Choosing the right broker can be the difference between a winning and a losing trader. Taking a moment to compare parameters like regulation, execution types, variety of instruments, leverage, typical spreads, between forex brokers, is advisable. Compare Forex and CFD brokers using our comprehensive tables below, or use additional compare forex broker articles, and locate the best forex broker for your needs:
Compare Forex Brokers – Basic Data:
|Broker||Company HQ||Regulated By||Execution Type||Demo Accounts||Broker Review|
|eToro||Cyprus||CySEC, FCA||Market Maker with STP NDD||Yes||Here|
|XM.com||Cyprus||CySEC, FCA & NZ FSP||STP||Yes||Here|
|ForexTime||Cyprus||CySEC||Dealing Desk & ECN||Yes||Here|
|AvaTrade||Ireland||CBI (Ireland), ASIC, Japanese FSA||Market Maker||Yes||Here|
|Barclays Margin FX||London||FCA||STP||Yes||Here|
|easy forex||Cyprus||CySEC||Market Maker||Yes||Here|
|EC Markets||Cyprus||CySEC||Market Maker||Yes||Here|
|UFX Markets||Cyprus||CySEC||Market Maker||Yes||Here|
|FXCC||Cyprus||CySEC||STP & ECN||Yes||Here|
Compare Forex Trading Details, Fees and Spreads:
|Broker||Min. Deposit||Markets||Typical EURUSD Spread (Pips)*||Leverage||Min Trade Size (Lots)||Scalping||Review|
|eToro||$5||FX & Equity, Indices, Stocks, Precious Metal and Commodity CFD’s||1.9||400:1||Micro (0.01)||Allowed||Here|
|XM.com||$5||FX & Equity, Indice, Precious Metal and Commodity CFD’s||1.9||888:1||Micro (0.01)||Allowed||Here|
|ForexTime||$0||FX & Equity, Indice, Precious Metal, ETF and Commodity CFD’s||1.1 (ECN)||1000:1||Micro (0.01)||Allowed||Here|
|Markets.com||$100||FX & Equity, Indice, Precious Metal, Bitcoin and Commodity CFD’s||2.3 – 3 Fixed||200:1||Micro (0.01)||Allowed||Here|
|FxNet||$5||FX & Metal and Stock CFD’s||2.8||500:1||Micro (0.01)||Allowed||Here|
|Plus500||$100||(CFD Broker)||2||200:1||Micro (0.01)||Banned||Here|
|AvaTrade||$1||FX & Commodity, Stock, Bitcoin, Indice & Bond CFD’s||3||400:1||Micro (0.01)||Allowed||Here|
|Saxo MT4||$0||FX & Commodity and Indice CFD’s||2||200:1||Micro (0.01)||Allowed||Here|
|Barclays Margin FX||$0||FX||2.1||100:1||Micro (0.01)||Allowed||Here|
|Dukascopy||$5000||FX & Spot Metals||0.5||100:1||Micro (0.01)||Allowed||Here|
|AAAFx||$300||FX & Indices and Commodity CFD’s||1.9||200:1||Micro (0.01)||Allowed||Here|
|easy forex||$100||FX & Commodity CFD’s||3||200:1||0.05||Allowed||Here|
|EC Markets||$100||FX & Stock, Indice & Commodity CFD’s||3||200:1||Micro (0.01)||Allowed||Here|
|Finexo||$100||FX & Stock, Indice & Commodity CFD’s||3||200:1||Micro (0.01)||Allowed||Here|
|HotForex||$50||FX & Stock, Indice & Commodity CFD’s||1.5||1000:1||Micro (0.01)||Allowed||Here|
|ForexYard||$100||FX & Equity, Indice, Precious Metal, and Commodity CFD’s||2.2||200:1||Micro (0.01)||Allowed||Here|
|UFX Markets||$100||FX & Equity, Indice, Precious Metal, and Commodity CFD’s||3||200:1||Micro (0.01)||Banned||Here|
|FXCC||$100||FX & Precious Metals and Commodity CFD’s||2||300:1||Micro (0.01)||Allowed||Here|
|Vantage FX||$100||FX, Binary Options & Commodities and Indice CFD’s||2||500:1||Micro (0.01)||Allowed||Here|
*The quoted EUR/USD Spreads are typical or target spreads on standard accounts, unless otherwise stated. Quoted leverage is the maximum leverage offered by each particular brokerage.
Forex and CFD Broker Comparison By Trading Software:
|Broker||MetaTrader 4 (MT4)||MetaTrader 5||Sirix Social||Spotware cTrader||Social Trading||Broker Review|
|AvaTrade||Yes||No||No||No||ZuluTrade & Mirror Trader||Here|
|Saxo MT4||Yes||No||Yes||No||ZuluTrade & Sirix Social||Here|
|Barclays Margin FX||No||No||No||No||No||Here|
|FXCC||Yes||No||No||No||Sirix Social, ZuluTrade & FXSTAT||Here|
- Additional Comparison: If you need a currency broker to transfer money to a bank account view our Currency Services Comparison
What to Consider When Picking a Brokerage
This broker comparison can only assist those who know how to process the information, as there are literally hundreds of Foreign exchange brokerages competing for your custom, all claim to be the best, which can make choosing the right brokerage for you very difficult. When considering a brokerage it is important to take into a number of different factors, the importance of each of these factors will depend on each traders particular preference. Here we are going to outline some of the factors to consider when picking a Forex broker:
Is the broker your’e considering regulated? If the answer to this question is no, you should possibly rethink your decision. This is not to say that all unregulated brokerages are necessarily bad, but traders should exercise extreme caution when dealing with unregulated entities.
Regulation offers traders a degree of protection and minimizes the possibility of broker mistreating it’s clients. Properly regulated entities are overseen by regulatory bodies that ensure the firms operate within the law. It is important to note that Forex regulation varies dependent on where you live.
Regulation by Region
- Europe: Retail Forex brokerages based in the European Economic area must be regulated by the relevant regulatory authority. The Markets In Financial Instrument Directive (MiFID), allows for brokerages regulated in the European Economic area to accept clients from any EU country. Well known European regulators include CySEC (Cyprus), the FCA (UK), CBI (Ireland) and BaFIN (Germany).
- Switzerland: Brokerages based in Switzerland ought to be regulated by the Swiss Financial Market Supervisory Authority (FINMA). While Switzerland is outside of the European Union, many Swiss brokerages will take on non-Swiss clients. Many traders are attracted to Swiss brokerages due to the countries strong reputation for financial services.
- United States: Residents of the United States can only deposit with brokerages that are regulated by both the CTFC and the NFA. In addition to this limitation only CTFC registered introducing brokers can promote US brokerages, meaning you will not find any information about US based brokerages on our site. Some of the best Forex brokers are not US-approved due to very specific requirements and a very costly and lengthy process.
- Offshore Regulators: A number of brokerages operate from offshore centers such as the Seychelles, Mauritius and the Cayman Islands. While some of these brokerages may be registered with the relevant regulatory authorities in these jurisdictions, offshore regulators tend to offer very limited customer protection and we recommend that traders opt for entities regulated in more reputable financial centers.
- Australia: In Australia, Forex is regulated by ASIC. Those based in Australia should ensure that the brokerage they are considering is regulated by ASIC.
Compare Spreads and/or Commission: Trading Conditions
Every time you enter into a position you are going to face certain transaction costs. How a brokerage charges you varies with some brokers earning profits of the spread, with other brokerages charging a commission each time you trade. To understand the different ways brokerages make profit of their customers, and learn about the best forex broker business model, I suggest you read our post on Different Types of Forex Brokerages.
The majority of brokerages make their money by offering a Bid-Ask spread, the spread on offer varies from broker to broker. While a one pip difference in spread may seem insignificant, the difference can add up significantly overtime. This is why many traders look for competitive spreads when picking a broker.
While ECN/STP brokerages tend to offer the tightest spreads, they also charge a commission for the trades placed through the brokerage. These commissions add an extra cost to trading, typically ECN/STP brokerages still offer traders better value for money. However ECN/STP brokerages tend to require a higher minimum deposit and tend to offer less leverage to their clients. It is important to remember that spreads still vary among ECN brokerages, due to the fact these brokerages often use a variety of different liquidity providers.
In addition to the quality of the brokerages execution, traders should find out about the trading conditions on offera. If you intend to trade using an Expert Advisor, you will be well served to find out whether the brokerage places any limitations on the use of Expert Advisors. Depending on your intended trading strategy, you may also want to find out whether the brokerage allows for scalping, hedging and trailing stops. While the majority of regulated brokerages offer all of the above, their are a few exceptions. It is worth finding out about a brokerages trading conditions before depositing.
Deposit and Withdrawal Comparison
When comparing brokers, it worth considering how easy it is to deposit and withdraw your funds. Top brokerages tend to make it very easy to withdraw and deposit funds, as they realize that it is vitally important that traders can easily access their funds. Brokerages which make it very difficult to withdraw funds should probably be avoided.
Traders should also find out about any hidden fees. Some brokerages charge a fixed rate for withdrawals and deposits via various payment methods. These fees can really eat into your capital and are something that traders should be on the lookout for when picking a brokerage to operate with.
It’s also important to understand which eWallets are accepted so you’ll know you can receive the money effortlessly. Hop on to the beginning of this page to find the despot/withdrawal options per broker.
Compare Trading Platforms
Different brokerages offer different trading platforms to their clients. As all trading activity will likely occur through the brokerages trading platform, it is important that the brokerage offers a user-friendly and stable trading platform. Also different trading platforms offer different functionality, for instance the MT4 & MT5 platforms are very popular due to the fact they support automated trading through Expert Advisors.
Picking a brokerage with a trading platform that supports all your trading needs is always a good move. Thankfully many brokerages offer demo accounts, which allows traders to try out the brokerages platform without any financial commitment.
No service is ever perfect and even the best brokerages suffer problems time to time. What is important, however is how a brokerage handles problems when they arise. Picking a brokerage with a good reputation for customer service is a great move and can help you avoid frustrating situations. This is where genuine customer feedback can be very helpfully, allowing you to identify brokerages which offer the best levels of customer service. As an added bonus it is always nice when a brokerage offers customers numerous ways to get into contact.
By taking these various factors into consideration, you should be able to establish which forex broker is best for you.
It’s worth looking into a brokerages reputation before depositing funds. If their are lots of traders saying good things about the brokerage this can only be a good thing. Traders should be careful when reading brokerage reviews due to the fact that many brokerages operate affiliate or partner programs which reward webmasters with commission for referring traders. This has led to a number of websites publishing biased or overly positive reviews. We here at The Fx View, always try are utmost to be as unbiased as possible.
Forex forums like our personal favorite ForexPeaceArmy can be a good place to inquire about the reputation of a particular brokerage, with their being many traders who will be willing to share their experience of the brokerage with you. This can certainly help you pick a good Foreign exchange brokerage, to operate with.
Choosing the best broker for you might take time, and it is worth the effort of scanning through out broker comparison tables and discovering all the relevant details about each company. Good luck, and happy trading.