Many investors enjoy forex trading since it is an exciting type of investment. Forex trading may be ideal for you if you are skilled at data analysis and strategy implementation.
If you’re successful in speculating on changes in currency values worldwide, you could be in line for some juicy profits. Forex trading is a clear preference among investors and is one of the world’s largest trading markets.
When you speak to any professional Forex trader, you’ll discover Forex trading isn’t an easy or quick way of making money. It requires a lot of hard work and research. So if you’re looking to take forex seriously, you’re going to need all the help you can get! You’ll also need some serious practice to make sure you’re trading skills are up to scratch.
The first thing you’ll need before you start trading is a forex trading platform or broker. There are many different trading platforms out on the market. These platforms may specialize in different types of trading and are best suited for different functions.
So before you jump into the world of forex, you’ll need to know which trading platforms are the best. Even if you’re an experienced trader, knowing which platforms may be a better fit for professionals is helpful.
To help you out on your Forex journey, here is an explanation of what a trading platform is and a list of the best trading platforms to use in 2021.
What is a trading platform?
For those who have only just been introduced to forex trading, you may be wondering what a trading platform is.
A trading platform is a software that allows investors to open, close, and manage forex positions. So if you want to exercise forex trading, you will need to do so on a trading platform.
There are two main types of trading platforms- commercial platforms and prop platforms. Commercial platforms are aimed at retail traders, basically, people trading on their laptops at home. As a beginner to forex trading, you will be using a commercial platform to trade.
Commercial platforms are usually equipped with tools that will help you trade. For example, you will find charts, real-time prices, news feeds, and sometimes even analyses from other professionals.
Prop platforms are saved for the large firms and brokerages that are opening positions. These will usually be developed bespoke to the firm and their requirements, so you won’t have to worry about prop platforms!
Different platforms will also have different fees for their services. But unless you’re trading millions of pounds in one position, these fees will be minimal. Most modern platforms will offer 0% commission, so you shouldn’t have to worry about hefty fees as a beginner.
In your early stages of trading, you may not be able to use all the platforms available. Different platforms will have different requirements if you want to trade with them. For example, some platforms will require you to have at least £10,000 of equity in your account to start trading. It’s unlikely that you will start trading with this much equity, so these platforms are for more advanced traders.
Things to think about when picking a platform?
When picking a trading platform, you’ll want one that will help you out in any way possible. This means you will need to have a think about what you need and what will help you in your forex journey. This will differ depending on what type of trader and how experienced you are.
For example, if you’re a beginner, it’s best to pick a platform that has great customer service. Since you aren’t familiar with the processes, you’ll likely have a lot of questions. No one likes phoning customer service and being left on hold for hours!
You’ll also want to pick a platform that focuses on educating clients. Therefore, you can learn more about the world of forex while practicing trades.
Picking a simple platform will mean that you won’t get confused by extra features that you’ll likely be unable to use. If you’re a beginner sticking to the basics is advisable.
If you’re more experienced when it comes to forex, you’ll need a more advanced platform. Platforms with low costs and more analysis and research features will be more suited to you.
You’ll also need to think about where you’re physically going to trade. If you have enough spare time to dedicate to trading at a laptop or computer, pick a sophisticated platform with a range of features you can utilize on a desktop.
But you may have less time and will need to trade on the go. If this is the case then picking a platform that allows you to trade on a mobile app will be very useful.
Now that you know what you should look for in a trading platform, let’s get into the list of top trading platforms for UK investors.
Top forex trading platforms
These are the best forex trading platforms for UK customers in 2021.
1. CMC Markets
CMC markets is an experienced trading platform and was opened in 1989. Firstly, CMC is a trustworthy broker as the FCA regulates it, so your money is sure to be safe when you have no positions open.
CMC is a great all-rounder and is a good platform for a wide range of traders. Whether you’re just starting your trading journey or a seasoned professional, CMC Markets is a suitable trading platform for you.
It has an extensive range of features that will make market research and analysis a lot easier. Customer service is also top tier, and if you have any issues, their team is on hand to offer you help quickly.
CMC markets do not accept US investors. Another downside is that some spreads (a type of fee) can be pretty high when trading specific instruments.
2. London Capital Group
This is another London-based trading platform and was founded in 1996. Again this is a trustworthy and regulated broker that ensures your money is safe.
LCG offers a very accessible and easy-to-use platform that makes trading and market analysis much more straightforward. LCG is also equipped with a mobile app meaning that you can monitor and even open or close positions on the go.
Customer service is outstanding, and you can get lots of help and general information about trading from the LCG team. With a simple platform and focus on customer service, this trading platform is best suited for people who have just started forex trading.
This platform is an excellent introduction to trading, and you won’t be overloaded by complicated features that beginners may not be able to use efficiently.
XTB is a Polish company and was founded in 2002. XTb is a safe platform that the FCA regulates.
This company also emphasizes customer service and educating its clients. This means if you’re using XTB, there will be many tools that will help you learn about forex trading and strategies. This means it could also be suited to beginner traders.
XTB is on this list because of the meager costs. This means you can open large positions without having to worry about hefty fees.
This may be more suitable for professional traders who are focusing on cutting costs to increase their returns. The platform is also helpful for scalping traders who need to use a platform with low costs.
You should note that these low costs are only found when you trade forex on the platform. Non-forex spreads on XTB can be pretty high.
Pepperstone is a pretty new company and only started in 2010. But in this short time, the Australian-based company has made huge strides to be recognized as a trustworthy and well-established platform.
Pepperstone has all the features on a trading platform that you would need. The platform is equipped with a range of chart analysis features that will make your market research very straightforward.
Trading on this platform is very efficient, with different types of accounts and user interfaces available to customers.
Pepperstone has a speedy and straightforward customer service system, so getting help is very easy.
Forex spreads are very low, so this is another platform suitable for professionals looking to cut costs. The different account types are also suitable for professionals who can use these features efficiently.
IG is a world-renowned platform in all areas of trading, including forex trading. IG is a well-experienced platform that was founded in 1974. As usual, it’s a trustworthy platform that the FCA regulates.
IG is suitable for anyone who wants to trade in all markets globally. It’s more suited to US forex customers, but that doesn’t mean that UK forex traders can’t benefit from IG as well.
IG has a full range of low costs, good customer service, and a focus on educated clients. This means it’s a good all-rounder that is fit for both beginners and professionals.
Market research is easy to do on this platform because of the range of features that it offers.