommendations for a forex broker. Which Brokers do you UK traders use and what is your experience of them. Thanks, Richie.

Hi, did you finish BP education section? Regards Greg

Hi Greg,
I’ve not finished the education yet but am working my way through it. I’m not ready yet for live trading, but want to set up an account ready for when I am. I’ve been using an eToro demo account and have been able to keep this at a small profit, but I don’t think this would be the best platform to live trade forex.

You still have a lot of time to open a real account. The demo account will be used by you to get to know the platform, market etc first, so you can open a demo account with one of the major brokers like XM.

Based in the UK you also have the option of spreadbetting. This is basically a replica of CFD trading but has the advantage of being tax-exempt. SB firms are subject to exactly the same protective regulations as CFD etc. brokers by the FCA.

I use ig index. Fca regulated. Offices in london. Look into it, do your research.

OK I will try a couple of demo accounts first to see which ones I like.

The tax advantage of spread betting interests me, but can you actually earn a living from it which is were I want to be eventually?

Their site looks good I will try a demo and see how it goes.

Yes. Using SB is no different to accessing the markets via CFD’s. Which is not much different to (but simpler than) forex trading using lots and stuff. CFD’s are not tax-exempt, CFD trading profits are subject to Capital Gains Tax.

SB is not good for scalping as the spreads are not the narrowest (but no new trader ever made money from scalping anyway).

OK so I may try spread betting, the tax benefits do sound good. I’m not interested in scalping at the moment as I don’t have the time to spend all day watching multiple trades. Any tips for getting started, and what broker do you use?

Use any large well established UK-based and FCA-regulated SB firm.

Check they really are registered with the FCA in the FCA Register. All eglit SB firms will offer -

  • negative balance protection
  • segregated clients’ funds accounts
  • ESMA leverage rates
  • clients’ deposits protection.