So you are looking to compare forex brokers, no doubt you are looking for a forex broker comparison which will help you find who has the best forex spreads and forex leverage. We can help! We have done extensive research of the major forex brokers to bring you a set of results with customisable comparisons between brokers. Use our tool below to make a quick comparison between two forex brokers to see who has what rates and fees. Over on the right of the screen, you will see two drop-down fields. Select the brokers you want to compare. See our full list of broker comparisons here.
There is a huge variety of forex trading platforms available online, and all of them offer something a little different. Taking a recommendation from someone else, even someone you trust completely, can backfire, as their circumstances may be completely different from yours. They may have a very different amount of money to invest, and a different appetite for risk, for example. By carrying out your own forex brokers comparison, you can focus on the aspects of the broker that matter to you.
While you will want to read some broker reviews to get an idea of what each forex broker offers, you will also reach a stage where you want to be able to easily look at specific aspects of the brokers you are considering, side by side. We have made it easy to compare forex brokers directly, side by side, with our Compare brokers tool. This tool gives traders the ability to directly compare two brokers, serving them a table of broker features, including things such as the minimum deposit, fees and leverage offered. Below are some of the things that might matter to you as a trader, and that you can check out with our broker comparison tool.
Each broker will specify how much money you need to deposit when you open your trading account. A few brokers have no minimum deposit requirement. Some have a very low deposit of as little as $5 or $10. Others require $500 or more. Generally speaking, beginner traders like to start small, so beginners will benefit from finding a broker with a low minimum deposit, whereas experienced traders with thousands to invest will not care if the deposit requirement is considerably higher.
Be aware that the lowest stated deposit requirement at any broker will be for the lowest account level, which is generally aimed at beginners and sometimes lacking some of the features included with the more advanced account types.
Many brokers do not charge withdrawal fees, and some will only charge if certain methods are used to process the withdrawal. Extra ‘hidden’ fees are never desirable, so you will generally be looking for a broker that does not levy any kind of withdrawal fee, or, of course, one that does not charge a fee for the withdrawal method you plan to use.
Some brokers charge a monthly inactivity fee if you do not place a trade for a while. This could be three months, six months or a year. Beginner traders should avoid brokers with inactivity fees if possible as they will not know how active they will be.
If you are trading with leverage, you will want to know exactly how much you are likely to be offered at the brokers you are considering. Leverage allows you to trade with more money than you actually have in your cash balance, which can lead to both bigger profits and bigger losses. While experienced traders may choose to trade with high levels of leverage, it is advisable for beginners to keep leverage low.
Spreads are effectively the difference between the bid/ask price on any particular asset, and this is where most brokers make their profit, especially if they do not charge a per-trade commission or fee. You should look for lower spreads as this will increase your potential for profit.
Some brokers offer a few hundred instruments, and others offer thousands, across many asset classes. Generally speaking, a higher number of instruments is desirable, as it offers more opportunities for diversification and different types of investment in the future. However, the important thing is always that the specific instruments you intend to trade are on offer.
While newer brokers may be perfectly legitimate, many traders like to pick a more established broker with a solid history and track record. Therefore, the year that a firm was founded may be of interest to you.
Few traders want to wait too long once they have decided to open an account, and most brokers are pretty efficient, ensuring that their account is up and running within one or two business days. Some can take longer, however, and you may want to avoid them if you are eager to get started.
Beginner traders can really benefit from a demo account as it will allow them to get a feel for the platform and practice trading without risking real money. Even experienced traders use demo accounts sometimes to try out new trading strategies and see if they would theoretically result in a profit.
We advise all traders, and especially beginners, to choose a broker that is fully licensed and regulated, preferably in their own country or region of residence. This means that you can be sure that the correct oversight is in place and makes it easy to lodge a complaint should it ever become necessary. You should make sure that your broker is overseen by a well-respected body such as the FCA or CFTC.
Many forex brokers are actually multi-asset brokers offering a range of different products such as forex, CFDs, stocks, commodities, energies, precious metals, equity indices, ETFs and cryptocurrencies. The range of products offered may or may not be of relevance to you, but again, if you want to diversify your investments in the future, then the wider the range of options on offer, the more opportunities you will have.