Forex trading is fraught with huge stakes and even bigger hazards. This article will assist you in distinguishing between a fraudster and a legitimate forex broker.
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“I always knew I was going to be rich,” Warren Buffet famously said. I don’t think I ever had any doubts.” This level of assurance is required if you intend to trade in the foreign exchange or FX markets.
In some circumstances, currency trading is a precise science, and most traders concentrate on EUR/USD pairs. While Warren Buffett only dabbles in currency markets on occasion, he shares some insights in this forex trading interview. Furthermore, it is about comprehending clusters of good and poor luck.
But before you delve into the wild world of forex trading, you should ask yourself a few questions:
Do you wish to wager on the Euro and the USD?
Do you wish to investigate other currencies?
The forex market provides numerous advantages to traders seeking a highly liquid market. Monday through Friday, you can trade 24 hours a day. Are you prepared and available at all hours of the day?
To trade forex, you must first open an account with a brokerage that provides forex trading services. The finest forex brokers provide additional perks and trading tools designed specifically for understanding volatile currencies.
The finest forex brokers have a customisable dashboard that allows you to track any currency that is important to you. We tested the top 38 forex broker platforms in the United States and throughout the world and compiled this short list of our top picks.
We identified the top forex trading platforms based on low costs, trading tools, currency evaluation, and real-time data.
Top Online Forex Broker Platforms
Here’s our top pick of the best brokers based on fees, usability, and more:
- FOREX.com
Best Overall - IG Group
Best Premium Service - Interactive Brokers
Best Investment Selection - OANDA
Best for Veteran Traders - TD Ameritrade
Well-Rounded Platform for US Traders Only - Pepperstone
Best for Tight Spreads - eToro
Best for Copy Trading - Saxo Bank
Best App and Web Platform - CMC Markets
Best Budget Option
The Best Forex Brokers – Our Reviews
Since the global foreign exchange market is the largest in the world and most actively traded, there are different ways to rate each brokerage.
One type may be the best forex broker for beginners while others are better for advanced users. The most important factors include fees for spreads and commissions, trading platform software, charting tools, customer support, education, currency research, and reliability.
1. FOREX.com: Overall Winner
The FOREX.com web platform is intended to offer its users safe and low-cost forex trading.
FOREX.com offers a plethora of trading opportunities. FOREX.com is the ideal platform for both beginner and experienced forex traders, with a variety of trading tools and several research possibilities.
Pros
• A publicly traded firm with four tier-1 jurisdictions that is extremely safe.
• Wide range of assets available, including most currency pairs, bitcoin, CFDs, and stocks.
• Received multiple accolades for mobile trading, education, and cost-effectiveness.
• Competitive spread and volume pricing, which favors active forex traders
• Contains advanced trading platforms as well as MetaTrader.
Cons
• Inadequate customer service
• Encourages agency execution and higher-cost services.
FOREX.com is a well-known name in the market, having been founded in 2001. The brokerage has strong regulatory licensing and is now regulated by four tier-1 agencies. It has over 140,000 clients.
FOREX.com provides clients with access to 80 currency pairs, 20 stock index CFDs, 380 stock CFDs, 20 ETF CFDs, 29 commodity CFDs, and 9 cryptocurrencies. Unfortunately, clients in the United States and the United Kingdom will be unable to trade cryptocurrency with this broker, and US citizens will also be unable to trade CFDs.
With those two minor qualifiers out of the way, FOREX.com’s investment portfolio is fairly diverse. Using the most recent data available, FOREX.com’s typical spreads via MetaTrader were 1.4 pips on the EUR/USD (at the time of writing).
During the third quarter, there was also an average spread of 1 pip for EUR/USD, but only on non-MT4 platforms. If you are a high-volume trader, FOREX.com offers five categories of pricing that are extremely configurable and well-received by users.
For traders with a balance of at least $10,000, level one has a spread of 1.2 pips on EUR/USD exchange. Spreads are reduced as you progress through the levels, thus a level five must maintain a $500 million balance, which reduces the spread on EUR/USD pairs to 0.84 pips.
FOREX.com provides traders with access to the venerable and evergreen MetaTrader 4, as well as its little younger cousin, MetaTrader 5. Although both of these platforms are respectable options, the investing options offered to MetaTrader 5 clients are relatively limited, so we recommend avoiding them.
FOREX.com has its own own web-based platform in addition to MetaTraders. It has more than 70 technical indicators, 50 drawing tools, and an alert/notification system. The unique platform is highly flexible, easy to use, and supports a wide range of complex order kinds.
MetaTrader 4 and FOREX.com’s own platform both have mobile versions. Both are simple to use, intuitive, well-designed, and functional, although they lack order time constraints and a two-step login capability.
FOREX.com also offers dealer execution and never uses third parties to execute deals. Because FOREX.com operates in this manner, you may expect higher-quality deals.
Furthermore, STP Pro accounts for US traders have been added to the platform. Active traders in the United States also benefit from bigger discounts with this sort of account.
When it comes to research, FOREX.com is also among the top brokerages. Users will have access to high-quality third-party research, as well as a weekly webinar, a Reuters news feed, and an economic calendar. Every day, FOREX.com’s in-house research staff creates written material, with articles covering a wide range of topics.
FOREX.com’s minimum initial investment is 100 of your base currency – for US traders, that would be $100 – however the initial deposit is extremely cheap regardless of where you are from. In terms of fees, traders who have not been active for more than 12 months will be charged a monthly fee of $15.
Wire transactions of $10,000 or more are free of charge; however, transfers of less than $10,000 need a fee of $25 for a domestic wire transfer and $40 for an international transfer. Although these two non-trading fees are annoying, they are relatively minimal and should not be a problem for traders.
The brokerage also provides a 30-day demo account, allowing prospective clients to test out their platforms before committing. If what we’ve shared sounds tempting, consider opening a sample account – or read our whole evaluation of FOREX.com to discover more about this broker.
2. IG Group: Superior Premium Service
With its advanced trading tools, the IG Group online broker platform enhances the Forex trading experience.
Pros
• Cutting-edge web-trading platform
• Considered safe, and regulated by the FCA in the United Kingdom and elsewhere.
• Low spreads on popular currency pairs
• More than 16,000 markets
Cons
• No social trading platform/copy
• Expensive inactivity fee after two years
• US customers can only trade forex.
Whether you want to trade CFDs or currencies, IG has over 16,000 markets to choose from. Many traders appreciate IG’s extensive investment selection, which includes the option to trade FX, cryptocurrencies, individual equities, stock sectors, and commodities.
Only US residents can trade FX with IG, but the broker’s sophisticated features and low charges make it a viable competitor in the US market.
IG has been around for a long time and, interestingly, was the first of its sort. Today, IG is a top forex provider, offering affordable costs, excellent instructional content and research, and a wide range of assets. If you live outside the United States and want to trade other instruments, such as CFDs, IG has you covered.
Following the company’s entrance to the United States in February 2019, U.S. traders can now utilize IG U.S.’s tools and services; however, the product selection is now limited to FX only – CFDs are not currently available to U.S. clients. The CFTC and the NFA govern IG in the United States.
However, IG U.S. does provide 80 currency pairs, and the broker’s modest spreads make it an intriguing option for forex traders based in the United States. The currency pairs supplied by the company are divided into six categories: Major pairs, Minor pairs, Australasian, Scandinavian, Exotic, and Emerging Markets.
In various aspects, the broker caters particularly to forex traders, including providing larger volume forex traders with access to an aggressive rebate program. IG U.S. is also the only brokerage in the US to provide ProRealTime, a charting software suite that supports over 100 indicators.
Clients in the United States can pick between IG’s well-designed and user-friendly web platform and mobile/tablet apps, as well as the venerable MT4. Both provide advanced tools, as well as a Reuters news feed and an economic calendar.
Before we go on to the company’s overseas services, one more note to US-based investors: IG U.S. is now unavailable to residents of Arizona and Ohio.
In comparison to the industry average of 70 pips, IG has a minimum of 0.6 pips for EUR/USD trading. You can trade FX, cryptocurrency exchanges, individual shares, all stock sectors, bonds, and commodities using this.
Interest rates can also be traded using their mobile and browser-based platforms. However, after two years, there are high monthly inactivity fines. More information on their charge structure may be found in our IG broker review.
In the United Kingdom, the firm’s L2 Dealer provides professional forex traders with direct market access (DMA) that bypasses IG’s dealing desk. This platform is simple to use and adaptable.
In addition to being a top FX broker, IG is the largest CFD dealer based on trading income. Because it is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, IG has a solid reputation.
The majority of the United Kingdom has a big number of financial spreads in CFDs. IG also allows you to trade six cryptocurrencies as CFDs or spread bets, however bitcoin has a 40-pip spread, which is more than the industry average.
Traders can benefit from the company’s substantial educational resources regardless of their location. DailyFX Forex University provides educational and accessible material to traders of all levels. Its sense of comedy makes it easy for traders to approach what may be a difficult subject. Traders will love articles with titles like Meet Your Subjects, which refers to currency pairings, and How to Stay in School, which is about risk management.
The IG Academy can help any trader improve their knowledge of CFDs, spread betting, and FX trading. The courses are self-paced and contain interactive activities and quizzes to spice things up and put your skills to the test.
IG’s webinar archive contains a variety of previously aired sessions, allowing you to catch up on ones that pique your interest, and if you want to add any to your schedule in the future, browse the company’s webinar calendar to see all of their scheduled sessions.
Customer service is courteous and pleasant, and may be reached by phone, live chat, email, and social media platforms such as Twitter. New clients and old contacts have different phone lines, and the staff is available Monday through Friday, 24 hours a day.
There is no social/copy platform or client positioning data for forex, CFDs, or spread bets, however traders should be aware that forex positioning data is available at DailyFX.com via the IG Client Sentiment.
Overall, IG is appropriate for both novice and experienced traders. Depending on the country and currency, a minimum deposit is required when funding by card.
As one of the best in the U.K. The minimum deposit for forex trading platforms in the United Kingdom is £100. The fee for UK traders is £250, and the fee for US traders is $250. If you want to try out the platform, IG provides a demo account. Alternatively, you can register a forex account in just three simple steps and begin your forex journey.
Trading foreign exchange on margin has a HIGH LEVEL OF RISK and may not be appropriate for all individuals. Before you decide to trade foreign exchange, think about your investing goals, level of experience, and risk tolerance. You may lose some or all of your initial investment, and you should never invest money that you cannot afford to lose.
3. Interactive Brokers: The Best Investment Choice
Among all major forex brokers, Interactive Brokers has the most investing options.
It’s difficult to pinpoint the best forex broker, however Interactive Brokers (IBKRs) can help. Because no one else comes close, their sophisticated platform and various investment choices make it a favorite among all types of traders.
Let’s take a closer look to learn why IBKRs is our #1 forex broker.
Pros
• Cutting-edge trading platform
• Extremely safe and well-governed
• A large and diverse investment portfolio
• Reasonable commissions
• Superior research tools are accessible to assist traders.
• Available in the United States
Cons
• It is not the ideal choice for low-volume traders.
• The platform’s complexity necessitates time to master.
For a long time, IBKRs has been a trendsetter. This broker, which was founded in 1978, has licenses in six tier-one jurisdictions and now has over $8 billion in equity capital. Needless to add, their regulatory safety is among the greatest in the currency market.
Trader Workstation, the broker’s trading platform, is an extremely sophisticated tool. It is very customisable, with advanced charting and 20 various order kinds. TWS is a powerful piece of software, so powerful that it may be too complicated for complete beginners.
Although IBKRs does not publicize their spreads, its fees are extremely inexpensive – especially if you trade frequently. Customers are given pricing compiled from 17 major institutions that operate in the foreign exchange market.
While spreads are not paid, the broker does charge commissions ranging from $16 to $40 per million round turn.
The monthly fees, if applicable, are one of the broker’s few downsides. IBKRs charges a monthly maintenance cost of up to $10, but this fee is waived if you generate $10 in commissions in a calendar month or your account has a net liquidation value of at least $100,000.
In practice, this means that aggressive, high-volume traders will not be subject to such charges. Market data costs may also apply, but they are minimal and can be eliminated if you pay a specific amount in commissions.
One of the things that distinguishes IBKRs is the breadth of their investment opportunities. Currently, the brokerage offers over 100 currency pairings, bitcoin futures, and over 7,400 CFDs.
Interactive Brokers is a household name in the brokerage market for good reason. The company charges reasonable costs and provides a plethora of high-quality research resources, user-friendly apps, and cutting-edge tools.
The broker also provides a large range of well-produced educational content. IBKRs clearly realizes how intimidating their platform may be — a large portion of the educational content consists of platform tutorials aimed at newcomers.
IBKRs also has a great deal of research and news. Dow Jones, Morningstar, and Thomson Reuters are among the most well-known news sources.
However, some of the research tools are not free. Despite this, the broker deserves great scores in this category As IBKRs provides nearly endless research opportunities given their offering.
Although IBKRs has frequently been chastised for the poor quality of their customer service, we are pleased to report that the situation has much improved. Wait times are now lot lower than they were previously, averaging 1 to 2 minutes, and the helpful IBot mobile virtual assistant is also a very useful tool.
If you want to learn more, check out our comprehensive Interactive Brokers review.
4. OANDA: Best for Experienced Traders
For experienced forex traders, OANDA’s low-cost online trading services offer excellent chances.
If you’ve done any forex trading in the United States, you’ve probably heard of OANDA. It is one of only two brokerages in the United States. It also services customers throughout Asia, the European Union, and Latin America. Furthermore, it has the reputation of being the most reliable retail forex platform.
Pros
• Open a trading account with as little as $1.
• Extremely safe and regulated by the FCA, CFTC, IIROC, ASIC, and the Singapore Monetary Authority.
• Provides a standard broker spread as well as a less expensive raw spread on average.
Cons
• On average, assistance responses are slow.
• There are few to no new educational resources, and they are disorganized.
• Research and trending news are dispersed.
Oanda has been around since the dawn of retail forex trading. While it began in academia, the company has grown and established a reputation for being a reliable exchange.
It has more product choices, greater technology, and a dedicated customer base that covers the globe as a forex broker. Oanda has the most historical data and offers the most cutting-edge trading technologies for forex traders because it has been in business since the 1990s.
To trade with Oanda, you do not need to have a minimum account balance. Most traders rate the quality of trade executions as excellent, and it offers transparent pricing and fee structures, making it a more trustworthy forex broker overall. You may access a range of programs, including their MetaTrader 4 and MetaTrader 5 apps, both online and via mobile.
Many traders regard Oanda as trustworthy because it is regulated by several tier-1 authorities, including the Financial Conduct Authority in the United Kingdom.
5. TD Ameritrade: Comprehensive Platform for US Traders Only
TD Ameritrade enables Forex brokers to trade a large variety of currency pairs at a low cost.
TD Ameritrade allows you to trade nearly 80 currency pairs, but it’s the tools, research, and streaming data on the thinkorswim platform that make it a top pick for US forex traders.
Pros
• Established in 1975, this platform is extremely robust and trustworthy.
• Best-in-class platform and tool ratings, mobile trading, and research
• Competitive low-cost pricing for forex traders
Cons
• Only US traders
• No copy trading allowed.
• It does not support MetaTrader.
The cost of trading forex with TD Ameritrade is dependent only on the spread. In October 2019, the broker eliminated all trading commissions for equities and ETFs. TD Ameritrade, on the other hand, has a calculator that can assist you estimate the cost of carrying various currency pairs. This is mostly determined by the trade’s direction and order size.
Spreads for EUR/USD contracts averaged 1.06 pips since TD Ameritrade uses GAIN capital, which owns FOREX.com. This is based on data collected between October 2018 and September 2019. There is no initial deposit required, and you can use the thinkorswim platform without a subscription.
The thinkorswim platform is the greatest desktop-based application from TD Ameritrade. You may streamline your trading and improve your skills with so many tools and research capabilities.
You can use the Forex Trader module to display rates for up to six distinct pairings. There are 75 different currency pairs to pick from, and your dashboard can be customized to your liking.
For the charting tools, there are 382 technical indicators accessible. This is the highest in the industry, which explains why TD Ameritrade is popular among US clients.
In addition, there are over 80 different techniques that generate trade signals when a custom criteria is met. You can also use their simulator software to test trades.
6. Pepperstone is ideal for narrow spreads.
Pepperstone is a top-tier forex broker due to its low fees, tight spreads, and trustworthy reputation.
Pepperstone’s adjustable flexibility and affordable fees make it appealing to both beginners and veterans.
Pepperstone is a multi-award winning brokerage that offers minimal fees and spreads as well as a variety of highly configurable platforms. These, combined with their platforms, distinguish Pepperstone in the Forex market.
Pros
• Extremely narrow spreads and low fees
• A large variety of currency pairs are available.
• Numerous platforms are available.
• Excellent customer service
• Dependable, with strict regulation
• Imitate trading characteristics
Cons
• Not available in the United States, Canada, or Japan.
• Inadequate number of CFDs
Pepperstone was formed in 2010 in Melbourne, Australia. It is regulated by the ASIC and the FCA in two tier-1 jurisdictions and has seen rapid growth and industry praise since its start. Pepperstone is also licensed by BaFin, CySec, DFSA, SCB, and the CMA.
So, what is the key? A unique blend of investment offerings that are laser-focused, a large range of customized platforms and tools, and cheap fees and narrow spreads. The final and most crucial element is that Pepperstone provides clients with extremely competitive spreads.
There are no inactivity or withdrawal fees at Pepperstone, and there is no minimum deposit amount. The broker also provides a free demo account, which allows you to familiarize yourself with the platform of your choice.
When it comes to platforms, Pepperstone provides a plethora of options. There are three alternatives available: MT4, MT5, and cTrader. All of them are excellent options, and Pepperstone also offers a slew of paid add-ons for their platforms.
However, after everything is said and done, we must award cTrader a little advantage. When it comes to charting capabilities, this platform has an advantage over MTs, as well as a little more straightforward user interface. However, the difference isn’t significant; all of the platforms, as well as their mobile variants, are great options; the choice is primarily a matter of personal preference.
This ECN platform offers over 70 technical indicators and the cutting-edge cTrader Automate feature, making it the finest alternative for algorithmic trading.
Pepperstone also gives customers access to social and copied trading sites, such as DupliTrade.
Some of these platforms restrict minimum deposits and charge larger commissions, but they are still essential tools to have. We’d say eToro has the advantage in copy trading, although Pepperstone can absolutely compete.
The brokerage offers 62 currency pairs, however the availability of CFDs is significantly more limited. Pepperstone now has approximately 1,300 stocks, 17 commodity CFDs, and 25 index CFDs available. If CFDs and cryptocurrency aren’t your thing, the problem of investing offerings becomes moot.
While Pepperstone’s investing choices aren’t very spectacular, their modest spreads are. The spreads you’ll have to deal with are mostly determined by the sort of account you open.
Pepperstone has two types of accounts: regular accounts and Razor accounts. Regular accounts have bigger spreads but no commissions whereas Razor accounts have considerably lower spreads but also a fixed commission. Regular accounts will appeal to beginners more, but we’ve covered that topic in greater depth in our comprehensive Pepperstone review.
The average spread for normal accounts is 0.6 – 1.27 pips, while the spread for Razor accounts is 0 – 0.3 pips.
Pepperstone also has an Active Trader Program that rewards customers who make huge transactions with large rebates. However, the rebates only apply when you trade 100 lots or more, thus this feature is largely appealing to experienced traders.
Pepperstone provides an outstanding array of well-produced educational materials to customers. These include tutorials for the platform, webinars, instructional articles, and even a YouTube channel. The brokerage’s research tools, such as AutoChartist and Smart Trader Tools, are quite useful, though the scope of research and news is rather limited.
Pepperstone’s customer service is available 24 hours a day, seven days a week, and is generally highly helpful and quick to answer. Contact the brokerage by live chat, email, or phone.
Spread bets and CFDs are complicated securities that carry a high risk of losing money quickly owing to leverage. When trading spread bets and CFDs with this provider, 76.6% of retail investor accounts lose money. You should think about whether you understand how spread bets and CFDs work and whether you can afford to lose your money.
7. eToro is the best for copy trading.
CopyTrader on eToro enables you to replicate the trades of professionals for a minimum commitment of $200.
Whether you’re a complete novice or an experienced Forex trader, eToro provides features you’re sure to like.
You can essentially duplicate the trades of other registered users on eToro. Whether you are a beginner who lacks the time to study or an expert who lacks the time to trade, all you need to do is discover a successful eToro trader. You can imitate their trades, so you can replicate any trade they make. It’s no surprise that the brokerage recently surpassed 13 million users worldwide.
Pros
• Outstanding copy trading capabilities
• User-friendly and elegantly crafted
• Diverse investing options
Cons
• Standard research resources
• The number of currency pairs may be expanded
• Limited availability for some American citizens
Caution: Your capital is in jeopardy. 78% of retail investor accounts that trade CFDs with this supplier lose money. Consider whether you can afford to take such a large risk with your finances.
eToro was established in 2007. The broker is regulated in two tier-1 jurisdictions and one tier-2 country, just expanded its company to the United States, and will likely become a FINRA member within the next several months.
Currently, the broker provides 49 currency pairings, 13 stock index CFDs, and more than 2,000 stock CFDs. While eToro’s investment choices aren’t as diverse as those of its competitors, it offers enough diversity for novice and intermediate traders.
The platform is one of the features of the brokerage. Both the web-based and mobile versions are aesthetically pleasing and functionally designed. The web-based trading platform also offers a variety of advanced tools, such as full-featured charting and over 70 indicators.
CopyTrader is eToro’s most notable tool, allowing you to duplicate the trades, methods, and portfolios of skilled traders. The portal allows you to view the past performance of their investments and the riskiness of their tactics.
Simply designate a dollar amount to a certain trader, and you will make the same deals they do – generally less than one second later. Up to 100 traders can be copied simultaneously.
Copy trading is significantly different from what most brokers offer; if you’re interested in this form of trading but are still on the fence, eToro offers a demo account with $100,000 in virtual funds for practice.
However, the portal still features some outdated pricing. After 12 months without logging in, a monthly inactivity cost of $10 is assessed, and a withdrawal fee of $5 is imposed.
Recently, the minimum spread has been decreased, and clients can now trade EUR/USD with spreads as little as 1 pip. This may be a step in the right direction, but eToro still has a long way to go, as many of its competitors offer more attractive spreads.
Check out our eToro review if you’re interested in a more in-depth analysis.
8. Saxo Bank: Best Forex App and Web Platform
Saxo Bank offers Forex traders a wide array of trading instruments and advanced research resources.
If you can afford the $10,000 minimum deposit, Saxo Bank has an outstanding trading platform with incredible research tools, 40,000 assets to trade, and competitive pricing.
Pros
• Brokerage with extremely low risk and six tier-1 jurisdictions
• 40,000 forex, CFDs, stocks, ETFs, and mutual fund trading instruments
• SaxoTraderGo is the premier web-based trading platform with more trading tools and research capabilities than the vast majority of rival brokerages.
• Excellent customer service
Cons
• Even at low levels, Saxo Bank requires a minimum deposit of $10,000 to open a brokerage account
• Platinum members must deposit $200,000, while VIPs must have $1,000,000 in their accounts.
Saxo Bank is perhaps the most exclusive forex brokerage, but due to its low-risk, very reliable platform, it is regarded as one of the finest among forex traders today. The forex market offers 182 currency pairings and 35,000 CFDs for trading. In addition, social trading and duplicate trading are provided. However, cryptocurrency trading is prohibited.
There are classic accounts, platinum accounts, and VIP accounts. The major disadvantage of joining Saxo Bank is that a $10,000 minimum deposit is required for a basic classic account.
As of October 2019, the average spread for Saxo Bank was estimated to be 0.6 pips. This brokerage prioritizes spread-only pricing, so you will not pay any trading commissions.
However, for pricing based on volume, commissions are different. In these instances, you are required to pay a commission of 0.5 pip. This is still quite modest for active traders that utilize this form of deal most frequently.
With a selection of tools such as SaxoTraderGo and SaxoTraderPro, you’ll get access to more than 55 technical indicators for charging and about 20 drawing tools, including Auto Chartist’s trade signals.
You must subscribe and upgrade to have access to SaxoTraderPro, but once you do, you’ll have access to a wider array of trading tools, such as support for six monitors, streaming time and sales, and algorithmic, automated orders.
Read our comprehensive Saxo broker review for more information on SaxoTraderPro and Saxo’s other broker offerings.
9. CMC Markets: Best Budget Option
CMC Markets offers low-cost services and superior, user-friendly research tools.
As a publicly traded corporation regulated in four tier-1 jurisdictions, CMC Markets is regarded as a secure and low-risk FX and CFD broker. It is also the least expensive alternative for forex and active trading.
Pros
• Extremely competitive pricing for inexpensive trading commissions
• Extensive and varied product catalog
• Offers liquidity rebates to active traders whose monthly notional trading volumes exceed $25 million
• Available guaranteed stop loss orders
• News in real-time and complex order kinds
Cons
• Few security attributes
• No social trading platform or clone trading
• A significant US index for CFD spreads
Visit CMC Marketson the website of CMC Markets
Caution: Your capital is in jeopardy. 78% of retail investor accounts with this service lose money while spread betting and/or trading CFDs.
CMC Markets is optimal for both aggressive and novice traders. The platform provides a multitude of instructional resources and tools for learning about forex trading and CFDs, as well as a responsive and professional customer care team.
However, the company also caters to more experienced and active Forex traders who wish to take advantage of their 0.7 pip minimum.
In reality, CMC Markets offers low spreads and relatively low trading fees overall. Spreads for EUR/USD are as low as 0.70 pips on average and 0.81 pips on average due to the pair’s extremely competitive pricing.
However, this information is subject to change, so be sure to check the fees section for any revisions. Other forex brokers have set spreads, which has advantages and disadvantages.
In addition, CMC Markets prioritizes and caters to active traders. Extremely high-volume traders are eligible for a liquidity reimbursement ranging from $5 million to $10 million. There are additional VIP discounts offered for customers with a high net worth.
Traders especially appreciate CMC Markets’ Guaranteed Stop-Loss Order (GSLO). This implies that you can set risk limits for each of your positions, and the trade will be closed precisely as you request. CMC Markets really refunds the cost of GSLOs, although other brokers charge for them.
CMC Markets does not require a minimum balance to trade, and a free demo account is available to practice trading before opening a real account. The software offers over 79 technical indicators and charting tools.
The Next Generation platform provides access to pattern detection and social-trading technologies, although it lags behind the primary platform. For automatic trading, you can switch to their MT4 platform, however this sector has a steeper learning curve.
How to Evaluate a Forex Broker
If you wish to trade foreign exchange, you need first consider how much money and volume you intend to trade. The best forex brokers provide greater discounts to active traders, particularly those who engage in forex day trading, although you may be required to maintain a minimum account balance.
The majority of these criteria are spelled out when you open an account, but certain brokerages employ devious commission rates and fees.
Here is a look at how we determine whether a forex brokerage is worthwhile.
Is a Forex Broker Reliable?
If you run a search for forex, you may find numerous sponsored adverts for brokerages that do not appear on our list of the best forex brokers. This is due to the fact that they are likely frauds and lack tier-level jurisdictions. A forex trading platform must be compliant and regulated in order for you to know that it is trustworthy.
The majority of forex brokers are publicly traded and licensed in the United States, United Kingdom, Canada, Singapore, and Australia. These are the most trustworthy jurisdictions due to the investor protection regulations they apply. In the United Kingdom, for instance, the Financial Conduct Authority regulates currency trading.
There are governing bodies in addition to organizations. The CFTC has approved the National Futures Association (NFA) as a registered futures association in the United States.
In the United Kingdom, the Financial Services Authority existed (FSA). From 2001 to 2013, the FSA regulated financial institutions in the UK. After the 2008 financial crisis, the UK reformed its financial regulation, and the FSA became the Financial Conduct Authority (FCA).
Due to the significant risk associated with forex trading, you should be wary of any brokerage that appears too good to be true and is not based in one of the five countries listed below.
Company Policies
On their websites, the finest brokers list their account security measures, initial deposit requirements, account levels, and rules, but you should also examine the broker’s regulatory licenses. Also, how does it protect your funds from fraudulent forex traders?
Lastly, and most crucially, where is the company’s physical location? If it’s not situated in the United States, United Kingdom, Australia, Canada, Cyprus (CySec), or Singapore, you risk being defrauded like individuals who dealt with these Chinese forex brokers.
How Many Securities May You Trade?
The top forex brokers should be open to all currency pairings and allow you to trade cryptocurrencies, but if you only trade EUR/USD, this may not matter to you.
In addition to stocks, ETFs, options, mutual funds, commodities, and securities, some brokers offer forex. Before signing up, you should always review the list of assets and currency pairs.
Remember to look for brokers that enable you to trade all currency pairings. Some even permit cryptocurrency trading.
Forex Broker Platform Technologies and Trading Instruments
In forex trading, complicated instruments are utilized. With improved charting, analysis tools, automated trading, and backtesting, it is possible to become a superior trader. However, it is also important to consider the interface and whether these tools are accessible on all trading platforms, including mobile devices.
Many of the finest forex brokers provide a mobile app, but does it offer the same functionality as a desktop or browser platform? Furthermore, how safe is the trading platform? Some forex trading platforms protect your anonymity at all costs by utilizing a VPN.
To the surprise of many, there are a lot of excellent Forex trading applications available. Due to the advantages of modern technology, Forex trading can be conducted on a smartphone. The finest forex trading applications offer a significant amount of the same technology as the aforementioned brokers.
Forex Spreads and Transaction Fees
Most brokers do not charge fees at this time, particularly in the United States. However, foreign exchange trading is based on the total order cost, or the open-to-close spread.
In addition to the spread charges, round-turn commissions are also payable for each trade. Bidding and asking spreads, in addition to a commission per trade, are the same for CFDs as well.
Reliable Trade Execution
Active forex traders are aware that your data and orders must be precisely timed. The execution strategy is crucial for forex traders because badly completed trades invariably result in losses.
Most current FX brokers offer free stop-loss order protection features, but that is insufficient. A broker should offer several order types that enable you to fully automate your trades; hence, if you plan ahead, there is no need to remain in front of a computer screen all day.
Most prominent brokers provide fast execution, however day trading cannot be conducted efficiently without stop-loss orders and other order types.
Customer Service
When something goes wrong with a trade or if the app is malfunctioning, you should be able to immediately contact someone. There are a few brokerages that offer this chat service around-the-clock, seven days a week, which is nearly unprecedented.
Phone support is the best way to receive assistance for complex issues, but not all brokerages offer it. The response time is the most critical factor. If you choose a global exchange in a different time zone, you may not be able to receive assistance if something goes wrong.
Increasing Your Schooling
The majority of brokerages provide some knowledge base resources, but there are others that provide an abundance of research tools and educational programs. In addition, nearly every forex broker offers a demo account, which enables you to practice trading on the markets using phony, virtual currency.
Pepperstone is a forex trading platform that narrowly missed making our list. Pepperstone, the premier forex platform in Australia, provides a wealth of instructional tools, including articles, videos, webinars, and market simulators, in addition to a very intuitive platform with a demo account option.
Similar to the majority of forex brokers, Pepperstone provides a user-friendly trading platform with a demo account.
You can also obtain step-by-step forex trading guides. Check out their help websites and customer satisfaction ratings while looking for an FX broker that provides education.
You may be surprised by the number of external factors that impact the foreign exchange market; for instance, GDP has a significant impact. Numerous daily-changing factors influence the value of the US Dollar and other currencies. Learning all of this begins with the instructional resources provided by your chosen forex broker.
Perhaps you have questions about what a market maker or retail investor account is. How does foreign exchange trading vary from trading equities on a regular stock exchange? If you’re new to the forex market, you need a forex broker that provides the necessary materials to get you trading-ready.
Beginners vs. Advanced Traders
Some platforms include simple setup options, hover suggestions, training courses, and testing tools to make forex trading simpler for newcomers. Then there are platforms with configurable automated tactics that necessitate substantial scripting language skills.
Before committing to a platform because it is lauded by forex traders, you should read reviews and determine whether it is simple to use. You don’t want to lose money because you joined up for an active trading platform that use hotkey algorithmic bidding if you don’t understand what that phrase implies.
Forex trading using an ECN
Electronic Communications Networks (ECNs) are used by some forex brokers to give their clients better access to the currency market. An ECN aggregates the prices of numerous market participants.
Here’s the benefit: as a result, they are frequently able to give clients with better bid/ask spreads than is common.
Should You Consider Trading Forex?
In terms of personal financial services, trading on the FX market has some advantages over the stock market. It is the largest financial market, for starters. Monday through Friday, trading is available nonstop.
If you want to be a very active trader and research currency pairs, you can get started without a large initial investment. Most brokerages have minimal or no account minimums, and forex trading is inexpensive compared to options and stocks.
Although there is some danger, it may be substantially reduced by selecting a reputable broker and practicing tactics prior to investing real money. Some tactics carry a significant degree of risk, but may offer substantial payoffs. In some instances, there are 183 currency pairs on the foreign exchange market.
With huge trade volumes, it is also highly liquid. You are confident that someone will trade with you, and you may automate your trades depending on specific buy and sell conditions to increase your profits.
Forex is technically not owned by anyone. There will never be a single corporation that controls the market. This leveled the playing field for all participants. There are no intermediaries because it is likewise decentralized. When you trade on the forex, you do it directly with another trader. The role of the retail broker is only facilitative.
Nonetheless, you must study spreads, transaction costs, and currency pairs. You must also monitor trends for developing cryptocurrencies and recognize that there is a high degree of risk when investing heavily in currencies that do not follow the expected pattern.
Most forex brokers have a limited cryptocurrency offering for established digital currencies, while some accept a wider range of cryptocurrencies. You are responsible for determining which will yield a profit.
Are you concerned about losing money in forex? Utilizing popular forex trading tactics that leave little space for human mistake is a fantastic way to trade safely.
In Conclusion: Who is the Best Forex Trader?
With simple access to tools and low transaction fees, we still believe IG to be the ideal platform. However, CMC markets are ideal for those who desire access to a greater number of currency pairings and instructional resources.
Due to its trade execution and pricing transparency for active traders, OANDA is likely the best choice for advanced traders, whilst eToro shines out for cryptocurrency trading. To pick the ideal broker, you must understand yourself and your trading style.
