5 Best Forex Brokers in 2021 • Indepth Review

There are a lot of factors and components involved in trading forex. Forex brokers are an important and inevitable aspect of trading the currency market. The best forex brokers provide traders with a combination of high-value trading tools, average spreads, quick and efficient trade order execution, trading environment, and competitive pricing.

Going through an extensive list of forex brokers for currency trading and other financial assets, we have evaluated and identified forex brokers with all-encompassing offers and resources that we believe would be suitable for trading forex.

What is a Forex Broker

A forex broker is a financial service institution that gives traders access to a platform to buy and sell foreign currencies and other trading assets.

As a financial market investor, a broker or an exchange platform is important as the broker. The platform connects you as an investor to the market to make investments and trade the financial market. Many brokerage companies are available to choose from but choosing a broker or platform to commit to is not an easy decision because not all exchange platforms or brokers can be considered legitimate. When researching a brokerage or an exchange platform, there are attributes to be keen on before determining which platform to commit your trust and financial capital with.

Firstly, as an investor, the most important thing while inquiring about a broker’s legitimacy and practicability is to look at the overall trading conditions and the trade executing setups. This helps to understand what it involves in terms of leverage offered, types of commissions and conditions under which fees are deducted, and other deliverables.

Available trading assets and instruments provided by brokers on their platforms are also features that need to be accessed as an investor to evaluate if they meet the investor’s requirements. A standard exchange platform is expected to be user-friendly and simple to navigate through. It should have good customer support, account supervision, security, and trade execution should be provided

In this writeup, we have discussed the best forex brokers available in the financial and trading industry. Relevant features and deliverables of each broker are evaluated extensively. The forex brokers’ review is well detailed and comprehensive to help you decide which broker to make investments easier for you.

5 Best Forex Brokers in 2021

1. AvaTrade Forex and CFD Broker – Best Overall
2. TD Ameritrade Online Forex Broker
3. XM Global Forex Broker
4. Plus500 Forex Broker
5. FBS Forex Broker

#1. Avatrade Forex and CFD Broker

Avatrade Official Link

Avatrade, also known as AvaFx, is a privately held forex and CFD broker founded in 2006. AvaFx headquarters is sited in Dublin, Ireland, including various satellite offices across Europe and the Asia-pacific region, and they are also registered with multiple jurisdictions worldwide. Avatrade, like many other forex brokers, does not accept US traders.

Regulations and Securities

The institution holds licenses and is regulated in different nations, providing its clients with the needed serenity in realizing that they are trading with a dependable and firmly established broker. AvaTrade is subject to strict adherent requirements, including handling investors’ assets, capital safety, and regular financial reporting. Below is a list of countries that Avatrade is licensed and their regulatory bodies:

• European Union
  AVA Trade EU Ltd is legally incorporated in Ireland and is regulated by the Central Bank of Ireland.
• Polish Branch
  AVA Trade EU Ltd runs a Polish Branch under the AvaTrade EU authorization, which the Polish Financial Supervision Authority validates.
• Australia
  The Ava Capital Markets Australia Pty Ltd is authorized in Australia by the Australian Securities and Investment Commission.
• International (BVI)
  Ava Trade Markets Ltd is a registered financial services company in the British Virgin Islands and is fully authorized and regulated by the British Virgin Islands Financial Services Commission.
• Japan
  Ava Trade Japan KK is licensed and regulated in Japan by the Financial Service Agency and the Financial Futures Association of Japan.
• South Africa
  As of 2016, AvaTrade is part of the South African market under the Ava Capital Markets Pty Ltd.’ Regulated by the South Africa Financial Sector Conduct Authority.
• Middle East
  Ava Trade Middle East Ltd is regulated by the Abu Dhabi Global Markets (ADGM) Financial Regulatory Services Authority.
• Isreal
  Avatrade is regulated in Israel by the Israel Securities Authority.

Charges

Some charges come with Avatrade; hence, we would discuss them in detail to be aware of and help you with unexpected charges. Avatrade fees are categorized into two types which are;

• Trading Fees
  This category includes; deposit fees, transaction fees, spread cost, currency conversion fees, and overnight funding fees.
• Non-Trading Fees
  This includes; withdrawal fees and inactivity fees.

Trading Fees

In detail, let us take a look at the Avatrade fees categorized as a trading fee;

• Deposit Fees
  There is no fee charged for deposits although, minimum levels do apply. using credit cards and e-payment methods, minimum deposit cost £100 and £500 for wire/bank transfers.
• Transaction and Commission Fee
  There are no commission fees charged, which implies that you would not be charged while placing your buy/sell orders. However, they are compensated through the market bid and ask spreads. Spreads are the differentiating value between the bid and ask price. It is from the spreads that Avatrades substitutes for transaction and commission fees.
• Spread Cost
  As said earlier, AvaTrade brings in its money off the expense of opening and closing a trade reflected in the spread.
• Currency Conversion Fee
  A limited amount of base currencies is supported by AvaTrade compared to the brokers. Hence, if you intend to own an account in other base currencies is restricted. As a result, you would be charged a currency conversion fee to make a deposit using a currency other than the one that reflects on your account.
• Overnight Funding
  This means that you would be charged for open positions held overnight (22.00 GMT). Positions held over the weekend attracted a 3-day “swap charge usually charged on Wednesdays.

Non-Trading Fees

A quick look at the non-trading fees applicable on the AvaTrade platform;

• Withdrawal Fee
  AvaTrade does not charge a withdrawal fee. However, you should be aware that your account must be verified before you can make a withdrawal from the platform. In addition, you can only withdraw funds through the original payment method used to deposit into your account. Duration of withdrawal processing varies with the methods used. The time involved is as follow;

1. Credit/Debit Cards transactions (up to 5 business days)
2. e-Wallets transactions (up to 24 hours)
3. Wire/Bank Transfers transactions (up to 10 business days)

• Inactivity Fee
  There are two lengths of time that Avatrades charges inactivity fees. If your account has stayed offline for at least 3months, an inactivity fee would be deducted from your trading account. The currency unit of the charges depends on your account’s currency base;

1. £50 (GBP account)
2. $50 (USD account)
3. €50 (EUR account)

Inactive accounts for 12 months consecutively would be charged an administration fee;

1. £100 (GBP account)
2. $100 (USD account)
3. €100 (EUR account)

Deposit and Withdrawals

The least deposit on AvaTrade is set at $100. There are no additional fees levied on any deposit nor withdrawal aside from what the deposit and withdrawal method may charge. There are different formats of making deposits and withdrawals supported by AvaTrade. Commons among them are; Neteller, Skrill, and MoneyBookers. Credit cards and Bank transfers are inclusive.

Practically, withdrawals should be made through the methods that deposits are made through, which is common among retail forex/CFD brokerages.

Account Types

There are two types of Avatrade trading accounts, which are; Retail Account and Professional Account. Each account type possesses its criteria for commissions, fees, margin calls, leverage, and account minimum deposits. Also, both account types can be used as Demo accounts and as Islamic accounts. These account types and their specific features are as thus;

Retail Account

This account is suited to beginners and traders with little or more trading experience but cannot yet be classified as professional traders.

Features of Retail Account

• $100 minimum deposit.
• 1:400 leverage.
• Fixed spread starting from 0.9pips.
• No commission trading.

Professional Account

To be classified and own a professional AvaTrade Forex trading Account, traders must have a verifiable track record of consistently profitable trading activities for 12 consecutive months, with admissible experience in the financial sector or a trading portfolio of over €500,00.

Requirements for a professional account are considered strict, but it is following the EU regulations. In addition, it also offers traders fixed spreads starting from 0.9 with no commission inclusive.

Crypto Trading

While using AvaTrade, traders should understand that there are limitations to placing trades and orders while trading cryptocurrencies. These limits vary and are subject to a reduction in times of high market volatility.

Maximum position limits on cryptocurrencies are as follow;

• BTC pairs = $600,000 maximum
• ETH pairs = $400,000 maximum
• XRP pairs = $250,000 maximum
• BCH, LTC pairs = $200,000 maximum
• ETGUSD, EOSUSD = $50,000 maximum

Demo Account

There is provision for a demo account that includes the following features;

• The provision of virtual funds enables beginner traders to develop their trading skills and gain trading experiences in a risk-free environment.
• It allows potential AvaTrade’s clients to explore their trading conditions and tools in a risk-free environment. It helps them to evaluate and compare brokers before making a final decision.
• It can also serve as an avenue for traders to test their strategies using virtual funds without the risk of losing capital.

Creating a demo account on AvaTrade can be done within a couple of minutes, and when the trader is registered, demo trading can begin as long as the trader has downloaded and installed their trading platforms on either of the following; Desktop PCs that use Linux, Windows, or Mac OS. Also, mobile devices like tablets and smartphones that run Android or ios operating systems are compatible with the platform.

In addition, traders can also use the trading platforms through their web browser.

Islamic Account

The idea behind an Islamic account is that it caters explicitly to Muslim traders who stringently adhere to the Sharia Law. It keeps its followers from paying any interest, such as; overnight fees, which is viewed as exploitive. Overnight charges are charged should a trader hold positions past trading day. Islamic account permits exceptions from such charges or interest if traders held positions for longer periods past trading hours.

AvaTrade makes it possible to own an Islamic Account as well as the ability to convert a live account to that of an Islamic account, and Muslim traders are offered additional features such as;

• Halal Gold and Silver: Muslim traders through AvaTrade Islamic account have the privilege and are given the necessary support and tools to trade Gold and Silver in a way that complies with the Islamic doctrines.
• Halal Oil trading: There is provision for Muslim traders to venture into global futures market trading as it would not result in the accrual of positive or negative swaps when using the AvaTrade Islamic account.
• Islamic forex trading: AvaTrade Islamic account is completely following Islamic rules, and Muslim traders are not charged daily swaps.
• Tighter spreads: Tighter spreads of about 0.3pips are beneficial for Muslim traders who convert their live trading accounts to Islamic accounts.

The variety given by these account types enables traders to gain access to a trading environment that is competitive and cost-effective concerning trading and non-trading costs.

Education

AvaTrade approaches education exceptionally in a serious way, and it is not difficult to see this as they have put resources into making their own “trading academy” known as “sharp trader.” The trading academy is an elite educational program, restricted for members, and its contents include;

• Tutorial videos covering various trading topics.
• Technical and fundamental analysis drafts in major currency pairs analysis by AvaTrade’s expert analyst team.
• Analytical videos.
• Variety of trading tools.

Judging from the standards of academies created by forex/CFD brokerages, Sharp Trader is considered good enough. The academy also Includes some limited research content.

Other deliverables accessible in the Sharp Trader academy includes a free eBook, more than 50 tutorial videos, and glossaries of the important economic data released and request types. These last two things are essential to comprehend and are easily misconstrued, so new traders will want to learn from these teachings.

Trading Instrument

Over 250 instruments are provided across the AvaTrade platforms. The number of currency pairs tradeable is over 60. Other instruments include; major stock indices, cryptocurrencies, commodities such as; gold, silver, sugar, coffee, bonds, individual shares, and EFTs.

Customer Support

It is encouraging to know that peradventure you require help, you will want to get hold of somebody able to assume responsibility for fixing whatever problem you have. AvaTrade’s customer service has a decent reputation because they are regulated and global forex/CFD brokerage and because native speakers give supports given in a wide assortment of languages in more than 15 distinct dialects.

Their support desk is available during trading hours, on regular working days. Primarily, if the forex market is open, AvaTrade’s support is open. Traders can contact agents or representatives at various departments various locations globally via email or telephone. Live chat is also available for use.

Pros

• Over 250+ trading instruments including.
• Continuous education offerings and great research tools.
• Tighter spreads.
• Protection of negative balance.
• 24/5 effective, accessible, and available support.
• Provisions for Islamic traders.

Cons

• Clients from the United States are not acceptable.
• Limited deposit methods compare to its competitors.
• High inactivity fee.
• No guaranteed stop loss.

Avatrade Official Link

 

#2. T.D. Ameritrade Online Broker

TD Ameritrade Official Link

The company is a forex broker that provides an electronic trading platform for traders to trade other financial assets, including; futures, contracts, options, forex, cryptocurrency, common stocks, preferred stocks, mutual funds, etc.

It was founded in 1921 as Ameritrade. It remains one of the biggest online brokers, and it has kept on expanding on its edge with beginner investors. TD Ameritrade reaches its clients or prospective clients through various social media platforms such as; Twitter and Facebook. As a member, the broker provides clients with various platforms, including its mobile app (for mobile trading), basic websites, and thinkorswim designed for focused online traders.

Charles Schwab has secured TD Ameritrade, the merger of the two brokerage behemoths would last years before it is completed. As of now, the company is operating as a separate entity; hence our review of this online broker is accessed as a stand-alone brokerage in a bid to help you ascertain if it is a right fit for your investment.

Regulations

As a US-based online broker, it is a regulated broker by top-tier authorities, including the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).

It is perceived to be secured due to its long track record. It is listed on a stock exchange, publishes its financials, and is supervised by high-ranking regulations.

Charges

The majority of forex brokers are remodeling their offerings and platforms towards zero fees trading; however, TD Ameritrade is yet to embrace not as fully as some other online brokers. Although, for the most part, the broker is on track with the industry. Instances, whereby investors are charged are;

• Portfolio Margin
• Price Improvement
• Stock Loan Programs
• Payment Order Flow
• Interest on Cash

Deposit and Withdrawal

Funding your account is user-friendly, with no deposit fee incurred. USD is the only acceptable base currency, and funding through wire transfer involves high charges.

Deposit Fees and Options

Deposit fees are not charged, and in terms of deposit options, checks, wire transfers, and ACH can be used to deposit. Clients from other locations outside the US, such as Hong Kong, Malaysia, Thailand, China, Taiwan, and Singapore, can only use wire transfers and checks.

Credit/debit cards or electronic wallets are not acceptable, and funds deposit can only be achieved from an account in your name.

ACH transfer takes 1 business day to reflect with a minimum transfer amount of $50. On the other hand, wire transfers can take several business days before it reflects.

Withdrawal Fees and Options

In most cases, withdrawal fees are not incurred except in Bank or wire transfer which would cost $25. Withdrawal can only be made to accounts in your name. ACH withdrawal takes 2 business days to reflect.

Account Types

Depending on your strategy and how you intend to approach trading, TD Ameritrade has an account that suits you. Account types offered include; Standard account, retirement account, education account, and specialty account.

• Standard Account

This is a flexible type of account that helps you gain access to comprehensive investment products, objective research, and in-built trading platforms. It could be a personal or joint account and can always be upgraded for futures, options, and forex trading.

• Education Account

An account that fosters planning and investment. It offers flexibility in terms of saving for education at any level.

• Speciality Account

Speciality accounts make arrangements for the future simple, from personal trusts and pension plans to business organizations and sole ownerships. The account entails structured features to help you succeed.

Managed Portfolios

Through this account type, you can save time and remain invested on a long-term basis with expertly managed portfolios. Choose from a suite of managed portfolios designed to help you achieve your financial needs as they develop and change.

Margin Trading

Margin trading helps you not ‘up’ your trading to another level as it allows you to lend cash from TD. Ameritrade and possibly increase your securities buying power by as much as 50%

Education

A wide range of educational resources is offered as it is believed that knowledge is an integral asset for an investor. Educational resources including; market news, articles, webcasts, and a fully immersive curriculum to guide investors and help investors become smarter with investments.

• Market News
  

  Discover what is happening in the market and follow the headlines with awareness on the economic calendar, economic indicators, earnings, trends, and more.

What’s more, start each day with daily market updates from the chief strategist, JJ Kinahan.

• TD. Ameritrade Network
  

  The TD. Ameritrade network is brought to you by TD. Ameritrade media productions company. Each of them is independent by associated auxiliaries of TD Ameritrade Holding Corporation. The Holding Corporation is an entirely owned auxiliary of the Charles Schwab Corporation. TD. Ameritrade Media Productions company is certainly not a financial advisor, registered investment advisor, or broker-dealer.

• A fully immersive Curriculum
  

  Mentors with genuine experiences will walk you through a scope of investing and trading topics to make you a more educated financial investor. The immersive courses are timely, simple to follow, and loaded with valuable information.

• Articles and Videos
  

  Over 200 instructional videos, tutorials, and investment publications are available for investors to learn with. The company possesses a robust catalog for a range of educational materials.

• Informative Webcasts
  

  With high-quality media technology, there is a provision of webcasts for investors to access. As an experienced investor or newbie, you can find a webcast that is right for you.

Webcasts are offered live so that you can get constant information from the education coach or watch recorded sessions at a convenient time.

• In-Person Events
  

  Educational seminars that can help you learn alongside other investors are organized from time to time. Events organized can help you develop as an investor and connect with other customers.

Extensive educational events are free to attend and centered around investing and trading topics that make a difference.

Trading Instruments

There is a wide variety of trading and investment choices, including stock, options, ETFs, mutual funds, futures, forex, bonds, and CDs.

Trading Platforms

The company is considered as one of the online brokers with the best forex trading platforms. Their platforms and tools are powerful and are available for traders of various levels and experiences to use. They have Web platform, thinkorswim desktop, thinkorswim web, and mobile trading.

• Web Platform
  

  The web platform can help traders to build and manage their portfolios. The platform possesses the necessary tools and resources to aid investment. It facilitates smart trading by utilizing innovative items and improve your web experiences with available intuitive components.

• Thinkorswim Desktop
  

  An expert-level trading platform for dedicated traders looking for;

1. High-level and quality tools to perform analysis and test strategies.
2. Idea generation with market scans and capacity to observe possible risk/reward.
3. Onboarding apparatuses like think Manual and tutorials to get started.
4. Completely adaptable, downloadable software.

• Thinkorswim Web
  

  A streamlined think or swim experience including;

1. An intuitive interface that puts basic tools upfront.
2. Preconfigured strategies permit you to set up trades by a simple tick.
3. Web-based/Online access with an internet connection anywhere at any time.

• Mobile Trading
  

  The company is the innovator of mobile trading with amazing mobile offerings for investors and traders that require;

1. A choice of a device-optimized mobile app, including the Apple Watch.
2. The capacity to manage investments, take advantage of chances, and many others.

Customer Support

They have experienced professionals in Singapore and the united states saddled with the sole responsibility of answering your questions about trading, the market, and your account.

The following are how you can contact support; text, email, call and visit. In the case of a visit, due to matters arising on health and well-being resulting from the current novel coronavirus, their offices are not open to visitors.

Pros

• Commission-free trading.
• High-value trading platforms
• Good customer service
• No account minimum
• Large investment selection

Cons

• Accounts restricted to US residents
• Trading only on US markets
• No fractional shares
• Cards and electronic wallets are not acceptable for money transfer

TD Ameritrade Official Link

 

#3. XM Forex and CFD Trading

XM Forex and CFD Trading Official Link

XM has over 5,000,000 clients since its inception 2009. XM has developed into an enormous and well-established global trading company and has become a genuine leader in the forex trading industry. XM forex broker has worked with over 600 professional traders with valuable and long-year experience in the financial industry.

Its broad experience combined with support from above and beyond 30 different languages makes XM broker a reliable choice for traders of all levels of trading skills and experiences. The company’s management has visited over 120 cities across the globe to connect with their clients and partners, placing value on face-to-face interaction as they believe it is a worthy and genuine style of human interaction.

They have facilitated many seminars worldwide to teach and empower traders to help them make better trading decisions. XM enjoys a significant degree of customer retention due to its refreshing ways of providing support and customer services to clients. Feet they have enjoyed over the years.

Regulations and Securities

XM is overseen by the International Financial Services Commission of Belize (IFSC), the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CSEC). In addition, there is another legal entity known as Trading point MENA limited regulated by DFSA; Dubai Financial Services Authority.

Regarding security, you can be certain of a broker’s authenticity and security judging by how you are protected if things went “south” and the broker’s background.

How Are You Protected?

XM runs several subsidiaries, which one of the subsidiaries that would serve you is dependent on your location. This is significant for you because the investor protection cost and the regulation are different depending on the entity. Below is a list of protection amounts, regulators, and legal entities in accordance to identified countries;

• Country of Clients (EEA Countries) > Protection amount (€20,000) > Regulators (Cyprus Securities and Exchange Commission (CYSEC)) > Legal Entity (Trading Point of Financial Instruments LTD).
• Country of Clients (Australia) > Protection amount (No Protection) > Regulators (Australian Securities and Investments Commission (ASIC)) > Legal Entity (Trading Point of Financial Instruments Ltd.).
• Country of Clients (Middle-East) > Protection amount (No Protection) > Regulators (Dubai Financial Services Authority (DFSA)) > Legal Entity (Trading Point MENA Limited).
• Country of Clients (Rest of the World) > Protection amount (No Protection) > Regulators (International Financial Services Commission of Belize (IFSC)) > Legal Entity (XM Global Limited).

XM also offers Negative balance protection for both EU and Non-EU customers.

XM Global Background? 

Trading Point Holdings is the private company behind XM forex broker. The company was established in 2009. It is believed that the longer the existence and track record of a broker, the more validity that it has successfully overcome previous financial crises. However, the company does not publish financial information, and it is not listed on any exchanges. This helps to foster transparency.

Charges

Practically, brokers offer elite online trading platforms and other tools such as; mobile apps, financial research tools, and educational resources.

In a bid to maintain all these services and earn revenues as an organization, brokers may charge clients different trading fees. You must be conversant of these fees. XM charges cut across the following; XM least deposit, withdrawal fees, inactivity fees, deposit fees, and CFD commission fees. Note that XM does not;

• Charge withdrawal fees.
• Charge for inactive accounts.
• Charge deposit fees.

The least deposit on XM is 5 GBP or USD when opening an XM trading account. Also, XM does not charge deposit fees. However, banks or 3rd party merchant fees may apply.

XM Deposit and Withdrawal

XM forex broker provides various online payments methods for traders to make deposits and withdrawals. Credit cards, debit cards, skrill, Neteller, bank wire, Unionpay are all deposit and withdrawal methods provided by XM on their platform.

On XM, the least deposit for MICRO and STANDARD accounts is $5, $50 for ULTRA LOW trading accounts, and $10,000 for SHARES account. On the other hand, the minimum withdrawal value amount for the XM account is associated with the type of order and not the payment method.

Step-by-step deposit procedures on XM;

• Login to your XM members account.
• Select the deposit format you wish to use.
• Type in your desired deposit amount (must be more than $5).
• Confirm amount and account details.
• Make payment.

XM Withdrawal

Firstly, before a withdrawal can be initiated on an XM trading account, such account must be verified, and the necessary know your customer (KYC) documents required by XM must be provided. This is following the various regulatory bodies’ requirements in varying countries. It is an important process to avoid money laundering.

Furthermore, there are online and offline forms provided by XM whereby member clients fill in their personal information.

Providing these details by customers helps XM to provide quality services to their customers. Unlike making deposits, there are lesser withdrawal methods on the XM platform. Withdrawal requests are processed under 24hours on working days provided that the customer has been verified and submitted all the KYC requirements. If all requirements are met, the withdrawn amount would be credited to the linked bank account often after 5 business days.

Withdrawal methods acceptable by XM are as follow;

XM card and Electronic Payment

Mastercard, Maestro, visa, electronic debit and credit cards, and visa can be used for funds withdrawal on XM. Other options include; Unionpay, Skrill, and Neteller, which are electronic payment methods used for funds withdrawal. Bitcoin is also a withdrawal option, although funds can only be withdrawn in USD, EUR, and JPY.

In order of preference, credit/debit card withdrawals are prioritized by XM, then comes Bitcoin withdrawals, follow by Neteller and Skrill withdrawals.

XM Bank Wire Transfer

Many forex traders are trading large amounts, and they prefer to make bank wire transfers to withdraw profits. The least amount allowed for placing a withdrawal to a bank account is $200. The withdrawal fee varies while using bank transfers, and it depends on the Bank selected by the trader. After the withdrawal request is processed, the amount is deposited into the bank account, usually 2 to 5 business days. Bank withdrawal on XM may be processed more slowly, but the longest period of XM bank wire transfer withdrawal is 5 days.

Account Types

There are 4 major types of accounts provided by XM. Each account has comprehensive features to cater to individual traders regardless of their trading and financial objectives. The account types are;

• Micro Account
• Standard Account
• XM Ultra-Low Account
• Shares Account

Features of each of the account are as follow;

• Micro Account

Base currencies tradeable on this account include; USD, GBP, EUR, CHF, JPY, ZAR, SGD, RUB, PLN., HUD, and AUD. Contact size; 1lot = 1,00, spreads as low a 1pip. While using MT4, there is a minimum trade volume of 0.01 lots and 0.1 lots while using MT5. Lots restriction of 50 per ticket is applicable.

• Standard Account

Base currencies include; USD, EUR, GBP, PLN, HUG, AUD, CHF, JPY, ZAR, SGD, AND RUB. Contract size; 1lot = 1,000, spread as low as 1pip. The least trade volume of 0.01 lots and a lot restriction of 50 per ticket is applicable.

• Ultra-Low Account

Base currencies incle; EUR, GBP, USD, SGD, ZAR, and AUD. Contract size as per standard ultra of 1lot = 100,000 and micro ultra of 1lot = 1,000. Spread as low as 0.6pips and a minimum trade volume on standard ultra of 0.01 lots, micro ultra 0.1 lots. Lots restriction per ticket of 50 lots on standard ultra and 100 lots on micro ultra, respectively.

• Shares Account

Minimum deposit of $10,000 and the base currency of this account is restricted to USD only. The contract is set at 1 share, and there is no leverage provided on this account. The spread is following and as per the underlying exchange. Commission charges are applicable on this account, and it ranges between @1 and $9 depending on the underlying exchange and individual share.

50 positions are the maximum open or pending order per client on this account, and the minimum trade per client depends on each share.

Regardless of the account type, some account characteristics are peculiar across three of the four account types, which are; Micro, Standard, and XM Ultra-Low accounts which are;

• $5 minimum deposit.
• Leverage depending on the rage of your account balance ($5 to $20,000; 1:1 to 1:888, $20,000 to $100,000; 1:1 to 1:200, and $100,001 and more; 1:1 to 1:1oo) and these serving as risks mitigation.
• Zero commission is charged on all three accounts.
• 200 positions sets as the maximum opening or pending order per client.
• Negative protection balance (all four account types).
• Provision of Islamic account (optional).
• The option of using hedging is provided on all three accounts.

Also, XM offers traders some benefits which are standard regardless of account type, and this forms part of XM’s excellent quality of service;

• Boundless access to either MetaTrader 4 or MetaTrader 5 forex trading platforms and expert advisors, also known as EA trading.
• Ability to trade both micro and standard lots.
• Intraday market updates with technical analysis inclusive made available to traders free of charge.
• XM demo account
• Provision of personal account manager and availability of support in multiple languages.

Education

Through its official website, XM delivers free educational courses (XM free educational courses) for beginners traders and trades who are willing to develop their trading skills. The course teaches traders various topics, from learning the basic concepts of currency exchange to the most useful technical and fundamental analysis tools.

Contents of the XM free educational courses include;

• Forex basics
• Master technical analysis
• Build a winning trading system
• Trade with excellence
• Fundamental analysis
• Major currency fundamentals

XM research and education regularly provides its members with educational materials and tools to boost their trading skills and abilities.

Some of XM research and Education deliverables include;

• Market overview
• news
• Trade ideas
• Technical summaries
• Economic Calendar
• Podcast
• XM live sessions
• Educational videos
• Forex webinars and seminars
• Trading tools
• Research tools
• MQL5
• Forex calculator

Trading Instruments

As a forex broker, XM global grants its clients access to trade the following instruments; forex trading, Equity indices C.F.D.s, Precious metals CFDs, and Energy CFDs.

Trading Platforms

The two major trading platforms available through XM are; MT4 and MT5. These platforms are accessible through various channels such as; Desktop PCs, smartphones, and tablets. They can successfully run using either Microsoft OS and iOS, and on smartphones and tablets, they can run on both iOS and Android. There are other trading platforms provided that come with unique specificities and usabilities, such as;

• XM Group metatrader 4 trading platform

• XM Group MAC metatrader 4 trading platform

• X.M. Group WEBTRADER 4 trading platform

• XM Group metatrader 4 MULTITERMINAL trading platform

• X.M. Group IPHONE TRADER trading platform

• X.M. Group IPAD TRADER trading platform

• X.M. Group DROID TRADER trading platform

All these platforms have their specific functions and depending on traders’ perspectives, and approaches to trading, each of these platforms is useable.

Customer Support

One unique feature of XM support is that the support system delivers seminars in a plethora of languages, including; English, French, German, Arabic, Chinese, Greek, Russian, Spanish, Swedish, Polish, Malay, Korean, Thai, Turkish, Hindi, Hungarian, Indonesia, Italian, and Japanese.

XM provides support through LiveChat, email, and phone calls, and all in multiple languages, which is why they have a double AA grade support rating. Online support (LiveChat/email) is available 24/5GMT, and Phone Support is also available 24/5 GMT.

Pros

• Beginners Oriented Forex Broker
  

  With a minimum deposit of $5, it makes it easy for new traders to venture into trading forex with little capital at risk.

• Education
  

  Through its educational tools and materials, XM Global educates its members to help them make better trading decisions and suitable strategies for approaching the foreign exchange market. They have facilitated more than 100 seminars. On their website, traders would gain access to trading tools, webinars, and forex market outlooks.

• Bonuses Offered
  

  XM Global is widely known for providing capital bonuses. There is also a$30 trading bonus available to new clients that they can use to trade the foreign exchange market. They offer a Two-tier bonus on your deposit, up to $5,000 (conditions apply).

• Negative Balance Protection
  

  Very few forex brokers offer negative balance protection in the case of capital loss. Hence, with negative balance protection, traders can confidently place trades even with a high risk of losing capital.

Cons

• Beginners Broker
  

  It is more of a beginner’s oriented broker and not quite attractive and structured to accommodate high volume professional forex traders/trading.

• Like many Forex Brokers
  

  XM does not accommodate clients from the US, Isreal, and Canada.

#4. Plus500 Online CFD Trading

Plus500 Online CFD Trading Official Link

Plus500 is a financial firm that serves as a platform for online trading services in contracts for differences (CDFs, which means a contract between two parties; the buyers and the sellers). It is a British International financial firm with its headquarters located in Isreal and other branches in Australia, Singapore, Bulgaria, Cyprus, and the UK. In essence, Plus500, just like other brokers, is a forum for buyers and sellers of CFDs to transact instruments like currencies, stocks, shares, and cryptocurrencies. It operates as a connector, connecting traders to the market by matching traders with potential buyers and sellers.

REGULATIONS AND SECURITIES

Brokers are financial firms responsible for receiving funds from various investors at varying capacities from different countries worldwide. This makes it important that financial organizations and agencies regulate their operations to check their excesses and ensure that, to a reasonable extent, investors’ funds are safe.

As an investor, before entrusting funds or committing to a broker, you should confirm that the broker is regulated. Plu500 is authorized and regulated by the United Kingdom’s Financial Conduct Authority. Other regulatory bodies are; the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (cySEC), the Isreal Securities Authorities (ISA), and the Monetary Authority of Singapore (MAS). Plus500 also has a spot on the London Stock Exchange, and it is also a part of the FTSE 250 index.

Upon account creation with Plus500, funds are held on separate client bank accounts following the Financial Conduct Authority’s client money rules. This is done to ensure that clients’ funds are not used for hedging. Rather Plus500 funds are used for such purposes, which reduce the risk of losing investors’ funds.

CHARGES

Plus500 does not make unnecessary charges, and it takes its remuneration from the market spread. The market spread is the differentiating value between Bid and Asking price. For example, if you place a trade on a currency pair like EURUSD at the bid price (buy rate) of 1.3878 and the asking price (sell rate) of 1.3873, the market spread of 5pips would be Plus500’s trading charges. Also, they do not charge dealing commissions, but some additional fees may be charged, and they are explained below;

• Overnight Funding
  

  This is a charge made when holding a trading position after a certain period. It is charged made to cover the cost of leverage for holding positions overnight.
  

• Currency Conversion Fee
  

  Charges made on trades involving instruments that have their currency dominated in a different currency from the one on your account are called Currency Conversion Fee.

• Inactivity Fee
  

  Plus500 cares for traders that are inactive for over 3 months. A fee of about 10USD is levied in a situation whereby a trader leaves their account dormant, and this is done to offset the cost incurred in making services available regardless of if it is used or not. Although, the charge is only made from a real money account and only when there are enough funds in the account. Simply log in to your account occasionally to avoid being charged for inactivity.

PAYMENT METHODS (Deposit and Withdrawal)

There are various options available on the Plus500 web trader for funding trading accounts. Deposits can be made through Bank Wire Transfer, Credit/Debit cards, PayPal, Skrill, and Klarna. There are no charges involved while funding Plus500 accounts, and there are deposit bonuses available provided that you use a bonus code.

• Credit/Debit Cards
  

  “Through Credit/Debit cards, the least deposit is 100EUR, and the maximum deposit is 40,000EUR. If you attempt to deposit, Plus500 will not credit your trading account until you verify your account.

• PayPal and Skrill
  

  The minimum and maximum deposit using PayPal and Skrill are also 100EUR AND 40,000EUR, respectively. To avoid authentication of your PayPal account after its actual approval, the ‘one-click payment’ should be used, and if you were not using the ‘one-click payment,’ you would be referred to PayPal’s site for each deposit.

• Klarna
  

  Through online bank transfer, the least deposit is 100EUR, and the maximum deposit is 18,000EUR. To authorize deposit using this method, click ‘make a deposit, then a new screen comes up for you to complete the deposit process.

• Bank Wire Transfer
  

  Making deposits on Plus500 through bank transfer, click the ’email me the details’ icon, and the bank transfer deposit instructions would be sent directly to your mail. The least deposit is 500EUR, and the transfer must be made from an account in your name. Funds should reflect on your trading account within 5 business days.

In the case of withdrawal, the same methods used for deposits can be used to withdraw funds. However, your accounts and payment methods must be verified before you can request a withdrawal, and it would be granted. Verification involves uploading required documents as requested by Plus500.

ACCOUNT TYPES 

• Demo account
  

  An account loaded with virtual money, provided to help traders practice their trading strategies, and it is completely risk-free. If your demo account funds drop to 200EUR or below, the system would automatically reinstate. A demo account can be opened while registering by simply clicking on ‘Demo Mode’ in the ‘select account mode,’ and you can switch from a demo account to the real account at any time and convenience. To switch, click on ‘switch to demo mode’ in the main platform screen or from the app’s menu.

• Professional Account
  

  This is a separate type of account that has different criteria for opening one. To be eligible to own a professional account, you must have had a consistent trading activity for at least 12months, a financial transaction of about 500,000EUR, and other financial activity experiences. This type of account provides traders with the privilege of using higher leverage while opening trading positions.

Education

Plus500 is uniquely unconventional as their services are more suitable for professional traders who need less guidance on FX trading. Hence, the “Traders Guide,” the broker’s education sector, emphasizes risk management. They provide videos that teach how to mitigate risks as traders best while trading.

In addition, Plus500 provides one legally required “Key Information Document” (KID) that states the basics of available trading instruments and the risks associated with trading them. The “KID” in detail has summarised all the necessary information on forex and other trading assets.

TRADING INSTRUMENTS

Over 2000+ trading instruments cut across several markets on the Plus500 platform, including forex, commodities, cryptocurrencies, stocks, shares, indices, metals, energies, options, and ETFs.

• Forex CFD. Trading
  

  The forex market is a trading instrument where traders buy and sell currencies of various countries. FX trading involves trading based on the changes of prices and exchange rates of currency pairs such as EURUSD, GBPUSD, GBPJPY, EURNZD, etc. On the Plus500 trading platform, over 70 major, minor and exotic currency pairs are available for traders to analyze and trade.

• Cryptocurrency CFD. Trading
  

  These are virtual currencies based on advanced mathematical algorithms that have gained world recognition and are used for day-to-day transactions. Cryptocurrencies can be traded as CFD on the Plus500 trading platform, and it is worthy to note that they are the first to give a platform for bitcoin trading as CFD. Cryptocurrencies have evolved, and trading cryptocurrencies has also expanded as we now have other cryptocurrencies like; Ethereum, Litecoin, and Ripple X.R.P.

• Stocks C.F.D. Trading
  

  Plus500 also uses its platform to encourage CFD stock trade from the major markets such as Germany, Uk, and the USA.  Stock trading simply implies that traders can analyze and predict prices of companies listed on the exchanges such as the London Stock Exchange, New York Stock Exchange, Tokyo Stock Exchange, and NASDAQ without owning either of these stocks.

• Options CFD. Trading
  

  Options CFD. depends on the price of an option and permits you to trade on the option’s price changes. There are options CFDs for a wide scope of fundamental resources, strike prices, and expiry dates, much like the options traded in the market. You would get the difference between the current options price and the opening options price when closing options trading positions. On the Plus500 platform, just options CFDs are accessible.

• Index CFD. Trading
  

  Most indices depend on a ‘container’ of organizational shares and the performance of a nation’s economy or industrial area. For instance, the NASDAQ100 addresses the main 100 organizations on the Nasdaq stock exchange. When you take a position on an index, you are speculating if the combined shares price of those companies would rise or fall. Plus500 provides leverage trading on the most mainstream global indices, including; USA500, US-TECH 100, UK 100, Europe 50, and France 40.

TRADING PLATFORMS

Plus500 owns their trading platform, accessible on Apple IOS, Android devices, Windows phones, Windows 10, and a web version that can run effectively using a reputable browser. The platform is easy to use, user-friendly, and accommodates traders of different trading styles, skills, and levels. It entails all the necessary details needed to execute and terminate trades, reliable notification setups, various charting tools and charts in different time frames, and multiple chart styles like candlesticks, bars, etc. Fundamental and advanced technical tools are available for use, and charts can be saved as a template that allows traders to refer to previous charts. In fundamental analysis, the platform has an economic calendar that displays news worldwide that could affect changes and movements in the market. All other necessary features needed to trade successfully are available for use just like the conventional MetaTrader 4 and 5 but, Plus500 is more modern and polished.

CUSTOMER SUPPORT

They provide top-notch customer service relations via online chats and emails. Plus500 customer service has a culture of responding to clients’ and potential clients’ questions within seconds. Their customer service has been rated excellent, with 91% of their customers ascertaining satisfaction with their services. They are available 24/7, uninterrupted.

Pros

• 2000+ accessible trading instruments.
• User-friendly and functional trading platform.
• Negative balance protection for clients’ accounts.
• Guaranteed stop-loss orders.

Cons

• Does not accept US clients.
• Independent trading platform (cannot be paired with other trading tools or trading platforms).
• Limited education and research resources.

#5. FBS Forex Broker

FBS Forex Trading Broker Official Link

A globally recognized forex broker founded in 2009 has a presence in over 150+ countries. FBS boost of about 17,000,000 forex traders and 410,000 partners and an average annual profit of clients running at $500,000,00.

FBS always seeks to provide the best customer experiences; hence, they organize seminars, providing clients with training materials, cutting-edge trading technologies and forex trading platforms, market analysis, and strategies on the foreign exchange market. FBS welcomes both beginners and professional forex traders to its platforms.

Regulations

FBS is regulated and authorized by the International Financial Services Commission (IFSC) of Belize and the Financial Sector Conduct Authority in the Republic of South Africa(FSCA). Additionally, FBS is operated by Tradestone Limited in the UK and EU, an organization regulated by the Cyprus Securities and Exchange Commission (CySEC). In Australia, FBS is run by the Intelligent Financial Markets Pty Ltd with the Australian Securities and Investments Commission Regulation (ASIC).

Charges

• Deposit and withdrawal fees following the payment methods.
• No inactivity fee.
• Overnight fees are charged.

Deposit and Withdrawal

There are various means of making deposits into trading accounts to access FBS’s forex trading platform. Credit cards, Neteller, Skrill, Visa, Bitcoin, Ethereum, BitcoinCash, tether, Litecoin, SticPay, and perfect money are various ways a client can fund trading accounts. Deposits through Credit cards, Skrill, Neteller, and wallets have no fee while, deposits through SticPay and perfect money come with some fee, usually not more than 2.5%.

Withdrawals are usually through the same methods used to fund the account. Withdrawals are processed within 48 hours, normally within the first hour, but it takes 5 to 7 days to reflect on the client account, depending on the withdrawal method. The fees charges vary. Credit card withdrawals pay $1 while other methods pay a percent between 0.5% to 3.0%.

Account Types

The company provides its clients with 5 types of accounts to choose from. Three of the accounts are commission-free. All of them allow EAs, have no requotes, and 24/7 support.

• Standard Account
  

  This account is for experienced forex traders. Standard account spreads start as low as 0.5pips. The least deposit on the account is $100, and the leverage is available up to 1:3000. It is commission-free.

• Cent Account
  

  Cent accounts are peculiar for new traders or traders who intend to trade with micro-lots. The spread starts at 1pip, and leverage is up to 1:1000 while the least deposit is $1. It is also commission-free.

• Micro Account
  

  Ideal for smaller traders and has a fixed spread that starts at 3pips. The leverage is up to 1:3000. It is a commission-free kind of account.

• Zero Spread Account
  

  This is for forex traders that prefer instant execution of trades. The least deposit to access the forex trading platform with a Zero spread is $500, and leverage is up to 1:3000. Commission using this type of account starts from $20.

• ECN Account
  

  ECN account is for highly experienced forex traders that desire access to dep market liquidity using FBS’s trading platforms. Leverage is up to 1:5oo with a minimum deposit of $1000. Spreads vary based on market conditions, and the commission is set at $6 per lot.

Education

FBS provides a forex trading course for its clients who intend to use their forex trading platform. The course content is categorized into 4 levels; Beginner, elementary, intermediate, and experienced. The course accommodates forex traders of different levels and can help beginners traders to navigate their way through becoming professional forex traders.

The course is constantly updated to meet new forex market updates and dynamics.

Trading Instruments

There is an opportunity to trade and open positions on various financial assets such as; commodities, indices, currency pairs, and stocks.

• Currency Pairs

Currency pairs are bought and sold in the forex market by traders. A base currency is the first currency in a pair, and the other currency is referred to as the quote currency. For example, if you trade on EURUSD, Eur is the base currency, and USD is the quote currency.

In addition, major currency pairs have USD and are considered the most popular in forex. Minor currency pairs do not contain USD yet remaining liquid. Also, exotic currency pairs offer wider spreads but deal with less popular and more volatile global currencies.

• Trading Platforms

3 main forex trading platforms on F.B.S.

• FBS. Trader
  It is a new trading platform designed by FBS that fosters trading simplicity and effective trading.
• MT4 Forex Trading Platform
  FBS offers metatrader4 for Windows and Mac desktop and iOS and Android mobile platforms. It ensures trading experience at your fingertips as traders can develop in their trading career and open trading positions anywhere at any time.
• MT5 Forex Trading Platform
  Inspired by MetaTrade4, MetaTrader5 is a more versatile software. It provides a broad choice of analytical tools, additional time frames, and the possibility of trading stocks and commodities other than currency pairs.

Both metatrader 4 and 5 are independent software that you can link your FBS account to. Hence, there are direct links to download and install mt4 and mt5 on your devices through the FBS official website.

Customer Support

As a forex broker, FBS allows clients to make contact via social media such as; Facebook, Telegram, and WeChat. This helps them have a direct relationship with their clients and makes it easy for them to access them.

Customer support can also be contacted through chats on the official FBS website. In addition, FBS provides Personal Account Managers for clients, which helps traders communicate directly with an FBS official.

Pros

• Commission-free trading is available.
• ECN account is available.
• Can trade on using 3 different trading platforms.
• Luxurious bonuses and promotions.
• Fast customer LiveChat service.

Cons

• A limited number of tradeable assets.
• Licenses are offshore-based.

Final Verdict on the Best Forex Brokers

Out of hundreds of forex brokers available to trade within the financial markets industry, we have selected the standouts that we believe capture all the basic forex requirements with the best forex trading offers and environment.

Choosing the right forex broker is no easy task, but you must get it right to enjoy a smooth forex and trading experience. While we can try to present the best forex brokers available, only you know your requirements. Hence, take them into account, analyze and make decisions together with our recommendations.

FAQs

Which broker is best for MT4?

Many brokers work smoothly with MT4, and you can trade forex conveniently, linking both the broker and the metatrader4 together. However, either of the brokers discussed above is recommended.

Can I use MT4 without a broker?

You cannot use MT4 without a broker. MT4 is a platform that provides technical and fundamental tools and market resources to help profitable forex analysis.

Is MT4 or MT5 better?

They both have their distinguishing features as MT4 is a platform primarily for currency trading while MT5 is broader in its scope and deliverables. MT5 provides access to trade other financial assets like trading CFDs, indices, and stocks. Hence, what is better depends on the kind of trader you are and what your broker allows you to trade.

Can you start forex without a broker?

No, you cannot trade forex with a broker. A broker serves as an intermediary between a trader and the forex market.

Which broker is the best?

The best forex broker based on critical evaluation and analysis that I would recommend is Avatrade. AvaTrade offers the best forex atmosphere in terms of tools, support, materials, usability, and it is well regulated, and capital security is guaranteed.

The post 5 Best Forex Brokers in 2021 • Indepth Review appeared first on Dumb Little Man.