Best Forex Broker Comparison Guide
Foreign exchange trading is difficult, even in the best of circumstances. That’s why it’s crucial to select a forex trading broker that meets your individual needs. Not every forex trader and investor approaches the market the same way. Neither do all forex brokers.
We’ve scoured the world to offer you some of the best forex broker options. We’ve then broken down this master list of brokers into select categories that will hopefully guide you to the best broker for your specific trading needs. Choosing the forex broker requires you to pair your forex strategy with the broker that offers you the best trading conditions for that strategy. To do this, you should take into account a host of variables including, costs, execution quality, execution speed, pricing model, execution model, breadth of instruments, customer service, platform options, tools and resources.
And, all else, to choose only from those brokers that have a solid reputation and are regulated. You don’t want to get caught opening up an account with an unscrupulous company that isn’t regulated. While it may not always feel like, regulation is there for your protection. As we said many times in presentations, ‘Return of Capital is far more important than Return on Capital’.
Best Forex Broker for Beginners
For new traders, it’s important to learn how to trade and gain experience without risking a lot of capital. To help newer traders, we’ve identified our top broker picks to start your journey into forex trading and investing. These forex brokers offer a great combination of minimal deposit requirements, easy-to-navigate platforms, low trading costs, and a suite of education material to help you get started.
Trading Fees:Spreads or Core-pricing which includes lower spreads with a commission of $5 per 100,000 traded.
Currency Pairs: 70+
Minimum Trade Lot: None
Some brokers like Oanda let you get started with no deposit minimum, while others on this list require between $50-$250 to get started with a live account. All offer their own, proprietary trading platforms for desktops, with the exception of IG who offers a browser based trading setup. All of these brokers offer spread-based pricing for new traders, as well. Perhaps most importantly, all these brokers offer newer traders a rich selection of educational materials that can help you get your trading off the ground. Thanks to extensive support in multiple languages to answer your questions and simple setup options, Oanda, Forex.com, FXCM, IG and ThinkMarkets are excellent trading platforms.
Best Forex Trading Platforms
Choosing the right forex trading platform can be crucial. It is important to choose the platform that you feel most comfortable using and that provides you with the tools and features you need to implement your trading strategies.
For the most part, it’s safe to say that there is MetaTrader and then everyone else. MT4 and MT5 are offered by just about every forex broker and are considered by many to be the industry standard trading platform.
However, while MetaTrader is offered by most brokers, many brokers also provide access to other trading platforms, including their own proprietary trading platforms– some of which offer features that you won’t find anywhere else.
The platforms you have access to depend largely on your broker, so, if you’ve already chosen a broker, your options may be limited. However, learning what the platform options are beforehand may help you choose a more suitable forex broker.
It is important to understand the differences between the trading platforms offered by major forex brokers in order to decide which one best suits your trading needs. To help you, we’ve identified some of the top forex trading platforms available to help you decide which one is right for you. Each of these platforms offers a variety of unique features to help you succeed.
All of these trading platforms offer many of the same standard features, like market news, the ability to trade directly from charts, and the ability to trade just about any financial instrument. Most are also able to run on all operating systems, and those that aren’t can be accessed on the web.
Most forex traders consider MetaTrader 4 the gold standard for trading platforms. MT4 is feature-rich and offers a wide variety of tools, indicators, automated trading strategies, order types, and more.
Other platforms are only offered through certain brokers. Trade Interceptor, for example, is available only through ThinkMarkets and offers unique features like a Traders Gym, which allows you to run trading simulations.
Brokers like Oanda and Forex.com provide access to TradingView — a powerful social trading platform. TradingView allows users to collaborate by sharing charts and trading ideas.
Many brokers also offer educational resources to supplement the tools provided by these platforms. IG, for example, offers the IG Academy, which helps readers develop their knowledge via free online courses, webinars, and seminars.
For the most part, each of these platforms will provide you with the basic tools and charting capabilities that you need to implement your strategies. As each of these platforms offers a variety of unique, advanced features, it’s hard to go wrong no matter which platform you choose.
Best Brokers for Low-Cost Trading
Both novice traders and active traders should try to minimize their costs of trading – all else being equal. For high volume traders, in particular, excessive trading costs can really add up..
It can be difficult, though, to identify which pricing models will save you the most money. Should you opt for a commission-based account or spread-only model? In order to maximize your profits when trading in large volumes, it is important to identify which pricing models suit your needs and strategies the best.
We’ve compared the spreads, commission rates, and active trader benefits offered by several brokers to help you identify which brokers will help you save the most money overall.
Typically, for frequent traders, choosing a commission-based pricing model will yield the lowest total cost of trading when compared to a spread-only model, however, this is not always the case. So, it is important cross reference the pricing against the pairs that you plan to trade.
Many brokers do offer a commission-based model. In fact, Global Prime, for example, only offers a commission-based model. As a result, they are able to offer some of the tightest forex spreads available with EUR/USD spreads starting as low as 0.1 pips.
Your commission rates may also be dependent on the platform you use. For instance, IC Markets charges a commission rate of $3.5 per lot per side for True ECN account holders and charges $3 per lot per side for cTrader account holders.
In addition to accessing lower spreads via commission, traders can save money through generous rebates offered by Forest Park FX.
Any of the brokers pictured above are a great option for traders looking for cost-effective brokers. To a great extent, pricing has become so competitive that deciding which broker to use oftentimes comes down to OTHER factors, such as execution quality and the additional services offered by these brokers.
In any case, for traders looking for a low-cost trading option, these brokers represent some of the best options in the world.
Best Forex Brokers for Swap Free Trading
Swap free trading accounts, also known as Islamic or Sharia law compliant accounts, are offered to traders who are not able to receive swaps for religious reasons. These accounts offer these traders the ability to hold positions overnight without paying or receiving interest.
This might seem very appealing; however, these accounts often come with additional fees. Moreover, some brokers simply do not offer these types of accounts.
As such, individuals who require swap free accounts prioritize two things: availability and minimal fees. This can make it difficult to find the best brokers for swap free trading.
Through thorough reviews, we’ve identified some of the top brokers for swap free trading. These brokers offer swap free accounts that feature the same resources and tools as their standard accounts without charging excessive, additional fees.
We have researched each of these brokers and identified several factors that rank them among the top brokers for swap free trading.
FXCM clients are able to easily open a swap free account by filling out a request form. Moreover, FXCM offers customer support in Arabic.
ThinkMarkets is notable for its competitive pricing and compliance with Sharia law. ThinkMarkets ensures that there is no Riba (interest charges or the like) in any form throughout the duration of the contract and offers spreads as low as 0.1 pips for forex and 15 cents for Gold on ThinkZero accounts.
Each of these brokers makes opening a swap free account extremely accessible and are still able to offer extremely competitive pricing for their swap free clients. No matter which of these brokers you choose, you can be sure to experience exceptional customer service and industry-leading spreads.
Best Forex Brokers for CFD Trading
While not available in the United States, contract for difference (CFD) trading is an invaluable option for international traders and investors.
A CFD is a derivative that allows traders to trade on margin. So, instead of purchasing the underlying asset itself, traders buy and sell units of a financial instrument based on whether they believe the price of the asset will increase or decrease.
Essentially, this means that traders and brokers are agreeing to exchange the difference in price of an underlying asset between the start and end of their contract.
CFD trading provides traders with the ability to easily trade a variety of markets and instruments. While CFDs and futures share many similar characteristics, they are not to be confused with one another as many beginners often do.
When searching for a suitable CFD broker, traders should be looking for brokers that offer low commission rates and the ability to trade a wide variety of different instruments.
It can take quite a bit of time to effectively compare forex brokers to find which ones offer the most instruments while maintaining competitive pricing. We’ve compared several brokers in order to identify some of the best forex brokers for CFD trading.
Some brokers, like IG, are able to offer access to thousands of instruments while maintaining extremely competitive rates. While IG doesn’t offer a commission-based pricing model, they, along with ThinkMarkets, are able to offer tight spreads to customers who opt for a spread-only pricing option.
Active traders can also benefit from the commission-based pricing offered by most of these brokers in addition to rebates offered by Forest Park FX.
Each of these brokers also provides access to the industry-leading MetaTrader trading platform. Some even offer their own proprietary platforms, like ThinkMarkets’ powerful Trade Interceptor platform.
Clients will also have access to exceptional customer service and educational resources no matter which broker they choose. As a result, if you’re looking for brokers offering tight spreads on a variety of CFD instruments, any of the above brokers is sure to meet your needs.
Best Forex Brokers for Spread Betting
Spread betting, which is only available to UK residents, allows clients to bet both ways on market moves and access leverage.
Instead of purchasing assets, traders are simply betting on whether they believe the price of an asset will rise or fall. Since UK tax authorities consider spread betting gambling rather than investing, profits from spread betting are tax-exempt.
The following brokers are perfect for traders interested in spread betting as they allows users to bet on a variety of instruments and provide plenty of risk management and analysis tools.
IG, OANDA, FXCM and ThinkMarkets are all ideal brokers for traders interested in spread betting.
Each of these brokers offers maximum leverage of 30:1 (unless you qualify as a professional trader) and allow users to bet on a variety of instruments. IG, in particular, stands out as clients can bet on hundreds of CFD instruments through their spreadbetting account, including:
- And More
These brokers all have an extensive range of tools and resources that can be used to perform thorough analysis. Additionally, they each offer extremely competitive spreads and industry-leading trading platforms.
As all of these brokers have outstanding reputations and have established a history of reliability and trustworthiness, any of them are viable options for those interested in spread betting.
Before you take the leap
In addition to what we’ve covered here, many traders look at the depth of educational tools and resources offered when choosing a broker, especially when first starting out. On top of educational and other resources, it’s important to consider whether rebates are available when choosing a broker.
Check out Forest Park FX’s rebate program and discover why so many forex traders rely on Forest Park FX to meet all of their trading needs. Our rebate program allows you to trade with the broker that you are most comfortable with and receive generous rebates on every trade. You’ll receive the same spreads, same commissions, and same broker experience while earning cash back.
Our experienced programmers will also help you bring your automated trading strategies to life. If you have a great idea for a trading algorithm, Expert Advisor (EA), or custom indicator, our coders can work with you to develop that idea, thoroughly test it, and implement it. Fill out this simple form to get started.
Choosing the right broker for you can be difficult. While we’ve done our best to highlight the best brokers for different circumstances, it can still be overwhelming to decide which one best suits your needs. Forest Park FX offers consultations to help our clients pick from the multitude of brokers available. Contact us today to receive a customized broker solution.