The best online forex trading (FX) account is the one that offers the smallest spread for the currency pair you want to trade on.
How to trade in forex
Forex trading uses currency pairs; the first in a pair is the base currency, the second is the counter currency. You have two options to try and make a profit:
Buy: If you think the base currency will increase by more than the counter currency
Sell: If you think the counter currency will increase by more than the base currency
What is the spread?
It is the difference between the buy and sell price of a forex pair.
This comparison shows the spread offered on each company's forex trading platforms for the following currency pairs:
Euros and pounds (EUR/GBP)
US dollars and Japanese yen (USD/JPY)
Pounds and US dollars (GBP/USD)
Euros and US dollar (EUR/USD)
How is the spread measured?
Forex trading uses pips to measure a spread. A pip usually represents the fourth decimal point in a foreign exchange rate:
For example, if the buy price for the currency pair EUR/GBP is 0.8319, and the sell price is 0.8318, the pip is 1 (0.8318 - 0.8319).
The exception is currency pairs that include the Japanese yen, then the pip is the second decimal point:
For example, if the buy price for the currency pair USD/JPY is 114.48, and the sell price is 114.46, the pip is 2 (114.46 - 114.48).
The smaller the spread the less a currency needs to grow or fall in your favour before you break even.
Forex trading account FAQs
Do forex trading companies charge fees?
Some charge for cash withdrawals or for leaving your account inactive for over a year. Check each company's terms before opening an account.
Do I pay tax when forex trading?
No, any profits you make are not subject to Income Tax, Capital Gains Tax or Stamp Duty.
How much do I need to open a forex trading account?
Most accounts are free to open, but you need to deposit a minimum amount to begin forex trading, such as £100. Check the terms before you apply.
Is forex trading regulated?
Yes, all UK based forex trading companies are regulated by the Financial Conduct Authority, which means they cannot mislead or scam you.
Can I forex trade through a mobile app?
Yes, but only if the company offers a mobile app. You still need to open an account online and add money before you can forex trade on an app.
About our forex trading accounts comparison
Who do we include in this comparison?
How do we make money from our comparison?
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.