So, you’ve decided to go with a stockbroker.
After all, you’ve heard that they make the market—they have the best research, they’re the most efficient, and they can get you the best returns.
But do you know who the top 10 online brokers are?
In this article, we’ll show you who the top 10 brokerage firms are, list their pros and cons, and explain why they’re the best brokers for your needs.
So, if you’re looking for a broker who can help you get the best returns, be sure to check out this article.
Who is a Forex Broker?
A forex broker is a financial service agent or company that operates an active trading platform. On these platforms, forex traders can buy and sell foreign exchange for profit. These currencies are often traded in pairs like USD/JPY, AUS/NZD, EUR/USD, GBP/EUR, etc.
The service that forex brokers offer is very important in the forex trading ecosystem because, without their platforms, the trading of foreign exchange will be downright impossible. This is true because trading platforms are very expensive to build, and the average forex trader cannot afford to build one for himself.
Besides offering access to their trading platforms, brokers also offer other auxiliary services like tutorial videos and news alerts, among other services. In addition, they offer trading access for a profit that they deduct from a trader’s earnings along with other charges. Also called currency trading brokers or retail forex brokers, to access their platform, you have to first open an account with them.
The account opening process is often very easy and free of charge. Then you will have to fund your trading account with cash in any of the major trading currencies (usually US dollars). After funding your account, you can then trade actively on their platform. So, in a nutshell, a forex broker is an agent that grants traders access to the global foreign exchange market through their platform. They also provide traders with leverage that can be as much as 300 times more than their trading amount to give them a better chance of making more profit off winning trades.
The Top 10 Forex Brokerage Firms in the World
There are hundreds of online Forex Brokerage Firms in the world. Some of the most popular countries where they have their headquarters include
- Australia
- Japan
- India
- Cyprus
- The United Kingdom
- France
- Belgium
And a host of other countries. In this section, we want to review 10 of the best online forex brokerage firms in the world. Here is our comprehensive list. Kindly review it and make your choice at the end of the review.
Forex.com
Coming up at first place on our list is Forex.com brokerage. This broker is one of the best in the world, and when you search the internet for forex brokers, you are most likely going to find this broker at the top of the list of many review websites. What makes Forex.com tick?
To begin with, you will find a host of trading and analytical tools on their user-friendly platform. Even if you are new to forex trading, you will not have difficulty using the tools. Forex.com is a tier 1 forex broker with so many tradeable assets available on its platform. The wide spread and volumes available to traders are some of the features that set this broker apart from the others.
Since 2001, Forex.com has been blazing the trail in the global industry, and they have a long list of awards to show for it. You will find as many as 80 currency pairs on this platform, and the minimum initial deposit is $100.
IG
Coming up at second place is IG. This broker has been in the game for a long time. They offer traders a large selection of assets totaling an unbelievable 16,000 assets ranging from currencies to cryptocurrencies and commodities. Their large asset pool makes them an attractive platform for professional traders looking to broaden their investment potentials.
IG is very popular in the United States with superb trading and educational tools and competitive fees. The platform is open to traders operating from any part of the world, and it is regulated by the CFTC, which is the chief regulatory body for foreign exchange trading in the United States. Like Forex.com, IG is a highly regulated tier 1 platform, so rest assured that your investment is safe with this broker. They also have very efficient trading tools to simplify your trading activities.
You can also keep numerous trading windows open, and they have several withdrawal and funding mediums. You will also be interested to know that IG has advanced charting software that supports as many as 100 indicators. To be honest, there is nothing not to like about this forex broker.
Interactive Brokers
Another top forex broker is Interactive Brokers. This broker holds the record of having the largest portfolio of tradeable assets in the world. Interactive has a powerful trading platform that grants traders access to as many assets and currency pairs as they want. The superior research tools found on Interactive Brokers are top-notch, and the commission rates are quite low, so you don’t have to give too much of your profit away when making withdrawals.
Interactive has been active since 1978 and was one of the first set of brokers to design online platforms for retail traders with over $8 billion in equity capital. As a result, you can be sure that your investment is in safe and trusted hands. One of the major features of Interactive Brokers service offerings is its Trader Workstation platform. This platform has advanced tools that you can customize for your comfort.
Furthermore, it has an advanced charting tool and twenty different types of orders that you can pick from. The only downside with this broker is that you may find it too complex if you are a beginner. Interactive is ideal for experienced traders who prefer to trade large volumes.
OANDA
OANDA may not be the most popular broker on this list but believe us when we say that this broker is a credible agent to be trusted. If you are looking for a low-cost brokerage firm to pitch your tent with, OANDA is your best bet. A significant percentage of OANDA traders are stationed in the United Kingdom, India, Canada, Australia, and Singapore, and it remains one of the best trading platforms for incident-free trading.
For starters, the initial deposit is ridiculously low at $1, and the spread they offer is attractive. Secondly, this broker is a tier 1 broker since it holds FCA, IIROC, ASIC, and CFTC licenses issued by these regulatory bodies. You can also trade via their official website or the OANDA trading app, which is very easy to use. Finally, this broker also has a huge stockpile of historical data that you can track back several decades if you are a swing trader who likes to analyze market trends dating several years back in time.
TD. Ameritrade
Ameritrade is a platform for US traders only, and they offer close to 80 currency pairs on their platform. Traders can stream data and use available research tools to do research analysis before placing trades. Founded in 1975, this brokerage firm offers mobile and desktop trading options, and their low-cost pricing is attractive for low-volume traders. One of the major features of this broker is the “thinkorswim” platform that has integrated tools that many other platforms do not have.
You will also be interested to know that Ameritrade does not have a minimum initial deposit. So as a first-time trader on the platform, you can fund your account with $1 and above. The only criticism against this broker is that they do not offer wide spreads for USD/EUR. Also, the platform is only open to US traders, so to access it from outside the US, you may have to rely on a VPN network which comes with its own risk.
However, despite the limitations, TD Ameritrade is a reliable platform, especially for first-timers. This brokerage firm does not charge commissions on profit but spreads alone.
eToro
eToro is one of the most popular forex brokers in the game, especially for traders who prefer to copy trade. In fact, eToro’s copy trading has remained one of its best selling points that have attracted so many traders to their platform. Although eToro is not licensed in the US, it still operates under the Monetary Service Business oversight regulated by the United States Financial Crimes Enforcement Network. If you are new to forex trading and looking for a platform with a limitless chest of educational resources to help you improve your trading skills, eToro is one platform you want to check out.
It has an intuitive trading platform that can be operated via the desktop version or a mobile app. You can also navigate from one page to another using user-friendly navigation tools. To start trading on eToro, you only need a minimum deposit of $50, and you can trade with the platform from your location from any part of the world.
Ninja trader
Ninja trader is an interactive trading platform with specialist assets that you may not find on many other platforms. Some of the specialist assets you will find on NinjaTrader include assets curated by the Chicago Board of Trade, Eurex Exchanges, and the New York Board of Trade. When it comes to forex trading, NinjaTrader offers multiple currency pairs that you can trade at will. There are also loads of stocks and CFD assets you may choose to trade too.
The beauty of NinjaTrader is that you have the luxury of choice alongside other benefits. For starters, you can do simulated trading in multiple windows, backtesting, and advanced charting. There are also hundreds of educational materials like YouTube videos, webinars, and trading manuals that you can use to update your skills. The only downside to this broker is that you need to deposit at least $400 to activate your account. Nonetheless, NinjaTrader is one of the best online forex brokerage firms in the world.
Pepperstone
Pepperstone is a forex broker based in Australia and operating with an ASIIC license. Pepperstone has about 61 currency pairs open for trading with more than 4 dozen CFD index funds and stocks. The broker also offers advanced trading platforms like MetaTrader 4 and MetaTrader 5. It also has a cTrader platform for those who may not prefer MetaTrader. Furthermore, Pepperstone offers a wide selection of analytical tools and exceedingly high leverage of 500:1, but you will have to fund your trading account with an initial $200 deposit.
However, do note that US citizens in Australia cannot trade on any of Pepperstone’s platforms. Also, this broker will charge you a flat rate for certain trade volumes.
FXTM
No list of the best online forex brokerage firm will be complete without mentioning FXTM. This brokerage firm is one of the fastest-growing brokers in the world, with up to 2 million active accounts at the time of writing this review. FXTM has a wide selection of assets and currencies available for trade, and its platform is very flexible. Despite having advanced tools, any average joe with a minimal experience level trading forex will enjoy trading on FXTM.
The commission fees are quite affordable, and they offer traders attractive leverage too. If you don’t want to trade foreign exchange, you may trade other assets like stocks, cryptocurrencies, and commodities.
10 Ava Trade
Last but not least on our review of the best foreign exchange brokerage firms is AvaTrade. Just like the others, Ava has an integrated and interactive platform with up to 250 trading instruments. In addition, there are two trading platforms offered by Ava Trade. They have the MetaTrader 4 platform and the custom AvaTradeGo. Both platforms can be assessed in desktop and mobile versions, and they are relatively easy to use, especially for beginners. With over 200,000 active trading accounts, AvaTrade is only going to grow bigger in the coming years.
How to identify a very good forex broker?
When searching for a good forex broker to pitch your tent with, you need to be very cautious. Trading on a particular platform involves committing your investment to the hands of a broker who you have never met in person. To ensure that your funds are safe and your chances of making successful trades are not truncated, here are some of the steps to take to identify a very good forex broker.
Make sure the broker is Legal and Compliant
The most important thing to check for when looking for a forex broker on whose platform to trade on is to check if they are a legally established entity and are compliant with established laws of the land. There are so many national regularly bodies like the
- Financial Conduct Agency (FCA) – UK
- Cyprus Securities and Exchange Commission (CYSCE) – Cyprus
- Commodity Futures Trading Commission (CFTC) – USA
And many other regulatory agencies. A flashy website is not going to cut it if you are looking to keep your investment safe. While a flashy website and an advanced trading platform and tools are important, if the broker is non-compliance, you run the risk of being scammed of your hard-earned money. Take your time to review the broker’s About US page to check for the regulatory licenses that they hold.
- Tier 1 brokers have licenses issued by at least 3 or more regulatory bodies
- Tier 2 brokers have licenses issued by 1 or 2 regulatory bodies.
Then many of them also hold certifications issued by several professional bodies that serve as industry watchdogs like the National Futures Association (NFA). To be on the safe side, only trade on platforms owned and operated by tier 1 or tier 2 brokers.
Types of account
The types of account that they offer traders also matters. Some brokers offer only one type of account, while others offer two or more. The number of accounts may not be very important to you but make sure you check for the quality of the following
- Spread
- Commission
- How easy is it to fund and withdraw earnings from the account
- Leverage and Margin
- The required amount for an initial deposit
If you are a newbie without much experience, some of these features may be strange to you, so we recommend that you seek help from an experienced trader to help you pick a broker with the best trading accounts.
Leverage
How much leverage is the broker willing to offer? Some brokers offer 30 leverages and above, depending on the one you are dealing with. For example, if a broker is offering you 30 leverages, that means you are allowed to trade 30 times the value of your investment. So for every $1 you trade, you get $30 as a trading investment. So to maximize your earning potential, make sure you go for a forex broker who offers you very high leverage, but there is a caveat.
Just as high leverage can give you higher profits from winning trades, on the other hand, the potential for loss is also higher too. This is why traders who lack trading experience end up blowing their accounts using high leverages. So high leverage is good, but we advise you to find a balance that works for you, and when you find a good broker, use leverage with caution.
Commission & Spread
A broker may charge you a commission based on your earnings, while some may not charge you a commission but make money off the wider spreads you use. Before you pick a broker, do your due diligence to investigate how the broker makes money; otherwise, you may end up paying more time what you can afford as commission.
Initial trading deposit
How much is the forex broker charging as an initial deposit? $50, $100, $200, $500 or $1000? It’s true that most brokers will allow you to open a trading account for free. However, to activate the account, you need to fund it with a minimum required amount. Only open an account with a broker with an initial deposit requirement that you can afford.
Access to Deposits and Withdrawal
The best forex brokers offer traders multiple options to fund their accounts or for making a withdrawal. Some of the most popular options are
- Wire transfers
- Online payment platforms, e.g., PayPal
- Credit Cards
- Bank Checks
- Business Checks
Brokers with multiple options increase your opportunities.
Currency Pairs
The number of currency pairs offered is another big deal. The forex market is a volatile one, and some currencies may be bad for trading at certain times. If the broker you trade with offers multiple currency pairs, you can avoid volatile currencies and trade others. However, make sure the broker offers the following pairs like
- CHF/USD
- JPY/EUR
- USD/GPB
- EUR/USD
- GBP/NZD
- AUD/USD
Just make sure the pairs on offer are the ones you will trade more often.
Quality Customer Service
Issues may arise with your trading account or with account withdrawals or funding. In such cases, you need the situation to be resolved as quickly as possible. A broker with an efficient customer service system will be a phone call or email message away. The last thing you want is a broker who takes days or weeks to respond to complaints.
Trading Platform
Last but more important is the quality of the trading platform. Before you commit your funds into the hands of any forex broker, make sure they have a platform that is highly advanced and loaded with trading tools. You also need to make sure that their platform has an integrated interface that is easy to use. Do not open an account with a broker whose platform you find complex because you may end up making mistakes that will cost you financially.