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 is a leading FX broker. The brand offers a huge range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.2 with a $5 commission per $100k.
Forex.com is excellent for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score.- DayTrading Review Team
- GBPUSD Spread: 1.0 Var
- EURUSD Spread: 0.8 Var
- EURGBP Spread: 0.8 Var
- Total Assets: 80+
- Leverage: 1:200
- Platforms: MT4, MT5, TradingView
Go long and short on a range of popular financial markets with intuitive platforms and reliable execution. 99.76% of trades are executed in less than a second with an average speed of 0.02 seconds.
Forex.com offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.
Trade major cryptos against USD, EUR, GBP and AUD. All traded with tight spreads. No virtual wallet is required, just a trading account. Cryptos are not available in the US, UK or Canada.
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they offer a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
- Free demo account for beginners
- Industry-leading pricing on popular forex assets
- Fast order execution speed
- $15 inactivity fee
- Tools and platform access varies between countries
- No copy trading tool
#2 - NinjaTrader
NinjaTrader supports the trading of popular currencies including the EUR/USD. The trading software also offers unique features tailored to forex trading, including specific order and market windows.
We recommend NinjaTrader for high-volume futures traders looking for low fees and premium analysis tools.- DayTrading Review Team
- GBPUSD Spread: 1.6 pips
- EURUSD Spread: 1.3 pips
- EURGBP Spread: 1.6 pips
- Total Assets: 50+
- Platforms: Own
Stocks can be traded by connecting the NinjaTrader platform to supporting brokers. You can then take positions on large public companies and household names via advanced trading software.
Trade micro Bitcoin futures with low fees and leading charting tools. Get exposure to Bitcoin through CME Group's centralized exchange with robust risk management tools.
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.
- Widely respected and heavily authorized by the NFA and CFTC
- Thousands of add-ons and applications from developers in 150+ countries
- Excellent trading software for active users with bespoke widgets and indicators
- Non forex and futures trading requires signing up with partner brokers
- Premium platform tools come with an extra charge
- Withdrawal fee on some funding methods
#3 - OANDA
OANDA offers over 70 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
We recommend OANDA for traders seeking a user-friendly platform with premium market research and a straightforward joining process. OANDA is a particularly good pick for US traders with authorization from local regulators and a secure trading environment.- DayTrading Review Team
- GBPUSD Spread: 3.4
- EURUSD Spread: 1.6
- EURGBP Spread: 1.7
- Total Assets: 70
- Leverage: 1:30 EU, 1:200 Global
- Platforms: MT4, TradingView
Over 1600 shares are available from leading stock exchanges. There are also no commissions on US stocks and traders benefit from free expert insights and market reports.
Speculate on the world's biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Users can also trade digital currencies in a few taps through the iOS and Android mobile app.
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 authorized by leading regulators, including the CFTC/NFA. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
- Feature-rich app with 50 indicators, 11 drawing tools and 9 charting styles
- US clients accepted
- Low minimum deposit for beginners
- Customer support not available on the weekend
- Stock trading not available in all countries
#4 - Webull
Webull offers a modest collection of 17 currencies, including majors like EUR/USD. Forex can be traded on the feature-rich investing app with real-time quotes and low spreads.
Webull is best for traders looking to buy and sell stocks on a user-friendly app with zero commissions.- DayTrading Review Team
- GBPUSD Spread: Variable
- EURUSD Spread: Variable
- EURGBP Spread: Variable
- Total Assets: 17
- Platforms: Own
Webull offers a fantastic list of 2000+ US stocks, fractional shares, options, ETFs, OTC, and ADRs. There is no commission on stocks, ETFs, and options. Full extended trading hours is available while custom screeners and watchlists aid the decision making process.
Webull offers trading on popular cryptos like Bitcoin against the US Dollar. With 35+ tokens and premium analysis tools, traders can review market trends and identify opportunities in a few taps.
Webull is a US-regulated trading app that offers stocks, options, forex, cryptos, ETFs, fractional shares and more. The firm is authorized by the SEC and FINRA with a strong trust rating. Low fees, no minimum investment and generous bonuses have made the discount broker popular with online investors.
- Fractional shares
- Easy-to-use investment platform and mobile app
- Promotions with free stocks
- Day trading is limited for customers with less than $25,000 deposited
- High deposit and withdrawal wire fees for non-US residents
- Sometimes sudden changes in trading conditions
#5 - IG Group
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 18,000+ markets and top-tier market research.- DayTrading Review Team
- GBPUSD Spread: from 0.589 pips
- EURUSD Spread: from 0.165 pips
- EURGBP Spread: from 0.540 pips
- Total Assets: 90+
- Leverage: 1:30
- Platforms: MT4
IG offers an impressive suite of 18,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
About IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
- Over 18,000 assets are available spanning stocks, forex, commodities, baskets, futures, options and more
- 24/5 customer support is available
- Opening an account takes less than 5 minutes
- Inactivity charge
- No copy trading platform
#6 - Videforex
Videforex offers leveraged trading on major, minor and exotic currency pairs.
- GBPUSD Spread: Floating from 0.1 pips
- EURUSD Spread: Floating from 0.1 pips
- EURGBP Spread: Floating from 0.1 pips
- Total Assets: 35
- Leverage: 1:500
- Platforms: TradingView
A suite of CFDs are available across popular markets with high leverage.
Videforex offers trading on major exchanges such as the FTSE.
Start trading on cryptos against fiat currencies and other alt coins.
Videforex accepts deposits in a range of cryptos and fiat currencies. Payouts reach 98% per trade.
- Full range of investments
- Copy trading
- Demo account
- Weak regulatory oversight
- No MT4 integration
#7 - CloseOption
Trade binaries on popular currency pairs including EUR/USD.
- GBPUSD Spread: No fee - payouts approx. 75% (Copper)
- EURUSD Spread: No fee - payouts approx. 76% (Copper)
- EURGBP Spread: No fee - payouts approx. 75% (Copper)
- Total Assets: 20+
- Platforms: Own
Trade high/low binaries on major crypto-fiat currency pairs.
CloseOption is a popular binary options broker with high payouts and joining bonuses.
- Multiple payment methods
- Low minimum deposit
- Demo account
- No MT4 integration
- No copy trading
- Narrow range of investments
#8 - Just2Trade
Speculate on key currency pairings, including with the USD
- GBPUSD Spread: From 0.0
- EURUSD Spread: From 0.0
- EURGBP Spread: From 0.0
- Total Assets: 50+
- Leverage: 1:5 to 1:20
- Platforms: MT4, MT5
Leveraged CFD trading is available on major financial markets
A wide array of equities spanning multiple industries
Cryptocurrency trading is only available to clients from Asia
Just2Trade offer high-tech trading on stocks and options with some of the lowest prices in the industry.
#9 - Sage FX
Sage FX offers trading on major and cross currency pairs.
- GBPUSD Spread: 0.9
- EURUSD Spread: 0.9
- EURGBP Spread: 2.5
- Total Assets: 28
- Leverage: 1:500
- Platforms: MT4
SageFX offers retail trading on financial markets with competitive spreads.
Sage FX offers retail trading on major stock indices from around the world.
Sage FX offers leveraged trading on crypto and USD pairs.
About Sage FX
Sage FX is an MT4 trading broker offering high leverage rates and secure mobile investing.
#10 - Kwakol Markets
Trade forex with ECN executions and tight spreads.
- GBPUSD Spread: From 0.8 pips (Standard Account)
- EURUSD Spread: From 0.8 pips (Standard Account)
- EURGBP Spread: From 0.8 pips (Standard Account)
- Total Assets: 100
- Leverage: 1:1000
- Platforms: MT4, MT5
Trade CFDs with high leverage and spreads from 0.0 pips on premium accounts.
Trade stocks with zero commissions and ultra-fast trade executions.
Trade cryptos against fiat currencies, other cryptocurrencies and metals like gold.
About Kwakol Markets
Kwakol offers trading on the MT4 & MT5 platforms with high leverage & copy trading.
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:
- At the trade close, the exchange value has moved to 1.4590 – an increase of 20 pips. To calculate the trades gain/loss, you need to multiply the pip movement by the pip value – in this case, 20 x £1.3727 = £27.45 gain.
- Unfortunately, the value has dropped to 1.4520 – a decrease of 50 pips. In this case, your loss would follow the same calculation, 50 x £1.3727 = £68.64.
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:
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.
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.
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.