Best Forex Brokers 2021

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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

With many hundreds of Forex / CFD brokers to choose from globally, finding the right broker for you can seem an impossible challenge. That’s why we at DailyForex keep our team of industry analysts at work, to make choosing the best broker easier for you.

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
ECN-style trading
Daily market research and Autochartist access
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Commission-free trading on 3000+ assets
User-friendly proprietary platform with top-level analysis
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Solid broker for scalping and hedging
Institutional-style trading opportunities for retail traders
6
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Marketsi strategy builder helps traders trade smarter
Competitive trade execution with low slippage
7
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
8
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best social trading platform on the market
Excellent choice of options for crypto traders
9
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Quick and easy account registration
Excellent bonuses available in some locations
10
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Leverage up to 1:500 available
Proprietary platform offers a nice alternative to out-of-the box solutions

AvaTrade, Highly regulated, choice of fixed or floating spreads.
FXTM, Best all-around: high floating leverage + fast execution.
FP Markets, ECN trading with leverage up to 1:500.
Capital.com, Award-winning proprietary trading platform alongside MT4.
BlackBull Markets, Competitive ECN trading environment with scalping and hedging available.
Markets.com, Excellent educational offerings.
Pepperstone, Great ECN execution on MT4 platform.
eToro, Best broker for social traders and crypto traders : 75% of retail CFD accounts lose money.
XM, Exception range of assets + negative balance protection.
Moneta Markets, Great deposit bonus + leverage up to 1:500.

AvaTrade

5.0/5 in this category
In Summary
Highly regulated, choice of fixed or floating spreads

AvaTrade is one of the largest Forex / CFD brokers and well-known for offering their clients a choice of fixed or floating spreads. They have a very high and strong level of regulation. AvaTrade is directly regulated in Ireland (and by extension, the European Union), Australia, Japan, South Africa, and the British Virgin Islands. Outside the European Union, Ava offers maximum leverage on Forex currency pairs as high as 400 to 1. AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. 2 bonds and 6 ETFs are also on the menu.

Pros

  • High-quality educational offering via SharpTrader

  • Excellent choice of trading platforms catering to various trading needs

  • Broad asset selection and cross-asset diversification opportunities

  • Well-regulated and trusted broker with oversight from a central bank

Cons

  • Trading costs competitive but nothing special

FXTM

5.0/5 in this category
In Summary
Best all-around: high floating leverage + fast execution

We have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.

Pros

  • Excellent commission-based Forex pricing environment and transparency

  • Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app

  • Quality market research and educational content for beginner traders

  • Proprietary copy trading platform, low minimum deposit, and high leverage

Cons

  • Limited choice of cryptocurrencies and commodities

FP Markets

5.0/5 in this category
In Summary
ECN trading with leverage up to 1:500

fpmarkets is an ASIC-regulated Australian brokerage which launched in 2005. For most traders, the unique selling point of this broker is in the extremely wide range of tradable assets offered, providing the opportunity to trade over ten thousand individual stocks and shares including publicly quoted Hong Kong and Australian companies. Ffpmarkets also offers 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin. fpmarkets offers an unusual hybrid ECN/STP execution model, meaning their clients can choose between ECN style of execution giving a very high level of speed, and a “straight through processing” execution style which allows for more “natural” spreads.

Pros

  • Choice of trading platforms and auxiliary trading tools

  • Very competitive cost structure and excellent asset selection

  • Low minimum deposit requirement and leverage of up to 1:500

  • Well-regulated and trustworthy

Cons

  • Availability of Iress geographically restricted

Capital.com

5.0/5 in this category
In Summary
Award-winning proprietary trading platform alongside MT4

With well over 4,000 different assets to choose from, Capital.com allows you to easily trade CFDs with leverage on the web or via your smartphone. The AI-driven platform makes use of the very latest technology to create a rich, intuitive, and easy to use trading environment, allowing you to trade a diverse range of indices, commodities, cryptocurrencies, along with currency pairs and shares. Capital.com is a fintech company that is licensed by several regulators, including the FCA, ASIC, and CySEC. Capital.com’s AI-enabled smart platform has received many awards. Traders using the Capital.com platform can also access a wide variety of useful tools including dynamic market updates, webinars, upcoming IPOs, and 24-hour support.

Pros

  • Excellent Forex and cryptocurrency selection

  • A competitive commission-free pricing environment

  • Award-winning proprietary trading platform alongside MT4

  • High-quality educational section built around Investmate

Cons

  • Leverage for FCA/CySEC clients restricted to 1:30

  • Limited deposit and withdrawal methods for many international clients

BlackBull Markets

5.0/5 in this category
In Summary
Competitive ECN trading environment with scalping and hedging available

BlackBull Markets was founded in 2014 in New Zealand. Like many antipodean Forex brokers, BlackBull Markets is an ECN broker, offering raw spreads and commissions. They are regulated in New Zealand by the Financial Services Providers Register (FSPR) and offer a maximum leverage on some Forex currency pairs as high as 500 to 1. In addition to their global headquarters in New Zealand, BlackBull Markets also has presences in the form of branch offices in New York and Malaysia. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices. That should be sufficient for those traders with more focused strategies not requiring wide diversification.

Pros

  • ECN/NDD execution model with deep liquidity

  • Institution-grade pricing for retail traders via proprietary price aggregation

  • ZuluTrade and Myfxbook for social trading

  • Leverage of up to 1:500

Cons

  • Cryptocurrencies and equity trading not available

  • No MT4/MT5 plug-ins offered

Markets.com

4.5/5 in this category
In Summary
Excellent educational offerings

Markets.com, part of UK-publicly listed and FTSE 250 constituent Playtech PLC, operates five subsidiaries regulated in the UK, Cyprus, Australia, South Africa, and the British Virgin Islands. Markets.com serves traders via Marketsx and investors through Marketsi. Besides its proprietary trading platform, Markets.com deploys the MT4 and MT5 trading platforms. Markets.com offers a relatively wide asset selection. Forex and crypto traders have a choice of 67 currency pairs and 25 cryptocurrency pairs. Equity traders get access to over 2,000 equity CFDs, 60 ETFs, and 40 index CFDs. Completing the selection are 28 commodities, 13 in-house created blends (in-house thematic portfolios), and 4 bonds.

Pros

  • Very Competitive Forex Fees

  • Very Wide Choice of Assets

  • Choice of Trading Platforms

  • Excellent Customer Support

Cons

  • Commodities and Indices Fees Higher than Forex Fees

Pepperstone

4.5/5 in this category
In Summary
Great ECN execution on MT4 platform

Pepperstone, founded in 2010 and headquartered and regulated in Australia, the U.K., and Dubai, is probably the most well-known ECN Forex broker in the world. As an ECN broker, Pepperstone offer raw spreads and low commissions. Taken together, Pepperstone’s “Razor” account offers one of the most competitive costs of trading in Forex that you will find anywhere. In addition to their global headquarters in Australia, Pepperstone also have presences in London, England, where they enjoy full regulation by the Financial Conduct Authority (FCA), and in Dubai, where they are regulated by the Dubai Financial Services Authority (DFSA).

Pros

  • Excellent choice of trading platforms consisting of MT4/MT5, and cTrader

  • Market-leading MT4/MT5 upgrade package, Autochartist, and API trading

  • Social trading support via Myfxbook, MetaTrader Signals, and DupliTrade

  • Leverage of up to 1:400 and superb trade execution

Cons

  • Minimum deposit slightly higher than industry average

eToro

4.5/5 in this category
In Summary
Best broker for social traders and crypto traders : 75% of retail CFD accounts lose money

eToro was founded in the early days of the online retail Forex era, in 2007 – this broker occupies a unique space as the king of social and copy trading. eToro has a long track record and unique reputation to protect, although this image is more focused on its copy trading model than on any other individual feature, except maybe its special relationship with cryptocurrencies. eToro is regulated in Cyprus, the U.K., Australia, and the United States although its U.S. offering is firmly differentiated from its offering to the rest of the world.  eToro is a leading cryptocurrencies CFD broker. Following its 2019 acquisition of Danish blockchain company Firmo and Belgian crypto portfolio tracker application Delta, it released its cryptocurrency wallet for mobile devices.

Pros

  • Active investment community ideal for social trading

  • Dedicated tools for social trading

  • Broad cryptocurrency selection

  • Expanding educational offering for beginner traders

Cons

  • Internal withdrawal fees

  • Low retail leverage and higher minimum deposits, but within a reasonable range

XM

4.0/5 in this category
In Summary
Exception range of assets + negative balance protection

Established in 2009, XM (XM.com) is one of the largest trading platforms in the world, with over 5 million active clients trading from 196 countries. It is a market maker broker with a very low barrier to entry of only a $5 minimum deposit requirement. XM is regulated by the Cyprus Securities and Exchange Commission (CySEC 120/10), the Australian Securities and Investments Commission (ASIC 443670) and the Belize International Financial Services Commission (000261/158). XM offers a choice of over 1,000 tradable instruments with spreads as low as 0.6 pips on EUR/USD. XM offers an unusually wide range of European equities.

Pros

  • Outstanding trading tools and loyalty program

  • Low minimum deposit, high leverage, and competitive trading cost

  • Excellent research and education

  • Trustworthy and transparent with generous bonuses and incentives

Cons

  • Inactivity fee

Moneta Markets

4.0/5 in this category
In Summary
Great deposit bonus + leverage up to 1:500

Moneta Markets is a relatively new broker offering access to over 300 of the world’s most popular tradeable instruments. Moneta Markets handles an estimated monthly trade volume of over $100 billion and has more than 70,000 active client accounts. Vantage International Group LTD, the parent company of Moneta Markets, is regulated by the Cayman Islands Monetary Authority (CIMA), Securities Investment Business Law (SIBL) number 1383491, since May 2018. Moneta Markets I able to offer maximum leverage as high as 500:1 on certain Forex currency pairs. Several trading platform options are available, including WebTrader, MetaTrader 4 (MT4), MetaTrader 5 (MT5), and AppTrader for mobile users. Moneta Markets WebTrader features more than 45 built-in indicators and up to 6 different chart types, to facilitate virtually any style of trading.

Pros

  • Intuitive proprietary trading platform

  • Excellent trading tools and in-house research

  • Outstanding technology infrastructure

  • High leverage and deposit bonus

Cons

  • MT4 trading platform not supported

  • Higher minimum deposit

How Do I Choose the Best Forex Broker? 

Let us be clear – opening an account and making a deposit at a Forex broker is something you should take seriously. You are putting some of your capital in the hands of a company, and in return, you should expect them to provide the tools you need. The more money you deposit as a percentage of your net liquid worth, the more careful you need to be. You should also expect that your deposit (and profits) will be kept in safe custody, and you want to know that that you will be able to make a speedy withdrawal.

Your first concern in reviewing a broker should be the integrity of the firm, the soundness of their business practices, and the quality of the regulatory framework which they work under. After all, if you find a broker is not to your liking, there is little damage done if you are able to close your account.

Your first step in seeking the best Forex brokers is to restrict your search to include only the brokers you feel comfortable trusting as a custodian of your money. Ideally, you should only be looking at regulated Forex brokers, and it is advisable strongly consider the stronger financial centers such as brokers regulated in the U.S.A.brokers regulated in the U.K., or brokers regulated in Cyprus. Consider also whether you would be in a stronger position choosing a Forex broker regulated in the same country in which you live: in the event of any dispute with them, you could be better placed to pursue it more effectively. Alternatively, you could focus on the offshore center which has the strongest relations with your country of residence – for example if you live in the European Union, you might find it easiest to choose a Forex broker in Cyprus, another E.U. member state. Don’t forget that some regulators, mostly the stronger ones, may be prepared to pay back all or part of your deposit if one of their brokers go out of business. It is not wise to rely upon the promise of “segregated accounts” to protect your funds from broker bankruptcy.

Your second priority should be determining whether a broker gives value for money to its customers in return for the services it provides. This is measured mostly by the cost of trading, in spreads, commissions, overnight swap rates and other incidental fees. Of course, generally, the more money you deposit, the more you can expect from your broker in return.

After dealing with bread and butter issues, my Forex broker reviews assess how each broker measures up in terms of the range of assets offered for trading, maximum leverage offered to traders, spread and commission models available (e.g. fixed vs. floating), and choice of trading platforms. Finally, we might consider the “bells and whistles” which are a relatively unimportant part of any broker’s offering, such as educational materials and bonuses and promotions.

Below is a list of the 25 factors that are worth using to assess any Forex broker once you are satisfied that it can hold safe custody of your deposit and is adequately regulated.

1. Evaluate Trading Conditions 

A good Forex broker should offer consistently good liquidity and smooth execution, which are the mainstays of smooth trading conditions. This is because trading is easiest in such conditions, and loss causing events such as slippage less likely. Liquidity can of course shorten at certain times of the day, making spreads wider at certain time. No broker can be expected to provide narrow spreads just before a major news announcement. Yet generally, entering and exiting trades should be easy, without any glitches or platform freezes.

2. How Many Assets Can I Trade? 

Probably the most important factor here is, will you be able to trade everything you want? If you are only interested in the major Forex currency pairs, that will be easy, but if you really want to trade individual stocks and shares, or say, the less common commodity offerings, you will find that not all brokers offer them, although most offer some of them wrapped as CFDs. There is nothing wrong with being diversified, but you should keep in mind that the cost of trading such relative rarities tends to be higher than the cost of trading Forex. Also, you might consider opening accounts with two different brokers, as you could find that there is not one perfect solution but there might be two.

3. Can I Open an Affordable Account?

For various reasons, some Forex / CFD brokers will not allow residents or citizens of certain countries (most often, the U.S.A.) to open accounts. This means that depending upon where you live and what nationality you have, you may not be able to access certain brokers.

A good Forex broker you also must be affordable. This means that you can afford to meet their minimum deposit, although there are many brokers here requiring a minimum deposit of only $10, and in some cases, imposing no minimum deposit at all.

4. Do They Offer a Good Mobile Trading App? 

Almost every Forex broker offers their own mobile trading app. This can be useful if you intend to ever trade using a handheld device. Most traders probably do find themselves checking up on trades while they away from their desks, so you might want to download a broker’s mobile trading app and see how you like using it with a demo account, when you are in the process of deciding which broker to open a real live money account with.

5. Ease of Deposits and Withdrawals 

Deposits and withdrawals are usually nothing to worry about, except in a few rare cases. A broker that will not speedily send you funds which you have requested and are in your account, raises a big red flag, and is to be avoided at all costs. Deposits are made speedily almost everywhere, for obvious reasons. Occasionally, you may wish to use a payment method which a broker will not accept, for some reason. You will have to find another payment method or another broker which accepts your preferred payment method in such a case.

6. Does the Broker Have a Good Reputation? 

Examine the reputations of the brokers making your shortlist, one by one. A quick google search can determine if they have ever been fined by their regulator for a breach of rules, and which rules were breached. Are they a public company? Does their financial position look healthy? Have they been in business a long time? There are plenty of newer Forex brokers which are perfectly sound but using longevity can be an effective rule of thumb.

7. Is Customer Support OK? 

This is a relatively minor consideration because almost all retail Forex / CFD traders will never need to use customer support. However, in the case of a problem or emergency, you will want to know that at least a competent customer support team is there ready and able to help you. It could be a good idea to give them a call if you can find any question with your demo account, just to test out how good your potential broker is in this department.

8. Is Free Education Available? 

Most Forex / CFD brokers offer free trading education. This really is not important, because the internet is full of free Forex education anyway, so you do not need to worry about getting it from your broker. Worry about their trading fees, execution, reliability, and regulation instead. Many brokers offer very low-quality educational materials as a sales gimmick.

9. Ease of Account Opening / Registration 

Almost every Forex / CFD broker makes it as easy as they possibly can to sign up and open an account, of course, as it makes good business sense to do so. With many brokers, you will be able to get an account registered and opened, ready to receive your deposit, within a day of submitting your online account-opening form. To some extent, this will depend upon which regulatory regime the broker is subject to, and which country you, the client, is resident in.

10. Can I Afford the Minimum Deposit?

Check the minimum deposit each potential broker requires from you to open your account. This can range from $10 at the low end to as much as $10,000, although fortunately most brokers accept clients willing to deposit as little as $100 or perhaps $200.

Deciding how much money you should deposit with a Forex broker is also important. Not only should you only deposit funds which you can afford to lose, it is also worth considering whether all the funds you can afford to lose should be in the custody of only one broker. You could consider splitting the amount in half and opening accounts with two different brokers, for example, as an effective way to limit your overall risk as a trader. There can also be other valid reasons to do this, for example, you might want to trade stocks with broker A and Forex with broker B because their respective offerings in each differ in quality.

Keep in mind that generally, the more you are prepared to deposit, the better deal you are going to get. Many brokers offer a lower cost of trading (e.g., cheaper spreads, etc.) to anyone depositing more than say $500, $1,000, or $10,000. You should never deposit more than you can afford to lose with a Forex broker, but it is another factor worth considering.

You should also consider the question of how much money you need to deposit to trade Forex that will withstand your worst losing streak at the minimum trade size.

11. Does the Broker Suit My Trading Style? 

Some brokers offer better conditions for longer-term traders than short-term traders, or vice versa. This is because short-term traders will pay nearly all their trading costs in spreads, while longer-term traders will likely pay more in overnight financing fees (also known as swaps). If you know for how long you will usually be aiming to hold a trade open for, you will be better able to determine whether a Forex broker is more suitable for you.

12. Broker Execution Method 

Forex brokers typically advertise themselves as one of the following: ECN brokers, STP brokers, or market-makers. Some brokers claim they are a hybrid of two of these. Some traders are very keen to deposit with ECN brokers because they think the cost of trading will be less or that this model makes the broker more honest somehow. The truth is more complicated: each execution method has both potential advantages and disadvantages. Another problem is that there seem to be quite a few brokers claiming to be ECN brokers, but it is hard to believe that they really all are true ECN brokers when viewing their conditions of trading. Some brokers offer all the major options in different account types. The bottom line is, it is worthwhile doing some research on the different models and seeing whether one really makes sense for you, or whether in practice there will be little difference.  

13. Choice of Good Trading Platforms 

The best Forex trading platforms are widely held to be MetaTrader 4 and cTrader, although many brokers have their own unique proprietary platforms that are arguably as good.

Almost every Forex broker offers the use of the MetaTrader 4 trading platform, although cTrader brokers are less common.

It is a fact that choice of trading platform is not really that important, although traders will have their favorites based mostly upon the intuitive usability of the platform.

If it is a deal-breaker for you and you are set on one of the less common Forex trading platforms, this could restrict your choice of broker, so you would be well-advised to try to be flexible here in this case.

14. Check if a Broker Offers Low Fees

The most important fees charged by brokers are spreads and commissions applied to every trade you make, but there are other, more hidden fees as well.

Examples of more “hidden” fees worth looking into include such fee types as overnight financing charges on open trades, otherwise known as swaps, which are charged by every Forex / CFD brokerage I have ever seen. If you will be keeping positions open regularly past 5pm New York time, you will probably be charged a small fee based upon an interest rate and the size of your open trade. Unfortunately, these fees fluctuate in line with money markets so they can be difficult to assess, but you can compare the rates charged on the same day by different brokers and see which one offers a better deal. Some brokers publish these rates on their websites and update them daily as they change. Others are less transparent, but you can typically find the rates in their trading platforms, although demo accounts may not reflect the true rates offered. A few brokers also charge account inactivity fees, and some charge withdrawal fees in addition to the cost of the withdrawal method which may apply. It is worth considering how often, how much and how long you expect to be trading, to get some idea of the total fees you will be paying each broker you are considering depositing with.

15. Suitable Fee Model for Day Traders?

Day traders do not have to worry about swaps (overnight financing fees) because day traders rarely hold positions open over 5pm New York time when they are generally charged or paid. Instead, day traders need to be especially concerned with swaps and commissions, because day traders will often be making a relatively large number of trades. The best brokers for day traders tend to be those that do not impose minimum trade times over which any open trade must be held – this can be shocking, but some brokers do this, so check the small print on their sites carefully. Finally, brokers suiting day traders will have no problem with scalping and will offer very competitive spreads and commissions – very often, these will be ECN Forex brokers.

16. Check Broker Spreads

After safety of deposit, this should be your second or perhaps third consideration in choosing a broker. Your cost of trading will impact your profitability, so this is very important. Choose a broker that offers competitive spreads. As a good benchmark, any broker charging more than 1 pip as an average spread on the benchmark EUR/USD currency pair is probably not going to be competitive here, even when all issues are considered.

Keep in mind that the spreads you see when you are paper trading a broker’s demo account will not necessarily match the spreads offered in real time in a comparable live account.

17. Is a Micro Account Available?

Most brokers today offer trading in Forex with a minimum trade size of only 1 micro lot in a micro account. A micro lot is 1% of the size of a standard lot (typically 10,000 units of the denomination currency). This means that brokers offering micro accounts make it possible to trade with quite suitable, conservative leverage and money management, even with a deposit of only approximately $100 or equivalent. This is great news for smaller depositors, but they should still be sure to check their favored brokers do allow trading in micro-lots.

18. How Many Currency Pairs are Offered?

Most brokers publish on their website a list of all the assets the offer their clients the ability to trade. You will of course always find the major Forex pairs there, but the more minor pairs and crosses, not to mention the exotic currencies, are a little rarer.

There is no reason why Forex trading cannot be profitable with just a handful of major currency pairs. However, some traders may require a very diversified trading style, or might wish to trade some exotic currencies. If you fall into this category, it is worth searching through your shortlisted broker’s websites and checking exactly which Forex pairs and crosses are on offer.

19. Markets & Products 

Most Forex brokers are not just selling the ability to trade Forex but are also offering trading in CFDs covering commodities and major equity indices, and sometimes also individual stocks and shares. There are even a few brokers offering more unusual products, such as Forex options.

20. Can I Try a Demo Account?

It is practically unheard of for any Forex broker not to offer a demo account. This means that if you are considering opening a real money account with any Forex broker, you can try them out first in something approximating real conditions by opening a demo account with them, in which you trade imaginary funds in real market conditions, albeit without real liquidity and execution issues.

21. Is Enough Leverage Available? 

Forex brokers invariably offer leveraged trading, meaning a client can trade with more funds that they have actually deposited.

The exact amount of leverage offered is partly up to the broker, although each different regulatory regime imposes different maximums on different types of assets.

Forex is usually the most highly leveraged offering.

Basically, the very highest leverage is offered by the least regulated or unregulated Forex brokers, often at 1000 to 1 or even higher. This is far more leverage than anyone could ever need.

Forex brokers usually publish the details of the maximum leverage offered. There is no obligation to use it – even if your broker is offering you lots of leverage, you do not need to take it.

Traders looking for brokers with unusually high leverage will have to make a point of checking this, but for most traders, it should not become an important issue.

22. Forex Broker Bonus Offering 

Some brokers regulated outside the European Union offer bonuses to new depositors, which usually take the form of adding funds to the account.

If this sounds too good to be true, that is because it usually is – read the small print, which generally stipulates bonuses cannot be withdrawn until the funds have been used to make many trades. This means that bonuses are mostly not only a marketing device but may be used to encourage clients to over trade and delay withdrawing profits.

It is probably most worthwhile ignoring bonuses completely.

23. Available Order Execution Types 

Almost every Forex broker today offers the full range of order execution types. However, there are two especially worth checking which can be especially useful for some trading styles: trailing stop, and OCO (“one order cancels the other”).

24. Broker Reporting 

Some brokers offer a reporting function which can be useful when you are writing your tax return at the end of the year if you have profits or losses to report. This is probably most useful for U.S. persons who are subject to fill in highly complex tax returns.

25. Available Account Types 

Traditionally, brokers were either ECN or market-making brokers. Today, many brokers offer a choice between the two as different account types. Many brokers also tend to offer a wide range of different account options, which offer better deals depending upon how much you want to trade, and what trading style you tend to utilize. Therefore, it is worth reading the various options carefully and considering what best meets your requirements as a trader.

Scams 

Unfortunately, the Forex industry has historically suffered from scammers setting up unregulated or extremely lightly regulated brokers. These scam brokers tended to use a range of tricks to make their clients lose money, or to make it very difficult for clients to withdraw any funds they deposited.

I have taken care to ensure the brokers listed do not fall into this category.

There are also various scams which unscrupulous brokers may run quietly to maximize their clients’ losses where possible. You may find a broker which is well regulated and which will return your deposit, but which quietly engages in unfair manipulation.

Review Methodology 

At DailyForex, we have assembled a team of expert traders who have experience in trading their own money with retail online Forex / CFD brokers to conduct an overall assessment of what is on offer in this space. Our dedicated team examines hundreds of Forex / CFD brokers and assesses the offering and performance of each across nine key evaluation categories:

  • Regulation and Security: we check the broker’s claims against the regulatory registers and include detailed information such as license numbers to verify the broker’s regulatory position.
  • Fees
  • What Can I Trade?
  • Account Types
  • Trading Platforms
  • Unique Features
  • Research and Education
  • Customer Support
  • Bonuses and Promotions.
  • Opening an Account
  • Deposits and Withdrawals

We do not give these key categories equal weighting as some categories are much more important than others. Our team of expert analysts conduct reviews by opening live accounts and report a “user’s experience” as well as detailed research into the entity which is included as background within each review. Additionally, our calls are backed up by evidence which is presented within the reviews.

On average, a broker review takes about 10 hours to research, test, compile and write. Our more popular Forex brokers are completely re-reviewed approximately once every six months. We scour the news daily for any new developments which are worthy of being included in a review as an update.

FAQs 

What is the Best Forex Broker for Beginners?

The best Forex broker for beginners is one that offers not only competitive spreads and commissions, but also competitive overnight swap rates, as beginners usually find longer-term trading styles more profitable. Offering an intuitive, easy to use trading platform is also a big help to beginner traders.

Are Forex Brokers Reliable?

Some Forex brokers are reliable, and some are unreliable. The easiest and best way to tell whether a broker is reliable is to check whether they have secured regulatory approval in a major financial center with a good regulatory reputation.

What is the Best Website for Forex Trading?

Forex brokers offer trading in Forex, not Forex websites, although all brokers have websites. The best Forex broker for you will depend upon how much money you want to deposit, what you want to trade, how often you want to trade, and your overall risk tolerance. Your country of residence and citizenship can also play a role in answering this question.

How Do I Choose the Best Forex Broker for Me?

Consider what assets you want to trade, what style of trading you want to do (long or short-term), and how much money you wish to deposit. These factors are the most important considerations and applying them will enable you to create a shortlist from brokers which are well-regulated and have good reputations. You can then make your final choice on the nice-to-have factors.

How Do I Know if a Forex Broker is Regulated?

Forex brokers that are regulated will always mention the details of their regulatory licenses on their websites, usually under the heading “regulation” or “about us”. If you cannot find any details about regulation, the broker is probably unregulated and should be avoided.

What is the Minimum Deposit for Forex?

Many Forex brokers require a minimum deposit of $100 or the equivalent, but it is becoming more common to find brokers requiring only $10 or even stipulating no minimum at all. Remember though, that it is very difficult to trade safely with even a micro account unless you deposit at least $100.

What is the Best Forex Trading Platform?

The best Forex trading platforms are MetaTrader 4 (if enhanced add-ins are used) and cTrader.

How Do I Know if My Forex Broker is Regulated? 

You can tell very easily whether a Forex broker is regulated, as brokers will almost always publish this information prominently on their websites, as it is good marketing to potential customers.

You do not have to take a broker’s word that it is regulated by a particular regulatory authority – you can and should check the regulator’s website to ensure the broker in question is listed there as having secured their regulatory approval.

What is the Difference Between a Dealing Desk and an Agency Broker? 

A dealing desk broker gives its clients a price to trade, but often makes no actual trades in the real market to cover this, or only partially covers the net trades being made by its clients. Dealing desk brokers get to keep so or all the money their clients lose.

An agency broker just matches the orders of their clients, so if one wants to sell and the other wants to buy in the same quantity, they effectively just facilitate the exchange, while taking a commission and/or a spread as their profit margin. ECN brokers are agency brokers.

How Do I Calculate Forex Trading Costs? 

You can calculate your likely cost of trading with any broker by looking at their typical spread and / or commission in what you want to trade and multiply that by the quantities you typically trade. If you hold trades open overnight (past 5pm New York time), you will need to do the same with their overnight swap rates applicable, although these can change quite markedly from day to day so are difficult to calculate in advance.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.