Best Forex brokerage companies for low-cost budget

Forex trading is not as expensive as many people believe it is. Of course, it is associated with relatively high risks, however, thanks to various trading strategies it is possible to minimize them. But, in order to start trading Forex, traders need to go through financial intermediaries, such as Forex brokers. These brokers themselves need to make money somehow in order to keep their brokerage services appropriate to the market standards. Therefore, brokers often charge commission fees or implement them within spreads.

Most of the Forex brokers with low spreads will provide higher commission charges on their trading platforms and vice versa. That is why it is not always easy to encounter the cheapest way to trade Forex. Obviously, the trading costs depend on the type of financial asset that you are trading, your trading volume, and most importantly on the brokerage firm. There are some Forex brokers that offer multiple trading account types for people with different budget ranges, trading styles, and risk tolerance.

For those traders who do not inherit a significant amount of financial resources, we recommend that they make research to identify low-cost Forex brokers. The article below will provide the list of them, as well as the overall description of the fees associated with trading Forex.

List of the cheapest Forex brokers

Usually, when examining the trading-related costs within the Forex market, traders should look for the trading conditions and prices of the broker. For instance, they should pay attention to the spreads and commission rates, as well as the convenience of the trading environment for the traders. Checking the quality of the brokerage services is also crucial since some of the cheaper brokers will often reduce costs at the expense of reduced quality. You can find the list of low-cost Forex Trading brokers below.

XM Group

XM Forex Review

Minimum deposit

5$

Regulation

CySEC, FCA, ASIC

Bonus

30$, 50%+20%

Maximum leverage

1:1000

Year founded

2009

Trading platform

MT4, MT5, WebTrader

AvaTrade

Review of AvaTrade – Broker with over 15 years of experience

Minimum deposit

$100

Regulation

CySEC, CBI, FSA, FFAJ, BVI FSC, FSCA, FSRA

Bonus

Maximum leverage

1:400

Year founded

2006

Trading platform

MT4, MT5, WebTrader, AvaTradeGO

SAXO Bank

SAXO Bank Forex Review

Minimum deposit

USD 5,000

Regulation

FINMA, FCA, ASIC, FSA, MAS, AFM

Bonus

N/A

Maximum leverage

1:30

Year founded

1992

Trading platform

SaxoTraderGo, SaxoTraderPro

HotForex

HotForex Review – Trade 1,000+ of Symbols with this Broker

Minimum deposit

$5

Regulation

SVGFSA, FCA, DFSA, FSCA, FSA

Bonus

From 30% to 100%

Maximum leverage

1:1000

Year founded

2010

Trading platform

MT4, MT5

ForexMart

ForexMart Review – High-class trading experience

Minimum deposit

15

Regulation

CySEC

Bonus

30%

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4, WebTrader

CM Trading

CM Trading FX broker review – Is it legit?

Minimum deposit

$250

Regulation

FSCA

Bonus

Maximum leverage

1:200

Year founded

2012

Trading platform

MT4, WebTrader

Plus500

Plus500 Review

Minimum deposit

100$

Regulation

FCA

Bonus

N/A

Maximum leverage

30:1

Year founded

2008

Trading platform

Custom

IQ Option

An in-depth IQ Option Review of fees, opportunities and more

Minimum deposit

$10

Regulation

Risk Warning: YOUR CAPITAL MIGHT BE AT RISK

Bonus

N/A

Maximum leverage

1:1000

Year founded

2013

Trading platform

Proprietary

Exness

Exness Broker Review – Should You Trade With It?

Minimum deposit

10 USD

Regulation

FCA, CySEC, FSA

Bonus

N/A

Maximum leverage

1:Unlimited

Year founded

2008

Trading platform

MT4, MT5, WebTerminal

OspreyFX

OspreyFX review – regulations, features and possibility of OspreyFX scam

Minimum deposit

$10

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2019

Trading platform

MT4, custom

EagleFX

EagleFX review – Start trading with safe and secure broker

Minimum deposit

$10

Regulation

Bonus

Maximum leverage

1:500

Year founded

Trading platform

MT4

Forex.com

Forex.com Review

Minimum deposit

250$

Regulation

FCA, NFA

Bonus

N/A

Maximum leverage

200:1

Year founded

1999

Trading platform

MT4

easyMarkets

Can You Trust easyMarkets? There Are Things You Need To Know

Minimum deposit

$25

Regulation

ASIC, CySEC, FSA, BVI

Bonus

50%

Maximum leverage

1:400

Year founded

2001

Trading platform

WebTrader, MT4, TradingView

HYCM

Can you trust HYCM Forex broker? What you need to know?

Minimum deposit

100

Regulation

FCA, CySEC, DIFC, CIMA

Bonus

N/A

Maximum leverage

500:1

Year founded

1977

Trading platform

MT4, MT5

FPMarkets

Is FPMarkets reliable broker? Is it licensed to trade?

Minimum deposit

$100 AUD

Regulation

ASIC

Bonus

N/A

Maximum leverage

500:1

Year founded

2005

Trading platform

WebTrader, MT4, MT5, IRESS

Pepperstone

Pepperstone FX Broker – Everything You Need To Know About This Broker?

Minimum deposit

AUD$200

Regulation

ASIC, SCB, CMA, CySEC, FCA, BaFin and DFSA

Bonus

N/A

Maximum leverage

1:400

Year founded

2010

Trading platform

MT4, MT5, cTrader, TradingView

FXRoad

Review of FXRoad – Broker with Superior Islamic Accounts

Minimum deposit

250 EUR

Regulation

FSA (Seychelles)

Bonus

None

Maximum leverage

1:200

Year founded

2023

Trading platform

FXRoad web & mobile platforms

IMGFX

IMGFX Broker Review – Your Best Trading Experience

Minimum deposit

$50

Regulation

N/A

Bonus

N/A

Maximum leverage

1:500

Year founded

2015

Trading platform

MT4

FXOpen

FXOpen Review – The most experienced broker

Minimum deposit

1 USD

Regulation

ASIC, FCA

Bonus

10 USD

Maximum leverage

1:500

Year founded

2005

Trading platform

MT4, MT5, WebTrader

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The costs associated with Forex brokers

The first thing that comes to mind when talking about the relative costs of trading Forex is the commission of the broker. Even though it has become rather a rare occurrence lately due to the high competition on the market, some of the brokers still charge commission fees on certain account types, especially if they offer tight spreads. The commission fees vary according to the brokers, the account types, financial assets, and the subscription plan of the trader. The Forex broker fees in terms of commissions apply to each traded lot and can be as low as 0.0002 USD on certain products or can represent the percentage of the per traded size.

best low cost forex brokersIf your broker offers commission-free Forex trading it most probably means that the fee is integrated into the spread that they are offering on financial instruments. The spread is a difference between the bid and asks prices for any currency pair. These prices represent the difference between at which price you buy an asset from the broker and what is price that the broker will pay you for it. Any remaining amount between the bid and ask prices is the profit that the broker generates from your trades. Let’s admit that spreads starting from 0 pips is a very attractive offer, but if it comes without commission fees or any other price payable to the broker, it is an alert that something wrong is going on with your low-cost online broker.

Even though minimum deposit requirements are not considered as the cost of trading, some people still want to avoid high deposit demands from the brokers. It is a very logical concern from the traders’ side since the deposits do make a difference. For instance, it is not unlikely that you will be able to generate some profits if you start trading with 5 USD. In fact, you could start trading with more than 200 USD but suddenly lose all of it. Therefore, the traders should have a choice when it comes to how much of the funds they want to initially invest in trading. There are quite a few Forex brokers with a low minimum deposit that could start from 1 USD even.

Start trading Forex with 5 USD – HotForex

How to find a low-cost broker?

best low cost online brokerage

Finding a low-cost broker is not a burden if you know where to look for them. Usually, the advertisement that will pop up when you enter a random website claiming that you can start trading Forex with 1 USD will be somewhat misleading. The best place to look for cheap trading opportunities is actually the review pages that do an extensive overview of each individual Forex broker. Furthermore, if you still decide to trust the budget-friendly brokerage ads, you might compromise the quality of the brokerage services. Additionally, you could visit each and every recommended broker page and check their terms and conditions, minimum starting capital, and the benefits provided to the clients.

Apart from the low commission fees, tight spreads, and the minor deposit requirement, some of the best brokers will provide cheap Forex courses or even free educational material. This is your go-to goal. The ideal scenario would be to find a decent, regulated, and experienced Forex broker that has multiple live trading account types, affordable conditions, flexible leverages, and extensive educational resources along with the promotions. Furthermore, such brokers will often offer trading contests, no deposit bonuses, or other types of rewards to their loyal or new registering customers.

We would recommend starting looking for the list of the brokers that offer the cheapest start in trading Forex. When you find the list or the listing provider that you like, you should pick up few options and check for individual reviews on the Forex brokers with low commissions. You could also check which Forex broker has the lowest minimum deposit or offers commission-free trading with tighter spreads. Then you register with the broker and start trading with as little funds as you can until you become confident in your trading skills.

Best Forex broker with 5 USD minimum deposit – XM

Starting Trading With Low-Cost Online Brokers

Low-cost Forex Trading brokers

Some people think it is a joke when they hear about the cost-free entrance in the Forex market. However, it is indeed very much possible. There are few ways you could actually try out depending on the region where you live and get started with Forex trading for 0 USD. The most popular and proven methods on how to start trading Forex without money include:

  • trading contests on demo accounts
  • no deposit bonuses
  • welcome accounts

Trading Contests for Demo Accounts

A demo account is a simulation of the real trading account for Forex traders. However, in contrast to the live trading accounts, on the demo account traders are not required to deposit any funds. Instead, the broker will credit the virtual money on the trading account balance of the demo account trader which could be used to place and close the trades mimicking a real trading environment. There are a number of brokers that provide trading contests for demo account holders, including cheap Forex brokers with low trading costs in South Africa. These contests are based on the performance of the traders and allow them to win actual money if their trades on Demo Account prove to be exceptionally successful.

No Deposit Bonuses

No deposit bonuses are probably the most popular option among Forex beginners, which is not surprising. In contrast to the deposit bonuses, for no deposit bonus, there is no deposit required from the client’s side. On the contrary, clients receive trading funds directly from the broker without paying a single cent. In this way, brokers encourage traders to get started in Forex risk and cost-free. However, these no deposit bonuses are for trading purposes only and cannot be immediately withdrawn. Only in case, a trader generates money the profit becomes withdrawable.

Welcome Accounts

Welcome accounts are similar to no deposit bonuses. They are real trading accounts, however, without an option to make a deposit. Furthermore, the broker credits a certain amount to the traders’ welcome account, which can later be used as a trading balance. However, in order to withdraw the credited money, the trading volume requirements set by the broker should be met. After the client makes a sufficient amount of trades using the money credited on his or her account, the profit generated can be transferred to any of his or her real trading accounts.

Start Forex trading with the best bonus programs – HotForex

Bottom Line: Are low-cost Forex brokers reliable?

There are quite a few low-cost Forex brokers online with a $1 minimum deposit and favorable trading conditions with either 0 commission fees or tight spreads as low as 0 pips. However, many traders question the legitimacy of such brokers when the prices of trading go down too low. That is a smart call to doubt the Forex brokerage companies, however, one should know how to check the trustworthiness of the brokers in general. The reliability of any firm lies in the legal framework within which the company operates. The same logic applies to brokers and financial institutions within the Forex market. The most reliable Forex brokers would have to be registered and be authorized by one or more regulatory bodies.

Depending on the region where you live or where the broker operates, the firm should hold a license from the respective authoritative organ. For instance, in the European region, there are multiple regulatory bodies with the most notable ones being Cyprus Securities and Exchange Commission (CySEC) and Financial Conduct Authority in the United Kingdom (FCA). If the broker operates in Europe and holds neither of these regulations then it is probably better to avoid trading with this broker at all.

It is also recommended to go through the broker reviews before you start trading with them or open a real trading account. The reviews usually will discuss in greater detail what are the benefits of trading with some of the best low-cost online brokerages and what should traders be aware of. For instance, if you are looking for a review on XM Forex broker, make sure that you approach a reliable website or source that provides multiple reviews on different brokers and is objective. The reviews should contain details on the broker such as XM minimum deposit requirement, spreads and leverages, regulations of XM broker, account types and etc.

FAQ on Low-Cost Forex Brokers

Can you start Forex for free?

No, you can not start Forex for free, as the majority of reputable brokerage companies require their clients to make a minimum deposit amount on a trading account before they can actually start their trading journey. However, it is important to note that you can find the demo account option on some platforms which allow you to trade for free, giving you the same features that are available on the real account – using it, you can easily test out yourself and your strategies.

Which forex broker charges the lowest fees?

Compared to all the other brokerage companies that we know, the XM account type offers some of the lowest spreads and commission fees on the market. That’s why it is possible to have the lowest trading costs on this website, giving you the possibility to start from a low budget and make a great profit.

Can I start Forex with $1?

Yes, you can start trading Forex with $1 if the trading platform you choose allows making a minimum deposit of just one dollar. There are some Forex brokers that allow you to start trading from $1, however, the most common minimum deposit requirement in the majority of reputable FX Brokers starts somewhere near $50 and goes up higher.