Company

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for GBP/USD

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City Index

Offers three ways to trade: Forex, CFDs, Spread Betting

 Offers over 12,000 instruments
City Index
See Details Try a Demo
Your capital is at risk
£25Min. Deposit Learn More
  • MT4
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  • Mobile apps
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Trust Score:

A

Used by:

140,000

Established in:

1983

Regulated by:

Financial Conduct Authority, A...

CFDs are leveraged products and can result in the loss of your capital. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For Trading GBP/USD

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose City Index
For Trading GBP/USD?

City Index scored best in our review of the top brokers for trading gbp/usd, which takes into account 120+ factors across eight categories. Here are some areas where City Index scored highly in:

  • 34+ years in business
  • Offers 12500+ instruments
  • A range of platform inc. MT4, Web Trader, Tablet & Mobile apps
  • 24/7 customer service
  • Tight spreads from 0.5 pips
  • Used by 140,000+ traders
  • Allows hedging
  • 3 languages
  • Leverage up to 1:200

City Index offers three ways to trade: Forex, CFDs, Spread Betting. If you wanted to trade GBPUSD through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

City Index have a A trust score, which is good. This is largely down to them being regulated by Financial Conduct Authority, ASiC and MAS, segregating client funds, being established for over 34 years, and much more. For comparison:

Trust Score comparsion

City Index
Trust Score A
Year Established 1983
Regulated by Financial Conduct Authority, ASiC and MAS
Uses tier 1 banks
Company Type Private Private Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who City Index is (& Isn’t)
Suitable For

As mentioned, City Index allows you to trade in three ways: Forex, CFDs, Spread Betting.

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading

Not Suitable for:

To trade with City Index, you'll need a minimum deposit of $100. City Index offers a range of different account types for different traders including a micro account, mini account, .

Finally, City Index isn't available in the following countries: CF, TD, CG, CG, CI, CU, GN, ER, GN, FR, GW, HT, IR, IQ, KR, LB, LR, LY, MM, NZ, NG, SL, SO, SD, SY, TM, UZ, VE, EH, YE, ZW. They do not offer islamic accounts either.

Part 3

A Comparison of City Index vs. vs.


Want to see how City Index stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
City Index
Fixed Spreads
Variable Spreads
EUR/USD Spread 0.5
GBP/USD Spread 2.1
USD/CAD Spread 2.0
USD/JPY Spread 1.6
DAX Spread 1.0
FTSE 100 Spread 1.0
S&P500 Spread 0.4

Comparison of account & trading features

City Index
Spread type Fixed
EUR/USD Spread 1983
EUR/GBP Spread Financial Conduct Authority, ASiC and MAS
Crude Oil Spread
Gold Spread Private Private Private
DAX Spread

Part 4

Forex Trading: The GBP/USD Currency Pair

The GBP/USD is known as the “Pound dollar” by forex traders and is one of the majors. Both the US dollar (USD) and the British Pound (GBP) are popular currencies; having average daily over-the-counter (OTC) turnovers of US$4,438 billion and US$649 billion respectively for 2016. Of the two currencies, the USD is the more widely traded, accounting for as much as 88% of the OTC forex market (2016). It is second in trading volume among the major pairs to the EUR/USD.

The GBP accounted for 13% of this market during the same period. Considerable levels of trading between these two economies gives rise to the need to hedge against foreign exchange risks. The liquidity of the USD, and to a lesser extent, the GBP, also makes the pair an attractive trading pair for retail forex traders. The volatility of the currency pair over the last 10 weeks was approximately 1.01%, with the pair moving by 125.84 pips during the period.

The GBP/USD closed trading at 1.2291 on Friday March 3rd, 2017 (Bloomberg), gaining 0.20% over the previous close of 1.2267.

Fundamental Influences on the GBP/USD Currency Pair

As with most currency pairs, the economies of both the United States and Great Britain, have a significant, influence on the rate of exchange. With the economy of the United States expected to undergo major changes in 2017 and beyond with the new Trump administration, the pair is likewise expected to adjust in response to the prevailing economic conditions.

The interest rate policies of the US Federal government are also expected to impact the currency pair. Similarly, Brexit is still expected to affect the exchange rate between the pound and the dollar during 2017.

Major political events are known to impact currency rates of exchange. For example, during the week following the inauguration of President Trump in January 2017, the GBP/USD rate fell sharply following great uncertainty about the US economy. As the pound strengthened, the dollar dropped sharply.

Three factors that could greatly influence the GBP/USD currency pair in 2017 include

The US Federal government’s interest rate policies, the Brexit decision, and the performance of the US economy under the new leadership of President Donald Trump.

The US Federal government has hinted at the possibility of three interest rate hikes during 2017. Increased US interest rates will favour investment in that country which will trigger increased demand for the US dollar, all other things remaining equal. President Trumps’ immigration and trade policies are likely to trigger inflation and growth in wages.

More clarity on the fundamental impacts on the currency pair will be gained as the year progresses.

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