Forex trading is the buying and selling of currencies to profit from the rise and fall in the prices of different currencies. This is accomplished by buying one currency and selling another at the same time.

Trading usually takes place in currency pairs, where the first currency is known as the base currency, and the second currency is known as the quote, or counter, currency.

Forex trading is unique in that there is no central exchange where currency trading occurs. Instead, trading takes place electronically over-the-counter (OTC), via computer networks between individual traders and financial institutions around the world.

Forex, or foreign exchange, is the process of converting one currency into another whether it's for trade, tourism or commerce.

Find the best forex trading platform for you

The most important part of forex trading is the platform you use. A forex trading platform is software that gives you access to the trading market and on which you conduct your trading.

While there is no best trading platform, some things to consider when choosing a trading platform are:

  • Reliability: The forex platform must be reliable in being able to execute your trades and be efficient in depositing and withdrawing your funds.

  • Fees: It's important to be aware of the fees a platform charges, as they can eat away at any profits you make.

  • Ease of use: The platform you use must be easy for you to navigate and execute your trades.

What types of forex trading platforms are there?

There are two different types of forex trading platforms:

  • Downloadable platforms: These are software-based platforms that need to be downloaded and installed onto a device such as a computer or smartphone.

  • Web-based platforms: These are forex platforms that reside online. You can access them by typing the URL into a web browser and log in to your forex trading account using your username and password, as you would with any other online banking account. These platforms are accessible from anywhere, without the need to carry around a computer or mobile device on which the trading platform is installed.

CFDs (Contract for Difference) are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs.

However, different trading platforms can have a number of varying features. These can range from market analysis tools, how they execute trades, and other data analysis features. The best forex trading platform for you will depend on your specific needs.

Forex trading platforms FAQs

Q

Do forex trading companies charge fees?

A

Some charge for cash withdrawals or for leaving your account inactive for over a year. Check each company's terms before opening an account.

Q

Do I pay tax when forex trading?

A

No, any profits you make are not subject to Income Tax, Capital Gains Tax or Stamp Duty.

Q

How much do I need to open a forex trading account?

A

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.

Q

Is forex trading regulated?

A

Yes, all UK based forex trading companies are regulated by the Financial Conduct Authority.

Q

Can I forex trade through a mobile app?

A

Yes, but only if the company offers a forex trading app. You still need to open a trading account online and add money before you can trade on an app.

About our forex trading platforms comparison

Q

Who do we include in this comparison?

A

We include forex trading platforms from our panel. They are either authorised and regulated by the Financial Conduct Authority (FCA), or a European regulator and listed on the FCA register as EEA authorised.

Here is more information about how our website works.

Q

How do we make money from our comparison?

A

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.

Q

How do we select our top forex providers?

A

We display a range of providers that have completed due diligence and passed our compliance checks.