Best Forex Brokers
Currency trading is a type of investment that a rising number of people have developed an interest in over recent years. With the challenging financial climate increasing the risk on various other types of investment, and with very little return available on savings accounts, many people have decided to try their hand at foreign exchange (forex) trading in a bid to make more money.
For those who do feel that forex trading is the right option, it is important to find the right forex broker. The first thing you need to bear in mind is that you will never find a broker that is 'on your side'. Despite this, there are still various things you need to look for. Our review of the best forex brokers will provide some background information enabling you to more easily come to a decision.
Best Forex Broker: What to Consider
Forex trading can be a risky enough business for most investors, so the last thing you need is to end up with a broker with questionable motives or one that is completely unsuitable for your needs. Some of the considerations you need to take into account when selecting a broker include:
- Deposit and trade requirements
- Funding and payment options
- Whether it is an ECN broker that follows and passes on bidding prices or a market-maker broker which sets its own bid and ask prices.
- Reputation and review relating to the broker
- The trading platforms that are available
- The level of support and assistance offered
- The tools and resources made available by the broker/service provider
By finding a suitable broker for your needs, you will be better equipped to take on the world of currency trading, which is something that is particularly important for those who are starting out in this area.
The Best Forex Brokers
TradeKing Forex Review
- Good range of educational tools and resources
- Affordable pricing
- A number of trading options
- 24/7 customer support
- Easy to use website
- AN STP broker, which means less control for traders
TradeKing is a popular provider that enables users to benefit from low account minimums of $500. The provider deals with a range of different types of trading, including forex, which is offered through its TradeKing Forex subsidiary. In addition to offering trading services, TradeKing provides access to a range of valuable tools and resources, which are ideal for those who want to be able to build up their confidence or newbies who want to learn more about trading before splashing the cash on real trades.
The TradeKing website is pretty comprehensive and simple to use. More importantly, it offers access to a wide variety of educational tools that can help users to gain valuable knowledge. In addition to forex, this provider deals with mutual funds, stocks, options and exchange traded funds. Trades can be performed online or via the mobile facility provided by TradeKing.
There are many reasons why TradeKing has become a popular option amongst traders, such as its range of investment and trading options, its array of educational resources, and its affordable pricing and fees.
The provider has received an average C- rating from the Better Business Bureau. It also has average reviews on sites such as Findthebest.com. Customer support is available around the clock, which is a big plus for this provider. This is an STP broker rather than an ECN one, which means less control for traders.
Alpari Forex Review
- Low commission trades for Pro Account holders
- Online forex trading access
- One click trading
- Excellent customer service with multi-lingual staff
- Demo accounts available for practice
- Main features are for Pro Account holders with a $10,000 minimum
- No direct access to the market for standard account holders
With its headquarters on Wall Street and with offices in destinations around the world, Alpari has become a well known and popular forex broker. For those with certain accounts, this broker offers a number of major benefits, such as low commissions, direct access to the market, one click trading, and a variety of tools and resources. The broker has been established since the late 1990s and therefore has a good amount of experience in the forex trading arena. It also offers excellent customer service with staff that speak a variety of languages.
While it is the traders that have Pro Accounts with Alpari that will benefit from most of the key features, such as the low commission trades, one thing that new and standard account holders can benefit from is the variety of educational tools and resources that this broker offers. This includes a valuable demo account for those who want to build their confidence before risking their money. One thing to bear in mind with this broker is that it offers ECN services to Pro Account holders with a $10,000 minimum deposit. For standard accountholders, the set up is more of a market maker one and there is no direct access to the market for standard accountholders. Since market maker brokers have a reputation for manipulating spreads for their own gain, you may want to think carefully before deciding whether this is the broker for you.
This provider has average reviews on sites such as earnforex.com and FX Empire. Its range of tools and resources as well as excellent customer service have earned it top place on our list.
Verdict - Superb
Alpari does have a lot to offer as a forex broker, but this is mainly to those with big budgets and Pro Accounts. This broker is therefore a great choice for those who have the financial capacity to opt for a Pro Account.
Dukascopy Forex Review
- A reputable and well known broker
- Offers competitive prices for high volume traders
- A range of trading platforms available
- Transparent service that is fair and reasonable
- Good website with plenty of tools and resources
- Does not accept traders from the United States
- Offers no direct support for MetaTrader
A Swiss forex broker with a good reputation, Dukascopy offers a range of services, working on an ECN broker basis. This broker offers a fair and transparent service but unfortunately does not accept clients from the United States. It does support segregated banking and is able to accept large volume trading, with the ability to trade up to $2 million with a single click. This broker provides a competitively priced service for those interested in high volume trading.
When it comes to trading platforms there are various options available via this broker. This includes mobile apps, the web platform and automated trading facilities. Unfortunately, the broker does not support MetaTrader directly but users can access a third party app to connect to the Swiss Forex Marketplace. When it comes to customer service, this broker offers a high level of service that can be accessed via a number of channels. This includes phone, email, Skype and in person at the office in Geneva. The company website is also pretty impressive, offering a range of tools for traders to benefit from such as data feeds, reports, currency converters, and market reports.
Verdict - Great
All in all, Dukascopy is a solid broker service and one that is particularly suitable for high volume traders.
- Reputable provider with plenty of experience
- Choice of platforms for traders to use
- No commissions as company makes money from trading activity
- Good website with plenty of information and tools
- Caters to novice as well as experienced traders
- Trading costs tend to be higher than many competitors
One of the largest brokers in the USA, Forex.com is run by the globally renowned Gain Capital. As a leading Forex brokerage firm, this is a provider that offers peace of mind to those looking for a reliable, trustworthy broker that complies with all necessary regulations. In addition, this broker caters for those who are new to forex trading as well as for the more seasoned traders with plenty of experience under their belts. With plenty of valuable information and educational tools on the website, this provider enables users to expand their knowledge and increase their confidence, which is especially important for newer traders.
Forex.com offers a number of platforms through which traders can access their accounts, and this includes a mobile platform. The site can be accessed from anywhere around the globe without the need for special software downloads. One of the great things about this provider is that it has become well known for its integrity and reliability. As a dealer, the company makes its money from the spread, which means that there are no commissions to pay, although spreads can be slightly higher. It is worth noting that the provider also offers a range of promotions to benefit customers, such as percentage bonuses on deposits.
Verdict - Great
Reviews and ratings for this provider are pretty decent on sites such as earnforex.com and FX Empire. Its reputation along with its experience within this field has earned Forex.com 2nd place on our list.
MB Trading Forex Review
- Support for Pay for Limit and commission free accounts
- ECN broker rather than a market maker broker
- Low commissions for volume trades
- Supports tight spreads
- Offers multi-use platform for other types of trading
- Hedging not supported as a strategy by this broker
- Few facilities for many countries outside the US and Europe
An ECN broker that operates in the United States, MB Trading is a broker that offers low commissions for volume trades, supports tight spreads, and offers a multi-use platform where users can trade forex, options, stocks, and futures with ease and convenience. This broker also supports Pay for Limit and commission free accounts, dealing mainly with clients from the United States and Europe. This is a reputable and trusted forex and trading broker that is registered with a number of industry bodies such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA).
MB Trading has been established since the late 1990s and today is a very popular trading broker with traders from the USA and Europe. The provider offers access to a variety of great tools and resources, including demo accounts for those who want to practice and learn more about trading before taking the plunge. A range of methods can be used to fund your trading account, and other valuable tools offered include news, market research, educational tools, and even webinars.
Verdict - Very Good
As a fully regulated and reputable multi-trade broker, MB Trading is a pretty good choice for those looking for reliability and fairness, particularly those involved in high volume currency trading.
Best Forex Broker Recap
The broker you select for your forex and other types of trading could make a big difference to your confidence and success levels. You should therefore make sure you do your research before making any decision with regards to which forex broker to use for your trading.
Best Forex Broker FAQs
What is the Forex?
The forex market, also known as the FX or currency market, is a decentralized global market where currencies are traded. It is easily the largest world's largest market by trading volume, and covers all aspects of currency exchange from buying, selling and exchanging currencies. This trading happens at both current and predetermined price points.
How can I learn forex trading?
Visit the forex.com website's education resources page. Take their quiz to determine your trader profile and conduct research based on experience level, beginner, intermediate or advanced. Don't rely on one source of information, continue research with other forex websites, web forums, books, and articles. Talk to an experienced trader for tips.
What is a forex account?
The purpose of a forex account is to trade in currencies from various countries. Once you open an account, you fund it with currency from your home country, then purchase and subsequently sell currency pairs. The idea is to make a profit on your currency trades.
What is a currency trader?
A currency trader buys and sells currencies of the world in volume on the Foreign Exchange (Forex) market. They follow trends in the world economy with regard to the value of the dollar and foreign currencies. Currencies are traded in pairs with the goal of making a profit on the trades.
What is a Forex Broker?
A Forex broker is a stock exchange professional that works within the foreign exchange (Forex) market. Brokers acts as arbitrators between an investor and the interbank. The interbank is the large web of big national banks and the Forex market deals with the global trading of currencies, mostly between these large international banks. There are several types of Forex brokers including electronic communications network and market maker brokers.
Market makers set bids and ask prices that are in their best interest and display them publicly. Electronic communications networks (ECN) simply pass on prices that have already been set by banks or market makers.
Should I trade with an ECN or a market maker?
As with anything, there are pros and cons of working with both ECN brokers and market makers. Market makers have less drastic price movements than ECN but they may trade against you. If your interests are in line they are a good choice but a market maker as your broker will not always be on your side.
ECN bid and ask prices are based on a collection of multiple sources so they are accurate and might be better that market maker prices and they typically don't trade against you. On the other hand, their trading platforms may be more difficult to use.
The basic rule of thumb is to go with a broker who is timely and completes trades at your preferred prices.