Best FOREX Brokers in the UK for 2022

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FAQ

Yes, FOREX trading is completely legal in the UK.

The FOREX market is the largest financial market in the world at some six trillion dollars daily, only followed by the credit market. The market operates 24 hours a day and five days a week (Monday through Friday), except international holidays.

FOREX trading is the largest and most liquid market in the world. It involves traders buying and selling the underlying fiat currencies of different countries, and trading these for other currencies for a profit. FOREX can also be traded on a CFD method, where traders do not own the underlying currencies.

One of the most important costs associated with FOREX trading is known as the spread between the bid (sell) price and the ask (buy) price of a currency pair. The broker names the spread, which is made up of a market-driven difference in value between two currencies, marked up with a profit for the broker. Another important fee is the commission, which is a percentage fee that a broker takes off every trade. Commissions per trade are tiny, but they can add up if a trader works with large volumes.

As timing is key to FOREX trading, you must pick a brokerage firm that is able to provide good customer support around the clock. This most notably includes the company representatives being easy to reach, fast and polite, which will, in turn, spare you of having to worry about problems down the road.

Yes, FOREX trading is taxable in the UK. In the main, you will be taxed on profits from FOREX trading, even though there are certain conditions under which you will not pay tax. This relates to when you trade low volumes as an amateur speculator. However, once your trading volume passes a certain threshold, or your earnings begin to make up a certain quantum of your overall earnings, you will start to pay capital gains tax. You are advised to consult a tax professional to understand your liability more clearly.

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