The best forex brokers follow rules set by tier-1 regulators such as ASIC in Australia and the FCA in the United Kingdom. As CFD and forex trading comes with high risk, choosing a trusted forex broker and trading platform will help you avoid scams.
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These brokers have strong reputations and can be trusted as they are multi-regulated across the world:
| Broker | Our Rating | Regulation | Standard EUR/USD Spread |
Standard GBP/USD Spread |
Standard AUD/USD Spread |
Raw EUR/USD Spread |
Raw GBP/USD Spread |
Raw AUD/USD Spread |
Commissions (USD Base) |
MetaTrader 4 | MetaTrader 5 | cTrader | Execution Speed | Minimum Deposit | Currency Pairs | Crypto CFDs | Retail Leverage | Prof. Leverage | Read Full Review |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Read review ›
|
98 |
SCB, ASIC FCA, CySEC |
1.10 | 1.40 | 1.20 | 0.10 | 0.40 | 0.20 | $3.50 |
|
|
|
77ms | $0 | 62+ | 12+ | 30:1 | 500:1 |
|
Read review ›
|
85 |
ASIC, FSA-S CySEC |
0.62 | 0.83 | 0.77 | 0.02 | 0.23 | 0.17 | $3.50 |
|
|
|
134ms | $0 | 61+ | 18+ | 30:1 | 500:1 |
|
Read review ›
|
82 | ASIC, VFSA, FSA-S | 0.93 | 1.08 | 0.92 | 0.13 | 0.21 | 0.12 | $2.25 |
|
|
|
79ms | $0 | 90+ | 10+ | 500:1 | 500:1 |
|
Read review ›
|
71 |
ASIC, FCA, BaFin FINMA, NFA/CFTC, MAS CySEC, DFSA, FMA JFSA, BMA, FSCA |
1.13 | 1.66 | 1.01 | 0.16 | 0.59 | 0.29 | $6.00 |
|
|
|
174ms | $450 | 100+ | 12+ | 30:1 | 200:1 |
|
Read review ›
|
80 |
ASIC,CySEC FSCA,FSA-S,FSC-M |
1.1 | 1.3 | 1.3 | 0.10 | 0.20 | 0.20 | $3.00 |
|
|
|
225ms | $100 | 70+ | 10+ | 30:1 | 500:1 |
|
Read review ›
|
43 |
ASIC, CySEC, MFSA FCA, FSA, FINRA GFSC |
1.0 | 2.0 | 1.0 | - | - | - | - |
|
|
|
130ms | $200 (Australia), $50-$100 (EU) | 49+ | 46+ | 30:1 | 400:1 |
|
Read review ›
|
46 |
FCA, DFSA, CySEC BaFin, CMNV, KNF |
0.9 | 1.4 | 1.3 | 0.9 | 0.14 | 0.13 | - |
|
|
|
160ms | $250 | 49+ | 16+ | 30:1 | 500:1 |
|
Read review ›
|
81 |
FCA, CIRO, ASIC MAS, JFSA, FSC-BVI KNF, NFA/CFTC, MFSA |
0.6 | 0.9 | 0.7 | - | - | - | - |
|
|
|
- | $0 | 70+ | 4+ |
|
To be a trusted forex broker, it’s important to be regulated by one or more tier-1 financial bodies. Some examples of tier-1 regulators include ASIC in Australia and the FCA in the UK. The list below contains some of the most trusted forex brokers globally, based on a specific trading advantage over other brokers.
Forex Panel Score
Average Spread
EUR/USD = 0.1
GBP/USD = 0.4
AUD/USD = 0.2
Trading Platforms
MT4, MT5, cTrader, TradingView, Capitalise.ai
Minimum Deposit
$0
Why We Recommend Pepperstone
We think Pepperstone use of seven regulators, including four Tier 1 authorities like ASIC and the FCA plus long term presence (since 2010) instills trust.
Notably, the broker delivers fast execution speeds, averaging 77 ms in our tests, and have low average spreads (0.1 pips for the Razor account). Along with MT4, MT5, cTrader and TradingView platforms Pepperstone has a compelling blend of trust, speed, and cost-effectiveness which led to our high 98/100 review score.
Pros & Cons
Broker Details
The Best Multi-Regulated Forex Broker Overall
Pepperstone is an Australian broker that holds financial services licences from multiple major financial authorities around the world. As forex and contracts for difference (CFDs) are complex instruments that come with a high risk of losing money, it is vital that retail investor accounts sign up to a trusted, regulated broker.
Top-Tier Global Regulation
Pepperstone is licenced by five financial regulators, allowing the broker to operate in various locations and accept customers from around the world.
Depending on which of the five Pepperstone subsidiaries you register with, you will be able to trade with different amounts of leverage and receive different investor protections. Although each location offers different levels of protection, the global forex trading community sees all Pepperstone branches as trustworthy because of their transparency and respect for local regulation.
As shown in the table below, the UK’s FCA enforces the strictest financial regulation, with leverage caps of 30:1 and negative balance protection a requirement. Negative balance protection is a risk management policy that ensures you do not end up with a trading account balance in the negatives and consequently indebted to your broker. Likewise, the FCA’s Financial Services Compensation Scheme (FSCS) means if your broker becomes insolvent and you cannot withdraw your trading account balance, you can claim up to £85,000.
| Location and Regulator | Pepperstone UK (FCA), Australia (ASIC), Europe (BaFIN, CySEC) | Pepperstone (SCB) | Pepperstone UAE (DFSA) | Pepperstone Kenya (CMA) |
|---|---|---|---|---|
| Segregated Client Funds | ✔ | ✔ | ✔ | ✔ |
| Financial Compensation Scheme | ✔ (FSCS up to £85) | ✘ | ✘ | ✘ |
| Negative Balance Protection | ✔ | ✘ | ✘ | ✘ |
| Maximum Leverage - Major Forex Pairs | 30:1 | 500:1 | 50:1 | 400:1 |
| Maximum Leverage - Minor Forex Pairs, Major Indices, Gold and Silver | 20:1 | 500:1 | 50:1 | 400:1 |
| Maximum Leverage - Commodities and Minor Indices | 10:1 | 500:1 | 20:1 | 400:1 |
| Maximum Leverage - Shares | 5:1 | 20:1 | 10:1 | 20:1 |
| Maximum Leverage - Cryptocurrencies | 2:1 | 5:1 | 5:1 | ✘ |
When trading with leverage, you are magnifying both your gains and losses, increasing the high risk of forex and CFDs even further. Therefore, depending on the Pepperstone subsidiary you sign up with, the maximum leverage you can trade with will vary. Although ASIC currently allows high maximum leverage of 30:1 for forex trading, the regulatory body is introducing new rules starting Feb 2022, where leverage is capped at 30:1 for major currency pairs and 20:1 for minor FX pairs.
Traders based in the United Arab Emirates (UAE) will face leverage caps of 50:1, while traders based elsewhere can access leverage up to 200:1 through the SCB-regulated subsidiary in the Bahamas.
Trading Account Types
Regardless of the Pepperstone subsidiary you sign up with, you will be able to choose from two main trading account types – a commission-free standard account or a commission, ECN-like Razor account. Both account types provide you with ultra-competitive spreads thanks to Pepperstone’s no-dealing desk execution model.
Unlike market makers that use only one source of liquidity, no dealing desk brokers utilise multiple liquidity providers providing you access to the best forex spreads available at any given time.
Standard Account Type
A great option for beginner traders, standard account types offer a simple pricing structure with commission-free forex trading. While spreads are wider than commission accounts, there are no additional commission fees on top of the spread, removing the need to calculate commission costs as you are trading.
The broker offers minimum spreads starting from 1.0 pips for standard account holders, with average spreads shown in the table below. When compared to other top online forex brokers, Pepperstone provides the tightest spreads across the board. For major currency pairs like the EUR/USD, Pepperstone clients can access no-commission spreads averaging 1.16 pips, while other FX brokers like Forex.com offer 1.30 pips. Again, for the EUR/GBP currency pair, Pepperstone offers 1.35 pips when Tradersway promotes an average spread of 2.50 pips.
|
No-Commission Spreads
|
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|---|---|---|---|---|---|
|
1.10 | 1.50 | 1.60 | 1.40 | 2.00 |
|
1.32 | 1.73 | 3.19 | 1.37 | 1.87 |
|
1.20 | 1.20 | 2.70 | 1.50 | 1.70 |
|
1.40 | 2.60 | 4.90 | 2.50 | 2.60 |
|
1.20 | 2.60 | 2.30 | 1.50 | 2.80 |
|
2.00 | 2.05 | 1.54 | 1.71 | 2.13 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
If you want to try out commission-free trading prior to signing up to a live account, you can register for a free demo account. To start trading with real money, Pepperstone does not require you to make a specific initial minimum deposit, although they recommend at least $200.
ECN-Pricing Razor Account
With spreads starting from 0.0 pips, the broker offers an excellent ECN-like trading experience via its Razor Account type. As well as competitive spreads, forex traders can enjoy fast execution speeds and minimal slippage with no dealing desk interference. Because spreads are as low as 0.0 pips, to compensate Pepperstone for its brokerage services, you pay a flat-rate commission fee of AUD3.50 per side, per 100k traded.
As with its standard pricing, Pepperstone’s Razor spreads are tighter than other FX brokers. You can trade average spreads of 0.16 pips for the EUR/USD and USD/JPY currency pairs, compared to Tradersway which offers 0.50 pips or Nova FX that averages 0.70 pips.
|
Commission Spreads
|
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|---|---|---|---|---|---|
|
|
0.10 | 0.40 | 0.40 | 0.60 | 0.60 |
|
0.30 | 0.50 | 0.50 | 0.60 | 0.60 |
|
0.30 | 0.30 | 0.50 | 0.60 | N/A |
|
|
0.50 | 0.50 | 0.60 | 0.50 | 0.80 |
|
1.00 | 1.10 | 1.40 | 1.20 | 1.40 |
|
n/a | n/a | 0.60 | 0.20 | 0.30 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
As well as the option of trading commission-free or ECN-like spreads with a trustworthy and highly regulated broker, Pepperstone offers the following key features:
Verdict On Pepperstone’s Trust Factor
We rated Pepperestone as having the best trust factor based on their tier 1 regulation from Australia, Germany to the UK. The provider was rated as the best broker for forex trading based on their published (and tested) lowest standard account spreads, fast execution speeds and award-winning customer service.
Forex Panel Score
Average Spread
EUR/USD = 0.02
GBP/USD = 0.23
AUD/USD = 0.17
Trading Platforms
MT4, MT5, cTrader
Minimum Deposit
$200
Why We Recommend IC Markets
Established in 2007 and regulated by ASIC and CySEC and having reliable, low spreads, we think IC Markets has earned a spot on our most trusted broker list and a rating of 84/100.
With an average RAW spread on EUR/USD at 0.02 pips—significantly lower than the industry average of 0.22 pips—in our opinion IC Markets stands out. We also liked that you can trade with MT4, MT5, and cTrader.
Pros & Cons
Broker Details
The Top Choice Of Trusted Trading Platforms
IC Markets is a multi-regulated forex broker that offers a great selection of top trading platforms and access to financial markets. As well as a competitive trading environment, the broker’s top-tier regulation and customer support means the worldwide forex community sees IC Markets as a trustworthy broker.
Similar to Pepperstone, the broker offers two main account types. A standard account provides commission-free currency trading, while the commission-based raw spread account type will give you access to tight ECN-Pricing spreads.
Regardless of the account type you sign up to, your orders will be executed with no dealing desk (NDD) interference. NDD execution allows for transparency as the spreads a broker is offering are sourced from multiple external liquidity providers. This adds another layer of trust when compared to market makers that set their own bid-ask prices (spreads) and fill orders using internal liquidity sources.
Forex Trading Platforms
As an IC Markets forex trader, you have a choice of three trusted mainstream trading platforms – MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader. Depending on the platform you choose, a different selection of trading tools and CFDs will be available.
The account type you sign up to also determines the trading platforms you can access. You are restricted to MetaTrader platforms as a standard account holder, while raw accounts are available with MT4, MT5 or cTrader.
MetaTrader 4 and MetaTrader 5
MetaTrader4 (MT4) and MetaTrader 5 (MT5) keep their titles as the most trusted forex trading platforms because of their long-standing reputations, advanced analysis tools, large forex community, and automated trading features.
Both MT4 and MT5 are available as a desktop trading platform, webtrader platform, or mobile apps for Android and iOS devices.
cTrader
cTrader is a forex platform that provides an institutional-grade trading environment with high-speed order execution. Ideal for ECN-Pricing trading, you can access level 2 depth of market pricing on cTrader, with prices streamed directly from multiple liquidity providers. To ensure fast order execution, the broker’s cTrader servers are hosted by Equinix’s London Data Centre.
Key features of using cTrader with an IC Market’s raw account includes:
Although in total IC Markets offers 7 different asset classes as listed below, you can only access foreign exchange markets and equity indices when trading CFDs on cTrader. To access a more diverse range of CFDs you will be required to choose a MetaTrader platform.
CFD And Forex Market Access
The financial markets you can access depend on the trading platform you are using. MT4 and cTrader were predominately designed for retail foreign exchange trading, compared to MT5, which is a multi-asset platform where share trading is permitted. When trading CFDs with IC Markets, you will be able to access the following financial markets:
Financial Regulator
The broker operates three subsidiaries, two regulated by tier-1 financial authorities and one offshore.
Customer Support
Being able to get in touch with your broker should be easy. IC Markets have an excellent reputation for efficient customer service with 24/7 availability. You can use email or phone to contact a customer support representative or use the live chat feature online.
IC Markets – Trusted Trading Platforms
With MetaTrader 4, MetaTrader 5 and cTrader available, IC Markets offers the three most trusted trading platforms worldwide.
Forex Panel Score
Average Spread
EUR/USD = 0.13
GBP/USD = 0.21
AUD/USD = 0.12
Trading Platforms
MT4, MT5, cTrader
Minimum Deposit
$0
Why We Recommend Fusion Markets
We say Fusion Markets is one of the most cost-effective brokers not just for spreads but commissions too and they are regulated by ASIC for added trust.
Our research reveals the broker’s commission is only $2.25 per lot, significantly below the industry average of $3.48. The RAW account boasts exceptionally low spreads, averaging 0.22 pips on EUR/USD, surpassing the industry average of 0.49 pips.
Platforms to trade with include the popular MT4, MT5 and cTrader.
Pros & Cons
Broker Details
The Broker That Offers Promise Of The Lowest Commission Fees
Fusion Markets is a top Australian forex broker that is overseen by the country’s top-tier financial regulator. While the majority of clients sign up to the ASIC regulated branch, Fusion Markets is also regulated offshore by the Vanuatu Financial Services Commission (VFSC).
Key Features Of Fusion Markets:
Low Commission Fees
Fusion Markets ZERO account charges ultra-competitive commission fees when compared to other top brokers. As well as low fees, ZERO account holders can trade tight ECN-like minimum spreads of 0.0 pips, meaning overall trading costs are significantly less than other forex brokers.
While most brokers charge AUD $3.50 per side per 100k traded, Fusion Markets ZERO traders pay a mere $2.25 per side. As shown below, regardless of your accounts pay currency, you will pay nearly half of what competing broker’s commission charges.
On top of low trading fees, the broker also charges no account management penalties such as inactivity, deposit or withdrawal fees. Likewise, Fusion Markets enforces no minimum deposit requirements, meaning you can open a trading account with as little as $0.
Fusion Markets – The Lowest Commission Fees
With commission fees of AUD $2.25 per side per 100,000 traded, Fusion Markets charges significantly lower commission fees compared to other top brokers.
Forex Panel Score
Average Spread
EUR/USD = 0.16
GBP/USD = 0.59
AUD/USD = 0.29
Trading Platforms
MT4, IG Trading Platform, L2 Dealer, ProRealTime
Minimum Deposit
$0
Why We Recommend IG Group
IG Group has the most extensive range of trading products we’ve seen, with over 17,000+ markets ranging from forex to indices. The broker is regulated by 13 authorities, including five Tier-1 regulators like CySEC, FCA, and ASIC – the most regulated broker we’ve reviewed.
The broker has decent average spreads at 1.13 on EUR/USD with no commission on trades. We were impressed by the range of trading features IG Group offers for its low fees, scoring them 81/100 in our reviews.
Pros & Cons
Broker Details
One Of The Oldest And Largest Forex Brokers
Established in 1974, IG is one of the oldest forex brokers with over 45 years of industry experience. As a market maker broker, you can sign up to a commission free online trading account that requires no specific initial minimum deposit. As an IG client, you can trade an extensive selection of 17,000+ CFDs derived from the following asset classes:
Global Regulation
Signing up to a reputable broker will help you avoid scams and reduce the high risk of trading CFDs by providing various investor protections (dependent on where you live). Worldwide, IG is seen as a well-respected and global broker with 10 different highly regulated subsidiaries:
As shown above, segregating client funds from IG’s operating capital is a standard investor protection policy offered by the broker. In the unlikely event IG was to become insolvent, deposit compensation schemes are only available for European traders, including those from Switzerland and the UK.
If you are based in the UK, the US or Europe (excluding Switzerland), you will also receive negative balance protection (NBP). This form of investor protection means you cannot lose more than you have deposited into your trading account, eliminating the risk of ending up in debt to IG.
IG – A Large and Established Broker
With nearly 50 years of forex industry experience, IG is one of the oldest and largest brokers. 10 different IG subsidiaries operate globally, each overseen by top-tier financial regulators.
Forex Panel Score
Average Spread
EUR/USD = 0.1
GBP/USD = 0.2
AUD/USD = 0.1
Trading Platforms
MT4, MT5
Minimum Deposit
$100
Why We Recommend FP Markets
Licenced by ASIC and CYSEC, FP Markets has been in operation nearly 20 years. Our research found the broker offers low average RAW spreads, starting at 0.1 pips on major pairs like EUR/USD and USD/JPY—considerably tighter than competitors.
Our tests done by Ross Collins also found FP Markets is good for scalpers due to its fast execution speeds, averaging 99 ms for market orders. Trading can be done using MT4 or MT5 trading platforms.
Pros & Cons
Broker Details
The Transparent Spreads And Low Fees Broker
FP Markets is an ECN-Pricing forex broker that is overseen by multiple financial authorities. FP Markets is a great option if you are looking for a broker that offers ultra-tight spreads while following the regulation set by top-tier financial authorities.
Depending on where you live, you can sign up to one of four FP Markets branches.
As with multi-regulated competing brokers, each FP Markets branch offers different levels of investor protection. ASIC and the FSA require client funds to be kept in segregated accounts, separating client and company funds. But, in Europe, CySEC provides more protection with an investor compensation scheme and the requirement of negative balance protection policies.
Transparent Pricing And Fee
You will be able to access ultra tight spreads while paying low fees regardless of where you live and the FP Markets subsidiary you sign up to.
The broker offers two different trading account types and pricing structures. Both accounts require a minimum deposit of AUD $100 to start trading and can be used with either MetaTrader 4 or MetaTrader 5:
As a no dealing desk (NDD) broker with ECN-pricing and execution, FP Markets offers a transparent pricing structure. The broker sources its liquidity from several external providers, allowing you to gain access to the tightest spreads in the market.
Along with ultra-tight spreads, the ECN pricing model means traders can enjoy low latency execution and minimal slippage when trading on MT4 and MT5.
FP Markets is an ECN-pricing broker that offers ultra-tight spreads thanks to its deep liquidity. The NDD broker utilises various external liquidity sources, meaning traders gain access to competitive aggregated pricing.
Forex Panel Score
Average Spread
EUR/USD = 1
GBP/USD = 2
AUD/USD = 1
Trading Platforms
eToro Trading Platform
Minimum Deposit
$50
Why We Recommend eToro
We think eToro stands out with its CopyTrader platform as it allows easy replication of trades from experienced investors—an invaluable resource for beginners.
With low average spreads, starting from 1 pip on EUR/USD, eToro proves more cost-effective from other copy trade platforms that have added markups for copy trading.
eToro is Regulated by six authorities, including FCA, ASIC, and CySEC, eToro’s trustworthy regulation, innovative social trading tools, and competitive spreads make it a top choice for a social trading platform.
Pros & Cons
Broker Details
The Best Social Trading Platform With A Large Trusted Community
eToro is one of the world’s largest social trading platforms and communities with millions of traders from over 140 countries. The broker provides account mirroring services via its CopyTrader features, allowing you to copy the trading strategies of more experienced eToro clients.
To find trading strategies to copy, you can view traders’ stats and compare their trading history and risk profiles. As well as copy trading, you can communicate with other members of the forex community with the ability to share ideas and learn from one another.
Similarly to other social networks, eToro’s proprietary trading platform has a newsfeed feature where you can keep up to date with others’ strategies and the latest market news. 
eToro Regulators
The social-copy trading broker operates in four major jurisdictions that are overseen by top-tier financial authorities:
eToro – Largest Social Trading Community
As well as social trading, eToro customers gain the advantage of accessing one of the largest forex communities with millions of traders.
Forex Panel Score
Average Spread
EUR/USD = 0.9
GBP/USD = 0.14
AUD/USD = 0.13
Trading Platforms
MT4, xStation 5
Minimum Deposit
$0
Why We Recommend XTB
XTB is a top broker that provides decent research and education resources for free while being regulated by CySEC and the FCA, two of the top regulators in the world. What impressed us was the extensive catalogue of educational resources available, covering everything from basic market terminology to trading strategies.
Interestingly, the broker has low average spreads from 0.9 pips on EUR/USD, one of the lowest we’ve seen.
Pros & Cons
Broker Details
A Good CFD Range, Awarded Best CFD Broker
XTB is an award-winning CFD broker offering impressive access to over 1,500 financial markets. The forex trading community considers the broker trustworthy and one of the best due its oversight from four major European financial authorities as well as an offshore regulator:
CFDs For Online Trading
XTB customers can trade thousands of CFDs derived from six major asset classes:
With a good range of CFDs and strong regulatory oversight, XTB is often recognised as one of the world’s top brokers. Various forex broker review sites have crowned XTB as the best CFD broker for online trading when compared to other brokers such as Saxo Bank, Interactive Brokers, FXCM or OANDA.
XTB – Award-Winning Broker With Good CFD Range
The broker offers over 1,500 different CFD products to choose from. As well as winning various awards for their brokerage services and CFD range, XTB is regulated by multiple financial authorities in Europe and offshore.
Forex Panel Score
Average Spread
EUR/USD = 1.4 GBP/USD = 2 AUD/USD = 1.4
Trading Platforms
MT4, TradingView, OANDA Trade (fx Trade)
Minimum Deposit
$0
Why We Recommend OANDA
Our extensive tests awarded OANDA a perfect score of 100/100 in the Trust category, which is a testament to its long-standing operation since 1996 (one of the oldest brokers). The broker is regulated by several major authorities across many jurisdictions, particularly the NFA/CFTC, MAS, CIRO, FCA, and ASIC.
With OANDA, you are trading with a broker that has stood the test of time and regulatory scrutiny.
Pros & Cons
Broker Details
OANDA is our most trusted forex broker, of which we gave a perfect score of 100/100 for trust. We rate OANDA highly as a safe broker because eight different regulation authorities regulate them.
The broker also has a clean record regarding warnings from the regulators and a good online reputation based on many five-star Trustpilot reviews.
Other trustworthy brokers include IG Group, CMC Markets and Interactive Brokers, all with trust scores above 90.
To be a trusted forex broker means a combination of things from being regulated by an authorised regulatory body to having an excellent reputation and a history of solid trading practises.
The methodology we use for measuring trust includes how many tier 1, 2 and 3 regulations a broker has, the age of the broker, where its headquarters is based and any core issues the broker has had with its regulators.
As mentioned above, OANDA ticks all of our trust boxes, which is why we scored the broker a perfect 100/100 for trust.
There is no single global body that regulates every single forex broker. Instead, forex brokers are regulated by several governmental and independent regulators such as the Australian Securities & Investment Commission (ASIC) in Australia and the Financial Conduct Authority in the United Kingdom.
These supervisory bodies regulate forex by setting standards for all brokers regulated under their jurisdiction. This ensures forex brokers have the utmost care and due diligence in managing your funds.
As such, we recommend you choose a broker that is regulated in the jurisdiction, country or region you trade in to ensure client safety and security.
Yes, you can trust ECN brokers, especially ECN brokers that are regulated by the Australian Securities & Investment Commission (ASIC) in Australia and the Financial Conduct Authority (FCA) in the United Kingdom.
This is because ECN (Electronic Communication Network) brokers offer a solid and fair pricing model, with technology that provides high-speed execution. As such, ECN brokers can offer increased pricing transparency and lower spreads while often reducing slippage and re-quotes because of the fast trade execution.
We do recommend, however, that you check if an ECN broker is regulated, particularly if it is regulated in the country you are trading from. This is to enhance the trust of the ECN broker you trade with.
ECN, or Electronic Communication Network brokers have no dealing desks and directly connect you to liquidity providers who buy and sell on the interbank markets without the need for an intermediary.
As such, No-dealing desk brokers, sometimes referred to as straight-through processing (STP) brokers, offer variable spreads, give no re-quotes, and put orders through instantly.
Yes, you can trust regulated market makers but it is important to note that market makers are the counterparty to your trades. While this does not necessarily mean they are bad, it does mean that when you make losses, they make gains.
Often, market makers will charge wider spreads through commission-free accounts to factor in the lack of commissions, which is how they make money.
As with all brokers, it’s important to choose a market-maker broker that is regulated in the jurisdiction, country or region that you’re trading from to ensure the trust and safety of your funds.
IC Markets is the forex broker that offers the lowest spreads. The broker offers average spreads of 0.62 pips for EUR/USD on a Standard account and a RAW account average spread of 0.2 pips for EUR/USD.
IC Markets also delivered low spreads based on our testing, conducted by our chief of technology, Ross Collins. The broker average spreads of 1.03 pips (lowest) for its Standard account and 0.32 pips (third-lowest) for its RAW account.
Other low-spread forex brokers we like include Pepperstone for zero-pip spreads, Fusion Markets for low RAW spreads and OANDA for low Standard account spreads.
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RAW Account Spread Comparison
|
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|---|---|---|---|---|---|
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0.02 | 0.17 | 0.50 | 0.27 | 0.30 |
|
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0.10 | 0.20 | 0.60 | 0.40 | 1.00 |
|
0.02 | 0.05 | 0.36 | 0.19 | 0.23 |
|
0.10 | N/A | N/A | N/A | N/A |
|
0.50 | 0.60 | 1.10 | 0.80 | 1.30 |
|
|
0.30 | 0.50 | 0.60 | 0.50 | 0.50 |
|
0.17 | 0.30 | N/A | 0.54 | 0.68 |
|
|
0.30 | 0.40 | N/A | 0.50 | 0.50 |
|
0.44 | 0.42 | 0.50 | 0.40 | 0.30 |
|
0.20 | 0.40 | 0.60 | 0.50 | 0.70 |
Avg. spreads are taken from each broker's website and updated monthly. Last update on 04/01/2024
Forex brokers are regulated by applying for a license with the supervisory body regulating their jurisdiction’s financial markets. These bodies are nearly always government bodies but can also be independent bodies. Such bodies set the standards that brokers must comply with to operate.
In Australia, Forex brokers must hold a licence from the Australian Securities and Investments Commission (ASIC) to offer Forex trading services. In the UK, brokers must hold a licence from the Financial Conduct Authorities (FSA).
Some brokers do accept clients even though they don’t have the regulatory licence to operate in a particular country. These brokers are called offshore brokers and operate in a grey area as far as being able to accept clients without the right licencing.
Choosing a trustworthy forex broker involves evaluating several factors before deciding how trustworthy that particular broker is. We have highlighted the key trust factors below:
Always choose a trustworthy forex broker that is regulated by a reputable local regulation authority, such as the Australian Securities & Investment Commission (ASIC) in Australia or the Financial Conduct Authority (FCA) in the United Kingdom.
This will ensure the broker can legally offer financial services to you, follows strict guidelines set by the regulator and ensures the safety and security of your funds.
Select a trustworthy forex broker that offers an extensive list of risk management tools such as stop-loss and guaranteed stop-loss orders. Additional advanced trading tools will also help you trade more efficiently and minimise risk.
Successfully utilising a broker’s risk management tools will help minimise your potential losses in volatile market conditions and sharpen your decision-making without getting caught up in your emotions.
Reputation and a history of sound trading practices are vital for a broker. Avoid unregulated forex brokers that promise unrealistic returns.
The way to tell if a broker has a good reputation is through how old they are, how many authorities they are regulated by and reviews on websites like Trustpilot.
CMC Markets has the biggest number of currency pairs, with more than 338 pairs on offer with the Next Generation Trading platform and 175 with MetaTrader 4. The broker offers all the major currency pairs and a decent list of minor and exotic pairs on offer.
CMC Markets can offer this huge amount of forex pairs because you can trade the inverse quote of a standard currency pair. I.E. you can trade both EUR/USD AND USD/EUR.
You can look on the forex broker’s website and on the website of your local regulation authority to see if a broker is regulated. For Australians, you should check the Australian Securities & Investment Commission’s (ASIC, based in Sydney) website; for the United Kingdom, you should check the Financial Conduct Authority.
Disclaimer: The top forex brokers in Australia are regulated. They offer safe trading conditions to retail traders which is why they are the preferred choice by experienced traders and professional traders.
MetaTrader 4 (MT4), MetaTrader 5 (MT5), TradingView, and cTrader are the best forex trading platforms as they offer a user-friendly experience with advanced trading tools to facilitate trades.
You could also find them in your broker’s trading app (mobile trading) where you can access your platform’s account and trading instruments.
While some brokers have a no-deposit minimum, you need a minimum of $100 to start trading forex compellingly. That being said, most forex trading platforms will advise you to increase your minimum deposit to maximise profits, but you can start from $100 and work your way up.
Yes, off-shore brokers are trustworthy as long as they are transparent and regulated by a legitimate regulation authority. However they do have a lower level of supervision compared to brokers with regulation in Australia, Europe, The UK and other major developed economies.
In our opinion, unregulated off-shore brokers are not trustworthy and should be avoided.
Pepperstone is the forex broker with the best mobile app on their MetaTrader 4 (MT4) platform that offers a brilliant, user-friendly experience with excellent functionality and multiple advanced trading tools.
Yes, the MetaTrader platforms are reliable and used by millions of MetaTrader forex brokers worldwide because of their fast execution speeds, user-friendly layout, and advanced trading tools.
Hedging in forex trading is the act of strategically opening additional positions to protect against adverse movements in the forex market. Hedging is buying or selling forex to offset (or balance) your current positions and reduce the risk of your exposure.
Commissions are small additional fees attached to each trade on RAW accounts, usually calculated round-turn per 100k traded. Standard accounts do not have additional commission; rather the commission is worked into the spread.
Ask an Expert
Is OptiCapital Liofanno Limited a reputal company
We can’t recommend this broker since they are not regulated by any notable regulated