Best Foreign Exchange Brokers Online
According to statistics, the global foreign exchange (Forex) market is now the most active and largest financial market in the world. If you’re looking for ways on how to earn passive income, then you should consider investing in Forex market. If you’re just starting out in the field, it is essential to look for the best one that will guide you into maximizing your earnings. We have created a list of the best foreign exchange brokers online that can jumpstart your path towards investment.
IG Group
Description
IG has been in the CFD and Forex world for over 40 years already. The company offers an extensive service reach – stock indices, cryptocurrencies, commodities, stock sectors, individual equities, and ForexForex. To date, it is the biggest CFD dealer in the market based on trading revenue. What contributed to this feat is a large number of active accounts dedicated to financial spread betting.
Pros
- Regulated by ASIC, FCA, CFTC, IIROC, and the Monetary Authority of Singapore
- No minimum size of the account
- Less expensive raw spread with an additional commission model
Cons
- Education offers are disorganized and fragmented
- The news resources and other readings are only available by launching external applications and web pages
- The hold times are long since the customer service representatives are slow to respond and not that knowledgeable with the operations.
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TD Ameritrade
Description
TD Ameritrade is a think-or-swim trading platform that allows you to trade ForexForex, just like trading futures, equities, and options. This tool supports more than 70 pairs of currency. It’s a useful feature wherein experienced currency traders can experiment with new combinations and where beginners can start their careers using the most common pairs.
When it comes to TD Ameritrade’s pricing, it’s a fairly straightforward process. There are some currency pairs where the trade commission is free but have higher spreads and can only be traded in increments of 10,000 units. Other commission pairs amount to 10 cents per 1,000 units. In this scenario, you have to make an initial deposit of $2,000 and use a minimum of $1.
Pros
- Has a lot of currency pairs compared to other brokers
- There are commission-free options
- Contains the Prophet tool, a feature which will forecast the future performance of a currency pair
Cons
- Needs to deposit at least $2,000 to start trading
- Requires a high trading amount to compensate the commission-free trading
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CMC Markets
Description
CMC Markets is a platform that provides competitive spreads through larger bet sizes and trade. This is an excellent online website for institutions and professionals that want to highlight their commitment to better Forex trading. It also gives the account holders access to free bank wire withdrawals, guaranteed stop losses, and other advanced features.
Pros
- It features realtime news that is relevant and accurate
- Has a sophisticated order type
- It offers a vast array of product catalog
Cons
- Does not offer rebates and free API interface
- It has limited security features
- There is no social trading platform
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Interactive Brokers
Description
Interactive Brokers is perfect for traders who are used to trading in high volume. Since it’s a volume-oriented platform, starters are still required to have an initial deposit of $10,000. This financial requirement ensures that those jumping on the platform are legitimate traders with the goal of profiting from this financial market place.
Just like other Forex brokers, this online site also charges a commission depending on the trade percentage you make. It uses a ladderized and tiered structure. Its base point starts when you trade less than 1,000,000,000 units a month. At this level, you will pay 0.2 basis points for commissions. Therefore, if you buy 200,000, you would have to pay $4. The higher your trade volumes are, the lower the commission will be. The lowest level is at 0.08 basis points.
Pros
- Low levels of spread markups
- Higher volume traders benefit from the tiered commission
- Excellent educational offering
Cons
- A high initial investment of $10,000
- The interface is not fit for an inexperienced trader
- Low prices are only achievable if you trade high amounts
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OANDA
Description
OANDA is one of the pioneers of the retail forex industry. The company built its branding, reputation, technology, customers, and product offerings based on its root in the academe. Now, it remains as one of only two forex-only brokers in the United States. It also caters to its services throughout Canada, United Kingdom, Australia, and Singapore.
Unlike many other brokers, OANDA does not require a minimum amount for live accounts. The company is also known for its transparency and trade execution when it comes to fees and pricing.
Pros
- Accounts can be registered and opened for as little as $1
- Offers both less expensive raw spread and traditional broker spread
- Regulated by ASIC, CFTC, FCA, IIROC, and the Monetary Authority of Singapore
Cons
- Slow customer support
- News resources and research are unorganized and scattered
- Webinars and education are fragmented
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Ally Invest
Description
Ally Invest, formally known as the TradeKing, is an excellent platform that easy-to-use and is very customizable. Its setup is ideal for both experienced and beginners alike. Depending on your capability and skills, you have the option to choose between the Live Platform and the Classic Platform.
The Classic Platform has more than 50 technical indicators and analytical tools that help track performance and plan the best strategies to execute trades. On the other hand, the Live platform has more robust and advanced features and tools that are dedicated to automating trading strategies. It’s also a more customizable program wherein you have the freedom to set it up the way you prefer.
Pros
- There are multiple platform options
- Easy to use interface
- No additional fee because the company does not require commissions
Cons
- Not all tools and features are available on the Classic Platform
- There are high spreads
- The platforms are more user-friendly for veteran traders
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XTB.com
Description
XTB has one of the best online investment interfaces out there. Its collaboration and tracking tools help the traders make better decisions in the long run.
On the right-hand side of the website, you will see an educational toolbar containing knowledge videos, recent news, and market analyses. These features will guide you into completing your trade. On the left-hand panel, you will see the latest available stocks – from foreign exchange to cryptocurrencies.
Pros
- Contains a heat map of the trading world
- Has the ability to lock in profits through the use of a bulk order
- It has a one-click system which will directly control the trading
- It features a trading calculator that will allow you to compute for your potential profit and loss before committing to a decision
Cons
- The company does not have a 24/7 customer support
- The portfolio is a little bit limited for experienced traders
- Not all website functionalities are accessible and supported on the phone application
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Nadex
Description
Nadex is a platform that allows trading in touch brackets, binary options, and call spreads for $1 per contract. However, this is a complicated process that might only be fit for expert traders. If you want to practice your skills in this kind of trading environment, Nadex also allows you to do so – by giving you a $25,000 practice fund for learning.
Pros
- Capability to open a demo account
- Works in both the mobile and browser mode
- Provides both business and personal accounts for US residents
Cons
- Charts are not capable of customization
- No desktop version
- Does not have a full-capacity customer service
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The Verdict
Among the Forex brokers online listed above, the one that stands out the most is Interactive Brokers.
It’s been in the market since 1978 and has established a credible track record. It is regulated by top-tier regulators including top-tier authorities like SEC and FCA. More importantly, they have a transparent fee structure so you know what’s going on with your money. Check out its website and work your way towards being the best Forex trader in the market.