The best forex brokers list contains the top 3 ranking best forex brokers based on my years of personal experience and detailed forex broker research and analysis. I have gone through each of these brokers with a fine-tooth comb to ensure that they pass all of the best forex broker stress tests such as regulation, spreads, slippage, commission, liquidity providers, deposit / withdrawal methods, forex trading account types, forex trading platforms, types of forex trading allowed (scalping, hedging, etc) and much more! This ensures that based on my research of forex brokers, only the best forex brokers pass the test and make it into my top 3 forex brokers list.
Using the top 3 forex broker list, you can compare the various features of different forex brokers, see links to my full detailed forex broker reviews and see which the best forex broker for you is. It is very important that you choose a reliable forex broker to ensure that your trading account funds are safe and that you have the best possible trading conditions such as low spreads and low slippage. The higher the liquidity provided by the forex broker, the lower the spreads and slippage will be which can lower your overall trading costs and also improve your trade execution, so you get in and out of trades at the best possible price provided by the forex broker with minimal delay. All of the forex brokers reviewed have plenty of liquidity and use an ECN forex broker model which is amongst the best possible trading account options for retail forex traders. To emphasise the importance of using a good forex broker, a forex trading system that performs well on one broker may not perform as well on another broker solely based on the difference in spreads, commission and slippage alone – that is how important it is to make the correct choice when opting for a forex broker.
Other factors worth considering include if the forex broker accepts clients from your country – most countries are accepted although US clients can struggle due to stricter US regulations. You should also consider the leverage the forex broker offers as higher leverage is not always a good thing as it means you can trade larger lot sizes which may be good for some aggressive traders but can also be dangerous for others who over leverage their forex trading account which can in turn lead to a margin call.
Anyways, I can go on for days and days about the importance of forex brokers and what to look for, so to save time, please see a selection of the very best forex brokers from my honest point of view below. Please always conduct your own due diligence on all forex brokers.
Top 3 forex brokers
- IC Markets is without doubt one of the best forex robots when it comes to spreads, commission and executions speeds. IC Markets have strict regulation and a wide range of account types to suite all levels of forex traders. Setting up a demo or real forex trading account is super quick and easy whilst IC Markets have an excellent support team on hand 24/7 to assist you, including live chat on the IC Markets official website. IC Markets accept a variety of different trading account deposit and withdrawal methods that are completed very promptly. IC Markets have perhaps the largest liquidity provider (LP) pool which ensures superior forex trading conditions around the clock via the ECN forex model they provide. There are no limitations with IC Markets so you can scalp and hedge to your hearts content! For more information and a more detailed review, please see my IC Markets review page.
- XM is another fantastic and regulated forex broker with excellent trading conditions and a huge liquidity provider pool. This means that just like IC Markets it gives us the best possible forex trading conditions for all of our manual and automated forex trading systems. With the low spreads and commissions on XM forex broker, we ensure that we do not pay over the odds for trading costs whilst also getting trade entries and exits executed at the best possible price. XM offers a wide range of deposit and withdrawal methods that in my experience are conducted in a very prompt manner again with support on hand to assist 24/7. Based in the UK, XM is under strict regulation which helps to ensure that your trading funds are safe. For more information and a more detailed review, please see my XM review page.
- Pepperstone is another huge forex broker, an absolute juggernaut in terms of forex brokers! It has some of the largest forex trading volume through it’s wide range of liquidity providers. Trading forex through the strictly regulated Pepperstone, you can exepct very low spreads, low commissions and superb trade execution speeds. All of these factors ensure that you have a forex broker with the best possible forex trading conditions for your manual and automated forex trading systems. Just like IC Markets and XM, the customer support at Pepperstone is available 24/7 and very helpful. You can quickly open a demo or real trading account to start trading on one of the best forex robots available to retail forex traders. Pepperstone provide multipe forex trading account types with the Pepperstone RAZOR account perhaps giving the best possible forex trading conditions. The minimum deposit size is very reasonable and the ever popular, easy to use MetaTrader platform is available via Pepperstone. For more information and a more detailed review, please see my Pepperstone review page.
What to consider when looking for the best forex brokers?
Best Forex Brokers Spreads
The lower the forex brokers spreads, the more chance you have of making a profit. The spread is the difference between the bid and the ask price which you must pay the forex broker for each trade that you make. Low spreads will lower your forex trading costs and ensue that you get the best possible prices when entering and exiting trades. Low spreads are especially important when using a scalping strategy that relies on making just a few pips per trade as spreads can vary from 0 to a few pips depending on the forex broker that you choose. Low spreads can give great results on some forex trading strategies that would have performed badly with higher spreads. The more liquid a currency pair, usually the lower the spread. You will find that most of the time, forex brokers will have low spreads on the EURUSD currency pair and other major currency pairs as they have the most liquidity – these pairs have the highest trading volume. More exotic currency pairs tend to have wider spreads due to less demand for trading them. When choosing the best forex broker for you, you will see a list of spreads on the brokers website. Just remember, the lower the spreads you see, the better. The spread is less important when trading long term strategies where you hold a trade for days, but you can still save on your trading costs long term and increase winning percentage when using a forex broker with low spreads. Most forex robots will have a maximum spread setting to stop trades being placed if the spreads are too high. There are fixed spread forex brokers available although these tend to include commission mark ups are widen spreads in times of certain volatility. Often, a variable spread broker will be cheaper to trade on than a fixed spread broker.
Best Forex Brokers Slippage
Slippage is the difference between the price that you placed the trade and the price at which it is executed by your broker. For arguments sake, if you tried to enter a sell trade at 1.5000 and your broker executed your order at 1.5020, the slippage is 20 points (2 pips). Along with the spread and commission your broker charges, slippage can also add to your trading costs especially if your broker is prone to slippage. Too much slippage can turn a winning strategy into a losing strategy especially if your trading system relies on scalping a few pips, the slippage could end up eating into all of your profits. The larger the broker in terms of trading volume and liquidity pool, the lower the slippage. If you often see “off quotes” errors in your trading platform that means that your broker is often having so much slippage that orders may not get placed. You will see that many forex robots have maximum slippage settings in them to prevent orders being placed if slippage is too large. You will also notice around news that your trades are more likely to incur slippage.
Best Forex Brokers Liquidity Providers (LP’s)
Forex brokers use liquidity providers (LP’s) to provide liquidity pools to retail traders to trade on. The more LP’s that your forex broker has, the better trading conditions you are likely to get overall. You can check with your forex broker what LP’s they use, the more LP’s they have and the larger the LP’s are, the better. LP’s directly affect the spreads/slippage which as mentioned above are very important factor to improve trading performance and lower trading costs.
Best Forex Brokers Commission
When you place a trade, most brokers will charge a commission. This is part of the way they make their money and can provide the services that they do. Commission is usually around $1-$9 per standard lot. The lower the commission your forex broker offers, the better. Commissions can eat into profits along with spreads and slippage, thus make sure you account for them when planning your trading strategy. Especially in forex scalping systems, high commissions can eat into all profits so make sure you take this into consideration and use a forex broker with the lowest possible commissions. Some forex brokers even offer rebate programs where they pay back some of the commission.
Best Forex Brokers Leverage
Leverage is effectively borrowing money to trade a larger amount than you would usually be able to without it. The higher the leverage the forex broker offers, the larger the lot size you will be able to trade as you will have more free margin. However, be careful not to over leverage your account as you may end up trading lots unrealistically high that can cause your account to suffer large drawdowns and possible lead to a margin call or stop out. In my opinion it is best to trade within your means and use sensible leverage which most brokers will offer. Forex brokers usually offer leverage from 1:1 all the way up to 1:500. If you are a risk taking trader then of course you may wish to use higher leverage for higher rewards.
Best Forex Brokers Trading Platform
When choosing a forex broker you should consider the forex trading platform that they offer. By far the most popular forex trading platform is mt4 (MetaTrader 4) and you will find that nearly all forex robots run on mt4. There are other trading platforms available but mt4 has one of the quickest learning curves and a ton of tutorials online. I find it very user friendly and the good thing about becoming an mt4 expert is that if you decide to switch forex brokers at a later date, the new broker you choose is likely to offer the mt4 trading platform whereas they may not offer the other trading platform you were using thus limiting your forex broker options.
Best Forex Brokers Deposit / Withdrawal Methods
It is important to look into what deposit and withdrawal methods your forex broker uses. If you only want to make deposits and withdrawals via PayPal or Skrill, you should check that they offer these services. If you are happy with bank transfers, then most forex brokers will offer this funding method. You will usually find that most forex brokers offer more than enough deposit / withdrawal methods. In fact, some brokers will offer so many options you will be spoilt for choice and they even have methods you have never heard of before! Funding methods used will affect speed of transferring funds and also the security. I tend to look for faster methods that are very popular and secure.
Best Forex Brokers Account Size
By account size I am referring to the minimum deposit required to open a forex trading account with a broker. Some forex brokers have minimum requirements for opening certain types of accounts. E.g. the forex brokers standard account may have a min $100 deposit requirement but it may not offer the lower spreads / commissions of the pro account that requires a $5,000 min deposit. I have noticed in recent years that brokers seem to be lowering the min deposit requirements for accounts and of course, nearly all brokers will give you the option to try a demo account for free. Just keep in mind that the demo account conditions can differ greatly from the real account conditions. This can make you believe a strategy will work when testing on demo but then you find it will not work when running it live once potentially different slippage, commission and spreads are added to the equation. Demo account trading is best used to improve your trading skills and emotions.
Best Forex Brokers Account Types
You should consider the different types of trading accounts that the forex broker offers. Most brokers will have a selection of trading accounts to choose from that vary in min deposit size, leverage, commissions and spreads. As mentioned above, the lower the trading costs can be, the better the account type is likely to be.
Best Forex Brokers Support
When you have a support question for your broker you want it answered right away! It can be frustrating to have a technical question and have to wait days, even weeks for answers. I have experienced this from certain brokers and it does not install me with confidence. What if it is an emergency! I find the best forex broker support teams are those who have live chat available 24/7 on the website. This way anytime you have a question, you can just hop onto the website and ask rather than having to wait hours for a response. Consider the GEO location of the broker also due to time zone differences. If you open a support ticket on EST but your broker runs support during GMT hours, then you are more likely going to need to wait 12+ hours for a response. In saying that, most popular and larger forex brokers have support teams around the world ready to answer your questions.
Best Forex Brokers Trading Styles
Some forex brokers do not allow hedging, scalping, arbitrage or other strategies they consider detrimental to business. Check with them that your trading style will be accepted before going through the signup process as it can save you wasting time. You also don’t want any nasty surprises down the line should you start making profit from a specific strategy that your broker frowns upon.
Best Forex Brokers Regulation
Regulation is a key factor to consider when choosing your forex broker. Make sure they are regulated by a governing body such as the FCA, ASIC, CySEC, etc. This gives you extra peace of mind that they wont close up shop and lose your money. There may also be certain securities in place to protect your funds if there is a market shock such as that which occurred with the swiss franc in 2015 that wiped many out.
Best Forex Brokers Countries Accepted
Logically, you should make sure that the forex broker accepts clients from your country. A lot of forex brokers are restricted to offer services to some client locations, specifically the US.
Best Forex Brokers Rebates
Some forex brokers have rebate programs where you get paid back some of the commission from your trades which can lower and save you on trading costs.