Top Online Brokers Comparison 2020
For successful forex trading, you have to trade with trusted brokers. However, there are some criteria to find a trusted forex broker as there are hundreds of brokers are available. So, it is time-consuming too. To make the task easier, you can compare some top forex brokers. However, it would be time-consuming too. With that in mind, we did extensive research to find the most trusted and best forex brokers. We had an aim to list to compare the top 10 forex brokers. However, we were able to find the 7 best forex brokers. We have checked each matrix carefully before comparing it. This comparison will help you to choose the best forex broker according to your needs.
While Comparing, We Checked at Least 11 Matrices. They are:
Regulations and Licenses: We have verified each of the broker's regulations and licenses. Checked all the regulatory memberships as well as their required licenses.
Brokerage: We also evaluate their brokerage credibility. Despite having all the regulations and licenses, some brokers may cheat you. So, we have verified through multiple sources.
Spreads: The spread is an integral part of any forex brokers. It is the difference between ask and bid price. Usually, brokers take the commissions from spreads. Higher spreads may provide you with less profit. So, we have listed all the lower spreads brokers while comparing.
Analysis of Fees: Fees are the most crucial part to compare among the brokers. Some forex brokers may charge you higher fees while some may charge less. We considered both with all the other requirements in mind.
Trading Platform: The forex trading platforms are the initial tools to maximize your profit. Our comparison list contains variations of trading platform availability. We picked the brokers with the best platform as well as all the offerings on the platform.
Trading Instruments: We considered trading instruments such as swaps, forwards, futures, options, and spot transactions. These instruments can make a difference in your transactions.
The Range of Markets Offered: We researched about identifying the overbought and oversold currency so that you can choose a broker according to your trading strategy and range.
Leverage: Forex leverage can have a big impact on different territories. It usually involves borrowing some money from the broker to maximize the training amount. So, this also an important factor while comparing as you may need to borrow for potential trading.
Account Types: Forex account types varied from broker to broker. Account type may have an effect on trading. So, we have compared all the account types offered by the brokers.
Research Tools: It is necessary for determining the potential currency to the trader.
Markets and Instruments: We also considered the offering markets and their relevant instruments.
Risk Management: Investing in forex is risky. So, brokers offer many risk management tools or options to reduce the loss. When we compared, we took this as one of the important factors.
As you are aware of the comparison matrixes, Let's get into the individual comparison tables for your easy understanding.
Forex Brokers Rating
Finding out the forex brokers rating is the first step to choose a broker. However, finding an honest rating is a critical task, as the only way is researching online. On the other hand, many websites may publish the wrong rating. As a result, that may misguide you.
To help you with choosing the right broker, we have researched from all the possible sources and found the authentic rating based on numerous criteria. Rating varied from broker to broker. Brokers are rated according to their founded time, the performances, how supportive they are, active traders, and many more.
Furthermore, the rating also measures the broker's reputation and trustworthiness. Rating may go up or down over the years as the forex market is volatile. If any broker's rating goes down, they might seem to provide incentives to the traders to grab more clients. Having more clients mean they are doing good in the forex industry, which boosts their rating.
Our goal is to provide you with an honest rating through our extensive research and skills. So, you can easily choose a broker by looking at the rating before considering other facts.
Considering the fact of recent forex market volatility, we are more alert about the rating and made a checklist of some criteria to cross-check about a broker. Besides, we also interviewed multiple clients about each of the brokers and took their feedback before rating a broker.
So our rating system has minimal or no errors. You may cross-check with other websites if you feel any discrepancies. Let's go through the rating of our selected top 7 brokers.
Forex Brokers Regulation
Forex brokers regulations are another important criterion. It is a form of supervision that every broker has to follow. The regulations include requirements, guidelines, and restrictions in the forex markets. Furthermore, regulations also include ongoing enforcement of the rules and monitor by proper authority.
Regulations ensure the protection of traders from any financial risks. However, there are no centralized regulations available. Instead, each country has different regulations for the brokers. We have checked the broker's location and their relevant regulations while made the comparison table. We also checked if the broker complies with the jurisdictions if their origin country.
The regulatory bodies or jurisdictions go for regular audits and communicate with the brokers to find any violations. So, regulated forex brokers are safe to trade, and we have listed only best-regulated brokers.
Unregulated forex brokers are risky to invest, as you cannot go anywhere if you are scammed. Furthermore, trading with unregulated brokers is illegal so do the brokers. So, it is best to find a regulated broker and trade with them. However, you can try from our listed brokers as we have selected only regulated ones.
Forex broker's regulations are becoming strong day by day as trader's security comes first. Among all the regulatory bodies, the USA has tightened regulations. Furthermore, forex brokers need to deal with top financial organizations and liquidity providers. So, only a regulated broker can provide you with sufficient liquid money whenever you needed. It means there are zero chances that you might get scammed.
As we have mentioned earlier that we have checked all the regulatory bodies to make a list, let's see the comparison for the top 7 brokers.
Forex Brokers Licenses
Forex trading offers high liquidity with frequent trading opportunities. Because of that, forex markets attract money launderers and scammers who can damage the potential market. That is why the forex trading zone is monitored strictly, and all the brokers need to get licensed with the proper authority. As there are no centralized authorities that exist, brokers need to take the license from local designated authorities. Sometimes they need to take a license from one authority, sometimes more than one.
When a broker gets a license from the proper regulatory body, it means they are authentic, and you don't need to worry while trading. Furthermore, regulatory authorities are responsible for overseeing licensed brokers and ensuring the trader's safety. The aim of providing a license is to maintain market integrity and keep the inventors safe.
It has been seen that many forex brokers go for multiple regulatory licenses to operate in different countries. Besides, they also want to earn enough credibility to expand the business.
A license is a document that ensures the legality of forex brokers. It is a way to run a forex brokerage business. However, all the licenses are not treated and recognized equally.
There are five most on-demand licensed to check before selecting a forex broker. These are UK Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), United States National Futures Association (NFA), The Swiss Financial Market Supervisory Authority (FINMA), and Australian Securities and Investment Commission (ASIC). We have checked the availability of these licenses while selected the brokers and compare among them.
Following is the detailed comparison according to the licenses.
Forex investments are one of the most complicated and risky. Like a real business, you will need to have enough knowledge before investing in forex. So, investing with a little knowledge can be dangerous. However, a trader has to make his own strategy or follow someone's strategy to get the return. Whether you are a short term investor or a long term investor, you cannot skip the investment strategy.
There are many investment policies for forex trading, including, but not limited to, Day or week trend following, day trading, carry trading, and fundamental trading.
Besides, a trader can make the necessary investments through spot trading, copy trading, and so on. A trader can sell or buy currencies directly, while many traders use various tools. Furthermore, a trader can make their investment through options, futures, and funds.
On the other hand, most brokers don't offer all the available investments tool. However, top investment tools are offered. We have compared the brokers according to the top investment tools or strategies.
While the forex investments are complicated, the trader needs to keep patience and the ability to gain knowledge from the mistakes, which eventually educates the trader with skills. So, investment tools are necessary to make potential investment decisions. Although, it is difficult to compare all the tools one by one for all the brokers. We have listed the top tools first and then compared against each broker. The following table contains the investment comparison among the top brokers. And, it is compiled in a way that you can take your decision through at a glance.
Forex broker's trading cost varies from broker to broker. The cost is the overall expenses that a broker needs to run the trading business. There are some variable costs and fixed costs that may incur while trading. However, a trader may avoid some variable cost by cancelling some service, but fixed or compulsory costs are must have to be paid.
For every trade you order, you will have to pay a certain amount as a cost or commission to the broker. However, these costs are relatively low amount, while it may increase with your trading amount. As these costs are low, many traders overlook these and face challenges to earn a long term profit.
Most of the newbies failed to make a profit due to underestimation or mismanagement of the costs. So, a trader can take a look at our comparison table for costs before jump into the trading world. Besides, there are some additional fees you have to consider. Some brokers may charge hidden fees such as monthly or quarterly fees, inactivity fees, margin costs, etc. So, before selecting a broker, you have to check those and keep in mind. However, we considered all low-cost brokers with great service and reputation.
Whether you are trading high or low volume, you can choose any of the seven brokers we have mentioned below in the comparison table.
Ease of funding is one of the top features a trader should think about. Forex brokers usually offer several options to deposit funds. However, funding through credit cards is the easiest way to deposit money to the forex account. Besides, some other digital payment services are also available, such as PayPal, Skrill, wire transfer, check, etc.
Traders can log in to their accounts and deposit fund according to their convenience. On the other hand, a user can transfer their funds from a bank account to their trading account without login. Although, there might have some bank fees to make a wire transfer. Furthermore, wire transfer may take a few days to show up in your trading account.
A trader can also deposit money through a personal check. However, the processing time is longer for personal checks. Considering all the facts, credit cards, or other quick digital payment systems are best for funding the account.
Apart from funding procedures, security should be a parallel concern. You have to look at whether the broker has secured a server for the funding process. Unsecured servers may cause a data leak.
We have researched both funding procedures and security for the sake of comparison. And, we bring out secured and easy brokers for easiness.
You can easily check the comparison table provided below to see all the funding procedures for different top brokers. This table may give you an idea and helps you to choose the preferred one.
Whether you are a new user or expert trader, the right forex trading platform can get you the unique trading needs. However, there are many platforms each broker offers. Some may use a third-party platform, and some brokers may offer their own builtin platform. On the other hand, some may provide a combination of both. You are independent in choosing a platform. While selecting a platform, you may look for layout, functionality, and features offered by the brokers. Understanding a forex broker's trading platform is not easy, and it needs time.
As you start using the platforms, you will get to know them properly. You can take the first step to a platform through demo trading. Moreover, you have to know the trading processes or ways. For example, most of the platform offers trading on various devices and operating system. Nowadays, trading on mobile or web platform is a must-have feature. Besides, brokers also provide downloadable software for all. Although using different devices is the same, you have to practice them well to get acquainted with them.
When it comes to the third party platform, MetaTrader 4 is the most popular one as it offers different tactics from strategies to trading automation. While comparing the trading platforms, we have checked all the platforms available for our selected brokers and marked them in the table for your convenience.
The comparison table for the trading platform will help you compare among the brokers according to different platforms' availabilities. Besides, you will get to know any special features if they offer. Let's have a look at the trading platform comparison table.
We all know that forex trading quite difficult regardless of your experiences. That is why most traders use different forex trading tools to make their decision or strategies. Trading tools work as an assistant while trading. Besides, tools can provide profitable entry and exit points to reduce your potential loss.
You can get tools for free or paid. However, paid tools can give you immense opportunities and options regarding successful trading. Tools vary on platforms. The broker's default platform may not have enough tools like third-party platforms such as MetaTrader 4. Tools available on the MT4 platform are easily customizable and usable by a newbie. The most common tools include different technical indicators, along with automation abilities.
Advanced traders may play with other advanced tools to get the most out of forex trading. However, It is not wise to depend on tools totally as it will work through your instructions. Some tools can make the trade on behalf. However, you have to educate yourself about those tools to use them properly. Besides, you can choose to trader manually after getting all the data from the tools.
We have considered all the top tools when made the comparison table. So, you will know the name of the top-grossing tools for your forex trading. Later you can also learn those tools when you jump into the trading. Without further ado, lets hurried down the comparison table for different forex trading tools.
At present, we all have a smartphone in our hands, which makes the forex trading very convenient. Before the wide availability of phones, forex trading was computer oriented. However, with the advancement of technologies, mobile trading was a must needed things for all. As a consequence, all the brokers and platforms introduced mobile trading. Through mobile trading, anyone can trade from anywhere in the world.
Brokers or platforms have their apps for android and iOS devices. Besides, mobile trading can be done through browsers too. You just need a stable internet connection for mobile trading. You will get all the features of regular trading on your mobile devices. Furthermore, you can also track those technical indicators.
Mobile trading also comes with advanced risk management options and full features trading opportunities. Besides, real-time trader, along with order alerts, can be observed through mobile trading too.
Mobile trading comes handy, especially if you are away from your computer or on vacation. Moreover, you can access all your trading tools on a mobile platform, which gives you a smooth trading experience. However, mobile apps are not available for windows phones that do not mean that windows phone user can not trade from phones. They can use the phone's browser to do the trading.
Our comparisons have found out some important facts about mobile trading among brokers. The following table contains the completed mobile trading comparison.
Research is a significant part of trading. Before you jump into any currency trading or transaction operations, you have to research on that currency. It will give you a complete idea about the currency, and eventually helps you to build your strategy. However, most of the brokers offer necessary news or tools for the traders to do appropriate research. As a result, accurate research will assist you in making decisions, which is also beneficial for the brokers. Because when you earn more money, brokers will also earn more.
Some research items you may consider are daily financial market commentary, weekly webinar, forex news, economic calendar, and social sentiment, etc.
We have checked each of the research items or tools for out listed brokers and find out the research tools or prospects. We compared all the available research items against each broker.
On the other hand, researching is easy on a forex broker platform. Most of the top brokers have a different part in their sites about relevant research. That research will surely let you learn more about any forex items. So, let's see the comparison according to the research opportunities.
Integrated education tools from the forex brokers are essential criteria to look for. Brokers may use training sessions to educate any traders regardless of their expertise. However, newbies can learn to trade from the education option in the account. Brokers also offer ebooks and relevant news as a potential educational tool. So, as a trader, they have to understand the trading terminology, and it can be done quickly with proper education tools or training.
On the other hand, training material may vary on brokers. Each broker has identical training material, though the basics are the same. A string education tool measures the trader's value to a broker. Top brokers always keep their traders educated with the latest things. So, if you don't see any educations tool in your trading account, you should think again before going to place the next order.
Furthermore, education materials are really beneficial for any forex beginners, and sometimes expert traders can get benefitted too. So, education material should be a must-have thing of a broker.
When we did our research on different brokers, we kept these features as one of the top priorities.
We have found several research materials that brokers usually offer. Below is the assessment of all the available education materials for numerous brokers.
Major Forex Pairs
There are around 70 currency pairs available to trade. However, all the pairs are not available in a single broker. Most of the broker offers major forex currency pairs, while some may offer many additional pairs also. Among all the 70 pairs, only four pairs are considered as major. They are the EUR/USD, USD/JPY, GBP/USD, USD/CHF. These are the heavily traded pairs in the forex industry.
Those four pairs are part of the g10 currency group that is deliverable too. Furthermore, EUR/USD is the top list for the most heavily traded currencies among these four pairs.
Besides, major pairs drive the global forex market as traders tend to trade the major pairs only. For the beginners, it is advisable to start forex trading with major pairs only.
On the other hand, some other minor pairs can also give you a good result. But, majors should be the priority. So it is necessary to find a broker that offers all the major currencies, as well as some minor currencies, won't harm.
Our listed 7 brokers offer all the major currencies as well as some minor currency trading too. We have considered all the majors and minor currencies and put them in a table for comparison. So, you can choose your desired broker by looking at the table. Let's select a broker based on their offered pairs.
Execution time is one of the key factors to indicate profitability. Order execution speed should be in a way that becomes the most beneficial for the trader. Besides, a speedy forex transaction ensures a transparent and accurate ordering process. Therefore, measuring the broker's speed is really important.
Forex execution speed can be differentiated into two categories, dealing desk, and no dealing desk. Each of these two categories gets specific spreads and trading conditions.
So, how does speed can effects forex trading? The fastest execution speed can get give you precise signals with no requites or slippage, etc.
Less slippage or latency ensures less difference between market price and requested price. You may not get the requested price at a slow speed server as the price fluctuates in every second.
Furthermore, the fastest speed of execution can result in less rejection. Orders usually get rejected if the amount of slippage exceeds the limit set by the broker.
When the speed is slow, your order will not be executed if the market prices change right away and coming back to you for requites. So, in the fastest server, the order will execute at a market price, and it won't coming back to requite.
So, it is necessary to know the speed of execution before choosing a broker.
There are several speed execution indicators, and we have looked at each of them while compares the time. You will get the speed comparisons in the following table.
It is clearly visible that FP Markets is the ultimate winner. Compared to top of our top 7 brokers, FP markets performed well in all the comparison table. If we recap from the beginning, you will understand why FP Markets is the winner. Because-
- It has an overall 5-star rating, and it was collected from the users.
- It is regulated by top countries with a trust score of 99. However, some other brokers are regulated by more organizations than FP Markets. But, we prioritize the trust score.
- It offers the highest numbers of CFDs along with 60+ currency pairs.
- FP Markets has all the major deposit and withdrawal methods.
- A wide variety of trading tools and the fastest platforms gives the optimum performance.
- It always welcomes new traders with their multiple education materials.
It is often hard to choose the right broker according to our needs. As a result, we tend to spend more time on research. However, before research, you have to know the right way to do any research on forex brokers. Forex brokers comparison tables are the best way to compare top brokers. It can give you a view of the broker's performance and help you to decide about a broker. We have picked all the major comparison matrix so that you don't need to worry about other minor stuff.
Our expert team has compiled these comparisons who are actively working in the forex industry for years. So, you can do your primary and advance research form these tables. Besides, these data will help to do your personal research too.
We hope all those quick snapshots (tables) will help you a lot to fit yourself with the best broker. Although our verdict goes for FP Markets, you are open to choose any of those 7 brokers. If you are still confused about choosing a broker, you will get in a detailed review of the brokers individually in other pages of our website.
So, what are you waiting for! Choose your broker and jump into the forex world.