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Best Forex Brokers 2019 : Comparison of Top 7 Forex Trading Brokers

Last Updated: 08. October 2019
Best Forex Brokers 2019 : Comparison of Top 7 Forex Trading Brokers
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Looking for Best Forex broker reviews ? What is the best Forex broker for beginners?. In this article we have compared the top 7 Forex trading brokers. Online Forex brokers are financial firms that provide Forex traders access to buy or sell currency pairs online. This is made possible by providing traders access to trading platforms that create an interface between the trader and broker (market makers), or between the trader, broker and the Forex interbank market (ECN/STP brokers).

Best Forex Brokers 2019

In the mid-90s, there were no individual or retail Forex traders. The Forex market was exclusively for big banks, hedge funds or high net-worth firms. This is because it was capital intensive with minimum trading size was $1 million. With time, the market was decentralized and access was granted to investors with smaller capital. The liquidity gap created by the smaller capital from retail traders and the large trading requirements of the interbank market was filled by market makers.

Today, we have numerous online Forex brokers operating from different parts of the world. With as little as $1, individual traders can access the Forex market from the comfort of their homes.

Note: The idea of going through the hundreds of Forex brokers in a bid to come up with a suitable broker can be overwhelming. However, before settling on a broker, be sure to ask you self a few questions: Is your broker secure? Are you fine with their costs and fees? Do they offer your preferred trading platforms such as MT4 and above all, how easily can you access your invested capital.

Factors to Consider in Choosing an Forex Broker

  • Minimum Deposit Requirement

How much is required as a basic minimum to open an account? You need to consider how much money you can spare to start off a Forex brokerage. Usually, traders are advised to make a transition from a demo account, to a small live account and ultimately a larger Forex account. Many Forex brokers now have very low minimum deposit requirements; some as low as $10. This is great for the transitional live account which new traders with budgetary constraints will find useful. Some accounts (such as STP accounts) may require as much as $50,000 as the minimum deposit. If you are a trader who has such money and wants to trade with an ECN account, then this is the direction to go. So knowing your minimum deposit requirement will help narrow your search.

  • What are the spreads and commission structure like?

How low are the spreads and commissions on one FX broker’s platform when compared to another? Spreads and commissions are a trader’s business costs. Obviously, the lower the costs, the more profit can be retained. Spreads need to be kept low and competitive. Imagine trading with a broker which offers a spread of 1.4 pips for EUR/USD and another which offers 0.8 pips on the same asset. The difference of 0.6 pips, on 50 Standard Lot trades in a month ($10 per pip), equates to a savings of $300. Trade this in a year, and this goes up to $3,600. Can you see the impact that a decision as simple as broker choice based on competiveness of spreads can make?

  • Does the Forex brokers offer swap-free accounts?

If you are a Muslim trader (and there is a large population of traders of the Islamic faith in the MENA region) and you want a swap-free account which complies with the tenets of the faith, then you would want a broker that offers this option. So this is a key point of consideration in broker selection.

  • Is the Forex broker regulated?

Regulation in the forex market is all about trader protection. You need to have an independent body you can go to if you are not satisfied with your broker’s services. This underscores the importance of making sure the Forex broker you use is a regulated broker.

  • What has been the experience of other traders?

A very good way of knowing what your own experience on a brokerage platform will be like is to get first-hand information about the experience of other traders on the same platforms you desire to use. Such information can be obtained from online forums.

  • Quality of customer support among Forex Trading Brokers 

In order to avoid frustrating experiences later on, it is good to know if your preferred broker has good customer support, or whether the customer support staff treat their clients as if they are doing them a favour.

How Forex Brokers Are Rated – Top Rated Forex Brokers 2019 

This article will present a list of the Best Forex brokers for 2019 that you can use now. But how were these brokers selected and rated? These points present the basis for our broker selection.

a) Regulatory Forex Broker Status

All the brokers in our list are regulated and in good standing with regulators. They present their traders with trader insurance in the form of investment compensation fund registration with the respective regulators.

b) Ease of Software Use

The brokers in our list present their traders with trading software and applications that are easy to use and which do not present obstacles to the trader’s profit potential. Trading software should be user-friendly. They should not constitute an extra layer of work for the trader to unravel before engaging in core trading.

c) Presence of Mobile Trading Apps

Some trading opportunities come at the most inopportune of times. It is only with mobile trading apps that these times can be converted to periods of opportunity. All brokers in our list allow their traders to trade on the go with easy to use mobile applications and website interfaces optimized for mobile devices.

d) Trader Education

Traders come to the market with little education about trading. Providing their clients with proper market-based education boosts the trader’s knowledge of the trading platforms, the forex market itself and also simple processes involved in the trading process.

e) Market Research

Market research is a critical tool for profiting from Forex. The brokers in our list provide outstanding market research using in-house experts and also in partnership with Trading Central.

f) Ease and Affordability of Account Opening

Account opening is a breeze with the brokers in our list. Some of them allow you to open accounts using your existing email or social media profiles.

Top 7 Forex Brokers for 2019 – Best Forex broker for beginners List !

The list below represents our top 7 forex brokers for 2019. These brokers have stood the test of time and have provided extra features that benefit their clients.

1) Plus500 : Web-based Forex Broker,  CFD Trading Forex Broker

Founded in Israel over a decade ago, Plus500 has earned a spot for itself on the list of top Forex brokers of 2019. This is due to its technological innovations, consistency and global mission which have led to its expansion. Today, the broker is listed on the London Stock Exchange and it is also part of the UK FTSE 250. It boasts of over 300,000 clients from all over the world.

Plus500 is regulated by the FCA in the UK, CySEC in Cyprus, ASIC in Australia and ISA in Israel. The company employs the use of modern security best practices to secure user information and create a safe trading environment.

The proprietary Plus500 trading platform is available as a WebTrader, a downloadable windows 10 desktop application and also as mobile apps on Android, Windows phones and iOS mobile devices. The platform is simple, innovative and loaded with analytical tools. It features real time SMS and email alerts based on price movement earlier customized by the trader.

Currency pairs, indices, commodities, ETFs, Options and shares can be traded on the Plus500 platform. The EU offering of Plus500 provides a maximum leverage is 1:30 for retail traders while professional traders get up to 1:300. The spreads are tight and no commissions are charged on trades.

Pros
  • Over 2500 assets can be traded on the Plus500 platform.
  • Regulated in multiple jurisdictions.
  • Proprietary platform that can be customized to send sms/email alerts based on predetermined market conditions.
  • No commissions are charged on trades.
  • New clients can integrate their Facebook or Google accounts and use the login details from those accounts on Plus500.
Cons
  • The Plus 500 online trading platform does not support certain strategies like creation and use of trading systems and expert advisors.
  • Traders do not receive any bonuses, rebates or rewards.
  • No training package is available.

3) AvaTrade Forex Broker – Attractive regional offering with local branches all over the world.

AvaTrade is a multiple award-winning broker with a presence across the globe. Regulated across six jurisdictions, AvaTrade has proved itself to be a reliable and reputable broker, hence qualifying as one of our top brokers for 2019. The broker was established in 2006 and the headquarters is in Dublin, Ireland. The tradable instruments available are currency pairs, cryptocurrencies, ETFs, commodities, indices, stock and bonds.

AvaTradeGO is the broker’s proprietary mobile app that is simple yet sophisticated enough to handle all the essential needs of a trader. The MT4 platform is also available.

The Guardian Angel is a customizable trade assistant designed for new or beginner traders. It is an MT4 plugin that alerts the trader on predetermined conditions such as excessive risk, setting stop loss, trading volatility, market conditions, etc. The Autochartist tool is also provided for the MT4 platform.

ZuluTrade, the renowned social trading platform is available through this broker. Clients can copy the trades of expert traders and make profits. Duplitrade; another social trading platform is also available.

The broker also provides trader education via ‘SharpTrader’ which provides training videos and articles for registered clients.

AvaTrade boast of 200,000 traders with over 2million monthly trades.

Pros
  • The broker is regulated across 5 continents.
  • Over 250 trading instruments are available which includes cryptos, ETFs and bonds.
  • Social trading is available via Zulutrade and Duplitrade platforms.
  • Withdrawals can be made with Ava Debit Master Card.
  • Multiple trading platforms across all devices.
Cons
  • The demo account expires after 21 days.
  • The premium account type “Ava Select” has an opening balance of $100,000 which is very high.

4) 24Option FX Broker – Great mobile app with strong trader educational content

24Option was launched in Cyprus in the year 2010 as a binary options brokerage. It had to shut down binary options operations as an EU-wide ban loomed, choosing instead to focus solely on forex/CFD brokerage. The international arm operates from Belize while the European arm operates from Cyprus. They are regulated by the IFSC and CySEC respectively.

The web-based 24Option proprietary platform is intuitive, powerful and packed with trading aids and tools. The popular MT4 platform is also provided. The 24Option mobile app is developed for Android and iPhones and can be downloaded from their respective stores.

There are over 120 tradable assets which include forex, commodities, indices, cryptocurrencies and stock shares.

24option has partnered with “Trading Central”, to bring its customers quality market analysis reports, news, signals, etc. Trading Central is a financial market research firm that specializes in analysis, strategies, information and advice on financial assets and investments.

The broker provides training resources and frequently organizes seminars to equip traders with knowledge to make them more successful.

By offering quality services, intuitive platforms and cutting edge technologies, 24option made its way into the list of top brokers in 2019.

Pros
  • Advanced market analysis from Trading Central.
  • First deposit bonus is available for new customers.
  • Cutting edge platforms loaded with essential tools for analysis and order management.
  • Quality customer support in different languages.
  • Adequate educational resources especially for beginners.
Cons
  • Exorbitant inactivity fees of $40 per month, which increase after 3 months.
  • High withdrawal charges.
  • A monthly maintenance fee of $10 is charged.

5) Naga – AI-driven Advanced Trading tools and a native Crypto coin for alternative investment

Though a relatively new player in the industry, Naga Markets has already achieved the status of a top broker. The brand began operation in 2015 and it is based in Limassol, Cyprus.

The EU arm of the brand is operated by Naga Markets Ltd, a company based in Cyprus while the international brand is operated by Naga Capital Ltd which is based in St Vincent and the Grenadines. Both companies are part of the Naga Group which is a financial technology company listed on the Frankfurt Stock Exchange in Germany.

Naga offer currency pairs, ETFs, index CFDs, crypto assets, futures and stock shares. The proprietary ‘Naga Trader’ platform features a social trading function (Autocopy) where traders can view the trading statistics of experts and easily choose whose trades to copy. The platform also has risk management tools and a charting package courtesy of ‘Trading View’. ‘Naga Cybo’ is a customizable trading robot built into the Naga trader and powered by Artificial Intelligence (AI) technology. The Naga Trader mobile app is downloadable for Android and iOS devices.

The Naga card, powered by MasterCard is a debit card which can be used to deposit or withdraw from your trader accounts. It can also be used for online payments and cash withdrawals from any ATM anywhere in the world.

The Naga Coin (NGC) is Naga’s native cryptocurrency created on the Ethereum blockchain. NGC can be bought or sold from popular exchanges like Changelly, Cryptology, Bittrex, etc.

With cutting edge technologies and secured digital environment, Naga has entrenched itself as a reputable broker. Trusted by over 500,000 clients, Naga is one of the top rated brokers in 2019.

Pros
  • The Crypto Forex broker provides access to trade over 750 tradable assets.
  • Innovative proprietary “Naga Trader” which has garnered industry awards.
  • Regulated by the CySEC.
  • Traders can benefit from Social trading using Autocopy.
  • Access to Naga Card and NGC cryptocurrency.
Cons
  • Account opening deposits are high. Eg. To open the Crystal Trader account requires a minimum deposit of EUR 100,000.
  • No service to traders from USA, Canada, Cuba, Iran, etc.
  • Relatively high trading costs.

6) IG.com USA Forex Broker – Strong Presence in USA, Australia and Singapore

IG is a well known brand in the industry. Established in the UK in 1974, IG provides its services to over 195,000 clients from all over the world. IG is the trading name of IG US LLC which is registered in Delaware, USA with registration number 6570306. IG is a registered Retail Foreign Exchange Dealer (RFED) and Introducing Broker (IB) with the Commodities Futures Trading Commission (CFTC) and member of the National Futures Association (NFA) with the ID 0509630.

The IG Forex broker provides over 80 currency pairs tradable on the MT4 platform, WebTrader and on various mobile devices. IG provides educational courses and a demo account in order to help beginner traders jumpstart their trading career.

The provided MT4 platform comes with add-ons such as the Autochartist tool which scans the market and alerts the trader when it finds trading opportunities. A plugin which extends the features of the MT4 is also provided at no extra cost. The plugin adds over 12 extra tools to the MT4 platform.

Daily analysis, market news and other trader tools are equally provided through DailyFX, which is owned by IG.  With the myriad of technological tools, experience and integrity, IG is one of the top brokers in the United States and the world in general.

Pros
  • Features of the MT4 can be expanded with add-ons for better user experience.
  • The Autochartist assist traders in their daily analysis and trade decisions.
  • Comprehensive IG academy is suitable for new traders for knowledge acquisition.
  • Expert analysis is provided though dailyfx.com.
  • IG is a broker with huge capital base, decades of experience and global presence.
Cons
  • The tradable assets are limited.
  • Deposits cannot be made through PayPal and other e-wallet options.
  • The minimum deposit of $250 is high when compared to other brokers.

7) Forex.com – Best Forex broker for US traders, with solid research team.

Forex.com is a broker that promises to earn traders’ loyalty by delivering extraordinary trading experience with superior execution and low trading costs. Since 2001, the broker has grown in technology, strength and excellence. Today, Forex.com is one of the leading brokers in the United States and the world at large.

USA Forex Broker

Forex.com is an arm of Gain Capital Holdings Inc; a financial investment firm with headquarters in New Jersey, USA and a global presence which spans across Asia, Europe and North America. Gain Capital Holdings Inc. is publicly traded in the New York Stock Exchange (NYSE: GAP). Forex.com is a registered Futures Commission Merchant (FCM) and RFED with the CFTC. It is also member of the NFA.

Over 80 currency pairs, metals and futures options can be traded on the platforms. The Advanced Trading, web trading, MT4 and the forex.com mobile are the trading platforms provided. The platforms are sophisticated, technological and replete with useful trader tools. Forex.com also has an extension plugin which improves the features of the MT4 platform by adding more user tools like market manager, correlation matrix, alarm manager, etc.

The broker also provides market analysis and an organised education centre with lessons categorized for beginners, intermediate and advanced traders. Forex.com is indeed one of the leading forex brokers of 2019.

Pros
  • Regulated in 7 jurisdictions which includes USA, Canada, UK, Australia, etc
  • Ultra fast trade executions on modern platforms.
  • High volume traders can save up to 15% with cash rebates.
  • Advanced charting package powered by Trading View.
  • Access to platform analysis tools from Autochartist and Recognia.
Cons
  • Demo account expires after 30 days.
  • Credit cards cannot be used for deposits and withdrawals.
  • Paypal and other electronic payment gateways like Skrill and Neteller are not accepted.

How Forex Brokers Operate ? Forex Brokers Working Model !

The modus operandi of forex brokers is related to how they execute customer transactions. Here are the popular forex broker models.

i) ECN Forex Brokerage model

Electronic Communications Networks (ECN) brokers give their clients direct market access (DMA). Traders access the interbank forex market directly through the brokers’ ECN network. There is no dealing desk (NDD) and the broker only acts as an agent between the client and the interbank forex market. ECN brokers transmit the actual currency quotes to their clients in real time and the trades are executed at the market. This reduces or eliminates requotes. The spreads are usually very low and in some cases, zero spreads are incurred. This is why most ECN brokers prefer to collect a commission on each side of a trade.

ii) STP Forex Broker Model

Straight Through Processing (STP) brokers are Non dealing desk (NDD) brokers that operate an automated system where trades are routed to liquidity providers for execution at competitive prices. The liquidity providers are interbank forex market participants. Most times, the liquidity providers are top tier brokers, investment companies, payment aggregators or major banks. The advantage of STP brokerage model is that there is more liquidity from different sources; hence, orders are promptly fulfilled. The whole process is automated without broker intervention eliminating human errors, costs or delays.

iii) Market Makers Forex Broker 

These brokers operate a dealing desk (DD) brokerage model. Most market makers quote the bid and ask price with fixed spreads and execute trades by taking the opposite side of a client’s trade. Market makers can adjust the spread, delay trade executions and even manipulate traders’ positions to trigger a stop loss. The advantage of this brokerage model is that orders are executed instantly as it is not routed to another source but executed by the broker. They also charge low trading fees and offer very high leverages.  Because many beginner traders believe the illusion that forex trading can bring quick money, many scam brokers operate this brokerage model. Most beginner traders lose money and these scam brokers easily make the money by trading against the newbie, manipulating trades and closing winning trades. That is why it is always advisable to trade with a regulated broker.

iv) Hybrid Forex Broker Model

This involves the combination of two or more broker models in operation. Most ECN brokers also add a dealing desk to their operations which caters for low volume traders with small capitals. They usually specify different account types and tie the execution type to the account type. The Hybrid model is arguably the best brokerage model as it benefits both the new and professional traders. Expert traders with huge capitals are given special accounts, favourable benefits and have their orders executed at the market. Tyros and low volume traders are offered a dealing desk with instant executions.

FAQs

How do Forex brokers make money?

Their primary means of making money is from the bid-ask spread. But brokers have other means of making money such as charging commissions on trades, withdrawal fees, inactivity fees, etc.

 

How do I choose a Forex broker?

Consider the following factors: security, trading costs, trading platforms, customer service, deposit/withdrawal methods and asset listing. Check the broker’s website for the above listed services. Read broker reviews and try to avoid unregulated brokers.

Why do Forex brokers offer leverage?

Brokers offer leverage so that traders can increase their capital, trade larger currency volumes, make more profits and of course, pay larger trading fees to the broker.

Are online Forex brokers safe?

Yes, especially the brokers that are regulated by reputable agencies like FCA, ASIC, etc. These brokers abide by strict rules in order to provide a safe trading environment for their clients. They segregate traders’ funds from their brokerage funds and use modern security softwares and firewalls to ensure a secure digital environment.

 

What is an ECN Forex broker?

An ECN broker uses Electronic Communications Network to give their clients direct access to other participants in the currency markets. They usually charge a commission for every trade executed.

What is a Market maker Fx Broker ?

A market maker is a broker who acts as a liquidity provider. They have an electronic dealing desk where they execute clients’ orders.

What is NDD?

NDD stands for Non Dealing Desk and it means that the broker does not execute trades in-house, rather it is executed at the interbank market or by a liquidity provider. In this case, the broker only acts as an agent to transmit prices and orders for execution at the interbank market.

What is the Forex interbank market?

The forex interbank market is the forex electronic market where liquidity providers, top-tier brokerages and major financial banks converge to trade world currencies.

 

How can I open a Forex broker account?

Visit any of the broker websites listed above. Complete account opening forms and upload verification documents. The brokerage account will be opened.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
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Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, commodities, forex, indices, bonds, and cryptocurrency investments. She holds a Masters degree in Economics with years of experience as a banker-cum-investment analyst. She is currently the chief editor, learnbonds.com where she specializes in spotting investment opportunities in the emerging financial technology scene and coming up with practical strategies for their exploitation. She also helps her clients identify and take advantage of investment opportunities in the disruptive Fintech world.

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