Best Futures Brokers in the UK for 2024
Dom Farnell
Co-Founder
Dom, a Co-Founder at TIC, is an avid investor and experienced blogger who specialises in financial markets and wealth management. He strives to help people make smart investment decisions through clear and engaging content.
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Quick Answer: The 7 Best Future Brokers in the UK are…
- Plus500 – User-friendly platform with competitive spreads.
- Interactive Brokers – Advanced tools and low trading costs.
- IG – Comprehensive market access with reliable execution.
- eToro – Innovative social trading with diverse assets.
- Saxo – Professional-grade platform with extensive features.
- AvaTrade – Strong educational resources and risk management.
- Trading 212 – Commission-free trading with intuitive interface.
What Does This Page Cover?
How Do the Top Futures Brokers Compare?
| Broker | Regulatory Authority | Assets Available | Fees | User Friendliness | Advanced Tools | Market Access | Educational Resources | Risk Management | Overall Score (out of 10) |
|---|---|---|---|---|---|---|---|---|---|
| Plus500 | FCA (UK), ASIC (Australia), CySEC (Cyprus) | Agriculture, Cryptocurrencies, Metals, Commodities, Forex, Interest Rates, Energy, and Equity Indices | Competitive spreads | 9 | 7 | 8 | 7 | 8 | 9 |
| Interactive Brokers | SEC (US), FCA (UK), ASIC (Australia) | Stocks, options, futures, forex, bonds, funds | Low commissions, tiered fees | 8 | 9 | 9 | 8 | 9 | 9 |
| IG | FCA (UK), ASIC (Australia), CFTC (US) | Forex, CFDs on indices, commodities, shares, | Competitive spreads | 8 | 8 | 9 | 8 | 8 | 8.5 |
| eToro | FCA (UK), ASIC (Australia), CySEC (Cyprus) | Stocks, ETFs, forex, commodities | See eToro Website for Detail | 9 | 7 | 8 | 7 | 7 | 8 |
| Saxo | FCA (UK), ASIC (Australia), MAS (Singapore) | Forex, CFDs on indices, commodities, shares, options, futures | Competitive spreads | 8 | 9 | 9 | 8 | 9 | 7.5 |
| AvaTrade | FCA (UK), ASIC (Australia), CFTC (US) | Forex, CFDs on indices, commodities, shares | Competitive spreads | 8 | 8 | 8 | 9 | 9 | 7 |
| Trading 212 | FCA (UK), CySEC (Cyprus) | Stocks, ETFs, forex, CFDs on indices, commodities | Commission-free (some fees apply) | 9 | 7 | 8 | 7 | 8 | 6.5 |
*Plus500 Futures is available to individual US residents only
What Should You Consider When Choosing a Futures Broker in the UK?
Choosing the right futures broker is crucial for successful trading. With numerous brokers available, focusing on key factors like regulation, platform stability, features, and fees can help you make an informed decision.
Regulation is paramount when selecting a futures broker, especially in the UK. Regulated brokers adhere to strict standards that protect your funds and ensure fair trading practices. Look for brokers regulated by the Financial Conduct Authority (FCA), as this offers a layer of protection, including negative balance protection and segregated client accounts. FCA regulation also means the broker complies with measures to prevent fraud and ensure transparency in their operations.
Platform stability is essential for executing trades swiftly and accurately. A stable platform minimizes the risk of system crashes or technical glitches during volatile market conditions, ensuring you don’t miss trading opportunities. The best brokers offer robust platforms with high uptime, efficient order execution, and reliable access during peak trading hours. Interactive Brokers and IG are examples of brokers known for their stable trading platforms.
Key features can significantly impact your trading experience. Look for brokers offering:
- Advanced Charting Tools: For analysing market trends and making informed decisions.
- Variety of Order Types: To manage trades effectively, including limit orders, stop-loss orders, and trailing stops.
- Educational Resources: Such as webinars, tutorials, and market analysis to enhance your trading knowledge.
- Customer Support: Responsive and knowledgeable support is crucial for resolving issues promptly.
- Mobile Trading: For trading on the go with fully functional mobile apps.
Plus500 and eToro are known for user-friendly platforms with comprehensive features, including risk management tools and real-time market data.
Fees and commissions directly affect your profitability. Understanding the fee structure of your broker is essential. Here are some fees to consider:
- Spread: The difference between the buy and sell price.
- Commissions: Charged per trade; some brokers offer commission-free trading.
- Overnight Fees: For holding positions overnight.
- Deposit/Withdrawal Fees: Some brokers charge for funding your account or withdrawing funds.
Why These Criteria Matter
Choosing the right trading platform is about aligning it with your personal needs and trading style. When I was a beginner, I wanted simplicity and educational resources. Now, I value market access and speed of execution. These criteria are flexible enough to accommodate traders at different stages of their journey. Whether you’re trading daily or just managing a long-term portfolio, these platforms can provide the tools you need to succeed.
So, how did we narrow it down to the top picks? It’s a blend of my own hands-on experience and the careful consideration of several key factors that can significantly impact your trading success. Here’s what I always keep in mind:
Which Are the Best Futures Brokers in the UK? (Detailed Reviews)
Is Plus500 the Right Choice for You?
Plus500 offers a user-friendly platform and is known for its transparency and competitive spreads.
Plus500 Futures is available to individual US residents only.
What Are the Key Features of Plus500?
- Offers a range of futures contracts across various markets.
- Provides risk management tools like stop-loss orders and guaranteed stops.
- Features an intuitive trading platform with real-time quotes and alerts.
- Access to a demo account for practice trading.
How Does Plus500 Handle Fees and Commissions?
- Commissions are charged on the platform – Check Plus 500 for details
- Competitive and transparent spreads, with no hidden fees.
- No deposit or withdrawal fees, but there are overnight and inactivity fees.
What Is the User Experience Like on Plus500?
- The platform is web-based and mobile-friendly, making it accessible for all types of traders.
- Simple interface designed for ease of use, ideal for beginners.
- Provides quick execution of trades with minimal slippage.
How Does Plus500 Ensure Safety and Regulation?
- Regulated CFTC (NFA ID number 0001398)
- Regulated by the Financial Conduct Authority (FCA) in the UK.
- Implements negative balance protection and keeps client funds in segregated accounts.
- Uses advanced encryption for data security.
TIC Score 4.6/5
What Makes Interactive Brokers Stand Out?
Interactive Brokers is renowned for its advanced trading tools and low-cost structure.
The inclusion of Interactive Brokers’ (IBKR) name, logo or weblinks is present pursuant to an advertising
arrangement only. IBKR is not a contributor, reviewer, provider or sponsor of content published on this site, and
is not responsible for the accuracy of any products or services discussed.
What Trading Tools Does Interactive Brokers Offer?
- Advanced trading tools like Trader Workstation (TWS) for professional-level charting and analysis.
- Access to global markets and a broad range of futures contracts.
- Offers API integration for custom trading strategies.
- Comprehensive research tools and news feeds.
How Competitive Are Interactive Brokers’ Fees?
- Offers some of the lowest commissions in the industry.
- Transparent pricing with tiered and fixed-rate plans.
- Low margin rates and no hidden fees.
How Does Interactive Brokers’ Platform Perform?
- Highly reliable with fast execution speeds, suitable for high-frequency trading.
- Offers multiple platforms including desktop, web, and mobile versions.
- Advanced order types and trading algorithms to cater to sophisticated traders.
Is Interactive Brokers Suitable for Beginners?
- Provides a steep learning curve due to the platform’s complexity.
- Offers extensive educational resources, including webinars and tutorials.
- Better suited for experienced traders, but beginners can benefit from the learning materials provided.
Why Should You Consider IG for Futures Trading?
IG is known for its comprehensive market access and reliable trading platform.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
How User-Friendly Is the IG Trading Platform?
- Offers an easy-to-navigate platform with customizable layouts.
- Features a powerful mobile app for trading on the go.
- Provides access to a wide range of futures markets, including commodities and indices.
What Are the Costs Associated with IG?
- Competitive spreads with a transparent fee structure.
- Charges an inactivity fee, but no commission on futures trades.
- Provides an overnight funding fee for leveraged positions.
Does IG Provide Quality Research and Analysis Tools?
- Extensive range of research tools, including market analysis, news feeds, and economic calendars.
- Offers educational resources like webinars, articles, and trading courses.
- Access to premium research from experts and real-time market insights.
How Trustworthy Is IG in Terms of Regulation?
- Fully regulated by the FCA, ensuring a high level of investor protection.
- Offers negative balance protection and segregates client funds.
- Has a strong reputation with over 45 years of industry experience.
Is eToro a Good Option for Futures Trading?
eToro offers a unique social trading experience with a diverse range of assets.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
What Makes eToro Unique?
- Known for its social trading platform, allowing users to copy the trades of experienced investors.
- Offers a wide range of markets, including futures, forex.
- User-friendly platform suitable for beginners and experienced traders.
How Does eToro’s Fee Structure Work?
- Transparent fee structure with no hidden costs.
- Overnight fees apply to leveraged positions and there is a withdrawal fee.
How Does eToro’s Social Trading Feature Benefit Traders?
- Allows users to follow and replicate the trading strategies of top investors.
- Offers a social news feed to stay updated on market trends and discussions.
- Provides risk management tools like CopyTrader, enabling users to allocate funds automatically.
Is eToro Regulated and Safe to Use?
- Regulated by the FCA in the UK, offering a secure trading environment.
- Implements negative balance protection and secure data encryption.
- Holds client funds in segregated accounts to enhance security.
What Can You Expect from Saxo?
Saxo offers a professional-grade platform with advanced trading features.
64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What Advanced Features Does Saxo Offer?
- Provides access to a wide range of futures and options across global markets.
- Offers professional-grade trading platforms like SaxoTraderGO and SaxoTraderPRO.
- Features advanced charting tools, technical analysis, and integrated trading strategies.
How Does Saxo Compare in Terms of Fees?
- Transparent pricing with volume-based discounts for high-volume traders.
- Charges commission on futures trades but offers competitive spreads.
- No hidden fees, but there are overnight holding costs for leveraged positions.
Is Saxo Suitable for Professional Traders?
- Yes, it offers advanced trading tools and direct market access.
- Provides professional-level insights and analytics.
- Supports API trading and offers a wide range of order types.
What Security Measures Does Saxo Have in Place?
- Regulated by the FCA, ensuring compliance with strict industry standards.
- Implements multi-factor authentication and encryption for data security.
- Segregates client funds in top-tier banks for added protection.
TIC Score 3.5/5
Is AvaTrade a Reliable Broker for Futures Trading?
AvaTrade is known for its strong educational resources and risk management tools.
64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What Does AvaTrade Offer in Terms of Trading Platforms?
- Offers multiple platforms including MetaTrader 4/5, AvaTradeGO, and WebTrader.
- Provides access to a variety of futures markets including indices, commodities, and forex.
- Features automated trading capabilities through AvaTrade’s platform integrations.
Are AvaTrade’s Fees Competitive?
- Offers fixed and variable spreads with no commission on trades.
- Provides transparent pricing with no hidden fees.
- Charges overnight fees on leveraged positions and an inactivity fee after three months.
How Does AvaTrade Support Its Traders?
- Offers extensive educational resources including webinars, eBooks, and trading guides.
- Provides a dedicated account manager for personalized support.
- Features risk management tools like negative balance protection and guaranteed stop-loss orders.
How Regulated and Secure Is AvaTrade?
- Fully regulated by the FCA and other global regulatory bodies.
- Ensures client fund protection through segregated accounts.
- Implements robust security measures including encryption and secure socket layer (SSL) protocols.
TIC Score 4/5
How Does Trading 212 Measure Up as a Futures Broker?
Trading 212 is recognized for its commission-free trading and intuitive platform.
81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
What Features Does Trading 212 Provide for Futures Trading?
- Offers commission-free trading on a range of futures contracts.
- Features an easy-to-use platform with advanced charting and analysis tools.
- Provides a practice account with virtual funds for beginners to hone their skills.
What Is Trading 212’s Fee Structure Like?
- No commissions on trades; revenue is made through spreads.
- Offers competitive spreads with no hidden charges.
- No deposit, withdrawal, or inactivity fees, making it cost-effective.
How Does Trading 212 Ensure an Optimal Trading Experience?
- Provides a user-friendly interface suitable for both beginners and experienced traders.
- Offers a mobile app with full trading capabilities and real-time market data.
- Ensures fast order execution with minimal latency.
Is Trading 212 a Safe and Reliable Platform?
- Regulated by the FCA, ensuring compliance with stringent financial regulations.
- Implements negative balance protection and segregates client funds.
- Uses encryption technology to safeguard personal and financial information.
Regulatory Oversight and Customer Protection Measures
Ensuring that a futures broker is properly regulated is crucial for trader protection. Each of the top brokers in the UK is subject to strict oversight by regulatory authorities such as the Financial Conduct Authority (FCA) and other global regulators. These measures ensure fair trading practices, fund security, and transparency.
Key Regulatory Features to Look For:
- FCA Regulation: Ensures compliance with stringent financial laws.
- Negative Balance Protection: Prevents traders from losing more than their account balance.
- Segregated Client Accounts: Protects client funds from being misused by brokers.
- Investor Compensation Schemes: Some brokers participate in schemes that offer compensation in case of broker insolvency.
Regulatory Status of Top Brokers:
- Plus500: FCA-regulated, offers negative balance protection and segregated accounts.
- Interactive Brokers: Overseen by FCA, SEC (US), and ASIC (Australia), ensuring strong compliance.
- IG: Regulated by FCA with a long-standing reputation for security.
- eToro: Compliant with FCA, CySEC, and ASIC, ensuring multi-jurisdictional oversight.
Reputation and Track Record of Brokers
A broker’s reputation is a key indicator of trustworthiness. Reviewing their track record, history of misconduct, and overall transparency can help traders make informed decisions.
Broker Reputation Highlights:
Plus500: Established in 2008, known for reliability and transparency. No major scandals reported.
Interactive Brokers: Strong global presence, but has been fined in the past for minor compliance issues.
IG: 45+ years in the market with a strong reputation; has faced regulatory scrutiny but no major fraud cases.
eToro: Popular for social trading, but some users have reported issues with withdrawal delays.
What Is Futures Trading and How Does It Work?
Futures trading involves buying and selling standardized contracts that bind traders to buy or sell an underlying asset at a specific price on a future date. It’s widely used for speculation and hedging, allowing traders to profit from price fluctuations in commodities, indices, or currencies.
How Does Futures Trading Work?
Futures contracts are agreements to buy or sell an asset at a predetermined price on a specific date. Here’s how it works:
- Contract Specifics: A futures contract details the asset, quantity, price, and expiration date. For example, an oil futures contract might require the delivery of 1,000 barrels of oil in December.
- Leverage: Futures trading often involves leverage, meaning traders only need to deposit a small fraction (initial margin) of the contract’s full value to control a large position.
- Settlement: Futures contracts can be settled either by physical delivery or cash settlement, but most traders close their positions before the expiration date to avoid taking delivery.
How Much Money Do You Need to Start Trading Futures?
The amount of capital required for futures trading depends on the contract and broker. Here are key factors:
- Initial Margin: This is the minimum deposit required to open a position. It typically ranges from 5% to 15% of the total contract value. For example, if a futures contract is worth £10,000 and the margin is 10%, you’d need £1,000 to trade.
- Broker Minimums: Brokers may require a minimum deposit to trade futures. Plus500 offers lower minimums, while Interactive Brokers might require more capital.
- Risk Capital: Given the high risk of futures trading due to leverage, it’s recommended to trade only with money you can afford to lose.
Leverage Impact on Futures Trading: Example
The following table illustrates how different leverage levels affect the profit or loss on a £10,000 futures contract after a 5% market movement:
Leverage | Initial Margin Required | Market Movement (5%) | Profit/Loss on Position |
1:1 | £10,000 | +£500 | +£500 |
2:1 | £5,000 | +£500 | +£1,000 |
5:1 | £2,000 | +£500 | +£2,500 |
10:1 | £1,000 | +£500 | +£5,000 |
Explanation:
- Leverage represents the ratio between the position size and the amount of margin required.
- Initial Margin Required is the actual amount of capital needed to control the position.
- Market Movement (5%) shows the impact of a 5% positive market move.
- Profit/Loss on Position highlights how the profit increases as leverage increases.
The Dual Purpose of Futures Trading:
Speculation vs. Hedging
Futures trading serves two primary purposes: speculation and hedging. Understanding these approaches helps traders align their strategies with investment goals.
Speculation – Buying/selling futures contracts for profit, relying on market analysis.
Hedging – Reducing risk by offsetting potential losses in an underlying asset (e.g., a farmer hedging wheat prices).
Popular Futures Trading Strategies
Futures trading is a versatile market, and traders adopt various strategies to maximize potential returns while managing risks effectively. Here are some of the most common strategies used in futures trading:
- Day Trading – Short-term trades executed within the same day, relying on technical analysis and price movements.
- Swing Trading – Capturing price movements over days or weeks, combining technical and fundamental analysis.
- Speculative Trading – High-risk trading based on market predictions, often using leverage to increase exposure.
How Can You Place Your First Futures Trade?
Placing your first futures trade is a straightforward process:
- Open a Trading Account: Choose a futures broker like IG or eToro and create a trading account.
- Fund Your Account: Deposit the required capital to meet the margin requirements.
- Select a Market: Decide which asset you want to trade, such as crude oil, gold, or stock indices like FTSE 100.
- Choose Contract Size and Expiration: Select the appropriate contract based on your trading strategy and the asset’s expiry date.
- Place Your Order: Use your broker’s trading platform to execute a market or limit order.
- Monitor Your Position: Manage your risk by setting stop-loss or take-profit orders as needed.
What Are the Potential Risks and Rewards of Trading Futures?
Rewards:
- Profit Potential: Leverage allows traders to control larger positions with relatively small amounts of capital, creating opportunities for significant returns.
- Market Access: Futures offer exposure to a wide range of assets, from commodities like oil and gold to indices and currencies.
- Liquidity: Futures markets are highly liquid, meaning you can easily enter or exit positions.
Risks:
- Leverage Risk: While leverage can magnify gains, it also increases potential losses. A small adverse price movement can result in substantial losses.
- Market Volatility: Futures markets can experience significant price swings, leading to large gains or losses in a short period.
- Margin Calls: If the market moves against your position, you may be required to deposit additional funds to maintain your trade, known as a margin call.
This table and explanation provide a clearer view of how leverage works and help you understand the capital requirements, trading process, and risks involved in futures trading.
How Can You Start Trading Futures with These Brokers?
Getting started with futures trading involves a few key steps, from opening an account to placing your first trade. Here’s a guide to help you navigate the process with these top brokers.
What Are the Steps to Open an Account?
Opening an account with a futures broker like Plus500, Interactive Brokers, or IG is straightforward:
- Choose Your Broker: Select a broker that suits your trading needs and experience level.
- Complete the Application: Visit the broker’s website and fill out the online application form. You’ll need to provide personal information, including your name, address, and identification documents.
- Verify Your Identity: Brokers require identity verification to comply with regulations. You’ll need to upload documents like a passport or driver’s license and proof of address.
- Financial Assessment: Some brokers might ask questions about your financial situation and trading experience to assess your suitability for futures trading.
- Approval and Account Setup: Once your application is reviewed and approved, you’ll receive login details for your trading account.
How Do You Deposit and Withdraw Funds?
Depositing and withdrawing funds with brokers like eToro and Trading 212 is user-friendly:
- Deposit Funds:
- Log in to your trading account and navigate to the ‘Deposit’ section.
- Choose your preferred payment method. Most brokers accept bank transfers, credit/debit cards, and e-wallets like PayPal.
- Enter the amount you wish to deposit and follow the instructions. The processing time varies depending on the method, but card payments and e-wallets are usually instant.
- Withdraw Funds:
- Go to the ‘Withdrawal’ section of your account.
- Select the payment method and enter the amount you want to withdraw.
- Submit the request. Withdrawal times vary; bank transfers may take a few days, while e-wallets are generally quicker.
- Fees: Some brokers, like AvaTrade, offer fee-free deposits and withdrawals, while others may charge a small fee, especially for bank transfers or currency conversions.
The Importance of Using Demo Accounts for Practice
Before engaging in real futures trading, it is crucial to practice and refine strategies using demo accounts. Most top futures brokers offer demo accounts that simulate real market conditions without financial risk.
Benefits of Using a Demo Account:
Risk-Free Learning – Practice without financial exposure.
Understanding Market Behavior – Learn price movements and execution.
Testing Strategies – Fine-tune trading approaches.
Building Confidence – Develop trading discipline before investing real funds.
How Can You Place Your First Trade on Each Platform?
Each broker has a slightly different process for placing trades, but here’s a general guide applicable to most platforms:
- Log In to Your Account: Access your broker’s trading platform via desktop or mobile app.
- Select the Market: Search for the futures market you want to trade, such as crude oil, gold, or the FTSE 100 index.
- Choose Contract and Order Type: Select the contract size and choose between order types like market, limit, or stop-loss.
- Enter Trade Details: Specify the number of contracts and any stop-loss or take-profit levels to manage your risk.
- Execute the Trade: Review the trade details and confirm to execute your order.
- Monitor Your Trade: Track your trade’s performance in the ‘Open Positions’ or ‘Portfolio’ section.
Platform-Specific Notes:
- Plus500: Offers an intuitive interface with simple steps to execute trades, ideal for beginners.
- Interactive Brokers: Provides advanced trading tools; suitable for experienced traders looking for detailed analytics.
- IG: Known for its user-friendly platform and comprehensive charting tools, making trade execution straightforward.
References:
FAQs
eToro and Plus500 are often recommended for beginners due to their user-friendly platforms, educational resources, and the availability of demo accounts for practice trading. They offer straightforward interfaces and customer support, making it easier for new traders to understand the basics of futures trading.
Regulation is crucial when selecting a futures broker. Brokers regulated by the Financial Conduct Authority (FCA) offer a higher level of protection, including client fund segregation and negative balance protection. This ensures that your funds are safeguarded and that the broker adheres to strict trading standards and practices.
Futures brokers typically charge several types of fees, including:
- Spreads: The difference between the buying and selling price. Plus500 operates on a spread-only model.
- Commissions: Some brokers, like Interactive Brokers, charge a commission per trade, while others may not.
- Overnight Fees: Charged for holding positions overnight.
- Inactivity Fees: Some brokers may charge a fee if there is no trading activity for a certain period.
- Deposit/Withdrawal Fees: While many brokers offer free deposits, there may be fees for certain withdrawal methods.
Yes, most brokers offer mobile trading platforms that allow you to trade futures on the go. These apps provide nearly all the functionalities of the desktop platform, including market analysis, placing trades, and monitoring positions. Brokers like IG, eToro, and Trading 212 have robust mobile apps with real-time data, making it convenient for traders to manage their portfolios from anywhere.
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Start trading Futures with Plus500
Plus500 Futures is available to individual US residents only.
