Finding the Best Forex Brokers is challenging because the forex trader has to make sure that the chosen forex broker is the best fit according to the trading style of that forex trader. It is very important to ensure that the selected forex brokers are renowned and able to fulfill the forex trader’s requirements.
The forex brokers provide traders with effortless access to the forex trading markets, which is the primary job of earning forex brokers. Moreover, numerous forex brokers teach traders about forex trading.
Furthermore, plenty of forex brokers are available out there. Some are small, and some are under the big name, but all operate similarly. The forex brokers will make some profits regardless of whether the trader wins or loses during the trading. It is because there is a gap between the actual price and the price the trader is getting paid.
In the following section, we will see ways to find the best brokers in forex trading, including top foreign exchange market trading platforms and tips for trading foreign exchange markets.
How To Find The Best Forex Brokers
Finding the best forex brokers is significant for novice and master traders. In terms of doing that, one has to have a checklist. Generally, the checklist includes some significant factors and benefits that the broker offers, such as their trading experiences, the range of the offered tradable items, best forex trading platforms, fee-spreads-commissions, educational resources, customer help, and most importantly, legitimacy.
Concerning the safety of active traders, regulation and transparency are significant. It is known that forex markets are highly volatile. Hence, brokers with low capital can be shut down anytime, leaving the trading in an extraordinarily messy situation without any notice.
So, the selected forex broker should be a reputed company that operates honestly and will take necessary steps if the trader is somehow wronged.
On the other hand, it is significant that online forex broker is regulated, and their finances are publicly accessible. Understanding the forex broker’s financial position will help you choose the right one.
Below we’ve discussed the main factor to be considered while finding the best forex brokers.
The forex trading market is like a big cakewalk in which traders and most forex brokers are keen to be involved. Generally, the forex market is divided into three peak activity periods: Asian as Tokyo, European as London, and North American Session as the New York session.
Sometimes, one additional session comes in that is Australian as the Sydney session. As we know, the forex markets are decentralized. As a result, there is no integrated and defined monitoring authority for the forex market.
Therefore, some regulatory authorities are introduced with formidable rules and regulations on the best forex brokers in different sovereignty to establish their legitimacy.
Consequently, the online forex broker you choose should be appropriately regulated as the regulatory system is essential. It assures the broker’s operations are maintained by the rules assigned by the governing body.
It depicts the trust element for the broker to its clients. If the forex broker practices the rules correctly, it indicates that the broker is honest and will not do any scams to their clients.
A regulated forex broker by any trusted governing body is the most significant feature of opening an account. Highly-trusted regulators govern top-tier foreign exchange trading platforms.
The fee charged by the broker is also named trading cost, and it is another significant factor for the rating of the forex broker. It is something that comes first to mind, and it may become a complex matter to understand for many novices.
Comparing the fees of the best forex brokers is a tough job. Some forex brokers may charge almost 10x more than others. So, you have to check thoroughly whether any hidden charges exist or not. The hidden charges are withdrawal charges or inactivity charges.
Usually, the best forex brokers charge spread, commission, and financing fees, as shown below:
- Commission can be charged in two ways. One is that brokers give a broader spread than the market offering. And the second way is that active traders may get the spread offered by the market but have to pay commissions based on the traded amount.
- Financing cost is another thing that applies to forex leverage trading. If you trade on leverage along with holding the position overnight, you’ll be charged a fee named as a financing cost. It can fluctuate daily, becoming a significant part of your total trading cost in case of holding the position over the long term.
However, if the trading cost is low, making a profit on the forex market will be much more effortless. On the other hand, trading with higher trading costs means jeopardizing your profits.
Assets availability is another prominent feature to check when finding or rating the best forex broker. Most forex brokers still provide excellent and very captivating alternatives to currency pairs, but some may not offer minor or exotic currency pairs.
For instance, if you require the Turkish Lira or the Russian Ruble, you must cross-check the list of tradable currencies and assets list offered by the broker. Exotic or minor currencies are relatively less traded. Hence, these might not be available on the best trading platforms.
On the other hand, if you are looking for the major pairs, you will get all forex brokers ready to cater to you. Sometimes best forex brokers try to meet the client’s requirements. In terms of doing so, the best forex brokers even add on the requested exotic international currencies and currency markets, and this type of adaptivity is a significant asset without any doubt.
Available Trading Platform
The currency pairs trading platform is among the essential items the best forex brokers may offer to the forex active traders alongside the trading costs. Trading platforms play the role of the gateway of the investment arena for traders.
Forex traders are provided the facility to open, close, and even check the price changes and complete analysis via the best forex trading platforms. Furthermore, trading CFDs platforms include technical trading tools, live news feeds, etc.
Also, online trading platforms include various order types, excellent trading platforms, mobile apps, advanced charting, and drawing options, and even sometimes may comprise event calendars and sentiment indicators to provide an efficient trading experience.
The auto-trading facility is another crucial factor you must consider while selecting the best forex broker, as it takes your trading CFDs experience to the next level through its logic.
The auto-trading is also referred to by several names, such as automated trading or mechanical trading, system trading, or algorithmic trading.
Whatever name it is called, the auto trading facility allows forex and CFD traders to establish particular rules for entries and exits of the trades. Once a trader sets everything per his needs, a computer will automatically take over the trade.
Also, using the facility, forex active traders may turn their entries and exits precisely for the trades. Moreover, auto trading may help to maintain the money management rules properly since it is implemented and monitored by computers.
Most importantly, the auto trading facility will keep human emotions away from the trades; thus, the trades will not be biased because trades are put automatically if the preset targets are met.
Sometimes beginner forex traders may call upon their brokers to get help for learning the trades, and it is an essential factor to check on, especially for beginner traders. Therefore, broker usually provides educational resources related to forex trading.
Also, forex brokers offer various trading tools to assist their clients in acquiring skills and knowledge related to trading. However, educational materials may vary from broker to broker.
Some arrange online academic classes and webinars collaborated with specialists, some provide e-books or courses, or they can be posted on blogs or guides. Also, seminars are famous methods for assisting the traders’ progression to their trading journey.
A newbie trader may have numerous questions striking in the head, leaving them at a phase where they do not understand where to start. Then they should have a look at the experiences of others in terms of deciding how to commence in the currency market.
Going through the reviews of others will benefit you to formulate yourself in case of any forthcoming difficult and unstable situation. So, review reading is as crucial as advising yourself before continuing with any other business and paying for any services.
The forex market is enormous and has plenty of profit-making opportunities. Besides, various types of top forex brokers are inclined to have clients. But it is not guaranteed that all of them are bound under all the regulations and restrictions. For this reason, reading the broker’s review is significant.
Furthermore, while investing in the forex market, you must consider some particular factors. These factors are country-based official reports of the regulatory agencies, clients’ feedback, security level, and so on.
A good review will always be based on factual data. The genuine review will help you know about the security and the company’s background since it is highly significant concerning your capital and investments.
After reading a review, you will be enlightened about the technical competence information and its efficiency, the tradeable currency pairs, the user’s experience while using the trading platform, and various more helpful information that may impact your trading experience.
The forex trading platforms are a 24/7 thing that is wide awake. Therefore, a forex broker who provides customer support for 24 hours is required. Moreover, take into consideration whether they have an easily accessible live chat option or not.
Access to any live person over the phone is a great amenity to gain. Whenever you feel like asking about anything you do not understand correctly, just make a quick phone call. A conversation with the broker will clarify what kind of support service they are offering.
On the other hand, if the broker is not offering efficient customer support service, it may result in a significant loss for you. Hence, before merging with any forex broker, their customer service system should be tested by calling over the phone, emailing, or online chatting.
Also, do not forget to check whether they are providing support services in a language that is understandable to you.
However, mishaps can occur with any best forex trading platform, such as disruption of the forex trading platform, errors in pricing, imprecise account statements, or any other technical outages. Any trading CFDs platform may encounter these kinds of circumstances.
Still, as a trader, it’s essential to be informed that the broker can be easily reached and that they will handle the issues responsibly and quickly resolve them cleanly.
Deposit And Withdrawal Methods
Initial deposits and withdrawal methods may vary according to the brokers. In most cases, a minimum or base deposit amount is needed to open a trading account with any particular broker. Hence, finding a forex broker whose minimum deposit amount will match your budget is significant, especially if you are a newbie forex trader.
So, try to reach out to the forex trading platform or broker that will permit you to start trading with a small amount of money at the beginning.
Some vast inconsistencies between the associated costs of the deposits and withdrawals result from the internal methods perceived by the best forex brokers. The initial deposit may fluctuate from $10 to $10,000, so here, the amount may be an obstacle to making an entry for newcomers with smaller capital.
Still, beginner forex traders can get a chance to make a difference as they will be provided with the leverage facility. Forex trading accounts are possible to fund with a small-scale base deposit. And, leverage may work as the rescuer regarding buying power.
Using the leverage facility will take the buying power considerably higher than the initial deposit. It is one factor that encourages people to start trading CFDs.
Ease of Deposits and Withdrawals
Every other forex broker or forex trading platform has policies regarding deposits and withdrawals. Account holders may be allowed to make deposits through credit card, bank check, PayPal, Bank wire transfer, business check, or personal check. Conversely, withdrawals can usually be made via wire transfer or checks. Both services will be charged a fee through your selected forex broker or forex platform.
Traders Aim In A Broker
The forex trading platforms are comprised of selling and purchasing global currencies. It is the most liquid marketplace in the world. Advanced traders can compete individually with giant banks and hedge funds; such a factor makes trading the CFDs market unique.
Regarding competing with the market giants, individual traders must set up the correct account. Commonly, three primary trading accounts are accessible: standard, mini, and managed. All three account types have their pros and cons.
Among them, which account will be best suited for you that relies on your risk-tolerance level and the amount of your base investment? How much time you will be able to invest daily will also have an impact.
Various types of accounts can be aimed at good use for specific types of experienced forex traders and the account size they must trade forex with. Hence, selecting the best forex trading broker or forex trading platform is significant, whatever you wish to call it.
Different types of accounts will meet the specific need and solutions of individual traders. In most cases, the newbie forex traders aim to get the micro or mini account and demo account facilities.
Generally, a micro account allows the traders to open the account with a minimum base deposit of $50 to $100, and a minimum trade size of 1,000 units of the base currency pairs means one micro lot.
On the other hand, a mini account needs a bigger base deposit ranging from $100 to $200, along with the minimum trade CFDs size of 10,000 units of the base currency, which is one mini lot. So, micro and mini accounts may be beneficial for novice forex traders since they’ll be able to have a more controlled trade size.
Moreover, intermediate traders mostly search for the Standard account with low costs. The standard account allows the traders access to standard lots of base currency value of $100,000. But the forex traders do not have to make the initial deposit of a total of $100,000 of capital to trade.
In that case, the margin and leverage rule will be applicable, which is generally 100:1 in forex trading. It indicates that traders need only $1,000 to enter inside the margin account for one standard to start trading forex.
Regarding what the experts aim to get from the best forex trading platform, it is not only about the money. Experts forex traders are concerned about the strong authorization from the regulated governing body and spread.
Also, the accessibility of exclusive and committed account managers so that the traders can get immediate support if needed.
Broker Regulation In Details
In this section, we will see a detailed outlook of forex regulation based on the geographical location:
Suppose you are living in the US and looking for a forex broker to begin trading in financial markets. In that case, you should find an online broker regulated by Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA).
These regulations protect consumer investors with less than $10 million in their portfolios.
Let’s see how traders benefit from trading in a US-regulated broker:
- Enjoy a trading environment with leverage up to 50:1 in significant currencies and 20:1 in minor currencies to avoid losing money rapidly.
- No opportunity to hold simultaneous positions on the same forex assets- no hedging opportunity.
- Trading opportunities in segregated accounts.
The Eurozone regulation is a mixture where each country has its own regulatory body. However, an overhead regulatory entity known as MiFID regulates most EU continents.
Other regulation entities based on EU counties are mentioned below:
- Switzerland – Swiss Financial Market Supervisory Authority (FINMA)
- Spain – National Securities Market Commission
- Germany – Federal Financial Supervisory Authority (BaFin)
- Denmark – Danish FSA
- Cyprus – Cyprus Securities and Exchange Commission (CYSEC)
- Sweden – Swedish Financial Supervisory Authority (Finansinspektionen)
- Italy – Commissione Nazionale per le Società e la Borsa (CONSOB)
- France – Autorite des Marches Financiers (AMF)
- Italy – Commissione Nazionale per le Società e la Borsa (CONSOB)
- Malta – Malta Financial Services Authority (MFSA)
- Netherlands – Authority for the financial markets (AFM)
- Poland – Polish Financial Supervision Authority (KNF)
- Austria – Financial Market Authority (FMA)
- Croatia – Financial Services Supervisory Agency
- Czech Republic – Czech National Bank
- Denmark – Danish Financial Supervisory Authority (Danish FSA)
In the UK, forex brokers should be regulated by FCA (Financial Conduct Authority).
Let’s see how FCA helps retail traders in terms of trading in the financial market:
- FCA supervises all licensed brokers, checks their performance, and provides guidelines.
- FCA imposes rules on all brokers to provide insurance worth up to £50,000 in compensation in case of insolvency.
- Besides, FCA provides a comprehending online portal, where all broker information is available with updated data.
All brokers in Australia should follow the rules and regulations of ASIC (Australia’s Security and Investment Commission).
Let’s see the rules forex brokers should follow to run businesses in Australia:
- Without ASIC regulation, brokers’ websites will be blocked by local ISPs.
- Every regulated broker should have an office where the authority will regularly audit.
- Brokers cannot mix with clients’ funds, and any client’s fund should be in a segregated account.
- Forex brokers should start businesses with AUD 1 million with working capital.
Trading Costs In Best Brokers For Forex Trading
The cost is related to the forex trading that forex brokers charge upon their provided services to their clients. Trading cost also alludes to the trading fees.
Usually, forex traders pay the trading charges to get services like to have executed the buy or sell orders, and all forex brokers do not charge similar commissions. While considering the critical factors of the best forex trading platform or best forex trading broker, the lower trading cost is undoubtedly one of those factors.
Therefore, surprisingly, all the forex brokers attempt to keep their costs as lower as they can in terms of captivating more clients than their rival brokers.
On the other hand, some forex brokers offer zero commission advantage, and the forex traders mostly go for those brokers to escape from paying out all the profits to the brokers. Even after the statement of providing zero commissions, some brokers include some extravagant hidden charges than the commission.
Trading cost is something that the brokers cut the very first from your account with your every trade, no matter how long the trade was open.
Moreover, the trading cost varies per your account type and the conducted trading volume. If you trade forex in a more significant volume, the forex broker will charge you a more considerable amount of trading cost. The forex trading cost can usually be divided into a fixed, percentage, and variable.
In a fixed trading cost category, commissions rely on the gap between two currencies of a pair. And, the forex broker applies spread if the commission is charged as percentages. Since commissions are charged in a small percentage, it will be lower and set by the amount of spread. Besides, the spread connected with a specific currency pair impacts the variable commissions too.
However, the associated forex trading cost has some optional costs except the mandatory costs. The commission is a mandatory trading cost that the forex brokers fix. Thus it is an uncontrollable cost.
But additional expenses are charged for any additional services on strategies, objectives, and more. If the FX trader does not take any additional services, then the optional trading cost can be escaped.
Best Forex Brokers And Platforms In Asia
The forex trading market is a worldwide industry. Numerous forex brokers achieve authorization from numerous regulators throughout the world.
Also, they exploit passporting preparations to promote their services in offshore territories.
Here are some mentions of the best forex brokers, forex brokers reliable, and top forex trading platforms over countries/regions in our forex broker list.
FBS is one of the leading award-winning forex brokers in the industry, functioning in over 190 countries for over a decade. It is especially famous across Asian countries. The broker is governed by the ASIC, CySEC, FSC, and FSCA.
It offers an initial deposit of 10$ for a Cent account, and for the Standard account, the base deposit demands only 100$. The maximum leverage is offered up to 1:1000 or sometimes 1:3000, and for Europe-based clients, the ratio is up to 1:30 leverage on major currency pairs.
However, the standard account’s spread starts from 1 pip, whereas the cent account is 3 pips. They charge an overnight fee. It has 24/7 client support available via phone, live chat, email, and social media.
A demo account is offered, and the broker has a proprietary platform, FBS Trader, along with MT4 and MT5, to offer the traders various levels. The platforms are user-friendly and multilingual also, and they do not put any restrictions on strategies.
A good arrangement of additional tools like a forex calculator, and economic calendar even they compose in-house daily market analysis on Forex TV, quality educational resources at the FBS learning center, an extensive collection of educational content comprising a range of videos and webinars, forex guidebooks, and lots of tips for traders. Novice traders will find their educational resources and research tools very beneficial.
Exness was created in 2008 as an EU-based prominent global broker authorized by the CySEC, SFSA, and FCA.
It offers a great extent of 120 currency pairs; an initial deposit, for standard, standard cent, and standard plus accounts is $1. Besides the raw spread, zero, and pro accounts, the base deposit demands only $200.
The maximum leverage is offered from 1:100 up to 1:2000, with equity up to $999 – 1:Infinity and a hedged margin of 0% for forex currency pairs. The spread starts from 0.3 pips for standard and cent accounts, and margin call is provided up to 60%. They charge an overnight or rollover fee.
A demo account is offered with MT4 and MT5. They also provide in-house VPS hosting to clients on $500+ deposits and negative balance protection. It has a multilingual clients support service available 24/7 in English and Chinese and 24/5 available in 13 languages.
Exness offers its own Exness Academy to support traders with powerful one-stop tools. Educational resources and fundamental analysis, and technical research tools are very beneficial. They also have a great arrangement of updated financial news and extensive educational materials and compose the latest updates on weekly outlooks and trading ideas via Web TV.
XM: Trustworthy And Diversified
XM was founded in 2009 as an EU-based, globally renowned broker governed by the CySEC, ASIC, and FSC.
It offers an initial deposit for micro, standard, ultra-low, and XM zero accounts are $5, along with 55 currency pairs supported with 11 base currencies. XM is trustworthy, safe, and diversified its brokerage services in almost 190 countries worldwide.
The maximum leverage is offered Up to 1:888, and for the client base in the EU, the maximum leverage is 30:1. Also, the spread starts from 1 pip for micro and standard accounts and 0.6pip for the ultra-low account. Besides, $3.5 was charged for zero accounts. They charge an inactivity fee. On cash instruments only, they charge a rollover fee, and a 50% margin is offered with negative balance protection.
A demo account is offered with MT4, MT5, and in-house VPS hosting, a multilingual client support service that is available 24/5 via live chat, phone, and email. They have educational resources and research tutorial videos for the platform; general educational videos and webinars benefit newcomers.
Blueberry Markets- Cost-Efficient Broker
Blueberry Markets is an Australia-based global online broker that VFSC and ASIC regulate. The broker has achieved its market- position by offering lower spreads. It offers a base deposit of $100 and maximum leverage of 1:500. It also has multiple asset classes, including over 300 tradable instruments, MT4 and MT5, in its offerings.
Offered spread is 0.0 pips for the direct account, and for the standard account, it is one pip. Moreover, it has a 24-hour client support team and an additional professional account manager’s team to cater to the clients.
FXCC- Suitable For All Non-US Users
FXCC has secured its place as the best forex broker for clients outside the USA. The broker was established in 2010 under FX Central Clearing Ltd and is situated in Cyprus.
It is regulated by Cyprus Investment Firm (CIF), CySEC, and FCA. The broker has appeared as one of the strong rivals in the industry. FXCC offers more than 70 currency pairs comprising the major USD forex pairs and maximum Leverage of 1:500.
FXCC offers an MT4 platform that can be accessed from web browsers and mobile apps and a reliable and user-friendly interface. The forex platforms are also loaded with cutting-edge trading features, a built-in library of more than 50 technical analysis indicators, a mobile app, customized trading bots, real-time market prices, and an economic newsfeed.
Moreover, the platform has a demo account and a blog section providing extensive forex research and technical analysis. Their offered educational material contains practical guidance on margin, slippage, economic indicators, free downloadable e-books, and so on. Hence, novice traders attain guidance on forex trading basics step-by-step.
Best Forex Brokers and Platforms In Australia
The Switch Markets is in Australia and regulated by the Australian Securities and Investments Commission (ASIC). The broker has attained its market- position by offering lower commissions and tight spreads.
It offers an initial deposit of $50 and maximum leverage of 1:500. Also, it has a great selection of over 180 trading instruments, over 62 currency pairs, a freebie VPS, a mobile app for all live accounts, demo account, MT4, and a welcome bonus up to 5,000 USD in its offerings.
However, the standard account’s spread is comparably high, starting from 1.4 pips. They charge a commission over withdrawals with no fees for inactivity. Moreover, they provide Islamic accounts for Muslim traders. It has a 24/5 client support multilingual team and an additional professional account manager’s team to cater to the clients.
A good array of additional tools like calculators for profit, lots, and points, trading advisors, quality educational resources, and so on are also available.
Pepperstone- Best for Trading Experience
Pepperstone Group is one of the top-listed global online brokerages that was founded in the year 2010. It is an excellently reputed broker in the industry and has secured 11th rank among the world’s prominent forex trading brokerage.
The Australia-based brokerage offers captivating trading alternative packages for their clients considering shares, forex, indices, metals, commodities, and cryptocurrencies. It is focused on creating a full-featured currency trading portal that allows its clients to effortlessly access the markets leading to pay heed to overcome the complexity and trade in the market.
Moreover, Pepperstone is the best-suited broker for traders looking for numerous optioned UI and account types at a low cost. The initial deposit is 200 AUD, and the amount is the same for all types of traders. The leverage is available for up to 500:1 along with the attractive spreads that start from 0 pips.
Besides, Pepperstone is authorized by ASIC and FCA (U.K.); thus, Australia-based clients and clients from the U.K. will find it convincing. They even provide account protection for their client in the U.K. It also has a well-organized support team for resolving any issues of its clients.
These features testify to Pepperstone as one of the leading online forex brokers with the best currency trading experience.
IC Markets: Superior Technology
IC market is an Australia-based global broker that was established in 2008 and authorized by the CySEC, SFSA, and ASIC.
It offers a base deposit of $200, a spread is 1pip, along with 60 currency pairs supported with 10 base currencies. The leverage is offered up to 1:1 to 1:500, and for the EU clients, it is 1:30
For Muslim traders, they offer Islamic accounts or swap-free accounts. They do not charge withdrawal or rollover fees. On cash instruments only, they charge a rollover fee, and a 50% margin is offered with negative balance protection.
A demo account is offered with MT4, MT5, and cTrader, a multilingual client support service that is available 24/7 via live chat, phone, and email. They have educational resources, regular technical analysis reports, research informational tutorials and videos, and webinars to benefit newcomers.
AvaTrade- Perfect For Non-US Users
AvaTrade is one of the leading forex brokers in the industry that is solely sustained by seven authorities across Europe, the British Virgin Islands, South Africa, UAE, Japan, and Australia.
The broker is neither publicly traded nor operated as a bank; it is governed by the ASIC, CBI, JFSA, and IIROC. AvaTrade allows social trading copy trading via AvaSocial. It also provides DupliTrade and ZuluTrade for the copy trading feature.
However, AvaTrade provides 44 tradeable forex options and maximum leverage up to 400:1. They have proprietary platforms, AvaTrade WebTrader and AvaTradeGO, besides MetaTrader, to offer the traders in various levels. It further comprises an innovative feature, AvaProtect.
It also composes in-house research content o a daily basis as in the article and video formats, an extensive selection of educational content. Traders and their clients are allowed to access trading central research modules.
SoFi- Excellent For Automated Trading Strategies
SoFi was introduced in 2010. It is based in San Francisco. Presently, SoFi is the solo free-of-fee Robo-advisor in automated investing. They also provide free access to certified financial planners to all clients.
However, SoFi falls short of several customization options that are available from other rivals. SoFi settled with SEC to transfer the clients’ fun into its proprietary ETFs from third-party ETFs.
Moreover, SoFi offers fee-free account management and live client support service via phone chat and email on weekdays. They even provide ready assistance during evening hours. Traders can open an account with only $1 and need only $5 to start trading. The mobile app is available for both Android and iOS.
Best Forex Brokers And Platforms In The UK
XTB- Great For Low Costs
XTB is a great broker when traders are looking for low-cost trading. Trading with the broker is less burdened for the traders since there is no hidden or external cost for trade placing. In 2002, X-Trade was established as Poland’s first leveraged forex brokerage.
Later in 2004, it was changed to the X-Trade Brokers act by new regulations and relaunched as XTB Online Trading (XTB). Moreover, the company went public in 2009 and, in 2016, was listed on the Warsaw Stock Exchange.
Their ticker symbol is XTB. It is regulated by FCA (U.K.), and they do not provide services for USA-based clients. However, XTB does not require any base deposit for account opening.
The maximum leverage is offered up to 500:1, and for UK-based clients, the ratio is up to 30:1. XTB provides excellent client support. Their educational resources and research tools suit well for novice traders.
London Capital Group (LCG)- Best for Beginners
London Capital Group (LCG) was founded in 1996 and relaunched in 2016 as LCG Trader. It is the best broker for novice traders or who is just started trading forex. The broker is situated in the UK and has authorization from FCA. They do not cater the clients based in the USA.
However, LCG requires zero base deposits for account opening and provides clients’ account protection, making it best for beginners. It provides a wide range of asset classes and greatly emphasizes client support. They also combined MT4 with their web-based platform to provide an uninterrupted user experience.
Their educational resources and research tools suit well for novice traders. On the other hand, they have many costs charged to the traders, such as spread costs, overnight, and inactivity costs. They even have an extra charge for a guaranteed stop.
IG Group- Biggest Forex Brokers With The Best Premium Service
IG is the best of the regulated brokers that provide premium services to their clients and has been traded publicly for the past 45 years. It is authorized by the FCA, a governing body in the UK.
It also has a membership of NFA and is registered in CFTC, which makes it open for clients based in the USA. The broker offers more than 80 distinct tradeable currency pairs. Also, the maximum leverage of up to 50:1 is similar to FOREX.com.
A $250 minimum deposit is needed to open an account with them. Regardless of your traded item, FOREX.com will consider the trading volume to give you a regular price in total with a lower spread of 0.8 pips. In terms of giving more security to their client’s money, the broker holds money in segregated accounts through the trustee system.
Moreover, IG is a power-packed broker giving its clients a wide range of charting tools at their proprietary web platform and mobile app. The platform also features MT4, ProRealTime, and API trading. It offers the ultimate industry-leading education, investment advice, and excellent market research, making IG the best premium service broker with a fantastic all-around experience.
Saxo Bank- Top Online Trading Platform for Forex Market Variety
Saxo Bank was created in 1992. It is a Denmark-based prominent Fintech expert specializing in multi-asset trading. It also provides banking services for some specific clients.
However, in 1998 it was introduced as one of the first online currency trading platforms. Since 2006, the biggest forex broker has been operating via a holding company named Saxo Capital Markets U.K. Ltd; hence it is authorized by the FCA.
Saxo Bank is the best selection for the advanced forex trader who managed to afford the excessive minimum deposit of $2,000 or £500 for the U.K. Novice traders may find it a stumbling block since the base deposit of accounts is relatively high.
However, clients based in Denmark and Norway do not apply to this condition and do not need money to open an account. Besides, the broker does not accept clients based in the USA. Moreover, the trader experience of their platform is entirely splendid, providing wide-ranging tradeable instruments of more than 40,000, and the spread offered is 0.6 pips on major pairs.
In Saxo Bank, the SaxoTraderGo platform is extraordinary that includes excellent market navigation. Traders can choose a currency trading platform from a standard or advanced one. Traders may have customized pricing based on account level and can select from classic, platinum ($200,000 of balance required), and VIP($1 million of balance required).
The educational materials provided by the broker are considered the industry’s best research, and it has webinars and classes taught by experts.
CMC Markets- Best Budget Option
CMC Markets is a globally reputed broker that traded the first online forex trade utilizing their proprietary software maned MarketMaker. It is an Australia-based broker, and Goldman Sachs holds 10% of its stake.
CMC Markets broker is authorized by BaFin (Finanzdienstleistungsaufsicht) and FCA (UK), which makes it a safe broker for trading forex with lower risk.
Also, CMC Markets follow the strict custody arrangements that your fund is kept segregatedly from the company assets to ensure more security of your money. Reputed banks hold all the funds. Hence, you must notify them earlier regarding withdrawing funds or immediate access.
Moreover, CMC markets offer a proprietary trading platform, ‘MarketMaker,’ accessible from any web browser. The platform has a price projection tool, screening client sentiment that depicts the real-time feeling of the other traders over an asset.
It provides MT4 access, a wide-ranging tradeable currency pair of more than 300 forex pairs, 70 chart patterns, and 115 technical instruments.
‘MarketMaker’s extensive market research and exceptional mobile app comprise Android and iPhone, allowing users to have a fantastic experience.
Best Forex Brokers and Platforms In The US
FOREX.com- Top Broker For Forex Trading In The US
FOREX.com is a reputed broker specializing in an excellent trading experience for forex worldwide. They offer many markets and provide plenty of impressive selections of their proprietary platforms but reduced access to MetaTrader. However, it offers multiple asset selections that will delight the traders with every level of experience.
The broker provides the clients with over 80 currency pairs/forex pairs, given maximum leverage is Up to 50:1. Although FOREX.com is not a discount broker, if you trade in larger volumes, you may get a discount.
But, favorably allow their clients to choose the pricing system from spread or commission, the broker’s STP Pro pricing, as per the trading preference. The broker’s STP Pro pricing comes from global banks without any added markup. All these efforts made them acclaimed as the No. 1 forex broker in the U.S.
Interactive Brokers- Best Forex Broker Overall
Interactive Brokers is one of the famous brokers that is much reputed for providing powerful trading forex platforms at a low cost. It offers world-class brokerage services in 33 countries comprising 134 global markets under a publicly traded company.
Hence, Interactive Brokers has authorization from almost every biggest regulator of the financial world, including SEC, CFTC, and NFA.
However, numerous professional active traders choose the interactive brokers trading platform since it is developed considering the needs of both beginner and professional traders. They offer a wide range of tradeable currencies, over 100 forex pairs, including major forex pairs.
The maximum available leverage is Up to 50:1 along with the commission spread of 0.08 – 0.20 pips. Interactive brokers provide:
- Cutting-edge advanced trading tools.
- Trade execution with multiple asset classes.
- 20 distinct order types.
It also gives real-time quotes from numerous largest global banks for forex dealing. Even the forex platform allows stock trading on global exchanges that can be conjoined with a forex order in terms of simultaneously hedging the currency.
The interactive brokers’ platform comprises a client portal, mobile app, and APIs. Using the APIs allows you to have custom-made trading applications.
OANDA- Best For Veteran Traders
OANDA is the broker that experienced traders/ advanced traders prefer most as the broker provides exposure to various financial tools that are best suited for veteran traders’ needs. OANDA was established back in 1996 and authorized by four sovereignty at present.
The broker is primarily regulated by the FCA based in the UK; for Canada, it is authorized by IIROC. However, it also operates in the USA and provides services to clients worldwide.
OANDA is an experienced broker of the forex market and is reputed for offering a reliable and decent trading environment for traders. The offerings for the tradeable items differ from region to region. The broker only has two types of accounts in its offerings.
Also, the demo account is available for beginners but does not provide a cent account facility regarding trading tools; the offerings of the broker range to a great extent. The platform includes MT4, WebTerminal MT4, and MT5. However, the given leverage level is very low at 1:50, and there is no bonus provided which many traders may find unpleasant.
Making up for that flaw, Oanda provides trading forex platforms that are high in quality but handy, along with advanced and robust research tools. It also has various technical indicators and a great API in the offering. Oanda provides a quick and easy process for its clients to open an account.
TD Ameritrade- Well-Rounded Platform For US Traders Only
TD Ameritrade is one of the biggest USA- based online brokers and provides services only for USA-based clients. Hence, it tries to capture the clients as more as it can. In doing so, they provide multiple forex platforms targeting various expertise levels.
The platforms they are offering are well-rounded, with various advantages for various types of traders. It has a web-based and standard mobile app best suited for active and passive traders. Besides, it has a highly connected brokers trading platform, ‘Thinkorswim’ for day and casual traders.
Moreover, ‘Thinkorswim’ is a robust arrangement of charting tools, wide-ranging screening, and cutting-edged analytics, making the platform ‘All-in-All’ for every level of traders. It offers 73 tradeable currency pairs/ forex pairs along with the 50:1 maximum leverage for major currencies, and for minors, the ratio is 20:1.
However, Charles Schwab has taken over TD Ameritrade, so the two companies may be merged eventually.
eToro- Best For Copy Trading
eToro is the best broker for social trading or copy trading. Copy trading is the best-suited feature for novice traders as it allows them to follow the methods of experienced traders with excellent performance history. However, eToro was founded in 2007 and focused on the cryptocurrency markets.
Still, most of the offered features are usable for forex traders. The best feature that made its place on the list is ‘copy trading. Using the CopyTrader, the trades and trading methods of the expert traders’ can be copied straight.
The copy trading feature of eToro has allowed the traders to make more average profit as they copied the trades and strategies from the famous veteran traders. The broker offers 40 tradeable global currency pairs, an elite network for copy trading, a mobile app, and first-rate educational resources for novices.
The forex broker you choose becomes your primary trading partner of yours, which means you should be conscientious while selecting the best overall forex broker. Always select a reputable broker and check whether they are competent enough to meet your trading requirements.
You can run a testing session by opening a demo account on the broker’s platform you’re considering using. It will give you an idea of whether the platform is good enough for your trading portfolio.
Moreover, trading with the demo account will help you potentially stop making any mistakes that may occur due to not being familiar with the particular broker’s trading platform of the broker. Once you gain confidence over the forex broker, it will be effortless to dedicate extra time and attention to analyzing and developing your forex strategies.
Additionally, aforehand finalizing any broker, a few fact-finding studies, and investigative work will be very beneficial and increase your success possibilities.
Frequently Asked Questions:
What does a forex broker do?
Ans: The forex broker is a medium that allows retail traders to buy and sell forex pairs and make money online.
Can I trade Forex without a broker?
Ans: From a retail trading perspective, it is impossible to participate in forex online trading without a broker.
Do I need a license to trade Forex?
Ans: No. Traders don’t need licenses, but brokers should take licenses from a regulating authority.
How do I know if my Forex Broker is regulated?
Ans: Check the broker’s website- regulation information is available in the about section.
Do I need a forex broker?
Ans: Yes, you need a broker to participate in online forex trading.
Can Retail Investor Accounts Lose Money?
Ans: Forex trading is a leveraged market where retail investor accounts lose money if they do not apply a proper money management system to avoid losing money rapidly.
Can a Forex Broker Steal Your Money?
Ans: Retail investor accounts lose money through unregulated brokers as they can steal your money anytime.
What is The Market Maker Broker?
Ans: When the broker works as a liquidity provider, it is known as a market maker broker.
Can I trade In an Unregulated Broker?
Ans: Yes, you can, but there is a risk that in case of any unexpected situation, you will not get any help from any authority.
Do Forex Brokers offer Cryptocurrency Trading?
Ans: Yes. Many forex brokers have started offering cryptocurrency trading but on CFDs only.