In this guide we offer technical explanations and opinions about the best regulated and reliable Forex brokers for online trading.
Most Forex brokers also offer CFD and cryptocurrency trading (Availability subject to regulations). In this case we can also call them CFD brokers. Do you want to find out which are the best? We will talk about them in this article.
There are many traders who, before starting to operate with an online trading platform (or any broker for scalping or, in any case, brokers with low spreads) are looking for information on this, also due to some metropolitan legends about Forex.
How many times have you heard that you should be an expert operator to manage financial losses, and consequently Forex trading is not suitable for all investors? It is not exactly like that.
What is a Forex broker?
A Forex broker is a financial intermediary, a trading company that carries out financial transactions on behalf of third parties. The Forex brokers that you will find in this guide are all certified and authorized; most of these have in fact a license to operate granted by CySEC (Cyprus Securities and Exchange Commission), according to also to MiFID II directives.
Forex Brokers: the financial leverage
The financial leverage is nothing more than a useful tool for the trader to carry out trading operations with a smaller amount of money invested. When you hear about max leverage, we will mean the maximum leverage value.
Leverage changes according to the country in which you operate; by this we mean that if you operate, for example, in the United States, this is equal to the 50:1 ratio established by the law, while if you operate in Europe, it is possible to exploit it up to 400:1 for professional traders, while for retail traders the maximum is 30: 1.
In fact, ESMA has established limits on leverage for all retail customers.
So from now on, when you hear about leverage above 30:1, we are only targeting professional traders. All European CFD brokers must follow these rules.
Keep in mind that, if the leverage multiplies the possibility to make profits, it also multiplies the possibility to suffer losses. So you have to pay attention to this aspect.
To better understand the concept, we will give an example because this is a very important topic.
Let’s suppose we select 100:1 leverage and we invest € 1.
With a leverage of 100:1 we invest 1 Euro but we open a position € 100. All profits and losses must be related to this last figure and not to the money we have invested. In this way, if the direction is not what we hoped for, we could lose the invested capital.
The demo account of Forex Brokers
The Forex demo account is a type of free account granted by Forex brokers to all traders to gain trading experience.
To benefit from the demo account of CFD brokers and to trade without money, many Forex brokers require only a few information and often it is also free!
There are different types of demo accounts, also based on the chosen Forex broker, and therefore we can distinguish between the free demo accounts in unlimited version and the free limited-time demo accounts.
In both cases, the demo accounts reflect in all respects the real account, both in terms of the trading platform, and also considering the available Forex assets or strategies.
Forex Brokers: minimum deposit
It represents the minimum amount that the Forex trader must pay to open a real trading account, or the first payment to be made.
Some Forex brokers offer a very low minimum deposit, such as IQ Option (€ 10), others require a higher, but never excessive, deposit.
Regulated and reliable brokers
Today operating with regulated and reliable brokers means minimizing all risks, thanks to minimum deposits or demo accounts, although it is true that online trading is not suitable for everyone.
Through the Forex demo account without deposit it will be possible to do online trading, operating withtout risking your own money.
If you have savings and want to make a safe investment, therefore start to get a financial culture on guides like Meteofinanza.com or also thanks to the free webinars offered by the Forex brokers themselves.
In fact, there are some platforms that offer the possibility to open an account even with a low minimum deposit, of only € 100 and then there are also traders who prefer to open accounts with a larger deposit.
Therefore the choice of a Forex trading broker, based on the features it offers, is really important.
Thanks also to the demo account offered by most of the Forex brokers, today it is possible to do Forex trading without testing its services and strategies, without risking money and, above all, learning first to understand how to use Forex Trading and then to understand how to adopt the best Forex strategies.
Thanks to these systems we can say that Forex trading is suitable for all traders, even beginners. Online brokers allow all traders to trade from home (with the best trading apps even on mobile) without going to any local branch.
|Broker||Minimum deposit||Leverage||Minimum spread|
|eToro||$ 200||1:30||2 pips|
|IQ Option||€ 10||1:300*||Fixed or variable|
*only for professional traders. 1:30 max for retail traders.
Best Forex broker forum
Traders often look for the most important terms in the forums. Today we want to help you and explain some concepts that it is good that you know. A very important concept connected to Forex brokers is that of spread.
In the Forex trading market, online brokers usually do not charge commissions for opening and closing individual transactions.
This is certainly an advantage because commissions often risk being somewhat onerous if many operations are opened and closed (especially for day trading or scalping).
But Forex brokers have to earn somehow, right?
And that’s why we have to introduce the concept of spread: the spread is the difference between the buying price and the selling price.
This difference, which is calculated in pips, equates to the profit of the Forex broker.
But what is a pip? Simple. A pip is the minimum change that can occur in a currency pair. Let’s clarify everything with an example.
Let’s consider the EUR / USD currency pair, which is currently traded at 1.1233.
A pip equals the minimum change in this pair, which is 0.0001.
If EUR / USD changes by 1 pip then it means that:
- If it increases, it foes from 1.1233 to 1.1234
- If it decreases, it goes from 1.1233 to 1.1232
So if we say that the EUR / USD has increased by 18 pips, it means that it has gone from 1.1233 to 1.1251.
On the other hand, if we say that the EUR / USD has decreased by 124 pips, it means that it has gone from 1.1233 to 1.1109.
And as we said, the spread is calculated in pips (the difference between the buying and selling price).
But how do brokers make money through the spread?
Whenever you trade, there is someone who buys and someone else who sells.
If the Forex broker is a Market Maker (as many are) it means that we are in the operation with the broker on the other side.
So if we buy, the broker sells; if we want to sell, then the broker will buy.
The Forex broker then gains the spread in every trade we do on its trading platform.
It is good to specify that there are two types of spreads, which vary according to the chosen Forex broker.
- Fixed spread: it means that the broker applies a spread that theoretically does not change. It is not a constantly changing spread, but in certain market phases it can be changed and fixed at other levels;
- Variable spread: it means that the broker applies a variable spread depending on market conditions. It can therefore happen to receive advantageous spreads, even lower than fixed ones. But also the opposite, or higher spreads, greater than the fixed ones. This type of spread is constantly changing.
Forex Brokers for scalping
To start trading with the best Forex brokers just follow simple steps such as the ones that we will indicate below.
- The first step is to register on the chosen broker. We always remind to use safe, regulated and authorized Forex brokers.
- After this, you can make the first deposit whether it is a demo account or a real account.
- Start operating with the chosen Forex broker.
Some Forex brokers are currently lowering the minimum deposit threshold, so it is much simpler for all traders to start getting some experience.
As usual, the advice applies: “invest a sum that you can afford to lose”.
That is, an amount that does not affect your financial stability.
To date, the minimum deposit of most Forex brokers is € 100 and the services provided with these types of accounts are truly amazing, even in terms of currency pairs, reaching up to 30, 50 or even 60 pairs with the demo account.
Having said this, let’s analyze what scalping is.
Those who do scalping practice a series of very fast trading techniques with the aim of earning from small trend movements.
The trader who does scalping, defined as a scalper, performs numerous trading operations every day aiming to earn on quantity, not quality.
A scalper can even open a hundred (and more!) positions on the Forex market every day, precisely because its profits derive from the short movements of the trend (we are taling about a few pips of profit for each operation).
The main difficulties for this type of operation are related to:
- speed of execution of the orders: slowdowns in placing orders with the Forex broker can cause problems in the correct execution of scalping techniques;
- high spreads that exceed even 1 pip: scalpers aim to earn a few pips with each operation, therefore it is essential that the spreads are as low as possible;
- time to dedicate and stress: scalpers have to spend whole days in front of their computers, just to take every single possible trading opportunity. Scalping can therefore be stressful, especially if you have never traded online before.
If you have just started with Forex trading, perhaps it is better to start with another more “peaceful” trading style, like intraday trading.
In intraday trading, as you may guess, traders aim to trade during the day: it means that they open and close all positions within a day, without ever leaving them open at night.
In this case, it is not necessary to spend the whole day in front of a screen, also because the number of operations to be opened is much lower than with scalping.
Indicators for Forex scalping
There are very few indicators suitable for scalping.
Those who try to convince you of the opposite are only trying to sell you paid products and we also explain why.
Oscillators or trading indicators in most cases are always and only based on historical data, therefore they are not updated.
Since the scalper cannot allow delays, there are currently no important oscillators suitable for this.
But there are exceptions, as for everything.
In this specific case, therefore, we recommend using Pivot Point and supports and resistances, since they are not oscillators and we cannot consider them as tools that provide delayed information.
Tips for Forex scalping
Here are some useful tips to do Forex scalping in a simple and fast way:
always set a Stop Loss and a take profit;
don’t mediate positions
- exit the trend early in the event of opposite positions;
- exit the market if the price does not overcome a certain support and / or resistance;
- use time frames between M1 and H1;
- take advantage of the underlying trend on longer time frames;
- try scalping trading through a demo account;
- check the spread applied by the Forex broker in the moments of greatest volatility;
- check the methods and speed of order execution;
- follow the prices applied by the Forex broker;
- test platforms with 24-hour access.
We also consider it necessary to make a clarification regarding scalping trading.
In fact, some Forex brokers prohibit this activity because, since the trader gets to close more than 200 positions a day, this could be considered as a manipulative manoeuvre of the market.
For this reason many brokers don’t allow it.
ECN Forex Brokers vs Market Makers Brokers
When we choose the type of Forex broker, we can choose between 2 different types:
- Market makers brokers;
- Electronic Communications Network (ECN) brokers.
We can find the substantial difference in the charges.
In the first case, we talk about Market Makers brokers, therefore Forex brokers gain a percentage of the spread, or the difference between the purchase price and the sale price.
The spread in these cases is not fixed, but varies continuously.
It is therefore necessary to keep in mind that some fraudulent market players manipulate the spread to get a greater gain.
In the second case, however, when we deal with ECN brokers, these are much more respectable as they make the trader pay a commission for each transaction. Most ECN brokers can be considered brokers with low spreads, because their earnings derive from the commissions.
So the trader will know in advance how much that transaction will cost and the brokers have no incentive to manipulate the bid-ask spread.
Our advice is to make sure you read carefully all the warnings before opening a new account with a Forex broker, so that you can know which broker you are going to trade with.
Furthermore, another very important factor is regulation.
Let’s see why. Before selecting a new Forex broker, you should carefully read not only all the disclosure notices, but also consider the financing and payment options, together with all associated expenses and interest.
This is very important.
In fact, withdrawing money is much more complicated than depositing it, also because if it is an unregulated Forex broker then it is possible that it is a real scam.
Since withdrawing money takes several days, money should not be invested in the account unless strictly necessary for short-term transactions.
Another aspect not to be underestimated is also related to the interests; these may vary according to the transactions, or to the trading operations, based on the fact that these are carried out during the day or night.
In the case of overnight trading operations, these will be subject to interest. Forex brokers can also charge other fees, including money transfer fees or margin rates.
Do you want to start trading? We anticipate that in our opinion the best is eToro! You will learn more about it later, but if you are not patient you can inquire and open an account directly on the broker’s site, which you can reach from here:
Best Forex trading platforms
Most Forex brokers and CFD brokers use the MetaTrader platform.
However, there are also CFD brokers who, in addition to this platform which is otherwise known by most traders, operate with proprietary platforms such as in the case of eToro, Plus500 or others that we will see.
It will be possible to access these platforms by registering with the Forex broker.
Once registered, the trader will choose the type of platform that best suits his trading style.
There are also mobile trading platforms, which are platforms that allow the trader to trade in complete mobility, also because most of these platforms are web-based.
Best Forex Brokers: customer care, help and support
We would like to clarify that nothing can replace the trader’s experience with the advice and suggestions of the Forex broker, whether it is an extended period of time or occasional events.
Therefore we wanted to list some criteria that must be kept in mind when choosing the broker:
- ease with which you can contact the broker;
- training provided to traders, based on their experience level;
Usually almost all Forex brokers offer assistance to traders through the following channels:
Some Forex brokers also offer the possibility to trade with a personalized training plan, that is with brokerage and consultancy services based on a personal tutor, with video documentation and tutorials to help learn how to minimize risk.
Finally, remember that Forex trading involves a high degree of risk, so be very careful but, above all, we recommend initially using a demo account to start.
Take advantage of the training provided directly by the Forex brokers and then also dedicate yourself to the study of the strategies that you can find in this blog, based on your trading style.
To conclude, we can tell you that all the brokers included in this guide have been selected and proposed also on the basis of what the expectations of the traders are.
Moreover, many checks have been made in a meticulous way, both on the trading platform and also on the basis of people’s opinions, carrying out quality tests and reliability tests not only on the demo account but also on the real account.
That’s because we wanted to give you complete and real information.
Browsing our site you can also find all the information related to Forex trading.
In addition, some useful tips on how to read Forex charts and how to adopt the best strategies with the various Forex brokers, some tips on how to make money with Forex thanks to:
- free Forex signals;
- several daily technical analyzes realized;
- different operational strategies;
- macroeconomic news from the main countries, very important for understanding the price movement of the various assets.
Above all, you can find tips and useful trading guides not only for beginner traders, but also for expert traders, along with all the material necessary for training.
The CFD and Forex brokers that we wanted to offer you in this guide are also subject to periodic quality reviews by our technical staff.
Consequently, they can vary from week to week and a Forex broker that until today could be considered one of the best, tomorrow may not be, or vice versa.
It will also be possible to remove brokers from the top list if any anomalies suddenly reported are found by traders.
Best Forex Brokers Metatrader 4 and 5 (MT4 MT5)
If you love Forex Trading and, like us, you are passionate about the Metatrader 4 Forex trading platform, then this guide is what you are looking for.
You will find the best reliable online trading platforms that support the Metatrader 4 – 5 Forex platform, with the main features they offer.
MetaTrader 4 was one of the first trading platforms available for Forex trading; its origins date back to 2005, the year the platform was launched and, since then, over the years it has always benefited from some improvements, especially in terms of customization.
In fact, today it has the best aspect that you can exploit together with the flexibility that characterizes its use.
This makes Metatrader a platform adaptable to all traders.
It doesn’t matter if you are a beginner or an expert trader, Metatrader 4 is the right trading platform for you and for trading on Forex, CFD and Futures.
Anyone trading on an online broker, whether it is only a Forex broker or more generally a CFD broker, should consider downloading the Metatrader 4 platform!
Metatrader: 4: reliable and safe platform
One of the strengths of the MT4 trading platform is its adaptability to most brokers.
As we have seen in the characteristics of the Forex brokers described above, it also presents itself as the best technical support for the trader, without distinction between expert or beginner traders.
One of the reasons why Forex brokers sponsor it is precisely for the certainty of reliability, in order to attract a very large and varied audience.
Its graphic simplicity and intuitive approach complete its performance; with these features, you will be able to use it from the beginning, with the possibility of customizing it both in terms of research and of technical analysis, which includes indicators, supports and graphic tools that make it suitable also to more experienced traders who adopt more advanced strategies.
Another positive aspect for which we recommend operating with MT4 is security, moreover with a very high protection factor and which allows access only to those who have passwords and credentials, also offering a 128-bit encryption system that allows the server to function safely and smoothly even during a hacker attack.
Metatrader 4: platform suitable for multilingual mobile trading
Among the other reasons why we recommend you use it, there is also the great stability and speed of execution offered in the services, in addition to the simplicity of placing orders.
This is a very important aspect not only for customers but also for online brokers, given that the platform also uses the stand-alone system.
Thanks also to the multilingual, multi-currency system, Forex brokers are sure to offer a software compatible with any type of national currency, which is well suited for interaction with any language of the country in which the brokerage service is offered.
You will surely exploit that!
Best Forex Brokers: eToro, leader of Social trading and Copy Trading
The online broker eToro is a leader in the social trading sector, as well as being one of the best Forex CFD (contracts for difference) brokers. Through CFDs, traders can trade on different types of assets such as:
- shares of various national stock exchanges;
- stock indices of various national stock exchanges;
- Forex market currencies;
The trading platform of the eToro broker has been designed especially for less experienced traders: the eToro trading platform is easy to use, as well as being stable and free of bugs or slowdowns.
But as previously mentioned, the real strength of this Forex broker is social trading. The online broker is in fact a real social network, where every trader has a dashboard. Each user can write their opinions about any asset on the Forex broker. Other users can share, click “like” or comment on these posts, just like a classic social network works.
Copy trading is an additional function. Through copy trading, users can view and copy transactions made by other traders, even more experienced than them, called Popular Investors.
A great advantage, especially for those who are still inexperienced traders. To become a Popular Investor you need to keep in mind only a few precautions, but above all to have a low risk score, since other people have invested in them.
In addition, just like a real social network, traders can interact with each other, showing their analyzes on the financial markets, their trading strategies, but also asking for doubts and questions.
Another big advantage of the eToro broker is the ability to have access to a free demo account without even having to make a deposit.
|| || ||
As mentioned above, eToro really ranks as one of the best Forex brokers for less experienced traders.
eToro is a multi-asset platform that offers both investments in stocks and in cryptocurrencies and more generally CFD trading.
Please keep in mind that CFDs are a complex tool and may involve a high risk of rapid loss of money due to leverage. 66% of retail investors lose money with CFD trading with this broker. You should consider whether you understand CFDs well and whether you are able to face the high risk of losing your capital.
This article is for instructional and informational purposes only and should not be considered as investment advice.
-> READ THE REVIEW: eTORO >>
Forex Broker Plus500: Trading with Forex and CFD
Another online trading platform that deserves to be mentioned is that of the online broker Plus500, another excellent Forex and CFD broker.
Plus500 is probably one of the “oldest” Forex brokers in the industry, which offers a trading platform for each available operating system (including Apple smartphones and tablets, Android and even Windows Phone).
Please remember that online trading is risky!
It was the Plus500 broker who introduced the feature of the free and unlimited demo account, which still offers to anyone who wants to register and try the trading platform for free.
Plus500 is a solid and reliable Forex broker, which opened its doors back in 2008: since then, Plus500 CFD broker has continued to grow and today has more than 2,000,000 average transactions carried out daily on its trading platform.
Plus500 has also been a sponsor, for years, of the Spanish soccer team Atletico Madrid.
|| || || |
Plus500 offers over 1,000 different assets with which to trade CFDs, and was the first CFD broker in the world to introduce the possibility of trading CFDs on bitcoins. We are talking about one of the most popular Forex brokers in the world of online trading!
Forex Broker IQ Option: low minimum deposit
IQ Option is a broker regulated by Cysec, which is the financial market supervisory authority of Cyprus, the country where the broker is based. With this license IQ Option can operate throughout the European Union.
IQ Option, as you can tell from the name, was born as a binary options broker and had achieved great success thanks to binary trading. Subsequently it also opened to CFD trading, well before the ESMA rules, which placed a ban on retail traders from being able to trade binary options.
Today IQ Option allows CFD trading on many assets including Forex currency pairs, commodities, cryptocurrencies, ETFs, indices and stocks. Professional clients can continue to trade online with binary options, while retail clients can take advantage of the new FX options, also approved by ESMA.
One of the strengths of IQ Option is certainly its minimum deposit, which is equal to € 10 and is the most competitive on the market. The demo account is free and you can trade without any risk with virtual money!
A Forex broker is a financial intermediary that allows you to trade currency pairs.
With a demo account you can practice trading on financial markets, including Forex. The brokers listed in this article offer a free demo account.
Reliable Forex brokers are the ones that guarantee the security of customer data and accounts. In fact, it is advisable to deal only with Forex brokers regulated by competent supervisory authorities.