Crypto vs Forex, What's More Popular in the UK?

With over 160 forex brokers operating in the UK (United Kingdom), over 43% of all forex transactions globally take place in London (capital of the UK), and 6.2% of the UK population own cryptocurrency.

Thus, it is clear that the UK is at the top of the global foreign exchange and relatively new economic innovations such as cryptocurrencies. Let's take a look at crypto and forex in the UK to see which is more popular in the region.

We will provide general insight on how to choose the best forex and crypto brokers you can trade and invest in the UK.

Also read: The difference between Forex and Crypto, See the Explanation!

Forex Trading in UK

In the UK, forex trading and the leading forex broker 100% are legal and regulated by the Financial Conduct Authority (FCA). FCA serves as watchdog of the forex industry to protect investors from fraud and ensure forex brokers compete fairly with customers.

Before you start trading with a forex broker in the UK, make sure they are regulated and verified by the FCA.

To do this verification, search the Financial Services Conduct Authority website for forex companies, brokers and their activities that are permitted in the UK.

It's important to note that even if you trade with a verified forex broker, that doesn't mean they can't screw up. Meaning, if they do, the legal and regulatory bodies (FCA) will help you.

Most forex brokers in the UK also allow you to trade other financial instruments such as cryptocurrencies, stocks, commodities, ETFs and indices. Most of the time, the base currency for trading accounts offered by UK forex brokers is the Great British Pound.

You also get access to trade against a variety of currencies, including US Dollars (GBPUSD), New Zealand Dollars (GBPNZD), Japanese Yen (GBPJPY), Euros (EURGBP), Swiss Francs (GBPCHF), Canadian Dollars (GBPCAD), Australian Dollars (GBPAUD), and Gold (XAUGBP).

When analyzing brokers to choose best forex trading platform UK, it is important to pay attention to commissions, swaps, maximum leverage, minimum deposits, spreads, and deposit and withdrawal options.

Also read: Forex Trading Tricks, Try Now!

Cryptocurrencies in the UK

Cryptocurrency adoption in the UK is one of the highest among western countries. Additionally, crypto exchanges such as Coinbase, CoinJar, eToro, Pepperstone, Crypto.com, Binance, and Gate.io, operate under the regulation of the Financial Conduct Authority (FCA).

In order to work in the UK, crypto exchanges must register with the FCA or, on the other hand, apply for an e-money license. Also, bitcoin ATMs are legal in the UK as long as they are under the regulatory authority of the FCA. Currently, the UK has the most ATMs in Europe, with over 250 bitcoin ATMs spread across the country.

In April 2021, Rishi Sunak (former Finance Minister and now UK Prime Minister), gave directives to deliver, “A new task force between the Treasury and the Bank of England to coordinate exploratory work on potential central bank currencies (CBDC),” became known unofficially as “Britcoin” to solve some of the current challenges caused by cryptocurrencies like Bitcoin and Ethereum.

Most trading brokers in the UK let you invest and trade in cryptocurrencies including popular ones like Bitcoin, Ethereum, Ripple, XRY and Shiba, among many others.

You also need to consider the very volatile nature of the cryptocurrency market before trading. Trading financial instruments is risky, so you may need some training before trading or investing.

Many UK crypto and forex brokers provide excellent, in-depth free training guides for new traders. It is also advisable to look very carefully at crypto exchanges to understand which ones allow access to the best markets and crypto tokens. You should also check transaction fees, crypto platform security, deposit fees and withdrawal options.

Also read: What Is Crypto? This Definition and History

Crypto vs Forex in the UK

Cryptocurrency is relatively new, therefore less popular than trading forex in the UK. The rise of digital currencies led by bitcoin will continue to increase, and in the future, cryptocurrencies could challenge and take over forex trading globally and in the UK.

Cryptocurrency adoption in the UK currently stands at 4.2 million (6.2 per cent of the UK population), and 79% UK adults have heard of cryptocurrency in 2021, according to a survey by Triple-A.

In addition, many UK residents, especially young people, see cryptocurrencies as a preferred hedge of monetary value – using a pegged coin such as USDT, as opposed to the US Dollar or UK pound sterling.

Despite the increasing adoption of cryptocurrencies, the forex market has been around for a while and is not as stable as it is cryptocurrencies.

Also read: Crypto Trading Tips You Should Know

Conclusion

Trading and investing with crypto and forex brokers in the UK is possible and legal, and the popularity of both markets is increasing. For now, the forex market is more popular.

However, the increased adoption of cryptocurrencies in the coming years could lead to their overtaken popularity in the UK.