Which Are The Best Forex Brokers?

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Which Are The Best Forex Brokers?

Forex brokers are an essential intermediary to help you trade foreign exchange quickly and, potentially, successfully. Apart from simply executing trades on behalf of their clients, modern brokers offer a suite of services and tools which were once exclusive to institutional investors. There is a lot to learn about trading forex, but once you know the basics the best way to continue learning is to start trading.

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Choosing a Forex Broker

In order to choose a forex broker that is right for you, you need to understand what your trading needs. To start off, it is important that you identify whether you’re a newbie or an experienced trader. Different online forex platforms may cater especially to specific experience levels. You could, for example, have one platform dedicated to newbies which offers simple tools and lower fees, while another platform may offer extensive charting and analyses tools whilst charging a premium for their use.

The Qualities of a Good Forex Broker

Understanding the features and characteristics of a good forex broker is important, as choosing correctly can improve the overall possibility of profitable trades. Picking the right forex broker is as important as choosing the right stockbroker, however, the essential criteria to look out for can be different. The following are some of the main characteristics to look out for.

Fees

Fees play a significant role in defining a good broker for you since they can determine whether you will make profitable trades or not. This fact is especially true if you are, or plan to be, a high volume trader, with tens of trades per day. When comparing multiple broker fees you will realise that for the exact same trade, fees can vary greatly, sometimes up to 10 times or even more. You should also look at ancillary or administrative fees, such as inactivity, withdrawal, deposit, and financing fees.

Markets

forex markets

A good broker for you must, naturally, offer you the possibility to trade in the markets you desire. While practically any respectable online forex broker would offer major pairs, such as USD/EUR and USD/GBP, it will be more difficult to find brokers offering EUR/PLN or AUD/NZD.

Platform Functionality

It might sound obvious, but a good forex broker must offer a functional and user-friendly online platform for you to use. Complex platforms or convoluted ways to place orders can result in trades made at higher prices than you would have liked. Furthermore, you might be discouraged to learn more about forex trading if the platform you use lacks sufficient educational and charting tools. The best way to determine a platform’s functionality is by using a demo account, which is normally offered by the most reputable online forex brokers.

Minimum Deposits & Payment Methods

While it is acceptable to set a minimum limit on deposit or trade value, you need to ensure that this limit fits into your investment goals and strategies. Forex brokers targetting advanced traders normally set higher limits, while those targetting beginners set low or no limits. When it comes to payment methods, however, the best brokers offer a selection of popular options, no matter what type of trader they are seeking.

Reputation, Regulation & History

Checking a forex broker’s reputation online is easier than ever, with several reviews written by current or past clients. Don’t read too much into single reviews, as their motivation may be to simply tarnish the firm’s reputation. Instead, look for general positive or negative trends based on tens or hundreds of reviews. Research the broker’s history and identify whether it or its parent group are licenced or regulated in any jurisdiction.

Which are the Best Forex Brokers Around?

The following forex brokers are considered amongst the best since they excel in one or more of the above criteria. Once again, depending on your trading strategy some brokers might make a better fit than others, so be sure to have defined your strategy before reading on.

Plus500

Plus500 specialises in offering traders the possibility to invest in advanced financial instruments called Contracts for Difference. These high-risk investments offer traders the opportunity to benefit from gains or losses in the forex markets without the inconvenience of needing to physically purchase and store different currencies. It is also important to keep in mind that CFDs are complex financial instruments, and that 80.5% of traders lose money on this platform.

Plus500 offers forex users access to a free demo account, while those trading for real only need to place a minimum deposit of $100. The company, through its numerous subsidiaries, is licenced and regulated by the FCA, CySec, and ASIC.

Using Plus500 is extremely easy, and account set up takes place in a matter of minutes. You can access your trading platform using the web or mobile app. The platform offers you the opportunity to trade over 70 different pairs, with tight, variable spreads. Furthermore, apart from trading forex, you can also trade in other assets, such as Bitcoin CFDs as well as stocks and options.

76.4% of retail CFD accounts lose money

XTB

Founded in 2004, XTB is an online forex CFD broker which is regulated by the FCA. The company is listed on the stock exchange and has a presence in over 11 countries worldwide. It has won several awards, including, most recently, the EMEA Bloomberg top spot for FX accuracy in 2018.

If you would like to learn how to use XTB you can start by making use of its convenient and free demo account. This will give you access to the platform’s extensive educational and market analysis tools, which you can use to simulate real trades without the risk of losing any money. XTB’s platform is available on the web as well as on Android and iOS apps.

In order to start trading with XTB, you need to put down a minimum deposit of $250. There are three types of accounts, depending on your trading habits and experience, but all of them give you access to over 50 forex pairs. Beyond forex, you can also use XTB to trade shares and cryptocurrencies.

77% of retail CFD accounts lose money

eToro

eToro is one of the world’s best-known forex brokers, not only due to its intensive marketing efforts but also due to its popular social trading feature. You can use eToro to emulate the orders made by previously successful traders with the hope of benefitting from their future successes. This feature is especially useful for beginners, who have not yet settled on a successful strategy and are looking to learn from others.

eToro offers all of its users access to a free demo account which, like their real platform, can be accessed on the web and through mobile and tablet devices. All users get access to over 50 forex pairs, but some of these can be more expensive than other online brokers. The company is FCA regulated and offers users one of the most extensive lists of payment methods, which also includes PayPal.

75% of retail CFD accounts lose money

Trading 212

With a strong presence in both the UK and Bulgaria, Trading 212 is regulated by both the FCA and FSC. The company has built its forex trading capabilities on its mobile platform and is, therefore, the best choice for traders looking to trade forex on the go. The platform, which includes a free demo account, if accessible through Windows, Android and iOS devices.

With only 33 forex pairs available for trading, Trading 212 doesn’t offer the most comprehensive list of options in this list. However, if you’re looking to trade major pairs, such as GBP/USD, EUR/USD or GBP/EUR, then you needn’t look beyond Trading 212. Minimum deposits are set at $100 and you can use one of over 10 different payment methods, including eWallets, cards, and instant bank transfers.

Trading 212 offers some of the highest leverage in the market, but it is important that you understand the fundamentals of margin trading before you begin. While professional accounts can avail of leverage of up to 1:300, retail investors in the EU will have a cap of 1:30.

80% of retail CFD accounts lose money

IQ Option

Based in Cyprus and designated as a Cypriot Investment Firm (CIF), IQ Option is regulated within the EU by the Cyprus Securities Exchange Commission (CySEC). The forex broker is extremely popular amongst beginners and hobby traders since it allows minimum deposits starting at $10. Nevertheless, the platform offers a variety of useful and advanced tools, which make it just as attractive to more experienced traders.

IQ Option offers users a free demo account, where they can simulate trades of around 22 forex pairs, including EUR/USD and GBP/USD. As this broker’s forex trading increases in popularity, the number of pairs available is expected to increase. Even though the choice is not great, IQ Option charges some of the lowest spreads in the industry, and traders get the possibility to trade other assets, such as cryptocurrencies and binaries.

77% of retail CFD accounts lose money

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