Best Forex Brokers of January 2021

IC Markets Has The Lowest Fees

IC Markets fees are the lowest due to four key factors:

1) The Lowest Spreads
– Lowest spreads on 56% of currency pairs

2) Low Commission Rates
– Commissions as low as $3.50 per lot

3) No Funding Fees
– No fees on funding or withdrawals

4) No Hidden Fees
– No holding or inactivity fees

IC Markets Spreads On Popular Forex Pairs

The EUR/USD is the most-traded currency pair worldwide. The IC Markets Raw Spread accounts have the lowest average spreads on this currency pair. In fact, 62% of the time there is no spread on the EUR/USD. IC Markets also has the lowest published average spread of the major global brokers for the EUR/GBP, GBP/USD and USD/SGD. This was last updated in January 2021.

IC Markets Raw Account Spreads	EUR/USDGBP/USDEUR/GBPUSD/SGDAUD/USD	EUR/USDGBP/USDEUR/GBPUSD/SGDAUD/USD	EUR/USDGBP/USDEUR/GBPUSD/SGDAUD/USD	EUR/USDGBP/USDEUR/GBPUSD/SGDAUD/USD	EUR/USDGBP/USDEUR/GBPUSD/SGDAUD/USD
	0.10	0.40	0.40	0.30	0.20
	0.10	0.30	0.50	1.30	0.20
	0.16	0.40	0.35	1.07	0.27
	0.20	0.50	0.40	1.50	0.20
	0.17	0.59	0.54	N/A	0.30
	0.20	0.60	0.50	10.00	0.40
	0.10	0.60	0.60	1.30	0.50
	0.30	0.50	0.50	3.00	0.50
	0.44	0.85	0.40	1.30	0.42

Data taken from broker website. Accurate as at 05/01/2021

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IC Markets also off a range of CFD trading (such as commodities, metals, indices to bonds) and crypto. Below shows the minimum and average spreads of the major cryptocurrencies, including Bitcoin, Ethereum and Ripple.

IC Markets Commissions

There are 10 base currencies offered by IC Markets. The actual commission for the raw spread account (for MetaTrader 4) is determined by the base currency set. Below shows the commissions across each base currency from Euro, USD, GBP, JPY to AUD.

Other Trading Fees

IC Markets have $0 funding fees when using Paypal, Skrill, Credit Card, Bpay and FasaPay. Only international transfers can lead to a $20 AUD fee, which is the charge passed on from the bank. The funding fee that is chosen can impact the processing time. The minimum deposit is $200 USD with IC Markets. Like deposits, IC Markets has $0 withdrawal fees from all payment methods but international wire transfers. This method like deposits has a $20 AUD fee associated, which is the charge by the Australian bank. The withdrawal method a forex trader chooses will usually determine the deposit methods available.

There are no inactivity fees, even after a prolonged period of no trading. There are also no transfer fees if you want to switch forex platforms or account types (eg standard vs raw). A rollover fee is also known as a swap and is charged by all forex and CFD brokers. They are applied when a position is key open for the next trading day. These change regularly, and on Wednesday night the charge for holding a currency pair is triple.

Summary Of Why IC Markets Has The Lowest Fees

IC Markets operate similarly to an ECN broker with straight-through processing (STP) and no dealing desk. This setup ensures the best liquidity and with large global trading volume achieves the lowest fees for forex traders.

IC Markets = Low Commissions + No Hidden Fees + Lowest Spreads.

IC Markets Holds Three Licences:

• ASIC in Australia (AFSL No.33569)
• CySEC in Cyprus (No 362/18)
• FSA in Seychelles (SD018)

The minimum deposit requirement is USD $200 across all three licences with 16 funding methods and 10 base currency options. It’s the best forex broker for traders looking to minimise brokerage.

Full IC Markets Review>>Visit IC Markets >>

Markets.com Offers Great Trading Tools

Markets.com is a multi-regulated broker that offers an excellent range of trading tools and features such as:

• Low commission-free spreads from 0.6 pips on major forex pairs.
• Thousands of CFDs derived from forex pairs, shares, indices, commodities, ETFs, bonds, cryptocurrencies and bonds.
• Great customer support via live chat, phone and email.
• Four trading platforms to choose from, each with unique trading tools (MetaTrader 4, MetaTrader 5, Marketsx or Marketsi).

Each trading platform suits a different style of trading, The broker’s proprietary platforms, Marketsx and Marketsi, come with unique features not available on other platforms. Marketsx was designed for CFD trading, and you can access various types of free sentiment tools. Marketsi, on the other hand, is also a CFD trading platform, yet there is a large focus on stock markets.

If you want to develop algorithmic trading strategies with Expert Advisors (EAs) or access social-copy trading tools, MetaTrader 4 (MT4) or MetaTrader 5 (MT5) are great options.

Trading Tools – Marketsx

Marketsx is a CFD trading platform that comes with unique sentiment, technical analysis, and fundamental analysis tools.

• Sentiment Tools: Shows short-term market sentiment and indicates whether the majority of traders are buying or selling
  • Bloggers Opinions, Hedge Funds Investment Confidence, Insider Trades, Trading Analyst Recommendations, Trends In Trading and Signals
• Technical Analysis: Helps to analyse past market data and forecast future price movements.
  • Advanced Charting and Related Instruments
• Fundamental Analysis: Keeps you updated with economic events and factors that impact financial markets.
  • Financial Commentary, Advanced Alerts and Thomson Reuters Stock Report

Trading Tools – Marketsi

Marketsi is a great option for beginner traders looking to develop trading strategies that include a diversified selection of assets and industries.

The primary tool on the Markesi platform is the Investment Strategy Builder. You can search financial instruments by sector, index, market cap and average daily volume and create a tailor-made strategy that suits your goals and risk profile.

Expected to be released soon, Marketsi Strategy Template will allow you to pick pre-made trading strategies that have been developed by forex experts. Markets.com states that the tool with cost a fraction of what portfolio managers charge with no hidden fees.

Trading Tools – MT4 and MT5

MetaTrader 4 and MetaTrader 5 are the two most popular mainstream trading platforms worldwide. Both MT4 and MT5 are incredibly popular due to the platforms inbuilt algorithmic trading strategies. You can fully automate trading using Expert Advisors (trading robots), that you either write yourself (using the MQL4 programming language on MT4 or MQL5 on MT5), or download online from the MetaTrader Marketplace.

Other trading tools available on MT4 and MT5 include:

• Backtesting features to test and optimise EAs and trading strategies
• Sophisticated charting tools for technical analysis
• Flexible trade sizes as small as 0.01 lots
• Risk management tools such as order types (i.e. stop-loss, trailing stops)
• An online marketplace with additional EAs and indicators, as well as access to a wide forex trading community

Markets.com Overview and Regulation

The forex community sees the online broker as trusted thanks to oversight from five major financial authorities in Australia (ASIC), Europe (CySEC), South Africa (FSCA), the UK (FCA) and in The British Virgin Islands (FSC). Markets.com is also very transparent with its disclosure and trading conditions as the broker publishes its quarterly execution stats and the parent company is listed on the London Stock Exchange and part of the FTSE 250 Index.

If you want a multi-regulated broker with extensive CFD trading tools plus access to thousands of financial instruments, Markets.com is a great option.

View Markets.com Review >>Visit Markets.com >>

Plus500 Has The Best Beginner Trading Account

Plus500 is a good option for those new to trading forex thanks to its risk management tools. To help protect yourself against volatility and the high risk of trading complex instruments, Plus500 offer features like premium order types and investor protections.

Beginner forex traders should consider the Plus500 online trading account based on:

• Negative Balance Protection
• Guaranteed Stop Loss Orders
• No Commissions And Hidden Fees
• Mobile Trading Platform

1) Negative Balance Protection

Trading forex markets are high-risk due to leverage increasing exposure to the market. This means that if the market moves in the wrong direction, losses can quickly accumulate and could exceed a trader’s deposit. When this occurs, most forex and CFD brokers will request the negative balance be paid back to get reach a zero balance.

Plus500 offers negative balance protection, which means that if a trader goes into a negative balance that the fx broker will adjust the online trading account to $0. This means that if a forex trader places the minimum deposit with Plus500 of $100 (for a credit/debit card) that losses won’t exceed this amount.

2) Guaranteed Stop Loss Orders

A guaranteed stop-loss order (GSLO) order type is similar to negative balance protection but of individual trades. This means that when placing an individual trade a maximum loss amount can be set and Plus500 guarantees the trader’s loss will not exceed this level. This shouldn’t be confused with a standard stop-loss order which also allows a trader to set the maximum loss, but losses can exceed this level due to slippage. It should be noted that when the GSLO order type is activated that the spreads will be wider for that trade. Margin requirements may also need to be met.

3) No Commissions And Hidden Fees

Plus500 primarily makes its brokerage from the market-based spreads (the difference between the buy/sell price). This simplifies calculations for brokerage compared to other brokers who charge a commission, payment processing fees, and forex platform usage fees. Some standard fees to take note are a $10USD inactivity fee if a trader doesn’t log into their account for 3 months and an overnight funding fee if market positions are held over a sustained period.

4) Training Facilities

Plus500 has Webinar and online forex training facilities for beginner to expert currency traders. Educational resources are also available through web-based tutorials and videos. News and information on global markets can also be easily accessed on the site or fx platform.

5) Easy To Use Mobile Trading Platform

Plus500 focus is primarily on mobile trading with trading apps on iPhone, iPad, Android and window. Mobile trading can also occur on the webtrader, while a Windows 10 trader exists for those using a desktop device. The mobile trading apps have full functionality with the ability to monitor markets and make live trades. These can also be accessed through the Plus500 demo account. These capabilities led to Plus500 been viewed as best for beginners on the 2021 forex trading platform comparison.

Summary Why Plus500 Has The Best Beginner Trading Account

Plus500 has over 300,000 active customers and is a regulated broker in Australia by ASIC (AFSL 417727), in South Africa by FSCA (FSP 47546) and in the UK by FCA (FRN 509909).

Plus500 is ideal for beginners with risk management tools, training and an easy to use trading platform.

Plus500 is the best forex broker for beginners based on their worldwide reputation, broker reviews, good customer support and educational resources. The minimum deposit to open an account is $100 from either a credit or debit card with other funding methods available.

View Plus500 Review>>Visit Plus500 >>

City Index Best Range Of CFDs

City Index (part of Gain Capital) offers the most comprehensive forex and CFDs across a range of asset classes. This includes indices, shares, cryptocurrency, commodities, interest rates and options. This is the ideal broker for those looking to trade a range of financial products (not just currency). They offer the lowest spreads of any forex broker when it comes to the ‘spread only’ category with no commissions charged to traders. This is termed the ‘standard account’ by most fx brokers.

1) Indices Trading

City Index offers 21 Indices to trade across Europe, Asia and the USA. Trading in this class has fixed spreads from 1 point. Leverage can be up to 500:1 depending on your residence with the ability to trade contracts on options, futures and cash.

2) Share Trading

City Index allows individuals to trade contracts for difference across over 4,500 shares. The commission on global shares is 0.09%. Due to the high-risk nature of margin retail forex and share fluctuations, a stop-loss order is recommended. In some cases, a guaranteed stop-loss order (GSLO) order type can also be made to lock in the maximum loss of a trade. If your new to high-risk trading, this should be considered as part of your trading strategy.

3) Cryptocurrency Trading

City Index trading is across the major crypto classes including Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Ripple. As shown below in 2021 City Index has the lowest costs when it comes to cryptocurrencies. Please note, the Financial Conduct Authority (FCA) in the UK no longer allows you to trade cryptos as a retail trader.

4) Commodity Trading

City Index allows trading on over 25 commodities from oil, coffee to wheat. This can be done with leverage, which varies by the commodity chosen. The big advantage of commodity trading is the tighter spreads compare to other trading markets.

5) Interest Rates And Options Trading

The final trading grouping is Bonds, Interest Rates and Options. These are commission-free, with spreads only charged. Leverage is at the higher range, making it a high-risk tradable CFD.

Summary Of City Index Range Of CFD Markets

City Index (Gain Capital) is Australian Securities and Investments Commission regulated with AFSL 345646 and is known as the service provider Forex.com in the UK, USA and Canada with licenses FCA 113942 and NFA 0339826.

With the lowest standard accounts spreads, high leverage and a range of CFDs, City Index is the low-cost solution for those looking to trade more than just currency.

With no initial deposit requirements and no funding fees (including from credit cards), City Index is recommended for those looking to trade forex and a range of financial products and no commissions.

View City Index Review>>Visit City Index >>

eToro Has The Best Social Trading Platform

eToro is the worldwide leaders when it comes to social trading/copy trading with:

• Social/Copy Trading
• Copy Portfolios
• CFD Trading

Social Trading

eToro focus on social trading with the trading platform having an inbuilt social news feed. The main feature used is copy trading where a trader can be selected based on their past trading activity. The social trading module displays key stats from past returns to the level of historical risk associated with the individual. eToro also rewards individuals who have their trades copied to maximise the number of individuals engaged in the platform.

Copy Portfolios

Copy portfolio is similar to copy traders but combines similar individuals or markets (eg crypto). This can help to diversify risk from just copying one instrument or one trader. Options include market portfolios, top trader portfolios, and partner portfolios.

CFD Trading

Through its propriety trading platform that includes mobile trading and mobile apps contracts for difference products and asset classes can be traded. This includes share (stocks), crypto-assets (crypto), commodities, EFTs, indices and 47 forex pairs.

Why Choose eToro For Social Trading

eToro is quite different from all other online brokers and was built around social trading, especially its mobile trading platform. With the largest number of copy traders worldwide thanks to the way the broker incentives traders, this is the best broker for those looking for this functionality when you trade forex markets or contracts for difference.

Open a demo account >>Visit eToro >>

FXCM Is The Leading Low Deposit Broker

Traders new to forex or looking to trade low volumes should consider FXCM based on their:

• Low deposit requirement for a live account
• No sign-up requirement for a demo account
• No fee funding and payment methods
• Easy to use forex software

What Is The Minimum Deposit Requirement Of FXCM?

The FXCM minimum deposit requirement is $50 internationally,  £300 in the UK and €300 in the Euro region. Deposit methods include Visa, MasterCard, and Discover debit/credit cards, Skrill, UnionPay, Neteller, Poli and in Australia BPAY. The minimum trade size is one lot.

FXCM Trading Station Demo Account

FXCM offers the only demo account that doesn’t require the trader to provide their basic details. From any FXCM webpage, there is the option to “try demo” which launches the web-based demo platform. Virtual money up to $5,000 can be traded in the demo account with most order types supported except for stop/limit trades.

Like any demo account, FXCM replicates real currency markets but is still simulated. Differences can cause delays in pricing, liquidity restrictions, and not all instruments are tradable. Other factors from no slippage to rejected orders may not be present in a demo account. FXCM offers support for demo account users, but you need to leave the trading platform for live-chat, etc. They also offer an Islamic account which is swap-free.

Overall, the ease of opening a demo account anonymously and instantly with a simple tutorial to get you started is why FXCM has won this CFDs category. It should be noted though they are at the higher end when it comes to brokerage.

View FXCM Review >>Open FXCM Demo Account >>

IG Group Is The Most Regulated Online Broker

Those looking to avoid a scam broker at all cost should consider IG as they:

1. Are the largest retail foreign exchange broker in the world
2. Have licences with most currency trading regulators
3. Have additional corporate governance safeguards

IG Size

IG Markets (now known as IG Group) is one of the older brokers founded in 1974. They operate in 16,000+ foreign exchange market and have over 178,000 clients across the globe. This makes them the largest of the top 10 brokers hence the claim that IG is the no.1 CFD trading and spread betting service provider.

IG Governance

IG has a signatory of the FX code of conduct. These global currency trading guidelines help protect traders from scams occurring in future and protect traders’ funds.

IG Regulation

IG is regulated by most ‘tier 1’ government authorities including ASIC (Australian Securities & Investment Commission), JFSA (Japanese Financial Services Authority) and MAS (Monetary Authority of Singapore). Other regulators include FINMA (Switzerland/Swiss Financial Market Supervisory Authority), CFTC (Commodity Futures Trading Commission), and FCA (Financial Conduct Authority) with is the successor of the Financial Services Authority (FSA). The requirements of these regulators help mitigate the risk of forex scams that past brokers have been known to have. They are one of the top providers when it comes to regulation and spreads for their standard account (commission-free).

View Full IG Review>>Visit IG >>

Interactive Brokers Is Ideal For Experts With No Dealing Desk

Professional forex traders only should consider Interactive Brokers due to:

• Very high minimum deposit requirements
• High inactivity fees for low-volume traders
• Low Fees, ECN spreads and no dealing desk
• Most financial markets tradable, including stockbroking

Trading Requirements Of Interactive Brokers

Interactive Brokers is not designed for most traders. Only professional traders with high currency trading volume can trade with the broker. To qualify these traders, the service provider’s minimum deposit of $10,000 US Dollars. There are also heavy penalties (known as maintenance fees) if commissions made don’t exceed $10k USD for the initial 8 months. This means real money volumes need to be traded consistently.

ECN Broker Spreads And Commissions

Interactive Brokers offers true ECN accounts (market maker) allowing trading directly with liquidity providers with no dealing desk. This is similar to IC Markets and Pepperstone. A key difference comes when to their commission, which is lower only when an online trader’s volume is very high such as exceeding $5m USD.

Financial Instruments Available

Interactive Brokers offer the most financial markets of any foreign exchange broker across a range of asset classes. This is because in addition to currency trading they offer stockbroking, mutual funds, and even hedge fund products. This allows high volume professional traders to have an all-in-one broker for all their financial requirements.

Overall, if you’re a VIP retail forex trader looking to start trading high-volume consistently in the future across a wide range of financial markets then Interactive Brokers is the best all-in-one solution that offers the lowest brokerage from spreads to commissions.

View Full Interactive Brokers Review >> Visit Interactive Brokers >>