Below is the list with comparison of the best online forex brokers in 2018.
|Rank||Broker's Score||Bonus||Minimum deposit||Trading Platform||Regulation & License||Trading costs (Spread)||Our Review|
|1.||9.5 / 10||$30 FREE||$5||MetaTrader 4|
|FCA United Kingdom||from 1 pip||XM review|
|2.||9 / 10||100%**|
**Not valid for EU.
FSB South Africa
|from 0.1 pip||HotForex review|
**Your capital is at risk
|8.8 / 10||N/A||$10||regulated||IQ OPTION review|
|4.||8.6 / 10||40%||$100||MetaTrader 4||Central Bank of Ireland||from 0,9 pip|
|5.||8.2 / 10 ||N/A||$1000||CopyTrader™ ||FCA United Kingdom|
|from 2 pips||eToro review|
|6.||**Your capital is at risk||7 / 10||N/A||$100||WebTrader||CySEC||-|
|7.||0 / 10||Scam broker!|
What To Look For In A Best Forex Broker:
Which is the best Forex broker of all? The answer is there isn’t one which is the best for everyone but if take into consideration the points below when choosing one, you will find the best forex trading company that will accomodate to your trading style.
Let us save you lot of time searching and headache! We did the research for you, you will thank us later for!
#1 – FX Broker Regulation & License
Despite the regulation, there are still many crooks in this business, which can cost you lot of money!
If you trade with a regulated broker, you will gain protection in terms of the safety of your money and the broker will have guidelines on the way your account is dealt with to ensure you get the best service and you can contact the regulatory to settle any disputes you may have.
For example, if you are European Union resident, then you should know that any reputable company that operates on European union market should be licensed at least by Cyprus Cysec regulatory.
Besides Cysec, the NFA in the USA and the FCA (Financial Conduct Authority) in the UK are widely seen as the best regulatory bodies in the world, although there are now many others, as regulation spreads to more areas of the world.
If you live in South Africa, you should definitely choose a forex broker regulated by an FSB.
Another well respected regulatory body is the Australian Securities and Investment Commission (ASIC.gov.au).
KEY TAKEAWAY: If forex company is not regulated, then don’t risk giving them your money!
WARNING: There is no need to deal with aN unregulated fx broker so please don’t even consider them!
#2 – Customer Support
Find out what kind of support your potential broker provides. Do they hide behind anonymous mailboxes or have a real support center in your mother tongue that you speak? Is their support center located in the same time zone as you,is it somewhere in Europe or on the opposite side of the globe ? Do they have a customer support telephone line where they can be contacted for technical problems? Do they provide online chat support? Will you be assigned a personal advisor to whom you can contact with trading questions at any time?
For example, XM.COM provides in our opinion really top notch customer care in 24 languages, including free online forex training.
Read here our comprehensive and probably the most complete review of XM including video tutorials.
#3 – Negative balance protection
#4 – Trading Style
First of all, you should think about your trading style and choose a platform accordingly:
- are you a complete newbie in Forex?
- will you trade the most popular currency pair of EURUSD or exotic currencies?
- do you have large capital or do you require a mini / micro account?
- do you use mobile phone traffic?
- do you need forex signals?
- are you going to scalp the market?
#5 – Broker’s Financial Standing
How much capital does the forex company have behind it – in other words – how strong is its balance sheet? You should take this into consideration when choosing a broker and also the length of the time they have been in business. A broker with a strong balance sheet which has been in business for many years is probably going to be a good broker to deposit your money with. You should always deposit your hard earned cash with a financially strong brokerage only.
#6 – Forex Trading Platforms – Get The Most Out Of Your Trading
The forex trading platform is also a consideration in terms of its smoothness of operation, reliability, number of currency pairs offered and other extras such as news and technical charting tools. You can easily find out how good the trading platform is by simply opening a demo account and seeing if you like the services.
Webtrader and iOs Android Trading Apps
Almost each forex broker is now offering its own Webtrader platform and mobile app for trading. These platforms are containing very basic trading functions and basic charting possibilities. On the other hand, it runs under almost any internet browser and requires no download and installing. The only thing you literally needs is a PC/Mac with Internet connection or smartphone with installed App.
If you are really serious about trading forex, then you should definitely look for fx broker that is allowing you to trade with Metatrader. MetaTrader is a standard industry platform and is the most well known and most commonly used and offers security, reliability and a number of analytical features and most brokers will allow you to use it.
Metatrader 4 is used mostly by forex traders, while 5 includes besides fx also ETF, commodities etc. https://www.metatrader4.com
Social trading (copytrading feature)
While many traders want to trade themselves there are many who want to get help and there has recently been a huge rise in social fx trading.
There are many social trading platforms and the concept is simple – you can follow other traders in the network and copy their trades and hopefully make money following their trading signals.
Traders online have been swapping ideas and trades in forums, blogs and social networks for a long time and the idea of following successful traders in a trading network is a logical progression and the growth of this segment of the Forex trading industry is huge and the number of traders participating and the dollars amounts transacted are staggering – let’s take a look at a couple of examples.
Etoro social network is huge with over a million traders using it. These platforms are two of the biggest but the idea of following other traders is growing at a rapid rate and new platforms are coming online all the time.
Most brokerages claim their forex trading platform is the best but in terms of the top platforms there is not to much between them and which you like will come down to the services you specifically require as a trader.
TIP: The best way to find out how good a platform is you should try it on a practice account!
#7 – Maximum Leverage
The leverage brokers offer vary but they all give you more leverage than you really need and 500:1 leverage is not an advantage! Most experienced Forex traders only trade with leverage of 10:1 and all the best brokers, will give you this level of leverage.
#8 – Price Quotes and Pip Spreads
Most of the top Forex brokers will give tight pip spreads on all the majors, although there may be more variance on the cross currency pairs. If you are day trader, pip spreads need to be tight, if you are a long term trend follower where a pip a trade will not impact on profitability. You can also check out the quotes offered and price feed but most of the brokers we recommend on this site will have excellent quotes and tight pip spreads.
#9 – Forex Demo Account
Always check whether they will allow you to open a forex demo account where you can check how their platform works and get to know it. It is important to know when their demo is valid, some companies only provide a demo platform for a fixed period, that is, the platform is automatically deactivated for example after 30 days. Some companies will allow you to trade on your demo account indefinitely, and you can start trading sharply just when you feel that you know the platform perfectly.
#10 – Minimum Deposit
The minimum deposit will vary between brokers some take a $100 dollars minimum and some will be thousands and you need to pick a broker in line with your amount of risk capital. Bigger accounts can of course offer you tighter pip spreads than smaller ones but generally, the difference is not to much and both large and small traders can find a company which will give them a competitive service.
#11 – Deposits and Withdrawals of Cash & Support
Check the deposit and withdrawal features and how quick and easy it is to top up your trading account and also support in terms of operation of your trading account and its best its 24 hour support which all the big forex brokerages do.
#12 – Forex Bonus
Many brokerages offer a forex bonus in relation to your deposit but be careful with these because, many have conditions attached to them which mean you have to make a certain number of trades in a set period to qualify for the bonus and many we have seen, make the amount of trading signals you have to transact so big, you are unlikely to make any money! If you are a serious trader, who offers the best trading bonus on your deposit, should not be a major consideration.
#13 – Market Maker or ECN/STP ?
According to a lot of traders, market makers steal your money but if they are regulated this is not the case, the trader is normally just upset he lost. Market makers, don’t have to steal a clients money because they work on the odds that 95% of traders lose money over time so there profits are good over the long term.
Market makers can offer great spreads and services which are as good as a broker who offsets so if the market maker is regulated and you like them, by all means trade with them.
#14 – News, Research and Trading Signals
There are many brokerages who set themselves up as FX brokers for beginners and try to tempt traders to deal with them by offering dealer support, research and even trading signals and systems to give the trader trades – DO NOT take this into consideration when choosing a broker!
The research is generally terrible and reflects the herd and companies who give you trades, are unlikely to make you money, as they have a conflict of interest – they make money when you trade or lose. The trading systems and signals are the same as a broker assisted account only automated and will not make you any money either. So help in the form of trading currency pairs from a broker is a complete waste of time.
If you follow the above tips for choosing the best forex platform, you will find one which can give you a window to global currency markets and allow you, to apply your strategy in the world’s most exciting investment – trading global currencies for profit!