Best Forex Brokers for UK100 (FTSE100) Trading 2024

A forex broker is a financial services company that provides traders with access to platforms for buying and selling currencies, acting as intermediaries between retail traders and the global currency market. This access allows individuals and businesses to engage in electronic trading across a variety of financial instruments.

The UK 100, or Financial Times Stock Exchange 100 Index, is a stock market index that measures the performance of the 100 largest companies listed on the London Stock Exchange. Trading the UK 100 enables investors to speculate on the overall movement of this index, which serves as a barometer for the UK economy. Traders can engage with the UK 100 through derivatives such as Contracts for Difference (CFDs), allowing them to capitalize on price fluctuations without owning the underlying assets.

With a wide range of online forex brokers available, finding the best one for UK 100 trading can be a daunting task. Important factors to consider include trading fees, spreads, leverage options, and the quality of the trading platform. In this article, we have compiled a list of the best forex brokers for trading the UK 100. Our goal is to assist you in identifying reliable partners that align with your trading objectives while ensuring a smooth and efficient trading experience.

A List of Top 6 Forex Brokers for UK 100 Trading

• Pepperstone: Best Overall Brokers 
• IC Markets:  Best for tight spreads
• ActivTrades: Best For EU, UK 
• Etoro: Best for Social Copy Trading
• FP Markets: Low-Cost Broker  
• Blackbull Markets: Best for Free TradingView Account 

Best Forex Brokers for Trading UK100 ( Reviewed and Compared)

What is a Forex Broker?

A forex broker is a financial services company or institution that provides traders access to a platform for buying and selling foreign currencies in the global foreign exchange market. Acting as intermediaries, forex brokers enable retail and institutional clients to execute currency trades. They connect traders to forex liquidity and the global banking system, allowing speculation on currency pairs without owning physical currencies. Forex brokers offer online trading services 24 hours a day, five days a week.

The forex market is the largest and most liquid financial market globally, with a daily trading volume exceeding $6.6 trillion. It operates on a global scale, involving participants from banks and financial institutions to individual traders. Forex brokers provide trading platforms, market analysis, educational resources, and tools to support decision-making. This over-the-counter market facilitates the buying, selling, and exchanging of currencies at prevailing rates, determining foreign exchange rates for all global currencies.

In addition to currency pairs, forex brokers offer a range of trading instruments, including indices, commodities, stocks, and cryptocurrencies. These are typically available as Contracts for Difference (CFDs), allowing traders to speculate on price movements without owning the underlying assets. CFDs enable traders to use leverage, increasing both potential profits and risks. By providing access to various trading instruments, forex brokers enhance trading strategies and help clients build balanced portfolios.

What is the UK 100 Index?

The UK 100, commonly referred to as the “Footsie,” is a stock market index that tracks the performance of the 100 largest companies listed on the London Stock Exchange (LSE) by market capitalization. Established in 1984, the index serves as a key benchmark for the UK equity market, representing major firms across various sectors, including finance, energy, healthcare, and consumer goods. The UK 100 is calculated using a free-float market capitalization-weighted methodology, which means that it reflects the market value of shares available for trading, giving more weight to larger companies within the index.

Forex brokers frequently offer the UK 100 as CFDs (Contracts for Difference), allowing traders to speculate on its price movements without directly owning the underlying stocks. On trading platforms, it may appear under various names such as FTSE 100, UK 100 Index, or UK 100 Cash. Investors closely monitor the UK 100 as an indicator of the economic health and investor sentiment within the UK and its impact on the broader European market. Its performance can be influenced by a range of factors, including macroeconomic data, corporate earnings reports, and geopolitical developments. An increase in the UK 100 typically reflects growing confidence in the UK economy, which can also affect related currency pairs, particularly those involving the British pound (GBP) and the U.S. dollar (USD).

Do Forex Brokers Allow UK 100 Trading?

Yes, forex brokers generally allow UK 100 trading. The UK 100, which tracks the performance of the 100 largest companies listed on the London Stock Exchange, is a key index for investors looking to engage with the UK stock market. Forex brokers often provide access to the UK 100, enabling traders to capitalize on movements in this significant market benchmark.

Forex brokers typically offer the UK 100 as a Contract for Difference (CFD), allowing traders to speculate on the index’s price movements without owning the underlying assets. This approach provides advantages such as leverage, enabling traders to control larger positions with less capital. By offering the UK 100 as a CFD, brokers accommodate a variety of trading strategies, from short-term trading to longer-term investments, providing opportunities for profit in both bullish and bearish market conditions.

According to our research, prominent forex brokers offering UK 100 trading include Pepperstone, ActivTrades, and FP Markets. These brokers are recognized for their reliability and are regulated globally. Pepperstone is regulated by multiple authorities, including ASIC, FCA, and CySEC, and is known for its tight spreads and high-leverage options. ActivTrades, well-regarded among EU and UK traders, is regulated by FCA and CSSF, ensuring a trustworthy trading environment. FP Markets, known for its competitive pricing and low-cost trading, is regulated by ASIC and CySEC, making it a suitable choice for traders interested in the UK 100 index.

How to Trade UK 100 on Forex Brokers

Forex brokers nowadays offer a variety of trading instruments along with currency pairs, including stocks, indices, cryptocurrencies, commodities, ETFs, and futures. They provide access to these tradable assets as CFDs. The UK 100 is one of the most popular indices, representing the 100 largest companies listed on the London Stock Exchange. Most forex brokers have this index available to trade on their platform.

To trade UK 100, the first step is to acquire knowledge about the index market and how index trading works. Learn how to analyze the markets and create a trading strategy that will help you generate your trading signals. Practice and perfect your strategies on a demo account. When you are ready to start live trading, you can proceed.

Here are the 6 steps to start UK 100 trading on Forex Brokers:
Step 1: Choose a Forex broker and open an account.
Step 2: Verify the account, fund it, and download the trading platform if required.
Step 3: Find the UK 100 index from the list of tradable assets and create a new order.
Step 4: Set your trade volume, stop loss, take profit, etc.
Step 5: Place your order by clicking ‘buy’ or ‘sell’.
Step 6: Monitor the trade and close it when you are satisfied. This completes the UK 100 trades.

Which session is best for trading UK 100?

The London session is considered the best time to trade the UK 100 due to its high volatility and significant trading volume during these hours. The UK 100, which comprises the 100 largest publicly listed companies on the London Stock Exchange, serves as a key indicator of the U.K. stock market’s health. During the London session, the active participation of institutional investors, hedge funds, and other major market players contributes to increased liquidity and tighter spreads, providing ideal trading conditions.

Additionally, the overlap between the London and New York sessions, from 8:00 AM to 12:00 PM EST (1:00 PM to 5:00 PM GMT), is particularly beneficial for trading the UK 100. This period often experiences a spike in liquidity and volatility as European and American market participants are both active. Traders can capitalize on this overlap because it often aligns with economic news releases, geopolitical developments, and corporate earnings that can drive significant price movements. For those looking to trade the UK 100, this overlap period offers a strategic opportunity to capture potential price swings and optimize trading strategies.

Is UK100 Available on MT4?

Yes, the UK100 index is available for trading on the MetaTrader 4 (MT4) platform. The UK100, also known as the FTSE 100 (Financial Times Stock Exchange 100 Index), tracks the performance of the 100 largest companies listed on the London Stock Exchange. This index serves as a key benchmark for the British stock market, representing a wide range of industries, including finance, energy, and consumer goods. Traders can access the UK100 through various forex brokers that offer this index as part of their trading instruments. The UK100 index allows traders to speculate on the performance of major UK companies, making it a popular choice for those looking to trade European stock market indices on MT4. Be sure to check with your broker for specific availability and trading conditions related to the UK100 index.

Is UK100 Good for Day Trading?

Yes, the UK100 Index is good for day trading. The UK100, also known as the FTSE 100, represents the 100 largest publicly traded companies listed on the London Stock Exchange. Day trading means buying and selling financial instruments within the same trading day to profit from short-term price movements. The UK100 Index is a favorable option for day trading due to its moderate volatility, high liquidity, and representation of leading companies across various sectors such as finance, energy, and consumer goods. This volatility provides opportunities for traders to take advantage of price fluctuations during the trading day, while the high liquidity ensures smooth and efficient trade execution. Additionally, the UK100 reflects the health of the UK economy and global market trends, making it an attractive choice for traders seeking diversified exposure and opportunities to capitalize on market movements.

Final Verdict:

If you are a trader looking to trade the UK100, you can choose a broker that aligns with your trading needs and preferences. We have thoroughly analyzed and compared the best forex brokers that offer UK100  trading. We researched focusing on regulation, fees, trading conditions, customer support, trading platforms and tools, and so on. 

Based on our research and broker ratings, the top forex brokers offering indices trading include Pepperstone, ActivTrades, and FP Markets. These brokers are highly trusted and regulated worldwide. For instance, Pepperstone is regulated by 7 top-tier regulatory authorities, including ASIC in Australia, CySEC in Cyprus, FCA in the UK, DFSA in Dubai, BaFin in Germany, CMA in Kenya, and SCB in the Bahamas. ActivTrades is a UK-based forex broker well-regarded among EU and UK traders, with FCA and CSSF regulations supporting its credibility. 

FP Markets, regulated by ASIC, CySEC,  FSA, FSCA, and SVG is known for its low-cost trading and competitive pricing on indices like the US 30, making it an attractive choice for both new and experienced traders.

IC Markets is another strong contender for trading the UK100. Regulated by ASIC, CySEC, and FSC, IC Markets is well-known for its competitive spreads and excellent liquidity. It offers access to UK100 trading with multiple platforms, including MT4, MT5, and cTrader, providing traders with the tools they need for effective market analysis.

ActivTrades is a UK-based forex and CFD broker. It is regulated by the FCA and is popular among EU and UK traders for its reliable service and adherence to local regulations. ActivTrades offers UK100 trading, along with advanced trading tools and features suitable for traders of all experience levels.

eToro is a reputed broker that offers the most popular indices like UK100.  The broker is known for its social trading platform, ideal for beginners looking to copy expert traders. All the brokers mentioned here are regulated and trusted, you can choose any of the brokers from the list and start your trading journey.