The foreign exchange market has been at the forefront of the most active financial markets in the world. When you look for the best Forex broker, there are several features you need to consider before choosing one that is apt for your needs.
You need to consider product offerings, fees, trading platforms, trading experiences, and customer support, to name a few. Do you want to avoid going through the trouble and want a reliable, trustworthy answer?
Well, this article has just what you need. After thorough research, we have found the top five forex brokers for you.
Top 5 Best Forex Brokers of 2021:
- AvaTrade: Overall Best Forex Trading App
- XTB: Best Customer Service
- FXTM: Best for Lowest Fees
- IG: Best for Traders from the U.S. & Most Trusted
- Vantage FX: Best for Deposit Bonus
5 Best Forex Brokers [Reviews]
#1. AvaTrade: Overall Best Forex Trading App
Since 2006, AvaTrade’s large-scale trading instruments have become one of the best Forex brokers in this market. Particularly, AvaTrade specializes in copy trading with various software like DupliTrade, ZuluTrade, and MQL5.
A copy trading site will let you pick an expert trader to follow and copy trading movements. AvaTrade brings you a broad spectrum of automated trading sites, and these platforms include proprietaries like AvaOptions, WebTraders, the heavily acclaimed AvaTradeGO mobile applications, and the MetaTrader.
AvaTrade gives its users a customer-focused experience on every platform they have. They also offer 24/7 customer support service that speaks 14 languages, making them accessible to almost any linguistic background.
- $0 commissions
- Low spreads
- $100 minimum deposit
- Regulated in 6+ jurisdictions
- Over 250 trading instruments (crypto, FX, CFDs)
- Various trading platforms for any experience level
- Multilingual customer care
- Might be best for copy trading only
AvaTrade has made steady progress in enhancing and expanding its services, including copy trading. It has led to it becoming competitive among other industry leaders like Pepperstone and eToro. Recently, AvaTrade also launched AvaSocial in the United Kingdom. However, it does not allow automated traders’ copying.
Among the other state-of-the-art features of this trading platform, you will find they have one-on-one sessions as well. So, you can opt for a training session with a manager of personal accounts. You will not find many other brokers who are so dedicated to their clients.
Approach Towards Education
In addition, AvaTrade uploads daily videos on market analysis on YouTube. They also provide you with content on their educational website called The Sharp Trader. Moreover, they have an e-book for clients to download free of cost.
Seven Regulations and Security
You will benefit from this site’s seven regulations and its top-notch security. The Central Bank of Ireland is also one of its many traders, proving how trustworthy this network is.
For example, a broker holding their clients’ money in different accounts can provide quick withdrawals and extra security. Additionally, the platform has 256-bit SSL encryption across it for the prevention of identity theft and credit card fraud.
When using this trading platform, you will not need to worry about losing money due to hackers. It is not only publicly traded, but it also does not run a bank. Various regulators, including the following, authorize it.
- Three-tier: one regulator (high-level trust)
- Four-tier: two regulators (average-level trust)
- One-tier: three regulators (low-level trust)
The proprietary platform WebTrader has a well-designed and responsive interface. In fact, AvaTrade has been highly acclaimed for its innovativeness and speed of evolution by multiple sites and reviews.
Its charting has 90 indicators, and the suite of tools for trading from Trading Central is integrated directly into the site. WebTrader still works well in comparison to the depth and richness of features found on other proprietary platforms, which include industry leaders like Saxo Bank, CMC Markets, and IG.
AvaTrade offers AvaOptions to option traders who can deposit at least $1,000. The platform is available for mobile and desktops, with its desktop version only for Windows.
Furthermore, the users must install Microsoft’s NET Framework 3.5 SP1 to run its desktop version. The site’s layout has a complex structure and is clearly suited for a professional.
#2. XTB: Best Customer Service
XTB is one of the largest Forex traders in the world and gets regulated by numerous authorities, like the Financial Conduct Authority. XTB gives you access to a broad spectrum of over 1,500+ global industries, including indices, Forex, commodities, crypto, and ETFs.
It does not matter if you are an expert or a novice trader, as you will love this trading platform. You can attribute this adoration to the award-winning, easy-to-use site with superior execution speed.
This trading site is simple and intuitive, letting you manage the investments easily and quickly. Moreover, XTB brings you three platforms — mobile, web, and desktop app.
Some of the major XTB features include risk management, such as economic calendars and accessible market sentiments. The customizable trading charts are also a notable feature that will make your trading life much easier. Additionally, if you want to check out the platform, the site will offer you a demo account free of cost.
- Regulated by the Financial Conduct Authority
- Over 1,500 financial instruments
- Easy trading platform for beginners and experts
- One of the top traders in the market
- 15 years of experience
- High fee for stock CFD
- Scarce fundamental data
xStation Web Platform
This platform is great for beginners and ensures easy-to-use access. However, it also has advanced features to satisfy the wants of advanced traders as well.
Mobile App and Desktop App
XTB’s mobile application is available for Android and iOS, enabling you to access 1,500+ markets with the click a button. On the other hand, the XTB desktop application has the same tools as the web version, along with compatibility with Mac and Windows.
Variety of Assets
XTB will give you a broad spectrum of assets for trading that include the following:
- Forex – Over 45 currency pairs, spreading as low as 0.1 pips
- Indices – Over 20 top indices from across the world, including China, Germany, and the United States, and the leverage of indices spreads up to 1:500
- Commodities – XTB lets you trade a broad spectrum of widely-used commodities, including oil, silver, and gold, and the leverage goes up to 1:500
- Stock CFDs – You will be able to trade CFDs on over 1,500 as shares. The execution will be ultra-fast, and the leverage will go up to 1:10. With stock CFDs, the platform gives you low commissions, starting from 0.08%
- ETF CFDs – XTB brings you over 60 ETF CFDs, with leverages going up to 1:10, negative balance security, and low commissions
- Cryptocurrency – XTB lets you trade CFDs on various top cryptocurrencies, like Stellar, Ripple, Ethereum, Litecoin, Dash, and Bitcoin
You will find XTB to be one of the best Forex brokers online. The company is regulated and has 15+ years of experience. Furthermore, the site has offices spread in 13 different countries, including France, Germany, Poland, and the United Kingdom. The platform’s low spreads and high range of assets make it one of the most popular options out there.
#3. FXTM – Best for Lowest Fees
FXTM was created as a global FX and CFD broker in 2011. Cyprus Securities, Exchange Commission, and other authorities across the world, including FCA, regulate the Cyprus-based platform. Regulation from these top-tier institutes makes it a low-risk broker.
The various types of accounts offered by this site determine the exact amount of fees you need to pay. The spreads might be high, but they are free of commission in basic accounts. On the other hand, ECN accounts might charge a commission on low spreads.
- Regulated and licensed broker
- Available across multiple jurisdictions
- Various financial instruments
- Instant execution
- No hidden fees or commissions
- Tight spreads
- Only limited countries get service
FXTM asks you to pay the commission for starting a position. However, the amount might decrease. The amount gets affected if you trade more and/or hold a higher balance in your account.
FXTM will add most of the fee into the cost of the spread, and the fees are very reasonable for Forex trading. Additionally, the company has no deposit fees and a reasonable inactivity fee. The inactivity fee is $5, only if you do not trade for six months. However, you need to be aware that the fees are high for CFDs.
FXTM has currency pairs constituting the four basic currencies — GBP, EUR, NGN, and USD (available to Nigerian traders). The broker also gives you cryptocurrency and stock trading. When you create an account on FXTM, you will only have to pay $10.
Availability of Services
Although the platform accepts clients from across the world, there are some exceptions. According to a disclaimer, FXTM will not provide its service to the residents of the following places:
- The United States
- Puerto Rico
- The Democratic Republic of Korea
- Hong Kong
FXTM does not have an original platform for trading, but its MetaTrader has easily customizable platforms. It offers a broad spectrum of features, including order confirmation, clear fee reports, and price alerts.
According to the place you live, you will be able to attend FXTM’s Forex seminars that it hosts in-person for additional guidance.
#4. IG: Best for Traders from the U.S. & Most Trusted
IG has an expansive selection of pairs and easy access for all traders based in the United States, making it an obvious option for anyone who wants to go into the Forex market. IG has a user-friendly interface with a very small spread fee, social customer care, and a mobile application.
IG, unlike other trading sites, does not intimidate clients with numerous options. The IG platform for the United States gives starters and advanced-level traders an easy and intuitive interface, which is easy to navigate for clients’ convenience.
Additionally, clients can browse through available trading pairs and make bids while enhancing their knowledge.
- NFA regulated
- U.S. traders can avail of the services
- Spreads from 0.8 pips on USD/JPY and EUR/USD
- Free account for demo
- No commissions upfront
- Powerful platform
- Friendly interface
- Enhanced MT4 access
- Slow customer care
The IG Academy helps provide starters with every piece of information they need to know. This information helps beginners with trading strategies. On the other hand, it helps veterans enhance their knowledge of advanced strategies.
Primary Market in the U.S.
Although IG brings CFD trading for all citizens, its platform in the United States has become the primary marketplace for the citizens. United States citizens will be able to trade a long list of pairs and take advantage of no upfront commissions.
Additionally, these clients are also entitled to demo accounts for them to get started. However, the residents of the state of Ohio are an exception to this policy.
The IG platform for the United States has unmatched flexibility as well. You will be able to pick between browser-based platforms and mobile applications, and you can use either to make bids and browse spreads.
Additionally, clients will also experience the IG site free of cost with complimentary demo trading accounts.
Although global clients can leverage trades of CFD, clients from the U.S. might also access the Forex. In addition, IG shows off an admirable offerings’ catalog.
IG’s Forex spread in the U.S. will give customers more than 80 pairs of currencies in multiple categories, such as the following:
- Minor pairs
- Major pairs
- Regional pairs, including Australasian and Scandinavian
- Exotic pairs
- Emerging market pairs
Furthermore, the minimum spread available for major pairs begins at 0.8 pips on the platform. This is an appealing rate with the typical spread values ranging from 0.9 to 5.4 pips.
IG U.S. will not charge you anything initially during commissions, and spread costs and competitive fees ensure a quick and easy beginning. Additionally, commission charges are according to the “cross” between the asking price and the bid.
Overall, the United States IG offers an intuitive and friendly trading site for clients from the U.S. interested in this industry. You will not find competition for its fees, low account minimums, and simple access.
#5. Vantage FX: Best for Deposit Bonus
This Australian platform, which was founded as MXT global originally in 2009 and then rebranded in 2015, is a top competitor. Vantage FX will help you to get the most out of the deposit you started with.
To get your 50% deposit bonus, you will have to submit a form for opt-in while making a deposit of $200 to $500. You will have to pay this amount within ten days of creating the account. After that, you can get the bonus converted to real money when trading.
You will not even have to pay a deposit fee, and you can avail of this offer with MT4 ECN, MT5, and MT4 STP accounts.
- 300+ trading instruments
- Leverage up to 500:1
- Free trading signals for Forex
- Mobile application for Android and Apple devices
- 50% welcome bonus for beginners
- Investor protection available only in the United Kingdom
Trading costs are according to the type of account you pick. Generally, the RAW ECN account based on commission is the perfect option for budgeted traders.
In addition to a huge deposit bonus, this platform gives Forex and CFD traders over 300 instruments for trading. You also get a MetaTrader platform, numerous social platforms for trading, and mobile applications.
Vantage FX proves its authenticity and uniqueness by giving you a broad spectrum of add-ons. You can also get a number of compatible features from third-party givers, like Trading Central.
Vantage FX gives you a Pro Trader library in addition to the materials from third parties and MetaTrader site tutorials. This library consists of over 130 videos to educate starters.
License and Safety
The platform has an Australian Financial Services License from the Australian Securities and Investment Commission. The FCA and other traditional regulatory bodies look over the broker. However, you need to remember the platform is not traded publicly and will not work in a bank.
How We Made This List
To save you from tiring research, we have included in this article some of the best Forex brokers. We have looked at and researched various factors before handpicking the best for you. Here are some factors we considered.
If you want to avoid Forex scams, it is important to have a properly regulated broker. The stringent regulatory framework prevents any action considered unsavory by your broker. However, if anything happens, you can always look at going the legal way to settle the problem.
In addition, you need to be careful of the Forex brokers licensed offshore, specifically in Vanuatu, Belize, and other island nations. The coverage will give you virtually no protection, as the various dispute-resolution structures are usually only in name.
To see whether a Forex broker gets regulated or not, you need to find the registration number present in the disclosure. You will find it in the footer of the homepage of the broker, and you can then search for the firm on the regulator’s site to ensure the number.
We have ensured all of our recommendations get regulated properly to make sure you do not get scammed.
- Trading Platform
First, you need to consider if you want a desktop trading site, a web trading site, or a mobile trading site. You can use your choice on any electronic device with internet access.
After you decide how to complete your trades, the trading platform you pick will be according to your personal preference. This is because most trading sites give similar services but have different looks and feels.
However, the good news is that you will find many trading sites configurable to tailor to your needs. Since the site is the center point of your whole trading experience, you would want to ensure you pick one that is easy to use.
Your trading platform should also come with every trading tool you require. This can include future pricing, charting options, diverse order types, live news feeds, and automation. Therefore, all of the recommended sites have an easy-to-use interface for you to function efficiently.
- Minimum Deposit
If you are a beginner in Forex trading, you probably would not want to invest a huge sum right off the bat. For a small-time, new Forex broker, it is a danger you cannot afford. The minimum deposit many Forex brokers have ranges from $10 to $1,000.
Therefore, you need a broker who has options for trading on the cheaper end of the scale, provided you do not want to risk all of your savings when trading Forex. So, all of the advised platforms in this article have low deposit requirements (if any).
- Fees (Spreads and Commissions)
When you trade CFD assets and Forex, you have to pay commissions and spreads for your broker’s services. One broker might ask you to pay notably more than the other for the same kind of trade. Therefore, it is a primary need to compare online brokers’ cost of services before making a decision.
A spread is an all-in charge to finish every trade, and your broker might keep the spread variable or fixed. A variable spread changes according to traded assets, available liquidity, and volatility. Additionally, a broker might also charge you a commission depending on how much you trade.
Either way, you need to ensure you read the documents, including the fine print, for any “hidden” charges. Brokers often charge traders additional fees for withdrawals, overnight financing fees, and inactivity.
- Financial Instruments
Forex is only one thing in the whole set of financial instruments or assets which you will be able to trade. These assets include shares, cash, bonds, physical commodities like gold, agricultural products, and oil.
When you pick an online broker, you must ensure they support all of the instruments you would like to trade. All of the advised companies in this article will help you trade almost all of the assets you want easily.
- Withdrawals and Deposits
Forex trading includes regular moving of funds to the broker and from the broker. Therefore, you need to ensure you can do it efficiently, quickly, and also cheaply, if possible.
In addition, you need to check the withdrawal and deposit methods that a broker supports. This will let you decide whether they permit credit card use or the use of any other payment method you favor. Additionally, you will also be able to determine how long each transfer takes.
Furthermore, keep an eye out for any hidden fees for deposits or withdrawals your broker charges. These fees add up to a huge sum over time, which is not ideal.
- Demo Accounts
Many credible brokers allow you to make a demo account to try out their site without risk before you buy. If you reap the benefits of this opportunity, you can determine if that online broker is a good fit for you or not.
You can feel free to create a demo account on multiple platforms with different brokers to help you make the decision.
Additionally, a demo account will also let you familiarize yourself with the platform and verify various strategies, which will help you prevent run-ins with potentially costly mistakes. All of the sites we recommend in this article will give you an opportunity to run a demo test with them.
It should be your top priority to keep your money safe. Many Forex brokers might make you feel more confident than others because of the regulator. The regulator is where a broker gets licensed, and user information security actions have their place.
For example, one broker might have FCA regulations confined upon them, while the other only has registration evidence. Regulation plays an important role in keeping your investments more secure.
Furthermore, it would be best to look for any additional protection layers, such as two-factor authentication. However, this is purely for your peace of mind. We have ensured you get the best forex trading platforms with maximum security, so you can proceed without worry.
When you pick an online broker, you will have to think about your immediate needs. There are numerous questions you need to ask yourself while looking for an acceptable broker. Here are some important ones.
Are You Just Starting?
You want a broker with a thorough education on Forex and the CFD market. Additionally, they also should have strong customer service policies to make it easier for you.
What Amount Can You Put Aside?
You need to ask yourself what amount of money you want to put aside for trading.
Multiple Forex brokers offer low-to-zero deposit requirements, which can prove to be a great choice for traders who have limited funds. Additionally, most brokers also ask you to pay low spreads and transactional fees.
Do You Travel Frequently?
If you are always on the go, you might need a full mobile site. Multiple Forex brokers give you comprehensive mobile applications with almost all of the features that their computer supplements do.
What Level Trader Are You?
Ask yourself whether you are an intermediate-level or an advanced-level trader. Sometimes, Forex brokers might give you more bells and whistles that seasoned traders need, which includes advanced types of orders and fully featured charting platforms having multiple analytic features.
Do You Like a Broad Range of Instruments While Trading?
The products Forex brokers bring differ with each one. Therefore, you want to pick a broker that gives you a broad range of tradable offerings. This includes indexes, currency pairs, commodities, cryptocurrencies, and shares.
After visiting all of these factors before considering your online broker, you can look up some review articles like this one. These will help you look at the options with an eagle-eye view. Ultimately, you have to decide the best online Forex broker for you, as we can only offer help and guidance.
What Is Forex?
Forex, also known as the currency market or the foreign exchange market, is a marketplace where you can exchange one currency for another.
Some traders in this market want to exchange foreign currencies for their own purposes. For example, a multinational company is trading currencies to pay for expenses and wages in various countries where they sell products.
However, the better part of one of the largest markets in the world includes currency traders, who interpret and predict the movement of stocks and try to benefit from even the slightest changes in exchange rates.
In this market, you will find little (if any) “inside information.” Monetary flows and predictions of global macroeconomic situations cause exchange rate changes. Theoretically, the market releases important news publicly, and everyone gets it at the same time.
Currencies get traded against each other, and every pair constitutes a different product. This product is noted XXX/YYY traditionally, with YYY being ISO 4217 three-letter international code. The XXX indicates the price of one unit of that currency.
Will You Be Able to Trade CFDs on Forex Paris?
A contract for differences refers to an agreement between a CFD broker and an investor. This agreement mentions they have to exchange the difference of the values of assets between the contract period. The buyer does not really own an asset and instead receives money according to the price fluctuations.
CFDs are confusing and complex instruments, bringing a high probability of losing cash. Usually, when trading with CFDs, retail investor accounts tend to lose money. Therefore, you must consider how CFDs work before taking the risk of losing cash quickly because of leverage.
CFD traders do enjoy some benefits, like accessing assets at a lower price than outright purchasing costs. However, the thought of losing money so quickly because of leverage is an obvious cause of worry with this financial instrument.
As long as you are able to pick a broker who supports trading CFDs, you will be able to trade CFD and Forex instruments simultaneously. However, you should beware of a few things.
- CFDs have a high probability of losing money quickly
- Retail investor accounts also lose money while CFD trading
- You must check if you can afford the loss of money
Will You Be Able to Trade Forex in the United States?
Yes, you will be able to trade Forex in the United States, provided you utilize a U.S.-compliant broker. So, you need to search for brokers that are regulated by the CFTC or the SEC. Additionally, you can also get international brokers accessible to Americans.
Global supervisory institutes have standards with which every single Forex broker under their jurisdiction needs to comply. These standards include the following:
- Registered and licensed with a regulatory body
- Undergoes regular audits
- Communicates change of service with clients
Ultimately, the main goal is to make sure currency trading is just for every party involved. The Financial Conduct Authority regulates all Forex brokers in the United Kingdom, which is the largest market in this industry.
European Securities and Markets Authority implements stringent regulations on Europe-regulated or European brokers. You can be confident about picking a Forex broker regulated by any FCA or another body in the contingent.
Other top-notch regulators you can find across the world include the following:
- Cyprus Securities and Exchange Commission
- Investment Industry Regulatory Organization of Canada
- Australian Securities and Investments Commissions
- Japanese Financial Services Authority
FAQs: Forex Traders
Q1. Who Owns Forex? Where Can You Find It?
No one can own Forex in particular, as Forex is a market, which means two participants conduct all of the transactions. These two participants are the buyers and the sellers.
As long as the existing banking system stays, Forex will exist as well. You cannot connect it to any particular government organization or country.
Q2. What Are the Working Hours of the Forex Market?
The Forex market opens from 22:00 GMT on Sunday, when the trading session in Australia initiates. The market closes at 22:00 GMT on Friday, which is the closing time of the trading session in the United States.
Q3. What Is the Margin?
Margin means the money your broker account needs to have to secure and maintain your open position. Various brokers need different margin amounts to keep these positions open for you.
Q4. What Are Short and Long Positions?
A short position means a sell position, which indicates this position will end up in profit if the rate of the currency goes down. On the other hand, a long position is the buy position, which indicates it will end up in profit if the rate of the currency goes up.
Q5. What Is the Strategy to Trade Forex?
No strategy can ensure you profit. Therefore, you need to constantly keep developing new strategies for every possible situation in the market. Specific strategies you find online for profits will only be good for a limited time and for certain currency pairs.
Q6. How Much Money Do You Need to Start Trading Forex?
Some Forex brokers let you trade with as small of an amount as $1. Generally, the least amount of money differs from $100 to $10,000. Amounts $100,000 and more are for trade between banks.
Q7. Can You Still Trade Forex if You Do Not Want to or Cannot Install Forex Trading Software on Your Computer?
Suppose you are someone who does not want to or simply cannot install any new Forex software to initiate trading. In this case, the next best option would be using a web-based platform for Forex trading, and you can look online to find those Forex brokers that support such platforms.
Q8. Why Was There No Fluctuation in a Currency Pair When News That Should Have Pushed Them Up/Down Came Out?
The Forex market usually is oblivious to fundamental reports. There are numerous factors (thousands) that impact currency rates. Their sum might move a pair, ignoring some data in a macroeconomic report.
Q9. Can You Lose More Money Than You Invest in Forex?
No, you generally cannot. The broker will not let you lose more than you have invested in your trading account, as they will let you close your losing position when the account balance is too close to nothing.
Furthermore, the loss bigger than a trader’s deposit will be a Forex broker’s direct loss. Therefore, to protect themselves, brokers carry out a stop-out level that is approximately 20%.
This means the biggest position of losing gets closed once. The quotient of equity and used margin gets multiplied by 100% to become equal, if not less, to this level.
Rarely, a slippage or a price gap might put the balance of a trader into the negative boundary. However, brokers do not usually ask traders to refund negative balances of their accounts.
Q10. Can You Open a Buy Trade in USD/EUR and Withdraw Those Bought Euros?
No, you cannot, as there is no delivery in the spot Forex industry. Such a trade is a contract and not an exchanging act. Some brokers also let you exchange currency at acceptable rates inside a multi-currency trading account.
Q11. Why Does Any Trade You Open Start in a Loss?
When you start a trade, you open it at the ask price or the bid price for buy trades or sell trades, respectively. If you want to close the trade, the opposing price gets used. The bid price will close a buy trade, and the ask price will close a sell trade.
This same policy applies to calculate the trade’s floating loss or profit. Therefore, when you open a new trade, it will always start in the red because of the Ask/Bid Spread. This is the reason why every trader should first beat the spread to make their positions profitable.
Conclusion: Which Is the Best Forex Broker?
Now that you know all about the best Forex traders, it is time for you to get in on the action. If you are a beginner, you now have the basic knowledge to tackle the first few steps of entering this industry by yourself.
However, ensure you consider all of the steps listed before choosing a Forex trader for yourself. On the other hand, if you are an advanced Forex trader, we hope this article only enhances your knowledge. Overall, we personally suggest you to go for platforms like AvaTrade or XTB for the best trading advice. So, what are you waiting for? Simply choose the right one for you, and get started.