Among the FCA-authorised brokers we checked, Pepperstone has the lowest overall trading costs for most active traders: raw spreads from 0.0 with £2.25 per lot per side on Razor, commission-free spread bets, and no deposit, inactivity or trade currency conversion fees. Capital.com is cheaper for one group, traders who want guaranteed stops, because Pepperstone does not offer them at any price.
Your questions, answered
Which broker has the best spreads overall in the UK?
Pepperstone has the best published spreads across asset classes among our picks: 0.0 on major FX and 0.08 on gold on Razor, 0.4 on the US 500 and 1 on the UK 100 as spread bets. Capital.com's indicative spread betting quotes are 0.6 on EUR/USD, 0.30 on gold and 1 on the UK 100. All are minimums, so compare live quotes at your trading time.
Is there a broker that offers both low spreads and strong FCA regulation?
Yes: Pepperstone combines raw spreads from 0.0 with FCA authorisation of its London firm, Pepperstone Limited (684312), client money segregated at tier-1 banks and FSCS cover up to £85,000. That pairing is the main reason it leads this page. Capital.com is also FCA-authorised (793714) with competitive, commission-free spreads.
Which broker is cheapest for trading forex, indices and commodities together?
For a mixed portfolio, a Pepperstone spread betting account is usually cheapest: no commission on any market, pounds per point so no currency conversion, and minimums of 0.5 on EUR/USD, 1 on the UK 100 and 0.1 on gold. A Razor CFD account is cheaper on FX if you trade large size, and the same as Standard on indices and most commodities.
Which brokers offer fixed spreads instead of variable spreads?
Neither of our picks offers fixed spreads: Pepperstone's spreads are variable and Capital.com's are dynamic, both moving with market liquidity. Capital.com sets some index spreads by time of day, which is close to a fixed schedule but not a guarantee. We did not verify any FCA firm's fixed-spread account, so check the terms carefully if you see one.
Which broker offers the best value for small account sizes?
Pepperstone is good value for small accounts: a £10 minimum by card, no inactivity fee and no commission on spread bets. Note that accounts holding less than 10 units of currency and inactive for three months can be archived, though not charged. Capital.com's minimum is 20 GBP, also with no account fees.
Which UK brokers have transparent pricing with no hidden costs?
Both picks publish their full fee schedules on their UK sites. Pepperstone lists spreads, commission by platform and currency, swap rates, its leverage table and its only non-trading fee (£15 for international wire withdrawals). Capital.com lists its spread, overnight, conversion and guaranteed stop fees, with worked examples for each.
Is commission based or spread only pricing better for active traders?
For active forex traders, commission pricing usually wins. In a USD account at Pepperstone, Razor costs $7 per lot round trip plus the raw spread, while Standard adds a 1-point mark-up, about $10 per lot, with no commission; so Razor saves around $3 a lot on the same raw spread. For occasional traders the difference is small and spread-only is simpler.
Which brokers reduce commission for high volume traders?
Retail commission at Pepperstone is fixed, but Pepperstone Pro pays daily or monthly rebates on forex, index and commodity trades and spread bets. Capital.com Pro rebates 5%, 10% or 20% of the spread on forex and precious metals as volume rises past $5m and $10m. Pro status requires meeting two of three FCA tests and removes negative balance protection.
What commission do raw spread accounts charge in the UK?
Pepperstone's Razor account charges, per lot per side on MT4 and MT5: £2.25 in a GBP account, €2.60 in EUR and $3.50 in USD. On cTrader it is $6 per lot round trip for FX and $7 for gold, and on TradingView $7 round trip. Trades below one lot are charged proportionally, with a small rounding rule at 0.01 lots.
How do brokers calculate overnight swap charges?
The usual formula is the benchmark interest rate of the market's currency, plus the broker's fee for a long position or minus it for a short, applied to the full position value. Capital.com's version is a 4% a year fee (0.01096% a day for GBP markets) plus or minus SONIA or SOFR. Pepperstone applies swaps after 5pm New York time and triples FX swaps on Wednesday night for the weekend.
Which UK brokers charge inactivity fees?
Pepperstone states it charges no inactivity or account-keeping fees, and would give advance notice if that changed. Capital.com's UK fees page lists no inactivity fee. Inactivity rules vary between firms, so check the fee page of any other broker where you keep a dormant account.
Which UK brokers charge no deposit or withdrawal fees?
Capital.com charges no deposit or withdrawal fees, with a minimum withdrawal of 20 GBP, EUR or USD. Pepperstone charges no deposit fees and no withdrawal fees except £15 for a bank wire to an international account. Your own bank may still charge for international transfers.
What is the total cost of a round turn trade at UK brokers?
A round turn is the open plus the close. On Pepperstone Razor in GBP, one lot of EUR/USD costs £4.50 commission plus the raw spread; on Standard, the 1.0 minimum spread is $10 with no commission; as a £10-per-point spread bet at 0.5, it costs £5. Add overnight funding if held past the cut-off.
Which broker has the tightest spreads during the London session?
Spreads on European pairs, the UK 100 and the Germany 40 are tightest while London and Frankfurt are open, which is when Pepperstone's published minimums apply: 0.0 on EUR/USD and GBP/USD on Razor, 1 on the UK 100 and 0.9 on the Germany 40. Neither broker publishes average spreads by session, so log a few live quotes yourself.
How much do spreads widen at UK brokers during news events?
Neither Pepperstone nor Capital.com publishes how far spreads widen during news, so any single figure would be a guess. Both say spreads vary with liquidity and can widen sharply around releases and at the daily rollover. Watch the live spread in a demo during a release such as US payrolls to see the pattern for yourself.
What are typical spreads on major currency pairs at UK brokers?
Pepperstone publishes minimum, not average, spreads: EUR/USD, GBP/USD, AUD/USD, USD/CAD, USD/CHF and USD/JPY all start at 0.0 on Razor and 1.0 on Standard; as spread bets they start at 0.5, 0.8, 0.6, 1, 1 and 0.7. Typical spreads are wider than these. Capital.com shows live spreads per market on its platform.
Which brokers offer rebates or cashback on trading volume?
At our two picks, volume rebates are for professional clients only. Capital.com Pro also pays a 2% annual rebate on equity not committed as margin, where the qualifying balance is at least £25,000, and both firms run referral rewards for professionals. Treat rebates as a discount on costs, never as a reason to trade more.
How do financing costs compare between spread betting and CFDs?
The funding principle is the same for both: a daily interest adjustment on the full position. At Pepperstone, the spread bet cut-off is 10pm UK time and the CFD cut-off 5pm New York time, which is normally the same moment, and forward contracts of either type carry no overnight charge. Capital.com's examples use the same formula for spread bets and CFDs.
Which broker is cheapest for holding positions long term?
For leveraged positions held for weeks, Pepperstone's forwards on indices, gold, silver and oil are often cheaper because there is no nightly funding. For unleveraged exposure, Capital.com's 1X account has no overnight funding on most markets. For years, buying the asset outright through a share dealing account or ISA usually beats any CFD.
What currency conversion fees do UK brokers charge?
Capital.com applies a 0.7% mark-up to the exchange rate when a profit, loss, funding charge or dividend is in a different currency from your account, and 0.5% for professionals. Pepperstone's UK fees page says it does not charge currency conversion fees on trades. Spread bets in pounds avoid conversion entirely.
What does a guaranteed stop loss cost at UK brokers?
At Capital.com, the fee is the guaranteed stop premium multiplied by the position's open price and quantity, charged only if the stop is triggered and shown on the deal ticket before you trade. IG also charges only if triggered. Pepperstone does not offer guaranteed stops, so there is no cost to compare there.
Which broker offers the lowest margin requirements in the UK?
For retail clients, no FCA broker can offer lower margins than the regulator allows: 3.33% on major FX, 5% on gold and major indices, 10% on other commodities and 20% on shares. Lower margins are only available to professional clients, such as up to 1:500 on major FX at Pepperstone and margins from 0.2% at Capital.com.
How do UK broker spreads compare on gold and oil?
At Pepperstone, spot gold starts at 0.08 on Razor (plus commission), 0.19 on Standard and 0.1 as a spread bet, and US crude at 2, 3 and 2.4. Capital.com's spread betting page gives gold from 0.30, and its oil spreads are shown live on the platform. On gold, Pepperstone's spread bet is the cheapest commission-free quote we found.
Published 2026-10-21. Informational only, not investment advice. CFDs are leveraged products and most retail accounts lose money.
Lowest all-in cost
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