There are no two Forex brokers alike as they all cater to different goals that investors have. Because each broker has unique differences, it can be challenging to find the best Forex Broker. To be frank, the best online broker will depend largely on individual goals, so it is near impossible to give advice on the best broker.
Still, it’s important to have a starting point, and that’s why we have scoured the online trading industry and done the necessary homework on best online brokers, so you don’t have to. There are hundreds of trading platforms out there, it’s easy to get caught up in scams that take full advantage of traders.
We’ve rounded up the best forex brokers and together with our data analysts and trading experts, we have compared each one.
Though the sense of importance surrounding the selection of an online broker can feel intimidating, the choice doesn’t have to be complicated. Check out our concise, comparison table of the best online stock brokers and how they can fit inside your pocket.
Best Forex Brokers for beginners
There are a myriad of factors that you should consider when looking through the various Forex brokers. For example, consider if the broker is backed by any national regulatory bodies, is commission-based, and the fee structure.
Looking at a potential broker in depth is necessary to understand how you can earn money through forex and what types of deductions from your earnings you should expect. Additionally, it’s important to choose an online broker that is reputable, the best way to determine if an online broker is reputable is by checking out their regulations.
Brokers that are reputable and safe will be backed by a regulatory agency. Choosing an online broker that is backed by such an agency will provide you with a sense of assurance that the broker has met minimum set standards for operation.
For example, some regulatory bodies require certain procedures and security to protect client funds. Many countries have their own financial regulatory agencies. The regulation acronym in South Africa is FSCA.
The best online brokers should have a variety of platforms to improve accessibility. The platform is how trades are executed, so it must be easy to use and accessible in multiple locations. For example, you should look for a broker that has both a desktop trading platform and a mobile device one.
Having the two different options will ensure you have access to trade execution regardless of where you’re located. Most of the best online brokers use the MetaTrader 4 platform, so it is likely that you’ll come across this term in your search.
In addition to finding an online broker that will meet your needs regardless of where you’re located, it’s important to find a broker whose platform has the features that you need to meet your goals. Some platforms have single click trading execution for quicker trades, some have stop loss order to reduce the risk of losing massive amounts of money at once, others have comprehensive charts and technical indicators.
Look through the different platforms features and offerings to see what will best meet your needs, as everyone’s will be different. Additionally, it’s important to choose a broker who provides a free demo account, allowing you to practice using the platform prior to investing any real capital. This option will help you decide if the platform/broker is appropriate for your needs.
Some of the best online forex brokers will have low fees, which is a positive sign, but always read the fine print. How are the brokers earning their income? Is it through deposit or withdrawal fees? Do they take commission? Find an online broker where there is a happy medium so you’re not stuck paying exorbitant fees throughout the entire trading process. In addition to fees, consider the spreads. A spread is quite simply the difference between the buying price and the selling price and is another way that the best online Forex brokers make money. There are three different types of spread structures that you’ll come across including Fixed spread, floating spread, and commission fee. A fixed spread is transparent in that you’ll know how much the broker is earning up front. A floating spread fluctuates depending on how volatile the market is. Finally, a commission fee is a set percentage that investors pay based on their earnings. The type of spread you should look for will depend on your goals. Those who want complete transparency about how much they will pay out to their broker may lean more towards fixed spreads while those who want to gamble on smaller trading costs may choose floating spreads.
Best Forex Brokers for beginners
As we’ve repeated in this article, it depends. Choosing the best online stock broker for beginners is no different than choosing the best broker for an expert; it will depend on your goals. Despite this vague and likely disappointing response, there are some key features you should look for if you want to improve your investment skills. Look for online brokers that have comprehensive educational resources, an unlimited demo account, and a straightforward platform.
Educational resources are not standard across all online forex brokers, so it’s important to find one that has an abundance of tutorials and videos built into the account for you to expand your investment knowledge. To help put this knowledge to practice, you’ll need to find a broker that has an unlimited demo account. Many online brokers offer a demo account which allows investors to practice with the platform without risk.
However, plenty of online brokers also put a cap on the duration of access to the demo account or the amount of virtual money. For this reason, it’s important to find a broker that will allow for unlimited access to the demo account so that you can continue practicing, even after you’ve begun executing trades on a live account.
Finally, look for an online broker that has an easy to use platform because nothing is more discouraging than trying to navigate an arduous platform that seems to be in a different language.
I’m sure you can already guess what we are going to say –it depends. Expert traders will have different needs from beginner traders, but will also have different needs from each other as their trading has evolved into a sophisticated art.
There are three features of online brokers that an expert should seek out including comprehensive trading tools, high leverage, and low spreads.
A comprehensive trading tool is a no-brainer as expert investors are familiar with trading enough to execute advanced trading strategies. Look for a broker that can keep up with that skill and meet those needs. High leverages have an increased risk, but they also have an increased reward.
Expert investors have put in the time to develop a skill set where a high leverage is worth more to them and will likely result in a better payout. Finally, choose a broker that has low spreads, because expert traders are likely raking in much more than beginner traders and thus will need to ensure that their broker is not eating away at their earnings.
Best Forex Brokers for experts