Best Forex Brokers

When done right, forex trading can be a lucrative venture. By utilizing the principle of leverage, you can increase your profits by 100 fold, as you have the ability to trade with up to 100 more times the money than you have in your account.

Nonetheless, this also implies that you stand to lose just as much if you don’t get it right. If you are a layperson or not well versed in the trade, opening a trading account with a reputable forex trading broker is highly recommended.

This article will review three of the best forex brokers on the market today. Additionally, we will show you how to find one for yourself.

Best Forex Trading Brokers 2020

Unfortunately, not every trading broker will offer value to you.  If you aren’t sure where to start, the following are some brokers you should look into.

1.      Pepperstone

This a Melbourne-based Australian broker that provides a competitive, multi-featured trade execution via multiple platforms, including mobile devices and Meta Trader 4. In fact, you have a choice of over 150 tradable instruments across a wide range of asset classes, including cryptocurrencies, forex, metals, and other commodities.

Pepperstone allows you to execute these trades from anywhere in the globe via a wide range of account types.

To open an account with this broker, they require an AUD 200 deposit. This account is backed by a comprehensive list of funding sources, including MasterCard, Visa, Skrill, Bank Transfer, PayPal, and Neteller. Standard debit/credit deposit fees still apply – 1.8% for AUD and 3% for other currencies.

The best thing about this account is that it provides you with numerous educational resources to allow you to build your skill level so that you can recognize profit opportunities more easily.

Pros

• Provides extensive educational resources
• Has numerous tradable instruments
• Works with a wide range of asset classes
• User-friendly website

Cons

• Does not have single stock CFDs

2.      X-Trade Brokers (XTB)

This forex trading platform allows you access to a wide range of markets, including forex, cryptocurrencies, indices, shares, metals, and commodities. X-Trade Brokers trace their origin back to Poland. The company is registered with the Polish Financial Supervision Authority, as well as the Financial Conduct Authority. XTB is also publicly listed on the Warsaw Stock Exchange.

When it comes to their account fees and trading costs, they are average for the industry. XTB’s forex spreads, however, have consistently been better than average. Their platform allows access from both mobile and desktop.

Pros

• Provides you with access to over 1500 trading markets
• Registered with the FCA
• Builds your trading skills by providing you with educational material

Cons

• A relatively pricey initial investment of $250 required once you open an account

3.      XM.COM

XM is a daughter company to Trading Point Holding, which is a global CFD and FX broker that was created in 2009.

Nonetheless, XM also has a global footprint and is regulated by three separate financial authorities: the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), and the International Financial Services Commission of Belize (IFSC). This means that XM is one of the safest platforms to trade on.

XM also features some of the lowest CFD and withdrawal fees. Additionally, opening an account is fast and easy. It also comes with a variety of educational tools to help build your skills.

However, XM’s product portfolio is quite limited, as it only offers forex, CFDs, and cryptocurrency for its European clients. They also charge an inactivity fee if you do not use your account for more than 90 days.

Pros

• Easy and fast account opening
• Low CFD and withdrawal fees
• There is availability of good educational material

Cons

• Charges inactivity fee
• Limited portfolio

How to Find the Best Forex Broker

As there are numerous forex trading platforms out there, it is important that you take your time when selecting a broker. The truth is that some brokers do not look out for the interests of their clients the way others do. Consider the following factors when choosing a forex trading broker.

Trading Conditions/Fees

In addition to the initial deposit, there some other ‘hidden’ fees that some brokers charge their clients. In fact, you will be surprised to learn that there are platforms that can charge you up to 10 times more for the same trade. Therefore, check out a broker’s fees and conditions first to ensure that you are not getting the short end of the stick.

Trading Tools

The only reason you are subscribing to the services of a forex broker is for their comprehensive and insightful tools. These tools allow you to recognize profitable ventures in good time. Some platforms even allow for customization to allow you to tailor your investments to your needs. As such, check out various platforms to see which one has tools and configurations that suit you.

Regulation

Unfortunately, the market is full of unscrupulous players that will make away with your money any chance they get. Legitimate brokers are often regulated by a financial commission to allow their customers a chance at legal recourse in case of misunderstandings.

Therefore, always look to make sure that your broker is regulated by at least one international financial institution.

Reputation

The reputation of a forex broker, both precedes and follows them. This means that you should pay close attention to what other people say about a trading platform. While no broker is perfect, there shouldn’t be too many complaints about them.

Customer Support

In case anything goes wrong in your account, you need someone from the company that you can talk to. Reputable forex trading platforms provide you with competent support throughout your journey with them. Therefore, avoid dealing with companies that have no customer support system.

Education

As a beginner, you can lose a lot of money due to a lack of necessary trading skills. Good forex trading companies will provide you with comprehensive educational material to harness your skills so you can be more proficient.

Mobile-Friendly

There are times that you will need to trade on the go, perhaps following a tip, which means that you may not have time to access a computer. Good trading platforms are designed to be compatible with mobile browsers.

Conclusion

More often than not, the success of your forex trading pursuit depends on the type of broker you have. Therefore, this is not a decision that you should rush into. However, you are unlikely to go wrong with either of the brokers reviewed in this article.