Best Forex Brokers 2021

This list contains all of the top forex brokers that I have reviewed over the years along with a description, rating and link to the brokers review or website. You can quickly and easily view broker ratings to help you choose the best forex broker for you.

I have gone through each of these brokers with a fine-tooth comb, conducting thorough research and analysis on the most important things to consider such as regulation, spreads, execution speeds, commissions, liquidity providers, funding methods, account types, trading platforms, trading tools, educational resources, customer support, forex strategies allowed (scalping, hedging, etc) and much more!

I could 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 best fx brokers from my honest point of view below. Please always conduct your own due diligence on all forex brokers.

New forex brokers will be added frequently so please bookmark this page to keep up to date with the latest forex brokers.

# NAME RATING DESCRIPTION Statistics LINK
1

IG

IG
Read review
Founded in 1974, IG is one of the biggest online brokers in the world and has won multiple awards over the years. They offer over 16,000 tradable products across multiple asset classes, such as forex, indices, stocks, commodities, bonds, metals, energies, and interest rate futures. The broker provides a nice selection of intuitive trading platforms,...
Spreads
100
Liquidity
100
Commissions
100
Support
100
Regulation
100
Visit IG Website
2

XM Group

XM Logo
Read review
XM Group are one of the best forex brokers in my opinion, providing forex traders with demo and real accounts to trade forex online. Using the XM Group trading platforms provided, including the highly recommended MetaTrader 4 & MetaTrader 5 trading platforms, XM Group clients can place and manage trades on the forex market. XM...
Spreads
95
Liquidity
95
Commissions
95
Support
100
Regulation
95
Visit XM Group Website
3

AvaTrade

AvaTrade
Read review
AvaTrade have some of the most competitive spreads I have seen and rapid trade execution speeds in comparison to many other online forex brokers. This established broker has plenty of forex currency pairs (50+ majors / exotics) and even cryptos for you to trade online with some of the most impressive trading conditions from my...
Spreads
95
Liquidity
95
Commissions
95
Support
90
Regulation
95
Visit AvaTrade Website
4

Pepperstone

Pepperstone Logo
Read review
Pepperstone have been around for many years and have rightly earned a fantastic reputation amongst the forex trading community as one of the best forex brokers, if not the best. Pepperstone is a name that I have often seen popping up during my many years of forex trading. I have a forex trading account with...
Spreads
95
Liquidity
95
Commissions
95
Support
95
Regulation
90
Visit Pepperstone Website
5

IC Markets

IC Markets Logo
Read review
IC Markets are one of my best forex brokers that allow you to open a forex trading account and trade the forex market through one of the trading platforms they provide – MetaTrader 4 (MT4) being the most widely used trading platform. Apart from being extremely easy to use with a small learning curve, MetaTrader...
Spreads
95
Liquidity
95
Commissions
95
Support
95
Regulation
80
Visit IC Markets Website
6

FP Markets

FP Markets Logo
Read review
FP Markets is a well-established and regulated online broker. They have an impressive selection of more than 13,000+ trading instruments which is one of the largest offering of assets I have seen from any broker. Traders from all over the globe can trade Forex pairs, Metals, Commodities, Indices, Equities and Cryptocurrencies. The broker was founded...
Spreads
90
Liquidity
90
Commissions
90
Support
90
Regulation
90
Visit FP Markets Website
7

eToro

eToro
Read review
eToro is a popular social trading platform that also offers brokerage services. The platform has a vast collection of analytical tools that traders can use to determine the right trader to copy. The platform has millions of traders from over 140 countries. With eToro, investors can invest in forex, stocks, indices, bonds, ETFs, cryptocurrency, metals,...
Spreads
85
Liquidity
85
Commissions
90
Support
90
Regulation
90
Visit eToro Website
8

Markets.com

Markets.com Logo
Read review
Markets.com is an established provider of online Forex and CFD trading services, offering a wide range of over 2,200 trading assets, spread across currency pairs, cryptocurrency, stocks, indices, bonds, ETFs, Blends, IPOs, metals, energies, and other commodities. They provide clients with advanced and user-friendly trading platforms, helpful analysis tools, training resources, dedicated customer support, and...
Spreads
85
Liquidity
85
Commissions
85
Support
90
Regulation
90
Visit Markets.com Website
9

NAGA

NAGA
Read review
NAGA is an innovative online broker that provides a social investment network where traders can like, share, and copy investments on over 500 trading instruments including forex, commodities, cryptocurrency, stocks, indices, metals, energies, and ETFs. There are over 500,000 accounts on the NAGA network, which was founded in 2015 with the mission to make investing...
Spreads
90
Liquidity
85
Commissions
85
Support
90
Regulation
85
Visit NAGA Website
10

BlackBull Markets

BlackBull Markets
Read review
BlackBull Markets is a New Zealand-based broker that offers institutional-grade trading conditions to traders across the globe. They offer forex trading and CFDs on indices, energies, metals, and more. Little wonder this broker won the highly coveted Deloitte Fast 50 award among several other awards owing to their premium trading tools and innovative solutions in...
Spreads
85
Liquidity
85
Commissions
85
Support
90
Regulation
80
Visit BlackBull Markets Website
11

Forex.com

Forex.com
Read review
Forex.com has been around since 2001, and it is a leading brand in the retail forex industry. The broker offers trading services in over 300 instruments, across forex, stocks, commodities, indices, and cryptocurrency, providing exceptional trading conditions, such as fast execution speeds, minimal slippage, and competitive trading fees. They provide their in-house trading platform, with...
Spreads
80
Liquidity
90
Commissions
80
Support
80
Regulation
95
Visit Forex.com Website
12

Plus500

Plus500 Logo
Read review
Plus500 is a popular online CFD only broker that is headquartered in Israel and regulated in multiple jurisdictions through its subsidiaries. The brokerage firm was established in 2008, and they offer CFDs on Forex, Cryptocurrencies, Stocks, Commodities, ETFs, Options and Indices, on their easy-to-use proprietary trading platforms, which is equipped with many useful tools. They...
Spreads
85
Liquidity
85
Commissions
80
Support
85
Regulation
90
Visit Plus500 Website
13

City Index

City Index
Read review
Founded in 1983 and headquartered in the UK, City Index is one of the leading online brokers in the world. They have over 35 years of experience and cater to over 150,000 traders from different parts of the world, offering fast and reliable trade execution speeds via their award-winning platforms and technology across multiple devices....
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
95
Visit City Index Website
14

FXTM

FXTM
Read review
Launched in 2011, Forex Time (FXTM) is an online broker that is regulated by top financial authorities around the world. They offer over forex and CFD trading in 250 tradable instruments, spread across currency pairs, cryptocurrency, stocks, indices, metals, energies, and other commodities, with tight spreads, good execution speeds, and negative balance protection. The broker...
Spreads
80
Liquidity
80
Commissions
85
Support
80
Regulation
90
Visit FXTM Website
15

Admiral Markets

Admiral Markets
Read review
Admiral Markets is a regulated and award-winning broker that provides its clients with a vast selection of trading instruments on advanced trading platforms with tight spreads, fast execution, flexible account types, and several funding options. The broker has been offering impeccable brokerage services since they began operation in 2001. No wonder they have numerous awards...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
90
Visit Admiral Markets Website
16

Axi

Axi Logo
Read review
Established in 2007 in Australia, Axi (formerly known as AxiTrader) has grown to become one of the leading names in the online trading industry. The broker provides trading services in forex, stocks, indices, metals, energies, bonds, and ETFs, offering tight spreads, low commissions, good execution speed with minimal slippage, and multi-lingual global 24-hour customer support...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
90
Visit Axi Website
17

FXOpen

FXOpen
Read review
FXOpen is a well-established forex broker that has been offering online trading to over 1 million clients across the globe all the way back to 2005. They are an ECN broker that has tight spreads, reliable execution speeds and competitive commissions. FXOpen can cater to both retail and institutional traders with services including retail trading...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
90
Visit FXOpen Website
18

Hugo’s Way

Hugo’s Way
Read review
Hugo’s Way is an online forex and CFD brokerage brand owned and operated by Hugo’s Way Ltd — a company located in St Vincent and the Grenadines. The company was established in 2017 and also has another office in Kingstown, the capital of Saint Vincent and the Grenadines. They offer forex and CFDs via the...
Spreads
90
Liquidity
90
Commissions
90
Support
90
Regulation
50
Visit Hugo’s Way Website
19

HYCM

HYCM
Read review
Since 1977, HYCM has been providing trading services to its clients across the globe, offering a range of instruments from different asset classes, including Forex, Stocks, Cryptocurrency, Indices, Metals, Energies, and other commodities. In all, there are over 300 instruments available on this broker’s platform, and they are regulated in multiple jurisdictions. With over 40...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
90
Visit HYCM Website
20

LMFX

LMFX
Read review
LMFX is a retail forex and CFD broker that provides online trading services to retail and institutional clients across the globe. The broker offers a wide range of trading instruments in various markets, such as forex, commodities, stocks, shares, indices, metals, and energies. LMFX provides traders with the MetaTrader 4 platform for desktop, web, and...
Spreads
90
Liquidity
90
Commissions
90
Support
90
Regulation
50
Visit LMFX Website
21

Tickmill

Tickmill
Read review
Established in 2015, Tickmill is an online forex and CFD broker that is regulated in multiple jurisdictions. They provide online trading services to their retail and institutional clients across the globe, offering over 80 tradable instruments across currency pairs, stocks, indices, bonds, metals, energies, and other commodities via flexible trading platforms. The broker offers quality...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
90
Visit Tickmill Website
22

Traders Way

Traders Way
Read review
Trader’s Way is an online retail forex broker that offers trading services in a number of tradable instruments, spread across currency pairs, precious metals, energies, and cryptos. They provide their clients with a range of trading platforms, including the very popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, as well as the user-friendly and...
Spreads
90
Liquidity
90
Commissions
90
Support
90
Regulation
50
Visit Traders Way Website
23

XTB

XTB
Read review
XTB is a renowned online broker and one of the largest Forex and CFD brokers listed on a stock exchange. They offer over 1,500 tradable instruments across different asset classes, including forex, cryptocurrency, stocks, indices, bonds, ETFs, metals, energies, and other commodities via their reliable and award-winning platform. XTB treats its clients like worthy partners...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
90
Visit XTB Website
24

Swissquote

Swissquote
Read review
Swissquote is an online brokerage firm that is headquartered in Gland, Switzerland, with representatives in Bern, Dubai, Malta, London, Hong Kong, and Zurich. The broker provides their clients with a variety of award-winning trading solutions across multiple asset classes, including Cryptocurrencies, forex, stocks, indices, options, bonds, ETFs, metals, and energies. Swissquote currently provides trading services...
Spreads
80
Liquidity
80
Commissions
80
Support
75
Regulation
90
Visit Swissquote Website
25

ETFinance

ETFinance
Read review
In this post I will be reviewing the ETFinance online broker who are based in Cyprus. They offer clients around the world online trading of Forex and CFD instruments via the MetaTrader 4 platform which you can download for free for multiple devices. If you are new to trading online, the broker has demo account...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
80
Visit ETFinance Website
26

HF Markets

HF Markets
Read review
Formerly known as Hot Forex, HF Markets is a popular online forex and CFD broker that was established in 2010. The broker offers retail and institutional trading services on a vast range of trading instruments, spread across multiple markets including forex, cryptocurrency, stocks, indices, bonds, metals, energies, and other commodities. HF Markets offer a range...
Spreads
75
Liquidity
75
Commissions
75
Support
80
Regulation
95
Visit HF Markets Website
27

NSBroker

NSBroker
Read review
Founded in 2011 and part of the NSFX group, NSBroker is a regulated broker located in Malta that offers tight spreads, low commissions and rapid trade execution speeds. They offer traders from all across the globe access to trade CFDs and forex online via an easy to use trading platform. In addition to excellent trading...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
80
Visit NSBroker Website
28

OInvest

OInvest
Read review
In this post I will be reviewing the online broker OInvest. This is a South African brokerage firm that was established in 2008. They offer a wide range of asset classes for trading online including forex currencies, CFD’s on stocks, commodities, precious metals, energies and more. Whatever you like to trade, there is something for...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
80
Visit OInvest Website
29

Global Prime

Global Prime
Read review
Global Prime is a leading online broker that offers trading services in over 40 tradable instruments across several asset classes, including commodities, cryptocurrency, forex, stocks, indices, metals, energies, and much more. Established in 2010, Global Prime now has clients in over 120 countries, with an average monthly trading volume of 30+ billion. The broker is...
Spreads
80
Liquidity
80
Commissions
80
Support
75
Regulation
80
Visit Global Prime Website
30

Oanda

Oanda
Read review
Founded in 1995, Oanda is a well-known online retail broker that is regulated in multiple jurisdictions, including the US, UK, Canada, Japan, Singapore, and Australia. The broker provides forex and CFD trading in over 126+ instruments, across all major financial asset classes. Oanda has won several awards over the years, including the Best Retail FX...
Spreads
75
Liquidity
75
Commissions
75
Support
75
Regulation
95
Visit Oanda Website
31

ATFX

ATFX
Read review
ATFX is a well-established online broker, with presence in the UK, Cyprus, and the UAE, and their website is available in up to 13 languages. Founded in 2017, the broker offers trading in forex and CFDs on over 100 instruments, including metals, energies, indices, German and U.S. socks, and cryptocurrencies. They also offer spread betting...
Spreads
70
Liquidity
70
Commissions
80
Support
80
Regulation
90
Visit ATFX Website
32

Darwinex

Darwinex
Read review
Darwinex is a regulated, London-based online brokerage firm founded in 2012. They offer trading in over 300 instruments across several asset classes, such as forex, cryptocurrency, stocks, indices, metals, energies, and other commodities. Providing direct market access (DMA), the broker offers excellent trade execution speed, competitive spreads that start from 0 pips, and low commission...
Spreads
80
Liquidity
80
Commissions
75
Support
75
Regulation
80
Visit Darwinex Website
33

SimpleFX

SimpleFX
Read review
SimpleFX is an online broker that provides traders around the globe with forex, CFDs, indices, metals, energies, commodities, cryptocurrency, and stocks trading online. They state that their mission is to keep their trading products and conditions simple and transparent, hence, the company’s motto is “Keep it simple!” The broker’s basic features include multi-currency accounts, negative...
Spreads
85
Liquidity
85
Commissions
85
Support
85
Regulation
50
Visit SimpleFX Website
34

ActivTrades

ActivTrades
Read review
ActivTrades is a well-regulated online forex and CFD broker that offer traders across the globe over 500 trading instruments in multiple markets, including forex, cryptocurrency, stocks, indices, metals, energies, ETFs, Spread-betting, and options. The broker provides clients with a selection of powerful trading platforms, interesting trading tools, and educational resources. They operate with no dealing...
Spreads
75
Liquidity
75
Commissions
75
Support
80
Regulation
80
Visit ActivTrades Website
35

FXChoice

FXChoice
Read review
FXChoice is a Belize-regulated online forex broker that accepts clients from all over the world, excluding the United States. They are an ECN broker, which provides direct access to the liquidity providers, offering competitive trading fees, fast execution speed, and easy account management features. The broker offers forex and CFD trading in a wide range...
Spreads
75
Liquidity
75
Commissions
75
Support
90
Regulation
70
Visit FXChoice Website
36

TradeATF

TradeATF
Read review
TradeATF is an online broker that offers CFD trading on 250+ assets, including Forex currency pairs, cryptocurrencies, indices, precious metals, energies, shares/stocks. They cater to traders from across the globe, whatever your level of trading experience, the broker states that they support every client with their market analytics, innovative technology, expertise, and trading services. Tight...
Spreads
75
Liquidity
75
Commissions
75
Support
80
Regulation
80
Visit TradeATF Website
37

Fusion Markets

Fusion Markets
Read review
Fusion Markets is a regulated Australian online-based broker that offers flexible trading platforms and account types with highly competitive trading fees. The broker offers over 120 financial products in multiple asset classes, including forex, commodities, cryptocurrency, stocks, indices, metals, and energies. They make use of the latest cutting-edge technologies to provide fast, easy, and efficient...
Spreads
75
Liquidity
75
Commissions
75
Support
75
Regulation
80
Visit Fusion Markets Website
38

Iron FX

Iron FX
Read review
IronFX is a global online trading broker that offers forex trading and CFDs in over 200 financial products across different asset classes, including currency pairs, cryptocurrency, stocks, indices, metals, energies, and other commodities. Although headquartered in Cyprus, the broker has offices around the globe, including London, Sydney, and Johannesburg. The broker provides 10 trading platforms...
Spreads
70
Liquidity
70
Commissions
70
Support
75
Regulation
90
Visit Iron FX Website
39

Liquid

Liquid
Read review
Liquid is a Japanese digital asset exchange that allows clients to trade spot, margins, CFDs, and perpetuals with multiple funding options, speedy trade execution, and deep liquidity. The Exchange was launched in 2014 and has since grown into an established crypto exchange with over 300 employees and around $50 billion processed transactions as of May...
Spreads
75
Liquidity
75
Commissions
75
Support
75
Regulation
75
Visit Liquid Website
40

ThinkMarkets

ThinkMarkets
Read review
Established in 2010, ThinkMarkets is a leading forex and CFD trading broker that provides clients in over 180 countries with access to a wide range of tradable instruments, spread across different markets, including forex, cryptocurrency, stocks, indices, metals, energy, and other commodities. The brokerage firm is headquartered in London and Melbourne but has coverage across...
Spreads
65
Liquidity
65
Commissions
70
Support
85
Regulation
90
Visit ThinkMarkets Website
41

AAATrade

AAATrade
Read review
AAATrade is a Cyprus based financial investment firm that has been offering a plethora of financial services to retail and institutional clients across the globe since 2013. They offer online trading on over 60,000 securities across forex, cryptocurrency, stocks, futures, indices, metals, options, bonds, and ETFs. The broker operates the straight-through processing model and gives...
Spreads
70
Liquidity
70
Commissions
70
Support
70
Regulation
90
Visit AAATrade Website
42

Capex

Capex
Read review
Founded in 2016 in Cyprus, CAPEX is an online trading broker that offers over 2,100 tradable assets across multiple asset classes, such as forex, commodities, cryptocurrency, stocks, indices, metals, energies, bonds, and ETFs for online trading. The broker offers competitive spreads, transparent pricing, and fast execution speeds. CAPEX has won several industry awards for its...
Spreads
70
Liquidity
70
Commissions
70
Support
70
Regulation
90
Visit Capex Website
43

Core Spreads

Core Spreads
Read review
Founded in 2014, Core Spreads is a multi-regulated online broker that offers forex and CFD trading services on powerful and advanced trading platforms, including the MetaTrader 4 platform and their own in-house developed CoreTrader Spread Trading platform. The broker offers over 1,000 instruments across multiple markets, such as Forex, commodities, cryptocurrency, stocks, indices, metals, energies,...
Spreads
70
Liquidity
70
Commissions
70
Support
70
Regulation
90
Visit Core Spreads Website
44

easyMarkets

easyMarkets
Read review
Since they commenced operations in 2001, easyMarkets has been providing flexible trading platforms, innovative features, and more than 200 global markets to clients all over the globe. They offer forex and CFD trading in currency pairs, cryptocurrency, indices, options, bonds, ETFs, metals, energies, and other commodities. easyMarkets is well-established and strictly regulated and has won...
Spreads
70
Liquidity
65
Commissions
75
Support
70
Regulation
90
Visit easyMarkets Website
45

Fortrade

Fortrade
Read review
Fortrade, an FCA regulated online broker, has been offering 24-hour trading services in hundreds of trading instruments, including Forex, commodities, stocks, indices, metals, energies, and ETFs, to over 10,000 private and institutional traders from across the globe. Founded in 2013, the broker is focused on simple and accessible trading for all, providing user-friendly platforms, such...
Spreads
70
Liquidity
70
Commissions
70
Support
70
Regulation
90
Visit Fortrade Website
46

FXGiants

FXGiants
Read review
Established in 2015, FXGiants is an online forex and CFD broker that offers retail and institutional traders all over the world access to over 200 tradable instruments in different asset classes, including forex, cryptocurrency, stocks, indices, metals, energies, and other commodities. The broker provides clients with the industry-leading MetaTrader 4 (MT4) platform, a number of...
Spreads
70
Liquidity
70
Commissions
70
Support
70
Regulation
90
Visit FXGiants Website
47

GO Markets

GO Markets
Read review
GO Markets is a leading Australian broker that was founded in 2006. They provide their 80,000+ clients across the globe access to more than 250 tradable instruments spread across multiple markets, such as forex, cryptocurrency, stocks, indices, metals, energies, and commodities. The broker offers the powerful MetaTrader 4 and MetaTrader 5 trading platforms, a selection...
Spreads
70
Liquidity
70
Commissions
70
Support
80
Regulation
80
Visit GO Markets Website
48

InstaForex

InstaForex
Read review
Established in 2007, InstaForex is a popular brand in the online brokerage industry, serving over 7,000,000 traders across the globe. They offer forex and CFD trading services in over 300 tradable instruments, spread across currency pairs, cryptocurrency, stocks, indices, metals, energies, and other commodities. The broker provides flexible trading platforms with good execution speed, competitive...
Spreads
70
Liquidity
70
Commissions
70
Support
80
Regulation
80
Visit InstaForex Website
49

KOT4X

KOT4X
Read review
Kings of Transparency (KOT4X) is an online forex, crypto, and CFD broker that provides cutting-edge technology for trading various markets, to a global clientele. They provide a secure ECN trading environment and offer 250 trading instruments across different asset classes, such as forex, commodities, cryptocurrency, stocks, indices, metals, and energies. Cryptocurrencies are available for trading...
Spreads
80
Liquidity
80
Commissions
80
Support
80
Regulation
50
Visit KOT4X Website
50

Purple Trading

Purple Trading
Read review
Purple Trading is an online broker that is regulated in multiple jurisdictions and offers multi-asset trading with reliable and transparent conditions. The broker offers forex and CFD trading in a range of instruments across different markets, such as Forex, indices, stocks, cryptocurrency, metals, energies, and other commodities. Launched in 2016, Purple Trading brings innovation to...
Spreads
70
Liquidity
70
Commissions
70
Support
70
Regulation
90
Visit Purple Trading Website

How to find the best brokers?

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 decision when choosing a forex broker. With so many forex brokers to choose from, it can seem like an overwhelming choice at first. However, there are some important factors worth considering which are listed below.

Spreads

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, usually 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.

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.

Liquidity Providers (LP’s)

Forex brokers use liquidity providers (LP’s) to provide liquidity pools to retail traders to trade on. You can check with your forex broker what LP’s they use and how many they have.

The higher the liquidity provided by the forex broker, the lower the spreads and slippage can be, this can lower your overall trading costs and also improve your trade execution speed, so you get in and out of trades at the best possible prices provided with minimal delay.

LP’s directly affect the spreads/slippage which as mentioned above are very important factors that can impact trading performance and lower trading costs.

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, you should account for commissions 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.

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.

Trading Platforms

When choosing a forex broker, you should consider the forex trading platform that they offer. By far, one of the most popular forex trading platforms 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.

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.

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.

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 more you could save in the long term.

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.

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.

Regulation

Regulation is a key factor to consider when choosing your forex broker. I always like to make sure they are regulated by a governing body such as the FCA, ASIC, CySEC, CFTC, NFA, etc. This gives extra peace of mind that they are trading with a forex broker who has their best interests in mind.

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 some out.

Some of the more recognized Forex regulators for brokers are the FCA located in the United Kingdom, the Australian Securities and Investments Commission (ASIC), CySec out of Cyprus and the CFTC / NFA in the United States if the broker is allowed to offer services to US clients.

What is CySEC Regulation?

CySEC license is one of the most recognized among regulators. CySEC is a Cyprus-based institution and is part of the EU MiFID regulation.

Included amongst the responsibilities of CySEC are the control over the Cyprus Stock Exchange, provision of licenses to brokers/investment firms and the application of sanctions if and when necessary.

Most believe that CySEC impose less stringent control over forex brokers in comparison to some other regulators which can perhaps explain its popularity amongst overseas brokers.

What is FCA Regulation?

The Financial Conduct Authority (FCA) is a UK regulator. It can be difficult for UK based forex brokers to obtain a license from the FCA thus it usually means a broker which is FCA regulated has undergone a lot of due diligence from the regulator.

The FCA will thoroughly check the activities of the broker prior to allocating any license. If the rules implemented by the regulation of the FCA are not abided to, the FCA has the rights to impose sanctions or ban further activities of the broker.

What is ASIC Regulation?

The Australian Securities and Investments Commission (ASIC) is an independent Australian governmental regulatory body. ASIC provides corporate governance to control the trading of securities and derivatives (including Forex), grant insurance and to help ensure consumer protection. ASIC is also the primary regulator of the Australian Stock Exchange.

What is CFTC / NFA Regulation?

NFA & CFTC were incorporated to help regulate the US market activity of futures, options and forex. A broker wishing to operate in the US must be licensed by NFA and CFTC as it is considered compulsory. Although the regulatory environment in the US is considered amongst the strictest there is, this helps to limit the potential forex frauds as much if not more than anywhere else.

The primary goal of the NFA & CFTC is to ensure that US forex brokers stick to the rules with the upmost openness and transparency. In the USA, any forex fraud is sanctioned very seriously.

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.

Further Reading

You may wish to read my forex broker reviews for more detailed information on each forex broker. You can also see my forex broker ratings list of all forex brokers and their rating. Happy trading!