Top Prop Trading Firms for UK Traders
Looking for the top forex prop trading firm in the United Kingdom? Based on our hands-on analysis, we've identified the best options tailored to various trading needs.
- FunderPro - Exclusive Discount Code (20% Off Exclusive Offer)
- FundedNext
- FXIFY
With its capital London featuring prominently as one of the world’s leading forex trading hubs, the UK is a country where the forex industry has long been a booming field. In fact, currently the UK accounts for a significant share of the global daily forex trading volume, with an average of $2.9 trillion traded daily out of the $7.5 trillion forex market worldwide. In this post we shall attempt to provide a brief overview of the bustling UK forex landscape, paying particular attention to the booming prop trading market for UK traders. The surge for interest in prop trading in the UK, as evidenced by relevant data is well rooted and well justified, as it provides an abundance of added opportunities for existing and aspiring traders. But let us take a closer look to find out more on the why that is so.
Overview of Forex Trading in the UK
The UK’s national currency, the British pound sterling (GBP) is involved in approximately 13% of all global forex trades. This percentage ranks the GBP on fourth place in terms of currency trading volumes only behind the USD, the EUR, and the JPY, according to data provided by the Bank of International Settlements.
Due to the UK’s prominent position in the global forex market, currency pairs such as GBP/USD, EUR/GBP, and GBP/JPY are popular choices for traders worldwide. This means that those who are able to understand these pairs are in an advantageous position, which provides them with unique opportunities to capitalize on currency price fluctuations that are driven by the UK economy and geopolitical events.
The financial market, in general, and forex trading, in particular, in the UK is regulated primarily by the Financial Conduct Authority (FCA). The FCA is a strict regulator which strives to ensure high standards of transparency and investor protection, earning it a top position as one of the world’s most respected financial regulators, setting benchmarks for the industry worldwide.
The Role of the FCA in Forex Trading
The Financial Conduct Authority (FCA) plays a crucial role in the UK landscape, as it oversees the forex brokers operating in the UK. Currently, the FCA actively regulates the conduct of 50,000 firms registered to operate in and out of the UK, while it also supervises 48,000 more. As the main industry watchdog, its primary role is to enforce the compliance of forex brokers and firms with the national regulations designed to protect investors and maintain the overall integrity of the financial markets.
The FCA has extensive powers in regulating market operations and in extreme cases, it can take emergency action against brokers, including revoking licenses or suspending trading if it deems that a firm fails to comply with regulations. The FCA’s strict oversight has earned it a Tier-1 ranking among financial regulators globally, thus giving UK based forex traders extra confidence that they are trading in an environment that is well protected.
Is Forex Trading Taxed in the UK?
The taxation implemented on forex trading profits in the UK depends on several factors, including the trading method they fall under (individual vs. corporate), the trading frequency, and whether the trades are considered as speculative or as part of a business activity.
As things stand, forex trading profits for UK based traders may be subject to either the capital gains tax (CGT) or the income tax, which are both payable to HMRC (His Majesty’s Revenue & Customs).
The good news for UK forex traders is that If you’re trading forex as a side activity, you may benefit from the trading allowance, which allows you to earn up to £1,000 of additional income tax-free. However, any profits achieved through forex trading beyond this threshold, are taxed based on your total income level. Additionally, even if you do remain under the threshold, registration for self-assessment purposes may still be required.
More specifically and under the current tax rules of the country, for full-time self-employed traders, profits over the tax-free personal allowance, which stands at £12,570 for the 2024/25 tax year, are subject to the imposition of income tax.
What is interesting to note is that profits from spread betting are tax-free for UK residents, unlike profits from regular forex trading, which, as already mentioned, are subject to taxation. Additionally, forex trading does not incur stamp duty, which is typically applied to share trading.
However, it's important for all existing and aspiring UK forex traders to consult a professional tax advisor, who can accurately assess each trader’s unique circumstances, as you be able and eligible to claim additional allowances or exemptions that may be more beneficial than the £1,000 trading allowance.
What is the Best Time to Trade Forex in the UK?
The chances of aspiring UK based forex traders for trading success are improved if their trades are timed correctly. Thus, knowing what the best time to trade forex in the UK can boost your trading endeavor. The highest liquidity and volatility in the UK forex trading, are typically observed as traders begin their day. More specifically, the UK forex market usually records its peak activity shortly after the London session opens, at 8 am UK time.
After this initial high, which usually lasts for about 2 hours, until 10 am, liquidity slows down. The next peak is recorded around 12pm UK time, when the US markets open. The simultaneous activity of both European and American traders at this time thus creates one of the most active trading periods of the day.
The least liquid for traders in the UK is the Asian markets session, due to the significant time zone differences. On the other hand, the US session, which is the last session before the 24-hour forex trading day ends, often experiences elevated volumes as traders react to the latest news and events before the market closes, trying to capitalize on last-minute trends or shifts.
How to Start Forex Trading in the UK
Given its consolidated position and proven popularity among UK traders, starting your engagement with forex trading in the UK is a simple and straightforward process. All an interested trader has to do is choose a reliable retail forex broker to trade through. To ensure maximum reliability and their funds protection, it is best that traders select their broker wisely and prefer brokers that are duly regulated by the FCA.
Selecting an FCA-regulated broker is in fact of paramount importance so that they can enjoy the FCA provided legal protections and be able to trade in a safe environment. The FCA requires that its regulated brokers adhere to strict requirements to ensure transparency and customer safety. To verify if a broker you are considering to choose is authorized by the FCA, find out the broker’s their register number, which is usually displayed on their website, and then confirm it through the official FCA register to avoid being scammed.
Once you select your preferred broker then the processes of opening and funding your brokerage account is straightforward and you can soon start using the broker’s trading platform to be able to place your forex trades.
If you are a novice in the forex trading world, it is best that you first use the demo accounts, offered by the majority of forex brokers, in order to learn the basics and practice your trading skills with virtual money, also familiarizing yourself with how the trading platform works and how to use the tools provided, before risking any real money. This will give you more confidence and better prepare you for trading using your own money, mitigating the risk for incurring big losses.
Quick conclusions on the UK forex trading landscape
The UK is undoubtedly an attractive place for forex traders, since the country is among the top global forex trading hubs. This is complimented by the financial prominence of the UK capital London, as well as by the presence of the highly respected FCA as the regulating authority on the UK scene. Through the right understanding of the associated tax implications and by smartly leveraging the liquidity of key trading times during sessions, all UK based traders, can effectively enhance their trading experience and maximize their chances for success.
Prop trading in the UK
Having briefly examined the UK forex landscape, let us now focus our attention on the exponential growth of the field of proprietary trading in the UK. The significant growth in the numbers as well as the popularity of prop trading firms is clearly established as the new trend in the overall UK trading industry. This boom is adequately explained by the unique business model of prop firms and the distinct advantages that they offer to UK traders. What is crucial for traders to understand is how and where prop firms and their offering differs from the traditional retail forex experience that UK traders are accustomed to.
To help aspiring UK prop traders decide if they would like to take the leap into prop trader, here are the three key differences they should take into account:
Key Difference 1: Prop Trading Firms Don’t Handle Client Funds
One of the main distinctions of proprietary trading firms is that they do not manage client funds. Unlike traditional forex brokers, who safeguard and invest their clients’ capital, prop trading firms trade solely with their own funds, in fact they fund traders with proven trading skills to trade on their behalf. This business model employed by prop firms, effectively eliminates the need for client deposits, which largely simplifies their operations.
As a result, prop firms can better focus their available resources on core trading activities, enhancing in this way their operational efficiency and allowing them to be better able to quickly adapt to market changes. The increased flexibility they have in contrast with traditional forex brokers, allows prop firms to operate under a more streamlined and agile business model, which benefits both the funded traders and the prop firms themselves.
Key Difference 2: Traders Only Risk the Entry Fee
A major benefit for traders when choosing to trade through proprietary firms is the fact that they are practically shielded from losses exceeding their entry fee. In traditional forex brokerage setups, traders face the risk of losing not only their initial investment but potentially more, depending on leverage and other market conditions. When trading through prop firms, however, the trader’s risk is limited to their entry fee, as they trade using the firm’s capital to place their traders and not their own funds.
Understandably then, for the prop firm, the stakes are higher than for the actual trader. This is why prop firms are extremely careful when they are vetting traders to fund, by analyzing their trading history and performance statistics. To further mitigate their risk, prop firms employ an array of risk management tools, such as stop-loss levels, as well as additional risk management solutions like system alerts and advanced stopout features. Such advanced and innovative technological solutions allow prop firms to be able to efficiently and effectively manage risk and continue to offer traders the opportunity to trade with the large capital base of prop firms, thus boosting their endeavors and potential profits.
Key Difference 3: Prop Firms Are Not Bound by Financial Entity Regulations
Since proprietary trading firms do not hold client funds, as things currently stand, they are not directly and effectively subject to the same regulatory requirements as traditional financial institutions. This allows prop firms to concentrate on refining their trading strategies and performance, without the administrative burden of managing client assets and having to adhere to the associated relevant regulatory framework and watchdog demands and stipulations.
The UK’s prop trading landscape is dynamic and evolving. As prop trading gains even more traction, discussions regarding the potential regulatory oversight of this market segment are intensifying. While opinions on the specifics of future regulations vary, it's widely anticipated that new requirements for prop firms are on the horizon, increasing the burden and pressure on existing and aspiring prop firms operating in the UK.
Against this constantly changing and evolving backdrop, the prop firms operating in the UK are called to prioritize an ethical conduct towards traders and the cultivation of transparent, trust-based relationships with them. As the prop industry moves into maturity and regulatory frameworks around it begin to take their shape, ongoing success for both prop firms and prop traders may only be ensured through relationships of mutual trust, transparency and respect, built on strong and solid foundations.
In essence, prop trading firms offer a unique model characterized by operational efficiency, reduced risk for traders, and a lighter regulatory burden compared to traditional financial institutions. However, as the industry continues to grow and attract greater attention, adapting to evolving regulations and maintaining trust with traders will be critical for long-term success. As challenging as this may sound, the outlook for prop trading in the UK remains positive as proven by the increased interest of the British for the exciting opportunities it offers them.
Numbers don’t lie – stats on the prevalence of the UK in prop trading
According to recently released data for various countries in March 2024, the UK ranked an impressive third in online search queries for “prop firms”, only trailing behind the USA and India and tying with Italy. This level of search volume signifies that the UK is currently one of the leading countries in terms of interest in prop firms, with UK demand for prop trading services representing a significant proportion of the global demand.
The ongoing demand and curiosity of UK based traders about prop firms is further illustrated by the data on the ratio of Prop Firm searches to the population by country, where the UK has a high search intensity per million people, second only to Italy. This high ratio demonstrates that, despite having fewer overall searches than larger countries like the U.S., the UK has a very high level of interest relative to its population size. This suggests that prop trading is a key area of focus among a notable portion of the UK population.
The data on interest about prop firms relative to income, reveals an even more interesting picture about how prop trading is viewed in the UK. According to the relevant results, the UK has a low ratio of searches to income, with 0.07 searches per average annual income of $49,240.
This suggests that interest in prop trading in the UK is likely not driven by financial necessity or economic pressures, as is the case in countries like India, which records a much higher ratio. Instead, the UK’s high interest in prop trading may be driven by professional or institutional engagement with the financial sector, where prop trading is seen as a legitimate investment strategy or career opportunity for many UK residents.
In summary, interest in prop trading in the UK is substantial and driven largely by the financial sector, suggesting that prop trading is already viewed as a valuable part of the professional trading and investment landscape. This interest is less a result of financial necessity and more tied to the opportunities provided by a sophisticated financial environment and as a result it is expected to continue as prop trading further consolidates its presence.
Top Prop Trading Firms with GBP Accounts
Several leading prop trading firms in the UK offer their trader-clients GBP-denominated accounts. While the majority of proprietary trading firms typically operate using the U.S. dollar as their primary currency, some firms—such as FTMO, FTUK, and The 5ers—allow traders to hold their account balances in British pounds and execute trades in this currency.
Given that the GBP is a major global currency and part of the most popularly traded currency pairs, many prop trading firms that provide multi-currency accounts include the British pound as an option for their clients. This feature can be particularly useful and convenient for UK-based traders looking to avoid currency conversion fees and align their trading with their local currency.
Prop Trading Firms Accessible to UK Traders
Most top-rated prop trading firms globally, do extend their services to the UK market as well, thus giving traders based in the United Kingdom access to a variety of firms and platforms to choose from for their prop trading endeavors. Some of the most highly regarded prop trading firms available to UK traders, as carefully vetted and recommended by our team of resident experts, include:
The Best Prop Trading Firms in 2025
Rating breakdown
Things we liked:
Exclusive Discount Code (20% Off Exclusive Offer)Unlimited time for completion
Real Funding and Daily Payouts
Things we didn't like:
High challenge difficulty
Rating breakdown
Things we liked:
Unlimited evaluation free retries (Exclusive Refund Code 120%)No restrictions on trading style
Overnight and weekend holding allowed
A large variety of trading instruments
Things we didn't like:
Consistency rule for express accountsNo free trials available
Minimum 5 trading days
Rating breakdown
Things we liked:
Exclusive Discount Code (10% Off Exclusive Offer)No Trading Restrictions
MetaTrader4, MetaTrader5
Things we didn't like:
Minimum Trading DaysTrailing Drawdown
| Prop Firm | Prop firms that allow clients from united kingdom |
|---|---|
| FunderPro | |
| FundedNext | |
| FXIFY | |
| Funding Pips | |
| FTMO | |
| Apex Trader Funding | |
| the5ers | |
| SabioTrade | |
| UltraCap Trading | |
| MyFundedFX | |
| BlueBerry Funded | |
| OspreyFX | |
| Topstep | |
| Blue Guardian | |
| Funded Trading Plus | |
| Earn2Trade | |
| City Traders Imperium | |
| E8 Markets | |
| Lux Trading Firm | |
| Goat Funded Trader | |
| The Trading Pit |
| Prop Firm | Prop firms that restrict clients from united kingdom |
|---|---|
| Toptier Trader |
These firms stand out, inter-alia, due to their robust trading platforms, competitive trading conditions and support for GBP-denominated accounts.
The Regulatory Landscape for Prop Trading in the UK
As already mentioned, the FCA is the main regulatory body for financial markets in the UK. However, prop trading firms face minimal FCA regulation compared to brokers, who must navigate an extensive licensing process. This makes establishing a prop trading firm in the UK relatively straightforward.
Nevertheless, and despite the formal lack of strict regulations, some leading prop firms have proactively already proceeded in the implementation of additional security measures, such as obtaining licenses to bolster their legitimacy and build trust with clients. Such prop firms that tangibly prove their commitment towards transparency and legitimacy, offer UK based prop traders the confidence to trade in a secure environment, despite the current absence of a clear and legally binding regulatory framework.
While discussions about regulating the prop trading market have been ongoing, no formal steps have been taken in the UK to date towards this direction. This means that currently proprietary trading is one of the least regulated financial markets, a reality that creates both opportunities and challenges. The absence of heavy regulation offers freedom and flexibility but also raises concerns about safety and potential misconduct, rendering the wise choice of the proper prop firm to trade through an absolute must for interested UK based prop traders.
