A large majority of Forex brokers are market makers, meaning they determine prices offered for trading to their clients, and act as counterparties to their clients’ trades. While many argue this creates a potential conflict of interest, other analysts point out that for some traders, using a market maker can result in a better and less risky trading.
High floating leverage + fast execution
High level regulation in multiple jurisdictions
Impressive range of tradeable assets including vanilla options and gold options
Marketsi strategy builder helps traders trade smarter
Competitive trade execution with low slippage
CFD service 72% lose money
Best platform for new Forex traders
CFD service 72% lose money
68% of retail CFD accounts lose money
Best social trading platform on the market
Excellent choice of options for crypto traders
68% of retail CFD accounts lose money FXTM
, Best all-around: high floating leverage + fast execution.
, Highly regulated, choice of fixed or floating spreads.
, Wide range of CFDs + trailing stop losses.
, Best broker for social traders and crypto traders : 68% of retail CFD accounts lose money.
5.0/5 in this category
Best all-around: high floating leverage + fast execution
FXTM, or Forex Time, is one of the best all-around brokers in the world. The 10-year anniversary of this fast developing forex broker was celebrated this year. This reputable broker, with a decade of experience, is now accepting traders from Cyprus, the United Kingdom, and Mauritius. You can trade a wide range of currencies, as well as gold, silver, and other precious metals, with FXTM. Traders who buy stocks through Forex Time become the complete legal owners of the stock. FXTM is the appropriate broker for you if you want to invest in commodities, CDFs, equities, metals, indexes, or oil.
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
5.0/5 in this category
Highly regulated, choice of fixed or floating spreads
AvaTrade is a fantastic forex broker for both novice and experienced traders. While AvaTrade is available in a number of countries and has official regulator certificates in Australia, Israel, the United Arab Emirates, Ireland, the British Virgin Islands, and Japan, it is evident that the broker is best suited for traders from South Africa and the British Virgin Islands. This is especially true for traders from various parts of the world that require larger maximum leverage. With over 50 currency pairings, almost 30 commodities, many cryptocurrencies, CDFs, assets, certain bonds, metals, and much more, you will have a wide range of trading possibilities.
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
4.5/5 in this category
Excellent educational offerings
Markets.com is a UK based company that was founded in 2008. The forex broker trader that offers clients over 2000 assets to buy and sell. These assets consist of cryptos, currencies, commodities, EDFs, index EDFs, and more. The broker is regulated by four different highly respected regulating bodies, namely the Financial Conduct Authority in the United Kingdom, the Cyprus Securities and Exchange Commission in Cyprus, The Australian Securities and Investments Commission in Australia, and the Financial Sector Conduct Authority in South Africa. Markets.com is also available on the London Stock Exchange where they are listed as LSE: PTEC.
Competitive commission-free Forex fees from 0.6 pips
Well-balanced choice of trading instruments with 2,200+ CFD Assets
Competitive proprietary trading platform alongside MT4/MT5
Excellent Customer Support
4.5/5 in this category
Wide range of CFDs + trailing stop losses
Plus500 is a forex broker based in Sydney, Australia. The company was founded over a decade ago in 2008. Plus500 has spent the last 13 years building their reputation and fortifying their position among the top forex brokers in the world. Their efforts in doing so have been extremely successful as they are considered to have one of the best forex trading platforms with competitive rates. Beyond this, they also have a couple of regulating bodies that oversees their actions in order to ensure that all operations are above board and that their clients are protected. They are currently licensed by CySEC, the ASIC, the FMA, the FCA, the FSB, the MAS, and the FSB.
Low leverage for retail traders
Sub-standard trading platform without support for automated or social trading
No research and limited, below-average educational content
Lack of trading tools
4.5/5 in this category
Best broker for social traders and crypto traders : 68% of retail CFD accounts lose money
eToro was founded over a decade ago in 2007 and has since grown exponentially. The forex trader has built a user base of more that 17 million registered users on their platform. By using the eToro platform, users will have access to over 2500 assets comprising of nearly 50 currencies, almost 100 cryptocurrencies, over 30 metals and commodities, over 2000 assets, and more. eToro is regulated by the Financial Conduct Authority in the UK, the Australian Securities & Investments Commission in Australia, the Cyprus Securities and Exchange Commission in Cyprus, and the Financial Services Authority in the Seychelles.
Active investment community ideal for social trading
Dedicated tools for social trading
Broad cryptocurrency selection
Expanding educational offering for beginner traders
Once you have decided that a market maker Forex broker suits your trading needs, you will have plenty of choices. The most important considerations you should have in making your final choice are the broker’s regulation and reputation, fees, and range of assets offered. The best approach is to make a shortlist based upon these factors then compare our assessments to see what will give you the best deal for your trading style.
Despite the widely negative portrayal of the market maker broker execution model compared to ECNs, market makers can offer a good deal to many traders. Additionally, they remain essential to the financial ecosystem and provide liquidity. Without market makers, the retail Forex market would be considerably less fluid, and trading for all would be riskier. Traders will often find that during more illiquid markets, market makers offer superior spreads, execution, and liquidity to what is offered by ECN brokers.
Market makers do not charge commissions but earn revenue via mark-up on raw market spreads which they get from their liquidity providers, who are larger (usually non-retail) brokerages or banks. For example, if the EUR/USD trades with a 0-pip spread on an ECN (electronic communications network), accessible via ECN brokers which charge volume-based commissions, a market maker might display the same with a mark-up of 0.8 pips. It covers their costs, results in profits, and usually protects market makers from a loss in the asset value after buying it from the seller and selling it to a buyer. However, market makers do take risk in effectively taking uncovered positions in the market and can find themselves fatally exposed by sudden and dramatic market movements.
Since market makers brokers have their own inventory of assets, they can also directly profit from the losses of their traders. Market makers typically operate two order books, often known as the A and B books. Traders with profitable records are assigned into the A book, with all others placed in the B book. The former is the one they access the markets with, and the latter handles internal order flows from clients. For example, if one group of traders at a market maker wish to purchase 50 lots in the EUR/USD and another group seeks to sell 100 lots, the market maker might match the 50 lots between clients in their B book and purchases the reaming 50 lots for its inventory in the A book. It can then sell the 50 lots in the open market to any buyer. The B book handles internal retail orders, and with an average of 75% to 80% of traders losing their deposits within a few months, it presents a highly profitable (but potentially very risky) business model for brokers. Market makers brokers earn money from their A book via mark-ups on raw spreads, where they compete for orders.
There is a strong reason why it is important to be very careful in selecting a market maker Forex broker, and to use a reputable listing such as ours as a guide – the execution model can be ripe for abuse in the hands of unregulated or unscrupulous brokers. Sharp practices to watch out for include stop-loss hunting, which generates premature trading losses by spiking spreads artificially, typically using a news event as cover for plausible denial. Traders should ensure that market maker brokers offer reasonable mark-ups. The best market maker Forex brokers will quote EUR/USD spreads ranging between 0.4 pips and 0.8 pips during the London/New York overall, with all major currency pairs below 1.2 pips and most minors below 2.2 pips.