| Updated: Interested in learning more about forex brokers that offer competitive conditions for speculating on movements in the euro’s value against the pound sterling? If so, you are on the right page. This article explores the history and importance of the EUR/GBP pair, explains the specifics of trading it and highlights the key factors that influence its price. We also outline the benefits and drawbacks of trading this pair and offer practical insights for both novice and experienced traders.
Expert opinion by Christopher Lewis:Below is a list of the best forex brokers for EUR/GBP trading:
Top 8 EUR/GBP Forex Trading Brokers
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Fusion Markets
- Australia regulated broker
- MT4, MT5, TradingView, Ctrader
- Leverage up to 500
Trading InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock CFDs
-
FP Markets
- Australia and CySEC regulated broker
- MT4/MT5, TradingView, Ctrader, Iress
- EUR/USD spread from 0.0 pips
Trading InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock CFDs
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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 InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock CFDs
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Blueberry Markets
- Well-known broker, established in Australia
- Low trading fees
- MT4, MT5, Mobile Trading Platform
Trading InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Forex CFDs
- Index CFDs
- Share CFDs
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Global Prime
- Australia regulated broker
- Advanced MT4
- $0 Minimum Account Size
Trading InstrumentsDeposit Methods- Commodity CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
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Plus500
- Multi-Level Regulated Broker
- Proprietary trading platforms
- Easy to use mobile app
Trading InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Energy CFDs
- ETF CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Share CFDs
- Stock CFDs
- US Stock CFDs
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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 InstrumentsDeposit Methods- Commodity CFDs
- Crypto CFDs
- Energy CFDs
- Forex CFDs
- Index CFDs
- Metal CFDs
- Stock CFDs
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ActivTrades
- Winner of 20+ Global Awards
- MT4/MT5, TradingView
- Leverage up to 1:400
Trading InstrumentsDeposit Methods- Bonds CFDs
- Commodity CFDs
- Crypto CFDs
- ETF CFDs
- Forex CFDs
- Index CFDs
- Share CFDs
Our 8-step guide to choosing a forex broker
- Verify regulation and authorisation (e.g., FCA, ASIC).
- Check trading costs: spreads, commissions, swaps.
- Compare execution quality: slippage, fills, order types.
- Check platforms and tools: MT4/MT5, cTrader, TradingView.
- Ensure risk controls: stop-loss, guaranteed stops, negative balance protection.
- Review funding and withdrawals: local options, fees, processing times.
- Evaluate research, education, and alerts.
- Prioritise security and support: segregated client funds, two-factor authentication, support hours.
Brokers Compared by Spread
FX Broker Deposit Method Comparison
| Brand | Minimum deposit | |
|---|---|---|
| Fusion Markets |  |
$0 |
| FP Markets | |
$50 (AU$100) |
| BlackBull Markets |  |
$0 (Standard)$0 (Prime)$20,000 (Institutional) |
| Blueberry Markets | |
$100 |
| Global Prime | |
$0 |
| Plus500 | |
$100 |
| IC Markets | |
$200 |
| ActivTrades | |
$0 |
Forex Brokers by Regulator
| Brand | Maximum leverage | |
|---|---|---|
| Fusion Markets | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC | Retail Account) |
| FP Markets | |
1:500 (CySEC | Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:500 (FSAS | Retail Account) |
| BlackBull Markets | |
1:500 (FMA), 1:500 (FSAS) |
| Blueberry Markets | |
1:30 (ASIC | Retail Account), 1:500 (FSCM), 1:500 (VFSC) |
| Global Prime | |
1:500 (ASIC | Pro Account), 1:30 (ASIC | Retail Account), 1:500 (VFSC) |
| Plus500 | |
1:300 (Pro Account), 1:30 (ASIC | Retail Account), 1:30 (CySEC | Retail Account), 1:30 (FCA | Retail Account), 1:30 (FMA | Retail Account), 1:30 (DFSA), 1:300 (FSAS), 1:20 (MAS), 1:300 (SCB) |
| IC Markets | |
1:500 (CySEC | Pro Account), 1:30 (CySEC | Retail Account), 1:1000 (FSAS | Retail Account) |
| ActivTrades | |
1:400 (CMVM | Pro Account), 1:30 (CMVM | Retail Account), 1:1000 (FSC), 1:200 (SCB) |
Forex Broker Platform Availability
| Brand | FX pairs to trade | |
|---|---|---|
| Fusion Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| FP Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| BlackBull Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Blueberry Markets | |
cTrader, MetaTrader 4, MetaTrader 5, TradingView |
| Global Prime | |
MetaTrader 4, MetaTrader 5 |
| Plus500 | |
Proprietary Mobile, Proprietary Web |
| IC Markets | |
cTrader, MetaTrader 4, MetaTrader 5 |
| ActivTrades | |
MetaTrader 4, MetaTrader 5, Proprietary Web, TradingView |
Comprehensive Comparison of the Best EUR/GBP Forex Brokers
| Brand | Min. Deposit | Trading Platforms | Spread | Regulation | Trustpilot |
|---|---|---|---|---|---|
 |
$0 |
|
AVG 0.91 pips |
|
|
 |
$50 (AU$100) |
|
AVG 1.29 pips |
|
|
 |
$0 (Standard)$0 (Prime)$20,000 (Institutional) |
|
AVG 0.1 pips |
|
|
 |
$100 |
|
AVG 1.1 pips |
|
|
 |
$0 |
|
AVG 1 pips |
|
|
 |
$100 |
|
AVG 0.8 pips |
|
|
 |
$200 |
|
AVG 0.82 pips |
|
|
 |
$0 |
|
AVG 0.5 pips |
|
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 helpful to examine the history of both currencies.
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A Brief History of the British Pound
The British pound has a long and rich 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, Bank of England banknotes were handwritten, but printing began in 1855. 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 helped determine 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, with its value 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 has fluctuated in response to trade negotiations and economic uncertainty.
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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 had been discussed 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 to 2009.
The euro’s value was affected by the recession and the European Central Bank’s (ECB) quantitative easing programme in 2015. However, the euro has continued to expand its reach and is now used in 20 of the 27 EU countries, reinforcing its significance in the global economy.
Why Is the EUR/GBP Pair Important?
The EUR/GBP pair is important 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 level of activity within global currency trading.
Secondly, the EUR/GBP pair represents the economic ties between two major markets: the United Kingdom and the European Union. The UK and EU countries, including Germany, are among Europe’s largest economies. Their economic relationships therefore carry substantial weight, affecting their respective currencies and broader regional trends.
Fluctuations in the EUR/GBP exchange rate can reflect shifts in the economic relationship between the UK and the EU, providing valuable insights for investors, policymakers and analysts navigating the European financial landscape. Traders also watch the EUR/GBP pair closely because various economic indicators, including interest rates, inflation and trade agreements, can affect it.
In addition, the EUR/GBP pair can be used as a hedge against exposure to other currency pairs. For example, traders may use EUR/GBP to hedge against EUR/USD exposure because the two pairs are closely correlated. This approach can help traders manage their risk exposure and potentially improve their returns.
EUR/GBP Pair Trading Explained
In the EUR/GBP pair, which is referred to as a “cross pair”, EUR is the base currency and GBP is the quote currency. Trading this pair involves buying or selling the euro against the pound sterling. Traders can use various strategies, including technical, fundamental 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 it 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 appropriate risk management techniques to avoid substantial losses.
Example of Trading EUR/GBP
Suppose a trader believes that the euro will appreciate against the pound sterling following a positive economic indicator from the EU. The trader decides to buy the EUR/GBP pair at a price of 0.8500 with leverage of 1:100. This means that the trader can control a position worth £10,000 with initial capital of £100.
If the pair’s price rises to 0.8600, the trader can close the position and realise a profit of £100. However, if the pair’s price falls 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 movements in the EUR/GBP pair, 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 its currency to appreciate.
- Inflation: Inflation rates in the EU and the UK can also affect the pair’s movement. Higher inflation in one region can lead to a decline in the value of its currency.
- Trade Agreements: Trade agreements between the EU and the UK, particularly those related to Brexit, can significantly affect the pair’s movement.
- Economic Indicators: Economic indicators such as GDP growth, employment rates and consumer price indices can influence the pair’s movement.
- Geopolitical Events: Geopolitical events, including elections and periods of political instability, can also affect the pair’s movement.
Traders must stay informed about these factors and adjust their strategies accordingly to respond to fluctuations in the EUR/GBP pair.
Trading EUR/GBP with Leverage
Trading the EUR/GBP pair with leverage can amplify potential profits, but it also increases the risk of significant losses. Leverage of 1:100, for example, means that a trader can control a position worth £10,000 with initial capital of £100. While this can lead to substantial profits, a small movement in the pair’s price can also result in significant losses, as illustrated 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 appropriate risk management techniques. It is essential to understand the risks associated with leverage and use it responsibly.
Benefits and Risks Associated with Trading the EUR/GBP Pair
As with any other financial instrument, trading the EUR/GBP pair offers potential benefits but also carries certain 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 capitalise on price 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 adequately prepared.
- Economic Uncertainty: Economic uncertainty, such as that associated with 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 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 can indicate the economic health and stability of the EU and the UK.
How do I trade the EUR/GBP pair?
Trading EUR/GBP through contracts for difference is one of the most common ways to gain exposure to this and other forex pairs. CFD trading enables traders to speculate on price fluctuations without owning the underlying assets. Traders can apply various strategies, including technical, fundamental 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 appropriate 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 manage risk exposure carefully and use appropriate risk management techniques. Traders must also comply with the leverage limits imposed by the financial regulator in their country. Under the regulations of financial authorities such as the UK’s Financial Conduct Authority, the Cyprus Securities and Exchange Commission and the Australian Securities and Investments Commission, retail traders can use 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 capitalise on price fluctuations. Understanding the pair’s history and importance, as well as the factors that influence its movement, is essential for traders seeking to navigate the foreign exchange market. By carefully managing their risk exposure and using appropriate risk management techniques, traders can better navigate the benefits and risks associated with trading the EUR/GBP pair while pursuing 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 20 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 feedback@rationalfx.com or contact us through our social media accounts here: Facebook, YouTube, or leave a feedback here.