Forex trading, also known as FX or foreign exchange, represents the world's largest and most liquid financial market. Operating 24 hours a day, five days a week, the forex market offers ample opportunities for traders.
In this comprehensive guide, I will evaluate the best forex brokers based on various criteria, including fees, security, trading platforms, educational resources, research tools, charting capabilities, and more.
Here's a list of the top forex brokers and trading platforms for 2023:
- Pepperstone – Best Overall Forex Broker
- AvaTrade – Best for Mobile Forex Trading
- Interactive Brokers – Best Forex Trading Platform for Market Access
- TD Ameritrade – Best Forex Trading Platform for US Traders
- Plus500 – CFD Forex Trading Platform
- FP Markets – Best Forex Broker for Low Spreads
- OANDA – Best Forex Broker for Research Tools
- XTB – Top CFD Forex Trading Platform
- XM – Best Forex Broker for Educational Resources
- IC Markets – IC Markets – Premier Forex Trading Platform for Raw Spreads
Whether you're a seasoned forex trader or just starting, this guide will help you choose the most suitable forex broker for your trading needs.
In-Depth Analysis of the Best Forex Trading Platforms
PFI Rating 4.9
Best Overall
PFI Rating 4.9
Market Access
PFI Rating 4.9
Best Forex Trading Platforms in Detail
PFI Rating: 4.9/5
Pepperstone – Top Overall Forex Trading Platform
Pepperstone stands out as our top choice for the best forex broker. Established in 2010, Pepperstone offers a diverse range of CFDs, including Forex, Crypto, Shares, Indices, and Cryptocurrencies. It operates under the supervision of renowned regulatory bodies such as ASIC, CySEC, FCA, SCB, DFSA, BaFin, and CMA.
76.6% of retail investor accounts lose money when trading CFDs with this provider
- Competitive forex trading fees.
- No minimum deposit requirement, with various funding options including Credit/debit cards, Bank/Wire Transfer, PayPal, Neteller, Skrill, UnionPay, BPay, and PoLi.
- Absence of inactivity fees, although a nominal $5 withdrawal fee is applicable.
- Pepperstone offers two account types: standard and razor.
- Negative balance protection is available for retail clients.
- Margin close-out levels are as follows:
- 90%: Margin Call Warning
- 50%: Stop out for Retail Clients
- 20%: Stop out for professional clients
PFI Rating: 4.9/5
AvaTrade – Top Forex Trading App
AvaTrade earns our top spot as the best forex trading app. Founded in 2006, it operates under the regulation of prominent authorities, including FCA, ASIC, FSCA, FRSA, Israel Securities Authority, Financial Services Agency, and the Financial Futures Association of Japan.
76% of retail investor accounts lose money when trading CFDs with this provider.
- A minimum deposit of $100 is required, and a demo account is available for practice.
- Inactivity fees amount to $50 per month after three months.
- AvaTrade supports various deposit methods, including Credit and Debit Cards, Wire Transfers, Neteller, and WebMoney.
- Trading options encompass Forex, Stocks, Commodities, FXOptions, Cryptocurrencies, Indices, ETFs, and Bonds.
- Please note that 76% of retail investor accounts may incur losses when trading CFDs with this provider.
PFI Rating: 4.9/5
Interactive Brokers – Premier Forex Broker for Market Access
Interactive Brokers stands as a premier choice for market access within the forex trading platform category. Established in 1978, it is renowned for its strong reputation and is regulated by SEC, CFTC, FCA, NFA, MAS, CBI, IIROC, ASIC, and CSSF.
76% of retail investor accounts lose money when trading CFDs with this provider.
- Interactive Brokers provides a diverse range of trading options, including Stocks, ETFs, Options, Futures, Currencies, Cryptocurrencies, US Spot Gold, Bonds, Mutual Funds, and Hedge Funds.
- There is no minimum deposit requirement, and the platform offers one free withdrawal per month.
- Deposit methods include Bank Wire, Credit Cards, ACH, Mail a check, Rollover, Online Bill Pay, Trustee-to-Trustee, and SEP Contribution.
- Interactive Brokers offers a demo account for users to practice their trading strategies.
- It's important to be aware that 76% of retail investor accounts may experience losses when trading CFDs with this provider.
PFI Rating: 4.8/5
TD Ameritrade – Forex Broker for U.S. Traders
TD Ameritrade is a publicly traded online broker with a long-standing reputation and top-tier regulation. It offers a broad selection of over 70 currency pairs, making it an excellent choice for forex trading in the United States.
PFI Rating: 4.9/5
FP Markets – Prime ECN Forex Broker with Low Spreads
FP Markets earns recognition as the top choice for ECN accounts in the forex broker category. It is regulated by ASIC and CySEC and provides trading opportunities in Forex, Shares, Metals, Commodities, Indices, Cryptocurrency, Bonds, and ETFs.
76% of retail investor accounts lose money when trading CFDs with this provider.
PFI Rating: 4.8/5
OANDA - Exceptional Forex Broker for Research Tools
OANDA, established in 1996, is a reputable forex broker regulated by CFTC, MAS, IIROC, FCA, ASIC, and FSA (Japan). While specializing in forex, OANDA offers an array of research tools to assist traders.
PFI Rating: 4.8/5
eToro – Leading Forex Broker for Copy Trading
eToro, founded in 2007, is a well-regulated forex broker under the supervision of FCA, CySEC, ASIC, and FSAS. eToro is particularly recommended for beginner to intermediate forex traders due to its robust copy trading solution.
77% of retail investor accounts lose money when trading CFDs with this provider.
PFI Rating: 4.8/5
XTB – Solid Forex CFD Broker
XTB, established in 2002, is regulated by FCA, CySEC, and the Financial Services Commission in Belize. It offers trading in Forex, Indices, Commodities, Stock CFDs, ETF CFDs, and Crypto.
PFI Rating: 4.8/5
XM - Global CFD and Forex Broker with Educational Tools
XM is a global CFD and forex broker known for its educational tools. Established in 2009, it is regulated by CySEC, ASIC, ESMA, and BaFin. XM offers a wide range of assets, including Shares, Forex, Commodities, Equity Indices, Precious Metals, Energies, and Stocks.
PFI Rating: 4.8/5
Dukascopy – Swiss Forex Bank
Dukascopy Bank SA is a Swiss online bank founded in 2004 and regulated by FINMA. It offers CFDs on Forex, Bonds, Stocks, ETFs, Binaries, and Cryptocurrencies.
PFI Rating: 4.8/5
IC Markets - Prime Forex Broker for Low Spreads
IC Markets is an excellent choice for traders seeking low spreads in the forex market. It boasts some of the lowest forex trading fees and commissions. IC Markets offers a wide range of assets, including Forex, Indices, Commodities, Stocks, Bonds, Futures, and Crypto.
PFI Rating: 4.8/5
IG – Versatile CFD Broker with Extensive Tradable Symbols
IG, established in 1974, is regulated by numerous top-tier regulators. It offers over 19,000 tradeable symbols, making it a versatile choice outside of forex. Tradable assets include CFDs on Forex, Indices, Shares, Cryptocurrencies, Bonds, Options, and Commodities.
PFI Rating: 4.8/5
Forex.com – Robust Forex and CFD Broker
Forex.com, founded in 2001, is a reputable forex and CFD broker known for its great trading tools. It offers a variety of assets, including Forex, Shares, Commodities, Cryptocurrencies, Gold and Silver, and Indices. However, please be aware of withdrawal fees associated with international transactions.
Forex.com – Top Choice for Experienced Traders
True to its name, Forex.com ranks among the best options in the market. This platform caters primarily to high-volume traders, making it potentially challenging for newcomers. Nevertheless, it provides an array of excellent features for those employing successful trading strategies.
- Forex.com offers an extensive selection of currency pairs, making it a standout choice for forex trading.
- The platform boasts low forex fees, minimizing costs for traders.
- Forex.com provides a plethora of top-quality technical research tools to aid traders in their decision-making process.
Please note that while Forex.com may be an ideal fit for experienced traders, those new to forex trading may find it somewhat complex to navigate.
| PROS | CONS |
|---|---|
| Low forex fees | High stock CFD fees |
| Great currency pairs available | More suitable for experienced investors |
| Brilliant technical research tools | |
| A forex-focused platform for dedicated traders |
CMC Markets – Ideal for Forex and CFD Traders
CMC Markets stands out for its dedicated focus on forex and CFD trading. It garners favor among investors for its exceptionally low forex fees and the added perk of free deposit and withdrawal options. Furthermore, the platform is diligently regulated by the FCA, ensuring a secure trading environment.
- CMC Markets boasts user-friendly desktop and mobile platforms, facilitating a smooth and hassle-free trading experience.
- The platform offers a wealth of valuable tools designed to enhance the forex trading journey, catering to the needs of traders.
For those engaged in forex and CFD trading, CMC Markets proves to be a valuable choice, offering a combination of affordability and user-friendliness.
| PROS | CONS |
|---|---|
| Low forex fees | Stock CFD fees |
| User-friendly trading platform | |
| High-quality education and research tools | |
| Great currency pairs available |
FXCM – A Premier Platform for Forex, Cryptocurrency, and CFD Trading
A Premier Platform for Forex, Cryptocurrency, and CFD Trading
- FXCM's educational resources and technical research tools are highly regarded, providing traders with valuable insights and analysis.
- This platform excels in meeting the needs of forex and cryptocurrency traders, offering a comprehensive and satisfying trading experience.
For those venturing into forex, cryptocurrency, and CFD trading, FXCM emerges as a trusted choice, characterized by ease of use and a rich suite of trading tools.
| PROS | CONS |
|---|---|
| Great technical research tools | The withdrawal fees are high |
| Easy to use and get started | Beyond CFDs and forex, a limited portfolio |
| Focused on forex trading |
What is Forex Trading?
Forex trading takes place on the global foreign exchange market, where various currencies are bought and sold. Each currency listed on the market has a constantly changing value, which traders utilize for buying and selling purposes.
Risks of Forex Trading
Forex trading, like any other type of trading, comes with its fair share of risks. One major risk factor is the uncontrollable nature of the market. Several factors influence currency pair prices, and if the market goes against you, substantial losses can occur. However, these price fluctuations also present opportunities for savvy investors. It's crucial for forex traders to have a deep understanding of the market and be prepared for volatility and potential losses.
Of course, significant price drops also mean opportunities for the savvy investor. It is important that forex traders have a deep understanding of the market and are prepared for volatility and the potential to lose money.
How to Choose a Forex Broker?
Regulation
Ensure the broker is well-regulated by reputable authorities to ensure safety and transparency.
Security
Look for platforms that prioritize security, especially regarding deposits and withdrawals, and verify their compliance with local regulations.
Leverage and Margin
Assess if the broker offers suitable leverage and margin options that align with your trading strategy.
Order Types
Pay attention to the available order types, such as market orders, stop orders, limit orders, and how they suit your trading strategy.
Fees & Commissions
Understand the fee structures, including spreads, trading fees, non-trading fees, and how they may affect your returns.
Trade Execution
Ensure the platform provides efficient trade execution with fast and up-to-date features.
Account Types
Choose an account type that matches your trading level and requirements, considering options like demo accounts, Micro, Mini, VIP, Retail, and professional accounts.
ECN Brokers
Consider ECN brokers that offer real-time, accurate prices on the currency market.
Experience Level
Select a platform that suits your experience level, with some tailored for beginners and others more complex.
Copy Trading
Determine if the broker offers copy trading features, allowing you to follow successful forex traders.
Deposit Methods
Ensure the available deposit and withdrawal methods align with your preferences and do not involve high fees.
Account Minimum
Take into account the minimum deposit amount, as it can significantly impact your ability to start trading.
Customer Support
Opt for a broker with accessible and helpful customer support for addressing queries or concerns.
Currency Pairs Available
Assess the range of currency pairs offered, as having a wide selection enhances your trading strategies.
Research
Look for brokers that provide research tools, such as market news, economic calendars, and analysis, to inform your trading decisions.
Usability
Evaluate the user-friendliness of the trading platform, including features like alerts, notifications, price alerts, watch lists, execution speed, and more.
Education
Check if the broker offers educational tools, such as webinars and educational content, to enhance your forex trading knowledge.
Best For Beginners
eToro is recommended as the top choice for beginners due to its user-friendly platform, demo mode, and copy trading functionality.
Low Spreads
For low spread options, Pepperstone is the top recommendation, offering competitive spreads for forex traders.
Highest Leverage
FP Markets is the preferred choice for traders seeking high leverage, providing ample leverage options for trading.
Best In Australia
Pepperstone stands out as the best choice for forex trading in Australia, boasting strong regulation and a quality trading platform.
Best In The UK
eToro and AvaTrade are recommended for UK traders, both well-regulated and offering excellent forex trading experiences.
Best For US Forex Traders
US-based traders should consider Interactive Brokers as their top choice, providing a secure and well-equipped forex trading platform.
Best ECN Forex Broker
FP Markets is endorsed as the top ECN forex broker, offering real-time live pricing and executions.
What is The Rollover Rate?
The rollover rate is incurred when holding a currency pair overnight, representing the cost associated with this action.
Types Of Forex Brokers
- ECN Brokers: Electronically connected to international bank networks, offering real-time, accurate prices on the currency market.
- Market Makers: Facilitate trading within their platform, acting as the counterparty to traders.
- Non-Dealing Desk Brokers: Route traders' orders directly to liquidity providers.
- Direct Market Access Brokers: Provide direct access to the market's depth of liquidity.
- Dealing Desk Brokers: Execute orders within their platform.
- Straight-Through Processing Brokers: Automatically route orders to liquidity providers.
Regulators
Regulators oversee forex brokers to ensure compliance with regulations. Common regulatory bodies include CySec, FCA, ASIC, NFA, and others.
FAQ
What is a lot?
A lot represents 100,000 units of the base currency in a forex trade.
What is a PIP?
PIP stands for Price Interest Point, denoting the price shift in an interest rate.
What is Forex Swap?
A forex swap occurs when buying and selling the same amount of a currency with two different value dates.
