Trading EURGBP

EURGBP trading involves speculating on the exchange rate between the British pound and Euro, which is an extremely popular foreign exchange market. The pair demonstrates high levels of liquidity, relatively low volatility and tight spreads, helping make EURGBP trading the currency pair with the fourth-largest trade volume globally. This article discusses the history of the two currencies, the main impacting factors and some of the top brokers.

EUR/GBP Trading Brokers

  1. FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
  2. Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
  3. NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
  4. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  5. IG - IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.

Trading EURGBP Comparison

Trading EURGBP Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator Visit
FOREX.com logo
80+ 1.2
$100 NFA, CFTC Visit
Interactive Brokers logo
100+ 0.08-0.20 bps x trade value
$0 FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB Visit
NinjaTrader logo
50+ 1.3
$0 NFA, CFTC Visit
OANDA US logo
65+ 1.6
$0 NFA, CFTC Visit
IG logo
80+ 0.8
$0 FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA Visit
Videforex logo
35 Floating from 0.1 pips
$250 - Visit
Plus500 US logo
13 0.75
$100 CFTC, NFA Visit
DNA Markets logo
40+ 1.0
$100 ASIC Visit
CloseOption logo
20+ No fee - payouts approx. 80% (Copper) - $5 National Bank of Georgia Visit
Coinexx logo
60+ From 0.0 pips - 0.001 BTC - Visit
Axofa logo
10+ From 1.6 pips - $1 SVGFSA Visit
World Forex logo
53 From 0.6 - $1 SVGFSA Visit
IQCent logo
49 0.3
$250 IFMRRC Visit
RaceOption logo
25+ Floating - $250 - Visit
Binarium logo
20 N/A - $5 - Visit

#1 - FOREX.com

Why We Chose FOREX.com

FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

- DayTrading Review Team
  • GBPUSD Spread: 1.3
  • EURUSD Spread: 1.2
  • EURGBP Spread: 1.4
  • Total Assets: 80+
  • Leverage: 1:50
  • Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral

About FOREX.com

Founded in 1999, FOREX.com is now part of StoneX, a financial services organization serving over one million customers worldwide. Regulated in the US, UK, EU, Australia and beyond, the broker offers thousands of markets, not just forex, and provides excellent pricing on cutting-edge platforms.

Pros

  • With over 20 years of experience, excellent regulatory oversight, and multiple accolades including runner-up in our 'Best Forex Broker' awards, FOREX.com boasts a global reputation as a trusted brokerage.
  • The in-house Web Trader continues to shine as one of the best-designed platforms for aspiring day traders with a slick design and over 80 technical indicators for market analysis.
  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.

Cons

  • FOREX.com's MT4 platform offers approximately 600 instruments, significantly fewer than the over 5,500 available on its non-MetaTrader platforms.
  • Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.

#2 - Interactive Brokers

Why We Chose Interactive Brokers

IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • GBPUSD Spread: 0.08-0.20 bps x trade value
  • EURUSD Spread: 0.08-0.20 bps x trade value
  • EURGBP Spread: 0.08-0.20 bps x trade value
  • Total Assets: 100+
  • Leverage: 1:50
  • Platforms: Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral

About Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

Pros

  • With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders, plus you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.

Cons

  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.

#3 - NinjaTrader

Why We Chose NinjaTrader

NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

- DayTrading Review Team
  • GBPUSD Spread: 1.6
  • EURUSD Spread: 1.3
  • EURGBP Spread: 1.6
  • Total Assets: 50+
  • Leverage: 1:50
  • Platforms: NinjaTrader Desktop, Web & Mobile, eSignal

About NinjaTrader

NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.

Pros

  • Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
  • NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
  • NinjaTrader continues to deliver comprehensive charting software for active day traders with bespoke technical indicators and widgets

Cons

  • The premium platform tools come with an extra charge
  • There is a withdrawal fee on some funding methods
  • Non forex and futures trading requires signing up with partner brokers

#4 - OANDA US

Why We Chose OANDA US

OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • GBPUSD Spread: 3.4
  • EURUSD Spread: 1.6
  • EURGBP Spread: 1.7
  • Total Assets: 65+
  • Leverage: 1:50
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist

About OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

Pros

  • There's a strong selection of 68 currency pairs for dedicated short-term forex traders
  • OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC
  • The broker offers a transparent pricing structure with no hidden charges

Cons

  • The range of day trading markets is limited to forex and cryptos only
  • It's a shame that customer support is not available on weekends
  • There's only a small range of payment methods available, with no e-wallets supported

#5 - IG

Why We Chose IG

IG offers an above-average suite of 80+ currency pairs on its proprietary web platform, mobile app or MetaTrader 4, with more advanced charts and forex analysis tools available on the ProRealTime software. Forex spreads are competitive based on tests, starting from 0.1 pips on majors like the EUR/USD.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • GBPUSD Spread: 0.9
  • EURUSD Spread: 0.8
  • EURGBP Spread: 0.9
  • Total Assets: 80+
  • Leverage: 1:30 (Retail), 1:250 (Pro)
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral

About IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

Pros

  • IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities
  • As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust

Cons

  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
  • IG has discontinued its swap-free account, reducing its appeal to Islamic traders

GBP/EUR Exchange Rate History

Whilst the British Pound is one of the oldest established currencies in existence, with a history beginning around 775 AD, the Euro only came into existence at the turn of the 21st Century, in 1999. Ever since, the GBP/EUR historical exchange rate has fluctuated along with major political and economic events.

Despite the pound’s initial high of €1.752, the 2008 Financial Crisis caused its value to plummet to its all-time low of €1.02. A period of relative stability followed, periodically interrupted by the fallout of the Eurozone debt issues, before the Brexit Referendum result of 2016 caused the value of the Pound to tumble, including a single-day fall of 6%. EURGBP trading has since suffered volatility in line with Brexit negotiation developments and the global disruption of Covid-19. Yet, GBP/EUR remains a relatively stable currency pair compared to many other minor forex pairs and therefore with more manageable risks.

EURGBP Live Forex Chart

Why Trade GBP/EUR?

The EURGBP trading relationship exists between two of the largest economies in the world – the United Kingdom (UK) and the European Union (EU). In fact, the GBP/EUR forex pair is among the four most commonly traded currencies worldwide. This high trade volume, allied with the asset’s high liquidity, means that trades have tight spreads – the difference between the bid price and ask prices – with minimal slippage.

Moreover, GBP/EUR is one of the most well-known cross-currency pairs. This means that the currencies are traded directly, without the need to be traded into US dollars (USD) in the interim. Not only does this prevent the spread risk of multiple transactions, but it protects trades against any volatility with the US dollar.

GBPEUR Trading Example

Every EURGBP trading session will have an opening exchange rate, for example, 1.4570. If a trader anticipates a favourable price fluctuation, such as a strengthening of the pound against the euro, they would exchange some EUR for GBP. The gain or loss at the close of the trade is determined by pip (point in percentage) point movements. A pip point usually refers to the fourth figure after the decimal point, although it can vary by currency. The value of pip point movements is usually calculated using the following formula:

(pip size / exchange rate) x position size

So, if we consider our EURGBP trading position with a market price of 1.4570 and a position size of £20,000, we can calculate our pip point movement value: (0.0001 / 1.4570) x 20,000 = £1.3727. This means that with each pip of movement, your trade would gain or lose £1.3727.

Let’s consider the following hypothetical scenarios:

Forex currency pairings are frequently traded on margin, large quantities of currency can be traded so the potential to make large profits or losses is significant.

What Factors Affect The GBP/EUR Exchange Rate?

The EURGBP trading pair is a relatively stable one, with fluctuations in exchange rates likely to be small. However, like all currency pairs, there are a variety of economic and political factors that affect the exchange rate:

Economic Announcements

Monetary policy updates – the setting of interest rates, inflation management and money supply – typically have a short-term influence on the EURGBP trading exchange rate. The monetary policies of the pound and euro are governed by the Bank of England (BoE) and European Central Bank (ECB), respectively. Both institutions periodically release reports and deliver timetabled announcements so that traders can pre-emptively speculate on the currency’s pair’s price direction following these news releases.

Political Events

The 2016 Brexit vote and the subsequent trade and exit negotiations have caused increased volatility in GBP/EUR forex markets in recent years. However, that can also present opportunities for quick thinking day traders. Major political events such as elections, trade announcements or, more recently, Covid-19 policies can all affect GBP/EUR forex rates.

Correlated Currency Pairs

Other currency pairs, for example, GBP/USD, can be positively correlated (they move in the same direction) or negatively correlated (they move in the opposite direction) with GBP/EUR price changes. Therefore, traders can often observe trends and movements in the markets of correlated currency pairs to give them an indication of EURGBP trading price movements. Many traders also use correlated currency pairs as a hedging strategy.

When To Trade GBP/EUR

Although GBP/EUR can technically be traded 24/5, it is not advisable to do so. For forex trading to be effective, the market requires activity and liquidity – put simply, the market needs to be busy. Peak trading for the GBP/EUR pair centres around the European trading session, which takes place from 07:00 – 16:00 (GMT).

Final Word On EURGBP Trading

EURGBP trading is the fourth most popular forex instrument in the world, for good reason. High levels of liquidity result in tight spreads, which, combined with manageable volatility, makes GBP/EUR an attractive currency pairing. Moreover, its close correlation with other major currency pairs allows for effective hedging strategies to be employed.

However, traders must analyse GBP/EUR market trends using exchange rate charts and projections like TradingView, as well as paying close attention to scheduled and unexpected economic and political events when making trading decisions. With forex trading, it is as much about when you trade as what you trade, so keep within European trading session hours for the best GBP/EUR spreads.

Brexit may have strained the relationship between the UK and Europe, but the EURGBP trading relationship remains strong.

FAQs

Which Factors Affect the GBP/EUR Exchange Rate?

There is a multitude of factors that affect forex pair exchange rates. However, the common ones to be aware of as a day trader are economic announcements, such as interest rate changes or GDP figures, and political events, such as post-Brexit trade deals. Early trends of correlated currency pairs such as GBP/USD can also affect exchange rates.

When is the best time to trade EUR/GBP?

Typically, European trading hours (07:00 – 16:00 GMT) are the best time for EURGBP trading. The high trade volume provides liquidity to the market, helping to reduce spread size. EURGBP trading outside these hours usually carries higher volatility with wider spreads, so these periods can put your capital at greater risk.

What is the best EURGBP trading strategy?

There are many strategies employed by GBP/EUR forex traders, such as swing trading, scalping, hedging or using expert advisors. Strategies will differ for each trader’s needs – scalping is better suited for regular traders whereas swing trading is better as a medium-term strategy – and traders should consider that not all brokers allow every strategy. So, check before signing up or committing any capital.

Which Forex Broker Should I Use For EURGBP Trading?

Traders looking to open a trading account with a forex broker should check out our review of the top 10 brokers. However, when evaluating potential brokers, you may want to look for leveraged trading, user-friendly analysis tools and tight trading spreads.

What Is A Pip?

Pip stands for ‘point in percentage’ and refers to the smallest price movement of an exchange rate. With most currencies, this tends to be the fourth decimal place. There are some exceptions though, such as the Japanese Yen (JPY), for which a pip is the second decimal place. Movements in pip points are used to calculate the gains/losses in a forex trade.