Best Forex Brokers with Low Minimum Deposit

Professional traders refer to those who want to earn larger profits in the forex markets.

As per some ranking lists and professional research, Interactive Broker (IBKR) suits professional traders who want to gain large profits most.

IBKR provides competitive spreads and low-commission-based pricing through advanced trading tools and more professional platforms across an extensive range of markets.

In addition to that, this broker also offers third-party research for professional traders.

What's more, Interactive Broker also offers margin borrowing which is only for seasoned or professional traders with a high-risk tolerance.

Nowadays, the vast majority of brokers will not charge commissions and will instead profit from wider spreads. Therefore, wider spreads mean high trading costs. Many forex brokers hype that they offer highly competitive spreads to attract brokers.

There are also some ranking lists of the lowest spreads forex brokers on the internet. Here we find a relatively trustworthy one for your reference:

Pepperstone requires no minimum initial deposit, offers floating spreads, with average EUR/USD spreads as low as 0.09 pips.

IC Markets, requires a minimum deposit of $0, offering floating spreads, with average EUR/USD spreads as low as 0.10 pips.

XM, requires a minimum deposit of $5, offering floating spreads, with average EUR/USD spreads as low as 0.10 pips.

FxPro, requires a minimum deposit of $100, offering Floating/Fixed spreads, with average EUR/USD spreads as low as 0.45 pips.

FBS, requires a minimum deposit of $1, offering Floating/Fixed spreads with an average EURUSD spread of 0.50 pips.

FXTM, requires a minimum deposit of $10, offering Floating spreads with average EURUSD spreads of 0.10 pips.

Choosing a broker that is simple to open an account with, requires a relatively low amount of capital deposit, offers generous leverage & advanced trading platform seems quite easy. Anyway, you can judge the pros and cons of a forex broker from the following aspects:

Regulation-This is the most important thing. Some top regulatory jurisdictions include ASIC (Australia), FCA (UK), CFTC /NFA (US)-any of these can render confidence that the broker is legit.

Trading Platforms-Industry-Recognized trading platform like MT4, MT5, cTrader.

Minimum Deposit-Usually a lower amount.

Ease of Withdrawal-You can withdraw your deposited funds quickly, easily, and without any fees.

Spreads/commission-Not too wide.

Customer Support-You can contact this broker anytime anywhere if something goes wrong.

If you want to investigate regulation information (including regulatory license and regulation status) on a specific firm, individual, or pool, directly go to regulatory register websites. Here we take NFA as an example, firstly, you should visit “NFA Background Affiliation Status Information Center (BASIC). The following page comes:

Next, let us type the “Forex.com” (the famous forex broker in the United States even in the world) in the search bar, here comes the result: Forex.com is indeed an NFA-regulated broker. You can also input NFA ID to investigate if this broker is regulated or not.

If a forex broker fails to display its detailed regulatory license number, it is probably an illegal forex broker that traders should stay away from. Nowadays, many forex brokers love to clone and pretend to be regulated, therefore, traders should first come to regulatory authorities’ websites to check if its regulatory number is true when choosing forex brokers.

Yes, you can use $100 to open a forex account and start trading in the forex market, as most legit brokers require a relatively low initial capital requirement to attract traders to trade forex on their platforms.

It is not lot of money, so certain potential risk/reward will be limited. You can deposit this $100 into your trading account as a margin by applying the leverage of 100:1 (avoid excessive leverage in case of fund losses), for example.

Margin trading means your broker gives you $100 for every $1, so if your account trading balance is $100, you can trade $10,000 in total. Leverage in forex trading can magnify your little deposited funds allowing you to trade larger value, however, it also increase your potential risks greatly as well.

Forex brokers typically make a profit or get compensated in two ways:

spreads (the difference between bid-ask prices), and some additional commission fees such as fees for trading platforms, monthly fees for dormant accounts.

As per several ranking lists, Pepperstone ranks in the first place offering the tightest spreads and no commission.

It provides low average FX spreads from 0.6 pips for the EUR/USD pair with no commissions in the standard accounts, much lower than the industry standard of 1 to 1.5 pips on this pair.

Pepperstone’s Razor account offers spreads from 0.0-0.3 pip, plus a commission of EUR5.23 round turn per 100K traded.

The trading costs in forex trading markets include several major segments: forex spreads, commissions & other fees, slippage.

When it comes to forex trading costs, the spreads (the difference between the bid and ask prices for a forex pair, for instance, if you are trading EUR/USD pair per lot with a spread of 0.6 pips, then your spread costs is $6) is typically the most well-known expense.

Apart from forex spreads, brokers may also charge other commissions and fees. Trading commissions come from the cost per traded side (opening and closing a position) or per lot traded (commissions based on trading volume and charged for each lot traded).

Other fees include inactivity fees and trading software fees. Slippage does not often occur, and typically, unregulated and illegal brokers make profits from slippage.

Different accounts with different. Before opening up a trading account, you should figure out the following questions:

How much do you want to deposit?

You should keep in mind that it is not wise to trade with money you cannot afford to lose.

What is your risk tolerance?

If you are a conservative trader, you may choose a micro account you can trade micro-lots. But if you want to trade more aggressively, you may better choose a standard account.

Do you need any advanced tools?

Many forex brokers offer their best trading tools to their professional clients, which may include innovative news analysis or access to an extensive range of indicators.

Once you can define what kind of trader you are, your trading goals, and your risk tolerance, you can know what account suits you most.

Success in forex trading, as in any other kind of investment, comes down to making the right selections continuously. The first and most crucial step for every forex investor who wants to participate in the forex market is to find a suitable broker partner. Here are some key points you should pay attention to:

To give a forex broker an unbiased and fair score, WikiFX has made great efforts and the result comes down to the FIVE aspects: License, Regulatory, Business, Trading Software, and Risk Management. Every aspect comes with a maximum of 10 credits.

License To verify whether the license of a broker is true or not, WikiFX arranges a field survey team to conduct field interview and shooting, to ensure a broker’s information is authentic.

Regulatory The more strictly regulated a forex broker is, the higher scores it gets. For instance, AvaTrade is multi-regulated by three tier-1 regulatory bodies-ASIC, FCA, FSA, with high trust, thus it gets 9.5 in this aspect.

Business This part mainly involves in trading instruments, trading costs, customer support, as well as user comments. If a broker legally operate forex trading with competitive trading costs, professional customer support, a diversified trading instruments as well as positive client reviews, it will be recognized as a high-score player.

Trading Software If a broker use or offer a legal copy of some leading trading platforms, like MT4, MT5, cTrader and more, it will get higher credits. Again, AvaTrade offers MT4, MT5 Dupli Trade, ZuluTrade, and therefore, it get a high score of 9.5.

Risk Management The WikiFX risk-control team and the FXeye cloud system monitor forex brokers' order execution index, customer funds static index, global public opinion index, liquidity index, credit index, and more than 40 factors in real-time to elevate a fair score.