Who Are The Best UK Forex Brokers
What is a forex broker and how do you find the best one?
Are you wondering which forex broker will deserve the title of '' Best Forex Broker '' in 2021? In this article we answer the question of how you can identify the best broker for yourself and consider all the important criteria that you should consider when comparing forex brokers.
You should consider this when choosing a forex broker
These points, which are explained in more detail below, should be taken into account when deciding for or against a specific forex broker:
- Security & Regulation
- Trading platform
- ECN or STP?
- Quality of order execution & slippage
- Scalping allowed?
- Dealing Desk or No Dealing Desk?
- Educational offer
- Deposit insurance
- Account types
- Diversification of trading instruments
- Customer service
- Additional tools & extensions with the MetaTrader Supreme Edition
- Customer opinions
Security and Regulation
Before opening an account, you should always first make sure that the forex broker in question is regulated - and not anywhere, but at best in the European Union. Regulatory authorities such as the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA) from Great Britain, the Estonian Financial Supervision Authority (EFSA) and the German Federal Financial Supervisory Authority (BaFin) guarantee You the highest possible level of regulatory protection. As long as your broker is regulated EU-wide, you don't necessarily have to trade through German forex brokers.
In addition, some forex brokers offer their customers additional protection measures. For example, Admiral Markets offers its traders a volatility protection service that helps to limit the trading risks caused by volatility. There is also additional protection when it comes to the obligation to make additional payments: The so-called professional clients who would not be protected from the obligation to make additional payments without additional measures - and thus could lose more money through trading than they have deposited into your trading account - receive protection on a voluntary basis. Negative account balances of up to 50,000 British pounds are offset by Admiral Markets. Unlimited protection applies to retail clients (small investors).
Choose a broker that supports the trading platform you prefer. Admiral Markets offers MetaTrader 4 or 5 as the world's most popular solution for trading Forex and other instruments, supported by the in-house MetaTrader Supreme Edition.
The offered spread is an important evaluation criterion for a forex broker comparison and many traders attach great importance to low spreads. However, you should always keep in mind that there are also certain marketing tricks with the spread. A top spread advertised on the website does not automatically mean that you can use it at all times. Formulations such as "typical spread" or "fixed spread" say more here.
In addition, there are ECN and STP accounts that are tied to different commissions, depending on the broker. In order to determine the cheapest forex online broker, a combination of spread, execution quality, commissions and swap costs must be used. If you only pay attention to individual criteria in your forex broker comparison, such as the cheapest spread, you may not get the actually cheapest broker.
Quality of order execution and slippage
Low spreads alone are not enough - the best forex broker should also execute your orders approximately at the price you had in mind, as poor execution quality can mean that you have to accept unpredictable losses. So convince yourself that the quality of the order execution is convincing and that the (negative) slippage is within a reasonable range.
Many forex online brokers limit or prohibit certain trading styles. Scalping, in particular, is a way of trading that is frowned upon by many brokers - avoid such brokers as the ideal broker will not prevent you from trading the way it does you want to trade. Minimum distances between Stop Loss and Take Profit are also to be seen as warning flags, so to speak.
Broker with or without a dealing desk
Depending on your trading strategy, it makes more sense to prioritize an ECN, STP or No Dealing Desk broker. You will learn more about these distinctions later in this article.
A forex broker is not allowed to give investment advice, but is entitled to provide training and educational materials. For newcomers to trading, the diverse terminology of the markets is usually confusing and support in getting started with the various possible strategies is important. Admiral Markets offers an extensive range of materials in this area: choose between live webinars, training series, articles, analyzes and much more!
Register for the webinar
Choose a forex broker with bank accounts in Europe - segregated accounts in particular are desirable, because this way your deposits are protected even in the event of a possible bankruptcy.
Different account models
A good forex broker offers its traders different account models for different trading strategies: ECN, STP and accounts with reduced spreads for larger deposits.
Forex and other instruments are usually traded with leverage. In order to adequately manage your positions and your risk, it is important that you can choose the leverage yourself.
Diversification of trading instruments
It's always exciting to be able to invest in different markets at the same time. A good forex broker also offers a variety of other instruments for your trading - from currency pairs and stocks to CFDs (Contracts for Difference) on indices, commodities, stocks and ETFs to cryptocurrencies.
Relying on the forex broker to properly take care of their customers' concerns has practical and nerve-saving benefits for the trader. Especially if the customer support is in your own language (in your case presumably German) and thus misunderstandings due to language barriers can be avoided.
Custom tools and add-ons
Good forex brokers offer various types of support and additional resources - including exclusive tools for the trading software. In this context, Admiral Markets provides the MetaTrader Supreme Edition for MT4 and MT5 - free of charge in demo and live accounts. The expansion package supplements the tools in MetaTrader with over 60 useful additional functions.
Survey results are a good indication of whether a broker is meeting the demands of its customers. Various institutions and institutes usually conduct independent satisfaction surveys every year. If a forex broker performed well or even very well in these surveys, you can assume that existing customers are satisfied with their services.
Free demo account
The forex broker of your choice should in any case offer a free demo account in which you can first look at how financial instruments, underlying assets and markets are handled before you use real money. In a demo account, you can gain initial trading experience with virtual credit, but under realistic market conditions. You can test your trading strategies until you feel ready to apply them to the real markets.
The MetaTrader Supreme Edition at your Forex broker
The MetaTrader Supreme Edition from Admiral Markets is a comprehensive expansion package that adds over 60 different, exclusive additional tools to your trading software free of charge. This allows you to optimize your trading - regardless of whether you are a beginner or have many years of trading experience.
The following is an overview of the various functions, tools and instruments of the Supreme Edition:
Source: MetaTrader 5 Supreme Edition, navigator window
The MetaTrader Supreme Edition is driven by feedback from our traders. Some of the indicators it contains have been developed with the help of our in-house professional traders.
In addition, the Supreme Edition offers various complex features, such as the unique Admiral Renko indicator, which can be adapted even better to your requirements than the normal Renko indicator. With the Admiral Markets Renko indicator you can customize the following parameters:
- Renko block size in pips - Sets the size of the Renko blocks
- Pip Size Icon - Sets the pip size of the instrument
- Color settings for upward and downward facing blocks - adjusts the colors of the different blocks to suit your needs
- Draw blocks continuously - Defines whether the blocks should be drawn continuously in the chart or not
- Target Lines for the following blocks - Changes the style of the indicator lines
- Draw in the foreground - decides whether or not Renko blocks appear in the foreground in front of the chart
- New Block Alarms - sets alarms to be triggered when a new block is drawn
- Round starting price - Decides whether the starting price should be rounded
- Maximum of historical blocks - sets the number of blocks displayed at the same time
- Build Renko data on historical periods - decides the time frame in which the Renko indicator is calculated
- CSV / TSV Log - Decides whether a log file should be kept for logging and its possible format.
Regulation: Why You Should Choose a Regulated Forex Broker
There are a multitude of fraudulent brokers on the internet and quite often they are barely or not at all regulated. In order to protect yourself and your capital in the best possible way, you should always make sure that your forex broker is regulated by certain regulatory authorities. One of these authorities is the Cyprus Securities and Exchange Commission (CySEC), whose regulations are among the strictest in the industry and are therefore considered to be one of the strongest and best regulations a broker can be subject to. In addition, is your broker through local authorities such as the German one Federal Financial Supervisory Authority (BaFin), this should be another pro item on your list.
Don't be fooled when searching for the best forex broker online - just because a website looks professional doesn't mean the broker is automatically trustworthy.
These forex broker types exist
In this section we differentiate between different types of forex brokers.
Depending on the target group, a distinction can be made between the following types:
- Professional and qualified counterparties
- Non-professional counterparties
Depending on the order execution, a distinction is made between:
- Dealing Desk (DD) forex brokers
- No Dealing Desk (NDD) Forex Brokers (STP or ECN)
- Hybrids (STP + ECN)
Depending on the trading platform, there are:
- MT Forex Broker
- MT5 Forex Broker
- Forex broker with its own trading platform
- MT4 and MT5 brokers
We usually refer to forex brokers with a dealing desk as market makers. This applies when the broker takes the opposite position in the trades of his customers. You make money with spreads and by providing liquidity. They are also always looking for a suitable counter-position for their clients' trades before they take the position themselves or pass it on to their liquidity provider. They are also known for providing their own, self-generated price data and for fulfilling orders at their own discretion.
No dealing desk
On the other hand, there are no dealing desk forex brokers who do not bind orders to market maker counterpositions. You use the STP and ECN technologies without a dealing desk and always forward them directly to the liquidity provider. This allows traders to access the actual, authentic market prices faster and to execute their orders closer to the desired prices. We differentiate between the NDD brokers in STP and ECN brokers.
STP, short for Straight through processing, is a technology that does not require a dealing desk. All orders are forwarded directly to the respective liquidity provider, and bid / ask prices are also obtained directly from them. Liquidity providers in this context are hedge funds, large banks, investors and other qualified counterparties. The STP broker usually has a liquidity pool in which the liquidity providers compete to be able to offer the best bid / ask prices for the broker.
In a broader sense, STP means that the broker stands as a silent middleman between the trader and the market, where a dealing desk broker would have influence on the order and the price data. Please note that Admiral Markets is currently working on the STP model.
Another advantage of an STP broker is the so-called DMA. DMA stands for Direct Market Access (direct access to the market). This means that orders are passed directly into the liquidity pool, so that the trader receives the best possible price directly and the broker only earns its share through the spread.
You should always target brokers with variable spreads. A broker with variable spreads is able to take the best available bid and ask price from the liquidity pool, even if these come from different providers, in order to be able to offer you the best possible spread. The STP execution takes place without requotes and is particularly attractive for scalpers and new traders due to its high execution speed.
ECN has some similarities to STP and DMA, but the main difference is how orders are routed. As explained in the previous section, the STP broker can act based on a pool of LPs. While ECN brokers work more like a kind of hub. This node is the primary source of liquidity, represented by banks, hedge funds and big players in the market. All participants are connected by the node in order to find counter positions for orders that cannot be processed internally. Another difference between STP and ECN concerns the minimum lot size, which with ECN mostly has its minimum size at 0.1 lot. This is because liquidity providers often allow no less than 0.1 lot, which is particularly problematic for less experienced traders who prefer to work with smaller trading volumes.
This is a combination of ECN and STP. This allows forex brokers to focus on high quality customer service, knowledge and market analysis. By mixing ECN and STP models, a fully electronic Forex trading service is offered. This enables the broker to fully automate order execution, which means that the Forex broker's staff can focus on complementary services.
Both ECN and STP models have relevant advantages. We think STP is the best model, but we don't deny that hybrid solutions can also be a good choice. The various advantages are also reflected in our account models.
The use of STP and ECN models avoids brokers acting as market makers. This creates a win-win situation for brokers and traders, because: Forex brokers have no increased interest in traders making losses. On the contrary, the broker generates more profit, the more trades each individual trader carries out with him.
Make the Forex Broker Comparison
As can already be seen from this article, brokers can be rated according to different criteria, which in turn leads to many different rankings among forex brokers. When it comes to online trading, you should primarily rely on your own experience as it is often more reliable than online reviews. Especially for newcomers to the world of trading, such reviews are very helpful to get an overview of the various options, which are obviously very popular with many traders, and to form a first opinion.
Over the past few years, Admiral Markets has repeatedly been able to show awards in various categories:
Admiral Markets is a regulated broker that has been recognized by renowned sources such as Focus Money or the German Customer Institute (DKI). These awards are of course based on subjective assessments - either by customers or the respective initiators. We therefore cordially invite you to personally get an idea of what we have to offer. Open a free demo account and find out under realistic market conditions in a risk-free environment whether Admiral Markets is the best forex broker for you.
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This material does not constitute and should not be construed as investment advice, recommendation, or solicitation of any kind of transaction in any financial instrument. Please be aware that articles like this are not reliable predictions of current or future developments, as circumstances can change at any time. Before making any type of investment, you should seek the advice of an independent financial advisor to ensure that you have a proper understanding and assessment of the risks involved.
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