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Monetary Market Advisors

Forex Brokers

best-forex-brokers

Forex brokers provide a trading platform for currency traders on the Foreign Exchange market. Most brokers do not charge a registration fee or any monthly fees, but they do take commissions and/or a hidden charge automatically applied to every trade, also known as spread.

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.

Broker Description Bonus Website
OANDA
  • Most popular and trusted broker
  • No minimum deposit
  • No commissions
  • Spread as low as 1.1 pips
$100 for Global markets account only Official Website Our review
FXCM
  • Best trading platform and education
  • $50 minimum deposit
  • Small or no commissions
  • Spreads from 1.5 pips
$50 to $150 bonus. Depending on deposit. Official Website Our review
FOREX.com
  • Award winning broker (2014)
  • $50 minimum deposit
  • Small or no commissions
  • Spreads from 1.5 pips
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
Deposit Bonus
Average Investment per Trade/Exchange $100 $1000 >$10,000
Leverage 1:3 1:10 1:50

Higher leverage is very risky.

Commissions

Since the trade is smaller, it is best to have lower commissions.

Average

At higher trades, commissions are negligible.

Spread

With smaller trades, spread is negligible.

Average

Since the trade is larger, it is best to have lower a spread.

Education

Forex trading education + platform tutorials

Platform tutorials

Brief platform documentations

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
Skill Level
  • Beginners
  • Experienced traders
  • Experienced traders
  • Experts
Benefits
  • Lowest initial deposit requirement
  • Best initial registration bonus
  • Powerful user-friendly interface and tutorials
  • Low trading spreads
  • Low commissions per transaction
  • Powerful user-friendly interface with advanced options
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

brokers-by-countriesDue 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:

Country Main Regulator Strictness
USA
USA-Flag
The National Futures Association (NFA) ran by The Commodity Futures Trading Commission (CFTC) List of Brokers
Canada
Canadian-flag
The Investment Industry Regulatory Organization of Canada (IIROC) List of Brokers
United Kingdom
UK-flag
The Financial Conduct Authority (FCA) List of Brokers
Australia
Australian-flag
The Australian Securities and Investments Commission (ASIC) List of Brokers
International
International-flag
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.

Updated: November 2, 2016 — 3:41 am
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