Want to jump straight to the answer? Although the current brokers I use are Hankotrade, OspreyFX, and CedarFX due to their low spreads and high leverage, the best-regulated forex broker for most people is definitely FOREX.com.
Forex trading is arguably one of the easiest financial markets to begin trading in. To get started, you just need to open and fund an account with a regulated online broker. Choosing the best forex broker to trade forex does require some initial research to find the one most suitable for your trading needs and experience level. World’s First Eco-Friendly Forex Broker, CedarFX offers an Eco Account option, which includes a $1 commission for every lot traded. 100% of commissions paid are matched by the broker and used to plant trees.
Disclosure: CedarFX is not regulated by any major financial agency. The brokerage is owned by Cedar LLC and based in St. Vincent and the Grenadines.
The Best Forex Brokers
Benzinga’s picks for the best forex brokers in 6 key categories appear below along with details about each broker and a screenshot of their trading platforms. As you read through your options, remember that the majority of forex brokers can help you open a basic account and begin your investing journey. With these 6 brokerage houses, you are choosing based on the services and extras they provide above and beyond what a traditional broker would do.
This broker accepts U.S. clients and is regulated in the U.S. by the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA). FOREX.com also has oversight from regulators in 6 major world jurisdictions through its subsidiaries.
Best For Forex Investing
Pairs Offered 80+
GET STARTED securely through FOREX.com’s website
1 Minute Review
FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums, and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
CedarFX believes in combining the finest market conditions with excellent pricing and technology so clients can grow their accounts. A low spread generally indicates that volatility is low and liquidity is high and CedarFX prides itself
CedarFX offers 2 account types: 0% commission accounts and eco accounts.
Best For Investors interested in 0% commission or eco-conscious trading
Pairs Offered 55
GET STARTED securely through CedarFX’s website
Disclosure: CedarFX is not regulated by any major financial agency. The brokerage is owned by Cedar LLC and is based in St. Vincent and the Grenadines.
1 Minute Review
Billing itself as the world’s 1st eco-friendly broker, CedarFX makes it easy to trade and give back to the planet. You can choose a 0% Commission Account or an Eco Account — or open multiple accounts to meet all your needs.
CedarFX offers access to a wide range of tradable securities, including stocks, futures, major and exotic forex pairs, cryptocurrencies, and more. Though CedarFX could introduce a few additional educational resources, the broker remains a unique option for traders invested in giving back.
- Forex investors
- Investors interested in 0% commission or eco-conscious trading
- Investors looking for 24/7 customer service
- Allows users to offset their carbon footprint
- 0% commission investing
- Offers demo account access
- 24/7 customer service available through live chat
- Eco Account Option (10 trees planted for each lot traded)
- Fast deposits/withdrawals with Bitcoin
- Limited number of educational resources for new investors
3. IG Markets
IG Markets gives clients access to trade up to 80 different currency pairs. The broker requires a $250 minimum deposit.
IG accepts U.S.-based clients due to oversight from the CFTC and NFA. IG holds your money in segregated accounts under trustee arrangements for added security. In addition to its proprietary trading platform, IG offers support for 3rd-party forex platforms such as MetaTrader 4 and ProRealTime. It also allows application programming interface (API) trading.
Best For Forex Execution
Pairs Offered 87
GET STARTED securely through IG Markets’s website
1 Minute Review
IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.
- New forex traders who are still learning the ropes
- Traders who prefer a simple, clean interface
- Forex traders who trade primarily on a tablet
- Easy-to-navigate platform is easy for beginners to master
- Mobile and tablet platforms offer the full functionality of the desktop version
- Margin rates are easy to understand and affordable
- Access to over 80 currency pairs
- U.S. traders can currently only trade forex
- Customer service options are lacking
- No 2-factor authentication on mobile
SimpleFX is available globally with some exceptions. The platform is available through WebTrader, MetaTrader 4, as well as native mobile apps for Android, iPhone, and HarmonyOS (Huawei).
Best For Users Who Use MT4
Pairs Offered N/A
GET STARTED securely through SimpleFX’s website
1 Minute Review
SimpleFX is a cutting-edge online trading app, that allows you to invest fiat money or cryptocurrency in forex, crypto, indices, precious metals, and commodities. With the WebTrader, you can learn to invest online and unlock advanced features designed for your success.
- Traders who need lots of options
- Customers who wish to invest with leverage
- Multicurrency traders
- Cryptocurrency owners who would like to invest with them
- Traders who prefer to skip the KYC and sign up just with an email address
- Experienced traders who would like to use MT4
- Simple to manage
- 60 currency pairs
- Spreads as low as 0.1
- Trading never closes
- Stock trading
- No minimum deposit
- No KYC for cryptocurrency accounts
- On the market since 2014
- Almost too many options for new investors
- Not yet available to U.S. users
5. Saxo Bank
Saxo Bank, in addition to offering its bread-and-butter stock, bond, ETF, and mutual funds trading, provides a high-level platform to trade its leveraged products like forex, CFDs, futures, commodities, forex options, listed options, and other derivatives.
Best For Serious Forex Traders
Pairs Offered 200
GET STARTED securely through Saxo Bank’s website
1 Minute Review
Saxo Bank lets traders trade on a high-performing platform with access to over 40,000 financial products, plus everything needed to make an informed decision about putting plans into action. At Saxo Bank, you navigate market turns via curated investment themes, expert market commentary, alerts to your phone, charting tools, and in-depth webinars.
- Serious forex traders
- Investors seeking a one-stop-shop for standard, crypto, and derivative investments
- Inquisitive learners
- Abundant, broad, unparallelled market analysis and insight
- Investment platforms that outstrip competitors
- Free trial with accessible demos
- Unique analytics tools, like Thought Starters, offering exclusive trading approaches
- Several platforms fit for beginning investors to day traders
- Not available to U.S. & Canadian clients
- Extensive options, platforms, and research tips could overwhelm users
6. Interactive Brokers
Interactive Brokers offers some of the lowest costs in the business, including a $0 commission on U.S.-listed stocks and exchange-traded funds (ETFs). Because of Interactive’s world-class brokerage services in 33 countries that cover 134 markets worldwide, the company has oversight from most of the world’s largest financial regulators, including the U.S. SEC, CFTC, and NFA. Interactive also submits to regulatory oversight in the U.K., Australia, and Canada, and it has agencies in Japan, Hong Kong, India, and Luxembourg.
Best For Sophisticated Investors
Overall Rating Read Review
GET STARTED securely through Interactive Broker’s website
1 Minute Review
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex, and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
- Access to International markets
- Active traders
- Sophisticated investors
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradable assets
- IB SmartRouting searches for the best firm price at the time of your order
- Trade on 135 markets, in 33 countries & 23 currencies worldwide
- Invest globally in stocks, options, futures, currencies, bonds and funds from a single integrated account
- Select from 24 currencies as a base currency for your account
7. (Non-US) eToro
eToro specializes in social trading, which is ideal for beginners since you can follow the trades of expert traders with a proven track record. In addition to its world-class social trading network, eToro has excellent educational resources for forex beginners. eToro’s intuitive multi-asset trading and social trading platforms and apps can be used by anyone immediately. Unfortunately, eToro does not support the MetaTrader 4 and 5 (MT4 and MT5) trading platforms.
Best For Copy Traders
Pairs Offered 47
GET STARTED securely through eToro’s website
Disclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
1 Minute Review
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform, and low spreads are a great way to enter the cryptocurrency market.
- International Forex/CFD Traders
- New cryptocurrency traders looking for an easy-to-use platform
- Traders who want to buy and sell cryptocurrencies on-the-go
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
- U.S. traders are currently limited on cryptocurrencies
- Only 15 major coins available to trade
8. (Non-US) AvaTrade
AvaTrade, one of the most secure brokers in the industry, carries 7 regulations across 6 continents (Europe, Australia, Japan, British Virgin Islands, UAE, and South Africa). You’ll be pleasantly surprised by its asset availability, leading platforms, and generous trading conditions (you can leverage your positions up to 400:1).
Best For Forex Trading
Pairs Offered 50+
GET STARTED securely through AvaTrade’s website
1 Minute Review
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia, and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, and cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland, and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
- Advanced traders
- Traders looking for a well-diversified portfolio
- Controlled by regulatory agencies of multiple countries
- Choice offered in terms of trading platforms
- Support available in 14 languages and trading platforms in 20 languages
- Practice/demo account available for trying out
- Breadth of trading assets
- Does not accept customers from the U.S. as it isn’t regulated in the U.S.
- Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
9. (Non-US) FXCC
FXCC is the best brokerage for non-U.S. users, allowing you to choose from 70 currency pairs, several CFD options, spot metals, and the top 8 cryptocurrencies. Bitcoin, Ethereum, and Litecoin are just a taste of the popular cryptocurrencies that are available. You might also invest in 12 popular stock indices, spot WTI and Brent crude oil.
Best For Forex and CFD Traders
Overall Rating Read Review
GET STARTED securely through FXCC’s website
1 Minute Review
FXCC provides brokerage services for forex and CFD traders with more than 70 currency pairs; spot platinum, palladium, gold, and silver; 8 of the top cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Ripple; 12 of the world’s leading stock indices; and spot WTI and Brent crude oil.
The broker supports the popular MetaTrader 4 trading platform with multiple terminal capabilities and a multi-account manager. You can also access the FXCC MT4 platforms on Android and iOS smartphones and tablets. FXCC employs an electronic communications network/straight-through processing (ECN/STP) model, so you get tight forex dealing spreads from top Interbank liquidity providers.
In addition to access to daily market analysis and market education resources, you can get a 100% first deposit bonus of up to $2,000 when you open an FXCC XL account. If you want to check out this broker’s services and trading platform, just open a free demo account with no minimum deposit.
- MetaTrader 4 traders
- Forex and CFD traders
- ECN/STP broker model
- 100% first deposit tradable bonus
- Free Virtual Private Server (VPS)
- Supports MetaTrader 4
- Has an offshore subsidiary for high leverage trading
- Does not accept U.S. based traders or U.S. citizens as clients
- Only supports 1 trading platform
Established in 2011, FXTM can support your online trading, no matter your financial ambitions.
It specializes in leveraged trading to give you the potential to generate financial returns on both rising and falling prices across FX, indices, commodities, shares, and cryptocurrencies. Whether you’re an experienced trader or completely new to it, FXTM wants to help you find freedom in the financial markets.
Best For Copy Traders
Pairs Offered 35
GET STARTED securely through FXTM’s website
1 Minute Review
Cyprus-based ForexTime Limited, commonly referred to as FXTM, is one of the world’s most popular forex and contracts for difference (CFD) brokers. Since 2011, FXTM has provided traders with a wide range of trading instruments and educational resources, as well as fund protection, free demo accounts, and account managers.
FXTM is regulated in a number of jurisdictions and supports the MetaTrader 4 and 5 (MT4&5) trading platforms and their mobile apps. In addition to forex, you can trade spot gold and silver, as well as CFDs on cryptocurrencies, indices, commodities, and over 300 of the largest cap U.S. stocks. FXTM also provides educational webinars and seminars for less-experienced traders.
- Beginning traders
- Experienced traders
- Copy traders and people looking for a managed forex account
- Extensive list of trading instruments
- Online webinars and seminars
- Copy trading, PAMM and managed accounts
- Does not accept U.S.-based traders
- Does not support Myfxbook or ZuluTrader options for social trading
- No futures or options trading
What is a Forex Broker?
Retail forex brokers are financial institutions that act as an intermediary between individual trader clients and the forex market. These forex brokers have an online presence in the form of an official website, and they target smaller traders who wish to operate in the forex market on a margin basis.
Online forex brokers generally allow traders to execute forex deals largely using their supported electronic trading platforms. In addition to offering their own proprietary trading software, many online forex brokers support popular 3rd party forex trading platforms like MetaTrader 4 and 5 (MT4/5) from MetaQuotes.
Some forex brokers also offer very useful educational information for beginners you can use to increase your knowledge about trading. They might also provide access to expert forex market analysis and financial news feeds to help you make better trading decisions.
If you choose a forex broker that uses automation, you can try trading bots. These bots are AI-enabled programs that use prevailing information to trade on your behalf, and each bot uses a specific trading plan that is designed to help increase your earnings. However, trading bots are not perfect. You must do your research, set a budget, and monitor your account for best results.
Why Trade Forex
Making a forex transaction involves the simultaneous purchase of 1 currency and the sale of another at a given rate of exchange known as an exchange rate. Forex traders make a profit by buying 1 currency pair low and selling it high, or by selling 1 currency pair high and buying it low.
Many people like to trade forex because they can get started so easily by opening up a trading account and downloading a free trading platform like MetaTrader. You can get in and out of positions rather quickly, easily trade at your own pace and make money. This is often the place where investors start because they can get a handle on the market without feeling confused over the asset they’re trading.
Forex Pros and Cons
The forex market has a unique set of pros and cons for traders which are included in the list below.
- High leverage: Because an exchange of currencies at the going market rate has no net value, the use of leverage in forex trading allows you to control quite large positions with a rather small margin deposit. This increases your risk but also lets you benefit from relatively small exchange rate movements.
- High liquidity: The forex market is the largest financial market in the world, so it has a very high level of liquidity in the major currency pairs. This allows for sizable transactions to be executed in those pairs at virtually any time during normal trading hours.
- Around-the-clock trading: The forex market remains open for trading at all times from 5 p.m. EST on Sunday until 5 p.m. EST on Friday, even during U.S. holidays. This provides constant trading opportunities during market hours.
- Fewer asset choices: While many stocks can be traded, only a relatively few currency pairs are available to forex traders, and not all of them are highly liquid like the majors.
- Volatility: Strong movements can occur in the forex market as new information is digested by participants. This volatility can result in unexpected gains or losses for traders.
- Unregulated OTC market: The Interbank forex market trades over the counter (OTC) and so it remains largely unregulated. Still, some regulations are put in place in many jurisdictions to protect retail traders from making transactions through online brokers.
Forex Markets Explained
In the forex market, traders agree to exchange 1 currency for another to make a transaction in that currency pair at a particular level known as the exchange rate. Like stock prices, this exchange rate fluctuates based on supply and demand factors, as well as on the forex market’s overall expectations of future events.
Forex traders can make money on a currency transaction in 2 ways. First, if they buy or go long a currency and it goes up in value versus the sold currency, then they earn a profit. Second, if they sell or go short a currency and it goes down versus the bought currency, then they also profit.
Many currency pairs quoted in the forex market show substantial volatility or fluctuations, which can result in gains or losses for traders. You can review the EUR/USD pair over the past week, month, year, or more. Seeing the history of the pairing gives you quite a bit of information, and you can compare the stock’s movements to current events in either the U.S. or European Union.
During the comparison process, you may notice that the pairing moves inverse to the news you’re reading. As you read further, you learn how to anticipate where currencies will move based on current events.
Risk and Reward in Forex Trading
Rewards are generated in forex trading when you take a long or short position in a currency pair that subsequently appreciates in value. The risk in doing a forex transaction is when the market doesn’t perform as expected once you have done a forex trade.
Many brokers allow traders to magnify the gains or losses they take on a position via the use of leverage. Leverage is typically expressed as the ratio of the size of a position you can control by placing one unit of base currency on deposit as margin. Hence, a 500:1 leverage ratio would mean that you can control a $500 position with a $1 margin deposit.
Furthermore, most successful traders have a minimum risk/reward ratio for a trade before they will consider taking it, such as 1:2 or 1:3. For example, if you think the chances of a trade making 20 pips is around the same as the chances of it losing 10 pips, then your risk/reward ratio of that trade is 1:2. If that meets your risk/reward ratio criteria, then you might consider that trade worthy of executing.
Choose Your Broker Wisely
Since your forex broker will be your primary trading partner, you want to choose one carefully to make sure they are reputable and will fit your requirements as a trader. Open a demo account with an online broker you’re thinking of using to see whether it is a good fit. Demo account trading can also help prevent potentially costly errors that might arise from you being unfamiliar with the broker’s trading platform. START TRADINGFeatured Forex Broker PromotionReduce your trading costs by up to 15% with cash rebates, Forex.com is the #1 Forex Broker in the US.
Frequently Asked Questions
Can I trade forex with $10?
Yes, some online forex brokers will accept clients with a very low minimum deposit like $10 or even less.
What is a PIP?
An acronym for “percentage in point”, a pip is the traditional smallest change in a currency pair’s exchange rate. For most currency pairs, a movement of 1 pip is a 0.0001 change.
Can I trade forex without a broker?
Yes, you can trade in the over-the-counter (OTC) forex market with major financial institutions using credit lines if you are a high net worth individual or corporation, and you can even perform rudimentary forex trading via local cambios. If you’re a retail trader with a modest amount of risk capital to use as margin, you’ll need an online forex broker to trade currency pairs through.
These top brokers were chosen for this review for various reasons depending on the specific category in which we felt they excelled. Baseline requirements included the strength of their regulatory environment, their generally good overall reputation with clients earned over an extended period, and a substantial number of currency pairs available for trading.
Get a Forex Pro on Your Side
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets plus spot metals with low pricing and fast, quality execution on every trade.
You can also tap into:
- EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
- Powerful, purpose-built currency trading platforms
- Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program
Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.