You need a forex broker to do forex trading, and finding a reliable broker with a good reputation is crucial. With many forex brokers out there, selecting one can be challenging and will require hours of research and comparing. Which is why we created this article after doing all that to save you time and help make your decision easily. Here are 13 best forex brokers in 2022.
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What is a forex brokers?
Forex brokers are financial service providers that give access to forex trading platforms where traders can buy and sell foreign currencies. Most of these brokers provide various features to their users like leverage, market analysis, strategies, and tutorials. These brokers can receive regulatory licenses and those are what traders use to check the trustworthiness of a forex broker.
IG Markets – Best forex brokers for CFD
As one of the few forex brokers who act as market makers, IG uses their liquidity to meet clients’ orders. This is a broker who is regulated by 10 financial authorities and holds users’ money in segregated accounts. In addition, IG markets offer over 90 forex pairs and 17 000 tradable instruments to its users.
When it comes to forex, IG offers a spread of 0.6 pips with a minimum deposit of $250 to open an account. It also provides MT4 and L2 trading platforms to its users. Furthermore, a demo account feature to learn the ropes as well as the IG Academy, which is great for forex learning, are tools available for the clients of IG.
CMC Markets – Best-in-class range of offerings
Founded in 1989 in the UK, CMC Markets is a forex broker that gives clients access to a wide range of forex markets to trade on. This is a highly regulated Forex broker that provides over 330 forex pairs and over 9500 financial instruments.
What’s great about CMC markets is that they charge no commission fees or have no minimum deposit. 0.7 pip spread is on major currency pairs, but if you are to trade CFDs, you will see a commission fee of 0.1%. Clients who invest here won’t have to worry about the safety of their finances since CMC follows the strict rules set by the FCA to ensure investor fund protection.
Forex.com – Best forex brokers for Canadian traders
This Canadian-based broker is overseen by IIROC and is regulated by many financial authorities in over five countries. Traders who use Forex.com can enjoy over 90 forex pairs, 220 CFDs, and over 4500 stock trading opportunities.
Forex.com is a forex broker that is more suited for advanced and active traders. In addition to the 1.0 pip spread, active traders can use the DMA account to get a discount on large trades.
The broker also rewards VIP clients with 15% trade cost reductions while giving them strategies and personalized support. A MT4, online, and desktop platforms are available here, and users have to deposit $100 to start an account.
Icon FX – The Best Overall Broker
If you are a trader looking for a trustworthy, profitable, and regulated, Icon FX might be the broker for you. Icon FX provides fast execution of trades and high liquidity on traded assets. In addition, to aid your reading decision-making, they also provide market analysis and free trading tools to their clients. Users of Icon FX can enjoy instruments from five asset classes, including over 50 forex pairs.
Standard, as well as demo accounts, are available here, and when opening an account, no minimum deposit is necessary. A leverage of 500:1 is provided on some assets while starting with 0.0 pip spreads on major pairs. Tight spreads along with price transparency are something common on this broker across all the instruments.
Traders of any experience level can use Icon FX as their dedicated broker with the features available for them. Innovative tools, charts, and technical indicators within the broker will make it easy for any trader to do what they need to do. 24/5 multilingual customer support is also available here, and traders can easily get in touch with the customer support team.
EToro – The Best Brokers For Beginners
If you are a beginner looking for a simple forex broker to start your trading, eToro might be a good place to start. EToro is a broker that focuses more on social trading and comes with the copy trading feature. This allows users to duplicate trades made by expert traders on your account to improve your chance of success.
EToro is also one of the better forex brokers that allow crypto trading. With over 60 crypto assets, 0% commissions, $0 minimum deposit makes, this is a great broker to begin a trading career. In addition, it also comes with great educational resources to help out new traders as well. Furthermore, a great emphasis on customer support is here, aiding the claim of the best beginner platform. A mobile and web platform is also available here for traders to use in their trading activities.
TD Ameritrade – Best for US-based traders
With over 50 years of trading experience, TD Ameritrade is one of the largest forex brokers in the US. When trading with TD Ameritrade, traders can enjoy $0 platform fees, data fees, or trade minimum deposits. In their long active time, they have been able to get regulations passed by some of the best financial authorities in the world.
Here the traders have the freedom to trade with a wide range of assets, including forex, ETFs, mutual funds, etc… In addition, there are over 70 forex currency pairs available to traders to use with $0 commissions. Even though most of the deposits and withdrawals are free, one thing to keep in mind is that this broker charges a fee of $25 for bank and wire transfers.
Pepperstone – Best global forex broker
One of the strong points of Pepperstone is the availability of a wide range of options like forex, CFDs, stocks, and crypto on a global scale. This is a highly regulated Australian broker that has a low spread of 0.09 on major pairs but with a $3 commission per lot traded.
Pepperstone comes with two account types, the standard accounts and Razor accounts. Razor accounts are more suited to active and large-scale traders. Both of these account types have a $0 minimum deposit and $0 funding costs. Another great thing about this forex broker is the quality of its customer support –Which is active 24/7 and helps with all issues in all of their MT4, MT5, cTrader, or TradingView platforms.
Avatrade – Best forex brokers for traders outside of the US
Fixed spreads are the main selling point of Avatrade, and it attracts beginner or risk-averse traders. Regulated by FSC, CySEC, and CBI, Avatrade acts as a market maker and comes with spread-only accounts. Traders can trade up to 55 forex pairs with the help of this broker.
Avatrade has a 0.9 pip spread on major pairs and has no commission fees tied to them. A minimum deposit of $100 is necessary when creating an account here.
AvatraderGo mobile app, MT4, and MT5 are the available trading platforms, and they allow for automation, scalping and social trading. Besides these, Avatrade provides a wide range of applications like ZuluTrade, DupliTrade, and AvaSocial, which allow traders to do social trading and copy trading.
Plus500 – Largest CFD provider
As one of the leading CFD providers in the world, Plus500 offers a whopping 2800 instruments, which includes CFD forex pairs. This is also a forex broker without any commissions and provides up to 1:300 leverage. The availability of advanced analytical tools and being highly regulated makes Plus500 one of the better brokers available.
Unlike many other CFD brokers, Plus500 has no fees for deposits, opening or closing trades, position rolling, live share CFD prices or their tools. One thing to keep in mind is that Plus500 doesn’t allow scalpers and algorithmic traders.
Saxo Capital markets – Best forex brokers for advanced traders
The Saxo Bank Group of Denmark introduced the Saxo capital markets to the world in the late 90s. Like many other brokers, Saxo capital markets do not allow traders who are from the US. Traders can enjoy a wide range of offerings and brokerage services that any advanced trader can take advantage of.
A minimum of £500 is needed to open an account with Saxo. Saxo offers 0.4 pips on major pairs and 3 pips for FX options. Furthermore, they offer protection for client accounts while providing a superior user interface. The quality of service that Saxo provides even allowed them to win awards like ADVFN Best Platform for the Active Trader 2019.
XTB Online trading – Best for traders looking for lower-cost forex brokers
Founded in 2002 as a forex brokerage house under the name x-Trade and then was rebranded as XTB Online trading in 2009. This is a broker where traders can leverage 500:1 on non-UK accounts and 30:1 on UK accounts. However, US traders cannot perform any trades with XTB.
Low cost in most of their features like opening/closing trades, creating accounts, wire fees, deposits and withdrawals are available here. They have standard and Pro accounts, and Pro provides more benefits to the traders. A minimum spread of 0.9 pips is available for standard users, while pros enjoy a 0-pip spread. XTB Online trading provides great attention to its customer service, and it is active 24/7.
London Capital Group Trader – Best for UK-based traders
Rebranded as LCG Trader from the London capital group in 2016, this is another major UK-based broker. A wide selection of over 7000 CFDs and spread betting instruments across nine different asset classes is available here for traders to use. This is another forex broker that does not allow any US traders to make their trades on this platform.
No minimum deposit is needed to create standard accounts, and for ECN accounts, a deposit of $10,000 is necessary. In addition, LCG provides great tools to support new traders who are still learning the craft. This forex broker also has a heavy emphasis on customer service and client account protection. Spreads start at 0.0 on here, and while withdrawals are free, a 2% charge is here on any deposits.
XM – Best platform for low-spread trades
As one of the biggest names in forex, XM has over 5 000 000 clients from over 190 countries. The forex broker was founded in 2009, and as of now, it has support for over 1000 instruments, 30 languages, 16 full feature trading platforms, and over 25 secure payment methods.
This is a broker that has a very strict no requotes policy, and 35% of the trades happen in under a second.
A minimum deposit for a standard account is $5, and you can create a demo account for free. In addition, XM provides 1:1000 leverage and trades starting with 0 pip spreads. 24/7 live help alongside free daily technical analysis, outlooks and signals are also available on XM. This is also a multi-regulated forex broker that has won many awards for its services.
Frequently Asked Questions
Yes, you can trade in the OTC Forex market with large financial institutes. However, this is not advised unless you are a trader with modest capital.
While it is hard to select just one broker, Icon FX is a great forex broker. It has low fees, low spreads, and high leverage, and it is highly regulated.
EToro is a great choice for any new trader. Its copy trading feature, alongside its good education section and good customer support, makes eToro a great place to start.
Forex brokers are the financial institutions that act as the middleman between traders and the forex markets. Without the existence of brokers, traders will have a much harder time making trades that are both profitable and less risky.
The number of options available for traders when it comes to forex brokers is large, and choosing the right one might prove tricky. Many factors go into the final decision regarding the correct broker, and they can be anything from a place of trading, fees, leverage, spreads, supported assets, and available platforms.
The above list has some of the best forex brokers that a trader can select with their benefits, costs, and drawbacks. Take the information here and do your research on top of it to select the perfect forex broker for you.