Best futures brokers in the UK

Futures trading can be both complex and exciting. It allows individuals to predict the price movement of assets such as currencies, commodities, and indexes. Traders often rely upon futures brokers in the UK to navigate the complex landscape.

What makes a good futures broker in the UK trading

It’s crucial to consider several factors when choosing a futures broker in the UK. These can have a significant impact on a trader’s success. They include:

• Competitive trading fees: To increase your profits in the futures market, you should choose a broker who charges competitive trading fees. Look for brokers that offer low commissions and minimal spreads. If you want to begin with small amounts, choose a broker with low minimum account balances.
• The trading platform should be reliable. It must have the features you need to trade effectively. Media should be easy to use, reliable, and fast. The platform should also include market data and news, as this can provide you with valuable insight into the markets. Risk management tools like stop-loss orders and trailing stops will help protect and reduce risks.
• A futures broker must provide excellent customer service, especially for novice traders. Support staff available by phone, live chat, email, or other means should respond quickly and be helpful.
• Compliance with regulatory requirements: To ensure your money is safe, choose a broker regulated by the Financial Conduct Authority. It helps reduce the likelihood of scams and fraud in the futures industry. If you are considering an international brokerage, ensure a reputable regulatory body, such as the Commodity Futures Trading Commission and National Futures Association in the United States or the Australian Securities and Investments Commission in Australia, regulates them.

The Best futures brokers in the UK

• IG Markets- Best Futures Trading Broker For Professional Traders
• eToro- Best Futures Trading Broker for Beginners
• Plus500- Futures CFD* Trading Broker for Mobile Trading
• Interactive Brokers – Best UK Futures Broker Overall

IG Markets

IG Markets is the broker of choice for experienced traders searching for the UK’s best futures trading brokers. The broker’s fast execution speeds and use of the latest technologies ensure you can effectively manage your activity using desktop and mobile. IG Markets offers advanced trading platforms such as MT4 and ProRealTime to make your experience more enjoyable.

Its large selection of markets also distinguishes IG Markets. You can choose between a wide range of indices, commodities, and bond futures. Unfortunately, you can’t use IG Markets for a physical futures contract.

You can trade CFDs instead, which allows you to speculate on the market’s underlying price and profit from it. The broker also has high minimum deposits and high spreads on futures trading. You should make sure you can afford IG Markets prior to committing.

Pros

• Numerous futures markets to explore
• It has an MT4 platform that allows professional traders to invest in futures.
• Provides a wealth of educational and research material
• A pioneering futures broker who has an outstanding global reputation

Cons

• High spreads for futures trading
• Its PS300 minimum deposit requirement can shun away low-budget traders

eToro – Best Futures Trading Broker for Beginners

eToro is a futures broker you should consider if you are a beginner. The trading platform is easy to use and has a contemporary design. This broker offers futures trading with thousands of assets.

eToro engages traders with the best social trading platforms. It is unnecessary to feel alone and rely only on customer service. The futures broker lets you socialize with traders you follow. Copy the trades that you believe have higher profit potential.

The pros

• Wide range of futures trading assets.
• Automated CopyTrader platform.
• A popular investor program designed for advanced and expert traders.

Cons

• $200 minimum deposit requirement.

3.Plus500 is a mobile trading broker for Futures CFDs.

In today’s financial markets, mobile trading has become the norm. The traders want to be able to trade futures even if they don’t have access to their desktops. Plus500 has been proven reliable for mobile trading.

Brokers charge fees for inactivity, overnight currency conversion, and stop-order fees. The broker has a minimum deposit of PS100, amongst the lowest we have seen in the market.

Pros

• Competitive spreads
• PS100 minimum deposit
• Rapid trade execution

Cons

• A proprietary trading platform can be a nuisance to some experienced traders

4. The Best Futures Trading Broker Overall in the UK is Interactive Brokers

Interactive Brokers offers a robust futures trading platform to all traders. Futures platforms work seamlessly across desktops, mobiles, and the internet, allowing traders to keep track of their trades on the go.

Various futures asset classes are traded on this broker’s platform, including currencies, commodities, cryptocurrencies, and indices. All these assets can be accessed in over 30 futures market centers globally.

Pros

• Various futures trading research and learning materials.
• Low trading costs.
• Intuitive design trading platforms.

Cons

• Charged for inactivity on IBKR pro account.

3 Best Strategies for Futures

You can select from various strategies when investing in the futures markets. Most traders choose a strategy that suits their comfort, goals, and level of risk tolerance.

They are familiar with one or more contract types. Here are some strategies that you can employ to maximize your returns from each trade in futures:

Pullback strategy

The pullback is one of the more powerful and popular strategies used in trading futures. Traders use this strategy to buy a position (long) when the price rises above the resistance level and pulls back.

This strategy can be used for a sell (short) when the price moves below a level of support and pulls back. Many traders will take profit at certain points and then continue the trend.

Breakout trading

Breakout trading is another excellent futures strategy. Breakout trading, as the name suggests, aims to profit from the volatility when a contract’s price breaks through trendlines, resistance and support levels, or other technical levels.

Traders often use chart patterns to find a trading channel or range where volatility is decreasing. Head and shoulders, pennants, rectangles, and triangles are the most popular chart patterns for breakout trading.

Spread trading

Spread trading in futures is the strategy where a trader buys one contract of a similar or identical contract and then sells it. The strategy aims to minimize risk by offsetting different positions on futures contracts. It can protect you from external market events. Trading spreads instead of single contracts for futures can reduce your leverage, allowing you to trade futures with less capital.

Selecting a Futures Broker: Key Considerations

Regulation and Compliance

The futures market is built on regulation. Financial Conduct Authority regulates reputable futures brokers, ensuring fairness, transparency, and security.

Trading Platform

It is important to have a trading platform that’s both user-friendly and technically advanced. The platform should provide real-time charts, order execution, and data in real-time.

Range of Tradable Instruments

Diversification is the key. Futures brokers offering various products and instruments allow traders to experiment with different markets.

Customer Support

Responsive customer service enhances your trading experience. It doesn’t matter if you are a new trader or an expert; reliable customer support is essential.

The Evolving Landscape of Futures Trading

Technological advancements have transformed the trading landscape, with digital platforms providing faster execution and improved accessibility. Global events also have a significant impact on futures markets. Traders must stay up to date with these global happenings.

Technological Advancements

Automated and algorithmic trading has made futures trading accessible to traders from any location.

Impact of Global Events

Geopolitical and economic events can trigger market volatility. This creates both opportunities and challenges for traders.

Building a Successful Trading Strategy

Technical and fundamental analyses are both important in a well-rounded strategy. Position sizing, diversification, and risk management are important.

Technical and Fundamental Analysis

Technical analysis is the study of price charts, patterns, and trends. Fundamental analysis examines what factors are driving current market conditions.

Risk Management

The preservation of capital is essential. Traders use risk management to minimize potential losses.

How do Futures Traders Make Money?

Futures traders profit by purchasing or selling futures contracts and taking advantage of the price difference between entry and exit. Futures traders aim to profit by predicting the direction the market will take in the future and taking a position.

The trader will buy futures contracts if they believe the asset price will rise. If they believe the price of an asset will fall, they’ll take a long position and buy a contract.

There are many futures strategies that you can use to maximize your trading potential. Be sure to understand how the strategy functions and its risks before applying it to a contract. You should create an account with a reputable and reliable broker, such as the one mentioned in our mini-reviews.

Conclusion

Futures brokers play a vital role in the UK in facilitating trading in futures. They provide traders with the resources and tools they need to navigate the complicated world of the financial markets successfully.

The partnership between traders, futures brokers, and technology that continues to change the world and introduce new dynamics is essential.

FAQs

What is a futures broker?

A futures broker is an intermediary that connects traders to the futures market, facilitating trades and providing market analysis.

How are futures brokers regulated in the UK?

Futures brokers in the UK are regulated by the Financial Conduct Authority (FCA), ensuring fair practices and client protection.

Can I trade multiple asset classes with a futures broker?

Yes, reputable futures brokers offer diverse tradable instruments, including commodities, currencies, and indices.

What role does technology play in futures trading?

Technology has revolutionized futures trading, offering automated execution and real-time market data.

How can I learn effective trading strategies?

Futures brokers offer educational resources, including webinars and research reports, to help traders develop successful strategies.