Best Forex Brokers 2024 : Top Picks, Definition,  Guides, Types, Regulations, FAQs, and More 

Forex brokers are fintech firms or dealers that facilitate the trading of currencies on the foreign exchange market (Forex). They act as intermediaries between individual traders and the interbank system. There are thousands of Forex and CFD brokers online 

Finding the right forex broker that meets your specific trading needs is a difficult task especially as there are numerous online brokers available today. Many of them offer similar services on the surface; so deep research, careful analysis, or hands-on experience is often needed to describe the services provided by a broker completely.

At Brokersway, we understand that every broker is different; just like every trader is different. So, we have utilized our skills, expertise, and resources to analyze various top-performing brokers. The list has been further narrowed to the top 15 forex brokers in the world.

A list of Top 15 Forex Brokers for 2024

• Pepperstone –
• IC Markets
• eToro
• Exness
• LMFX
• Oanda
• XM 
• HotForex Markets
• FXTM 
• EightCap 
• FBS 
• Tickmill
• Moneta Markets 
• FP Markets 
• AvaTrade

What is a Forex Broker?

A forex broker refers to a financial services company that provides traders with access to a platform for buying and selling foreign currencies. These brokers offer online currency trading round the clock on weekdays; that is, 24/5.

The forex market is the virtual marketplace where participants from all over the world buy and sell national currencies. It is currently the largest market in the world with over $6.6 trillion in daily trading volume. The market is structured in such a way that access to the market is tiered as follows:

Types of Forex Brokers:

Forex brokers act as intermediaries between traders and markets, providing access to the tools required for forex trading. While all forex brokers serve the same basic purpose, their business models, regulations, execution types, trading conditions, options, and facilities can vary from broker to broker. Here are the different types of forex brokers.

Dealing Desk

Dealing Desk brokers, also known as Market Makers, create a market for their clients by taking the opposite side of their trades. They set their own bid and ask prices and may trade against their clients. This type of broker can provide fixed spreads and instant execution, but there’s a potential conflict of interest as they profit from clients’ losses.

No Dealing Desk (NDD)

No Dealing Desk brokers provide direct access to the interbank market, where liquidity providers set the prices. These brokers act as intermediaries without taking positions against their clients. NDD brokers can be further categorized into:

STP (Straight Through Processing)

STP brokers route clients’ orders directly to liquidity providers, such as banks or other brokers, without any dealing desk intervention. This results in faster execution and variable spreads, reflecting the true market conditions.

ECN (Electronic Communication Network)

ECN brokers create a network where multiple market participants, including banks, other brokers, and traders, can trade against each other. They offer tight spreads, often close to zero, with a small commission on trades. ECN brokers provide a high level of transparency and anonymity.

DMA (Direct Market Access)

DMA brokers allow traders to place orders directly on the market, interacting with the order book of a stock exchange. This ensures the best possible execution prices, with transparent pricing and no re-quotes. DMA is typically used for trading stocks and futures, but some forex brokers offer DMA for forex trading as well.

Hybrid:

Hybrid brokers combine elements of both the Dealing Desk and No Dealing Desk models. They may operate as Market Makers for certain accounts or trading volumes and use STP or ECN execution for others. This flexibility allows them to offer a range of services to different types of traders.

Prime Forex Brokers:

Prime Forex Brokers offers services to institutional clients, providing access to deep liquidity pools and superior trading conditions. They act as intermediaries between smaller brokers and top-tier liquidity providers. Prime brokers typically offer advanced trading platforms, enhanced execution speed, and comprehensive risk management tools.

Institutional Forex Brokers:

Institutional Forex Brokers serve large organizations, such as banks, hedge funds, and multinational corporations. They provide bespoke trading solutions, deep liquidity, and high-speed execution. These brokers offer tailored services, including custom trading platforms, direct market access, and advanced analytics.

White Label Forex Brokers:

White Label Forex Brokers are companies that lease the trading platform and technology from established brokers to offer forex trading services under their own brand. This model allows new brokers to enter the market without significant investment in infrastructure. They benefit from the parent broker’s liquidity, technology, and regulatory framework.

Regulated Forex Brokers:

Regulated Forex Brokers are authorized and supervised by financial regulatory bodies, such as the FCA in the UK, ASIC in Australia, or CySEC in Cyprus. These brokers adhere to strict standards regarding client funds’ safety, transparency, and fair trading practices. Trading with a regulated broker provides a higher level of security and trust.

Unregulated Forex Brokers:

Unregulated Forex Brokers operate without oversight from financial authorities. While they may offer attractive trading conditions, lower fees, or higher leverage, trading with unregulated brokers carries significant risks. There is no regulatory framework to protect traders from fraud, unfair practices, or insolvency.

Offshore Forex Brokers:

Offshore Forex Brokers are registered in jurisdictions with lenient regulatory requirements, such as the Bahamas, Seychelles, or Belize. These brokers often offer high leverage and flexible trading conditions but may lack robust regulatory oversight. Trading with offshore brokers can be riskier, but they may appeal to traders seeking specific advantages, such as tax benefits or higher leverage.

Who Regulates Forex Brokers?

Forex brokers are regulated by various financial regulatory authorities worldwide, depending on the country in which they operate. Here are some of the primary regulators for forex brokers in major jurisdictions:

United States:

• Commodity Futures Trading Commission (CFTC): This agency regulates the futures and options markets in the U.S., including forex trading.
• National Futures Association (NFA): A self-regulatory organization that oversees the activities of futures commission merchants (FCMs) and introducing brokers (IBs) in the futures market, including forex trading.

United Kingdom:

• Financial Conduct Authority (FCA): The FCA regulates financial services firms and financial markets in the UK, ensuring that the forex brokers operate with integrity and follow the rules.

European Union:

• European Securities and Markets Authority (ESMA): While ESMA provides overall regulatory guidelines, individual countries within the EU have their own regulators:
  • Cyprus Securities and Exchange Commission (CySEC): Regulates forex brokers based in Cyprus.
  • Federal Financial Supervisory Authority (BaFin): Regulates forex brokers in Germany.
  • Autorité des Marchés Financiers (AMF): Oversees forex brokers in France.

Australia:

• Australian Securities and Investments Commission (ASIC): This body regulates forex brokers to ensure they operate fairly and transparently.

Japan:

• Financial Services Agency (FSA): Regulates financial markets, including forex brokers, to ensure market integrity and protect investors.

Canada:

• Forex brokers in Canada are regulated by provincial authorities. For instance:
  • Investment Industry Regulatory Organization of Canada (IIROC): Oversees investment dealers and trading activity in the Canadian securities market, including forex trading.

Switzerland:

• Swiss Financial Market Supervisory Authority (FINMA): Regulates financial markets, including forex brokers, in Switzerland.

Singapore:

• Monetary Authority of Singapore (MAS): Regulates financial institutions and markets, including forex trading.

United Arab Emirates:

• Securities and Commodities Authority (SCA): Regulates forex brokers across the UAE.
• Dubai Financial Services Authority (DFSA): Oversees financial services conducted within the Dubai International Financial Centre (DIFC).

South Africa:

• Financial Sector Conduct Authority (FSCA): Regulates market conduct of financial institutions, including forex brokers, to ensure they operate fairly and transparently and protect consumers.

Kenya:

• Capital Markets Authority (CMA): Regulates forex brokers to ensure they adhere to legal and regulatory standards, promoting integrity and protecting investors in the financial market.

Not all regulators are equally strict and respected. We categorize these regulators based on their importance. The regulators are grouped according to their efficiency and trust. Here they are. 

Tier 1 regulators:

These regulators have the most stringent requirements and supervision. Brokers licensed under these regulators are reputable. Some of them are:

• Australian Securities & Investment Commission (ASIC).
• Financial Conduct Authority (FCA) in the UK.
• Investment Industry Regulatory Organization of Canada (IIROC),
• Commodity Futures Trading Commission (CFTC) of the USA

Tier 2 regulators:

These regulators are strict but lower than that of Tier 1 regulators. Brokers under these regulators are trusted. Below are some of them:

• Financial Sector Conduct Authority (FSCA) of South Africa.
• Dubai Financial Services Authority (DFSA).
• Israel Securities Authority (ISA).

Tier 3 Regulators:

The licenses issued by these regulators are easy to obtain. There is no strict supervision. Some are them are as follows:

• Financial Services Commission (FSC) Belize.
• Financial Services Authority (FSA) Seychelles
• Vanuatu Financial Services Commission (VFSC).

What Trading Platforms and Tools Do Forex Brokers Offer?

This is the software application that serves as the gateway to the forex market. Traders can monitor price quotes, and view and analyze the currency charts as well as other tasks. Upon registration, clients are given access to the broker’s platform using ID and password.

Platforms are available in any or all combination of the following forms:

• Online or web-based
• Downloadable desktop applications
• Mobile apps

Some of the popular trading platforms are MT4, MT5, and cTrader.

In addition to proprietary platforms, forex brokers also offer access to third-party tools for charting, fundamental and technical analysis, research, risk management, and automated trading. Below are some of the popular trading platforms and tools provided by forex brokers:

MetaTrader 4 (MT4)

MetaTrader 4 is one of the most widely used trading platforms, known for its user-friendly interface and comprehensive features. MT4 offers advanced charting tools, technical analysis, and automated trading through Expert Advisors (EAs). It supports multiple order types and provides real-time market access.

MetaTrader 5 (MT5)

MetaTrader 5 is the successor to MT4, offering enhanced features and functionalities. MT5 supports additional order types, advanced charting tools, and a more comprehensive suite of analytical tools. It also allows for trading a wider range of financial instruments, including stocks and commodities, in addition to forex.

cTrader

cTrader is a popular trading platform known for its intuitive interface and advanced charting capabilities. It offers features such as level II pricing, one-click trading, and automated trading through cAlgo. cTrader is designed to provide a seamless trading experience for both beginners and experienced traders.

TradingView:

TradingView is a powerful web-based charting platform used by traders for its extensive charting tools and social trading features. It provides real-time data, technical analysis, and the ability to create custom indicators and scripts. TradingView is often integrated with various brokers, allowing traders to execute trades directly from the platform.

TradeLocker:

TradeLocker is a user-friendly trading platform that provides advanced charting tools, real-time market data, and various technical analysis features. It is designed to offer a seamless trading experience with a focus on speed and reliability.

Pro4:

Pro4 is a professional trading platform that offers advanced charting, technical analysis tools, and automated trading capabilities. It is designed for experienced traders who require sophisticated tools to execute their trading strategies.

DupliTrade:

DupliTrade is a copy trading platform that allows traders to replicate the trades of experienced traders. It provides a user-friendly interface where traders can browse and select strategies to copy. DupliTrade is ideal for beginners who want to learn from successful traders or those who prefer a hands-off approach.

ZuluTrade:

ZuluTrade is another popular copy trading platform that connects traders with professional signal providers. It offers automated trading, performance analytics, and risk management tools. ZuluTrade allows users to follow and copy the trades of successful traders, making it accessible for traders of all levels.

Trading Central:

Trading Central is a third-party analytical tool that provides technical analysis, market insights, and trading signals. It offers advanced charting tools, indicators, and automated analysis to help traders make informed decisions. Trading Central is often integrated into broker platforms, providing valuable research and analysis.

NinjaTrader:

NinjaTrader is a comprehensive trading platform known for its advanced charting, technical analysis, and automated trading capabilities. It supports multiple asset classes, including forex, futures, and stocks. NinjaTrader offers a customizable interface and a range of tools for both manual and automated trading.

Myfxbook:

Myfxbook is a social trading platform and community that provides performance analysis, automated trading, and copy trading features. It allows traders to track their performance, analyze trading strategies, and share results with the community. Myfxbook is integrated with many broker platforms, offering seamless connectivity.

What are brokerage charges in forex trading?

Every broker must have its sources of revenue to remain in business. Each broker decides its charges. They charge the following fees:

• Commission: ECN brokers charge a commission when you open or close a trade.
• Spread: Most brokers mark up the spread to include their fees.
• Rollover fees: When a trade position remains open overnight, it incurs fees that are paid or deducted from the client’s account.
• Deposit and withdrawal fees: Most brokers do not charge deposit fees but fees charged by payment processors are passed to traders. Withdrawal fees are charged by many brokers.
• Inactivity fees: Many brokers will charge a monthly fee if you do not trade for a while; generally 3-6 months.

What Types of trading accounts do Forex Brokers Offer?

Most brokers use account types to distinguish between new, intermediate, and pro traders. Sometimes, accounts can be based on the trading platform or trading capital. Generally, accounts are divided into retail and professional accounts. Below are the popular account types:

Standard Account:

A Standard Account is designed for retail traders and offers access to the full range of trading instruments. It typically requires a moderate initial deposit and provides standard lot sizes, which are suitable for beginner traders. This is the regular account for forex traders. Standard lots of 100,000 units are traded. This account type often features competitive spreads and leverage options.

Mini Account:

A Mini Account is designed for traders who want to start with a smaller capital. It allows trading in smaller lot sizes, usually 1/10th of a standard lot, making it less risky and more accessible for beginners. Mini accounts often come with lower minimum deposit requirements and reduced trading costs.

Micro Account:

A Micro Account is ideal for new traders who want to practice with minimal risk. It offers even smaller lot sizes, usually 1/100th of a standard lot. This account type allows traders to familiarize themselves with the market and trading platforms without committing significant capital.

PAMM/MAM Account:

PAMM (Percentage Allocation Management Module) and MAM (Multi-Account Manager) accounts are designed for investors who want to allocate their funds to a professional trader’s managed account. The manager trades on behalf of multiple clients, and profits or losses are distributed according to each investor’s share. These accounts are suitable for investors seeking professional management and diversification.

Islamic Account (Swap-Free Account)

An Islamic Account, or Swap-Free Account, is designed for traders who follow Islamic finance principles, which prohibit earning interest. This account type does not charge or pay swap or rollover interest on overnight positions. Instead, brokers may charge other fees to maintain these positions. Islamic accounts are suitable for traders who wish to comply with Sharia law

Professional Account:

A Professional Account is intended for experienced traders who meet specific criteria, such as trading experience, significant trading volume, or financial portfolio size. These accounts offer higher leverage, reduced spreads, and additional trading tools. However, they may have fewer regulatory protections compared to retail accounts.

Demo Account:

A Demo Account allows traders to practice trading with virtual funds without any financial risk. It provides a simulated trading environment with real market conditions, helping traders to test strategies, learn platform features, and gain confidence before trading with real money.

Spread Betting Account

A Spread Betting Account is used for spread betting, a form of speculation on price movements of financial instruments without owning the underlying asset. Profits from spread betting are often tax-free in certain jurisdictions. This account type is popular in regions where spread betting is legally permitted.

Individual Account

An Individual Account is registered in the name of a single person. It is the most common type of trading account and offers full control to the account holder, allowing them to trade, deposit, withdraw, and manage their trading activities independently. All the above-mentioned account types can be individual accounts. 

Joint Account:

A Joint Account is registered in the names of two or more individuals. All account holders have equal rights to deposit, withdraw, and trade. This account type is suitable for partners or family members who want to manage their trading activities together.

Company/Corporate Account:

A Company or Corporate Account is opened in the name of a legal entity, such as a corporation, LLC, or partnership. This account type is used for business trading activities and often requires additional documentation to verify the entity’s legal status and authorized signatories.

Trust Account:

A Trust Account is established to manage assets held in a trust. It is opened in the name of the trust and managed by the trustee on behalf of the beneficiaries. This account type ensures that trading activities comply with the terms of the trust agreement.

Trust Corporate Account:

A Trust Corporate Account combines the features of a trust account and a corporate account. It is opened in the name of a trust that is managed by a corporate trustee. This account type is used for trading activities that require the legal and fiduciary management of trust assets by a corporate entity.

What Trading Instruments Do Forex Brokers Offer? 

Forex and CFD brokers offer a wide range of trading instruments. However, not all brokers offer the same variety or quantity of these instruments. Common trading instruments include: 

Forex Pairs:

Forex brokers offer access to a wide variety of currency pairs, including major pairs like EUR/USD, GBP/USD, and USD/JPY, as well as minor and exotic pairs. This enables traders to take advantage of fluctuations in exchange rates, leveraging the high liquidity and 24-hour market availability. Forex trading is ideal for those looking to capitalize on macroeconomic trends, geopolitical events, and central bank policies.

Crypto CFDs:

Cryptocurrency CFDs allow traders to speculate on the price movements of digital assets without owning the underlying coins. Forex brokers offer CFDs on popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Ripple. Trading crypto CFDs provides flexibility, as traders can go long or short, use leverage, and benefit from the high volatility characteristic of the crypto market. This is an excellent option for traders looking to gain exposure to the rapidly growing and dynamic world of digital currencies.

Indices CFDs:

Indices CFDs enable traders to speculate on the performance of major stock indices from around the world, such as the S&P 500, US 30,  NASDAQ 100, FTSE 100, and DAX 30. By trading indices CFDs, investors can gain broad exposure to a country’s or region’s economic health without having to trade individual stocks. This type of trading is useful for those who want to take positions based on macroeconomic trends, sector performance, or overall market sentiment.

Futures CFDs:

Futures CFDs represent contracts that agree to buy or sell an asset at a future date for a predetermined price. Forex brokers offer CFDs on a wide range of futures, covering commodities, indices, and other financial instruments. Trading futures CFDs allows investors to speculate on the future price movements of these assets, hedging against risks or capitalizing on expected market trends. This instrument is particularly favored by those who want to engage in more strategic and longer-term trading.

Bond CFDs:

Bond CFDs allow traders to speculate on the price movements of government and corporate bonds. These CFDs reflect the value of bonds issued by entities like the U.S. Treasury, German Bunds, or corporate bonds from leading companies. Bond CFDs are an excellent way for traders to diversify their portfolios, manage interest rate risk, and benefit from macroeconomic changes affecting bond prices.

ETF CFDs:

Exchange-traded funds (ETF) CFDs enable traders to invest in a basket of assets represented by the ETF. These funds cover various sectors, industries, and asset classes, such as technology, healthcare, or commodities. By trading ETF CFDs, investors can gain exposure to multiple underlying assets without the need to manage individual positions. This offers a simplified and efficient way to diversify and capture broad market movements.

Stocks/Share CFDs:

Stocks/Share CFDs allow traders to buy and sell contracts based on the share prices of leading global companies, such as Apple, Amazon, and Tesla. This type of trading offers the benefits of stock market exposure without the need to own the actual shares. Traders can take advantage of price movements, dividends, and corporate events, while also having the flexibility to go long or short and use leverage.

Commodity CFDs

Commodity CFDs provide the opportunity to trade a wide range of physical goods, including precious metals like gold and silver, energy products like oil and natural gas, and agricultural products like wheat and coffee. Trading commodity CFDs allows investors to benefit from price fluctuations in these essential markets, hedging against inflation or speculating on supply and demand dynamics. This instrument is ideal for those looking to diversify their trading portfolio with tangible assets.

What Trading Styles (Conditions) Do Forex Brokers Allow?

Forex brokers usually allow a variety of trading styles to accommodate different trader preferences and strategies. However, not all brokers support all types of trading styles equally, and some brokers are better suited for specific methods. It is essential for traders to review a broker’s policy or terms of service page to understand which trading styles are permitted. Here are the most common trading styles that brokers usually permit:

Scalping: 

Scalping involves making numerous trades throughout the day to profit from small price movements. Scalpers require brokers that offer low spreads, fast execution speeds, and minimal slippage. Not all brokers allow scalping due to the rapid trading activity involved, so it’s important to verify if a broker supports this style.

Hedging: 

Hedging involves opening multiple positions to offset potential losses in one position with gains in another. This trading style helps manage risk and reduce exposure to market volatility. Many brokers support hedging, but some may have specific rules or restrictions, so traders should check the broker’s policies.

EA Trading (Expert Advisor Trading):

EA Trading uses automated trading systems, or Expert Advisors, to execute trades based on pre-defined algorithms. This style is popular among traders who prefer automated strategies. Brokers that support EA trading typically offer platforms like MetaTrader 4 or MetaTrader 5, which are compatible with EAs.

Copy Trading: 

Copy Trading allows traders to replicate the trades of experienced traders. This style is ideal for beginners or those who lack the time to develop their strategies. Brokers offering copy trading services usually provide dedicated platforms or social trading networks where traders can follow and copy others.

Spread Betting: 

Spread Betting involves speculating on the price movement of financial instruments without owning the underlying asset. Profits are based on the accuracy of the trader’s prediction. Spread betting is tax-free in some jurisdictions, making it an attractive option. However, not all brokers offer spread betting, so traders should verify its availability.

Arbitrage Trading:

Arbitrage Trading exploits price discrepancies between different markets or brokers. This trading style requires fast execution and access to multiple trading venues. While it can be profitable, not all brokers allow arbitrage trading due to its potential impact on liquidity and market stability.

High-Frequency Trading (HFT)

High-frequency trading uses sophisticated algorithms and high-speed trading systems to execute a large number of orders within milliseconds. HFT requires brokers with advanced technology and low-latency connections. Not all brokers support HFT, and it is typically used by institutional traders rather than retail investors.

Swing Trading:

Swing Trading involves holding positions for several days to weeks to profit from short- to medium-term price movements. Swing traders look for brokers offering competitive overnight swap rates and effective technical analysis tools to help identify trading opportunities.

Day Trading:

Day Trading involves opening and closing positions within the same trading day to profit from intraday price movements. Day traders need brokers that provide fast execution, low spreads, and reliable trading platforms. This style is well-supported by most brokers, but traders should ensure the broker’s terms suit their needs.

Position Trading:

Position Trading involves holding positions for extended periods, from weeks to months, or even years. Position traders focus on long-term trends and fundamental analysis. Brokers that support position trading typically offer competitive long-term swap rates and access to extensive market research.

Automated Trading (Algo Trading):

Automated Trading, or Algorithmic Trading, uses computer algorithms to execute trades based on pre-set criteria. This style requires brokers that offer effective API access, fast execution speeds, and support for various programming languages. Automated trading is ideal for traders who want to minimize manual intervention.

More things to Know before choosing a Forex Broker

Minimum Maximum Lot Size:

When forex a Forex broker, a trader needs to understand the minimum and maximum lot sizes it offers. Lot size refers to the number of currency units you trade. There are typically three types:

• Standard Lot: 100,000 units of the base currency.
• Mini Lot: 10,000 units of the base currency.
• Micro Lot: 1,000 units of the base currency.

Some brokers also offer Nano Lots, which are 100 units of the base currency. The minimum lot size determines the smallest position you can open, which affects your risk exposure. Maximum lot size, on the other hand, caps the largest single trade you can make, which is important for high-volume traders. A trader needs to make sure that the broker’s lot size options align with your trading strategy and risk management plan.

Minimum Maximum Number of Positions:

Different brokers impose various limits on the number of positions you can hold simultaneously. This can affect your trading strategy, especially if you want to use techniques like hedging or scalping, which require holding multiple positions at once. Some brokers might have strict limits, while others offer more flexibility. 

Margin Call:

A margin call occurs when your account equity falls below the broker’s required minimum margin. This is a safety mechanism to prevent you from losing more money than you have in your account. Understanding the broker’s margin call policy is critical:

• Margin Requirement: The percentage of the trade value that you need to deposit to open a position.
• Margin Call Level: The specific equity percentage or level at which the broker will notify you to deposit more funds to maintain open positions.

A trader should know how the broker handles margin calls, including the notification process and the time frame given to add more funds. This knowledge helps you manage risk and avoid unexpected liquidations.

Stop Out Level:

The stop-out level is the equity level at which the broker will start closing your positions automatically to prevent further losses. It is typically lower than the margin call level and serves as a final safety measure to protect both the trader and the broker from excessive losses. Here’s what to consider:

• Stop Out Level Percentage: This is usually a percentage of the margin required. For example, if the stop-out level is 50%, the broker will begin closing positions if your account equity falls to 50% of the required margin.
• Impact on Trading: Knowing the stop-out level helps you understand the risks and ensures you have sufficient funds to avoid automatic position closures.

Deposit and Withdrawals:

Every broker offers at least one deposit and withdrawal option. Some big brokers offer more than 30 options. Depending on the broker, each deposit or withdrawal option has its own completion time and fees. Here are the payment options:

Credit or debit cards:

You can use your card to fund your trading account. MasterCard and Visa cards are the most popular choices. Deposits are usually completed instantly while withdrawals may take up to 2 weeks.

Bank wire transfer:

This involves funding your trading account by making a transfer to the broker’s bank accounts. It takes 2-5 days to complete a bank transfer.

Online payments:

These include payment using e-wallets like Paypal, Skrill, WebMoney, Neteller, FasaPay, Perfect Money, etc. Processing times are instant but may take about 24 hours depending on the payment processor and network. 

Crypto:

Some brokers accept payments with Cryptocurrencies like BTC, ETH, XRP, and USDT. Crypto payments are instant.

Margin and Leverage:

Margin is the deposit required before a trader can open trade positions bigger than his capital. It is measured in percentage. Leverage is the ratio of a trader’s deposit to his purchasing power.

For example; on a margin of 5%, a trader can open a trade worth $20,000 by depositing just $1,000. In this case, it translates to a Leverage of 1:20.

All forex brokers provide leverage and margin to all their clients. The leverage ratio ranges from 1:1 to as high as 1:3000. In some jurisdictions, leverage is restricted to defined limits by the regulatory authorities. For example, retail traders can only trade with a maximum of 1:50 in the USA.

Broker Customer Support:

Every broker has a way of assisting its traders when they run into difficulties. Always check if the broker is readily available to render assistance using a medium that suits you. Support can be available through emails, phone calls, or web chat.

Education and resources:

Some brokers go further to assist their traders with multiple resources for training and market analysis. Some brokers have developed a complete trading academy and also provide in-depth market analysis regularly.

Choosing a Forex broker: Step-by-Step Guide

Follow the rules below to choose a broker:

• Step 1: Write down your requirements and list your priorities and expectations from your ideal broker.
• Step 2: If you have no broker in mind, start with an internet search of forex brokers and read user reviews.
• Step 3: Make a list of a few brokers from your research. Then, start checking their websites one after the other.
• Step 4: Find out the regulatory authorities and protections offered.
• Step 5: Check the account types available, maximum leverage, payment options, minimum deposit, etc.
• Step 6: Note the trading fees and non-trading fees charged.
• Step 7: Test the trading platform provided and its features.
• Step 8:  Take a look at the customer support services.
• Step 9: What trading resources are provided by the broker?
• Step 10: Compare and make your choice.

How Can I Start Forex Trading?

The first step is to acquire training about the forex market and how forex trading works. Learn how to analyze the markets and create a trading strategy that will help you generate your trading signals. Practice and perfect your strategies on a demo account. When you are ready to start live forex trading, follow the guidelines below:

• Choose a forex broker and open an account.
• Verify the account, fund it, and download the trading platform if required.
• Choose the currency pair you want to trade and create a new order.
• Set your trade volume, stop loss, take profit, etc
• Place your order by clicking ‘buy’ or ‘sell’.
• Monitor the trade and close it when you are satisfied. This completes the forex trade.

How to Avoid Forex Broker Scams?

Forex trading scams are the crime of defrauding unsuspecting investors or forex traders of their capital through fraudulent schemes. It comes from various players in the market; such as scam brokers, other traders, marketers, etc. Popular schemes used by scammers include PAMM accounts, signals selling, robot selling, clone firms, scam brokers, social trading scams, etc.

Follow the steps below to protect yourself from forex scams:

• Avoid trading with unregulated forex brokers.
• Do your research and read user reviews to find out what other traders are saying about a forex broker.
• Do not fund your trading account from a bank account or debit card where you have your life savings. Use a new bank account/credit card/e-wallet with little funds.
• Always double-check your broker’s website to make sure that you have not visited a cloned website. Avoid clicking on any email links leading you to the broker’s website.
• When a broker promises large bonuses or continues to inundate you with calls, it is a bad sign. Check them again and withdraw your funds if possible.

Frequently Asked Questions (FAQ)

Which is the Number 1 Forex Broker in the world?

Based on our evaluation and broker ratings, Pepperstone is the number 1 Forex broker in the world.

Who is the largest Forex broker?

The largest Forex brokers include Pepperstone, eToro, Oanda, AvaTrade, IC Markets, and FP Markets. For example, both Pepperstone and AvaTrade have more than 400,000 clients and are continually growing. eToro boasts over 30 million clients worldwide.

Which is the fastest Forex broker?

The fastest Forex brokers are BlackBull Markets, Pepperstone, and IC Markets. According to research and statistics, BlackBull Markets has the lowest execution speed at less than 72 milliseconds, followed by Pepperstone at 75 milliseconds, and IC Markets at 134 milliseconds.

Which broker is the easiest to use?

Pepperstone, IC Markets, and Exness are among the easiest Forex brokers to use. They offer the MT4 trading platform, which is user-friendly and widely popular. Additionally, these brokers provide demo accounts, making it easy and beneficial for beginners to start Forex trading

Which Forex Brokers Offer the most CFDs?

FP Markets offers about 10,000 CFDs for trading on its platforms. It is followed by eToro with more than 3,000 CFDs and Oanda with over 1,800 CFDs.
What are the top 10 currency trading brokers?

Based on popularity, robust platforms, affordable trading fees, assets index, and  excellent support, the following brokers make our top 10:

• Pepperstone
• IC Markets
• FP Markets
• eToro
• HotF Markets
• XM
• Oanda
• TickMill
• Exness
• AvaTrade

What Types of Forex Brokers Should I Choose?

The type of forex broker you choose should depend on your trading needs, strategies, and goals. Choose a DD broker if you want to trade with high leverage or fixed spreads.  NDD is best for experienced traders who want fast executions, low trading fees, and a wide variety of assets. 

What Types of Trading Platform Should I Choose?

Most modern trading platforms are user-friendly and support technical analysis, multiple orders, etc. Also, many proprietary platforms are great for a variety of traders. For the popular third-party platforms; if you are a beginner who wishes to trade forex; MT4 is your best bet. 

Advanced traders who trade CFDs or use complex order types should use MT5. cTrader and TradingView are great for advanced traders who need a complex charting package.

Note: TradingView requires a monthly or yearly subscription to unlock its full features.

Which Forex broker is the best for Crypto CFD Trading?

EightCap is the best for trading crypto CFDs because it offers over 100 crypto CFDs for trading at competitive rates. Pepperstone is next with over 90 crypto CFDs and great trading conditions.

What are the Best Forex Brokers for beginners?

From our research, analysis, testing, and experience; XM, HF Markets, FBS, and Exness are the best brokers for beginners. They all provide comprehensive training resources for newbies and also demo accounts for practice. When the newbies are ready for live trading, these brokers offer micro accounts which they can use to start experimenting with live trades at very little risk.

Which forex broker is best for professionals?

Oanda, Exness, and HotForex Markets are the best brokers for Professional traders. They offer special accounts with low trading fees for Pro traders. Additionally, they provide quality trading tools and excellent market analyses needed by expert traders. 

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Which forex broker offers the most currency pairs?

Pepperstone and Exness offer more than 100 currency pairs for trading on their platforms. This is a large number of forex instruments because the major pairs constitute 75% of all forex trades and most brokers do not offer that much.

Do I need a Forex Broker to Trade Forex?

Yes, a retail trader needs a broker to trade forex. However, it is possible to trade forex even without a broker. For example; a tourist, importer, or anyone who needs foreign currency can trade forex through banks, bureau de change operators, or at the airports.

Can I Become a Forex Broker?

Yes, but it requires extensive knowledge and experience in finance. It also requires huge capital for company registration, licenses, developing a trading platform, advertisement, etc.

How do I interact with a forex broker?

All the brokers have an online presence. You may interact with them by visiting their website, sending emails, calling their support lines, or live chat; if it is available.

What is the difference between a forex broker and a forex trader?

A forex broker provides the platform where a forex trader registers and trades forex.

How do I know if my forex broker is regulated?

Every regulated broker displays their regulatory information conspicuously on their website. To further verify this information, you can visit the website of the regulator and search if the broker is registered and licensed by them.

Conclusion

There are many forex brokers out there but we have chosen the best 15 for you. We only chose the reputable brokers that have been consistently offering excellent services to a teeming population of traders.

You are free to trade with any of the brokers recommended. However, to further guide your choice, we make the following recommendations:

If you want an around good forex broker, you may choose Pepperstone. If you want to diversify your portfolio with real assets like stocks or ETFs; then you can choose eToro or XM. Beginner traders can try any of FP Markets, XM, or FBS.

Professionals can check out the services of Exness, Oanda, HotForex Markets, or Moneta Markets. Investors or social traders can trade with eToro, IC Markets, or HotForex Markets. Be sure to use the risk management tools available to you. 

We have also provided a comprehensive guide about forex brokers, covering everything from A to Z. We hope our in-depth, resourceful content will enhance your knowledge about forex brokers and help you choose the right one for your trading needs.

Our Methodology

Our team developed over 170 data points grouped into 6 macro areas for assessing the performance of forex brokers. They are as follows:

• Regulation and Security
• Fees and Commissions
• Trading
• Trading tools
• Customer Support
• Trading Education

Our team collated information from various sources and verified them before assessment and rating. We tested the services offered by the brokers using various devices, software, and strategies. Final fact-checking, evaluation, and editing were done and the best brokers were selected. To find out more, read our methodology.

Risk Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.