When choosing the best broker for you, it is recommended that you check whether the brokers are safe, their trust scores, and what they offer. Brokers should obtain the Financial Conduct Authority (FCA) approval before accepting UK customers.
FCA is the financial regulating agency in the UK. This is one of the most important criteria to find safe alternatives when starting Forex and CFD trading. In the next step, you can consider the Trust Scores of these brokers. Then you choose the best alternative for your needs. Thus, you will reduce the options logically.
Other benchmarks for online brokers are fair fees, product range, practical use, and the quality of the platform. Accordingly, we can get the following alternatives among the best online brokers for 2020, all of them have been serving for a long time:
Interactive Brokers is a US-based global broker and has been operating since 1978. You can trade with many assets thanks to its wide product range. Research tools have evolved over other alternatives. However, in the process of opening an account and withdrawing money, the desktop trading platform is impractical.
Safety: The broker is regulated by many authorities. Among them are high trust-level financial regulating authorities. Example; Financial Conduct Authority (FCA) and the Securities and Exchange Commission (SEC). Apart from these, the broker is listed on an exchange, its financial statements are publicly available. For this reason, it is among the trusted brokers.
Fees: Often offers low fees. While trading fees are low, for the UK, inactivity fees are high. Stock and ETF fees, financing rate is low. Therefore, it is a good alternative for beginners.
Accounts: The broker offers different account alternatives based on currency options. There are no deposit fees for customers, and you can withdraw for free once a month. Many account types do not pay minimum deposits. Also, the broker only accepts bank transfer, you cannot pay by credit card or anything else.
Product Range: As Interactive Brokers customer, you can trade with stock, ETF, Cryptos, CFD, features, forex, funds, bond, options. The broker gives you great advantages in its product range.
Saxo Bank is a Danish-based global bank and has been operating since 1992. Saxo’s web trading platform is user-friendly, its product range is broad and research materials have evolved. In contrast, minimum deposit, bond, options, and futures fees are high.
You cannot make trading over Saxo Bank 24/7. The highlight of this broker is that the web trading platform is practical and easy. Users also get efficiency from mobile and desktop platforms.
Safety: Saxo Bank is regulated by some high-trust authorities. Example; Financial Conduct Authority (FCA) and the Danish Financial Services Agency (FSA). The broker also has a banking license. Therefore, it is among the reliable alternatives.
Fees: The broker charges different level fees for different product groups. High fees for futures, bonds, and options when trading with this broker; you pay low fees for mutual funds, stock index CFDs, and forex. But stock CFDs, ETFs, and real stock fees are average.
Conversely, if you have a Platinum or VIP account, these fees will generally be lower. Also, there are inactivity fees for all customers. In addition, the broker does not take fees for deposits and withdrawals. You can make your payments by debit or credit card.
Product Range: You can trade with stock, ETF, Forex, fund, bond, options, futures, CFD, cryptos using Saxo Bank for your trading. This is a really good range of products. But you may notice some shortcomings in the area of mutual funds and crypto.
Charles Schwab is a US-based broker and has been operating since 1971. It is safe, has well-researching tools with low fees. It offers a practical, user-friendly process for most processes. But the education platform is not included in it. In addition, customer service works better than other alternatives.
Safety: The broker is regulated by the Financial Conduct Authority (FCA), Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), which is one of the top regulatory authorities. It is also listed on the New York Stock Exchange. Considering that it has been operating for many years, it can be said that Charles Schwab is one of the safest alternatives.
Fees: Charles Schwab is variable on fees. The broker does not charge fees for customers’ ETF and stock trading. This includes some mutual funds and bonds, but some mutual funs are high. Still, the level of non-trading fees is low.
In addition, the minimum deposit is high for new members, not including US customers. The broker does not charge deposit fees from customers, but it charges high fees for transfer withdrawals. Also, like many alternatives, it does not allow credit card transactions.
Product Range: In your trading through Charles Schwab, assets are based on the US market only. You can still trade with many assets, but if you need broader options, this company is not for you. Assets you can trade; stock, ETF, fund, bond, options, futures. In contrast, the company does not offer CFDs, crypto, and Forex trading services.