UK Forex Brokers

Top UK Forex Accounts

In order to operate a UK forex account, the trader must open such an account with a licensed UK forex broker. In the United Kingdom, the business of regulation of the forex industry is the job of the Financial Services Authority (FSA).

Opening a UK forex account will necessitate filling an online application, after which the trader is required to submit his account verification documents in order to activate the account.

The process of verification is more stringent than obtains in most other territories. Traders who are not EU citizens can only present certified true copies of their international passports as a means of identification. EU citizens can present drivers’ licenses.  In addition, all intending traders must present utility bills not less than three months old, and all copies of documents to be presented must be certified as true copies by a public notary. The public notary is expected to indicate his name, designation and position on all documents, and append his signature with an official stamp or seal in order to authenticate these documents. Such authentication can also be provided by senior clergymen or senior banking officials.

Once these documents have been submitted, the review process is carried out prior to activation of the UK forex account.

Most forex brokers offering UK forex accounts have upgraded their asset bases to include spot metals and energy derivatives such as crude oil, providing their clients with UK forex accounts that serve as a one-stop trading facility.

It is very important to ensure that the broker you want to do business with is actually a UK licensed forex broker. There are some brokers who confuse traders by saying that they are registered in the British Virgin Islands, making it look like they have FSA authentication. The only way to truly authenticate the FSA licensing status of a UK forex broker is to visit the FSA website to check this yourself. The FSA has very strict regulations on how forex brokerage business is run in the UK, and has declared a sequestration account policy for brokers to follow. Sequestration means that all money sent by traders for the purpose of trading are to be lodged in an account that is different from the regular bank accounts belonging to the forex broker. This is to ensure prompt settlement of all withdrawal requests from forex traders. This was a measure adopted to boost trader confidence and ensure that some of the problems with settlement of trader’s withdrawal requests being experienced in other jurisdictions do not rear their ugly heads in the UK financial trading system.

All these measures have served to make owning a UK forex account an extremely safe venture. Traders who open a UK forex account can go to sleep with both eyes closed because of the measures taken by the FSA to guarantee the safety of their trading capital.

UK forex accounts are not subject to some of the stringent trading conditions on margin and leverage that the Commodities and Futures Trading Commission (CFTC) has imposed on traders. As such, all categories of traders, no matter their financial capacity, are welcome to open UK forex accounts. Many UK forex brokers have adopted deposit and withdrawal procedures and methods that have made it easier to fund and withdraw from accounts over the years. Many brokers have also created different classes of forex accounts to enable traders open just the forex account that is suited for them.

Many international brokers such as Interactive Brokers and Alpari have branches in the UK that serve to provide UK forex accounts. Intending traders are enjoined to open a UK forex account today for maximum account security and safety of trading funds.