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Best Forex Brokers – Pros & Cons

Forex trading is one of the most popular ways for new traders to enter the trading industry, and for plenty of reasons. The forex market is the biggest, it has the most liquidity, and currencies and currency exchange are already familiar to people. The only thing left to learn is where to start trading, and how to do it efficiently.

In tackling these issues, we can definitely recommend the best forex brokers, and point out things to keep an eye out for when choosing forex brokers or approaching trading in general. The rest is based on how well you prepare, and how much experience in forex trading you have. With that said, let us begin.

Best Forex Brokers 2021 List

First things first — if you simply want a quick list of the best forex brokers currently available on the global market, we can help you out. Here are our top 4 suggestions:

  1. eToro — Overall best forex broker 2021
  2. Capital.com — One of the best forex brokers for beginners
  3. Libertex — Among the top forex brokers that don’t have spreads
  4. AvaTrade — Professionals’ choice among forex-trading brokers
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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.

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Trading leveraged products such as CFDs involves substantial risk of loss and may not be suitable for all investors. 83% of retail investor accounts lose money when trading CFDs with this provider. Trading such products is risky and you may lose all of your invested capital.

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1.7

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1.7

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2.2

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1.9

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2.4

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3.8

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1.3

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1.7

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0.7

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30:1

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30:1

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500:1

ASIC

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% 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.

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9/10

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€100

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50

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Forex

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1.5

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0.9

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1.8

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2

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1.6

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2.5

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3.1

USD/JPY

1.1

USD/CHF

1.6

Additional Fees

Rolling fee

Conversion

0.0

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500:1

ASIC

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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.

Rating

Total Cost

€0.01

Mobile App
9/10

Min. Deposit

€20

Min. Spread

0.6 pips

Max. Leverage

20:1

Currency Pairs

100

Trading Platforms

Demo
WebTrader

Deposit Methods

Bank Transfer Credit Card Giropay Neteller Skrill Sofort

Regulated by

FCA, CySEC

What you can trade

Forex

Indices

Actions

Cryptocurrencies

Raw Materials

Average spread

EUR/GBP

1.6

EUR/USD

0.6

EUR/JPY

1.7

EUR/CHF

3.3

GBP/USD

0.8

GBP/JPY

3.2

GBP/CHF

3.8

USD/JPY

1.3

USD/CHF

1.9

Additional Fees

Rolling fee

Conversion

0.0

Leveraged

30:1

FCA

30:1

CySEC

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.77% 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.

Best Forex Brokers Reviewed

If you want to learn more about the mentioned brokers and read a detailed top forex brokers guide, we have prepared short reviews for every one of them, which should tell you all about what you might expect if you decide to join their platform. Remember to do your own research on top of these reviews, and make sure to understand all the details about each broker. Other than that, here is what you should know about them.

1. eToro — Overall best forex broker 2021

forex brokers The first on our top forex brokers list is eToro, which is likely the best one on a global scale. It is available in over 140 countries, and it has over 20 million users. On top of that, eToro’s platform is specifically designed for retail traders and made so that first-time traders can easily find their way around. Everything is available from its dashboard, it is all clearly marked, and the platform does a great job at making everything quite obvious in regards to what it is and what it can be used for.

eToro offers access to over 50 forex pairs, including major pairs, minor pairs, and even exotic pairs. It lets you make purchases and sales at zero commission, only charging for tight spreads, so you do not spend too much money by using the platform and its services. Even major pairs like USD/JPY and EUR/USD start from only 1 pip.

best forex brokers

Furthermore, all pairs can be traded with leverage, although the leverage is not the same for all pairs. Major pairs are capped at 1:30, and minor and exotic at 1:20. The caps are there because eToro is heavily regulated by some of the world’s largest regulatory bodies, including CySEC, the FCA, ASIC, and others.

If you are new to forex and you still have a lot to learn, don’t worry — you can still make a decent profit thanks to social trading. Essentially, eToro features a copy-trading tool that allows you to rely on the knowledge of professionals from the forex trading community. All you need to do is find an expert that trades in the pair(s) you are interested in, and copy their moves manually or automatically, in real-time. You will complete the trade with the same results as the expert, and if they have a reliable winning streak — so should you.

top forex brokers

eToro is also rich with other assets if you decide to expand from forex, including shares, cryptocurrencies, indices, commodities, and more, all available at zero commission. Continuing with its theme of user-friendliness, eToro also supports multiple payment methods, including credit and debit cards, bank transfers, PayPal, Skrill, Neteller, and more.

Pros:

  • Heavily regulated
  • No commission
  • Low minimum deposit of $50
  • Low minimum stake of $25 per trade
  • Tight spreads
  • Copy-trading
  • Very user-friendly
  • A variety of payment methods

Cons:

  • Only offers basic tools for analysis

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Capital.com — One of the best forex brokers for beginners

forex trading brokers Next up, we have Capital.com, which is easily one of the market leaders when it comes to CFDs trading. We stress that it offers CFDs, because all of its assets are CFDs, meaning that you can also trade CFDs of forex pairs on the platform. Of course, CFDs are different from actual forex, as you don’t actually buy and own currencies, but rather bet on the way their price will go. If you are correct, you win rewards, regardless of whether the price will go up or down. This is the advantage that CFDs have over actual assets, and why so many prefer them.

The platform offers major and minor pairs, as well as exotics. All can be traded with leverage, and the platform does not charge any commission for trades. It does have spreads, although they are rather competitive. Like eToro, it is very user-friendly, and it has a minimum deposit of only $20. Lastly, it is well-known for employing some of the best AI that assists traders with their trades and recognition of new trading opportunities.

Pros:

  • 0% commission
  • Thousands of markets are available
  • User-friendly
  • CFDs of forex, crypto, stocks, commodities
  • Multiple payment methods
  • Supports MT4
  • Offers trading with leverage

Cons:

  • No investing into assets, only CFD trading available

76.25% of retail investor accounts lose money trading CFDs with this provider.

3. Libertex — Among the top forex brokers that don’t have spreads

top forex brokers list In the third spot, we have Libertex, which definitely belongs on the list of good Forex brokers. This broker offers extremely tight spreads, and that makes it very attractive to traders who do not wish to waste money on high differences between buy and sell prices. As such, it is a great choice for day trading, allowing you to pay very little in exchange for opening and closing multiple positions per day.

However, there is a catch, as this broker does charge a small commission per slide. However, the price is very low and you are unlikely to even feel it, as the commission can be as low as 0.006%. Libertex is also good if you are after exotic pairs, offering South African rand, Turkish lira, Mexican peso, Polish zloty, and much more.

forex brokers directory

Naturally, it also has CFDs on a variety of other assets, so you can trade anything you want. Another advantage is that it is an STP broker, a heavily regulated one, at that, and it supports MT4 and MT5 integration. Its minimum deposit is $100.

Pros:

  • Tight spreads
  • Low commission
  • Minimum deposit of only $100
  • Supports MT4 and MT5
  • Offers CFDs for multiple asset types
  • Heavily regulated

Cons:

  • Another broker that only works with CFDs

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74,5% 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

4. AvaTrade — Professionals’ choice among forex-trading brokers

forex brokers guide Last, but not least, we have AvaTrade — a broker that was meant for more experienced traders, although, in theory, you should be able to find your way around and understand how to use it if you have at least some prior experience in brokers forex trading. AvaTrade is also compatible with MT4 and MT5 alike, and both platforms allow access to plenty of forex trading tools that the broker has to offer.

Many of them are quite advanced, offering technical indicators, chart drawing tools, advanced order types, and alike. AvaTrade charges no commission, but it does have variable spreads, which is typically a sign of a competitive platform. The spreads are fairly low, starting at 0.9 pips for major pairs like EUR/USD. Also, it offers many other assets that are available for trading via CFDs.

good forex brokers

Lastly, the platform is regulated in multiple jurisdictions, one of which is Japan, where it was regulated by an extremely strict FSA, which is one of the major achievements for the platform, and evidence of its quality.

Pros:

  • Regulated in multiple jurisdictions, including Japan
  • Charges no commission
  • Low spreads
  • Works with MT4 and MT5
  • The minimum deposit is $100
  • Supports CFDs for forex and many other assets
  • Offers trading with leverage

Cons:

  • Limited stock CFDs compared to competitors

71% of retail CFD accounts lose money with this provider.

Best Forex Brokers Comparison

Finally, here is a quick breakdown of the top forex brokers and what they have to offer in terms of fees, leverage, spread, and commissions.

Broker Trading commission EUR/USD spread (min) Deposit fee Max leverage for retail traders
eToro Spreads only 1 pip 0% for US traders, 0.5% for others 1:30
Capital.com 0% 0.8 pips No deposit fee 1:30
Libertex Starting at 0.006% 0 No deposit fee 1:30
AvaTrade 0% 0.9 pips No deposit fee 1:30

How to Choose The Right Forex Broker for You

The number of forex trading brokers in the world is already huge, and it is constantly growing. With that said, it is likely that none of the mentioned platforms will suit your needs, or maybe they are not available in your region. Perhaps, by the time you read this guide, a new broker takes the lead and overshadows our top picks.

If any of these happens, then you will have to make your own estimate of whether the forex broker that you are interested in is good or not. Remember that good forex brokers need to satisfy certain requirements, and right now, we will cover what those requirements are, and what you should pay attention to when researching any such platform.

Safety

Safety must always be your number one priority when it comes to forex trading brokers. Before you even think of opening an account with one of these platforms, you need to know whether or not your personal information and money will be safe in their hands. So, how can you determine if a broker is safe or not?

The first thing to check is whether or not the broker is regulated, and by which regulatory bodies. There are plenty of regulators out there, and some are more reliable and respected than others. If you see that the broker is approved by the likes of the FCA, ASIC, CySEC, or US SEC and CFTC, or FINRA, then the broker is most likely safe to use. If you find that it is regulated by a lesser-known regulator, or that it is unregulated — it is best to proceed with extreme caution, or not at all.

Fees

Next, you should consider the fees of the broker that you plan on using. Fees can come in two shapes — commissions and spreads, and usually, you won’t encounter both on a single platform, as having both would simply be too expensive for the users.

Commission

The commission is a type of fee that you pay during brokers forex trades, and they can vary quite significantly from one platform to another. Good forex brokers will try to keep them as low as possible, and eToro and Capital.com really stand out in this regard, as they offer trading at zero commission. Instead, their commission is built into the spread. However, there are brokers that offer zero spreads but may have a commission. Few platforms have both, but they tend to make both very favorable.

Spreads

Spreads are another type of fee that represents the difference between the buy and sell prices for any asset. The difference is typically very small, so this is usually favorable for retail traders who trade smaller amounts. But, as your trade grows, so does the spread, resulting in significant fees at higher amounts.

Other Forex Broker Fees

In addition to commissions and spreads, a lot of brokers will have some additional fees. For example, you may run into an inactivity fee, overnight fee, or withdrawal/deposit fees. Not every broker necessarily has all of these, and some maybe even have only one or two. eToro, for example, has a withdrawal fee, but Capital.com does not.

Trading Tools

Next, you should take a look at what trading tools are available at your broker of choice. Most brokers will have at least some tools, although they can be simple or complex, depending on who the platform is meant for — beginners or professionals.

Charting Tools

Charting tools are a must-have for every trader who relies on technical analysis. That particularly includes day-traders and all other types of traders who do not rely on fundamental analysis alone. As the name suggests, these tools are used for creating charts that may indicate the future behavior of asset prices. Charts also show price history, which is useful for making predictions based on past behavior of the price.

Copy Trading

Copy trading is a very popular feature among novice traders, as it allows them to make profits without actually having to know how to trade. Of course, if you are planning to enter the trading industry, it is always recommended that you gather the knowledge yourself, and make sure that you know what you are doing. But, if you wish to trade as you do it and earn some money, copy trading feature is your best option — much better than trying to trade randomly and hope that you don’t lose money.

Essentially, copy trading lets you find an expert trader who uses the same platform and assets that you are interested in, and then copy their moves. In doing so, you should have similar results, relative to the amounts that you use. By copying experts, you stand a much better chance of making profits before you have enough experience to trade on your own.

Leverage

Trading with leverage is another popular way to trade forex, as well as many other assets. Essentially, it means that traders get to make greater profits, even if they themselves do not have a lot of money that they are willing to put on the line. This extra capital is granted to them by the platform they trade on.

However, remember to be very careful when you trade with leverage, as the risks grow alongside the potential for rewards. The greater the leverage you use gets, the smaller your window for making an error is, and even the smallest mistakes can end up costing you your earnings — as well as your initial investment.

Financial News and Alerts

If you the kind of trader who relies more on fundamental analysis, then you should look up brokers that offer a news section, where you can quickly access all the recent developments that might affect the price of forex and other assets that you are trading. While you are at it, also check if these platforms have an alert system that could ping you when something of reference is taking place — whether via email or a push notification on your phone.

Platforms

There are several platforms that are compatible with numerous brokers, including the most popular ones — Metatrader 4 and Metatrader 5. These platforms are often supported by good forex brokers, and are well-suited for experts, offering more tools and other advantages. Apart from MT4 and 5, some brokers also support cTrader, which is very popular among traders.

Account Types

Another thing worth considering is whether or not your brokerage of choice offers multiple account types to choose from. This can be beneficial for some traders, as some of these accounts may be simpler or more complex, depending on your needs. In addition to that, they may offer benefits such as lower commission or even zero commission, while having higher or lower spreads. Definitely check if such accounts are available, and what they offer before making one.

Payments

Lastly, when checking out different brokers, remember to look into their supported payment methods. Depending on what they have on offer, they may or may not fit your needs, as some only support bank transfers and credit cards, while others might go for services like PayPal, Skrill, or others.

You may find a broker that fits your needs in all other aspects, but if you have no way to deposit and withdraw money, then it will do you little good to have everything else match your needs and expectations.

Best Forex Brokers For Beginners

Not all top forex brokers are good for beginners, which is something that you should definitely keep in mind. For example, AvaTrade is definitely one of the top forex brokers, and highly recommended. However, it is meant for professional investors, and it will probably be confusing for first-time traders.

If you are a new trader, you should go for forex trading brokers designed for beginners, such as eToro or Capital.com, both of which are rather popular, reliable, safe, rich with assets and payment methods, but also very easy to use. Plus, eToro also has copy trading and demo accounts, both of which will be very useful to those who are trying to learn the art of trading through examples.

How To Get Started With A Forex Broker

With all of that out of the way, there is only one thing left to do, and that is to open your forex broker account and start trading yourself. As part of this guide, we will use eToro.

Step 1: Open an eToro Forex Account

The first step is to open an eToro forex account, which you can do very easily, simply by logging in with your Facebook or Google. Of course, if you want, you can also create a new account from scratch. However, keep in mind that this would not let you keep your anonymity, as you still have to verify your identity in order to be allowed to trade. This is done by uploading a photo of your ID, driver’s license, or passport.

brokers forex

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Step 2: Deposit Trading Funds

forex brokers for beginners

Next up, you will have to deposit some funds that you will use for trading forex. This is also very simple to do via the “Deposit Funds” button in the lower-left corner of the dashboard, although keep in mind that some payment methods will take longer than the other ones.

Step 3: Search for Forex Trading Market

forex brokers

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Your next step is to search the forex broker’s directory and find the pair(s) that you are interested in. On eToro, you can either use the search feature at the top of your dashboard, or you can search the platform for the forex category and look up available pairs from there.

Step 4: Place Forex Trading Order

Finally, all that remains is to select one of the pairs and go to its page. From there, all you need to do is click on the trade button and fill in your trading order. This is also very quick and simple, and once you are done, check the information and the market once again, and if everything is in order — you can start trading.

Conclusion

Forex trading is extremely popular, but still very risky, and anyone wishing to join up needs to be careful and do their research. You are putting your own money on the line, and for that, no amount of preparation is too much. One of the most important things in this regard, however, is to set up an account with a reliable broker, and his guide explains all you need to know about how to recognize one, in addition to suggesting the top four ones according to our research. Hopefully, one of them will be a fitting match for your own needs.

eToro - Overall Best Forex Broker

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

What Is A Forex Broker?

A forex broker is an online trading platform that allows users to buy and sell currencies through currency pairs. They require users to open accounts and deposit money which is then used for executing orders.

How Do Forex Brokers Make Money?

Depending on the broker, forex brokers make money by charging either trading commission or through spreads. Many also have fees for deposits, withdrawals, overnight fees, inactivity fees, and alike.

What Is The Best Forex Broker?

Our research suggests that eToro is the best of the available forex brokers, overall. It is heavily regulated, it charges no commission, and even the fees it does have are fairly low and affordable.

Which Forex Brokers Accept US Clients?

US clients are usually not supported by most global brokers due to the specific US laws, but some brokers offer service to them, including eToro.

What Is Spread In A Forex Broker?

Spread is the name for the difference between buy and sell prices of assets. The bigger the gap, the more trader has to pay, which is why brokers compete to have the lowest gaps, or spreads, to attract traders.

What Forex Brokers Accept Paypal?

eToro is the best among forex brokers that accept PayPal.

About Ali Raza
About Ali Raza

Ali is an experienced writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profiled investment sites including CCN, Capital.com, BeInCrypto, Bitcoinist, and NewsBTC.

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