8 Best Forex Brokers + Updated Guide on Forex Trading
Forex brokers are so-called intermediaries between a trader and a liquidity provider - the Forex market.
Brokerage service is one of the most critical elements of the Forex market, which affects:
- Order execution speed
- The effectiveness of the trading platform
- The size of commissions for conducting trading operations
- Terms of deposit and withdrawal of funds
Even though the cryptocurrency market has recently captured many virtual users' minds, the Forex market has even greater prospects.
Moreover, the volume of funds operated by Forex brokers significantly exceeds the same indicator in the crypto field. One of
Bloomberg's latest articles indicates that according to the
Triennial Central Bank survey, the volume of trading in the world foreign exchange market is $6.6 trillion.
Although most of the crypto traders reviewed on our
website are good investment vehicles - the Forex market is an entirely different dimension.
Why This Guide May Be Particularly Helpful for You?
Today, you have a great chance to find out all vital data on:
- What are Forex brokers?
- Types of Forex brokers
- Forex trading hits & misses
- Top Forex brokers list
- Step by step procedure to open a Forex trading account
- The benefits of demo trading
- What to consider when choosing an online Forex broker
Best Forex Brokers for Beginners
If you do not want to waste time and nerves looking for a reliable company that provides brokerage services, you can use the
Forex brokers list compiled by Safetrading experts.
No doubt you need a Forex broker for trading as it can offer a trading platform and provide you with various trading instruments like: commodities, currencies, precious metals, indices or CFDs.
We analyzed each of the regulated Forex brokers listed below and ensured their reliability and high service level.
Top 8 Forex Brokers Approved by Safetrading:
- Darwinex
- Dukascopy
- eToro
- HotForex
- IC Markets
- Pepperstone
- RoboForex
- ThinkMarkets
It would be helpful to dwell on each of tht Forex brokers in more detail.
1. UK Representative with Great Forex Experience: Darwinex
This company is one of the most popular UK Forex brokers. The provider is officially registered in the UK and is subject to the Financial Services Authority (FCA) regulations.
With more than nine years of experience, the service has established itself as a reliable company offering Forex trading. They contribute to investing in the following investment instruments:
- Currencies
- Indexes
- Products
- Commodities
- Crypto coins
Registered customers report that the company has a fantastic customer support service. In case you have any issues, you can be absolutely sure that Darwinex representatives will solve them ASAP.
Performance:
- Account opening: 4.9
- Deposit and withdrawal: 5.0
- Trading platform: 4.4
- Markets and products: 1.7
- Research: 3.9
- Customer service: 4.8
- Education: 3.7
Pros
- Harsh regulation
- FSCS cover
- Option to open a segregated account
- Social trading feature
Cons
- Account can expire after 1 month of inactivity
- High reload and withdrawal fees
Minimum deposit: Starts from $500
2. Top European Representative: Dukascopy
Dukascopy is one of the best Forex brokers. It has been operating since 2004 and is one of the old-timers among tons of Forex brokers available now. The operator has received an official license from the Swiss Financial Markets Authority (FINMA). It is considered one of the best Forex brokers in Europe.
Note that if you live in the US, Dukascopy is definitely not the right fit. The fact is that the company does not serve customers from the United States of America. The same goes for Belgian investors.
Read the full review.
Performance:
- Fees 4.4
- Account opening 4.9
- Deposit and withdrawal 5.0
- Trading platform 4.8
- Markets and products 3.9
- Research 4.0
- Customer service 4.7
- Education 4.4
Pros
- A regulated brand
- Tons of trading tools
- User-friendly trading platform
- Trading news & analytics
- Multiple currency accounts
Cons
- Doesn’t work with US clients
- Huge fees
- MT4 only
- Fees for making a withdrawal
- 14-days demo account
- Low number of funding services
Minimum deposit: Starts from $100
3. One-Stop Solution for Global Users: eToro
eToro is one of the best Forex brokers. Some experts believe that this is one of the most well-known Forex brokers today.
The popularity of eToro lies in the fact that the company is licensed to run business in such jurisdictions as:
- Great Britain
- Cyprus
- The USA
- Australia
Thus, the Forex broker reaches a large number of global users living in different parts of the world (
read the full review).
As for trading instruments, the broker offers to invest with:
- Commodities
- Products
- Indexes
- Precious metals
- Currencies
- Crypto assets
Performance:
- Fees 4.3
- Account opening 4.9
- Deposit and withdrawal 5.0
- Trading platform 4.1
- Markets and products 3.9
- Research 3.7
- Customer service 4.0
- Education 3.2
Pros
- Convenient platform
- Copy-trading feature
- User can choose the size leverage
- Option to buy actual underlying assets without using a leverage
Cons
- Amateur style of order placement controls
- Incomplete statistics about traders
- Balance is hidden
Minimum deposit: Starts from $200
4. Most Titled Provider: HotForex
HotForex is one of the best Forex brokers. It runs an STP brokerage company. The Forex broker provides services and tools for trading both private clients and legal entities.
One of the main advantages of the provider is that the company also develops its own exclusive software (
read the full review).
It also helps users to effectively buy or sell the following instruments:
- Bonds
- Fiat currencies
- Shares
- Cryptocurrencies
- Metals and energies
- Indices
- Commodities
Performance:
- Fees 4.7
- Account opening 4.8
- Deposit and withdrawal 4.7
- Trading platform 3.5
- Markets and products 1.9
- Research 4.0
- Customer service 4.6
- Education 4.7
Pros
- Low withdrawal fee ($5)
- Inexpensive minimum deposit ($5)
- Endless trial
- Affordable trading costs
- Low spread (from 1 pip)
- Company-issued copy trading platform
- Great educational service
Cons
- An account can be blocked after 1 month of inactivity
- Package may vary depending on the country of residence
- Lack of social trading
Minimum deposit: Starts from $100
5. Best Forex Broker for The US Market: IC Markets
IC Markets is one of the best Forex brokers in the USA. This Forex broker has been operating since 2007. The company is regulated by the Cyprus Securities and Exchange Commission (CySEC) and FSA. Currently, the company offers to trade with the following investment instruments:
- Futures trading contracts
- Bonds
- Indices
- Commodities
- Stocks
- Cryptocurrencies
Some users point out that the speed of crediting funds to the account can seem very slow. Besides, the support service does not always respond to customer requests in time.
Nevertheless, the company has tremendous experience in providing Forex broker services and is one of the best Forex brokers USA.
Read the full review.
Performance:
- Fees 4.7
- Account opening 4.2
- Deposit and withdrawal 4.5
- Trading platform 3.7
- Markets and products 1.9
- Research 4.1
- Customer service 3.9
- Education 3.4
Pros
- Low trading fees
- Plain and simple registration
- Free reload and withdrawal
Cons
- Poor product selection
- Low level of live support (online chat)
- Lack of investor protection feature for clients outside the EU
Minimum deposit: Starts from $200
6. Best Forex Broker for Australia: Pepperstone
Pepperstone is one of the best Forex brokers in Australia. This brokerage company has been successfully operating since 2010. According to official information, the Forex broker acts based on regulatory rules issued by the Australian Securities & Investments Commission (ASIC) and FCA.
The company boasts of low fees and high transaction processing speeds. Many current users note that the broker is great for novice traders with a minimal budget.
However, keep in mind that the Forex broker is available mainly to Australian residents. Therefore, investors from the USA, Canada, New Zealand, or Japan are better off looking for more suitable options.
Read the full review.
The broker offers its clients to invest in the following trading instruments:
- Currencies
- CFD
- Indexes
- Commodities
Performance:
- Fees 4.8
- Account opening 5.0
- Deposit and withdrawal 4.5
- Trading platform 4.1
- Markets and products 2.2
- Research 3.5
- Customer service 4.5
- Education 4.5
Pros
- Easy account opening
- Great customer support
- Free deposit and withdrawal
Cons
- Forex and CFDs instruments only
- General news flow
Minimum deposit: Starts from $200
7. General Recognition: RoboForex
This brokerage company was founded in 2009 and is regulated by the International Financial Services Commission of Belize (IFSC). Please note that the Forex broker restricts some users geographically. Still, it is one of the best Forex brokers now.
Therefore, Safetrading recommends that you study their website in detail before registering and providing personal or financial data - perhaps your country is not on the list. We managed to find out that the broker is definitely not suitable for traders living in the USA, Canada, Japan, or Australia.
On the other hand, the Forex broker has practically no negative reviews, which is an important indicator when choosing a trading provider (
read the full review). If you become a client of the company, you can invest in trading the following instruments:
- Cryptocurrencies
- Commodities
- Stocks
- Indices
- Currencies
- ETFs
Performance:
- Fees 4.3
- Account opening 4.7
- Deposit and withdrawal 5.0
- Trading platform 4.2
- Markets and products 2.2
- Research 4.0
- Customer service 3.8
- Education 3.7
Pros
- A broad set of trading instruments
- 20+ deposit and withdrawal methods
- Advanced platform with automated trading feature
- Multiple packages with profitable offers
- Easy registration
- Top-level support
Cons
- Low level of protection of clients’ data
- Lack of professional set of trading instruments
Minimum deposit: Starts from $10
8. Top European Forex Broker: ThinkMarkets
ThinkMarkets is one of the best Forex brokers in 2021. The brokerage company has over ten years of lived-through experience. At the time of this writing, the broker is licensed from regulators in the UK, Australia, and South Africa.
However, the company is definitely not suitable for residents from the United States, Canada, and Japan. Having studied the experience and feedback of existing customers, we concluded that the Forex broker has a high service level and always fulfills its obligations to customers.
Read the full review.
Therefore, Safetrading can confidently recommend ThinkMarkets for traders planning to invest in trading instruments such as:
- Forex
- Indices
- Precious metals
- Crypto
- Commodities
- CFDs
Performance:
- Fees 4.7
- Account opening 5.0
- Deposit and withdrawal 4.2
- Trading platform 3.7
- Markets and products 2.8
- Research 3.3
- Customer service 4.6
- Education 3.6
Pros
- Governed brokerage company
- Adjustable trading platform
- Top trading features (Trading Central & Autochartist)
- Exclusive VPS service
Cons
- Not for the US residents
- No leverage for European clients
- Lack of fixed spread accounts
Minimum deposit: Starts from $500
How to Register a Forex Trading Account: Step by step
The registration procedure on the Forex broker's website includes three main steps:
- Choosing the account type. At this stage, you will have a choice between opening a personal or business account. If you are a novice trader, then opt for an account for a novice user. Apart from this, you will also be able to select the managed account option. In this case, the Forex broker can handle all trades on your behalf.
- Registration of a new account. As soon as you click on the "Sign-up" button, you will need to specify your personal and financial data. Fill in the fields like:
- Name
- Address
- Email
- Telephone number
- Date of Birth
- Citizenship
- Social Security number (if applicable).
- Account activation. After successful registration, a user receives an email notification. It contains all further instructions for completing the activation process.
Please be aware that to activate your account, a Forex broker may ask you to verify your identity. You will need to provide scanned copies of an identity card and documents confirming the registration.
What Are Forex Brokers?
As mentioned above, the best Forex brokers USA are companies that link an investor and a liquidity provider. If this is your first time hearing the term liquidity provider, we are talking about huge financial platforms with a significant amount of investment assets, including:
- Global liquidity aggregators (Currenex, Integral, KCG Hotspot, CFH Clearing)
- Exchanges (Sydney Futures Exchange, LMAX Exchange, etc.)
- Large financial institutions (Deutsche Bank, Barclays Capital, Morgan Stanley)
The Forex market is a great investment opportunity capable of generating a solid profit for traders of any level. The only catch lies in choosing reliable Forex brokers USA to whom you can trust your hard-earned funds.
Therefore, if you want to invest in international financial markets with the best Forex brokers, it is essential to know all the field's nuances.
Types of Forex Brokers
Keep in mind that the choice of Forex brokers should depend on objective information on each provider. Meanwhile, each company has a specific business model. Some of them are suitable for professional traders, while others will be simpler and more understandable for beginners.
Let's check the most common types of Forex brokers and their business models.
Forex Brokers: NDD (Non-Dealing Desk) Type
In simple terms, this type of broker is one of the most reliable ones. The thing is that a company that acts as an NDD broker brings all transactions to the Interbank market (a.k.a. liquidity providers or LPs). Thus, a trader has the opportunity to become the owner of a real asset right after purchase.
In this case, Forex brokers USA make a profit solely from commissions. It is common practice for companies of this kind to work with multiple LPs. This allows them to offer customers the best prices that can be on the market.
Forex Brokers: DD (Dealing Desk) Type
Experts from Safetrading ensure that this type of broker is unlikely to bring you positive results. In fact, these companies are called brokerage companies only on a formal basis. All trading activities are carried out on the company's internal servers, and transactions are not transferred to the Interbank Bank.
Simply put, if you buy a few ounces of gold, then you won't become the owner of that asset. Information about the purchase of an investment instrument will be indicated exclusively on your trading account and nothing more.
Another feature of DD companies is that the primary income of the company is based on customer losses. If you mispredict future price increases or decreases and lose money, a brokerage company will be the first to benefit from it.
Forex Brokers: STP (Straight-Through-Processing)
These types of US Forex brokers run just like NDD ones. Brokers who work on the STP model are intermediaries between a trader and big financial institutions, including banks, trading exchanges, and international liquidity providers.
A broker's earnings consist solely of commissions from trading operations. From a business standpoint, this model is nothing more than a white label one. In other words, a broker earns significantly less than the DD but conducts its business transparently.
Benefits of STP Forex Broker for End Consumers
STP Brokers are the most optimal solutions for traders of any level. Technologically speaking, traders buy and sell instruments without the direct involvement of third parties.
Besides, these types of top Forex brokers offer some of the lowest commissions and have a direct stake in customer success.
The more successful a trader is, the more potential trades he/she will enter into. Accordingly, this is to ensure profit for the company itself.
Forex Brokers: ECN (Electronic Communications Network)
ECN is a system that allows private traders, banks, and market makers to conduct trades and earn profits.
ECN Benefits for End Consumers
In addition to low commissions, the best Forex brokers in USA can offer:
- Transparent buying and selling process
- Fast processing speed
- Work in the real market and with real assets
Forex Brokers Using Combo Model: ECN + STP
This model combines ECN and STP brokers' functions and provides its clients with a more comfortable trading process. For example, a broker can automate most of the selling and buying steps. It involves an automatic execution of orders upon reaching the appropriate conditions.
In this case, US based Forex brokers are also interested in the success of traders. If a client loses money, then the broker's earnings will be minimal. A broker's profit directly depends on traders' activity and commissions for each trade operation.
Forex Brokers: DMA (Direct Market Access)
This model is based on the NDD mechanisms. Essentially, a trader can buy and sell investment instruments directly from LPs, including investment funds, banking institutions, and so on.
The most important advantage of this model is that a user can specify the volume and the asset's desired purchase price. If the trader's offer matches the liquidity provider's request, the broker conducts the trade at the exact moment.
Forex Brokers Trading: Hits and Misses
The Forex brokers market is still one of the most efficient ways of investing for online users. Meanwhile, Forex has both advantages and disadvantages.
Let's look at the most obvious ones so that you can make an informed decision.
Hits
Many experts point out that the Forex market's price behavior is more predictable for most crypto assets. However, these are far from all the advantages.
High Liquidity
Forex is a market that has an extraordinary level of liquidity. But more importantly, it is not as dynamic as the crypto market. Accordingly, trading instruments offered by Forex brokers, react much slower to changes in the economic situation and look more predictable.
This feature is actively used by advanced traders who apply various trading strategies to predict price changes or the emergence of a new trend while trading on Forex brokers websites.
Low Spread
This Forex brokers term means the difference between the purchase price and the sale price of investment instruments. As a result of the insignificant spread difference, a trader does not need to pay any trading commissions to the best Forex brokers for US clients.
Margin Trading Option
If you have studied the basics of crypto trading (if not -
check this guide), then you have probably heard about such a tool as margin trading. Forex traders actively use leveraged trading to maximize their profits. In fact, you can operate large amounts even with a small deposit.
Here's a simple example:
Imagine that you deposited $100. This amount is meager by the standards of the Forex brokers. In this case, a brokerage company may offer you to trade with leverage. Let's say that we are talking about the 1:100 leverage. Using the 1:100 leverage, you can buy an investment instrument for $10,000 instead of $100.
However, keep in mind that this high-risk tool is the domain of seasoned traders.
Wide Range of Investment Tools
Most of Forex brokers offer a wide variety of trading instruments, including:
- Currency pairs
- Precious metals
- Indexes
- Commodities
- Raw materials
Misses
There are always two sides to the coin for investors. Forex is undoubtedly one of the most affordable and profitable investment instruments now. However, the degree of risk to lose it all is also high - especially for novice traders.
Significant Financial Risks
Even experienced traders can face loss of funds while buying or selling Forex brokers instruments. The success here is determined by the ratio of the total number of profitable and losing trades. In this case, the only solution is to apply a well-thought-out risk management strategy.
Risk Management Tips
Use the following guidelines to reduce trading risks:
- Careful planning. Make a trading plan that details your steps and actions during the trading day on one Forex brokers websites. The main task is to remove the emotional component and not cross the red line with forex brokers USA.
- Use only strong Forex brokers signals to open a position. You shouldn't buy an investment instrument every time the trend changes its direction. Ensure that you have correctly sensed the change in price movement and only then open a trade position.
- Use practical Forex brokers tools to reduce or limit your losses. Almost every trading platform has a stop loss and take profit function. You can specify in advance the maximum amount of funds you are willing to lose if the price starts to behave unpredictably. The same goes for profit-taking.
- There is no point in holding losing positions for too long. If you opened a trading position and the price began to rush in the opposite direction, then every second brings a loss of funds. Don't wait too long for the price to reverse, and you make a profit. Perhaps closing the position will allow you to complete the trading session with minimal losses.
- Avoid aggressive strategies. Strategies such as Martingale or Averaging can seem like tempting options to hit the big jackpot on a dime. However, pro traders avoid these strategies as they carry an even greater risk of losing funds.
Forex Brokers: Scammers
One of the main disadvantages of the Forex brokers market is the sheer number of dishonest brokerage companies. More than 90% of brokers who advertise their services as the best Forex brokers for beginners do not plan to provide quality brokerage services at all.
Their primary income is stealing and using clients' financial or personal information for their own purposes. However, most Forex brokers simply do not return money to customers.
What to Consider When Choosing Forex brokers
Let's be clear: choosing a Forex broker should be a deliberate and thoughtful step. Keep in mind that you are not just putting some of your capital into the company's hands. You also want to get top-end service and all the necessary investment tools in return.
Let's say you plan to analyze Forex brokers by yourself and carefully check their integrity and business reputation. In this case, pay close attention to some vital parameters.
Choose Forex Brokers Offering Easy Trading
Good liquidity and uninterrupted order execution are the most critical indicators of reliable Forex brokers. Remember that entering and exiting trades should look as simple as possible, without any glitches or freezes on the trading platform.
Forex Brokers with Maximum Variety of Investment Instruments
If you are a beginner, you will most likely opt for one or two trading instruments. However, you may want to invest in exotic currency pairs (like EUR/TRY, GBP/ZAR, AUD/MXN, USD/THB, or JPY/NOK) or stocks. Therefore, it is better to choose those Forex brokers that offer the maximum variety of investment instruments.
Pay Attention to Territorial Restrictions of Forex Brokers
For various reasons, some of the best Forex brokers restrict their services to certain jurisdictions. In other words, some traders cannot access opening an account with certain Forex brokers.
Therefore, choose those Forex brokers that are registered or licensed in the country where you live. Thus, you can be guaranteed to achieve justice in case of controversial issues.
Forex Brokers with Demo Trading Platform
Most Forex brokers offer new users to open a demo account and test their trading platforms. Ensure how convenient a trading platform is in terms of opening or closing trading positions, making deposits, or choosing trading instruments.
Forex Brokers with Mobile Apps
All top-tier Forex brokers have a mobile trading application. It will allow you to always stay up to date on open deals or analyze trading results.
Sometimes, a mobile app turns out to be a more convenient version of desktop trading platforms. That is why Forex brokers apps have gained particular popularity among the virtual community.
Forex Brokers: Depositing and Withdrawal of Funds
Ideally, all financial transactions should occur with the highest processing speed and with a high-security guarantee. Explore the available payment services on the Forex broker's website before clicking on the "Register" button.
If you are used to making online payments using a specific payment service such as PayPal or Skrill, ensure that Forex brokers offer these methods in a deposits section.
Reputation of Forex Brokers
Tons of positive reviews are a good indicator that you are dealing with reliable Forex brokers. Also, do a quick Google search and see if particular Forex brokers have ever been fined by a regulator. If any of Forex brokers violated the rules of the regulator, then this information should be publicly available.
Forex Brokers Regulation
All the best Forex brokers for beginners publish information on a license's availability directly on their official websites. After examining the license, you can easily find such an important parameter as the authority that issued it.
Please be aware that some jurisdictions are considered more secure. Therefore, give preference to those Forex brokers who have received licenses in:
- USA
- Great Britain
- Cyprus
- Australia
- Canada
Customer Support of Forex Brokers
Perhaps this parameter will seem secondary to you. However, this is not the case.
In fact, if you have any questions about withdrawing funds or trading a specific instrument, then the support service is the first place you should contact.
Minimum Deposit
Check the minimum deposit amount before opening a trading account. Most often, the minimum deposit can range from $10 to $10,000. In other words, you trade even with $10 if you manage to find the right Forex broker.
The deposit amount should also depend on the trading instrument you want to use. For example, for currency trading, you can deposit $100 or $200 – that is more than enough. On the other hand, trading stocks will require a significantly higher amount of cash.
4 Effective Forex Trading Strategies for Beginners
The Forex market, just like the crypto one, is a risky place for investment.
At the same time, users can really earn a substantial amount of profit if they use deliberate strategies while trading with Forex brokers, including:
- Trend strategy. It is based on the assumption that the price may rise or fall. Accordingly, a user needs to correctly select the starting point of the trend and open a trading position to earn money.
- Flat strategy. This strategy is based on the assumption that all prices move within the price channel. If the price does not go beyond the support or resistance level, trading within the channel can bring high profits.
- Counter-trend strategy. A trader needs to determine the point at which the trend will reverse, and the price will start moving in the opposite direction. After that, a user can open a position and fix the profit from price indicators changes.
- Scalping strategy. This strategy is suitable for those traders who prefer to open lots of positions to buy or sell a trading instrument. In simple words, we are talking about trading in a time range from 1 to 30 minutes.
Conclusions
Choosing the best Forex brokers is still one of the most critical steps for novice traders. The whole point is that most of the Forex brokers are scammers or do not fulfill their obligations.
Safetrading experts have analyzed dozens of the
most popular Forex brokers and compiled a list of the most reliable ones worthy of your attention. Keep in mind that before making the final choice on Forex brokers, you should definitely pay attention to such vital parameters as a license, the amount of the minimum deposit, and the availability of services in your country.