The Best Brokers for Trading EUR/GBP
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If you are a savvy investor, then you’ll be well aware that forex trading (also known as foreign exchange trading) can be an effective way of generating profit.
It’s a practice which allows you to buy and sell currency pairs, taking advantage of fluctuating exchange rates.
Trading takes place globally by individual traders, investors, even banks and other financial institutions.
The largest markets for forex trading are in London, Tokyo, New York and Hong Kong – and trades take place 24 hours a day, 7 days a week.
At WikiJob, we’ve previously published many articles on forex trading, ranging from the benefits of forex trading through to how to trade forex on a low budget and even how to become a successful part-time forex trader.
If you’re interested in learning more about what forex is and how it works, we highly recommend that you read some of our other articles to enhance your knowledge and understanding of the forex market.
You may already know that one of the best ways to trade forex is to use a specialist broker or a dedicated forex trading platform.
In this article, we’ll help you understand who the best brokers are for trading EUR/GBP currencies.
What Is EUR/GBP?
As forex trading relates to foreign currencies, you may already know that EUR/GBP refers to the Euro (which is used in countries such as France, Italy, Spain and Ireland) and the British pound (which is the currency of the United Kingdom).
Is EUR/GBP a Minor Pair or a Major Pair?
The forex market is based on pairs of currency. You buy one currency and you exchange it for another in a bid to make a profit on the currency conversion.
These currency pairs are categorized into three distinct groups:
- Major pairs – Those that are most commonly traded.
- Minor pairs – Those that do not involve the US dollar. They can also be known as cross-currency pairs.
- Exotic pairs are more niche. They tend to be a mix of a major currency (such as the USD) with an emerging currency (such as the Norwegian Krone or the South African Rand).
Although the EUR/GPB pair is a minor currency because it doesn’t involve the US dollar, it is a widely traded pair.
Why Do You Need to Know if Your Forex Pair Is Major or Minor?
The key to successful forex trading is understanding the importance of pairs.
Those new to the market will likely focus on the major pairs such as EUR/USD, USD/JPY or GBP/USD. This is because the trades are far more common and easily accessible.
Trading in exotic pairs tends to be left to experienced traders who have an in-depth understanding of the trading conditions and know how to read the market.
What You Should Consider When Trading EUR/GBP
This is a hugely important pair for many traders as it has high liquidity and a high volume of trade.
As the pair operates within a similar time zone, market fluctuations typically take place between 6 a.m. and 4 p.m. to account for the GMT and European time zones.
As the Euro covers a large part of the European continent, potential traders must pay close attention to the different political and economic challenges facing those countries.
The European Central Bank (ECB) release a variety of reports which can help traders understand how the Euro’s value may fluctuate.
These reports will look comprehensively at a variety of factors such as:
- Unemployment figures in different countries
- Economic prospects
- Interest rates, etc.
These consolidated figures are then used to provide data that predicts how the Euro may behave in the forex market.
Before buying/selling GBP, it’s also important to look at what the Bank of England (BOE) is forecasting.
The Bank of England is in control of interest rates, and much of the UK’s economic prosperity is led by this.
An additional factor to consider when trading EUR/GBP is the impact of Brexit.
When the United Kingdom voted to leave the European Union in 2016, there was much concern in the forex market about what this could mean for the two currencies.
The UK officially left the EU in January 2021 and traders will be carefully considering what the economic fallout could be, both in the short term and the long term.
As with any investment, there is never a guarantee that you will make a profit. However, trading a EUR/GBP pair is deemed a relatively low-risk investment.
This is because both currencies are classed as ‘strong’ currencies and prices typically stay consistent, which limits your potential risk.
Why It’s Important to Choose the Right Broker to Make Your EUR/GBP Trade
Many traders choose to use a dedicated and specialist broker to assist them in their forex trading. But how do you know which is the best broker?
Just because a broker is highly regarded in a specific currency pair, how do you know that they are the best brokers for trading EUR/GBP?
Before you make any investment, you must do your research. You need to feel confident that you are choosing the right forex broker for your needs.
This may depend on your experience in forex trading, your available budget, your expectations of customer service and whether your funds are fully protected.
Who Are the Best Brokers for Trading EUR/GBP?
To help you get started in your forex trading, we’ve identified the best brokers for EUR/GBP trades.
As always, it should be noted that any recommendations from the WikiJob team do not constitute financial advice and you should always undertake due diligence and speak to a financial advisor before starting your investment journey.
However, here are five highly regarded trading platforms that you may wish to look into to help you make the most of your EUR/GBP forex trade.
Investor retail accounts that lose money: 67%
Founded in 2007, eToro is considered a very low-risk broker as it is highly regulated by the Financial Conduct Authority (FCA) in the UK and many other regulatory bodies elsewhere.
Opening an account is free and you can access a $100,000 demo account to test the system.
It offers 47 currency pairs for trading. Spreads for forex trading have recently been significantly reduced and range from a very competitive 1 to 3 pips for major currency pairs.
Typical spreads for EURUSD and USDJPY trades, for example, are just 1 pip. EURGBP sitting at around 1.5 pips.
You can see the full list of spreads on the eToro website.
You’ll need to deposit a minimum of $200 for Copy Trading, eToro's standout feature which allows you to follow other traders and copy their trades.
This forex broker is great for beginners due to its user-friendly interface and app and 24-hour customer support. It allows you to trade currencies, stocks and cryptocurrencies in one portfolio and the Copy Trading system is a great way to learn.
The company also offers trading courses and features a Learning Lab which houses a variety of tools to support clients with their trading experience.
*67% 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.*
Investor retail accounts that lose money: 75%
IG specializes in retail forex trading and has gained a solid reputation as being one of the best forex trading platforms for traders.
It has a wide range of investment opportunities, from spread betting and CFDs for short-term investments as well as SIPPS and stocks and shares ISAs for long-term financial planning.
It operates across 17,000 markets and has 51 pairs available for forex trading.
This means that you can remain in control of your investment wherever you are located.
The customer service at IG is highly rated by users, and with 45 years’ experience, you can feel confident that you will receive helpful advice and support from their advisors.
Investor retail accounts that lose money: 67%
Saxo Capital Markets is part of the Saxo bank, and as such, specializes in working with experienced traders as well as those looking to invest in exotic pairs.
Saxo's clients benefit from a 24-hour customer service that is open across all markets and have the opportunity to build relationships with account managers and trading experts.
This means that you can take advice from those in-the-know and establish the best ways to manage your investments.
Another reason to trust Saxo, beyond its numerous industry awards, is its size.
With 25 years’ experience, Saxo currently works with clients across 170 countries and processes over one million transactions per day.
The sheer scale of the operation means that you can feel confident that your funds will be protected.
4. CMC Markets
Investor retail accounts that lose money: 76%
With CMC, you can trade over 330 forex pairs, offering an unparalleled choice of forex investment opportunities.
Trading typically takes place across its online platform or mobile app, which means that you can manage your trades at a time/place that suits you.
The ‘Next Generation’ online platform has won numerous awards for its functionality and CMC focuses heavily on supplying traders with data to inform their decision-making.
CMC also has a good risk-management facility which allows traders to maximize profits and minimize losses. However, there is a premium for guaranteed stop losses which will be refunded if the stop loss isn’t triggered.
CMC offers competitive pricing. Unlike other forex trading platforms, CMC does not take a commission. Instead, it earns its revenue through spreads.
CMC is a good choice for experienced forex traders. The firm offers a pro account for professional traders, giving better margin rates as well as early access to new products.
Investor retail accounts that lose money: 74%
Established in 2001, Forex.com has a long-esteemed reputation for being a safe forex trading platform.
With low fees and a competitive range of 80 forex pairs, it’s easy to see why consumers are drawn to the broker.
The low minimum deposit ($100) compares favorably to IG and new users can test their skills with a demo account before they take the plunge and open up an account.
However, the desktop-based platform isn’t as easy to use as other systems (notably CMC) and there are fewer investment choices available for users than other brokers.
For new traders, the wealth of educational tools available on the Forex.com website means that there’s ample opportunity to improve your understanding of how to make the most of your forex trades.
As a forex trading platform, Forex.com understands that speed is vital. New users can open an account in as little as five minutes. All you need is your name, address and tax number, and the system will automatically verify your identity.
Although the company will let you open an account with a small $100 deposit, it recommends that your starting budget is $2,500. Therefore, it’s perhaps a platform better suited to experienced traders.
Investor retail accounts that lose money: Unknown
Interactive Brokers is a strong broker choice for experienced and professional forex traders.
As a trading platform, users have access to 135 markets across 33 countries, giving far greater opportunities than just EUR/GBP forex trades.
Users may find that their location may impact their trading opportunities. For example, retail spot forex trading is not eligible to US residents and those living in the US, Canada or Hong Kong are unable to benefit from CFDs.
However, professionals are drawn to the platform because it offers low commissions and financing rates.
The Trader Workstation (the desktop platform offered by Interactive Brokers) offers a wealth of information for professionals to use, optimizing transaction speed and efficiency.
As well as dealing in forex trades, users can also use the platform to trade stocks, options, bonds and funds from one single account.
The complexity and strength of the platform mean that Interactive Brokers is not recommended for new users; instead, the firm prides itself on being 'the Professional’s gateway to the world markets'.
As you can imagine, there are hundreds of trading platforms available that can facilitate EUR/GBP trades. But to find the best forex trading platform, you need to consider your experience and your investment levels.
Throughout our research of the five best brokers for trading EUR/GBP, we discovered, although trading platforms are broadly similar, they do have their specializations which should factor into your choice.
For those new to the market, a platform such as IG could be a good option. For those with more experience, bigger budgets or an interest in exotic pairs as well as EUR/GBP trades, you may be more suited to something like Saxo or Interactive Brokers.
You must consider what is important to you. Do you want to be heavily involved in your forex trade, or would you prefer a platform that automates your investments or has an experienced account manager/trade expert on hand to manage your investment on your behalf?
Are you looking for a system that offers comprehensive risk management tools to minimize your potential losses? Do you need help to interpret and understand the forex trading charts?
Another tip to consider when researching which is the best forex trading platform to use, is to research what percentage of users lose money when trading with that provider.
Most forex brokers will publicly share that information on their website homepage (often at the top of the page). This will give you a good insight into how risky your investment may be.
Finally, an easy way to find the best forex broker is to ask to use their demo accounts before you officially hand over your credit card or bank details.
Take the time to get to know different platforms and interfaces – some will feel far more intuitive than others. You need to have confidence that you know how to use your broker’s trading platform to achieve success.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.