Written By Tim Baudin
Forex Trading Instructor
Last Updated : Sunday 26th September 2021
On this page, we present the current top Forex brokers for 2021.
Attracted by the quick profits, millions of new traders make their way into the financial markets each year. All these beginners have to trade forex through an exchange or a broker that enables them to buy or sell a currency based on the quoted price. The markets don’t care if you are a newbie or a pro – the prices are the same for everyone, and the beginners get wiped out early, contributing to the 90 percent failure rate.
A good forex broker has everything that satisfies any trading needs. It has various instruments to choose from alongside competitive pricing models, whether it’s forex or stocks. Many deposit and withdrawal options are available as such, with no fees charged on any. These brokerages are also kept under strict control and assessment by various regulatory authorities.
Some companies have their own trading platforms with an even better layout and tools to help a trader gain an edge in the market. They provide the right education materials suitable for both new and old traders looking to sharpen their skills.
24/7 customer support has to be available. However, most brokers offer 24 hours support five days a week.
These are our personal favorites, based on various factors like real user reviews, trading platform features, type of accounts, spread and customer service quality, regulation, and stability etc.
eToro – Best Social Trading Platform
- Simple to use trading platforms
- Personal service for each customer
- Learn and practice for free
- Follow And Copy The best Traders with eToro social trading
eToro is highly recommended social investment network specially for beginners. With eToro , traders can learn and follow other forex trading experts. (eToro Review)
HotForex – Best for Automated Trading
- EAs, Scalping, and Hedging allowed
- Superior Trading Tools
- Multiple Account Types
- Convenient Platform Options
HotForex offers fast and easy withdrawal process which attracts more and more traders to trade with them. Advanced trading platforms and forex education corner have made this broker popular for newcomers. (HotForex Review)
Promotional Offer : 100% credit bonus, 100% SuperCharged Bonus, 30% rescue bonus
XM – Best Execution Available Everywhere
- Trade Forex with No Requotes
- 99.35% of trades executed in less than one second
- Negative Balance Protection
- 8 Full Feature Trading Platforms
XM have many advantages over other forex brokers. Their efficient execution and no re-quotes strategy have made them a unique broker in the forex market. (XM Review)
Promotional Offer : $30 No Deposit Bonus
FXTM – Best ECN Broker
- Quick Deposit and withdrawals
- Superior Customer Service
- Multiple Account Types
- Low Minimum Deposit
FXTM or Forex Time has a comprehensive list of accounts, instruments, trading platforms, research, and educational material that can be tested with a minimum deposit of just 10 USD. The broker is considered a reliable option to invest by many traders as it undergoes monitoring from top tier regulators. FXTM does its best in providing its customers with the best possible trading experience there ever is.
FOREX.com – Best For US Traders
- Super competitive fees
- Available for US traders
- Cash rebates
- More than 4500 markets to trade from
Forex.com takes the lead on other brokers by making its platform open to US traders. Founded in 1996, it is one of the most reliable companies to trade the forex market with decent leverage and tight spreads. The ability to use MetaTrader platforms for executing your positions along with low latency makes it also a right candidate for scalpers and day traders alike. 500 USD in funding is required to get one started with Forex.com, which can be made through various deposit options available within the website.
XTB – Best Forex Broker for Low Costs
- Tight spreads
- Excellent trading platforms
- High-quality research and support
- Good for beginners
A broker that has a user-friendly interface designed to give the best service in terms of trading platforms. XTB is always known for its low costs due to tight spreads and zero commissions on forex pairs. They have a separate category that shows Islamic accounts and their specifications with no swaps or overnight fees charged on your trades. The account opening process is pretty simple and is catered to get you in the markets within a day.
Plus500 – Best for Beginners
- Over 2000 instruments
- Zero withdrawal fees
- 24/7 customer support
- Many deposit options
Plus500 is reasonably good for beginners to get their hands in trading. Client money protection is given to keep your funds safe while the company charges nothing for any cashouts. User-friendly android, web, and desktop trading apps are provided with lots of tools and customizations to help you trade better. Negative balance protection and guaranteed stop-loss cover your risk and money management.
FxPro – Best for Experienced Traders
- Deep liquidity
- 4.5 USD per traded lot on cTrader
- Low latency
- Multiple account types
FxPro can be termed as traders heaven when it comes to executing the positions with ultra-low latency. The stats on the website speak for themselves. Multiple international awards are won by the broker. The company provides deep liquidity perfect for professionals and institutional-grade traders as they come in with big lots. The choice of trading platforms is also diverse, with FxPro having the privilege to get your hands on four different software types. The brokerage is perfect for any advanced trader looking to play heavy with quick executions and then withdraw hefty profits.
IG – Best All-Round Offering
- Super competitive trading costs
- Over 17000 instruments
- Research and education
Founded in 1974, IG ranks our list as one of the top brokers that comes with safe options to trade and over 17,000 assets to choose from. You can access the eye-catching and simple to use trading platforms by opening an account that is entirely digital and free of any hard work. The trading cost is kept pretty low at IG as it has a minimum spread of 0.4 pips on majors. The firm charges no deposit and withdrawal fees
How to Choose a Forex Broker
Forex brokers help you to carry out currency trading at the comfort of your home by working as an intermediary between you and the local bank. Since the inception of the internet, the number of companies providing forex services has increased. With the increasing amount, the competition is tight in regulation, costs, assets, platforms, education, customer services, etc. Choosing the best may be a tedious task, especially if you are a beginner. In this guide, we will explore various essential criteria one should consider while comparing multiple brokers.
1. Types of Broker
We can divide forex brokers into two types:
- Dealing desk exchanges work by taking an opposite position to your trade. They take the high loss rate of 90% to their advantage and reverse all the incoming executions to turn it down to 10%. Such brokers also make money by passing down the spread costs to traders. No fees are associated other than this.
- ECN (Electronic Communications Network) brokers do not take the other side of your positions. They are known for fast-paced executions with minimum latency. Such companies usually have zero differences between the bid and ask, i.e., spread and profit from the fixed commissions charged per lot.
2. Regulated or Non-Regulated
Always invest your hard-earned money with a regulated brokerage service. Unregulated exchanges cause many problems for the traders, including low liquidity, slippage, no execution on orders, to name a few. Companies who come under strict checks by top tier authorities are subjected to bans and permanent suspension of their services in case of any mischief. The list below shows the best firms that keep a firm eye on the brokerages:
- United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC),
- United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA),
- Australia: Australian Securities and Investment Commission (ASIC),
- Cyprus: Cyprus Securities and Exchange Commission (CySEC),
- Switzerland: Swiss Federal Banking Commission (SFBC),
- Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN),
- France: Autorité des Marchés Financiers (AMF),
- Canada: Investment Information Regulatory Organization of Canada (IIROC).
Keep in mind that unregulated brokers may offer attractive schemes and bonuses to lure you into their trap. They don’t have the best interest of their customer at heart, and at the end of the day, you’ll end up in disappointment while trading with them.
3. Types of Account They Provide
Standard and ECN accounts are widely prevalent among traders in the financial industry, which differ based on spread, commissions, deposits, latency, leverage, etc. There are also mini and macro portfolios that offer even low risk and are perfect for novices entering the markets.
Built into spread
Fixed commission per lot
Start from min 0.5 pips
Usually 0 pip
Table 1: A brief overview of differences between standard and ECN accounts.
Note that every broker may not provide ECN services, and you may have to research beforehand to see which one does.
4. Trading Platforms
A trading platform is a place where you carry out and manage all your executions. Choosing the best one is of utmost importance while selecting a broker as it can have a significant impact on your trading. The industry-standard MetaTrader 4 and 5 are the most preferred by traders in terms of trading programs. Nowadays, currency exchanges have started to develop their own software with comprehensive tools in the race to beat others. Strategy tester, charting tools, charts, multiple time frames, order types, one-click trading, etc., are useful features to look out for.
Special Features in Trading Platform
Some brokers offer special features combined with their trading platforms. For example, IBFX provides their own build EAs (Expert Advisors) and indicators, Etoro includes a copy trading option to their trading platform, FXCM offers advanced multiple time frame charting techniques and other additional indicators etc.
5. Commission and Spread
Trading commissions and spreads are the bread and butter of a forex broker. Whenever a trader executes a position with the exchange, he/she has to pay a related fee built into the spread or given in terms of a fixed price. These costs vary from one company to another and are generally low for those with a more extensive account size as the amount of traded volume is also high leading to more commission. For day traders and especially scalpers, these costs can make a massive difference in terms of consistency. They always prefer brokerages with ultra-low charges.
6. Deposit and Withdrawal Methods
The ability to get your cash in and out of any broker through various methods is always handy. The most common ways to fund your account include credit/debit card, wire/bank transfer, e-wallets, Paypal, and some local transfers. Stay clear of companies who charge a considerable fee during deposit or withdrawal. In most cases, deposit and payment methods should be similar as the exchange sends the withdrawal to the same account from which the trader has deposited his investment.
7. Customer Service
Good customer support ensures that all your inquiries and issues are responded to with ultimate care and professionalism. Most brokers can be reached out through live chat, phone, and email services available 24/5; however, the best ones are on the line 24/7. Some companies also offer a callback option, which adds to their overall client care score.
8. Bonus or Rebate
Many forex brokers offer promotional services, rebates, and bonuses, which vary in many ways. Good rebates are always tasty to withdraw alongside your profits. These features are beneficial; however, using them with care is advised. Deposit bonuses are catchy to leverage your account but can also lead to quick margin calls. In some cases, loosely regulated brokers offer high bonuses and rebate features to attract novice traders who end up in their trap and blow their accounts. Be extra vigilant when you are getting more than what you need.
There are many features to look at while selecting the best broker for your trading needs. Each firm that provides exchange services to its client may differ a lot in features compared with others. Keeping the qualities mentioned above will help you choose the best brokerage for beating the markets with consistency.