Table of contents
Every day, more than $4 trillion is accounted in traded value in the world’s largest financial market, the foreign exchange market. It is currently growing without a central place for itself and with Forex brokers increasing number indeed. The wide brokers’ offer might be challenging for traders.
Choosing the best broker to direct a trading activity becomes a difficult task. Traders must examine consciously and carefully the Forex market among stunning magazines and mind-blowing web advertisements to find out the indicated Forex broker that can manage successfully the trading activity. Here, five must-dos are given as guidance on how to chose Forex broker question, to those who want to select the right Forex trader in this competitive environment.
In The United States, Forex trading activity is under the regulations of the National Futures Association (NFA). This is a self-regulatory and wide industry that rules, programs and develops services in order to assure the soundness of the market, traders, investors and, their right understanding of the binding responsibilities. Additionally to this industry, the US Commodity Futures Trading Association also works as an independent governmental agency that controls the prospective goods and options of the American market.
Therefore, a trustworthy Forex broker is registered in the aforementioned organizations as a Futures Commission Merchant and Retail Foreign Exchange Dealer. In fact, the certified broker will portray his/her affiliation and NFA member number online in the About Us section of every site.
Don’t let yourself to be dazzled by good-looking pages! Check brokers’ NFA membership or CFTC regulation before you choose Forex broker.
Certain offers are given to brokers, such as:
Leverage and Margin. Leverage operates in benefit of winner traders due to their high-profit potential increased. It also offers a loan boosted according to the margin of holders account, so traders have access to several Leverage amounts depending on the broker, such as 50:1 or 200:1. That means that a trader with an account with $1,000 can hold a position valued in $50,000 only by using 50:1 leverage amount. But be cautious when using it! As it can be seen in the article Forex Leverage: a Doubled-Edge Sword and Adding Leverage to your Forex Trading, leverage might work in favor of traders, but it can ruin them according to their amplified losses potential at the same time.
Commissions and Spreads. Commissions and spreads represent a source of money for brokers. Commissions can be charged with a specific percentage of the spread (bind and price difference of a Forex pair). Many brokers exonerate commissions and profit with wider spreads. This last can be shown when a spread is fixed as a spread of three pips – the minimum unit of Forex change price -, or when a spread price varies depending on the market volatility.
For example, if a 1.3943-1.3946 EUR/USD quote has three pips spread and bought at 1.346, it will lose three pips of value in its position because it is not sold for the initial price, 1.3943 pips. Most common trading pairs – EUR/USD and GBP/USD – usually have narrow spreads than those with more scantly traded pairs. The wider the spread, the harder the profit. Take this into consideration when comparing FX brokers.
One of the most attractive features to newbie traders and investors is the purchasing power: it is bigger than the minimum traders’ deposits. So, brokers can offer a variety of accounts depending on the initial deposits requirements, among them standard, mini and micro accounts. These can be funded with very low initial deposits, less than $50.
Forex Brokers have policies regarding account withdrawals and funding. Withdrawals can be done by checks or wire transfer; and, accounts might be funded online by credit card, via ACH payment or PayPal, wire transfer, and business, personal or bank check. Brokers can also charge optionally a fee for any service provided.
Brokers can offer traders a broad selection of Forex pairs despite the great currency issues available for trading. Their offer should match with the pair(s) in which the trader or investor shows interest. However, a wide range is reduced to a few currencies as they get the whole attention of traders due to their enormous liquidity. The favorite ones are the Dollar/Japanese Yen (USD/JPY), the Euro/US dollar (EUR/USD), the US Dollar/Swiss Franc (USD/CHF), and the British Pound/USD Dollar (GBP/USD). Remember, if you choose a broker that does not offer your favorite pair, you will miss a great part of your profits.
Brokers support should be available to the client as Forex trading is happening: 24 hours per day. Personal calling to brokers should be simple and easy. Therefore, traders can take a quick glimpse of the service provided, the waiting times, and the representative’s accuracy to be inquired about spreads, leverage, regulations and, especially, company details. Brokers can be also asked about the size of their’ traded volume -better prices and executions are given to those experienced brokers normally; and, the time practicing their job.
A trading platform is an investor’s portal to the market that must provoke enthusiasm and have linkage with traders. The easiness of the interface and software chosen must be taken into account as well as its amiable presentation and technical/ fundamentals analysis tools’ completeness. Also, the platform design is a must to care: In contrast with poorly designed interfaces, a well-arranged trading platform has well-placed buy and sell buttons, customization options, order entry types, automated trading options, strategy builders, backtesting, trading alerts and, a panic button to close all open positions – only some software include this option – in order to avoid costly mistakes like adding a position by accident instead of closing it or going short when the opposite is desired.
Most brokers offer a free demo account, so traders can explore the platform before opening and funding one.
Doing a bit of research before committing a broker it is beneficial and advisable. It can increase investors’ possibilities to succeed in this aggressive environment. As a final remark: relying on your forex broker will be advantageous since more time and attention can be dedicated to the analysis and the creation of strategies.
If you are interested to trade like a pro, Investopedia introduces a guide to teach you how to do it: Five patterns you need to know.
$50
CySEC ,VFSC , FCA
loyalty Program
1:2000
2011
MT4 , MT5 , Mobile App
5$
CySEC, FCA, ASIC
30$, 50%+20%
1:1000
2009
MT4, MT5, WebTrader
$300
FSA, CySEC
1:1000
MT4
$100
CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA
1:400
2006
MT4, MT5, WebTrader, AvaTradeGO
USD 5,000
FINMA, FCA, ASIC, FSA, MAS, AFM
N/A
1:30
1992
SaxoTraderGo, SaxoTraderPro
$5
SVGFSA, FCA, DFSA, FSCA, FSA
From 30% to 100%
1:1000
2010
MT4, MT5
$250
FSCA
1:200
2012
MT4, WebTrader
15
CySEC
30%
1:500
2015
MT4, WebTrader
100$
FCA
N/A
30:1
2008
Custom
100
CySec, FSCA
N/A
Up to 1:300
2013
MT4, MT4 Mobile, WebTrader
$250
CySEC
1:500
WebTrader
1$
N/A
N/A
N/A
2020
Custom
$250
CySec, FSA, FSCA
N/A
N/A
2022
Custom
€250
CySec
N/A
1:30
In 2021 acquired CySEC license
MetaTrader 5
$50
Saint Vincent and the Grenadines
$25 for referrals, 100% deposit bonus
1:500
2018
MT4, Exco Prime, Mobile apps
$250
Seychelles
N/A
1:500
2020
MT4
$49
N/A
20% off
1:50
2024
DXTrade, MetaTrader 4, MetaTrader 5, cTrader, Match-Trader
$200
N/A
N/A
1:30
2022
Custom
$10
Risk Warning: YOUR CAPITAL MIGHT BE AT RISK
N/A
1:1000
2013
Proprietary
10 USD
FCA, CySEC, FSA
N/A
1:Unlimited
2008
MT4, MT5, WebTerminal
$10
N/A
N/A
1:500
2019
MT4, custom
$10
IFSC
1:2000
2009
MT4, MT5, R WebTrader, R MobileTrader, R Trader
$10
1:500
MT4
250$
FCA, NFA
N/A
200:1
1999
MT4
€250
CySEC
N/A
1:500
2016
MT4, WebTrader, Mobile App
$25
ASIC, CySEC, FSA, BVI
50%
1:400
2001
WebTrader, MT4, TradingView
$100
IFSC
N/A
1:777
2012
MT4/cTrader
100
FCA, CySEC, DIFC, CIMA
N/A
500:1
1977
MT4, MT5
$100 AUD
ASIC
N/A
500:1
2005
WebTrader, MT4, MT5, IRESS
AUD$200
ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA
N/A
1:400
2010
MT4, MT5, cTrader, TradingView
$500
N/A
N/A
1:5
2018
Web
250 EUR
FSA (Seychelles)
None
1:200
2023
FXRoad web & mobile platforms
250 EUR
N/A
N/A
1:400
2019
WebTrader
$1000
CySEC
N/A
1:30
2015
MT5, WebTrader
500
CySec
N/A
N/A
N/A
Browser Based
250$
ASIC, FMA
N/A
1:500
2019
WebTrader/MT4
$50
N/A
N/A
1:500
2015
MT4
$250
FSA Seychelles
Up to $5000
1:300
2018
MT5, WebTrader
$250
CySEC
N/A
1:500
N/A
WebTrader/Mobile
1 USD
ASIC, FCA
10 USD
1:500
2005
MT4, MT5, WebTrader
250
FSCA
N/A
1:400
2018
MT4, Webtrader, Mobile
$500
N/A
N/A
1:200
2018
MT4
250 USD
Swedish FSA, Finansinspektionen
N/A
200
2012
cTrader, MetaTrader 4, MetaTrader 5
$100
FSA, FCA, CySEC
$30 Welcome, more
1:500
2015
MT4/WebTrader
$250
SVGFSA
100% welcome bonus
1:500
2016
MT5 , WebTrader
$50
CySEC
50%
1:500
2011
cTrader, MT4, MT5
1000$
FCA, CySEC
N/A
500:1
1999
MT4, MT5
250$
CySEC
N/A
N/A
2012
SpotOption
50 USD
FSC Mauritius
20%, 50%
1:2000
2016
MT4, Ultima Markets mobile app
$1
Seychelles, MWALI
N/A
1:3000
2021
MetaTrader 5
$50
N/A
Partnership
1:500
2015
MT4
100$
CySEC, FSB
N/A
300:1 T&C Apply
2008
Indigo, MT5, Webtrader, MobileTrader IOS/Android
100 GBP/EUR,150 USD
FCA, FSC
N/A
1:300
2006
Trading 212
$0
FCA, ASIC, DFSA
20%
1:500
2007
MT4
$1
FSB
100%
1:500
2016
MT4
$100
SCB, ASIC
N/A
1:500
2016
MT4, MT5, WebTrader
$1,000
Mauritius Financial Services Commission
$100, $400, $2,000 welcome bonuses based on deposit size
1:200
2019
Mitrade
$1000
ASIC
1:5000
MT4, MT5
$500
MiFID, CySEC
N/A
1:30
2015
WebTrader 4
€250
VFSC
N/A
100:1
2018
WebTrader, MT4
5$
FCA
N/A
200:1
2005
MT4
250$
CySEC
N/A
200:1
2018
MT4
250$
FCA, CySEC
N/A
200:1
2017
Custom
$250
CySEC
N/A
1:30
2016
MT5
$500
MFSA
1:200
MT4, MT5
100$
ASIC
N/A
1:500
2019
MT4. MT5
N/A
FCA
N/A
N/A
2019
WebTrader
$200
CySEC
N/A
1:30
2017
MT4
500$
FCA, CySEC
100%
500:1
2010
Social Trader, MT5, MT4
$250
CySEC
N/A
1:30
2015
MT4, WebTrader, MobileTrader
$100
ASIC
$30
1:500
2015
MT5
$10
FMA
N/A
1:500
2007
MT4/Mobile
$200
ASIC, IFSC, CySEC
Max. 40%
1:500
2007
MT5/Mobile
$300
MFSA, MIFID, FCA, BaFin, AMF, CONSOB
N/A
1:100
N/A
MT5/Mobile
$200
CIMA
Yes
500:1
2018
WebTrader
$250
SVGFSA
75% Deposit
1:500
N/A
MT4
$100
SVGFSA
100% Credit
1:500
N/A
MT5
$500
CySEC
N/A
1:500
2005
WebTrader
10 USD
SVGFSA
25%/50%/100% Deposit
1:1000
2019
MT5
20$
No
100% Welcome Bonus
1:1000
2021
MT 4, MT 5, PAMM
50 USD
None
20%, 50%, 100%, 200%
1:1
2023
Custom web trading platform
10 USD
Not regulated
100% Deposit bonus; Respawn
500:1
2023
Jetvix web trading platform
10 USD
Unregulated
100% Deposit Bonus on the MT5 platform only
1:500
Unknown
MT4, MT5
50 USD
UAE Central Bank
None
1:100
2005
MetaTrader 5
10 USD
FSA SVG
N/A
1:2000
2022
MetaTrader 4
$100
FSC (British Virgin Islands)
$35 welcome bonus on 1st deposit
1:1000
2010
MetaTrader 4, JRFX App
1 USD
MISA, MWALI
100%, 333%, 5000%
1:3000
2022
Zetradex app, Zetradex web trader
$10
FSA
50%
1:400
2018
MT4,MT5
$300
N/A
N/A
N/A
2018
Web
$100
SFSA
$50
1:300
2017
MT4, Webtrader, Mobile
€250
N/A
N/A
1:100
2018
WebTrader
$100
FSCA
$30
1:200
2010
MetaTrader 4
200$
IFSC
N/A
200:1
2016
Custom
100$
FCA, CySEC
N/A
300:1
2015
MT4
$200
CIMA
1:500
2016
MT4, WebTrader
$250
SVGFSA
10%/20%/30%
1:400
N/A
WebTrader/Desktop
$500
IFSC, FCA
N/A
1:1000
N/A
MT4, cTrader
10$
N/A
100%
95
2012
MT4
$100
N/A
$100
1:1000
2018
cTrader
$0
ASIC
N/A
1:400
2006
MT4, WebTrader
50 EUR
CySEC
N/A
1:30
2019
Custom
200$
N/A
N/A
1:1000
2019
MT4
500$
N/A
N/A
1:4
2017
Custom
$1,000
N/A
N/A
1:500
2016
MT4
$10
SVGFSA
10% Welcome
1:500
N/A
MT4/MT5
$50
ASIC, CySEC, CMA
N/A
1:400
2006
MT4
$10
FSC
N/A
1:500
2018
MT4, MT5, WebTrader
250 EUR
N/A
N/A
1:200
2021
MT 4
20$
ASIC, FSA, FCA
N/A
1:200
2016
MT4, TradingView, Mobile, Web
1$
FCA
N/A
200:1
2005
xStation
100$
CySEC
50$
400:1
2007
MT4
200$
CySEC
N/A
200:1
2016
MT4
500$
N/A
N/A
1:20
2018
Custom
$250
IFSC
15% Referral
1:500
N/A
Desktop/WebTrader
$1,000
SVGFSA, VFSC
N/A
1:500
2002
MT4, MT5
$5
MFSA, VFSC, LFSA, BFSC
N/A
1:1000
1999
MT5, DTrader
500$
FCA
N/A
200:1
2011
Custom
500$
FCA
N/A
200:1
2015
MT4
1000$
MIFID
N/A
400:1
2000
MT4
25$
FCA, CySEC, FSA
N/A
100:1
2016
MT4
250$
CySEC
N/A
200:1
2016
Custom, MT4
100$
IFSC
N/A
500:1
2016
MT4
$100
N/A
N/A
200:1
2017
MT4
$0
N/A
100 DOGE
N/A
2019
Web
0$
FCA
N/A
200:1
2008
MT4
1000$
FCA
N/A
400:1
2010
Custom, MT4
100$
N/A
N/A
1:1
N/A
Custom
$25
FSA
N/A
1:1000
2005
MT4, Custom
500$
N/A
N/A
1:20
2019
Custom
$100
N/A
20% no deposit bonus
1:300
2018
MT5
€250
N/A
N/A
1:30
2018
WebTrader
$200
LFSA, CySEC
20% Deposit
1:500
2016
MT4
$1
N/A
From 40% to 100%
1:1000
N/A
Not clear
$200
ASIC
1:500
2017
MT4, MT5, WebTrader
$10,000
N/A
1:500
N/A
MT5, Custom
$200
N/A
75%
1:400
2018
MT4
100$
N/A
N/A
200:1
2010
MT4
400$
CySEC
N/A
200:1
2015
Custom
100$
FCA
N/A
200:1
2015
MT4
50$
CySEC, MiFID, FCA, BaFin
N/A
500:1
2013
FXINPRO Protrader 3
100$
FCA, CySEC
N/A
500:1
2006
MT4
100$
N/A
N/A
200:1
2016
MT4
25$
N/A
30%
100:1
2015
MT4
10$
FSA
N/A
200:1
2015
MT4
1000$
IFSC
N/A
200:1
2016
MT4
$200
N/A
N/A
100:1
2015
MT4
$2.5
N/A
N/A
2000:1
2009
MT4
$250
CySEC
N/A
1:30
2017
MT4, WebTrader
$200
BFSC
N/A
1:30
2017
WebTrader
$200
N/A
N/A
1:30
2017
WebTrader
25$
FSA
100% bonus
1:2000
2004
MT4, Custom
5$
N/A
100%, 20% deposit bonus
1:1000
N/A
MT4
$1000
N/A
N/A
400:1
2013
MT4
1000$
SVGFSA
25% deposit bonus
1:500
2018
MT5
$300
N/A
N/A
1:200
2017
MT4, MobileTrader, WebTrader
€1,000
N/A
N/A
1:20
2017
WebTrader
100
N/A
$20
1:400
2016
MT4
N/A
N/A
N/A
N/A
N/A
N/A
$250
N/A
N/A
N/A
2018
Web
250$
N/A
N/A
1:500
2019
WebTrader
$0
MFSA
N/A
1:100
2017
MT4, MT5
€250
FSU
N/A
1:100
2019
WebTrader
$500
N/A
N/A
1:500
2019
MT4
$100
FSA, The Fin Com
15% + cashback
1:1000
2007
MT4, MT5, WebTrader
250$
N/A
30%, 40%, 60%, 80% , 100% bonus
200:1
N/A
Custom
100$
SVGFSA
20$ welcome bonus
1:200
N/A
MT4
$10
N/A
$5000
1:1000
2018
MT5
100$
N/A
N/A
200:1
N/A
Custom
250$
N/A
N/A
100:1
2014
MT4
100$
FCA, ASIC
25$
400:1
2015
Cusom
200$