This guide will help you pick the best Forex broker that is fit for you. There is no #1 broker since there are many factors to consider. Every broker has its advantages and disadvantages.
Top ‘Overall’ Brokers
By ‘overall’, we consider popularity, rating, trust, reputation, platform, and country availability.
||$100 for Global markets account only||Official Website Our review|
||$50 to $150 bonus. Depending on deposit.||Official Website Our review|
||Non||Official Website Our review|
You cannot go wrong with the brokers above. Thousands of people trust them and they outperform most smaller companies.
Forex Broker for your Skill Level
Every Forex broker has its own pros and cons. We found that selecting the correct broker should depend on your trading skill level. Most brokers often tend to reward traders with higher initial deposits and larger trading volumes.
Before deciding which broker to pick, categorize yourself as one of the following:
|Beginner||Experienced||Advanced / Expert|
|Initial Deposit||Demo Account OR $0 to $1,000||$1,000 to $10,000||>$10,000|
|Average Investment per Trade/Exchange||$100||$1000||>$10,000|
Higher leverage is very risky.
Since the trade is smaller, it is best to have lower commissions.
At higher trades, commissions are negligible.
With smaller trades, spread is negligible.
Since the trade is larger, it is best to have lower a spread.
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The best Forex broker differs from person to person. The table above guides you to the next step in selecting the correct intermediary.
|Lowest Deposit and Best Bonus||Lowest Spread and Commissions|
|Select List of Brokers|
Spread vs Commissions
From the table above, you will see that Spread and Commissions are two of the biggest differentiators between the broker categories. Here is why:
- Spread is like a commission that is implied as a percentage of the transaction.
- Commissions are fixed dollar values per transaction.
For example, let’s say you have $100 USD and you want to buy CAD.
- Option A – 2 pips spread. This means that 0.0002 will be added to the exchange rate. This will cost you $0.02 when trading $100. Very small percentage amount.
- Option B – $5 commissions. This will cost you 5% of the trading amount. Which is quite high.
Now, take the same 2 options above, but with $10,000 leveraged at 1:50.
- Option A – 2 pips spread. A 0.0002 will be added to the exchange rate. This will cost you $100 when trading $10,000 leveraged as above. Those amounts can really add up over time.
- Option B – $5 commission. This will cost you a negligible percentage of the total amount.
The examples above should explain why beginners and advanced traders would want to search for different trading commissions. Many brokers offer different packages that fit different types of traders.
Brokers by Countries
Due to strict Forex regulations in many countries, some brokers limit the registration of potential customers to exclude or include certain locations. Almost every country has its own regulatory authority, but only the United States of America restricts its citizens to only trade under its own regulatory systems (NFA or CFTC). This is why many brokers do not accept US residents; some even block their website entirely.
Any other trader outside that is not a USA citizen, is able to pick a broker based on its regulations. Some brokers operate under their brand, but have divisions in several countries to comply with different regulations.
The options below list brokers by countries – based on their office and regulations. Some brokers restrict registration to their home countries, others do not:
||The National Futures Association (NFA) ran by The Commodity Futures Trading Commission (CFTC)||List of Brokers|
||The Investment Industry Regulatory Organization of Canada (IIROC)||List of Brokers|
| United Kingdom
||The Financial Conduct Authority (FCA)||List of Brokers|
||The Australian Securities and Investments Commission (ASIC)||List of Brokers|
||Japan (JFSA), Singapore (MAS), UAE - Dubai (DFSA), Cyprus (CySec), Switzerland (FINMA), Belize (IFSC), Germany (BaFin), South Africa (FSB).||List of Brokers|
*Strict regulations that are meant to minimize loses, but also restrict trading options and potential.