Best Forex Brokers 2021 – Compare Top Brokers.
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If you’re planning to trade currencies online – you’ll need a great forex broker on your side. The broker should offer plenty of currency markets, low fees, and commissions, and have a solid regulatory framework. In this guide, we review the Best Forex Brokers in 2021 and provide a step-by-step walkthrough of how to get started with an account today.
Best Forex Brokers 2021 List.
Below you will find a breakdown of the 10 best forex brokers for 2021. Scroll down to read our full review of each forex brokerage site!
– Overall Best Forex Broker 2021 – Best Forex Broker for Beginners ($20 Minimum Deposit) – Top-Rated Forex Broker With Support for MT4 and MT5 Libertex – Online Forex Broker With ZERO Spreads Vantage FX – One of the Best Brokers for Forex ECN Accounts IG – Best Forex Broker for Spread Betting (UK and Ireland Only) Forex.com – Best Broker for Forex Traders in the US TD Ameritrade – Best Forex Broker for Advanced Traders FXTM – Best Forex Broker for Low Fees and MT4 Trading Charles Schwab – Best Broker for Long-Term Forex Trading.
Best Forex Brokers.
7 Providers that match your filters.
302 New users today.
FCA, CySEC, ASIC, CFTC, NFA, BAFIN.
What you can trade.
FCA, CySEC, ASIC, CFTC, NFA, BAFIN.
What you can trade.
FCA, CySEC, ASIC, CFTC, NFA, BAFIN.
What you can trade.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FCA, CySEC, ASIC, CFTC, NFA, BAFIN.
What you can trade.
Find the Best Forex Brokers – Comparison.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FCA, CySEC, ASIC, CFTC, NFA, BAFIN FCA, CySEC, ASIC, CFTC, NFA, BAFIN FCA, CySEC, ASIC, CFTC, NFA, BAFIN.
50:1 100:1 200:1.
Top 10 Forex Brokers Reviewed.
Currency trading is a multi-trillion-dollar arena – so it makes sense that there are now hundreds of forex brokers to choose from. Many are aimed at the average retail investor, so the process of getting started with an account is easy.
You do, however, need to assess where the forex broker stands with respect to regulation, commissions, markets, trading tools, payments, customer support, and more. To save you from having to perform countless hours of research, below we review the top 10 forex brokers in the world!
1 . eToro – Overall Best Forex Broker 2021.
Our experienced review team found that eToro is by far the best forex broker in the online arena. This regulated trading site gives you access to dozens of forex pairs – covering majors, minors, and exotics.
By choosing eToro as your go-to broker – you’ll benefit from super-low trading fees. For example, the platform operates on a spread-only basis – so you only need to cover the difference between the bid and ask price of the currency pair in question. This starts from just 1 pip on major pairs like EUR/USD and USD/JPY. All forex pairs on eToro can be traded with high leverage, too.
For most regions – including the UK, Europe, and Australia, this is capped at 1:30 on major pairs and 1:20 on minors and exotics. If you are a beginner, the eToro web trading platform will be ideal for your skillset. This is because the platform has been designed with the casual trader in mind. In fact, eToro even allows you to actively day trade currencies in a passive manner.
This can be achieved through the innovative eToro Copy Trading tool. Put simply, this gives you access to thousands of successful forex traders that you can elect to copy like-for-like. For example, if the active trader goes long on EUR/GBP, the position will be mirrored in your own portfolio. eToro is also a social trading platform, meaning you can share market insights with other users and even ‘like’ comments.
Outside of the forex department, you can also access cryptocurrencies, indices, commodities, and thousands of stocks as well as being a best ETF broker. When it comes to the safety of your funds, eToro is authorized and regulated by the FCA, ASIC, and CySEC. You can get started with a minimum deposit of just $200 and supported payment methods include debit/credit cards, bank transfers, and e-wallets like Paypal, Neteller, and Perfect Money. This broker doesn’t deal with binary options but on the other hand, it also stands out for being the best guaranteed stop loss forex broker.
Account minimum $200 Fees Free – Stock trading fee; Variable spread on Forex & Cryptos; $5 – Withdrawal fee Features Buy stocks without paying any commission or share dealing charges. 2,400+ stocks and 250+ ETFs listed on 17 international markets.
Pros:
Heavily regulated trading platform used by over 20 million people 0% commission on stocks and ETFs Spread-only pricing structure on crypto, indices, forex, and commodities Very easy to use – ideal for beginners The minimum stake starts at $25 per trade Supports debit/credit cards, bank transfers, and e-wallets Copy Trading features promote passive investing.
Cons:
Charting analysis tools are a bit basic.
67% of retail investors lose money trading CFDs at this site.
2. Capital.com – Best Forex Broker for Beginners ($20 Minimum Deposit)
Next up we have Capital.com – a market leader in the CFD brokers market, spread betting, and forex scene a swell as being one of the best brokers with NASDAQ. In particular, this platform is highly suited for those of you that are somewhat new to online currency trading – as the broker offers a simple and burden-free way of placing orders.
First and foremost, the platform supports all major and minor pairs alongside dozens of exotics. Each and every forex market offered on the Capital.com platform can be traded with leverage. Most importantly, this forex broker charges 0% in commissions and is considered one of the best low spread forex brokers because of its competitive spreads. Once you register with Capital.com, you might decide to start off with a free demo account.
This allows you to test your forex trading strategies risk-free. As the Capital.com forex demo account mirrors live forex market conditions, this is a great way to learn the ropes. With that said, the minimum deposit at Capital.com is just $20 – which is an inconsequential amount for most. The platform supports e-wallets and debit/credit cards for instant deposits.
On the other hand, this is also considered one of the best AI Trading Brokers. Capital.com uses a powerful AI system to monitor how you perform in the market, analysing your trading behaviour and providing insight that can help you make better trading decisions.
In terms of its regulatory standing, Capital.com is licensed by the FCA and CySEC. As such, the platform ensures your money is safeguarded at all times. If you’re interested in trading other asset classes, Capital.com also offers markets on ETFs, indices, hard metals, energies, and digital currencies. There is also support for over 2,000 stock CFDs from a variety of international exchanges.
Account minimum $20 Fees Variable spread on Forex, Stocks & Crypto; Free of inactivity and withdrawal fees Features Low spreads, over 3,000 shares, spread betting & AI trading platform.
Pros:
0% commission and tight spreads Thousands of markets on offer CFD asset classes include crypto, stocks, forex, and commodities Minimum deposit of just $20 Supports debit/credit cards and e-wallets Great for beginners MT4 supported Leverage available – limits depend on your location.
Cons:
You can’t invest in the underlying asset – CFD instruments only.
67.7% of retail investor accounts lose money when trading CFDs with this provider.
3. AvaTrade – Top-Rated Forex Broker With Support for MT4 and MT5.
If you’ve got a bit of prior experience in online forex trading, then you might be looking for a more comprehensive platform. AvaTrade is a good option in this respect, as the forex broker supports both MT4 and MT5.
Both of the aforementioned third-party platforms will give you access to an abundance of forex trading tools. This is inclusive of advanced order types, technical indicators, and chart drawing tools. Once you have connected your AvaTrade account to either MT4 or MT5, you can then buy and sell currency pairs without paying a single cent in commission.
Instead, AvaTrade will simply charge you a variable spread. This is typically very competitive at the platform, with EUR/USD starting at 0.9 pips. In addition to forex, AvaTrade also offers markets on stocks, indices, and a good selection of digital currencies. These all come in the shape of CFD instruments, so you will be able to apply leverage with ease. If you’re also looking for Islamic forex brokers, you should know that this broker is considered one of the best in this matter.
In terms of safety, AvaTrade is regulated in six different jurisdictions. This includes licenses with ASIC, the Central Bank of Ireland, and the FSA in Japan. Getting started with an account requires a minimum deposit of just $100. Or, you might decide to start off with the AvaTrade demo account facility – which requires no deposit at all. The broker supports debit and credit cards – so your deposit will be processed instantly.
Account minimum £100 Fees Variable spread on CFDs & Forex; Commission of 0.25% for Bitcoin trading; $50 inactivity fee per quarter after three months of inactivity Features Supports MT4/5, commission-free platform, a wide range of tradable instruments, educational materials, islamic trading account, ASIC regulated.
Regulated in 6 different jurisdictions Supports CFD markets on forex, stocks, cryptocurrencies, and more 0% commission and low spreads Compatible with MT4 and MT5 Minimum deposit of just $100 Leverage offered on all markets.
Stock CFD department is limited in comparison to other platforms.
71% of retail investor accounts lose money when trading CFDs with this provider.
4 . IG – Best Forex Broker for Spread Betting (UK and Ireland Only)
By choosing IG to spread bet financial instruments, you will have access to over 17,000 markets. On top of dozens of major, minor, and exotic forex pairs, this also includes indices, commodities, crypto, and stocks. You can trade forex at IG at 0% commission, as all fees are built into the spread. This starts at just 0.6 pips when trading major pairs – which is super-competitive.
Best of all, when spread betting forex at IG, any profits you make from your forex trading endeavors are free from capital gains tax.
You will also have access to leverage of up to 1:30 and even more if you are classed as a professional trader. Getting started at IG requires a minimum deposit of £250 – which you can fund with a debit/credit card or bank transfer. Once registered, you can trade via the IG website, MT4, or ProRealTime.
Account minimum $250 Fees 2 cents per share for US stocks; variable spread on Forex & Crypto; £12 a month after 24 months as an inactivity fee Features More than 80 currency pairs offered, spreads start at just 0.8 pips and no commissions charged, trade on the IG website or via the app.
Established in 1974 and listed on the London Stock Exchange Offers CFD and spread betting markets Most assets can be accessed at 0% commission Forex spreads start from just 0.6 pips Supports MT4 Offers traditional stocks and funds for UK investors.
More suited for experienced traders.
71% of retail investor accounts lose money when trading CFDs with this provider.
5 . Libertex – Online Forex Broker With Tight Spreads.
We have discussed the spread throughout our forex broker reviews thus far – as this is a really important trading fee to factor in. This leads us nicely to Libertex – which allows you to trade with paying tight spreads.
This allows you to buy and sell currency pairs in super cost-effective conditions – especially if you are looking to scalp or for a day trading forex broker. On the flip side, you will need to pay a small commission per slide – but this is very competitive at Libertex. For example, The likes of EUR/JPY, USD/CHF, and even USD/CLP can be traded at a commission of just 0.006%.
When it comes to supported forex markets, Libertex is very strong in the exotic pair department. This covers everything from the Mexican peso and South African rand to the Turkish lira and Polish zloty. On top of forex, Libertex also allows you to trade CFD instruments on stocks, indices, ETFs, crypto, and commodities. At the same time, Libertex is also considered one of the best STP brokers and provides access to institutional-rate spreads and increased liquidity. This MT4 broker is heavily regulated and requires a minimum deposit of just $100 to get started. In some selected countries, this broker accepts Western Union and MoneyGram as a deposit method.
Account minimum $100 Fees Variable commission scheme for stock and Forex trading; $5 a month after 180 days as an inactivity fee Features Zero spread CFD trading, very competitive commissions – starting from 0% upwards, good educational resources, long-established broker.
Pros.
Tight spreads on all markets Low trading commissions Minimum deposit of just $100 Supports CFD instruments on stocks, crypto, ETFs, forex, commodities, and more Debit/credit cards and e-wallets accepted Heavily regulated and more than 20+ years in the trading space MT4 and MT5 supported.
CFD instruments only – no traditional ownership.
83% of retail investor accounts lose money when trading CFDs with this provider.
6 . Forex.com – Best Forex Broker For Traders in the US.
Forex.com claims to be the number one forex broker in the US – and it might not be wrong. This heavily regulated brokerage firm is super popular with Americans that wish to buy and sell currencies from the comfort of their home. In total, you will have access to over 80+ forex trading markets.
This covers all majors, minors, and heaps of exotics. Best of all, there are plenty of account types to choose from – each of which is aimed at a specific type of forex trader. For example, if you’re a beginner, the Standard Account allows you to trade forex on a 0% commission basis – where you will only pay the spread.
If you’re an experienced trader that is looking to place larger value positions, the DMA account at Forex.com offers 0 spreads alongside a small commission. When it comes to leverage, US traders can apply 1:50 on major forex pairs and less on other currency markets. Getting started at Forex.com takes minutes and you can trade via the broker’s web platform, MT4, or MT5. VPS hosting is also supported for automated trading.
Account minimum £100 on debit/credit cards and Paypal Fees Variable spread on CFDs and Forex; Inactivity fee of $15 a month after 365 days Features Specialist forex trading app, access to dozens of currency pairs, particularly strong when it comes to exotic currencies, no minimum deposit when opting for a bank wire.
Pros.
Great forex broker for US traders 1:50 leverage on major forex pairs Multiple account types are available Trade online or via MT4/MT5 More than 80+ pairs supported Permits automated trading.
US clients do not have access to guaranteed stop-loss orders.
Your capital is at risk when trading financial instruments at this provider.
7 . TD Ameritrade – Best Forex Broker for Advanced Traders.
If you’re a serious forex trader that knows your way around advanced trading tools – then TD Ameritrade could be the best forex broker for you. This age-old brokerage firm has an excellent reputation for trust and security – and now serves millions of traders around the world.
The forex trading department at TD Ameritrade – which covers dozens of popular pairs, is best accessed via the broker’s native platform – thinkorswim. This is one of the most sought-after trading platforms for experienced forex speculators – as it comes packed with notable features.
For example, you can view economic data and forex news in real-time, as well as view social sentiment levels. You can also customize your trading screen, deploy dozens of technical indicators, and access chart drawing tools. The thinkorswim platform can be accessed online, but for the full experience, you might consider downloading the desktop version to your device.
If you are new to thinkorswim, TD Ameritrade offers a free paper trading account that comes with $100,000 in virtual capital. This will allow you to get to full grips with how the platform works before trading with real money. When it comes to forex trading fees at TD Ameritrade, there are no commissions to pay. Instead, you simply need to cover the spread.
Account minimum FREE Fees None on stocks; Variable spread in Forex; Free for ACH withdrawals, $25 for wire transfer withdrawals Features Established US brokerage firm, huge asset library that includes thousands of stocks and funds, commission-free trades on US stocks and ETFs.
Pros.
Great for experienced traders Thinkorswim platform comes packed with advanced trading tools Fees are competitive on most assets Thousands of financial instruments supported Solid regulatory standing No minimum deposit.
Not suitable for beginners.
Your capital is at risk when trading financial instruments at this provider.
8. Vantage FX – One of the Best Forex Brokers for ECN Accounts.
When looking at the best ECN Brokers, then VantageFX is our top pick. It is also one of the best scalping forex brokers. ECN accounts come with many benefits from trading forex online – as you will be buying and selling currencies direct with other market participants. In fact, large-scale traders from hedge funds and financial institutions will often execute positions via the electronic communications network.
From your perspective, this means that you will be able to access some of the best forex spreads in the industry. Vantage FX is one of the best brokers for ECN accounts, as the minimum deposit is just $500. This is much lower than other ECN brokerage firms which often demand an account balance that runs into the thousands of dollars.
By opening an ECN broker account with Vantage FX, you will often be able to trade forex at 0 pips. Crucially, this will result in a small commission of just $3 per slide. This MT5 broker offers heaps of forex markets, alongside share CFDs, precious metals, and energies. The platform offers leverage of up to 1:500 – albeit, your limits will depend on whether you are a retail or professional trader and your country of residence.
Account minimum $500 Fees Free for stocks trading; Variable spread on Forex & Crypto; $10 a month after one year as an inactivity fee; $5 as withdrawal fee Features Super user-friendly trading platform, buy stocks without paying any commission or share dealing charges, 2,400+ stocks, and 250+ ETFs listed on 17 international markets.
Pros.
ECN broker accounts Trade from 0 pips and a commission of $3 per slide Regulated in various jurisdictions Offers markets on forex, shares, energies, indices, and more Supports MT5 Leverage of up to 1:500.
Mobile app isn’t the easiest to use.
Your capital is at risk when trading financial instruments at this provider.
9 . FXTM – Best Forex Broker for Low Fees and MT4 Trading.
FXTM is a popular forex broker that stands out for a number of key reasons. First and foremost, the platform allows you to trade currencies in a low-cost manner. For example, spreads on EUR/USD start from 0 pips, and on AUD/USD – this goes as low as 0.3 pips.
With that said, FXTM offers several account types – so the fees that you pay will depend on which one you select. For example, if you are planning to trade small amounts – the Micro Account offers 0% commission trading and a minimum deposit requirement of just $50. If opting for the Advantage Account, spreads start from 0 pips and you will pay a commission of between $0.40 and $2.
We also like the fact that FXTM offers full support for MT4. This means that you can deploy an automated trading strategy and access advanced chart reading tools. On top of being able to trade standard forex pairs, FXTM also offers six currency indices. This allows you to trade a basket of forex pairs linked to a specific currency – such as the British pound or Australian dollar.
Account minimum $50 Fees Variable spread on Forex Features Provides heaps of educational resources, great for market insights and market research, several account types supported, extensive forex department.
Pros.
Various account types Starts start from 0 pips Zero or low commissions depending on account Heaps of forex markets Trade stocks, indices, commodities, and more Heavily regulated Low minimum deposit.
Does not offer traditional investment products.
67% of retail investors lose money trading CFDs at this site.
10. Charles Schwab – Best Broker for Long-Term Forex Trading.
Forex trading is typically associated with short-term speculation – where investors will typically open and close a position for a matter of hours. However, there might come a time where you are bullish on a currency and wish to invest in the long-term.
If this is something that interests you, then you might want to consider Charles Schwab. In a nutshell, Charles Schwab offers currency exchange-traded funds (ETFs). This means that you can invest in a currency for as long as you wish without getting hit with overnight financing fees.
In fact, if your chosen currency ETF is listed on a US stock exchange – then you won’t need to pay any dealing commissions. Instead, you will simply need to cover the maintenance fee charged by the respective ETF provider. There are plenty of currencies that you can gain long-term exposure to at Charles Schwab. Although the setup process at Charles Schwab can be a bit long-winded, there is no minimum deposit requirement.
Account minimum FREE Fees None Features Trusted US-based trading platform, top-rated investment app available on iOS and Android, $0 commission on stocks and ETFs.
Pros.
One of the largest brokers globally Regulated in various jurisdictions – including the US Supports thousands of financial instruments Offers long-term investments and short-term trading markets No minimum deposit Commission-free US-listed stocks and ETF.
KYC process can be long-winded.
Your capital is at risk when trading financial instruments at this provider.
Best Forex Brokers Comparison.
Below you will find a table that summarizing our forex broker reviews – covering commissions, minimum spreads, deposit fees, and maximum leverage for retail clients.
"> Forex Broker "> Trading Commission "> EUR/USD Spread (Min) "> Deposit Fee "> Max Leverage (Retail) "> eToro ">Spread-Only ">1 Pip ">0% for US Traders, 0.5% Elsewhere " data-sheets-numberformat="">1:30 "> Capital.com " data-sheets-numberformat="[null,3,"0%",1]">0% ">0.8 Pips ">FREE " data-sheets-numberformat="">1:30 "> Avatrade " data-sheets-numberformat="[null,3,"0%",1]">0% ">0.9 Pips ">FREE " data-sheets-numberformat="">1:30 "> IG " data-sheets-numberformat="[null,3,"0%",1]">0% ">0.6 Pips ">Up to 1% on Credit Cards " data-sheets-numberformat="">1:30 "> Libertex ">From 0.006% ">ZERO on All Markets ">FREE " data-sheets-numberformat="">1:30 " data-sheets-hyperlink="http://Forex.com"> Forex.com " data-sheets-numberformat="[null,3,"0%",1]">0% ">From 0 Pips ">FREE " data-sheets-numberformat="">1:50 "> TD Ameritrade " data-sheets-numberformat="[null,3,"0%",1]">0% ">Variable Model ">FREE " data-sheets-numberformat="">1:30 "> VantageFX " data-sheets-numberformat="[null,3,"0%",1]">0% ">From 0 Pips ">FREE " data-sheets-numberformat="">1:100 "> FXTM " data-sheets-numberformat="[null,3,"0%",1]">0% ">From 0 Pips ">FREE " data-sheets-numberformat="">1:30 "> Charles Schwab ">0% on US-Listed Assets ">Variable Model ">FREE ">1:2.
Take note, you might be able to get higher leverage limits than the above table states – depending on your country of residence. Once you open an account with the forex broker in question, you will be able to display your maximum leverage limit.
How to Choose the Right Forex Broker for You.
Although we have listed our forex broker reviews – it’s also a wise idea to perform your own research. As we have covered, there are plenty of metrics that need to be considered before choosing a broker – which we elaborate on in more detail below.
Safety.
Before opening an account with your chosen forex trading broker, it’s important to assess which regulators license it.
For example, one of the best forex brokers that we came across – eToro, is regulated by three reputable financial authorities. This includes the UK’s Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). If you’re based in the US, you’ll want to ensure that your chosen forex broker is approved by the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), or the Financial Industry Regulatory Authority (FINRA). If you find that your broker is regulated by a financial body located in an offshore location – you might want to tread with caution.
Sure, the offshore broker might offer above-average leverage limits, but your capital is at risk. By sticking with regulated forex brokers and forex apps that are licensed by one of the aforementioned bodies, the provider will be required to follow a strict set of rules. This includes client fund segregation, Know Your Customer (KYC), and limitations on leverage.
All online forex brokers are in the business of making money – so you need to spend some time assessing what fees will come into play. In this respect, your main focus should be on the trading commission and spread.
Commission.
The commission charged by brokers can vary considerably. The best forex brokers in this space – such as eToro and Capital.com – build the commission into the spread. This means that the only fee payable is the difference between the bid and ask price of the currency pair you are trading.
Other forex brokers, however, will charge a variable commission that is multiplied by your stake. For example, if the platform charges 0.3% and your currency trade is worth $3,000 – you will pay a commission of $9 to enter the market. Some platforms charge a flat commission in return for more favorable spreads.
Spreads.
In assessing how competitive the spread is at your chosen forex broker, you also need to take into account the commission. For example, although Vantage FX charges a flat commission of $3 per slide, this allows you to trade major forex pairs at a spread of 0 pips.
You then have Capital.com, which charges 0% in commission and offers spreads of 0.8 pips on EUR/USD. LIbertex offers ZERO spreads on all of its supported markets and charges a minimum commission of just 0.006% per slide – which is very competitive.
Other Forex Broker Fees.
Once you have assessed how competitive the commission and spread are, you also need to check what other fees the broker charges. This might include deposit and withdrawal fees, inactivity fees, and overnight financing fees.
Range of Forex Markets.
In the vast majority of cases, forex trading platforms will give you access to all major and minor pairs. In this sense, there is not much to separate each of the platforms discussed today. However, the very best forex brokers in the online space will also offer an extensive range of exotic currencies.
Think along the lines of the South African rand, Indonesian Rupiah, Turkish Lira, and Mexican peso. Ultimately, if you have a specific forex trading market in mind, check the broker’s website to see if it is supported before opening an account.
Trading Tools.
In order to make consistent gains in the online forex scene, you will need the assistance of certain tools. The specific tools that are useful to you will typically depend on your financial goals and level of trading experience.
The best forex brokers that we came across offer the following tools:
Charting Tools.
Unless you are relying on fundamental research to make longer-term speculations, the only way to make money when trading forex is to utilize charting tools. At the forefront of this is being able to perform analysis through technical indicators.
The best forex brokers will offer a trading platform that allows you to analyze charts without needing to use a third party. With that said, if your chosen forex broker is compatible with either MT4 or MT5 – these platforms offer all of the charting tools that you will need.
Copy Trading.
The best forex broker that we have reviewed on this page – eToro, offers a popular feature called Copy Trading. This allows you to trade forex passively, as you will be copying the buy and sell orders of an experienced currency investor.
There are thousands of successful forex traders that use eToro – meaning that you will have a wide pool of investors to choose from. You can base your decision on a variety of metrics – such as past performance, average monthly return, maximum weekly drawdown, and risk rating.
Past performance is not an indication for future results.
Once you meet the minimum investment of $500 – all subsequent positions that the trader opens and closes will be reflected in your own eToro account. Not only is this ideal if you have little to no experience of online forex trading, but it promotes a 100% passive investment journey.
Leverage.
All of the best forex brokers that we have discussed today offer leverage. This means that you can enter currency trading positions at a higher value than you have in your brokerage account.
For example, if you are long on GBP/USD at a stake of $500 and apply leverage of 1:20 – your position is now worth $10,000. Similarly, if you are short on EUR/USD at a stake of $2,000 and apply leverage of 1:30 – your position is now worth $60,000.
The amount of leverage your chosen forex broker is able to offer you isn’t a decision made purely by the provider in question. On the contrary, limits can apply based on where you are resident. For example, retail client traders in Europe are capped to 1:30 on major forex pairs and 1:20 on minors and exotics.
These ESMA regulations have since been mirrored in the UK and Australia. US traders can access leverage of up to 1:50 while many nations have no limits at all. If you qualify as a professional trader, you might be able to obtain leverage as high as 1:500.
Financial News and Alerts.
It’s really important to be kept abreast of the key financial news when trading forex. After all, the announcement of a central bank interest rate hike or falling GBP levels can have a major impact on the value of a currency.
Due to the fast-paced nature of the forex industry, you will want to choose a broker that offers real-time financial news. This can often come in the form of a notification that pops up on your screen, even if you are not actively using the broker. The best forex brokers will also offer pricing alerts.
This will send an alert – either via a mobile notification or email when a pre-defined price target is triggered. For example, you might wish to receive an alert from EUR/USD surpasses 1.2290.
Platforms.
When you trade currencies online, the best forex brokers will offer you several platforms to choose from. For example, Capital.com gives you the choice of its own native web trading platform – which is ideal for newbies or Metatrader 4 (MT4) – which is suited to experienced traders. Some platforms go one step further by also offering support for MT5 and cTrader.
If you are an advanced forex speculator then you might want to consider TD Ameritrade and its proprietary thinkorswim platform. Irrespective of which broker you like the look of, it’s important that it supports a platform that aligns with your currency trading skillset, even if you are familiar with AI trading.
Account Types.
Some of the top forex brokers that we have discussed today offer several account types to choose from. This allows you to choose a pricing structure that best meets your needs. For example, the likes of Forex.com offer a Standard Account that permits 0% commission trading alongside higher spreads.
This particular account would be suitable for casual traders. The broker also offers a 0 spread account that comes with a small flat commission. This would be more suited for large-scale currency investors. You then have ECN accounts, which give you direct access to other forex trading participants.
Payments.
Before you can start trading in the real forex markets you will need to deposit some funds into your brokerage account. In this respect, there are two key metrics to look out for. Firstly, you need to check what payment methods are supported.
eToro, for example is one of the best skrill forex brokers, it also supports e-wallets like Paypal and Neteller, as well as debit/credit cards issued by Visa, MasterCard, and Maestro. Other brokers in the forex trading scene will only support bank transfers.
Secondly, you need to see what, if any, transaction fees apply to your chosen payment method. This is important, as we came across a lot of online brokers that charge hefty fees on certain deposit types – especially when it comes to credit cards.
Best Forex Brokers for Beginners.
If you are looking for the best forex brokers for beginners, certain platforms stand out from the crowd. For example, Capital.com is often preferred by newbies – as it offers a simple and burden-free way to trade. Libertex is also good for beginners – especially when using its native web trading platform.
With that said, we found that the best forex broker for beginners is eToro. Not only will you have access to a clean and easy-to-navigate trading platform, but you can start off with the broker’s free demo account. This allows you to trade forex in live market conditions without needing to risk any money.
Additionally, eToro offers a Copy Trading tool that allows you to buy and sell currencies passively. This is perfect for beginners, as you won’t be required to perform any technical analysis or fundamental research. Instead, you can sit back and allow your chosen forex expert to trade on your behalf!
67% of retail investors lose money trading CFDs at this site.
How to Get Started with a Forex Broker.
If you want to start trading currencies from the comfort of your home right now – the guidelines below will take you through the process step-by-step.
Note: The walkthrough below will show you how to trade forex with our top-rated broker eToro.
Step 1: Open an eToro Forex Account.
To get started, visit the eToro website, click on the ‘Join Now’ button, and enter your personal details when prompted. You will also need to choose a username and password and verify your email address and mobile number.
67% of retail investors lose money trading CFDs at this site.
Next – as per KYC regulations, eToro will ask you to upload a copy of your government-issued ID. eToro is usually able to verify your identity in less than a couple of minutes.
Step 2: Deposit Trading Funds.
You can now proceed to add some money to your newly created forex trading account. If you want to benefit from an instant deposit, opt for a debit/credit card, Paypal, Skrill, or Neteller.
Step 3: Search for Forex Trading Market.
Click on the ‘Trade Markets’ button followed by ‘Currencies’. This will show you a list of all supported currency pairs that are available to trade on the eToro platform.
Or, if you already know which currencies you wish to trade, enter the pair into the search box at the top of the page.
Step 4: Place Forex Trading Order.
You will now see an order box like in the image below. In our example, we are trading EUR/USD. We think the value of the pair will rise, so we opt for a buy order. You can change this to a sell order if you think the foreign exchange rate of the pair will go down.
Next, enter your stake and if you want to apply leverage – select your ratio.
Finally, click on the ‘Open Trade’ button to place your forex order!
eToro – Best Forex Broker 2021.
This guide has discussed the very best forex brokers to consider in 2021. We have also explained the many factors that you need to look out for when searching for the best broker for your financial goals and skillset. All in all, we found that eToro wins the award as the best forex broker in the online space.
This user-friendly and heavily regulated trading platform supports dozens of forex markets at industry-leading fees. We also like the Copy Trading tool on offer – which allows you to copy the trades of a successful forex investor.
You can start trading forex at eToro by quickly opening an account and making an instant deposit with a debit/credit card or e-wallet!
67% of retail investors lose money trading CFDs at this site.
FAQs.
What is a forex broker?
A forex broker is an online trading platform that allows you to buy and sell currency pairs. The broker will first ask you to open an account and then make a deposit. After all, it executes your forex orders for you – allowing you to trade currencies from the comfort of your home.
How do forex brokers make money?
There are many ways that forex brokers can make money. For example, some charge commissions on each trade that you place. The broker will also make money from the spread – which is the difference between the bid and ask price of a currency pair. Another way for forex brokers to make money is by charging fees on deposits and withdrawals.
What is the best forex broker?
We found that eToro is the overall best forex broker for 2021. The platform is heavily regulated, offers low fees and commissions, supports lots of payment methods, and is home to dozens of forex markets. Other top forex brokers to consider include Capital.com and Libertex.
Which forex brokers accept US clients?
The best forex brokers for US clients include Forex.com, TD Ameritrade, and Charles Schwab – all of which are home to heaps of liquidity.
What is spread in a forex broker?
The spread is the difference between the buy (bid) and sell (ask) price of a currency pair. The wider the gap, the more you are paying to access the currency market in question.
What forex brokers accept Paypal?
The best forex broker that accepts Paypal deposits and withdrawals is eToro.
Kane Pepi.
Kane Pepi.
Kane is a British researcher and highly skilled writer with a special interest in finance, financial crime, and blockchain technology. Kane writes for a large number of top financial websites. In particular, Kane is an expert at defining complex financial subjects in a user-friendly way. Additionally, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and is currently completing a Doctorate Degree researching the money laundering threats of the blockchain economy. You will also find Kane’s work at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.