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
- 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.
- Vantage - Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
- IC Markets - IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
- AvaTrade - AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
- 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.
Trading EURGBP Comparison
| Broker | Forex Assets | EUR/USD Spread | Forex App Rating | Minimum Deposit | Regulator | Visit |
|---|---|---|---|---|---|---|
|
65+ | 1.6 | 4 / 5 |
$0 | NFA, CFTC | Visit |
|
55+ | 0.0 | 4 / 5 |
$50 | FCA, ASIC, FSCA, VFSC | Visit |
|
75 | 0.02 | 4.8 / 5 |
$200 | ASIC, CySEC, FSA | Visit |
|
50+ | 0.9 | 4.3 / 5 |
- | ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM | Visit |
|
80+ | 1.2 | 4.9 / 5 |
$100 | NFA, CFTC, CIRO, FCA, CYSEC, ASIC, SFC, FSA, MAS, CIMA | Visit |
|
100+ | 0.1 | 4.7 / 5 |
$0 | FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB | Visit |
|
55+ | 1.6 | 4.7 / 5 |
$5 | ASIC, CySEC, DFSA, FSC, FSCA | Visit |
|
50+ | 0.0 | 3.6 / 5 |
$100 | ASIC, FCA, xCySEC, SCB | Visit |
|
45+ | Variable | 3 / 5 |
$0 | - | Visit |
|
60+ | 14 pips | 4.5 / 5 |
$10 | - | Visit |
|
80+ | 0.8 | 4.9 / 5 |
$0 | FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA | Visit |
|
50+ | 1.2 | 4 / 5 |
$10 | FSC, FSA | Visit |
|
70+ | 1.58 pips (Ave) | 2.5 / 5 |
$100 | FCA, CySEC, FSCA, SCB, FSC | Visit |
|
70+ | 0.2 | 3.4 / 5 |
$0 | CySEC | Visit |
|
70+ | 1.0 | 4.8 / 5 |
$0 | FCA, CySEC, KNF, CNMV, DFSA, FSC | Visit |
#1 - 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
- Beginners can get started easily with $0 minimum initial deposit
- Day traders can enjoy fast and reliable order execution
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
Cons
- The range of day trading markets is limited to forex and cryptos only
- There's only a small range of payment methods available, with no e-wallets supported
- It's a shame that customer support is not available on weekends
#2 - Vantage
Why We Chose Vantage
Vantage offers 55+ currency pairs - above the industry average, so experienced traders can explore plenty of opportunities. Vantage's deep liquidity pool provides forex spreads from 0.0 pips in the ECN account, lower than many alternatives. There are also no commissions, deposit fees or hidden charges.
"Vantage remains an excellent option for CFD traders seeking a tightly-regulated broker with access to the reliable MetaTrader platforms. The fast sign-up process and $50 minimum deposit make it very straightforward to start day trading quickly."
- DayTrading Review Team
- GBPUSD Spread: 0.5
- EURUSD Spread: 0.0
- EURGBP Spread: 0.5
- Total Assets: 55+
- Leverage: 1:500
- Platforms: ProTrader, MT4, MT5, TradingView, DupliTrade
About Vantage
Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
Pros
- The ECN accounts are very competitive with spreads from 0.0 pips and a $1.50 commission per side
- There are no short-term strategy restrictions with hedging and scalping permitted
- Vantage caters to hands-off investors with beginner-friendly social trading via ZuluTrade & Myfxbook
Cons
- The average execution speeds of 100ms to 250ms are slower than alternatives based on tests
- A steep $10,000 deposit is needed for the best trading conditions, which include the $1.50 commission per side
- It's a shame that some clients will need to register with the offshore entity, which offers less regulatory protection
#3 - IC Markets
Why We Chose IC Markets
IC Markets maintains its commitment to providing exceptionally tight 0.0-pip forex spreads on major currency pairs such as EUR/USD. This makes it an excellent option if you are seeking superior execution, with an average of 35 milliseconds. Additionally, if you are a high-volume trader, you can benefit from rebates of up to $2.50 per forex lot.
"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."
- DayTrading Review Team
- GBPUSD Spread: 0.23
- EURUSD Spread: 0.02
- EURGBP Spread: 0.27
- Total Assets: 75
- Leverage: 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global)
- Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
About IC Markets
IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
Pros
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
- IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.
- You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
Cons
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
- The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
- While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
#4 - AvaTrade
Why We Chose AvaTrade
AvaTrade offers 50+ currency pairs with competitive spreads from 0.9 pips and zero commissions. You can trade majors, minors and exotics around the clock on industry-leading platforms, including MT4 and MT5. Traders can also access beginner-friendly trading tools and comprehensive forex education.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- GBPUSD Spread: 1.5
- EURUSD Spread: 0.9
- EURGBP Spread: 1.5
- Total Assets: 50+
- Leverage: 1:30 (Retail) 1:400 (Pro)
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
About AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
Pros
- The broker offers reliable 24/5 multilingual customer support with fast response times during testing
- WebTrader is well-suited to beginners and features a strong suite of technical analysis tools and market research for day traders
- The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
Cons
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
- There is no ECN account with raw spreads
- A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
#5 - 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: 1:200 (Retail), 1:500 (Pro)
- 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.
- There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.
- Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
Cons
- Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
- 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.
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:
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 reviews of the top forex trading platforms. 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.