Forex broker reviews
Our forex broker reviews list only the most reputable and best online forex brokers. There are currently dozens of forex brokers on the internet, with more becoming available every day. The choice of which forex broker to choose can be very confusing, especially for inexperienced traders. In our broker reviews we focus on what really matters to forex traders; what is the minimum account size, what level of leverage is offered, what forex trading platform does the broker offer and much more.
| Rank | Broker | Description | Regulated | Min. Deposit | Spread EURUSD | ||
| 1. |  |
AvaFX |
|
 |
$100 |
3 pips |  Read review |
| 2. |  |
eToro |
|
- | $50 |
2 pips | Read review |
| 3. |  |
UFX Bank |
|
|
$500 |
3 pips | Read review |
| 4. |  |
MGForex |
|
|
$500 |
3 pips | Read review |
| 5. |  |
Easy Forex |
|
|
$200 |
3 pips | Read review |
| 6. |  |
Forexyard |
|
- | $100 |
3 pips | Read review |
| 7. |  |
Forex Club |
|
|
$200 | 3 pips | Read review |
| 8. |  |
Finexo |
|
|
$100 | 2 pips | Read review |
* PIPS - A pip is the smallest amount by which a currency quote can change. Paying a 1 pip spread on a $10000 trade translates into a $1 cost to make the trade.
* LEVERAGE - The amount of leverage controlls how much equity you need to take on a margin position. A 100:1 leverage means that you can make a $10 000 trade with just $100 in your account. (Note that a high degree of leverage can work against you as well as for you.)
Finding the best forex broker – FAQ
Forex brokerage is the one of the newest domains of the financial services industry. It offers many unexploited opportunities to enterprising traders, but naturally comes with a few unique problems of its own. While analysis and forex strategies are crucial in the long run for achieving the great returns desired, the first task faced by a forex trader is finding the best personal choice among the forex brokers out there so that trading with a calm mind becomes possible, away from worries about the honesty and competence of the firm.
How do you find the best forex broker? There’s no magic trick to do all the scrutiny for you; of course a period of search and study is necessary. To ease your burden, and help your task, here we provide you with a list of what to seek from your forex broker, so that, even as a beginner, you don’t feel like the duck in the desert.
Regulation and Security
Our number-one concern is of course the safety of our deposits, and the honesty of our broker. Fail at this first step, and the sad fact is that no amount of successes will prevent your budding career from turning into a miserable disappointment. Fortunately, the guidelines to be followed in seeking a safe broker are simple and straightforward. Although you can do your own due diligence in finding out about a firm’s background by checking online forums, asking questions to the firm itself, and contacting the authorities, there are two things that you must know about in all cases. Is the firm regulated by government authorities? Second, does it implement state-of-the-art technologies for ensuring the safety of your funds and transactions from unauthorized access?
The regulatory bodies in the U.S. are the NFA and the CFTC. Usually, a broker will have a disclosure statement in the “About Us” section of the site, and at the bottom of every page stating its membership of the NFA, in the US, and its being subject to the regulations of the CFTC. In Europe, each nation has its own regulatory body. The UK has the FSA, while Germany, Cyprus, and the Netherlands all have their own regulatory institutions. Make sure that your broker is regulated by them. Never open an account with a firm that is not regulated by a recognized body, however tempting its offer may appear to be.
The other aspect of account safety is encryption, and the physical safety of your account data against theft. Firms like MGForex, and Easy-Forex take great care about these aspects of safety, but there are also many others that assume a proactive attitude to this crucial side of running a brokerage business. To aid our task, technologies like SSL-encryption are standard in the business nowadays, and if you don’t see them implemented, it is time to depart for better, more serious brokers.
Commissions and spreads
The lower they are, the better. Low and fixed spreads are what we seek from our forex trading brokers. In general, paying anything more than 3-pips in the EURUSD pair is not a good idea, and there are some firms offering spreads as low as a single-pip in this most liquid pair. Also, Forex brokers charge no commissions, but that does not mean that you always get a better deal. ECNs do charge a fixed commission in each trade, but the deal offered by them can sometimes be better than what you would get from an online forex broker. At this you’ll use your own discretion, since both offers have their advantages.
Initial deposit
The initial deposit requirement for your forex broker account should be low. But whether you benefit from depositing a really small amount depends on other factors such as minimum lot size, and leverage or margin requirements. A mini account that requires lot sizes of $10000 cannot be traded very effectively with a $50 initial deposit. You need some buffer area, so to speak, where market fluctuations can be absorbed. That said, the smaller the initial deposit the better, because it is your risk capital, and you don’t want to risk too much in any single trade.
Many brokers offer different channels for funds deposits. Credit card and wire transfers, as well as deposits via NeTeller, or PayPal are accepted at many of the more competent firms. The size of the minimum deposit varies from firm to firm, but it is usually between 50 and 500 in a mini account. A standard account will require something around $1000-2000 in most cases.
Leverage and margin requirements
Keep leverage low. Try to choose a broker that offers leverage as low as possible at the first stage. But it is also possible to keep your leverage artificially lower than the minimum level offered by just trading with a portion of your account value. If you have $1000 deposited with a broker that demands 100:1 minimum leverage, you can keep your leverage as low as 10:1 by just trading one mini ($10000) lot with your account. On the upside, leverage is a matter of taste, so whether it is 400:1 or 200:1 is for you decide. Just make sure that you don’t play a game of Russian Roulette by taking such high leverage at the beginning stages of your forex trading career.
Forex trading platform and software offer
There are so many things that can be said about a good forex trading platform depending on your trading style, and risk tolerance level. In general though, the platform should present a comfortable interface with a calm color selection, and the more customization options available, the better. To test the software at the early stages of your trading, make sure that you open a demo account to have a good experience of what is on offer by the broker.
Does the platform facilitate automated trading? Does it let you use scalping strategies? How about the charting package? Does it provide your favorite technical tool? If you’re a fundamental trader, does the system provide news flow from a credible financial news provider? How about trade alerts, and mobile trading? There are naturally a lot of things that you could demand from the broker, and it all depends on your trading style. If you’re a pure beginner, we can recommend the MetaTrader platform. It is very popular, widely available, and once you get used to it you’ll have learned a lot about trading already. The MetaTrader platform may appear complicated at first, but it is only a matter of practice, not innovation, or genius before you get the hang of it.
Currency pairs offered
Although there are a large number of countries in the world, and consequently many currencies available for trading, the fact of the matter is that a handful of majors, and the currencies of a few growing nations in the world, such as the Brazilian Real, or the Russian Rouble, often define the tone of trading in the global market. So the number of currencies available is not as important a point as it might appear. Still, if you have to trade your national currency, about which you’re most knowledgeable, in a liquid environment, the availability of different options may become an important point.
Also, if you like to employ special strategies about pegged currencies such as the HK dollar, or the Danish Krone, you will naturally want to look for these as you examine the broker. Similarly, traders interested in the Chinese Yuan will have to do some search because the currency is not convertible, and is not widely available for trading.
Customer support
This is where you turn to when there’s a dispute or problem, so the friendlier, more patient, and understanding they are, the better. Customer support should preferably never be an issue when you’re trading with one of the best forex traders. Their systems run smoothly, and if there’s a technical error, they will be swift to recognize and mend it, sometimes on their own. But to make sure that you are safe, it is always a good idea to make a call, even before you have any real intention of opening an account, to see the quality, and endurance of the customer support staff.
24-hour support can also be very important if you’re not from North America. Remember that the forex market is active 24-hours a day. So your working hours may not coincide with that of the support staff, unless it is available throughout the day.
Beginner’s Support
Attitude to the beginner differs among brokers. The demands and needs of a beginning trader are not the same as those of a professional or experienced trader, so even brokers themselves may implement different account packages for different types of clients. As a novice, it’s a good idea to seek a firm that makes educating beginners a major part of its mission and business strategy as a forex broker. Some firms go so far as to offer one on training, while others offer the so-called webinars, and abundant online material for your education. Yet others employ real, professional traders in the customer support. It is up to you to define your own experience level, and decide about what you expect from your broker in this respect.
Summary
A forex trading broker is the custodian of your funds. The reality of your gains, when they occur, will depend directly on the reliability of your broker, and its competence. Choosing the right broker is clearly the most important, albeit basic aspect of being a successful forex trader. By asking the relevant questions about the issues we listed in this FAQ, you will have a more systematic, and thorough approach to this matter, and with a little effort, there’s no reason that you will not be successful. the best luck in your new career.