Best Forex Brokers

Find the best forex broker in 5 steps

Choose regulated brokers with security guarantees
It is preferable to use a broker who is regulated and registered in Europe and who guarantees the independence of the deposits. In the event of a dispute, it is much easier to approach the European institutions than to international institutions. Likewise, reviews and opinions of other users are important to contrast the good or bad experience that other brokers have had.

Functionalities and offer of the broker
Level of leverage, fixed or variable spreads, types of orders, amount of currency, etc. All of this depends on our investment strategy and it will be to a greater or lesser extent convenient for us to contract this or that forex broker.

Brokers with low commissions and transparent fees
Price is important, but more important is the transparency and good practices of the broker. A company that does not hide its fees but, on the contrary, exposes them without opacity or concealment, has nothing to hide and will not come out later with “surprise” commissions.

Intuitive and friendly trading platforms
It is vitally important to “play” with the trading platform before you start investing. The free demos help us familiarize ourselves with the tool and analyze the broker’s operation without having to invest with real money. A trading platform has to meet our investment objectives and be adapted to our needs as forex traders (e.g. having an app if we usually trade with our mobile phone).

Broker’s services
Ideally, you will receive 24-hour telephone or online chat support. On the other hand, many forex brokers offer free trading academies, especially for newcomers, where they give webinars and free courses to start your journey. It’s worth taking a look at this offer if you haven’t yet considered an investment strategy or lack some training in the forex market.

How did we create this forex broker ranking?

The Internet is full of brokers who specialize in Forex, which is why we have created a top list of some of the best brokers for investing in currencies based on the following factors:

Forex trading platform and broker operations

According to our classification, the best forex brokers are those that offer better trading platforms, a wider range of pairs, different accounts according to the level of the trade, etc.

• Number of pairs
  There are over 180 currencies in the world and therefore the number of pair combinations is overwhelming. However, not all pairs are available and not all currencies are profitable. The most volatile pairs and ones that give rise to most forex trading are EUR/USD (Euro/Dollar), USD/JPY (Dollar/Yen), EUR/JPY (Euro/Yen), GBP/USD (Pound Sterling/Dollar), EUR/CHF (Euro/Swiss Franc), GBP/CHF (Pound Sterling/Swiss Franc), among others. This in turn means that spreads will be lower compared to more exotic currencies.
• Leverage and lot flexibility
  We value those forex brokers that offer the highest level of leverage as well as better conditions when trading lots, mini lots, per unit, etc.
• Broker’s operation
  The currency trading platform as well as its functionalities is one of the most relevant factors. Brokers can have their own online platform to invest in forex through the broker, or trade with other technology providers such as MetaTrader 4, MetaTrader 5, cTrader, Sirix,…
• Free Demo
  Because, in our opinion, it is always better the broker who presents all its products, forex platform and rates in a clear and transparent way; without small print and without hiding its offer. A good reflection of this virtue are the free demos that make it easier for the client to familiarise themselves with the tool, access all its functions and get to know the broker in depth before contracting it (they can even operate with fictitious money). In this way, as in the rest of the commercial sectors, the user knows the product before purchasing it.

Services and seriousness of the broker

A fundamental part of the list is made up of brokers who stand out in the “services” category. It is not enough to offer a wide range of currencies or low spreads if the broker is not regulated, does not offer an efficient service or guarantees the security of the funds deposited. In the end, the cheap can be expensive:

1. Customer service
   The quality and user perception of any forex broker is greatly enhanced when efficient customer service is provided. Thus, more than one entity has placed a 24 hour live chat that avoids escalating problems of simple solution. Telephones and support in your language and inyour country; firstly, because emails are not immediate and secondly, because not all of us are happy to call Cyprus.
2. Extra services
   For example; academies, trading school, forex webinars, seminars, courses, free videos, etc. In this case, we value more the training and help offer oriented to forex trading.
3. Safe and regulated forex brokers
   Especially when it comes to withdrawing funds. It may be a company that is not located in your country, however, it would be good if it were duly registered and regulated by some European authority (for example CYSec, AMF, BaFin or FCA). We also consider it positive that there are no obstacles to withdrawing the deposit.
4. ECN broker
   An ECN broker (Electronic Communication Network) will also be given greater consideration, as it offers greater transparency when investing in forex by showing direct interbank market prices and, unlike a Market Maker broker, it does not have a fixed range. This does not necessarily mean that Market Makers will always take opposite positions to profit from our losses and therefore make us bet on the slow horse. In any case, they largely absorb the excesses of the market and we can mention some very competent forex brokers who are Market Makers.

What is Forex?

Forex (sometimes referred to simply as FX) comes from“foreign exchange“. We are trading Forex every time we exchange currencies (for example on a trip) or when we buy a product in a currency other than that of our country of residence. That is already Forex trading as currencies are the financial instruments with which we will trade.

Can you imagine how much money can be moved daily in the Forex market? Around 5 billion dollars. This makes it the largest and most liquid decentralized global market in the world. Ergo, Forex is not just about changing currency to pay for your holidays (in fact, that is its most luscious side), but it is a huge opportunity for investors: if you added up the turnover of all the stock exchanges, it would still be less than Forex.

Among the main characteristics that make Forex trading one of the most attractive speculative stocks for retail and professional investors, is its tremendous volatility. This gives a great opportunity to make significant profits, and a great risk of suffering large losses. That’s Forex, folks.

In this market one can invest in currencies. Although there is a wide range, some of the main currency pairs most used by traders are EUR/USD, AUD/USD, USD/CAD, EUR/GBP, EUR/JPY, UDS/JPY, GBP/USD, NZD/USD

Forex market types

• Counted: It is the one in which almost all of us have participated at some time: the exchange of currency. Ergo, buying a currency and selling another. In this market there is a physical exchange.

• Forward: It is, as in the previous one, a purchase of currencies. However, in this case a price is established for a certain amount and the exchange takes place in the future. In other words, the maturity date of the operation is set at a later date. It could be said that it involves blocking an exchange rate in anticipation of possible increases in value.

• Futures: This is very similar to a forward, because a purchase or sale is also agreed for a certain amount and with a future exchange date. The difference is that futures contracts are legally binding. The date established is absolutely unavoidable.

What is Forex trading?

Forex trading consists of speculating on the fluctuations in the values of one or more given currency pairs and in a given period. In short, it involves anticipating whether the value of one currency will rise or fall in relation to that of another or others.

By trading CFDs we can generate profits even when the value of a financial instrument is falling. We would open short positions and, if our prediction is correct, this would generate profits.

However, any kind of trading requires a certain amount of knowledge and involves risks that need to be known in advance. This is even more important when working with Forex CFDs. In addition, before investing in Forex, you will need to perform technical and fundamental analysis of the currency pair you are interested in. Another tip is to keep abreast of the economic calendar as well as any news that may affect the foreign exchange markets.

Reasons to Trade Forex

We’ve slipped them in before. There are mainly two of them.

• Acquiring goods or services abroad: This is the part of Forex trading that the citizen uses more or less regularly. However, many of the people who do this do not know that they are operating in the Forex market when they buy something with a different currency.

• Investment: Those who use it to invest do know perfectly where they are. And, if not, we are here to explain it to them. As we said before, it is the most common use. Those who operate in Forex have no intention of physically possessing the currency exchanged, they only speculate and invest with the oscillations of its value, being able to make many operations in a single day.

Is it safe to invest in Forex?

Let’s establish a dichotomy: on the one hand, security from the legal point of view, that is to say that your money is safe in a reliable and trustworthy market. On the other hand, security that you are not going to lose much capital, referring us only to what it means to invest and the risks that are taken.

On the first side, the answer is very simple: the Forex market is safe if you use safe brokers. You already know that all those we show in Thegranarysa are, and, in addition, we give you guidelines to check if an online broker is safe.

The other branch has to do exclusively with the decisions taken. The Forex market is very volatile, competitive and – it cannot be denied – trading on it carries an obvious risk. Yes, you can lose money, but you can also earn it.

If you are a layperson, what you need to do is start practicing with a demo account that is offered by almost all Forex brokers. You also have the option of leaving your trading in the hands of others: experts, automatic trading systems, robots or even copying the movements of the most famous and successful traders.

Forex commissions and spreads

There are brokers who establish a commission that you will have to pay for trading with them in the market. Not all, in fact, there are more and more who have eliminated this payment. However, this does not mean that Forex trading is free, and this is where the spread comes in, which is the difference between the buy price and the sell price.

But the best way to understand it is with an example: imagine that you enter a transaction with these market bid and ask prices: 1.5421/1.5423. You enter buying, therefore, at 1.5423. Your position is -2 points, because if you sold you would be 2 points below the purchase price. You pay 2 spread points.

Then the price goes to 1.5430/1.5432 and you sell (at 1.5430, bid price). You have earned 7 PiPs (which is actually 5, because you paid 2 of that kind of commission before). Some brokers offer variable spreads like the one in the example (variable and at the dawn of the market) and others set fixed spreads. There are even those that offer different spreads depending on the financial instrument you choose.

Leverage in Forex

Another key concept, and one to keep in mind when choosing an online broker to invest in Forex, is leverage. The majority tend to offer high leverage, which (clearly and directly) means investing in the market with a small amount of money, but as if for another much higher amount. The benefits are multiplied. The losses as well. Leverage is a risk that a trader must take and therefore this issue must be carefully addressed. At Thegranarysa we recommend trading with brokers that offer negative balance protection for greater security.

How do I start trading Forex?

Starting to trade currencies on Forex is really simple. In three steps (which we will now list) you will be ready. But don’t let the urge blind you. The less cold-blooded you are, the more likely you are to lose money. Act calmly, open a demo account if you’re new, practice, learn, ask, read… Watch how the best do it.

And only when you are absolutely capable start putting your money on the line. We repeat: in Forex you can win a lot of money, but you can also lose money extremely easily.

Steps to start investing in Forex:

1. Open a real account in an online broker.
2. Deposit the money you want to invest. Depending on the trading platform in which you trade, one or another minimum amount will be established.
3. Choose the currency pair you want to trade.

 

 

What are the best online Forex brokers?

An essential figure in this market is the online Forex broker: these are companies that act as intermediaries and execute the purchase or sale operations that their clients request. All this in exchange for a spread, which is nothing more than a commission.

The commissions that are handled are really low, something that happens, mainly, thanks to the known as leverage, which makes it possible to invest a small amount of money, but with the effect of being trading with a much higher one. For example, to have a leverage of 1:400, you only have to contribute 50 USD, however, you will be able to obtain profits as if the investment had been 20,000 USD.

With this learned, to begin to invest is really simple, already for it is necessary to have a connection to the Internet network and a computer, tablet or mobile phone to open a trading account with an online Forex broker, .

Probably the most important decision to be made before starting to trade is to choose one of the best online brokers. In order to know that you are making the right choice, we advise you to establish a series of minimum requirements that they must meet. For example, to choose only Forex brokers regulated by prestigious regulatory bodies such as the CNMV (Spanish National Securities Market Commission), the FCA (Financial Conduct Authority) in the United Kingdom or the CySEC in Cyprus, among others.

You should also analyse your trading conditions and the trading platform you offer (Meta Trader 4 or 5, Sirix Webtrader, mobile trading apps…). In the following sections, we will go over the filters and analysis that must be carried out before choosing a broker to trade Forex definitively.

However, we can already say that, after an exhaustive study based on the analysis, experience and numerous comparisons of online brokers, the list at the top of this page mentions those that our experts consider to be the most recommendable Forex brokers

Which instruments to buy on Forex?

A financial instrument is an asset that can be traded. Forex-related financial instruments are divided into two main categories: cash instruments and derivative instruments.

Cash instruments:

Cash instruments (spot currencies) are securities, loans and deposits. The price is set by the market. In other words, the investor buys or sells the asset (the currency) at the price dictated by the market, which is normally already established when the contract is concluded, although, owing to the time difference (it is a global market), actual delivery of the asset may be postponed by one day.

Derivative instruments:

Derivative instruments, unlike the above, are not valued in themselves but are derived from other assets, such as shares or commodities. They are divided into two subcategories: standard derivatives, which are traded on stock exchanges, and are exchange rate futures; and Over The Counter (OTC) derivatives, which are forwards, swaps or options on Forex.

Let’s go a little deeper into this to briefly describe each of the instruments:

• • Futures:

operations with a stated size and a marked maturity date that are usually traded on markets created per se.

• Forwards:

the transaction is carried out at a predetermined future date and the exchange rate is not necessarily market-based.

• Foreign exchange swap:

consists of an exchange of a stipulated amount of foreign currency, with a commitment on both sides to return these currencies within an agreed period.

How to choose a Forex broker?

Four trillion dollars are traded daily on Forex, making it the largest market in the world in terms of volume. With such figures, it is perfectly understandable that currency trading is becoming increasingly popular and that the number of websites offering this service is constantly increasing. Forex brokers and trading platforms abound on the Internet, making it very difficult to choose the right currency trading platform.

This (the choice) must necessarily involve prior analysis, which must unquestionably involve consultation of some really important variables. The final decision is not easy, which is why our experts have established these determining factors when choosing which online Forex account is the most convenient.

1. Broker’s commissions

A major factor in choosing the ideal Forex broker is the commission it will take. If it is too high, it is not worth continuing with the rest of the analysis. It is worthwhile going back to the grid, since, logically, the investor’s possible future earnings can vary considerably depending on this aspect.

The commission is very often set in line with the Pips (Percentage Interest Points): this is the smallest movement that can be observed in the price of an exchange rate or currency pair, i.e. if, for example, the Euro/US Dollar exchange rate is at 1.3530 and goes up to 1.3531, it will have gone up by one pip.

A sign that the Forex broker in question is a good professional, is when he sets very tight margins with similar pairs such as the dollar/euro or pound/euro. However, there are also some who do not set this commission based on Pips.

2. Security

Among the basic characteristics that the online forex broker must comply with, one related to security could not be missing. It goes without saying that this is important when trading online. The security of a site is classified with the term SSL encryption (Secure Sockets Layer), which is the same encryption software used in banks and, in general, in all financial institutions. It should appear at the bottom of the page, if not, it is best to leave that online forex site directly and start the search again.

3. Regulatory bodies

This point is closely related to the previous one on Security, as a reliable sign that an online Forex broker is reliable and therefore safe, is that it is registered and verified by the competent regulatory body at all times.

This (and is a very important aspect) will differ depending on where the online forex brokers are located. Two examples are: in the US they are governed by the National Futures Association (NFA), and they must also be registered with the CFTC (Commodity Futures Trading Commission). In the UK, however, the FCA is the body in charge.

4. Customer service

We continue with what we could call: minimum essential requirements that a platform must meet in order to be considered reliable and, therefore, to be chosen by the retail investor to operate in the Forex market. It is essential that it has good customer service. The sites that have a quality one usually give several options to the user to solve his doubts: telephone, mail and live chat, at least. A correct service must offer at least these three possibilities to the client when it comes to raising doubts or putting on the table possible discrepancies that may arise with the services offered.

5. The trading platform

In the Forex market, sometimes decisions are made very quickly; and always, before executing a movement, it is necessary to consult a series of variables: quantities or figures that must be visible to the user at all times. When the site is of high quality, navigation is extremely simple, and, on the contrary, if the investor is not comfortable, he may lose an interesting operation. So, one of the tests that any Forex platform must pass to know if it is the right one, will depend on the answer to questions like these: Is it easy to consult the state of the pairs in real time? Are the profits (or losses) visible in the main page? How often is the site updated? Are the “buy” and “sell” options clearly delimited?

6. Currency pairs

We are going to start talking about money, but, for the moment, not amounts. Let’s start with currency (in general). When the site is reliable, it offers a large number of pairs to choose from. The USD/EUR can never be missing, but the platform would show its quality if it includes others like USD/GBP or EUR/GBP. The existence of a large number of pairs to choose from is important because it will serve to diversify the investment and avoid, to some extent, the conditions caused by the volatility of a particular currency.

7. Types of accounts

In line with the amounts intended to be moved in the market, the investor must have the option of opening one type of account or another. Although different names are used depending on the platform, most commonly accounts are differentiated by Beginner/Mini accounts, Professional accounts and VIP accounts.

8. Initial deposit

Before making the final choice, you should consult what is the minimum amount to be contributed as an initial deposit to open the account. Usually – and this is one of the characteristics that makes online Forex really attractive it is not necessary to invest a large amount of money (as opposed to other markets, such as gold, for example). Some Forex brokers even require an entry fee of only $50. A good sign of the quality of the platform is if it offers different levels of initial deposits depending on the particularities and needs of the investor.

9. Systems for depositing and withdrawing funds

One more test that the site has to pass: reliable platforms offer numerous methods both for depositing funds and for withdrawing them. The most common are credit cards, PayPal or bank transfer. If these three are not available – or some unknown system is included – better keep looking. Similarly, it is very important to check if there is any kind of commission when withdrawing money, as this can obviously directly affect profits. Normally the methods available for depositing are the same as those for withdrawing funds.

10. Discounts

You may be a beginner now, at least new to this site, but, if all goes well, within a while (and a few operations) you will have become a veteran client. That’s why -although it may seem like a minor question at the moment- it’s interesting to know if the Forex platform offers any kind of discount to regular investors. These usually consist of establishing lower commissions; something that will increase the client’s potential profit margin.

11. Interaction with other investors

We are about to finish this list of minimum characteristics that the platform must have to be considered reliable and trustworthy. If you have passed the previous ones, it looks very good, but there are still a couple of obstacles. One of them is to find out if the site offers the possibility of interacting with the rest of the investors, something that -more and more often- is feasible in the most important sites. This, besides helping to know people with common interests, is an excellent system to learn and receive advice from the most experienced Forex professionals.

12. A demo account

You’re eager to start operating, that’s logical, but you’ll have to be patient. In the end it is always appreciated. Therefore, even if your online Forex broker has successfully passed the above checks, it is still appropriate to start with a demo trading account. These do not require an initial deposit and can only be used for a certain period of time. Good forex brokers always have this option available, which is really useful for the future trader to become familiar with the operation of the platform.

13. Maximum leverage

Leverage is attractive because it allows you to trade more funds than you have on deposit. Although this sounds attractive, it can also become a double-edged sword: if our forex trading is successful then we will multiply our profits. On the other hand, if the Forex market moves in a direction contrary to what is expected, leverage can result in a rapid loss of our capital. This is why we must use it with caution and pay attention to the maximum leverage that each broker offers for the currency pairs we plan to trade.

We hope the information contained has been useful and don’t forget to leave your comment.