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Contents

Trusted Forex Broker Reviews

Not even legends in the calibre of a Larry Williams or a Martin Schwartz will have much luck in currency trading if the broker is unwilling to cooperate – it has an overwhelming role in determining what type of experience you will have as a forex trader. The lack of clear rules and precedents creates great opportunities, but also huge risks for the unprepared.
But aren’t there always two sides to a story? To help our visitors avoid the dark side of forex, we have carefully screened the best offers in the online brokerage business, and prepared a selection of some of the most reputable and efficient brokers for your exclusive benefit. If you have any plans to explore the exciting world of currency trading, we are sure that you will find our list an invaluable guide in the crowded and sometimes shady world of the forex brokers. We recommend reading our listed brokers’ review pages for user reviews, e.g. OctaFX or FXTM review page.

Safest Forex Brokers 2020

*Broker offers variable spreads which are subject to fluctuating market conditions. Spreads tend to be tight during times of deep liquidity but can also widen significantly during times of low liquidity.

Want to be featured on this broker list? Use our contact form here.

More country specific forex broker listings:

Finding the Best Forex Broker – FAQ

Finding the best forex broker for your needs takes some research. Hundreds of online brokerage firms now compete for your account, so plenty exist to choose from. Check out our recommended top list above, or read our FAQ below with excellent points to consider before choosing your broker, or see this extensive five step guide on how to choose a forex broker.

Finding the best forex broker that has a fast execution capability, a reliable trading platform and which can be trusted with your account deposit might be the first things you will want to assure yourself of. Other sweeteners can include account opening bonuses and other features like mobile trading and SMS market alerts.

Basically, you want a forex broker you can trust to handle your money and your trades so that you can get on with the business of trading forex without worries. Anyway, to make the process of finding a broker simpler, the list above covers most of the key comparison points between forex brokers so that you can be better prepared for a successful search.

In the end of this page you will find many more brokers that did not make the top list, you can still read our reviews of them and give your comments on them or share your experience from them.

But first we will go through some of the criteria and features you should look for when searching for the best forex broker for you.

Regulation

Most reputable online forex brokers take the step of submitting to regulation by one of the main financial regulatory agencies operating in their home country. Sometimes, they will even be regulated by more than one agency. Such regulation provides you with the security of knowing the broker’s operations are being overseen by an independent authority with the goal of keeping the business honest.

Is there a benefit to where a broker is located?

Location can make a big difference, especially if the regulatory regime in the country is top of the line. The most advantageous location has to be reserved for UK brokers, since London is the center of the foreign exchange business.

Forex Trading in the UK

Early in the last century, nearly 50% of the world’s foreign exchange was conducted using the Pound Sterling. Today, daily forex trading turnover in the London market represents 41% of the world, more than double that of the United States at 19%. If you choose a reputable UK broker, then you can be assured that the firm can draw upon a broad pool of experienced and professional staff in the UK.

From a regulatory perspective, UK forex brokers must also comply with one of the strictest regulatory bodies around, the Financial Conduct Authority (FCA). Once again, the pool of UK staff will be very aware of best business practices and related compliance issues, another reason to choose a UK broker, if at all possible. One must, however, be due diligent when choosing a broker that claims to have offices in London, since the marketing aspect of this location has caused many overseas brokers to set up a “shell” presence in the UK to gain your trust, but without the benefits listed above. If you prefer a UK broker, then make sure that they are headquartered in London and have a significant presence there.

Forex Trading in Australia

The Australian Forex/CFD/Cryptocurrency landscape is an intricate one, where at least three different types of brokerages peddle their services. There are unlicensed, unregulated brokerages with a global reach, whose services may indeed be accessible to Australian traders too. Then, there are financial service providers who are not based in Australia, but who are licensed by ASIC to peddle their products there. Finally, there are Australian born-and-bred operations, firmly under the authority of ASIC.

If you are looking for a forex broker in Australia or that offers services for Australians then make sure to go here.

Data Security

When you either enter or store vital personal information online, it can be subject to falling into unfriendly hands that may use it for their own personal gain. Accordingly, a top priority when choosing a broker is that they encrypt all data entered into online forms using industry standard SSL-encryption or better.

Another key issue involves the safe storage of data so that it will not be lost in case of disaster. Many online forex brokers use duplicate data farms with high security to assure the safety of your account information.

Dealing Spreads

Many day trading strategies become unsuccessful over the long term if your account does not have access to competitive dealing spreads. The spread is simply the difference between the bid price and the offer price for a particular currency pair and should be no greater than five pips in the majors and major crosses, with wider spreads often seen in the minor crosses and exotic currencies.

Commissions and Fees

Sometimes brokers are not content just to have you dealing on their spreads. In this case, they might charge a commission or fee for each transaction. Sometimes these are calculated on a per transaction basis or on a volume dealt basis. Additional fees might be involves in making withdrawals or deposits, so be sure to check that information to minimize your transaction costs.

Order Types

Most forex brokers handle the basic market, stop and limit order types. Nevertheless, some brokers also offer support for OCO (one-cancels-the-other) and trailing stops. If either of these more specialized order types would be suitable for your trading plan, then be sure that your chosen broker supports them and make sure that you fully understand the limitiation of these different order types.

Currency Pairs

Since more currency pairs often means more opportunities to profit, you will want to make sure that your forex brokers offers all of the pairs you might be interested in trading. Some traders also like to have access to precious metals like Gold and Silver, in addition to oil, especially if they will be trading the commodity currencies like AUD and CAD whose exchange rates can depend on commodity price fluctuations.

Deposit Required

Unless you are just interested in opening up a demo or practice account with the forex broker, they will usually require a minimum deposit to be made for you to get started trading forex. Often, the more money you place on deposit, the more features you have access to or the tighter your dealing spreads become. Make sure that you research the broker thoroughly before sending a deposit.

Account Types

Account types vary considerably between brokers, but most offer demo accounts for practice trading, mini accounts for newer traders with a low minimum initial deposit, standard accounts for more experienced traders with a moderate deposit, and finally VIP accounts for larger initial deposits. Here is a list of forex brokers that offers demo accounts.

Also, the features offered with each account type vary quite a bit among the various forex brokers, so be sure to see which reputable broker will offer you the best deal for the initial deposit you have available to you.

Leverage

Leverage refers to how much of a position you can control with a certain amount of funds allocated to it. Forex brokers currently offer leverage rates of as high as 500 to 1. What this means is that you can control a $50,000 trading position with just $100 allocated from your portfolio. Note that in the U.S. the maximum leverage is 50:1 for majors and 20:1 for minors.

Naturally, amplifying your risk by using leverage can result in larger gains, as well as larger losses, so be sure to use leverage wisely and avoid trading beyond your means.

Margin Requirements

Even though forex transactions are exchanges and not purchases of an asset like a stock or commodity, when the exchange rate moves, it creates credit risk for the counterparty showing a gain on the transaction. As a result, most forex brokers require that their clients place a certain amount of funds on deposit to cover such potential losses. This is known as the broker’s margin requirement.

Since margin requirements vary among brokers, you will want to make sure that the broker you choose has guidelines you can live with. Also, some brokers automatically close out trading positions when the amount of margin in your account is exceeded by trading losses, or according to other criteria, so be sure to understand such the implications of such policies for your trading business.

Trading Platforms

Most of the better forex brokers offer their own proprietary trading platforms for you to use to execute forex transactions with and to keep track of the market. These usually either take the form of web-based platforms that use access via your Internet browser or client-side platforms that you download to, install and run on your personal computer.

In addition, some brokers support independent trading platforms like the popular MetaTrader 4 platform that can be obtained free of charge and which many commercial forex trading robots are designed for.

Mobile Trading

Some forex traders require the convenience of trading and keeping in touch with the forex market via their mobile phone or other mobile device. Many brokers provide such services, so if this is important to you, check out what each broker offers in this regard and whether their software will work with your device.

Algorithmic Trading

Forex traders increasingly wish to automate their trading plans or algorithms to free up their time for other endeavors. They often do this by using a programming language to write down their decision process in an algorithmic format that can then automatically be executed by forex trading platforms that support this capability.

If you think you might want to automate your trading plan, check to see with brokers you are considering to see if they support this type of trading and how they do so.

ECN Brokers

ECN Brokers are brokers who use an Electronic Communications Network to provide price quotations and trading opportunities to their clients. The best way to picture an ECN is as an Exchange. Through an ECN, the broker puts various market participants into touch, directly. What that means is that it matches up trades so a seller will always find a buyer and vice-versa.

CFDs – Contracts for Differences

These days, CFDs are all the rage as far as online trading is concerned. These Contracts for Differences offer traders (and brokers) several advantages, which make the setup a very attractive one indeed.

A CFD is in essence a futures contract arrangement, between a broker (the CFD provider) and a trader (the client), the object of which is the difference between the current value of a traded asset (which can be just about anything, given the impressive market coverage of this financial derivative) and its value at the end of the contract. Find more information about CFD brokers here.

Market Alerts

Many brokers offers SMS or other types of market alerts to their customers. If you think this might be important to your trading business, look for this feature.

Support

Those new to forex trading will want to have better access to both dealing support and technical support. See what services each broker under consideration provides and whether it will suffice for your purposes.

Information Resources

Newer traders often require educational materials about the forex market and trading in general to get started trading forex on the right foot. If this is important to you, research what the brokers you are considering have to offer in this regard.

Also, many brokers provide sophisticated news feeds, like Reuters for example, as well as proprietary market commentary and other timely information.

Dealing Desk Access

Some traders like to speak to a personal dealer or advisor at the broker in order to obtain inside market information and advice. Others like to be able to make transactions over the telephone in a pinch. If either of these options makes sense for you, inquire with your potential brokers whether dealing desk access will be available to someone with your anticipated initial deposit.

Managed Forex Accounts

There are three types of managed forex accounts, Individual, Pooled and PAMM accounts. Here is a list of recommended managed forex accounts that offers this kind of forex accounts.

Forex Trading 101: What is FX Trading?

If you are interested in the world of trading you may find yourself wondering what is forex, and what is forex trading?

Getting started in the world of forex trading can be a daunting task. There’s an abundance of new terminology to get to grips with, and many of the ‘guides’ aimed at new traders seem to neglect the basics of exactly what forex trading is.

As professionals in the field, there is nothing we enjoy more than being able to pass on our knowledge of forex trading to others. Having become frustrated with the over-complicated nature of other material found online, our expert team has taken it upon themselves to compile a basic, practical handbook to help you to understand forex trading from the very start.

Our Forex Trading 101 guide covers everything you need to know as a first-time trader. On this page you can:

  • Learn the basics of the forex market and how it works
  • Discover the pros and cons of forex trading
  • Find out what you need in order to start trading
  • Learn how to make money trading forex
  • Register for a demo account to start practicing

What is forex?

Forex simply refers to the foreign exchange market, a market in which you can trade one currency for another. The word forex itself, which is also sometimes abbreviated to FX, is a portmanteau of the phrase foreign exchange.

One of the most unique things about the Forex market is that it’s decentralized. This means that it does not have a fixed location or an owner, and investors deal directly with each other. The decentralized nature of the forex market gives it other distinct qualities too.

Forex trading takes place around the world on a 24-hour basis during weekdays. This is very different from stock markets, which close at the end of the day. As the forex market is global, trading activity simply shifts to a different location, depending on what time of day it is. For instance, when trading finishes in New York, it begins in Sydney. Moreover, whilst the forex market is technically closed on the weekends, you will find that these down periods are very short due to the way time zones work.

Forex is also by far the largest financial market in the world, with a total trading volume of over $5 trillion per day. Ultimately, the size and scope of the forex market present you with a huge number of opportunities to trade.

What is forex trading?

Forex trading is the trading of currency within the forex market. On the most basic level, this is done through the trading of currency pairs (one currency traded for another currency). In fact, every time you take a vacation and swap your USD for the currency of your destination country or vice versa, you are participating in the forex market and forming part of the $5 trillion daily volume mentioned above.

Operating in the market as a retail forex trader is not a whole lot different. You are buying one currency at a particular price and hoping that this price then moves in your favor so you can resell it at a later date. What makes forex trading so potentially lucrative, however, is the amounts traded.

The difference in currency values is often negligible unless you are trading with large amounts. Whilst you might not make a lot of profit trading in your cash at the end of your vacation, as a forex trader you will generally trade at least one micro-lot (worth $1,000) at a time. This is facilitated by major forex brokers, who give you leverage to hold large market positions.

This effectively means that for as little as $100 in some cases, you can place trades to the value of $50,000. The market has the potential for you to grow your investment at an extreme rate.

Is forex trading regulated?

Yes. Although the forex market is decentralized, and so it does not have one particular regulatory body, it is operated in an extremely transparent manner. All major forex brokers must meet certain standards, imposed by a number of financial authorities who have established protective frameworks for traders and who monitor compliance closely.

Different regulatory bodies will be active in different areas of rules, and each has its own rules and regulations. These work to ensure that no matter what happens, your investment is used in a safe and secure manner.

Top forex brokers are typically overseen by at least one, if not several, of the following regulatory bodies:

  • NFA (National Futures Association) – US-based regulator
  • CySEC (Cyprus Securities and Exchange Commission) – The most respected regulatory body overseeing the EU area. They impose a maximum leverage of 1:30 among other rules.
  • FCA (Financial Conduct Authority) – UK-based regulatory body
  • IFSC (International Financial Services Commission) – Popular international regulatory body based in Belize which is trustworthy while possessing some more flexible regulations on things such as leverage.

How do currency pairs work?

When you trade in the forex market, you will be trading currency pairs. A currency pair is, as its name suggests, made up of two currencies. One is the base currency and one is the quote currency.

The base currency is always listed first. This is the currency which you are wishing to buy. The quote currency, on the other hand, is the currency you already have. You sell the quote currency to buy the base currency.

For example, in the EUR/USD currency pair, the Euro is the base currency and the Dollar is the quote currency. When reading this particular example market, you may see 1EUR = $1.20. This means that in order to purchase 1 Euro, $1.20 is required.

When you are trading in the forex market, you will always be trading currency pairs. There are hundreds of currency pairs to choose from, depending on your broker, though these can typically be broken down into 3 distinct categories:

  • Major Pairs – These always include the US dollar. Popular major pairs include EUR/USD, GBP/USD and USD/JPY.
  • Minor Pairs – These are also sometimes referred to as cross-currency pairs. These pairs do not include the dollar but do include one of the three main non-USD currencies (the euro, the British pound or the Japanese yen). Minor pairs include EUR/GBP, EUR/JPY, GBP/AUD
  • Exotic Pairs – Exotic, or emerging, pairs are those which involve only one major currency. For instance, USD/MXN (US dollar and Mexican peso).

Currency pairs gain and lose value due to a number of different factors, such as economic news and political announcements. This, combined with the wide range of pairs available for trading, makes the market both lucrative and accessible to traders from all over the world.

The 3 different types of forex trades

There are three main ways in which you can trade on the forex market. These are through spot trades, forward trades, and future trades.

Spot Trades are instantly delivered orders. You are buying right now at the current price available in the market, and you will take ownership right away.

Forward Trades are trades in which you agree to pay a price for a currency at a set time in the future. This time and price are binding no matter what happens in the interim and no funds are usually required until the agreed date.

Futures Trades are trades in which you buy into the market now, with an agreed date on when to sell the current position. These are usually traded as CFDs in which case ownership of the underlying asset is not transferred.

Spot trades are by far the most popular type of trade. This is due to the fact they are instant and simple. These are both important qualities in a quickly changing market like forex.

Retail forex trading, which refers to trading which is carried out by individuals, is incredibly popular. Around 5-6% of the entire forex market is made up of retail traders. That counts for around $300 billion of the market’s daily trading value.

Whilst this may seem small in comparison to the value of the complete market ($5 trillion), compare it to the daily value of the New York Stock Exchange (between $2-6 billion). As you can see, the retail forex trading industry is huge.

Why is this case? Although learning to trade forex profitably requires a lot of time and effort, and without this it can be risky, the simple fact is that there’s plenty of appealing advantages to forex trading too.

Earn extra income
Forex trading offers you the opportunity to earn extra income, provided you are suitably prepared for trading, knowledgeable about the market and remain aware of the risks. As the forex market is open 24 hours a day, trading can be done in your spare time. FX trading can be fitted to your lifestyle, not the other way around.

Start trading with ease
One great thing about forex trading is that you typically do not need huge amounts to get started. Most major forex brokers require a first minimum deposit of under $100. Learning about forex trading is similarly accessible. The internet is filled with quality forex trading guides and advice (like this very page), and your broker may even provide you with educational materials to help you improve your skills.

Adapt your trading style to suit your needs
A huge benefit of forex trading is that, wherever you turn, you are presented with a wide range of options. From choosing to trade the currencies you know well, to employing different strategies or using robots, you can always adapt your trading style to make sure you get the best results for you.

Trade wherever you want
In the past few years, forex trading has become increasingly portable. Many of the best forex brokers now allow you trade from almost anywhere, as their trading platforms are available on desktop, laptop, and mobile. You can also use mobile app to keep up to date with trading analysis when you’re on the go.

Open all hours
In addition to being able to trade wherever you like, the non-stop nature of the forex market means that you can trade whenever you like too. No matter which time-zone you’re in or whether you’re a night owl or an early bird, you can always trade at a time that suits you.

Explore a highly liquid market
Liquidity essentially describes how easy it is to sell something for cash. In trading terms, this means whether or not you can invest in an asset quickly and sell it again quickly, without impacting the inherent value of the asset. The forex market, with its huge market volume, has high liquidity. As such, there are always trades to be made and prices remain relatively stable.

What do I need to start FX trading?

As we mentioned earlier, forex trading can seem intimidating. Luckily, help is at hand. Our range of forex educational guides and material will put you in good stead to start trading effectively.

Once you’ve done your research and studied hard, you’ll be pleased to know there’s only a handful of other things you need to get started:

Capital
Of course, to start trading you’ll need some capital. The amount of capital you need, however, is reducing all the time. Top forex brokers are becoming more flexible with their minimum deposit limits, to a point where you can now get started for under $100.

Hardware and Software
Next, you’ll need to make sure you have some way of trading. Traditionally this would mean having a PC or laptop yet, thanks to modern technology, you can now easily use top trading platforms on your mobile or tablet.

A Quality Broker
Once you’ve created a convenient trading set-up, you’ll then need to choose a broker to trade with. It is important to find a broker that suits your needs perfectly. This could mean choosing a broker that offers a strong educational infrastructure, a particular trading platform or a certain range of markets. You can use our broker comparison list to help narrow down your search.

Economic Insight
Last but not least, to trade forex successfully you will need to keep up with economic and current events. There are certain tools that can help you with this, such as economic calendars and market news notifications, and these are often provided by top brokers.

You can also use trading signals or try out copy trading, where you follow the activity of successful traders, to help you to whilst you get started.

How to make money trading forex

To make money trading forex, you need to know one simple thing: when to buy and sell currencies.

Of course, this is easier said than done. To trade successfully, you must invest time in yourself and your learning before you invest your capital in the market. Profitable traders have a firm understanding of economic trades and use this to create tested forex trading strategies. A good trading strategy can help you to interpret, anticipate and make the most out of market movements.

Practice trading forex now

Once you are feeling confident in your knowledge and trading ability, registering for a forex demo account is your next step.

Demo accounts are excellent as they allow you to trade and make mistakes with virtual currency. You can trade in a completely risk-free environment, yet the software and markets will still perform exactly as they would under live conditions. This gives you a comprehensive trading experience, helping to build your knowledge extensively, for free.

Many of the best forex demo accounts, like those in the table below, also offer unlimited use periods. So, even after you start live trading, you can use your demo account for testing strategies.

Name Demo Account Benefits Demo Account Max. Trading Limit Review
XM
Unlimited usage period
Straightforward sign-up process
Flexible Trading Limits
Register for more than one demo account
Adjustable Read Review
    Practise Trading with MT4
    24/7 Customer Support

    What is forex trading?
    Forex trading is the exchange of one foreign currency for another, in a huge global market which is worth more than $5 trillion in daily volume.

    How does forex work?
    At its most basic, forex trading works by exchanging one currency for another and exploiting the change in the value of currencies to make a profit.

    Can you get rich by trading forex?
    Yes. Some of the world’s richest people are or were forex traders. These include the likes of George Soros who made the majority of his fortune trading the Great British pound.

    Is forex trading a good idea?
    Sure. If you are interested in trading and keen to learn, the forex market is the largest and most traded market in the world. Forex trading can be very profitable.

    Is forex trading legal?
    Absolutely. Forex trading is legal and very well regulated by a number of well-respected bodies all around the world.

    Video Transcription: What is Forex Trading?

    Hello there, we start today a series of video courses here on Top rated forex brokers, with the beginner’s part. The aim is to create also intermediate and advanced trading training courses, both from a technical analysis point of view and a fundamental analysis point of view, but we have to start from somewhere. And here we are with explaining ‘what is Forex trading?’, and moreover why traders are attracted to Forex trading.

    (0.35) Forex trading means that you come to a place where you buy or sell a currency, but currencies are arranged in currency pairs. You can not only buy a currency, but you can also buy currency or sell a currency based on the way a currency pair moves, and against another currency. For example, this is the Euro/USD that you see here listed on the trading platform and it is under ‘four hours’ chart. What does it mean?

    (1.05) It means that every candle that you see here, green candles or red candles on the screen, they represent four hours as a timeframe. If we want to buy the Euro/USD or to sell, for example, let’s buy at market the Euro/USD, now trading at 1.19180 – 1.19184. This is the quotation. If you want to buy you always buy it from the right side, this is called the ‘ask’ price. You buy from the ‘ask’. If you want to sell, you always sell from the left side, from the bid price.

    (1.45) When you do that, you can take a trade either based on bullishness – being bullish on the Euro means that you expect the Euro to move to the upside – or you can take a trade being bearish on the dollar – namely, you expect the dollar to move to the downside and hence the Euro/USD pair will move to the upside.

    (2.14) When it comes to Forex trading, everything relates to the number of pips that you make. A pip is the difference between the bid and the ask price. For example, now the price is 1.1918, therefore if we buy it here at 1.1918, and the market moves to the upside to 1.1980 or 1.20, the difference between the higher price and the entry price, or the exit price and the entry price, represents the profit.

    (2.54) Or, if the market moves to the downside, it represents the loss. That’s Forex trading, Ladies and Gentlemen, nothing else.

    Now imagine how this world functions, or not how it functions, but how it is organized. Imagine that this is the world. Now, every country that we have here in the world has a currency.

    (3.23) We have the USD in the United States, let’s put it here, we have the Euro in the Eurozone and so on. So, let’s actually put the Euro here as well – this will be the Euro. We also have the Japanese Yen and so on and so forth, all the currencies in the world. Now if you combine them two by two you will have currency pairs.

    (3.58) So this will be the Euro and the USD, or the Euro and the Japanese Yen, or the Japanese Yen and the Australian dollar, the Australian dollar, and New Zealand dollar, the New Zealand dollar and the Euro, the Euro and Australian dollar, and so on, you get the picture.

    When buying and selling a currency pair it means that effectively you have an opinion about how the economies – the two economies in a currency pair – evolve.

    (4.29) Because if you look at the currency pairs and how they are part of the Forex ledge board, the way it moves represents the imbalances between those two economies. The Australian and New Zealand dollar pair, for example, this one shows the weakness and the strength of an economy. As long as the AUS/NZD pair moved from 1.06 to 1.14 this can happen only in two instances.

    (5.01) Either the Australian economy outperformed the New Zealand dollar economy, or the monetary policy in New Zealand is easiest, if you want, or is not that tight like the one in Australia. The differences between the two economies, the differences between the two monetary policies, are seen in a currency and in a currency pair.

    (5.28) Traders strive to have a competitive edge or to have an educated guess about fundamental, or about technical parts, in order to interpret how the market will move. That’s what makes a successful trader.

    When it comes to Forex trading or to entering a market, you can enter a market either from a fundamental point of view – there are a lot of macro traders that look at different economic aspects around the world’s regions, around the different countries and so on, and they buy or sell a specific currency pair or a specific currency like the Euro against everything else, or the dollar against everything else.

    (6.14) Or you can be a technical trader – if you are a technical trader then you have any trading platform, like this one, that offers a bunch of technical indicators to use. If you go here to ‘add indicator’, you have indicators for everything. You have indicators for the Bill Williams indicators, you have math transform, you have momentum, which are more or less oscillators, you have trend indicators, and so on, statistical, volatility indicators, you name it, everything you need to have from a technical point of view exists in a trading platform today.

    (6.52) If it doesn’t exist it can be imported as long as you have your own indicator or technical approach.

    There are also trading theories that we will cover in these courses, like the Elliott Wave theory, the Gartley theory, the Gunn theory and so on, but in the end what matters is to answer a very simple question – which by its simplicity makes Forex trading so complicated…

    (7.24) – is the market, any market, moving to the upside or to the downside?

    (7.36) Or will it range? Because if it ranges you may have some problems, because if the market ranges and takes its time on the daily chart or on the bigger timeframes and you play a negative swap – you will learn later what a negative swap is – then the balance of your trading account will decrease, which is not something that you actually want.

    (7.58) To sum up, Forex trading, or the foreign exchange market, is the biggest financial market in the world. There is no lack of liquidity here, you can sell and buy whatever you want. You will always find someone willing to take the other side of the trade. And every day over five trillion dollars exchanges hands. This makes it not an impossible, but a difficult trading environment.

    (8:31) This makes it mandatory to understand how the market moves and what are the best approaches to technical analysis, and this is why we have created a trading academy destined to help everyone. We’ll start from scratch by explaining various concepts, technical analysis concepts, explaining a trading account, pros and cons of different brokers and trading platforms, and so on.

    (9.01) Then we will move slowly but surely into fundamental approaches. into central banking, into basic technical analysis concepts, and then to advanced stuff to see how to trade the Forex market to make a profit.

    Thank you for being here and let’s move on.

    Forex.com Review 2020

    Summary

    Recommended for forex traders looking for low fees and great research tools

    Forex.com is a global FX and CFD broker established in 2001. Forex.com is the brand name of GAIN Capital, which is listed on the New York Stock Exchange. The company is regulated by several financial authorities, including the top-tier Financial Conduct Authority (FCA) in the UK or the US Commodity Futures Trading Commission (CFTC).

    Forex.com is considered safe because it has a long track record, is regulated by top-tier financial authorities, and its parent company is listed on a stock exchange.

    Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Forex.com pros and cons

    Forex.com provides everything you need for forex trading: low forex fees, many currency pairs, and lots of technical research tools.

    At the same time, it lacks some popular asset classes, such as real stocks or bonds. Stock CFD fees are high, and the desktop trading platform is not user-friendly.

    Pros Cons
    • Low forex fees • Limited product portfolio
    • Great variety of currency pairs • High stock CFD fees
    • Diverse technical research tools • Non-user-friendly desktop platform
    Forex.com main features and highlights
    ��️ Country of regulation UK, USA, Canada, Japan, Cayman Islands
    �� Trading fees class Low
    �� Inactivity fee charged Yes
    �� Withdrawal fee amount $0
    �� Minimum deposit $50
    �� Time to open an account 1-3 days
    �� Deposit with credit card Available
    �� Depositing with electronic wallet Available
    �� Number of base currencies supported 7
    �� Demo account provided Yes
    ��️ Products offered Forex, CFD, Crypto

    Gergely Korpos

    Author of this review

    Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

    Forex.com review
    Fees

    Forex.com has low fees for forex trades and stock index CFDs. On the other hand, stock CFD fees are high and there is an inactivity fee.

    Pros Cons
    • Low forex fees • Inactivity fee
    • No withdrawal fee • High stock CFD fees
    • Low stock index CFD fees
    Forex.com fees snapshot
    Assets Fee level Fee terms
    EURUSD Low The fees are built into spread, 1.3 pips is the average spread cost.
    GBPUSD Low The fees are built into spread, 2.4 pips is the average spread cost.
    S&P 500 CFD Low The fees are built into spread, 0.4 is the average spread cost.
    Inactivity fee Low £/$/€ 15 per month after one year of inactivity

    How we ranked fees

    We ranked Forex.com’s fee levels as low, average or high based on how they compare to those of all reviewed brokers.

    To get things rolling, let’s go over some lingo related to broker fees. What you need to keep an eye on are trading fees, and non-trading fees.

    • Trading fees occur when you trade. These can be commissions, spreads, financing rates, and conversion fees.
    • Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

    In the sections below, you will find the most relevant fees of Forex.com for each asset class. For example, in the case of forex and stock index trading spreads, commissions and financing rates are the most important fees.

    We compared Forex.com’s fees with those of two similar brokers we selected, Oanda and Interactive Brokers. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of Forex.com alternatives.

    To have a clear overview of Forex.com, let’s start with the trading fees.

    Forex.com trading fees

    Forex.com trading fees are low.

    We know it’s hard to compare trading fees for forex brokers. So what we did was we compared brokers by calculating all the fees of a typical trade for selected products.

    We picked popular instruments within each asset class usually offered by forex brokers:

    • Forex: EURUSD, GBPUSD, AUDUSD, EURCHF, and EURGBP
    • Stock index CFDs: SPX and EUSTX50

    A typical trade involves buying a leveraged product, holding it for one week and then selling it. For volume, we chose a $20,000 position for forex and a $2,000 position for stock index and stock CFD transactions. The leverage we used was:

    • 30:1 for forex
    • 20:1 for stock index CFDs

    These catch-all benchmark fees include spreads, commissions and financing costs for all brokers. Let’s see the verdict for Forex.com fees.

    Forex fees

    Forex.com forex fees are low, below those of its closest competitors.

    Forex.com forex benchmark fees of a $20,000 30:1 long position held for one week

    Forex.com Oanda Interactive Brokers
    EURUSD benchmark fee $12.6 $15.9 $17.9
    GBPUSD benchmark fee $10.5 $11.9 $13.6
    AUDUSD benchmark fee $12.0 $8.3 $12.0
    EURCHF benchmark fee $4.9 $7.1 $7.1
    EURGBP benchmark fee $9.9 $10.7 $13.0

    Forex fees are built into spreads.

    CFD fees

    Forex.com has low stock index CFD fees but high stock CFD fees.

    Forex.com CFD fees for a $2,000 long position held for one week

    Forex.com Oanda Interactive Brokers
    S&P 500 CFD benchmark fee $1.9 $1.0 $3.6
    Europe 50 CFD benchmark fee $1.6 $0.9 $2.9
    Apple CFD benchmark fee $21.8 $3.5
    Vodafone CFD benchmark fee $26.0 $8.2

    Stock index CFD fees are built into spreads, while stock CFD fees are charged via commission.

    Forex.com stock CFD fee

    Market Commission Minimum fee
    US stocks $0.018 per share $10
    UK stocks 0.08% of the trade value £10

    Non-trading fees

    Forex.com’s non-trading fees are average overall. It doesn’t charge withdrawal or account fees, but a $15 monthly fee is levied after one year of inactivity.

    Forex.com non-trading fees

    Forex.com Oanda Interactive Brokers
    Account fee No No No
    Inactivity fee Yes Yes Yes
    Deposit fee $0 $0 $0
    Withdrawal fee $0 $0 $0

    Forex.com review
    Account opening

    Forex.com’s account opening is seamless and fully digital, with a low minimum deposit. On the other hand, account verification takes

    2 business days, which is not the fastest on the market.

    Pros Cons
    • Fully digital • Relatively slow account verification
    • Low minimum deposit
    • User-friendly

    Can you open an account?

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    Forex.com accepts customers from most countries, including the US. Notable exceptions include Hong Kong and New Zealand.

    What is the minimum deposit at Forex.com?

    The required Forex.com minimum deposit is $50 . This is a low amount as there are other brokers that require a minimum of $2,000 or more.

    Account types

    Forex.com provides three account types, which differ in their pricing structure and in the trading platforms available.

    Forex.com account types

    Account types Pricing Trading platforms
    Forex.com account Higher spread and no commission Forex.com’s own platforms
    MetaTrader account Higher spread and no commission MT4
    DMA account Lower spread and commission of $2 per lot per trade Forex.com’s own platforms

    When it comes to account ownership, Forex.com has additional options:

    • Individual – owned by an individual
    • Joint – owned by two or more individuals
    • Corporate – owned by a legal entity

    How to open your account

    Forex.com has a straightforward and fully digital account opening process. Online registration takes only 10-15 minutes. Our account was verified in 2 business days, which is a bit slower than at some other brokers.

    It takes four steps to open a Forex.com account:

    1. Choose whether you want to use Forex.com’s own trading platform or MetaTrader 4, a third-party trading platform.
    2. Fill in your personal and financial information.
    3. Answer a couple of questions relating to your financial knowledge and trading history.
    4. Verify your identity and residency. You can upload a national ID card, passport or driver’s license to verify your identity. Utility bills and bank statements are accepted as proof of residency.

    We ran into some problems during account verification. Forex.com rejected the uploaded proof of residency but did not tell us the reason. We think they should give more information when something goes wrong.

    Forex.com review
    Deposit and withdrawal

    Forex.com provides multiple options for deposit and withdrawal, all free of charge. However, withdrawal is not possible with some credit cards.

    Pros Cons
    • Credit/Debit card available • Problem with credit card withdrawal
    • Free withdrawal
    • No deposit fee

    Account base currencies

    At Forex.com, you can choose from 7 base currencies: EUR, GBP, USD, AUD, CAD, CHF, JPY .

    Base currencies at Forex.com vs similar brokers

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    Forex.com Oanda Interactive Brokers
    Number of base currencies 7 9 19

    Why does this matter? For two reasons. If you fund your account in the same currency as your bank account or you trade assets in the same currency as your account base currency, you don’t have to pay a conversion fee.

    A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. Revolut or Transferwise both offer bank accounts in several currencies with great currency exchange rates as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

    Deposit fees and options

    Forex.com charges no deposit fees. Besides bank transfer, you can use credit/debit cards and PayPal for deposit.

    Forex.com deposit options

    Forex.com Oanda Interactive Brokers
    Bank transfer Yes Yes Yes
    Credit/Debit card Yes Yes No
    Electronic wallets Yes Yes No

    A bank transfer can take several business days, while payment with a credit/debit card is instant.You can only deposit money from accounts that are in your name.

    Forex.com withdrawal fees and options

    Withdrawal at Forex.com is free of charge. Methods for withdrawal are the same as for deposits.

    Forex.com withdrawal fees and options

    Forex.com Oanda Interactive Brokers
    Bank Transfer Yes Yes Yes
    Credit/Debit card Yes No No
    Electronic wallets Yes No No
    Withdrawal fee $0 $0 $0

    How long does it take to withdraw money from Forex.com? Bank transfers can take 2-3 business days, while credit/debit card withdrawal can take longer, up to 5 business days.

    When we tested withdrawal, it took several weeks because we had a problem with credit card withdrawal. The reason for the problem was that Forex.com can’t send money to some MasterCard and Visa credit cards. Instead of credit cards, we had to withdraw via bank transfer, but before doing so, customer service had to add and approve our bank account. It would be great to know in advance which cards are accepted for withdrawal and which are not.

    How do you withdraw money from Forex.com?

    • Log in to ‘MyAccount’
    • Click on ‘Funding’ and then select ‘Withdraw’
    • Fill in the required amount
    • Confirm your withdrawal

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    Forex.com review
    Web trading platform

    Forex.com’s web trading platform is user-friendly and extremely customizable, with lots of order types. On the negative side, there is no two-step login and we found some bugs.

    Pros Cons
    • User-friendly • No two-step (safer) login
    • Good customizability (for charts, workspace)
    • Good variety of order types
    Forex.com platforms to choose from
    Trading platform Score Available
    Web 4.3 / 5 stars Yes
    Mobile 4.3 / 5 stars Yes
    Desktop 3.0 / 5 stars Yes

    Forex.com has two web trading platforms, Web Trader and MetaTrader 4. We tested Web Trader because it is Forex.com’s own platform, while MetaTrader 4 is provided by a third party.

    Web Trader is available only in English.

    Look and feel

    Forex.com’s web trading platform is user-friendly and looks great.

    It is extremely customizable. You can easily add, remove, or change the size and position of tabs to create your own unique trading platform. It also lets you pick between a light or dark theme and between “one-click” or “two-click” trading.

    Login and security

    Forex.com provides one-step login. Two-step authentication would be safer here.

    Search functions

    The web trading platform has good search functions. You can search by typing the name of the product you’re looking for or browsing a categorized product list.

    Placing orders

    You can use many order types, including some more sophisticated ones:

    • Market
    • Limit
    • Stop-loss
    • Trailing stop
    • One-cancels-the-other (OCO)

    If you are not familiar with basic order types, read this overview.

    There are also several order terms available:

    • Good till canceled (GTC)
    • Good till end of the day (GTD)
    • Good till time (GTT)

    Alerts and notifications

    The alert function lets you know when an asset reaches a price target. You also get a notification when your orders get fulfilled. This is a push notification, available on both web and mobile platforms. You can easily set alerts and notifications.

    Portfolio and fee reports

    Forex.com has clear portfolio and fee reports. You can find these under the ‘Reports’ tab and download them in PDF, XLS, XML and CSV.

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    Forex.com review
    Mobile trading platform

    Forex.com’s mobile trading platform looks nice and is easy to use. The search function is also great. However, there is no two-step login.

    Pros Cons
    • User-friendly • No two-step (safer) login
    • Good search function
    • Good variety of order types

    Similarly to the web trading platform, Forex.com provides two mobile trading platforms: Forex.com’s own, and MetaTrader 4’s mobile trading platform. Both trading platforms are available on iOS and Android. In this review, we tested Forex.com’s own trading platform on Android.

    Look and feel

    The Forex.com mobile trading platform is user-friendly and well designed. However, features were sometimes quite slow to load.

    Login and security

    Forex.com provides only one-step login.

    You can’t log in using biometric authentication. Offering this feature would make the login process more convenient.

    Search functions

    Search functions are good. You can search by typing the name of the asset you’re looking for or browse product categories.

    Placing orders

    You can use the following order types:

    However, we didn’t find an option to set order time limits.

    Alerts and notifications

    You can easily set price alerts on the Forex.com mobile platform.

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    Forex.com review
    Desktop trading platform

    Forex.com’s desktop platform has the same functions as the web trading platform but lags behind in user-friendliness.

    Pros Cons
    • Clear fee report • Not user-friendly
    • Good customizability (for charts, workspace) • No two-step (safer) login
    • Good variety of order types • Poor design

    Forex.com offers two desktop platforms, the Advanced Trading Platform and MetaTrader 4. Once again, we tested the Advanced Trading Platform as this is Forex.com’s own platform, while MetaTrader 4 is a third-party platform.

    Forex.com’s desktop trading platform has the same functionality as the web trading platform. For example, you can use the same order types or price alerts.

    On the downside, the desktop trading platform is less user-friendly and the design feels outdated. It was hard to navigate the platform and it felt too crammed with functions.

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    Forex.com review
    Markets and products

    At Forex.com, you can only trade with forex, CFDs and cryptos. Other asset classes, like real stocks or funds, are not available.

    Forex.com is a forex broker, also offering some CFDs. To learn more about CFDs read our CFD trading tips.

    Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

    Forex.com provides a great number of currency pairs and cryptocurrencies. The stock index, ETF and commodity CFD selections are also great. The stock CFD lineup is relatively thin, though.

    Forex.com product selection

    Forex.com Oanda Interactive Brokers
    Currency pairs (#) 84 71 105
    Stock index CFDs (#) 17 16 13
    Stock CFDs (#) 270 7,100
    ETF CFDs (#) 26
    Commodity CFDs (#) 26 31
    Cryptos (#) 8 2

    You can change the default leverage level of the products, which is great.

    Changing the leverage manually is a very useful feature when you want to lower the risk of your trade. For example, instead of trading with 5:1 leverage, you can set it to 2:1 in the case of stock CFDs. Be careful with forex and CFD trading, since the preset leverage levels are high, putting you at a high risk of losing your money.

    Forex.com review
    Research

    Forex.com has great and diverse research functions. It provides good charting tools, trading tips based on technical analysis, and high-quality market reports. On the other hand, it lacks fundamental data.

    Pros Cons
    • Good interactive chart • No fundamental data available
    • Trading ideas
    • High-quality market reports

    You can find Forex.com’s research tools on its trading platforms or on the website under ‘Market Analysis’.

    We ran into some bugs on the trading platform during our test. For example, when we opened Autochartist, it didn’t work.

    Trading ideas

    Forex.com also provides trading ideas based on technical analysis. You can find them on the platform if you click ‘Trading Central’.

    Fundamental data

    Forex.com doesn’t provide fundamental data.

    Charting

    Forex.com has great charting tools. You can easily edit and save your charts. There are

    80 technical indicators and many editing tools, such as Fibonacci retracement or trendlines.

    News feed

    Forex.com doesn’t have news feeds.

    On the other hand, there is an economic calendar, which lists upcoming macro events. When you select an event, you can view a short summary and check historical data.

    You can also read market analysis written by Forex.com’s research team. You can find these articles under the ‘Market Analysis’ tab. We liked how news articles can be filtered based on various criteria.

    Forex.com review
    Customer service

    Forex.com has great customer service on the phone. Finding live chat is a bit tricky, but responses are relevant and fast. On the negative side, email support is slow and answers aren’t always satisfactory.

    Pros Cons
    • Live chat • No 24/7 support
    • Great telephone support • Poor email support
    • 24-hour support Sunday to Friday

    You can contact Forex.com via:

    We were really satisfied with Forex.com’s phone support. They answered the phone instantly, and we got relevant answers.

    If you prefer using live chat, click ‘Chat’. It opens a chatbot, which can answer some basic questions, like “How can I deposit?”. It’s a bit more tricky if you want to talk to a real person. You have to type ‘agent’, after which the chatbot offers to connect you with a sales or support agent.

    Email response time is slow; during our test, it took 4 business days to receive a reply. The answers were not fully helpful as we merely got links to FAQ pages.

    Forex.com’s customer service is not fully 24/7, though it is available 24 hours a day from Sunday to Friday.

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    Forex.com review
    Education

    Forex.com does a great job in education, offering many ways to learn.

    Pros Cons
    • Demo account • No webinars
    • Trading platform tutorial
    • Educational videos

    At Forex.com you can learn in the following ways:

    • Demo account
    • Platform tutorial videos
    • General educational videos
    • Quality educational articles
    • Trading glossary
    • Trading knowledge quiz

    We liked the quality and structuring of the videos. You can choose from different topics, like fundamental analysis or risk management.

    The quiz and trading glossary are unique educational tools. We found them really fun and useful.

    The only thing we missed was webinars, as they are the best platform for asking trading professionals directly.

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    Forex.com review
    Safety

    Forex.com is regulated by many financial authorities, including the top-tier FCA. Its parent company, GAIN Capital is listed on the New York Stock Exchange.

    Pros Cons
    • Majority of clients belong to a top-tier financial authority None
    • High level of investor protection
    • Parent company listed on stock exchange

    Is Forex.com regulated?

    Yes, it is regulated by several financial authorities globally, such as the UK Financial Conduct Authority (FCA), or the US Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA).

    Is Forex.com safe?

    To be certain, we highly advise that you check two facts:

    • how you are protected if something goes wrong
    • what the background of the broker is

    How you are protected

    Forex.com operates several subsidiaries worldwide; which of these will serve you depends on your residency. The investor protection amount you’re eligible for depends on the country where the subsidiary serving you is located.

    For example, if you are from the UK, you will sign up with GAIN Capital UK Ltd and will be eligible for investor protection of £85,000. GAIN Capital UK Ltd is regulated by the FCA, the UK regulator.

    Not all investments are protected by SIPC. In general, SIPC covers notes, stocks, bonds, mutual funds and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

    Forex.com investor protection

    Futures Commission Merchant (FCM)

    Retail Foreign Exchange Dealer (RFED)

    Commodity Futures Trading Commission (CFTC)

    National Futures Association (NFA)

    Country of clients Protection amount Regulator Legal entity
    EEA £85,000 Financial Conduct Authority (FCA) GAIN Capital UK Ltd.
    USA No protection GAIN Capital Group LLC
    Canada $1,000,000 Investment Industry Regulatory Organization of Canada (IIROC) GAIN Capital – FOREX.com Canada Limited
    Japan No protection Japanese Financial Services Authority (FSA) Gain Capital Japan Co.
    All other clients No protection Cayman Islands Monetary Authority (CIMA) GAIN Global Markets Inc.

    Forex.com provides negative balance protection for clients belonging to GAIN Capital UK Ltd. for forex spot and CFD trading, but only for retail clients from the European Union. Professional and non-EU clients are not covered with any negative balance protection.

    Background

    Forex.com is a brand of GAIN Capital, a US-based investment company. This is important as a strong parent company lowers the chance that the company will go bust.

    GAIN Capital is also listed on the New York Stock Exchange. It is a big plus for safety as Forex.com releases financial statements regularly and in a transparent manner.

    Forex.com was established in 2001. The longer the track record of a broker, the more proof we have that it has successfully weathered previous financial crises.

    Having a parent company listed on a stock exchange, providing financial statements, and being regulated by top-tier authorities are all great markers of Forex.com’s safety.

    Forex.com review
    Bottom line

    Forex.com is a great forex broker regulated by several financial authorities, such as the UK FCA or the US CFTC.

    On the positive side, it has low forex fees, many tradable currency pairs, and high-quality research tools.

    It has some drawbacks though. Popular assets, like real stocks or bonds, are not provided. Stock CFD fees are quite high, and the desktop platform is not easy to use.

    Since no withdrawal fee or inactivity fee kicks in until after one year, feel free to try Forex.com today.

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    69% of retail CFD accounts lose money

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