If you think about brokers as a partner, you will start to realize just how important they are and why you need to find the top online Forex brokers. While it will likely take experience to become a decent trader, you will likely make a few mistakes. The choice of brokers you select shouldn’t be one of those mistakes, so consider some helpful tips to finding the top online brokers available.
How To Find The Best Forex Broker Checklist
Review the Spreads
One criterion to consider when choosing your broker is the spread, which is a major expense or cost of trading and will be important for high-volume traders. Many times, spreads can vary widely on major currency pairs, so it is important to find out what Forex brokers are offering. Some top online brokers offer variable or fixed spreads. If you are unsure which option to select, consider how many trades you expect to do in a month and then compare it with a variable and fixed spread costs. If you are more active while the market is volatile, you may have a fixed spread better.
What is fixed spread in forex?
How is spread calculated in forex?
What is variable spread?
Review the Commission and Fees
If brokers use their own online platforms or institutional ones, they likely charge commission and have a lower spread. Their spreads are typically variable, while the commission is fixed, though they can and do offer discounted commissions on large orders. While this option isn’t for everyone, you can use them if you understand the commission rates.
How much do forex brokers charge?
Review the Execution - Market Maker, Dealing Desk, NDD
Online Forex brokers could be considered dealing desk or market makers, meaning that they act as a buffer between you and the market. In most cases, they will trade against you, the client, and will make money off of you if you lose the trade. While it may sound like a bad thing, they can offer more leverage and other incentives to use their services, making them a top choice among many.
Review the hours Hours
The Forex market is open 24/7/365, so it is important that your broker offer similar hours. While not every online broker offers 24/7 access to their platforms, you should find one that offers as much as possible and find out why the platform isn’t open 24/7. In most cases, maintenance is scheduled during off-hours so that no regular maintenance will interrupt platform abilities. Some brokers will also open earlier, especially from a weekend, so consider this if you will want to deal with Pacific or Asian markets.
Which Forex Pairs are available?
Not all forex brokers offer the same amount of currency pairs variations. Of course, all work with major pairs, but if you are in search of minors and exotics, your options might narrow down. While choosing a brokerage to trade with, find out which markets are available with the selected firm. If you want to trade USD/EUR - there is nothing to worry about since all brokers offer that. On the other hand, if you wish to trade Thai Baht against Rubble, you might have to spend some time looking for the right broker to cater your needs.
Which trading accounts are offered?
Being a newbie in forex, it is suggested to start with Micro and Mini accounts, where cent trading is possible. This is the best way to migrate from demo trading into a real live trading without risking too much funds. Mini accounts offer small deposit requirements with as little as $1 needed to start trading.
Forex trading platform is your gateway to currency market. With the right market analysis tools, advanced charting options, live news feeds, diverse order types, copy trading, indicators, and other features, your trading experience will truly blossom.
MetaTrader 4 and MT 5
Most popular software at the moment is Metatrader 4 and 5 with lots of amazing features, and various versions including desktop and web-based trading. Most brokers make sure to have the king of the software at your disposal.
THE MOST POPULAR FOREX TRADING PLATFORM
Metatrader 4 (MT4) provides robust technology and high security to enable traders to choose Forex or CFD positions without worrying about the stability of the platform. It offers instruments to follow price fluctuations, identify trend patterns through charts and graphs, and also deploy automated trading techniques to manage trades.
WHY CHOOSE METATRADER 4?
This electronic trading platform is used by new and experienced traders alike. It’s trusted by individual traders as well as large introducing brokers and trading companies. It offers excellent trading and analytical tools, and is flexible enough to implement simple as well as highly complex trading strategies. The platform supports trading in Forex, CFDs and cryptocurrencies.
EASIER TRADING WITH METATRADER 4
- Flexibility: There are several choices of currency pairs to trade in, as well as cryptocurrencies and CFDs.
- User-friendly: MT4 has a user-friendly interface that is suitable for traders of all levels.
- Customisation: Develop your own Expert Advisors (EAs) and technical indicators on Metatrader 4, to match your trading needs and practices. Windows and charts can be arranged for each profile according to your preferences.
- Efficiency: MT4 doesn’t slow down the performance of your PC or mobile, keeping disruption to a minimum.
- Charting tools: Advanced charting tools help analyze the technical aspects of the market.
- Expert Advisors: Trading robots enable the automation of trades and access to the platform’s algorithmic trading benefits.
- Language: The platform is available in multiple languages.
Deposits and Withdrawals
You want to have both deposits and withdrawals process to be as smooth, fast and easy as possible. Not all brokers offer the same variation of payment options. Some go with as little as credit cards only, while others provide lots of options including Skrill, Neteller, Webmoney, Paypal and more. There are brokers that offer cryptocurrency payments these days. Yes, you heard us right, not only trading crypto but also deposit bitcoin.
Educational Material, Seminars and Webinars
Some brokers go even further and attract new clients with their extensive trading guides, free classes and webinars, educational resources and one on one trading. A broker can be a great source of information, daily market analysis, various tools and gadgets to help you evolve into a professional trader.
Reviews from real traders
You definitely want to hear what other traders have to say about the broker you have selected. You can read the reviews, check out posts on social media such as facebook, twitter and instagram. Keep in mind that some posts can be fake. Like in everything else, scam has entered forex as well.
Is your broker regulated?
Regulation is something you should take very seriously. This can prevent scammers from taking your money. Below are top trusted regulators:
- CySec (Cyprus Securities and Exchange Commission)
- FCA (Financial Conduct Authority)
- BaFin – (Bundesanstalt für Finanzdienstleistungsaufsicht)
- Swiss Financial Market Supervisory Authority (Switzerland)
- SEC – Securities and Exchange Commission (US)
- CFTC – Commodity Futures Trading Commission (US)
- CSA – Canadian Securities Administration
- ASIC – Australian Securities and Investments Commission
Offshore regulation – such as licensing provided by Vanuatu, Belize and other island nations are less impressive and useful, however it is still much better then no regulation at all.
Forex Broker that does not offer demo account is s fraud. A Brokerage that requires a deposit before you open a demo account is a scam. We also not big fans of time limitations on practice account. The best broker will offer unlimited demo - practice as much as you want, get better, make money! Everything else is just smells fishy.
Leverage can go up to 1:1,000 however you do not want to go overboard with it. The higher the leverage the higher is the potential loss. We are not saying that you should stick with leverage as little as 1:50, but everything higher than 1:500 is just too dangerous to play with.
Yes, there are scammers. Our reviews are here to help out and filter the fraud brokers out and give you the list of reputable brokers you can safely trade with. With all these comparison factors included in our reviews, you should be able to minimize your search to top forex brokers, try their demo accounts, check out their platforms and features, take it for a spin with small minimum deposit. We are always happy to hear about your experience, so please leave your review and rating at the bottom of the broker you trade with. Your input helps other traders.
Forex Broker Reviews
To summarize all being said above, here is the table with reviews of the top forex brokers. You are welcome to compare and review these FX brokers yourself and find the one that works best for your needs.
|OctaFX||yes||up to 50%||50||OctaFX Review||9|
|LiteFinance||yes||30% + 15%||10||LiteFinance Review||8|
|XM||yes||$30 no deposit||5||XM Review||8|
|InstaForex||yes||$100 No Deposit Bonus||1||InstaForex Review||6|
|FxPro||yes||up to $1,000||100||FxPro Review||5|
6 Crucial Things to Consider When Choosing a Forex Broker
- Security. The first and foremost characteristic that a good broker must have is a high level of security.
- Transaction Costs. No matter what kind of currency trader you are, like it or not, you will always be subject to transaction costs.
- Deposit and Withdrawal.
- Trading Platform.
- Customer Service.
What's the difference between a dealing-desk and an agency broker?
If a forex broker is operating as a dealer, also known as dealing-desk, they will be on the other side of their client's trades. If a forex broker is not on the other side of their client's trades, they will be acting as an agent (agency broker) by routing the trade on to another dealer.
There are also hybrid-desks, which may operate as a dealing-desk and agency. Lastly, matched-principals are dealers who immediately hedge their trades to remove any potential conflict of interest.
Here are some ways to verify that your broker is legit:
- Check with Professional Organizations. One of the first things you should do is check with professional and regulatory organizations to see where your broker stands.
- Inquire at State Offices.
- Research Online Reviews.
- Get Personal Recommendations.
Based on actual user feedback, forex broker reputation can best be gleaned from various community review sites, facebook and google reviews, social media and traders' communities.
Can Beginners Trade Forex?
The answer is simple - Yes! Any beginner can start the career in forex trading online. Test your skills and knowledge with demo account and work your way up to minimize the risk. There is plenty of educational material on this site and on brokers' websites to go over and turn into a pro.
What is Forex trading and how can the top Forex brokers help you trade?
Chances are, you have already had experience of partaking in the Forex market in 2022. Have you ever travelled to a foreign country? Likely the country you visited used a different currency than the one you use in your everyday life, so you had to find a currency exchange booth at the airport, or visit a local bank, and exchange your spending money into the currency of the country you were visiting. When exchanging one currency for another you are participating in the most basic form of FX trading, via the Forex market.
Our reviews have already filtered out the scams, but if you are considering a different brand, avoid getting caught out with these checks;
- Were you ‘cold called’? Reputable firms will not call you out of the blue (This includes emails, or facebook or Instagram channels)
- Are they offering unrealistic profits? Just stop and consider for a minute – if they could make the money they are claiming, why are they cold calling or advertising on social media?
- Are they offering to trade on your behalf or use their own managed or automated trades? Do not give anyone else control of your money.
If you have any doubts, simply move on. There are plenty of legitimate, legal brokers.
Australian Forex Brokers
The Australian Securities and Investments Commission (ASIC) is the local regulator for CFD providers in Australia. You can view our best ASIC regulated forex brokers page which includes leading brokers with an AFSL licence including Pepperstone, IC Markets and CMC Markets. ASIC regulations mean brokers can’t claim they are an ECN broker, but you will find brokers such as Pepperstone and IC Markets still offer tight spreads with ‘ECN pricing’ from 0.0 pips AUD/USD spreads.
ASIC places trading conditions on brokers such as the requirement to segregate client funds. There were ASIC updates requirements, including reduced leverage from early 2021.
UK Forex Brokers
UK forex trading is regulated by the Financial Conduct Authority, which has restricted leverage for retail forex traders to a maximum of 30:1. Other trading conditions include negative balance protection, segregation of client funds, reporting and training. You can view our best UK forex broker page for the best FCA regulated providers based on the GBP base currency. Factors considered when making the short-list for this page include the forex trading platform offered (from MetaTrader 4 to cTrader), execution speeds and trading costs. Brokers considered ranging from eToro, forex.com to FxPro.
You can also view the UK forex broker section for a most comprehensive list of forex platforms, providers, and even a list of ECN brokers. Spread betting is also a unique feature for UK traders with a specific section for this trading.
South African Forex Brokers
The FSCA (Financial Sector Conduct Authority) is the local regulator for the South African foreign exchange market. Trading conditions unique to the FSCA include the requirement for a provider to have a local presence. The best brokers in South Africa like FXTM often have high-risk trading accounts with leverage exceeding 500:1, straight-through processing (STP), low spreads on major currency pairs such as EUR/USD and no dealing desk. You can view the best fx brokers in South Africa.
Traders can also view the South Africa forex broker section, including providers with ZAR accounts (base currency). Most non-ZAR account base currency is the US Dollar, while exotics like the Hong Kong dollar are rarely considered.
Beginners vs. Advanced Traders
Some platforms have easy setup features, hover tips, educational courses, and testing tools to make it easier for beginners to get started with forex. Then, there are platforms with customizable automated strategies that require extensive knowledge of scripting languages.
Before you jump into a platform because it is praised by forex traders, you should look at reviews and see if it’s easy to get into. You don’t want to lose money because you signed up for an active trading platform that relies on hotkey algorithmic bidding if you don’t know what that means.
Trading Forex with an ECN
Some forex brokers use Electronic Communications Networks (ECNs) to provide their clients with greater access to the forex market. An ECN combines different prices from a number of market participants.
Here’s the advantage: because of this, they’re usually able to provide clients with better bid/ask spreads than what is typically available.