| Updated: January 15, 2025If you are interested in learning more about EUR/GBP forex brokers, where traders can capitalize on the fluctuations between the European Union’s euro and the United Kingdom’s pound sterling, you are welcome to read on.
This publication explores the history and importance of the EUR/GBP pair, explains the trading process, and highlights the key factors that influence this currency pair. Additionally, it reviews the benefits and risks associated with trading EUR/GBP, providing valuable insights for both novice and experienced traders.
Below you can find a list with the best Forex brokers for EUR/GBP trading:
Top 7 EUR/GBP Forex Trading Brokers
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
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FP Markets
- Australia & CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading Instruments- Forex CFDs
- Shares CFDs
- Metals CFDs
- Commodities CFDs
- Indices CFDs
- Crypto CFDs
- ETF CFDs
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Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
-
Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading Instruments- CFDs on: Forex
- Crypto
- Indices
- Commodities
- Stocks
- Options
- ETFs
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BlackBull Markets
- Broker boasting lightning-fast execution speed
- ECN brokers with tight spreads from 0.0 pips
- $0 minimum deposit requirement
Trading Instruments- Forex
- Commodities
- Futures
- Indices
- Stocks
- Cryptocurrencies
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IC Markets
- Offers 2,200+ tradable markets, including 61 currency pairs
- Leverage of up to 1:1000 in select jurisdictions
- EUR/USD spreads from 0.8 pips for standard accounts
Trading Instruments- CFDs on Forex
- Commodities
- Index
- Bond
- Cryptocurrencies
- Stock
- Futures
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CMC Markets
- Provides a choice of 10,000+ trading instruments
- Supports MT4 and Next Generation (proprietary platform)
- Spreads for EUR/USD from 0.5 pips
Trading Instruments- CFDs on Forex
- Indices
- Shares
- Commodities
- Treasuries
- Cryptocurrencies
- Share Baskets
- Investments on ETFs
- Managed funds
- Options
- and more
Brokers Compared by Spread
| Brand | Commission per lot | |
|---|---|---|
| Fusion Markets | 0.93 avg (Classic) | $0 Classic Account, $4.50 round turn on Zero Account |
| FP Markets | 1.1 | $0 Standard Account; $6 round turn on Pro Account |
| Global Prime | 0.96 avg (Standard) | $0 Standard Accounts; $7 round turn on Raw Accounts |
| Plus500 | 1.2 | $0 |
| BlackBull Markets | 0.1 | $0 Standard; $6 per lot Prime; $4 per lot Institutional |
| IC Markets | 0.8 | $0 Standard MT; $6 round turn on Raw cTrader; $7 round turn on Raw MT |
| CMC Markets | 0.5 | $0.02 per share with a $10 minimum for US shares; 0.10% for other shares with a €/£9 minimum |
FX Brokers Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| Global Prime | |
$0 |
| Plus500 |  |
$100 |
| BlackBull Markets | |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
| IC Markets | |
$200 |
| CMC Markets | |
$0 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:30 (1:500 for forex and metals via VFSC) |
| FP Markets | |
1:30 |
| Global Prime | |
1:500 (1:30 for ASIC entity) |
| Plus500 | |
1:30 |
| BlackBull Markets | |
1:500 |
| IC Markets | |
1:30 |
| CMC Markets | |
1:30 |
Forex Brokers Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
80+ |
| FP Markets | |
70+ |
| Global Prime | |
56 |
| Plus500 | |
60+ |
| BlackBull Markets | |
70+ |
| IC Markets | |
61 |
| CMC Markets | |
330+ |
Comprehensive Comparison of the Best EUR/GBP Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
0.93 avg (Classic) |
|
|
 |
$50 (AU$100) |
|
1.1 |
|
|
 |
$0 |
|
0.96 avg (Standard) |
|
|
 |
$100 |
|
1.2 | ||
 |
$0 (Standard)$2,000 (Prime)$20,000 (Institutional) |
|
0.1 |
|
|
 |
$200 |
|
0.8 |
|
|
 |
$0 |
|
0.5 |
|
The EUR/GBP Pair – History and Importance
The EUR/GBP pair is a significant currency pair that represents the exchange rate between the European Union’s euro and the United Kingdom’s pound sterling. To understand the importance of this pair, it is essential to delve into the history of both currencies.
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A Brief History of the British Pound
The British pound has a rich and long history, dating back to 760 when it was first used as a form of money. In 1707, the pound was established as the official currency of the United Kingdom. Initially, banknotes were handwritten by the Bank of England until 1855, when they became printed. The pound’s influence extended beyond the UK, as it was used in British colonies such as Australia, New Zealand, and Canada. It was also tied to the gold standard before World War I, which determined its value.
Throughout its history, the pound has undergone significant changes. During World War I, the UK abandoned the gold standard, and the pound’s value was allowed to float. After the war, the gold standard was reinstated in 1925, but it was abandoned again during the Great Depression. In 1971, the pound was allowed to float freely, and its value was determined by market forces. Despite the introduction of the euro in 1999, the UK retained the pound as its official currency.
The pound’s value has been affected by various events, including the 2016 Brexit referendum, which led to a significant decline in its value. Since then, the pound’s value has fluctuated in response to trade negotiations and economic uncertainties.
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A Brief History of the Euro
In contrast, the euro has a relatively short history, dating back to 1999 when it was introduced as the official currency of the European Union. However, proposals for a European Union-wide currency have been subject to discussions since the 1960s. The transition from national currencies to the euro was relatively smooth, and the currency’s value rose until the financial crisis of 2007-2009.
The euro’s value was affected by the recession and the European Central Bank’s (ECB) 2015 Quantitative Easing program. However, the euro has continued to expand its reach and is now used in 20 out of 27 EU countries, solidifying its significance in the global economy.
Why Is the EUR/GBP Pair Important?
The EUR/GBP pair holds significant importance for two primary reasons. Firstly, it is a pivotal currency pair within the foreign exchange market, ranking as the third most-traded pair after EUR/USD and USD/JPY. This prominence underscores its influence and activity within global currency trading.
Secondly, the EUR/GBP pair serves as a symbolic representation of the economic ties between two major players – the United Kingdom and Germany. As the UK and Germany are among the largest economies in Europe, their relationship carries substantial weight, impacting not only their respective currencies but also broader economic trends within the region.
Fluctuations in the EUR/GBP exchange rate can reflect shifts in the economic dynamics between these nations, providing valuable insights for investors, policymakers, and analysts navigating the intricacies of the European financial landscape. The EUR/GBP pair is also closely watched by traders, as it can be affected by various economic indicators, such as interest rates, inflation, and trade agreements.
In addition, the EUR/GBP pair is important because it can be used as a hedge against other currency pairs. For example, traders may use the EUR/GBP pair to hedge against the EUR/USD pair, as the two pairs are closely correlated. This can help traders to manage their risk exposure and potentially increase their profits.
EUR/GBP Pair Trading Explained
In the EUR/GBP pair, referred to as a “cross pair”, the EUR is the base currency and the GBP is the quote currency. Trading this pair involves buying or selling the euro against the pound sterling. Traders can use various trading strategies, including technical analysis, fundamental analysis, and sentiment analysis, to predict the direction of the pair’s movement. The goal is to buy the pair when the euro is expected to appreciate against the pound and sell when the euro is expected to depreciate.
The EUR/GBP pair is typically traded using leverage, which allows traders to control a larger position with a smaller amount of capital. This can amplify potential profits, but it also increases the risk of significant losses. Traders must carefully manage their risk exposure and use proper risk management techniques to avoid substantial losses.
Example of Trading on the EUR/GBP
Suppose a trader believes that the euro will appreciate against the pound sterling due to a positive economic indicator from the EU. The trader decides to buy the EUR/GBP pair at a current price of 0.8500, with a leverage of 1:100. This means that the trader can control a position worth £10,000 with an initial capital of £100.
If the pair’s price moves to 0.8600, the trader can close the position and realize a profit of £100. However, if the pair’s price moves to 0.8400, the trader will incur a loss of £100. This example illustrates the potential for both profits and losses when trading the EUR/GBP pair.
Factors Affecting the EUR/GBP Pair
Several factors can influence the EUR/GBP pair’s movement, including:
- Interest Rates: Differences in interest rates between the EU and the UK can affect the pair’s movement. Higher interest rates in one region can attract investors, causing the currency to appreciate.
- Inflation: Inflation rates in the EU and the UK can also impact the pair’s movement. Higher inflation in one region can lead to a decrease in the currency’s value.
- Trade Agreements: Trade agreements between the EU and the UK, such as Brexit, can significantly impact the pair’s movement.
- Economic Indicators: Economic indicators, such as GDP growth, employment rates, and consumer price indexes, can influence the pair’s movement.
- Geopolitical Events: Geopolitical events, such as elections and political instability, can also affect the pair’s movement.
Traders must stay informed about these factors and adjust their trading strategies accordingly to capitalize on the EUR/GBP pair’s fluctuations.
Trading EUR/GBP with a Leverage
Trading the EUR/GBP pair with leverage can amplify potential profits, but it also increases the risk of significant losses. A leverage of 1:100, for example, means that a trader can control a position worth £10,000 with an initial capital of £100. While this can lead to substantial profits, it also means that a small movement in the pair’s price can result in significant losses, as indicated in the example above.
Traders must carefully manage their risk exposure when trading with leverage. This can involve setting stop-loss orders, limiting position sizes, and using proper risk management techniques. It is essential to understand the risks associated with trading with leverage and to use it responsibly.
Benefits and Risks Associated with Trading EUR/GBP Pair
Similar to trading any other financial instrument, trading the EUR/GBP pair offers benefits and hides some risks.
- Liquidity: The EUR/GBP pair is one of the most widely traded currency pairs, offering high liquidity and tight spreads.
- Volatility: The pair’s volatility provides opportunities for traders to capitalize on its fluctuations.
- Diversification: Trading the EUR/GBP pair can provide diversification benefits, as it is not highly correlated with other major currency pairs.
However, trading the EUR/GBP pair also involves significant risks, including:
- Leverage Risk: Trading with leverage can amplify potential losses, as well as profits.
- Market Volatility: The pair’s volatility can result in significant losses if traders are not properly prepared.
- Economic Uncertainty: Economic uncertainty, such as Brexit, can lead to significant fluctuations in the pair’s price.
Traders must carefully weigh the benefits and risks associated with trading the EUR/GBP pair and develop a trading strategy that suits their risk tolerance and investment goals.
FAQs
What is the EUR/GBP pair?
The EUR/GBP pair represents the exchange rate between the European Union’s euro and the United Kingdom’s pound sterling.
Why is the EUR/GBP pair important?
The EUR/GBP pair is important because it represents the exchange rate between two major currencies and is a significant indicator of the economic health and stability of the EU and the UK.
How do I trade the EUR/GBP pair?
Trading the EUR/GBP via contracts for difference is one of the most common ways to get exposure to this and other forex pairs. CFD trading enables traders to profit from price fluctuations without owning the underlying assets. They can apply various trading strategies, including technical analysis, fundamental analysis, and sentiment analysis.
How can I manage risk when trading the EUR/GBP pair?
Traders can manage risk by setting stop-loss orders, limiting position sizes, and using proper risk management techniques.
Can I trade the EUR/GBP pair with leverage?
Yes, traders can trade the EUR/GBP pair with leverage, but it is essential to carefully manage risk exposure and use proper risk management techniques. Besides, they must comply with the leverage limitations imposed by the financial regulatory body in their country. Under the regulations of financial authorities such as the UK’s Financial Conduct Authority, the Cyprus Securities and Exchange Commission, and Australia’s Securities and Investments Commission, retail traders can use a maximum leverage of 1:30 for major currency pairs, and 1:20 for minor currency pairs.
Conclusion
The EUR/GBP pair is a significant currency pair that offers opportunities for traders to capitalize on its fluctuations. Understanding the history and importance of the pair, as well as the factors that influence its movement, is essential for traders looking to succeed in the foreign exchange market. By carefully managing risk exposure and using proper risk management techniques, traders can navigate the benefits and risks associated with trading the EUR/GBP pair and achieve their investment goals.
Why You Should Trust RationalFX
When it comes to making informed decisions about forex brokers, it’s essential to rely on trustworthy sources. RationalFX, a company with over 17 years of experience since its founding in 2005, has established itself as a credible authority in the industry. With an impressive collection of over 2500 reviews on Trustpilot, boasting a score of 4.2, it’s clear that Rational FX has built a reputation for providing reliable and unbiased information.
What sets Rational FX apart is its rigorous evaluation process, which considers over 30 different criteria when selecting forex brokers. This comprehensive approach ensures that every aspect of a broker’s service is taken in consideration, including regulation, forex spreads, trading platforms, deposit methods, and reputation. With its wealth of experience, transparent review process, and outstanding customer feedback, Rational FX is a trusted source for anyone seeking reliable information on forex brokers. You can reach us via e-mail at [email protected] or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.