Best And Top Forex Brokers Reviews, List And Comparison
Is it necessary to find out the Best Forex Brokers list in the Forex market? For traders, it is not only necessary but also mandatory to find out the best Forex broker.
A complete list of the best forex brokers in the world will help you to trade without having any scam activities. Before you start jumping in Forex Broker’s List and Forex brokers Reviews, let us give a short description on forex trading.
As we all know, MONEY is traded in the Forex market.
Anyone can trade the forex market if they have money to invest. Even though, having enough money, most of the traders want to trade with margin account rather than a cash account.
The cash account is used only for day trading. You can trade the equivalent amount that you have deposited in the account.
On the other hand, Forex brokers open a margin account on behalf of traders. A margin account allows for debt. You can invest extra dollar with the help of the broker and get extra profit from that account.
Here, in this article, we will screen some fundamentals of Forex trading. To know more about forex trading, you can read our education article What is Forex Trading.
Most of the time people get confused with the profitability of Forex trading. We will also discuss this subject. You will also get a clear view of Forex Broker comparison. Forex trading platforms are important to trade currencies.
Moreover, we will give a small review of the Best Forex platforms. A demo account is mandatory to practice trading.
So, you will find an idea of how to open this demo account.
Lastly, you can find the differences among Cryptocurrency, Forex, Binary Option and CFDs.
Top And Best Forex Brokers List, Comparison And Reviews
Meanwhile, Forex brokers have their own rules and regulations which are correlated with Government rules and regulations. Different brokers have different types of conditions. Some brokers are taking commission instead of spread.
Besides spread, the percentage also varies broker to broker. Spread is one of the most important points in Forex Trading. The lower your spread, the better your profits are. Moreover, spread contains all tax and commission of brokers.
Please compare swap and slippage before selecting any brokers. Because of the high amount of swap and slippage, the transaction cost will increase.
Take some moment before going ahead with a particular broker, because your entire trading game revolves around it.
In this below chart, you will find brokers reviews along with other features. Moreover, the forex broker list will show you which brokers are accepted in which country.
| Broker | Min Deposit | Spread | Features | Regulation | Demo Account | |
|---|---|---|---|---|---|---|
|
$5 |
Spread Type: Variable Min Spread: 0.6 Pips |
Commission: No Min Trade: 1 Bonus: Yes Max Leverage: 888:1 US Trader: No |
IFSC, FCA, CySec, ASIC | Yes | Free Account Read Review |
|
$5 |
Spread Type: Variable Min Spread: 1 Pip |
Commission: No Min Trade: 0.01 lot Bonus: Yes Max Leverage: 1:1000 US Trader: No |
CySEC, MiFID, ACIIF, FCA | Yes | Free Account Read Review |
|
$10 |
Spread Type: Variable Min Spread: 0.1 Pip |
Commission: No Min Trade: 1 Bonus: Yes Max Leverage: 1:1000 US Trader: No |
CySEC, FSC, CIF, FCA | Yes | Free Account Read Review |
|
$10 |
Spread Type: Variable Min Spread: 0.023% |
Commission: No Min Contract: $1 Bonus: No Max Leverage: Varies US Trader: No |
CySEC | Yes | Free Account Read Review |
|
$100 |
Spread Type: Fixed Min Spread: 1.3 |
Commission: No Min Trade: 0.01 Bonus: Yes Max Leverage: 400:1 US Trader: No |
ASIC, FCA, FSCA, MiFID | Yes | Free Account Read Review |
|
$10 |
Spread Type: N/A Min Spread: - |
Commission: Yes Min Trade: $10 Bonus: No Max Leverage: 1:30 US Trader: No |
CySEC, Financial Commission | Yes | Free Account Read Review |
What Is Forex Trading?
Forex Trading stands for foreign exchange. In Forex trading, people exchange one currency in terms of another currency.
In a typical foreign exchange transaction, a party purchases the same quantity of one currency by paying with the same quantity of another currency. Additionally, a few trading terms are related when it comes to the Forex market.
Facts which are related to Forex trading are PIP, Lot, Margin, Leverage, Spread, and so on. Trading profit and loss depends on PIP. A PIP measures the amount of change in the exchange rate for a currency pair. Basically, pip is calculated using the last decimal point.
The smallest size of currency trading for professional traders is called a lot. In forex trading, lot means how much you are buying and how much you are selling.
Besides, the margin is actually to borrow money from a broker to invest in a large amount of trading. By investing a small amount of money, you can earn huge profits.
The ratio between the funds borrowed by you, and the margin that you deposit as insurance is called leverage.
In the currency trading market, forex spread is all about the broker’s profit margin. The broker does not charge any transaction money from you.
Generally, the broker offers two prices like the bid price and the offer price. You buy at an offer price and sell at a bid price. The difference is called spread or the broker’s profit margin. Brokers collect their profit from spread instead of charging a commission.
Introduction Of Forex Brokers
Forex traders buy and sell currency in the currency market which remains open 5 days a week. Traders do their trade expecting that the current price will appreciate or depreciate.
Here, Forex brokers work as a middleman. Via broker, traders execute the trade. Another name of Forex broker is Retail Forex Broker. Retail Forex brokers allow traders to set up an account to open a position and let them trade-in online.
Moreover, traders execute a trade in a platform which is an internet-based trading platform.
Each Forex brokers have their regulation for each country. On the other hand, choosing regulation-free brokers may have a high possibility to lose money.
FX brokers followed Government rules and regulations in trading. A trader can also take help from brokers for leverage. Leverage will help you to trade with a large amount of money.
Forex brokers often offer two modalities of trading.
- Dealing Desk
- No-Dealing Desk
Other than buying and selling currency, forex brokers often offer other services that are related to Forex trading.Through the broker platform, you will get an update on different forex related news and information.
On the other hand, brokers often arrange different programs and training related to Forex. Expert traders also advice novice traders on their trading.
Apart from these, you will find an account manager, who will help you to operate your account.
How To Trade Forex For Beginners
Without having proper trading knowledge, you cannot be a successful trader. For beginners, it is important to make yourself confident as well as trained.
Your one wrong step may lead you in a bad position. Without the proper knowledge, it is challenging to start trading. Placing trade in the exchange market is simple. However, you have to get updated on daily market news, and events.
Following strategies at the same time will make your position better in Forex trading. Before trading, you have to go through all sort of trading strategies.
Here, a Forex demo account will play a vital role. You can apply your trading strategies on the Forex demo account before playing with real money.
As you are new in this platform, so better start with a tiny amount if you want to trade with a real account. In the Forex market, traders buy and sell currency. So, you have to choose a currency pair depending on the correlation of currencies.
For beginners, it will be a wise decision to trade with one pair of currency. You can choose a positive correlation or a negative correlation. Our suggestion is to choose the negative one for minimizing risk.
Undoubtedly, you have to make yourself clear in various aspects of Forex trading.
Is Forex Trading Profitable
In the Forex market, there is a high risk in terms of profit. The question arises in your mind that is Forex trading profitable?
There are no golden rules for making the trade profitable. But, you can make it profitable if you follow some steps in the time of investing money:
- It is wise not to open too many positions in one time. Try to invest your money wisely.
- Apply the best trading strategy. Do not forget to set a stop-loss order. Stop loss is used when the trader wants to prevent the additional loss if the market goes against him. So, it will help you to prevent your extra loss.
- Keep your emotions aside. Emotions are the worst enemy of trading. Trading is not a game. Keep calm when you trade Forex.
- Stay tuned with Forex market news. Forex market moves a lot during news release. Adjust yourself with new information regarding Forex Trading.
- Do not accept over leverage in FX trading. It will cut you in two ways if you are not following the money market rule and the risk management rule. Too much leverage leads you in downwards.
- Do not take over risk even do not overconfident on the trading business. Because of being overconfident, you may lose a higher amount of money.
How To Avoid Slippage In Forex Trading
In general, people do not take high risk. However, the trading market is full of risk. But, in Forex trading, people love to take the risk with a hope of great return.
Slippage is a term in forex trading that refers to the differences between the expected price and the trade executing price.
It is not possible to avoid slippage in the Forex trading market. However, you can reduce it.
Firstly, think about the best time in the Forex market. The best Forex market hour can help you to reduce the chance of slippage.
Do not take it as our recommendation; moreover, those people who are the best in Forex trading, suggest not to invest money when the market is volatile.
To check volatility, traders may want to take recourse to analytical tools such as the average true range indicators.
How To Manage And Minimize Spread Cost
In Forex, Spread is the way to make money from traders. Forex brokers quote two different prices for Forex or currency pairs. In one price you can sell the base currency and the another price, you can buy the base currency.
The difference between these two prices is known as the spread.
Traders can minimize the spread cost in two ways. These are:
Try to Trade during the favorable hours. Traders do their trading 24 hours and based on real time. The favorable time means when the number of traders is the highest amount. In that time the spread cost is limited
Multiple market makers compete for business when traders trade popular currencies, such as the GBP/USD pair. If you trade a thinly traded currency pair, there may be only a few market makers to accept the trade and, reflecting the lessened competition, they will maintain a wider spread.
Important Factors To Choose The Best Forex Brokers For Beginners
As we mentioned before, choosing the best Forex broker is mandatory for all types of trader. Here are some important points which will help to choose the best Forex broker in the world.
All brokers are not the same; so, make sure to choose one broker who is safe and the best fit for trading.
Here are those critical factors that you need to keep in your mind before selecting any broker:
Brokers can be a person or a company who offers a platform through a trading account and helps traders to buy and sell an asset.
Each broker has its regulation. The government oversees those brokers who conducted their business within a particular state.
Brokers who run their business without regulation has a high risk for traders. So, to avoid fraud it is mandatory to review the broker’s regulation.
Due to the heavy competition, brokers offer different advantages. However, choosing the right broker is not an easy task for new traders.
Traders need to read out the company’s rules and regulation or policies. It is needed to know where the company is situated.
Make sure that, the company has its primary office in well-known countries as well as the state. On the other hand, it is also important to overview the trader’s agreement.
If the company has the previous history of the trading platform then, it will add extra value for traders.
Firstly, determine which currency pair you want to trade. As there are approximately 75 popular currency pairs including exotic pairs.
In this part, trader research on the recent trading market news. Available research tools for scanning, and analyzing vary from broker to broker.
Different brokers have different fundamental analysis. Before trading, you have to research these.
Forex spread or commission may vary broker to broker. Before placing a trade, make sure to check the broker’s rate chart.
To complete each trade, brokers allow spread from traders. Few brokers do not allow spread. Instead of spread, they charge commission.
Generally, brokers accept commission on the basis of how much profit you are earning.
There are two types of commission accepted by brokers are fixed fee and relative fee.
Order execution is all about buy and sell orders till the end. It happens when the investor or traders completely filled the order, not when the trade placed by the investors.
The brokers know the best way when to execute.
Forex trading believes that order means how you will enter or exit a trade in the forex market.
The order is offered by brokers. Different brokers accept different types of Forex orders. The Fill price could be worse or better. Fill price does not always match with ask price.
Traders need to select which order will he select to execute his trading. Each broker is different, some firms may re-quote an order with a new price for traders to accept (or reject) in the case the price has changed.
In Forex, customer service is important. They resolve issues, trader’s problems, and also give answers to different questions.
Traders get help from customer support when they are beginners in trading. Customer support tries to give a brief on the Forex market as they understand the market so well.
As the Forex market is the largest liquidity market in the world, so education on forex trading is essential.
But, education will give you a vast idea of Forex trading. Currency trading is complex. The seasonal investor also continues their learning to be a good trader. Some brokers have their own educational site.
Most brokers will offer 24/5 multi-lingual phone support and live chat.
To open an account, traders need to give personal information to brokers. Transmitting financial information is also mandatory when a trader opens an account.
Account information can be stolen if the broker has poor internet security. Two-factor authentications can also protect your account. It is much more difficult to steal information if traders have this security.
Forex Trading Platforms
Brokers offer a platform to execute trade properly with proper information.
There are two types of trading platforms available for traders. These are:
- Online Trading Platform
- Downloadable Platform
The following are some primary differences between online and downloadable Forex trading software.
After reading these differences, it will be easy for you to choose the best-fit forex platform for you.
The web-based platform, as well as the online platform, offers 24/7 service to their traders anywhere in the country. Traders can trade from anywhere and from any computer in the world.
You do not need to install any software in your device if you use the web-based platform. There is no chance of the program being corrupted.
If you have a downloadable platform then you have to more conscious about the software update. Manually update is not a big deal but it will bring a headache. On the other term, the developer updates the online-based platform automatically. For this reason, traders have only one focus that is making money.
The trader needs to put their all trading information as well as personal in the trading software. In terms of security, the web-based software is better than the downloadable one. However, some people do not want to take the risk, so they prefer a downloadable platform instead of choosing cloud computing.
If you do not want a trading platform in your personal storage, you can trade on the web-based platform. A downloadable platform is saved on your hard disk and some traders don’t prefer this.
The communication level is more efficient in the online-based platform rather than on the downloadable platform. Buyers can access the web-based platform whenever they want for collecting real-time news, prices.
Best Forex Trading Platform
We want to start with the most hyped question – What are the best forex trading platforms for beginners?
The trading platform is designed for any types of traders to execute their trade.
However, for novice traders, it is wise to choose user-friendly trading platforms with proper regulation.
These are some of the best Forex trading platforms which we mentioned below:
Meta Trader 4 is known as MT4. This platform is focused on Margin trading. This is an electronic trading platform widely used by online traders. Meta trader 4 provides two types of trading orders named Pending Orders and Market Orders. Meta Trader 4 is also giving real-time free demo account for their trader. Demo account also provides real-time charts, trade operations, and technical analysis. Traders can also download the mobile application of MT4 to perform trading. MT4 has a data center where a trader’s personal information has been kept.
Meta trader 5 offering an outstanding trading platform for currency trading. Meta Trader 5 is all in one platform for Forex, CFD, Stocks, and Futures etc. Meta trader 5 launched when MT4 was popular in the trading market. Meta Trader 5 is an improved version of Meta trader 4. Meta trader 5 has few features which were not available in MT4. The rest of the functions are same as MT4.
C-trader is a Forex trading platform which is basically London Based. They perform their operation only for a London based company. C-trader platform is designed to fulfill two functions named Execution of trades and Charting. Traders love this platform because C-trader is extremely clean and attractive. Their execution is fair and quick. For a trader, they feature account management, risk management, symbol management and so on. C-trader is also accepted mobile trading for its traders. They have a mobile application for IOS and Android.
Ninja trader is also a trading platform for traders. Ninja Trader is offering advanced charting, trade simulation & real-time and historical Forex market data. This platform also offering low spread along with fast execution. The most attractive thing is that you can customize your platform with indicators, signal, and strategies. You can manage your brokerage account from this platform
This Forex platform is an award-winning trading platform. Trading station meets all trades demand and creates a robust platform. They claim that this platform is one of the best platforms in the Forex Market. You can explore multiple order types, real-time prices and save time with preloaded indicators. You can stay connected with email alerts.
For the novice, VT Trader platform is a name of new experience. For brokerage, they have a high-performance server. They have strong internal security to transmit data, analyze data.
Forex Demo Account
All Forex trading brokers are offering a Demo Account for traders. The good news is that you can open a Forex Demo account for Free.
But why it is Free for Traders?
The main advantage of a demo account is that you don’t need to put real money on it. Novice trader wants to learn ins and outs of Forex trading. The demo account allows you to deal with virtual money so, your risk is Zero.
On the other hand, you can get real-time currency prices on the chart. The demo account will help you to learn trading strategies, trading processes and also trading skills.
You need to make a promise to yourself that you will not stop practicing through demo account until you develop your skills properly.
As we mentioned before beginners need to concentrate on one specific currency pair. Traders can experience different Forex market environment and choose the best method from those. It will lead you to a path of success.
Importance Of Forex Trading Demo Account
The learning never ends! A demo account will allow investors to put theory into practice.
Traders can apply Forex knowledge to a demo account. A demo account allows novice investors to learn the basic functions of Forex trading.
Traders select few Forex strategies and apply in Demo account. They can find out which strategy is effective. As the Forex market is volatile so, trading a larger amount of lot is a bad idea for the novice.
The demo account will give you the real experience of real account. Traders know that they can perform trade via demo account without having any monetary risk.
So, they can trade peacefully and gain valuable experience. You will not be charged for chart packages on a demo account.
How To Open Forex Demo Account
Each Forex trading broker has its personalize Demo account. The trading platform will give you a form where you have to fill up your personal information with an email address.
If you provide an email address then those brokers will send you the recent news about Forex and guideline through email.
You will get a minimum amount of virtual money to start your trading.
Deposit And Withdrawal Money
In the Forex trading market, traders deposit a minimum amount of money to open a position.
It is important to know the broker’s requirement about deposit amount before starting a trade. In Forex, traders withdraw funds through different methods.
The minimum deposit amount is not the same for all Forex brokers. Few brokers minimum amount started from $10 and it will vary brokers to brokers.
The maximum deposit amount is also fluctuating. On the other hand, tiny numbers of brokers are not accepted any amount of minimum deposit to open a position.
Few brokers do not accept deposit fee when traders want to open their position in Forex trading.
What! Are they giving us a free account without a deposit?
The answer is simply NO. They are not giving us a free account. These types of brokers offered their traders minimum bonus amount.
If you do not have a single penny then it will add extra value.
To withdraw money there is no minimum requirement for a tiny number of brokers.
But, there are some brokers who fix the withdrawal amount. This policy is followed by almost all the brokers.
Different brokers have different deposit and withdrawal methods.
Most of the case, making a deposit and withdraw is simple. It hardly takes a few minutes because methods are straightforward.
The most common methods are Bank Transfer, Fastpay, E-wallet, Wire transfer, Paypal, Skrill, Neteller, Credit Card and so on.
You can deposit and withdraw your money anytime by using these methods.
Forex Mobile Trading
Mobile trading allows investors to log into their Forex trading platform. It is wireless technology.
Traders can easily do their trading through a mobile device instead of opening a computer anywhere.
Various Forex brokers platform have their mobile application. Traders are increasingly shifting towards the mobile platform.
Set your strategy before the trading hour, and then you can monitor your trading in a trading day perfectly.
Mobile trading helps to keep trading at fingertips.
There are a few benefits of using mobile trading. These are:
- Mobile trading will help you to multi-task. You can manage several accounts at a time. You can trade when you are busy with your Play Station at home. It means you can trade from anywhere.
- The mobile application will help you to trade at the right time. You can sale and buy currencies at the very best time.
- The mobile trading software is handy to use. You can use when you are traveling from one country to another country or one place to another place.
- Mobile trading is safe and secure. Traders can do their transaction and can manage fund details safely. It is true that Mobile app never compromises on the security and safety of your trading.
- As you are novice then easy trading platform interface is essential. The smooth interface helps you to trade easily. The interface also provides you with the freedom to operate in multiple languages. Traders can customize mobile interface if they want.
Customer care service and brokerage firms have excellent knowledge about trading strategies.
It is a good idea to get help from professional trading firms to make your trading smooth and successful.
Forex Economic Calendar
If you are a Forex currency trader, then you cannot avoid Forex economic calendar. In the economic calendar, you will find recent activities or news related to Forex and another economic platform.
If traders want to make a profit from Forex trading then they need to have a clear concept of fundamental news on Forex. Forex news affects in the trading market. You never know how the market reacts when the news release.
When news publishes it may go with the trading way or go against the trader’s expectations. Forex news increases the volatility of the Forex market when it comes to the point of the short-term movement.
Forex currency market responses not only US market news but also news that released from around the world. In the US most major news releases occur between 8:30 am and 10 am New York time. Few traders are Forex news traders.
They open their Forex position or hold the position on basis of Forex news. As this market is fickle, so price moves so fast during news time. Some Forex broker needs an economic calendar to control their order (Stop loss order) because they know either market will go up or go down.
Forex Robot And Signal
Forex robot is a computer-based program which determines whether the currency pair is buying or selling at a given time. With the help of a Forex robot, you can automate your trading or you can manually operate your trade. Trading robots are available 24/7.
Forex robot is capable to check numerous charts where a human cannot do this. Forex robot helps to get profit from trading.
Robots are not famous for day traders and novice traders. My suggestion is not to depend fully on the Forex robot.
Forex robot is nicely designed to make money but not all the time. Successful Forex trading based on knowledge, proficiency, and skills.
Forex signal services do everything as a Forex robot does. Forex signal does not allow execution of trade entries. It will give you signal when to buy and sell currencies pair.
Forex signal works as a suggestion. Some brokers offered free signal and some offered paid signal.
The Difference Between CFD And Forex
Price movement of whole financial markets such as indices, shares, stocks, commodities, and bonds is known as CFDs trading. Here Forex trading is all about currency market. In CFDs, you have to trade with different contracts that have different value and currency type. In Forex trading, traders trade one currency against another currency.
Another difference is the key price determinate. Forex market opens 24/5 where CFDs vary on another underlying market
The Difference Between Cryptocurrency And Forex
You can earn good amount of money from Cryptocurrency in a short period. Forex trading is more skilled trading rather than Cryptocurrency. Trading with Bitcoin most of the time is unstable where there is a less percentage of possibility to make a loss in Forex. In Forex, one currency goes up when another currency goes down.
But in terms of profit, Bitcoin trading is more potential then trading currency. In terms of ratio, the risk of trading Forex is 1:1 and trading Bitcoin is 1:10.
The Difference Between Binary Option And Forex
Forex Trading has more variable then Binary trading. Binary trading is a simple trading system. In Forex trading you can set stop loss. This will minimize your risk. In Binary option, you know about profit and loss. But, in Forex trading loss is unknown.
You cannot calculate profit or loss before closing the position. It will depend on the change of currency pairs.
In Forex trading, the magnitude of price moves matter, wherein Binary Option magnitude of price moves does not matter. In Forex trading you can trade whenever you want to but in Binary Option, you have to trade in a specific time period.
Final Words
The scope of Forex trading is very high around the world. Seriousness is needed while you trade in Forex. Regular market survey and keen analysis of market trends are required to get the desired profit. Although this is an extensive article, I tried to put all apples in one basket. My suggestion is not to stop reading articles which are regarding on Forex.
It is our assumption that this article will give you at least a brief idea of Forex Trading criteria. If you want to know details about Forex market then, you can check out our Educational Blogs.