While capital requirements may differ, it is still critical to find a strictly regulated broker with powerful trading tools to help you succeed in forex trading. The following top 10 best forex brokers are great for all levels of traders but particular for forex beginners or novices who wish to step into the forex world with a low deposit funded.
FCA-reguated broker with thousands of assets to choose from;
Offering a professional trading platform on both web and mobile devices.
An ASIC -regulated forex broker requires no minimum deposit , high leverage offered.
Low trading fees, MT4 and API trading for algorithmic traders.
Account opening is easy and digital with this well-regulated broker.
Spreads offered are among the tightest in the industry, 24X7 professional and responsive customer support.
A Stringently Regulated Broker, Reliable and Safe to Trade With, The Choice of Over 3500,000 Clients from Over 190 Countries.
Quick & Easy to Start Your Real Trading by Funding As Low As 5 USD, Lower & Friendlier Cost Structure Available, Advanced Trading Platforms & Tools Drive You Succeed into the Forex World.
Offering a large portfolio of forex and CFD products.
Low forex fees, suitable for beginners.
Globally Licensed and Regulated by FCA & CYSEC, Offering Great Reliability.
Advanced Trading Platforms Offering of Ultra-Low Spreads, Starting from 0 pips.
A Multi-regulated Broker for you to Start Real Trading with a $1 Initial Deposit.
Incredibly Unlimited Leverage Offering for Asia, Rare Among Brokers.
A stringently regulated forex broker, requiring low minimum to fund an account and begin investing.
Offering access to more than 30 cryptourrencies.
Stringently regulated by and authorized by three entities: CYSEC/FSA/NFA.
A extensive range of trading options, multiple trading accounts to choose from.
100AUD or Eqivalent
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.
Many forex brokers offer multiple trading accounts for traders to choose from, then here comes the problem: how to choose a forex account? Trading accounts varies typically based on the trade size you want to make, so different accounts have a different minimum deposit amount ($100 or even less). The main forex account types are as follow:
Mini/Micro Accounts-suitable for traders with a small number of funds and can help them control risk.
Standard Accounts-they usually requires a minimum initial deposit of around $100-$500, chosen by most regular traders.
VIP/Professional Accounts-they are suitable for professional traders or institutions. VIP accounts often have a high minimum deposit requirement (about $10,000) and allow regular quantities to be traded. These accounts are often ECN accounts too.
Swap-free Accounts-also called Islamic accounts, for they are often used by Muslim traders who cannot incur interest fees due to their religious beliefs.
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:
You should keep in mind that it is not wise to trade with money you cannot afford to lose.
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.
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:
Regulation is typically the first indication of a trustworthy and dependable broker. Regulated brokers are required to keep client funds into segregated bank accounts, separating from their operating funds to protect clients.
Good trading conditions will increase your chances of making money in the market, while unfavorable trading conditions may expose you to market hazards. A good broker will offer different accounts to meet the personalized needs of various traders and requires a much lower minimum initial capital amount. Additionally, keep in mind that Forex trading is a business, and you must be mindful of your expenses.
Trading platforms serve as your entry point into the FX market. They let you buy and sell instruments. In most cases, reliable forex broker operates classics, such as MT4, MT5, or both. Investors should take extra vigilance when dealing with less reputable or unregulated brokers who use proprietary trading platforms.
A reliable forex broker will always make it easy for you to withdraw your deposited funds.
Some other perspectives you should also take note are the background, market coverage rate of the broker as well as educational tools offered by this broker.
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.