Which broker is the best for forex?

Here's a summary of the best forex brokers for beginner forex traders.

Free forex bonuses

Best Forex Brokers for Beginners in 2021, which broker is the best for forex?.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

Best forex brokers for beginners in 2021

The forexbrokers.Com annual forex broker review (five years running) is the most cited in the industry. With over 50,000 words of research across the site, we spend hundreds of hours testing forex brokers each year. How we test.

The best forex brokers for beginners offer three essential benefits. The first, and most important, they are a regulated and trusted brand that offers a user-friendly web-based platform. Second, they provide a strong variety of educational resources. Third, they provide access to quality market research.

In our review of forex and CFD broker offerings, we spent endless hours opening demo accounts, navigating forex platforms, conducting market research, testing website usability, as well as watching educational videos and webinars.

Cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65-82% of retail investor accounts lose money when trading cfds. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money.

What is forex trading?

Forex trading is the process of exchanging one currency for another, known as buying or selling currency pairs, based on prevailing exchange rates from the forex market. The forex market is the largest global market, with nearly $6.59 trillion in currency traded on average, per day.

What is a forex broker?

When it comes to trading foreign currency, you use a forex broker, also known as a currency trading broker, to place your trades. When you trade forex, you buy or sell in currency pairs, e.G. "EUR / USD" (euro / U.S. Dollar). You open an account, deposit funds, then use the broker's trading platform to buy and sell currency using margin. The forex markets are open 24 hours a day, five days a week.

To learn more about the basics of trading forex, we recommend the school of pipsology alongside the NFA's trading forex booklet.

The best forex brokers for beginners

Here's a summary of the best forex brokers for beginner forex traders.

Plus500 - best for beginners overall

IG - excellent education, most trusted

Etoro - best trading platform for copy trading

Avatrade - quality educational resources

CMC markets - best web trading platform, excellent education

XTB - best customer service, great education

OANDA - quality research, user-friendly platform

Best for beginners overall

Plus500 is a trusted global brand that offers retail forex and CFD traders an easy-to-use platform and a thorough selection of tradeable instruments. While educational materials are limited, the plus500 web-based trading platform is extremely user-friendly, making it excellent for beginner forex and CFD traders. Disclosure: being good for beginners does not mean it is easier to make money. Trading is risky. (76.4% of retail investor accounts lose money) read full review

Excellent education, most trusted - visit site

Regulated and trusted across the globe, IG offers traders the ultimate package of excellent trading and research tools, industry-leading education, competitive pricing, and an extensive list of tradeable products. This fantastic all-round experience makes IG the best overall broker in 2021. (75% of retail investor accounts lose money) read full review

Best trading platform for copy trading - visit site

Etoro is excellent for social copy trading and cryptocurrency trading, and is our top pick for both categories in 2021. Furthermore, etoro offers a user-friendly web platform and mobile app that is great for casual investors, including beginners. (75% of retail investor accounts lose money) read full review

Quality educational resources - visit site

Avatrade is a trusted global brand best known for offering traders an extensive selection of trading platform options. Our testing found avatrade to be great for copy trading, competitive for mobile, mostly in line with the industry average for pricing and research, and a winner for investor education. (73% of retail investor accounts lose money) read full review

Best web trading platform, excellent education

When it comes to education, CMC markets competes with the best in the industry by offering forex and CFD traders a diverse selection of education in a variety of formats, including written articles, video updates, podcasts, and live webinars. Education aside, the CMC markets next generation trading platform is fast, reliable, and comes packed with tools and features. (76% of retail investor accounts lose money) read full review

Best customer service, great education - visit site

As a trusted multi-asset broker, XTB offers traders outstanding customer service and an excellent trading experience overall thanks to the xstation 5 trading platform. I was left impressed with XTB's education offering, thanks to its extensive written content and video materials. The only drawback is a lack of live webinars currently, although archived recordings are available. (82% of retail investor accounts lose money) read full review

Quality research, user-friendly platform

As a trusted global brand, OANDA provides forex and CFD traders a limited offering of FX pairs and cfds but stands out for its reputation and quality market research. OANDA's trading platform suite, fxtrade, is easy-to-use for new forex traders. OANDA provides a good balance of educational materials in both written and video formats, along with webinars conducted by its staff. (73.5% of retail investor accounts lose money) read full review

Educational materials comparison

Taken from our forex broker comparison tool, here's a comparison of the education features for the best forex brokers for beginners.

Feature	plus500	IG visit site	etoro visit site	avatrade visit site
has education - forex	no	yes	yes	yes
has education - cfds	no	yes	no	no
client webinars	no	yes	yes	yes
client webinars (archived)	no	yes	no	yes
videos - beginner trading videos	no	yes	yes	yes
videos - advanced trading videos	no	yes	yes	yes
investor dictionary (glossary)	no	yes	yes	yes

How much money do you need to trade forex?

While some forex brokers do not require a minimum deposit to start trading forex, most do. Unless opening a demo account, which uses virtual money to practice, most forex brokers require a minimum deposit of between $100 - $250 to start trading.

What are the most popular currency pairs?

The seven most frequently traded currency pairs (also known as the “majors”) are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD, and USD/CAD. Approximately 85% of all forex trades take place across these seven pairs.

Can you get rich by trading forex?

While some forex traders will be able to get rich trading forex, the vast majority will not. Forex trading is risky. Historically speaking, several hedge fund managers have been able to get rich trading forex. For example, george soros made over £1 billion in profit by short selling the sterling in 1992.

How do I start trading forex?

First, it is important to practice. Start by opening a demo account so you can get used to the trading platform and tools. Reading books is also important to learn how to conduct market research and perform technical analysis. Then, when ready, open an account, fund it, and start trading.

How do I choose a forex broker?

To select a forex broker, start by looking for brokers that are regulated in your country. Next, read full length forex reviews to assess the trading costs, tools, research capabilities, customer service, and other features of each forex broker. Finally, compare your top two choices side-by-side to decide on a winner.

Which forex brokers accept US or non-US clients?

Forex brokers who hold regulatory status in the US can accept US-based clients. Meanwhile, forex brokers who accept non-US clients will usually need to hold licenses in the countries where their clients reside.

For example, if you reside within the european union (EU), you will be able to open an account with an EU-regulated broker. In contrast, if you live in a US state, you will need to open an account with a US-regulated broker.

The best forex trading platforms for beginners

Plus500 - webtrader

IG - IG web platform

Etoro - etoro copytrader

Avatrade - avatrade webtrader

CMC markets - next generation

XTB - xstation 5

OANDA - fxtrade

Methodology

For our 2021 forex broker review we assessed, rated, and ranked 27 international forex brokers. Each broker was graded on 108 different variables and, in total, over 50,000 words of research were produced.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex risk disclaimer

"there is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." learn more.

About the author: steven hatzakis steven hatzakis is the global director of research for forexbrokers.Com. Steven previously served as an editor for finance magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

About the author: blain reinkensmeyer as head of research, blain reinkensmeyer has 18 years of trading experience with over 1,000 trades placed during that time. Referenced as a leading expert on the US online brokerage industry, blain has been quoted in the new york times, forbes, and the chicago tribune, among others.

Trading cfds, FX, and cryptocurrencies involve a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading cfds with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how cfds, FX, and cryptocurrencies work. All data was obtained from a published website as of 12/14/2020 and is believed to be accurate, but is not guaranteed. The forexbrokers.Com staff is constantly working with its online broker representatives to obtain the latest data. If you believe any data listed above is inaccurate, please contact us using the link at the bottom of this page.

The names, products, services, branding/logos, and other trademarks or images featured or cited within this website (www.Forexbrokers.Com) are the property of their respective owners and the owners retain all legal rights therein. These trademark holders are not affiliated with forexbrokers.Com and the use or display of names, trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, or endorses forexbrokers.Com or any of its reviews, products, or services. Forexbrokers.Com declares no affiliation, sponsorship, nor any partnership with any trademark holders unless otherwise stated.

Plus500uk ltd is authorised and regulated by the financial conduct authority (FRN 509909).

IG - 76% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you can afford to take the high risk of losing your money.

Advertiser disclosure: forexbrokers.Com helps investors across the globe by spending over 1,000 hours each year testing and researching online brokers. How do we make money? Our partners compensate us through paid advertising. While partners may pay to provide offers or be featured, e.G. Exclusive offers, they cannot pay to alter our recommendations, advice, ratings, or any other content throughout the site. Furthermore, our content and research teams do not participate in any advertising planning nor are they permitted access to advertising campaign data. Here is a list of our partners.

Disclaimer: it is our organization's primary mission to provide reviews, commentary, and analysis that are unbiased and objective. While forexbrokers.Com has some data verified by industry participants, it can vary from time to time. Operating as an online business, this site may be compensated through third party advertisers. Our receipt of such compensation shall not be construed as an endorsement or recommendation by forexbrokers.Com, nor shall it bias our reviews, analysis, and opinions. Please see our general disclaimers for more information.

Which broker is the best forex broker?

A common question that newer traders ask is "which forex broker is the best?" there are some shady brokers out there, so in this article, I want to tell you what to look out for when choosing a broker and also which broker I think is the best.

Here's a question that I get asked all the time and if you have been reading this blog for awhile, you know the answer. But for newer traders, I thought I would go over which broker I think is best and why. This is something that should have written about a long time ago and I only recently realized that I have not written a post about it.

I don't get any commissions for writing this post.

This really is the broker that I trade real money with and I really do believe that they are the best. There are a few other excellent brokers out there, so this is just a personal preference.

If you have any questions about choosing a broker outside of the US, you should talk to someone like justin, who understands the rapidly changing broker landscape much better than me.

Other brokers

Before I reveal which broker I like the best, it is important to go over what I have seen go wrong at other brokers so you know what to look out for.

Inactivity fees

Some brokers will charge you a monthly fee if you do not trade that month. I think that is completely ridiculous. This forces newer traders into taking bad trades because they “have to” trade.

I experienced this with one broker and I was furious. It was my fault though, I didn't read the fine print. I was charged like a $30 fee in a $300 account.

Be sure to check for inactivity fees. If there is one, move on…there are better brokers out there.

Sketchy foreign brokers

Some foreign brokers are going to promise the world and you may be tempted to trade with them. Don't do it.

You need to use a broker that is in a country that will protect you if the broker does something illegal or goes out of business. Usually the attraction to foreign brokers is the increased leverage.

If you can't make money at 50:1, you won't make money at 500:1.

Start small and learn to trade well.

Bad ticks

Some smaller brokers may not have accurate data feeds and that can lead to large gaps or triggering your stops when they shouldn't have been triggered. The reputable brokers will have accurate data feeds.

Can't access certain pairs

I have traded at a broker that only allowed me to trade 5 or 6 (I forget the exact number) currency pairs in a mini account. It's not as though I will be trading every single pair at the same time, but if I so happen to backtest a strategy that works best in GBPCHF, for example, I do want the ability to trade it. Needless to say, when I discovered that I couldn't trade the GBPCHF and the GBPJPY with that broker, I moved my money immediately.

Difficult to withdraw money

Another thing some brokers do to keep your money with them is make it an act of god to withdraw your money. Whenever you start trading with a broker, you should start by putting a small amount of money in first to test them out.

Do some trades and deposit and withdraw from your account. If they give you a hard time, move.

My vote for best forex broker

I'll get to the point…my favorite forex broker is oanda. They are really easy to deal with and I have not have any of the issues listed above. They offer metatrader for excellent charting, but that is not always good for day trading. If you are a day trader, I have found that their java platform works very well.

One thing that separates oanda from other brokers is the fact that you can trade nano lots. What does that mean? Well, in plain english, that means that you can tailor your lot size all the way down to $0.01 per pip. That will allow you to take almost any trade with almost any sized account, while still using proper risk management. Even with mini lots at other brokers, you may still be over trading with one mini lot in a small account.

Trading nano lots for $0.01 per pip will allow you to take a trade with a 100 pip stop in a $100 account and still only risk 1%. Try doing that at any other broker.

You can integrate oanda with mt4i and myfxbook for automated trading reports. Oanda also has some of the lowest spreads in the industry. This is one of the main reasons I trade with them instead of with some of the other big brokers.

Above all else, they are financially stable and meet all financial requirements (last I checked). Of course, there is no guarantees with any company, but my research showed that they are one of the best.

Again, there is no benefit for me to mention this, but I do because I have had a great experience with them. Which broker is your favorite and why?

Top 7 of best US forex brokers for 2021

Top rated:

Are you searching for the best US forex brokers?

Luckily, our team of professional forex broker reviewers can take care of your every need.

Let alone the best forex broker in USA, our team realizes it is tough to find any broker which offers a trustworthy, and still value for money proposition when you want to trade forex in the USA. Forex brokers accepting US clients may be few and far between, but we have combined years of experience to narrow your selection down to the top five brokers.

These five are among the best forex brokers USA has to offer.

In fact, they are some of the best forex brokers for residents of any country. These brokers will ensure you feel safe, secure, and still have the ability to prosper in your trading career. They have been selected as the best US forex brokers for a variety of reasons.

Among these reasons are the amount of trading support they offer you, they wide range of markets and instruments that are available for trading, and the very competitive pricing and fee structure offered by these top forex brokers.

Is forex trading legal in the USA?

As a forex trader in the US, one of the most important questions you may be asking yourself from the outset surrounds the legality of forex trading in the US. Well, we are pleased to tell you that yes, forex trading is legal in the US. In fact, the US has several top financial regulators providing the best protection to you as a trader. These bodies are FINRA, the SEC, CFTC, and NFA with the latter two being the main regulators when it comes to forex trading and trading in derivatives such as futures. Remember also that cfds trading in the US is not permitted.

How to trade forex in the USA

The process of getting started with a forex broker in the US is typically similar to that of any other country. With any top broker you will usually be asked for the following information:

Proof of identity. A passport is typically best for this purpose.

Proof of residence, usually in the form of a bank statement at your current address.

Once these documents are uploaded and verified, a process that takes most forex brokers just a few minutes, you will be free to get started trading forex.

Top 7 forex brokers in the USA listing for 2021

Here’s our list of the best US forex brokers:

1. Forex.Com

When it comes to US forex brokers, forex.Com has to be an immediate consideration for opening your forex trading account in the USA. They are CFTC licensed and NFA regulated (#0339826) and provide a selection of flexible and accessible account types with low spreads starting from 0.2 pips, including their direct market access account. This offers some of the most unbeatable spreads among any of the forex trading brokers USA. They also provide extensive trading options in all of the top forex currency pairs, metals including gold and silver, as well as futures trading. When it comes to forex brokers accepting US clients, forex.Com certainly offers among the most comprehensive range of services to their US-based traders.

The forex.Com minimum deposits starting form $1000 on standard, and commission accounts, and $25,000 on DMA accounts with demo accounts available. There are also a range of other great benefits such as cash rebates and reduced or no fees for active traders.

2. IG markets

With over 40-years in the industry, IG markets is a true pioneer of the industry, and among the most long standing forex brokers accepting US clients. The broker has evolved continually, keeping the requirements of US-based traders as a top priority. These can be traded on MT4, the mainstay trading platform for top US forex brokers and traders from all around the world as well as being both CFTC licensed, and NFA regulated (#0509630). IG markets offers one type of account to all traders and this has a minimum deposit requirement of $250.

Accessibility with IG is also excellent, you can engage with a number of top professional charting packages using your desktop, phone, or other smart device. Beyond the USA, IG markets also featured in our top 10 largest forex brokers australia. This showcases their global appeal to traders. This appeal is further enhanced by a great cost of trading on more than 90 forex pairs with spreads starting at 0.8 pips.

3. Interactive brokers

You will very often find interactive brokers among our lists of top forex brokers. This is also true when it comes to our choice of top US forex brokers. This is thanks to a number of positive aspects which the longstanding broker uses to attract clients around the world. These include an excellent proprietary trading platform which offers some of the most advanced trading tools available on any market, and a widespread list of products which are available at highly competitive rates. These products include currencies, options, metals, and indices within a list which is ever increasing. IB are a FINRA member and regulated by both the CFTC and NFA (#0392970), as well as the SEC (#8-47257).

They have two account types, you can choose the IBKR lite, or IBKR pro both at no minimum deposit though the pro account has a $10 maintenance fee. As mentioned the product range is excellent as is the trading cost with spreads from 0.1 pips on 105 forex pairs. All of these features make IB a top choice particularly for experienced traders.

4. Oanda

Oanda is also making progress toward becoming the best forex broker in the USA. The industry leader is making progressive inroads in the US market, and now offers trading in more than 70 diverse forex currency pairs. This is more than enough for you to trade successfully. Added to this, you can also benefit from the powerful educational and research infrastructure oanda provides. This includes marketpulse, a selection of news, technical analysis, and research resources which are provided by the in-house oanda team. This can combine perfectly with our own online investment guides and educational content. Oanda are also well-regulated by both the CFTC, and NFA (#325821) offering traders two account types.

The standard account type is attractive thanks to the fact it has no minimum deposit, while the premium account requires a $2,000 minimum deposit but has benefits like lower spreads and other costs. An unlimited oanda demo account is also available. The broker also use the much respected MT4 trading platform for trading in all 70 forex pairs and more at a very competitive spread starting from 0 pips. All traders but particularly newer ones, seem to fit well within oanda.

Best forex brokers for beginners in 2021

What is forex trading?

What is a forex broker?

To learn more about the basics of trading forex, we recommend the school of pipsology alongside the NFA's trading forex booklet.

The best forex brokers for beginners

Here's a summary of the best forex brokers for beginner forex traders.

Plus500 - best for beginners overall

IG - excellent education, most trusted

Etoro - best trading platform for copy trading

Avatrade - quality educational resources

CMC markets - best web trading platform, excellent education

XTB - best customer service, great education

OANDA - quality research, user-friendly platform

Best for beginners overall

Excellent education, most trusted - visit site

Best trading platform for copy trading - visit site

Quality educational resources - visit site

Best web trading platform, excellent education

Best customer service, great education - visit site

Quality research, user-friendly platform

Educational materials comparison

Taken from our forex broker comparison tool, here's a comparison of the education features for the best forex brokers for beginners.

Feature	plus500	IG visit site	etoro visit site	avatrade visit site
has education - forex	no	yes	yes	yes
has education - cfds	no	yes	no	no
client webinars	no	yes	yes	yes
client webinars (archived)	no	yes	no	yes
videos - beginner trading videos	no	yes	yes	yes
videos - advanced trading videos	no	yes	yes	yes
investor dictionary (glossary)	no	yes	yes	yes

How much money do you need to trade forex?

What are the most popular currency pairs?

Can you get rich by trading forex?

How do I start trading forex?

How do I choose a forex broker?

Which forex brokers accept US or non-US clients?

The best forex trading platforms for beginners

Plus500 - webtrader

IG - IG web platform

Etoro - etoro copytrader

Avatrade - avatrade webtrader

CMC markets - next generation

XTB - xstation 5

OANDA - fxtrade

Methodology

Forex risk disclaimer

Plus500uk ltd is authorised and regulated by the financial conduct authority (FRN 509909).

IG - 76% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you can afford to take the high risk of losing your money.

Fxdailyreport.Com

Top and The Best Forex Brokers In USA 2019 Regulated By CFTC and NFA

When trading currencies in international markets, it is crucial that you choose a reliable forex broker to succeed. Make sure to choose a forex broker that combines value trading with the right selection and state-of-the-art tools. Here are a few tips to help you choose the best forex brokers accepting US clients:

The first and most important factor to consider when choosing a forex broker to trade with is security. Some of the factors to consider to ensure your money is safe includes;

You want your trading capital to be safely deposited and handled with a forex broker that is overseen by a relevant financial authority. In the US, find a broker that is regulated by the national futures association (NFA): the NFA is the main regulatory agency responsible for regulating forex trading. It oversees the regulation and supervision of all fx brokers in the US. The broker should also be registered with the US commodity futures trading commission (CFTC) as a retail foreign exchange dealer and futures commission merchant.

Check the broker’s regulatory body on their website before doing any other thing. Working with a regulated broker also ensures that your withdrawal or deposit request fast and hassle-free.

Recommended US forex brokers regulated by NFA and CFTC

FOREX.Com

Make sure to choose a forex broker whose domicile is in a country with a well-developed financial regulation. This legal structure can help you recover funds if an issue arises. So, ensure that you check the domicile of the company even if the firm looks reputable. Otherwise, choosing an online broker based in a poorly regulated country may not be in your best interest. Trying to exert your legal rights in a foreign jurisdiction can prove a daunting task as there is no regulatory oversight in the background to support your effort.

Always check the broker’s financial security before hiring as you want to choose one with great financial backing. Choose a online forex broker that is well funded or has a trusted owner or parent company. You can find this information on the broker’s official website on tabs like “about us” or “press releases.” you can also check on the regulatory body’s website.

Transparent and low commission structures

The costs associated with forex trading can be hard to analyze. Also, they can impact a trader’s returns significantly over the long term, especially if your trading strategy calls for frequent trading. Therefore, it is crucial that you deal with an fx trader with a transparent and low commission structure.

However, it is important to note that while a trader with low marginal costs may save you some money in the long term, more expensive traders tend to offer better customer service among other helpful services, including educational materials, trading tools, and market analysis.

Suitable and reliable trading platform

Another important consideration to make is the trading platform that the potential forex broker works with. This is because the trading platform will be your interface with the market. Therefore, it needs to be intuitive and easy to use. It should also have high speeds to allow for quick execution and enable you to react promptly to any market changes.

Always make sure that your broker offers you a platform that best suits your needs. For instance, if you are always on the move, you should look for a broker whose platform has a mobile app to allow you to manage your trades.

Finally, always choose a broker with top-notch customer service. Since forex trading takes place 24 hours a day, you need to find a broker who offers customer service 24/7. Check to see whether their support is offered as one on one or through automated responses. We highly recommend a broker that offers one on one support as opposed to automated since they may not address your needs adequately.

Call the brokers directly to see who will pick your call promptly and the quality of customer service they will offer. If you are dissatisfied with the level of services offered by a particular broker, move on to the next and settle for the one who will offer quality and satisfactory service.

As a trader, it is crucial that you vet as many forex brokers as possible before arriving at a final decision. This will help you choose a broker that offers exceptional services that match your expectations.

The best forex brokers in africa

Forex market is very competitive and of course, choosing the right FX broker can be overwhelming. There are certain qualities everyone has to look for.

In this case, we talk about security – which means verifying your broker’s credibility through global agencies is a must. Also, look at how easy your broker allows you to deposit your profits. Everything that you can mark with green will give you more confidence and trust in your broker.

By analyzing the trading platform of your broker and the way he responds to you, it’s what will help you decide if your choice was right.

TOP forex brokers in south africa

In south africa foreign exchange trading is very popular. It is also known that the country has an excellent system that protects from fraud. But as a fact, the practices of foreign exchange trading in south africa are quite small. Which of course, means that the forex business in this side of the world is continually in the phase of growth. Generally, the field of finances in south africa seems to be very forthcoming for FX trade because of the very loose, legal and economic regulations.

Many worldwide known brokers offer their financial services in south africa. Have a look at this TOP 5 list:

The norm to select a convenient forex broker may include options such as the existence of small and mini accounts for new people that are interested in forex, a component of social trading and the trading platforms that are offered. It may be a good option as well to verify if the broker asks for commissions for the trade and if there are appealing rewards and the chance of growing more for the new people interested in forex trading.

Financial services board

The financial services board – also known as FSB represents the organization whose service is to protect south africans in the finance field, other than the banks. Whenever you choose a broker, a good thing to do is to check the FSB financial service providers list to see if your broker is in that list. Regulators make sure that the brokers are following the law, and they also provide insurance for the trader’s funds.

Other licensing authorities

Most south african traders choose trading platforms certified by other licensing authorities, the most outstanding being the european regulatory agencies. The most trusted, and most popular, agencies are the cysec (the cyprus securities and exchange commission), FCA (UK’s financial conduct authority) and ASIC (the australian securities and investments commission).

History of forex in africa

Although some of the traders might know about forex’s existence since the first beginning of the internet, it was around for a much longer time. However, the presence of forex’s can be slightly seen back to the time when the gold was, and it was the standard in the money system of the world, which started in the years of 1875.

However, at that time, not every country has joined this type of trade. It has not passed more than 16 years ago since south africa started it’s the trading activities of currency. This is near the same time when their local organizations began to give away the money exchange to the offshore brokers through the ways of the self-directed traders.

Moreover, it also happened during the same period that there didn’t exist any regulations that impeded organizations or individuals from starting up their online businesses. Unfortunately, the starting of these activities were not successful since it led to a lot of millions of rands being lost due to fraud. As a result, the appropriate regulations have been established since then to prevent scams and other unfair things related to money to happen again.

Why is forex training necessary? In this field, people need time to become professionals. Everyone has to do some exercise, by it as little as it can be. Some of the benefits of undergoing these training include acquiring basic skills where the people can be able to make the right decisions based on the fluctuations in the market and the end, minimizing the possibility of losing money. Understanding the terminologies that are difficult for the average person and getting the knowledge to make proper judgments is another thing the training offer to people.

With the right skills, a person will tell whether a broker is legitimate or not. The knowledge will also allow a person to work by not having problems with the law.

Why forex trading is so popular in south africa?

There are several reasons why the number of people in south africa that are participating or are interested to join in the foreign exchange trade business got higher:

Due to south africa’s financial place in the world – it may not be as high as euro and dollar, but the south african rand is not a weak currency. The rand is one of the more prominent coins in africa, and its position in the global charts of forex trading is quite high. This results that during the foreign exchange trade, the chances of being at a loss because of weaker currencies are meager.

Most accounts of trade favor south africans – in case an investor in south africa chooses to open a trading account with USD, EUR or GBP, the exchange rates will often be just right. This is mostly seen when withdrawing profits to their accounts. This way, people engage in forex trading without the fear of having their earnings cut by a high amount due to loses in trading.

Foreign exchange in south africa has much freedom – compared to working a 9 to 5 job or at the office, forex trade in the country gives a lot of freedom to those that want to invest. The work can be done in your own’s comfort zone and no need to limit daily life activities. Also, there is no reason to take the time to go every day to work on the busy streets of the morning, meeting deadlines that test your limits and there is also no one to report all the things you do too. In this way, forex trading in the country allows you to be your boss. You have the opportunity to manage your time, and you can also be with your family and friends as well.

You can get well paid by the trade – A lot of people in south africa are engaging in forex trade, and later they make it to be their part-time job or just for fun. They can earn enough money from trading that allows them to even pay their bills such as water, rent, electricity and so on. Many people can use it as a platform where it’s possible to become wealthier and make their lives a bit better.

You have the opportunities to measure the risks and profits -those who choose to participate in forex trading and happen to live in the country have a lot of varieties to choose from. Nowadays, not only the importers but also the exporters have different choices that allow them to check and balance the risks and the potential earnings before engaging in any of them. By following this approach, they can take the right decisions that in no way will damage their private life and the budget.

Risks

The determination process of the price

It is very complicated because trading forex means that the currencies have to be exchanged and there must be a method that determines the rates. However, the prices keep on changing, depending on the region and how the south african rand is doing at the moment compared to the other dominant currencies such as euros and the dollars.

The potential risk is also huge

Compared to any other job that gives a high paying and it has to invest in it, the forex trading also has its potential risks. For example, a trader has a lot of uncertainty that a currency will give or not a big profit. Moreover, most people that invest and work remotely in the country don’t have enough knowledge about how the foreign exchange market is acting, a higher risk building this way. This risk factor makes many people want to invest less money because the thought of losing too much scares the people of south africa away. And as easy as you can earn them, as easy you miss them too.

Rules of forex trading

Engaging in forex trade also has some rules. Those who want to join in forex have to follow the given set of rules made by the government side. Some of these rules include the following:

The law demands the citizen to get a reliable & licensed forex broker who will help in the deal.

There are limitations of the forex that may be taken seriously such as transporting real foreign currencies inside the country, which is different from forex trading online.

Also, for someone to stock their account with more than R1 million, the tax clearance certificate must be first acquired.

In cases where must be transferred more than R10 million, the person has to first apply to the financial surveillance department.

Forex regulations overview in kenya

Kenya canceled all exchange control laws in 1993 and changed to a fully market-determined exchange rate system. There aren’t any controls on foreign exchange, and this policy has attracted short-term capital influx.

But nowadays, the kenyan authorities now will be able to not only license the brokers but also obtain information on all the financial activities to protect kenyan investors. At the moment, kenyan authorities are not aware of how much money is in circulation in forex online business in kenya. A fact is that forex trading in kenya is growing at high speed, hence boosting concerns for regulators in the country.

Forex regulation overview in nigeria

While in nigeria, currently there aren’t local reliable brokers. The easiest option for nigerian traders to enjoy potential profits from forex is to use the services of a broker based in a foreign country. The good news is that many international brokers will let you conveniently deposit and withdraw funds.

How to choose the right forex broker?

When selecting a FX broker or binary options platform, one of the primary and essential things to think about is to check if the broker is regulated by FSB (local market regulator) or not. In case the broker is not restricted, don’t let it be even a passing thought to open an account with the broker, as you might have to face many inconveniences, mostly because there are many scam brokers out there that come from other countries with the thought of getting your money which you didn’t earn easily.

The main task of the FSB is to regulate all companies that provide financial services in south africa. The institution has significant and reliable power, enough to punish those brokers that fail to adapt to other rules. The brokers can even get their license taken away. One of the main objectives of the regulator is to make sure that only certified brokers will offer investors fair and transparent services. So, if you choose one of the FSB approved brokers, you will be able to trade way more safely and assured, than if you bought with some shady, unregulated broker.

Other things to think about would be to find a broker that gives a nice, easy to use, user- friendly platform. A commission and spreads are as well very significant as you might not want to be charged hidden fees by the time all trustworthy brokers will give you a small, fixed amount or variable spreads. There must be a lot of different types of accounts you have at your own choice, because the more, the better. If the broker is not there to help you, you should also not be there with him, sending currencies in his company. Customer service is essential, and as a final note, extra useful services are a big thing in deciding which broker to choose.

In the end, forex trading is one of the ways through which people can make income from the side. In south africa, people continue to like the idea and get more interested in online investments. Many advantages come with engaging in this activity, as told above. Working from home and not having to report to any boss is a big advantage, isn’t it? Also, it is a well-paid job if you know how to play your cards well and there are no time limitations.

You know you have all the time in the world to trade forex, so there is no need to rush it. Firstly, you need to eliminate one problem, which is to find a good and reliable broker. Now, you have an idea of how to do that: by checking whether the broker is regulated and what kind of services can be offered to you. Of course, trading is always a risk, and you should be ready to lose, but if you have done your research well, success will come in your trading sooner or later.

How to choose the best forex and CFD broker

The forex market is the world’s largest financial market with a turnover in excess of around $4 trillion a day. Despite its huge size, this market has no central exchange for forex traders to conduct their transactions. Instead, forex traders must conduct their trading activities through an intermediary, the forex broker. This shows the importance of the broker’s role in the trading process. When it comes to choosing a broker, traders have literally thousands of forex brokers to choose from on the internet. But the real question is how can you be certain that the broker you have chosen is the right fit for your trading needs.

To help you in your broker selection process, we have prepared a guide with a list of key factors that you have to look at when choosing a broker.

Guide sections

Regulations

The first thing that you should look at when selecting a broker is to see if the broker is regulated by a competent regulatory agency(read more about forex and CFD broker regulations). By dealing with a regulated broker, you can have the assurance that the broker has met the operating standards imposed by the regulatory body. Some of these standard regulatory requirements include having adequate capitalization and maintaining segregated accounts in order to protect the clients’ funds. Additionally regulation offers fund protection should the firm become insolvent and ensures the broker is upholding rigorous standards as a financial service provider.

Countries that have financial regulatory agencies that are backed with strict regulatory enforcement include:

Australia (ASIC)

Eurozone (mifid and local regulators)

India (SEBI)

Japan (FSA and JSDA)

Switzerland (FINMA)

UK (FCA)

USA (CFTC and SEC)

Trading platform & software

As the trading platform is your gateway to the market, you want to ensure that the trading platform that you are using can be relied upon. Most brokers will offer traders a selection of trading platforms to choose from. Most of the time, the trading platforms are provided by third party trading solutions providers such as metaquotes software. There are also some brokers who have taken to developing their own proprietary trading platforms in an attempt to differentiate themselves from other brokers in the industry. Often times, these proprietary platforms are the best platforms to trade with as they are specifically designed by the broker’s client base.

Nevertheless, a good broker should be able to provide a good selection of platforms. This is because some traders prefer to trade from the desktop computer and some traders prefer to trade from their smartphones. It should be noted that the most common trading platform that you will find among the different brokers in the industry is the metatrader 4 platform. It is estimated that at least 85% of brokers in the industry uses the metatrader 4 platform. So this means there is a very strong possibility that this is one of the platforms that you will be using.

Additional features

Look at the features which the trading platforms have to offer. Do they come with:

Comprehensive charting package

Wide range of technical indicators

One click trading on the trading platform

Risk management tools such as stop loss order and trailing stops.

While all these may seem trivial initially, they will later play a crucial part in ensuring that you will get to enjoy a seamless and productive trading experience.

But when it comes to platform selection, it is really a matter of personal choice. Most of these platforms will have the same basic features. The best way for you to find out which platform is right for you is to try them out with the demo account provided by the broker. For those brokers that do not provide a demo account, they may not be worth considering.

Commissions & spreads

This market unlike other traditional financial markets mostly operates on spreads rather than commissions. This is the reason why most brokers advertise their services as being commission free.

So how do brokers make money?

Simply, they earn by charging traders a spread. The spread is the difference between the buying price and selling price. For example if the bid & ask price for the EUR/USD currency pair is 1.0875/1.0878, this means the spread is 3 pips.

As a forex trader, you will come across 3 kinds of trading cost structure charged by a broker:

Fixed spread – where the spread is not changing and you know the spread amount before you trade.

Floating spread – this spread is variable and always moving depending on the market volatility.

Commission fee – this is calculated as a percentage of the brokers spread. You should be aware of the amount payable before you trade.

Generally for traders looking for certainty with their trading costs, fixed spreads will be the preferred choice. Traders who are looking to pay a smaller spread would prefer floating spreads. Ultimately as to which is better will depend on your specific trading needs.

The kind of spreads that you will receive depend to a large extent on the kind of business model the broker is operating on.

Broker’s business model

In the course of your search for a broker, you will come across terms like “STP”, “ECN”, “NDD” and “market maker”. All these terms are in fact used to describe the business model which the broker is operating by. So what do they all mean?

There are two major types of broker – dealing desk and non dealing desk.

Dealing desk

Forex dealer or market maker processes their clients trading instructions through a dealing desk within their company. A dealing desk broker takes the other side of the trade to you, meaning when you open a position like the EUR/USD the trade will be executed by the broker and they are then exposed to that trade.

Non-dealing desk

A non-dealing desk (NDD) broker passes the trade straight through to a third party. There are two kinds of NDD broker (ECN and STP). They are both essentially the conduit between you the trader and the market maker or dealer.

With the first type (ECN) when you press “buy” on your trading platform, your trade orders will be processed on the broker’s computer trading system automatically and transmitted through the electronic communications network (ECN) without a dealing desk (this is where the term “non dealing desk” (NDD) comes from).

With the second type of NDD broker, upon receiving your trade orders they will pass the trade orders directly to another party to be executed by the market maker’s dealing desk. In this instance, the broker is known as a straight through processing (STP) broker.

Both the forex ECN and STP brokers are intermediaries to several dealing desks or market makers in the global forex market. Market makers or dealers will transmit their pricing to the ECN or third party liquidity provider together with the volume which the quote is valid for. The ECN/STP will in turn distribute the pricing to traders/market makers linked to the system. It should be noted that the ECN/STP does not execute trades but rather acts as the conduit for transmitting the trade orders from the trader to the dealing desk where the trader took the price from.

Why is this important?

The business model of the broker is important as this will affect the kind of spreads that you will receive and whether the spread will be fixed or variable.

Forex broker for beginners

For beginner traders, look for brokers with the following qualities:

Comprehensive trading education resources – many brokers supply a suite of education materials to help push traders into mastering their skills. These usually include webinars, videos, courses, guides and articles.

Unlimited access to the demo account for practice trades – most if not all forex brokers supply demo-trading accounts to their clients. This is particularly useful if you are new to the world of forex trading or if you’d like to test-drive a broker’s platform before you trade for real.

User friendly trading platform – there are a whole host of trading platforms on the market, some more complicated than others. As a beginner trader you will not need a complicated platform with features like EA’s and complex trading strategies. That comes later, but now you should be looking for a platform that is fast and simple to grasp.

Forex broker for professionals

For professional traders, their trading needs differ significantly from those of a beginner trader. Generally, professional traders prefer brokers which can provide them with:

Comprehensive trading tools – as a professional trader you will now need a variety of tools including commission calculator, economic calendar and of course complex live charts in order to implement trading strategies.

High leverage – not for the faint hearted, professionals will seek to use leverage in order to multiply their capital. Leverage increases the risk and equally increases the reward.

Low spreads – if you trade a lot you want to ensure that your spreads aren’t eating away at your capital. It’s important to check the spreads payable before you select a broker, usually the greater the account type you take the lower are your spreads.

Forex broker for day trading

Generally for a day trader, most brokers will be able to meet their trading needs. However given the shorter time period with day traders are trading with, it is best that the broker is able to provide a diverse range of instruments for the day trader to scout for trading opportunities. These can include a signal service, tools like an economic calendar, updating market news and also earnings reports. As you will probably be placing more short term trades make sure that you are aware of the spreads before you trade.

Forex broker for scalping

Scalpers are traders who hold their market positions for an extremely short period. While they only hold a market position a short period of time, the frequency of their trades is higher than the average trader. Their objective is only to make a small profit on all the trades that they make spread across a large number of trades. Note that not all brokers allow scalping. As such if you intend to trade as a scalper, you should always check with the broker that you intend to sign up if they allow scalping.

Account types

The majority of the forex brokers in the industry offer traders a selection of trading accounts to cater for different categories of traders.

Micro account – the smallest type of trading account is the micro trading account where one trading lot is equivalent to 1000 units of the instrument traded.

Mini account – the next type of trading account higher up the hierarchy is the mini account where one lot represents 10,000 units.

Standard account – the standard account is where one lot is equivalent to 100,000 units.

With the micro and mini account, only a low minimum initial investment is required to let you start trading. With the standard account, although the minimum investment may vary from broker to broker, generally you will need a higher amount of trading capital. Given the varying minimum investment for each type of trading account, you should select the trading account that is commensurate with your investment capital.

Customer service

Most beginner traders tend to forget to factor in customer service when making their choice of the broker to sign up with. They may not realize the importance customer service plays in their overall trading experience. With customer service, it is not whether you will ever need their assistance but rather a question of when you will need their assistance. Because regardless of how experienced or knowledgeable a trader might be, there will always come a time when assistance from customer service is required. When that time comes, you want to be able to get in touch with the support team without any difficulties. So it is important to check if the broker that you intend to sign up with is able to provide you with reliable customer support.

Check to see if there are multiple ways of contacting customer support. Most brokers will provide their clients with several ways such as email, live chat and telephone for their clients to get in touch with customer support. In short, you don’t want to be in a position where you have to spend countless nights worrying about what your broker is going to do with your problem.

Value-added services

In an industry as competitive as the online forex trading industry, some brokers will try to distinguish themselves from other brokers, by offering additional value added services such as free market analysis, real time news feeds and trading signals. Most of these value added services are provided free of charge but there are some brokers which may require you to deposit a minimum amount before you can have access to these services.

Questions to ask the broker

If you have any general questions regarding brokers we can usually advise and recommend, however for more specific information you can read our broker reviews for deep insight. Our video reviews cover many aspects of the trading cycle. Please note, it is important that if you have any doubts about a broker’s product offerings or service, by asking the right questions you can clear up any ambiguity that you might have before they develop into an issue later after you sign up.

The kind of questions that you should ask include:

How the broker maintains the safety of your funds

The broker’s regulatory status

The range of instruments that is available for trading

Their business model

Their customer service hours

Their deposit and withdrawal process and whether there any fees involved

Whether there are any conditions attached to the value added services provided

Check our broker filter tool >>> FX empire is perfectly placed to help our readers choose reliable CFD brokers to work with. We have compiled this resource, which looks at all the key factors a trader should consider before selecting a broker to work with. We hope you find it useful.

How can I choose A broker?

We are here to help with that! Check out our list above and choose the most suitable broker for you.

Should I pick a regulated broker?

Yes, you should try to pick a regulated broker to work with. This ensures recourse in the event of a dispute or should your broker face insolvency. Remember by using a regulated broker you will also have access to an investor compensation fund, which insure your deposit up to a certain amount.

What else should I look at when selecting a broker?

You should look at the range of platforms on offer and even ideally test-drive the platform you may wish to use. Take a look at the additional resources being offered by that broker eg. Signal service, educational tools, copy trading. Finally remember to find out about spreads, and account types before you place a deposit.

Conclusion

As noted above, there are many factors that you have to consider when selecting your broker. Nevertheless with the help of this guide that we have provided, you should be able to see which broker is better suited to your needs. To further facilitate your search, we have also conducted in-depth reviews and vetted each of the brokers in our recommended list to ensure they meet up the right standards. Once you have found the right broker to work with, you can focus more on your trading activities and trade more confidently thereby increasing your chances of success trading the market.

Click here to discover the best forex and CFD broekrs

so, let's see, what we have: in our review of forex and CFD broker offerings, we spent endless hours opening demo accounts, navigating forex platforms, conducting market research, testing website usability, as well as watching educational videos and webinars. At which broker is the best for forex?