Best Forex Broker review
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| Forex Broker | Min. Deposit | Max. Leverage | MT4 | Spread EUR/USD | Currencies | Instruments | Account | Software/Webtrader | Demo | Link |
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100 $ | 1:300 |  |
1-3 pips | > 50 | Gold, Silver, Oil, Stocks, Indices, Commodities | Classic/ECN | MT4/MT5, 4XPhone, 4xp Webtrader | |
Link |
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250 $ | 1:500 | |
0.3 pip | 26 | Oil, Gold, Gas etc. | STP/ECN | MT4, iPhone/Android App, Webtrader | |
Link |
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50 $ | 1:400 |  |
3 pips | 16 | Gold, Silver, Oil, Indices | Classic/OpenBook | Software, Browser | |
Link |
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2.500 € | 1:100 | |
1 pip | 126 | Oil, Gold, Gas, Silver, Copper, Corn, ETF uvm. | ECN | MT4, WHSProStation, WHS FutureStation | |
Link |
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100 $ | 1:200 | |
3 pips | 44 | Gold, Silver, Oil, Stocks, Indices | Market Maker | MT4, AVATrader, Mirror Trader | |
Link |
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1.000 $ | 1:100 | |
0,5 -2 pips | 22 | Currencies and Gold | ECN | JForex (Java based), MT4 (via MT4 ECN bridge) | |
Link |
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300 $ | 1:200 | |
1,5 pips | 21 | Gold, Silver, Oil, CFDs etc. | Market Maker | MT4, iPhone App | |
Link |
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2.500 € | 1:200 | |
1 pip, var. | 21 | Gold, Silver, CFD, Futures, Options | Market Maker | MT4, iPhone App | |
Link |
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25 $ | 1:200 | |
2 pips, var. | 50 | Gold, Silver, Oil, Stocks, Indices, Bonds | Market Maker | MT4, MobileTrader, Autotrader | |
Link |
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200 $ | 1:200 | |
3 pips | 22 | Oil, Gold, Silver, Commodities | Market Maker | MT4, Webtrading, iPhone, TradeDesk | |
Link |
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100 $ | 1:200 | |
3 pips | 27 | Gold, Silver, Oil, Stocks, CFD, Indices | Market Maker | MT4, FX-Automate | |
Link |
Forex Terms
- Minimum deposit: The minimum deposit is to be made by the trader to participate in the forex market. Payment can be done via bank transfer, credit card or paypal etc. depending on the broker. When choosing the best forex broker the minimum deposit should not be a vital criteria. If you seriously want to trade the forex or even make a living of that, you should invest at least $500 or even better $1000. Why? Currency, stock and commoditiy rates don't rise or fall linearly. From time to time the course comes back although it sticks to its long term trend (retracement). Your account must be covered properly in order to give the currency the chance to come back again and follow its trend. If you have only a deposit of $100 or even less, your account will be wiped out within seconds.
- Max. Leverage: By means of the leverage effect you can trade much more money than your minimum deposit. With a leverage of 1:400 you can trade 400 times your deposit, which is $400.000 with a deposit of only $1000! This is what makes the forex market so lucrative on the one hand and so risky on the other hand. In order to avoid losses you must limit your risk to 2% per trade.
- Max. Bonus: Many forex brokers offer a bonus system. The bonus can depend on the type of your account or on the amount of money you deposit. If you for example deposit $1000 for your forex trading account with eToro gives you a bonus of $250 extra!
- Spread: The spread is the margin between ask and bid. Most forex brokers do not take fees or commissions but earn their money with the spread. If you go for an ECN account, you will mostly have a slight commision but very tight spreads instead.
- Currency Pairs: Indicates the different currencies that can be traded.
- Commodities:Most brokers do not only offer forex trading but (crude) oil, gold, silver, platinum, wheat and much more. If you don’t want to trade only currencies pay attention to this column.
- Account: These Brokers offer different account types. On a Market Maker Account your trade is put through a dealing desk what may result in a slower trade execution and/or annoying requotes. If you have the choice you should go for an ECN or STP account, where your trades are being put through directly to the market.
- Software/Webtrader: Several forex brokers offer their own forex trading software; some use MT4 (MetaTrader 4) or MT5, others just offer a webtrader. Most forex brokers offer both or all possibilities, as well as mobile trading applications.
- Demo account:Most forex brokers offer a demo account which is free of charge. With some brokers the access is limited in time, with others not. If you just start trading the forex it is highly recommended to take advantage of such a demo account in order to learn forex trading without gambling away your real money. If you don’t know which forex broker to choose open a demo account with several brokers, make yourself familiar with the trading platform and stay where you feel at ease. Once you see how the wind blows start trading with real money.
What can I expect?
Forex trading is normally done via internet. By means of a forex broker that provides a trading platform one gets access to the forex market. The bare minimum of a forex broker is a provision of the trader with charts and graphs as well as an overview of your account in order to see open and closed positions. In addition to charts most brokers offer historical trading data which is required for the technical analysis. Tools to support the trader are mostly implemented in the respective trading software. All brokers provide current economic data and news.
Some years ago forex trading was limited for private users due to the hardware that hasn’t had enough power. But with introduction of the new generation of PCs and high quality hardware this is a thing of the past. As already mentioned, most forex brokers do not require a special software but offer a webtrader by means of which one can open and close positions.
Which Forex Broker is the best?
There’s a couple of forex brokers and there are many opinions on the internet when it comes to question of the best forex broker. We have set up a little poll amongst traders in order give beginners a slight orientation. But bear in mind that there isn’t an absolute “best” forex broker, there are many broker and each of them have their own advantages and disadvantages. Before starting the forex trading you should ask yourself if you just want to trade currencies or commodities as well, if you want to have access to shares and CFDs, where your broker should be regulated and how much leverage you want to trade. The minimum deposit should be the last option you should consider as effective forex trading starts with a minimum deposit of $1000.
Registration, regulation and reputation
Take care of the three “re”s: registration, regulation and reputation. Although with some forex brokers the registration process is quite quick and uncomplicated, others want to see a copy of your id, passport and a proof of residence. Don’t take this for annoyance of the broker but for your own security in order to prevent fraudulent use. Is the broker regulated by any national authority? How’s the reputation of the broker? Ask Google for reviews and experiences, take part in discussions and forex trading forums to find the broker of your choice.
Service and Support
Does the broker offer support via phone, chat and/or email? How’s the forex trading platform documentated? As an English native speaker you will be on the safe side. Forex trading language is English and we don’t know any broker that doesn’t support English speaking people.
Account and fees
If you just want to try out forex trading you don’t need a large institutional account with a minimum deposit of $50.000. Choose a broker with a lower min. deposit and try out forex trading. Many brokers offer mini accounts for private traders. Take care that the only fee you have to pay for participating in the forex market is the spread or a slight commission if you go for an ECN account. Normally forex brokers do not take other fees and commissions anymore as the competition will be strengthened.
The best way to try out a forex broker is by opening a demo account which is free of charge. Almost every broker has such a demo account on offer and thus you can see if you feel at ease with your broker.