As you prepare to begin trading forex, you will need to choose a broker.
While you might have heard different opinions regarding the best fx brokers out there, it is often hard to tell who’s actually good and who isn’t.
This guide will help you find out the best forex brokers in 2022.
Best Forex Brokers in 2022
As you may be aware, financial markets go through periods of volatility, especially when a major global event occurs. And no matter which part of the world you’re based in, there’s a good chance that your local currency will have some kind of effect on the global market.
That’s why it’s important to choose a broker that’s well-established and reliable.
Below is a list of forex brokers that are amongst the best in the world (in no particular order):
- Admiral Markets
What is a Forex Broker?
In short, a Forex broker is a company that offers a variety of trading platforms for executing trades on the foreign exchange market.
It offers clients a place to enter or exit a trade, as well as execute a trade.
There are different kinds of brokers available to choose from, and each has a unique set of features, including types of accounts, spreads, platforms, commissions and more.
Forex traders should choose a broker based on their needs and experience level.
How To Choose A Forex Broker That Suits You
With the ever-increasing number of foreign exchange brokers available, choosing a broker that suits you can be difficult.
Now, different traders will look for different features of a broker – but below we’ve given you some features you should consider before making a deposit with any company.
This one is a no-brainer.
As the world’s largest market for financial transactions, the forex market is subject to very strict regulations that prevent traders from manipulating the market, using unfair practices, and other unsavoury activities.
Make sure that your broker is regulated in your country or that the regulator covers your country.
For example, the FCA covers the UK – whereas CySEC covers the EU and ASIC covers Australia.
If the company is not regulated in your country, find another broker because you lose all of your protection as a retail trader.
Also, companies that are regulated must uphold the highest standards in terms of protection of client funds and everyday business runnings.
It’s important to understand the differences between the spread and commission rates charged by a forex broker.
Spread refers to the difference in price between the bid and offer side of the market, while commission refers to the amount of money charged for making a trade.
When you’re looking for a forex broker, it’s important to understand the spread, which can vary depending on the broker you choose.
The lower the spreads, the better.
Also, you can look for brokers that offer fixed spreads during major trading hours (London session), which means every trade will have the same “cost” which could be say 0.5 pips.
However, these fixed spreads tend to be slightly higher due to the nature of them being fixed.
Whereas with variable spreads, you have the chance to get the best/lowest spread possible during the most liquid times (some offer 0.1 pips spread on EURUSD).
Which is obviously a tight spread.
Yet, the risk with this is that it could jump to 0.8 pips spread (not that likely in liquid hours).
You can choose to have tight, low spreads for as low as 0 pips, but instead, pay a fixed low fee for each trade you enter and exit.
This is known as commission trading and is becoming more popular due to knowing your trading costs upfront.
However, if you are paying $5 per lot round trip it’s the same as paying a 0.5 pip spread.
The difference is, that your market entry is at zero spread, or market price, which allows you to enter more accurately and exit more accurately.
With that being said, commission-based brokers do have variable spreads on top of the commission, so you could end up paying more without noticing.
With all the different trading platforms, choosing the right one can be a challenge. Some trading platforms are better suited for beginners, while others are more complex and are ideal for advanced traders.
The right platform should be easy to navigate and allow you to track multiple exchanges at once. It should also offer a clear, intuitive user interface and should be able to help you avoid mistakes that could cost you money.
In addition, you should consider whether you can easily manage your trades from a mobile device or computer.
Most brokers offer multi-asset opportunities – this covers from stocks and bonds to currencies and crypto.
If you are someone who wants to trade multiple assets, then you should consider what access your broker has.
Some brokers may offer multiple assets but are in fact limited to certain indices and countries. Therefore, you may not have access to the assets you truly want to trade.
However, if you are looking for a company that only focuses (or specialises in the currency markets), then there are plenty that does this.
Good trading support, unfortunately, is something you will only discover once you need it.
Trading support isn’t about trading education but a “what happens if I mess up” situation that could happen with an accidental trade.
Or if you can’t close out your trade, can you call their dealing desk to close out the trade over the phone quickly.
In most cases, trading support is outstanding.
But you should read reviews on the broker via TrustPilot to see how their current customers appreciate their services.
Most brokers accommodate for beginners, after all, everyone is a beginner to start with, but you have to discover if they make it easy for you to do your admin – such as depositing and withdrawing funds, reviewing past trades and accessing the trading platform.
Do Not Open An Account For Their Education
Here’s the deal:
Brokers don’t give you any special insights into the markets, so don’t fall short on signing up and depositing into an account because their account manager promises you a premium trading education in forex.
Truth is, most account managers are just salespeople and not traders. So make sure you don’t base your account opening based on this marketing tactic.
Top Forex Brokers List (2022):
There are a number of factors that traders need to consider when choosing a broker, including execution speeds, fees, platform choice and account funding methods.
The best forex brokers around the world are constantly developing and upgrading their platforms, and it’s a great time to check out what’s available today.
It’s always wise to invest in a broker that offers a broad range of features, tools and services that can help you succeed.
Here we’ve looked at the best forex brokers to make the process easier for you.
One of the best brokers out there is Capital.com.
Capital.com has a strong brand, well-developed research tools, TradingView integration, and a robust web trading platform. It’s a good choice for both beginners and experienced traders.
They leverage technology to ensure that it delivers an excellent customer experience.
The company is heavily regulated and provides extensive protection to its users.
Capital.com provides a wide range of assets, including options, bonds, and futures, for those looking to trade in these products.
IG is a highly-regarded trading company, and it offers a comprehensive trading package, including excellent trading tools, industry-leading education, and a wide range of tradeable markets.
IG is a leading provider of global multi-asset trading technology to professional investment funds, banks and asset managers.
Their stellar reputation and fantastic overall experience are what keep them near the top.
In order to help you make the best possible investment decisions, IG goes above and beyond by offering a rich experience with many options for investing in financial markets.
An online broker with many options, IG provides a rich experience with lots of features that can help you invest in the financial markets and has over 400,000 clients worldwide.
Admiral Markets (Admirals) is a well-established broker in the UK with over 20 years of experience in providing the highest quality trading services for retail and professional traders.
Traders choose Admiral Markets for its extensive range of markets and CFD trading, alongside the Supreme MetaTrader trading tools and premium trading analytical services.
In addition, Admirals have competitive spreads and low commissions in the industry across their multi-asset offerings which places them in a strong position for most traders.
One of the most competitive options for traders is FXCM, which is a well-regulated global forex broker.
In fact, they are adapting and driving new technology to focus more on the algorithmic traders which are in growing demand.
FXCM has implemented Capitalise AI which will allow any trader to automate their strategies without knowing any code.
FXCM offers TradingView, MT4/MT5 and its own platform – Trading Station.
FXCM provides clients with high-quality financial research tools and services whilst giving you the flexibility to trade the way you want.
eToro is a multi-asset brokerage providing trading services to retail clients.
eToro offers CFDs on a wide variety of assets, including forex, commodities, indices, and cryptocurrencies.
eToro was one of the first companies to promote copy trading, which essentially, allowed investors to invest in other traders’ strategies with the aim of helping them to make money by trading successfully.
They offer a reasonable amount of assets to trade including shares, forex and cfds.
eToro is best suited for people who want to invest through other people and their strategies rather than doing all the work themselves.
They are quite expensive in terms of trading fees because of this, so make sure you decide if you want to copy trade or trade yourself.
Because if you want to trade yourself, there are much cheaper alternatives in this list.
XM is a well-established name in the forex industry, offering a range of tools and resources for beginners and advanced traders.
However, it’s only platform is either MT4 or MT5 or it’s own XM App which only works on phones and tablets.
So if you like the MT4 setup, then you will enjoy XM’s trading services.
XM ensures that the trader’s interests are at the forefront of the business as they provide negative balance protection and a strong execution policy which makes XM a true company to consider when starting out.
XTB is one of the world’s leading forex brokers, offering an outstanding experience for both new and experienced traders alike.
They offer a wide variety of assets and CFDs and provide top-notch customer service.
You’ll learn about xStation’s innovative design, its full suite of features and how it helps traders around the globe.
XTB seems like a well-balanced broker that provides an exceptional trading experience while regulated in major financial centres.
FOREX.com offers a reputable trading platform with low spreads, fast execution and access to a global market.
Metatrader 4, available as part of the package, is a leading platform. It offers a wide range of forex markets.
It’s a good choice for beginners who are interested in developing their trading skills and need a straightforward web platform to learn how to develop trades.
Forex.com is a great forex and CFD broker, regulated by both the FCA and the CFTC.
It offers low fees, access to almost every pair in the currency markets, provides a great set of research tools, and integrates with TradingView.
However, as their name suggests, they primarily focus on the forex markets so stocks and bonds are not available.
So if you are looking for a multi-asset broker, then forex.com may not be for you.
Do You Really Need A Forex Broker?
Without a forex broker, you will not be able to trade the markets.
The forex broker is who provides access to the markets and acts on your behalf.
Without the broker, you will not be able to execute any trades.
Are Forex Brokers Reliable?
Brokers are trading intermediaries that connect traders with market makers, who act as middlemen and match buyers and sellers.
They provide access to a range of trading products, including spot and derivatives contracts.
There are many different types of forex brokers available, and it is up to you to make sure you choose a reputable company. Many different factors are considered in choosing a broker, including their reputation and their financial stability.
Some companies are less transparent than others, and you should ask a number of questions before you sign up with a particular broker.
Many brokers offer a demo account, which allows you to practice trading before you commit to a full account.
When you join a broker’s demo, you can practise your trading skills without making any real money.
In general, forex brokers are fairly trustworthy.
However, as with any industry, there are rogue brokers who will try to take advantage of traders’ money.
If you are not comfortable with the type of brokerage you want to use, you should consider finding a different forex broker.
To put it bluntly:
Only go with a company that is regulated by a Tier 1 regulator such as the FCA.
Which Forex Broker Is Best on MT4?
When you’re trading, there is no substitute for good technical analysis.
It helps you identify and follow the market trends that are likely to bring profits.
In short, MT4 gives you a fast, flexible and efficient trading platform for all your forex trading needs.
Many brokers know this and allow retail traders to use the MT4 platform to execute their trades.
Because MT4 is a standard piece of software, the only settings that brokers control are the spreads and the assets available to their clients.
Therefore, there are no real “best brokers on MT4”.
It is down to the costs associated with trading on the MT4 platform.
You should double-check the spreads with your broker because some offer more expensive spreads on the MT4 platform.
Which Forex Broker Is Best on TradingView?
TradingView is becoming more commonly adopted as a direct trading platform with its cloud settings and wide range of trading tools, it’s certainly a challenger to the MT4 platform that has dominated the retail trading space for many years.
However, there are not that many brokers with access to TradingView.
This is a shame because I find TradingView is an extremely useful bit of kit.
(You should check out this TradingView review I did).
Here is a list of current brokers that provide access to TradingView to their clients:
Which Forex Broker Charges the Lowest Fees?
Here’s the thing:
This is a difficult question to fully answer.
And one you should not focus on too much. Honestly.
This is due to the nature of variable spreads and price feed changes happening in real-time.
Brokers may widen their spreads during illiquid times, or times of high volatility too.
One broker may have a low spread on paper, but when it comes to execution you may have a spread as expensive as another broker.
Be honest here:
If you see a trading opportunity – are you going to avoid it because the spread has gone from 0.5 pips to 0.8 pips?
The best way to maintain a consistent fee is by using commission-based brokers, where your fee per lot is set.
Most commission-based brokers do have a spread too, which is variable – but target 0 pip spread.
With this being said, costs associated with trading although small in today’s trading world, shouldn’t be the core focal point.
If you were guaranteed 0 pips spread but the execution was terrible, you’d lose out on profit or enter in a loss.
Most brokers offer similar spreads nowadays, so you need to go with a broker that can provide you with the best trading experience with the least headaches.
Finally, if you are not a professional trader or a high-volume trader then you probably won’t truly receive the “razor-thin” spreads.
For you to attain these fees and professional trader status, you must satisfy the ESMA’s Elect-Professional Criteria.
How Do I Know If My Forex Broker Is Regulated?
You should never put your own money at unnecessary risk in forex trading or falling for forex scams.
This means finding a broker that is licensed, regulated and has sufficient financial backing and assets to cover your trading losses.
It’s easy to get sucked into the excitement of online trading, and many brokers that advertise high leverage, little regulation, and little oversight will lure you in.
Here is to check if your broker is regulated:
Go to the bottom of your broker’s page to what is called a “Footer”, if they are regulated they will have to display their business registration details and regulation details.
Visit their website and look for a link that says “regulation”, click through it and there you will see their regulatory details.
Visit your local financial regulator and input their business name.
IF they don’t provide these details, then it’s a red flag for the company you are researching.
How to Open A Forex Broker Account
Nowadays, opening a forex broker account is really easy, fast, and straight forward that’s the technology.
Once you’ve identified a broker that meets your criteria, simply follow the broker’s steps to open an account.
This involves entering your personal details, completing a Know Your Client fact find and uploading your ID documents.
All of this is required by financial regulators.
Once your account has been approved, you can then deposit funds.
Once your funds have been deposited and received, you will then be able to trade the markets.
It’s as easy as that.
The best forex brokers in 2022 will be able to provide a secure trading environment, with advanced order types, reliable technology, strong customer service and competitive pricing.
As the world continues to evolve, so too must the forex industry. And with the development of new technologies, the forex market will become even more dynamic and interesting than ever before.
If you have any questions about the brokers mentioned in the list, feel free to contact us on social media – we’ll be happy to help.