Best FCA Regulated Forex Brokers

2. Lowest Spread Forex Brokers

Our Testing Found IC Markets Has The Lowest Standard Account Spread

If you’re new to trading and still learning to calculate trading costs – or just can’t be bothered with the additional math – you’ll probably prefer to trade via a standard account. Unlike ECN or RAW accounts, where you’ll play a commission to execute your trades, Standard accounts make money for brokers by setting a minimum spread for a given currency pair. Think of it as pricing the commission into the trade at the outset, with the broker betting that enough trades will fall below the minimum to keep them in business (but not so many that traders don’t profit, too.)

We tested the spreads for standard accounts of 15 of the most popular brokers to determine which brokers’ spreads are best on average. This test used 6 major currency pairs, AUD/USD, EUR/USD, GBP/USD, USD/CAD, USD/CHF and USD/JPY and combined the average result from these pairs.

In our tests, IC Markets has the overall average lowest spread of 1.03 pips which is equal to an average trading cost of USD 9.63.  Other brokers to do well included CMC Markets with an average of 1.11 pips, and Fusion Markets with 1.19 pips.

Remember, the spread represents the minimum distance your trade needs to cover to generate a profit. For example, if you purchase a single lot through IC Markets, the trade will need to increase in value by USD 9.63 for you to profit. Compare that to the 2.22 pips (USD 20.83) you’d need to surmount with our worst-performing broker, and you begin to understand the importance of a tight spread. Low spreads are crucial to success for some popular strategies, such as scalping, which rely on micro-movements, or high-volume trading.

Our Verdict On IC Markets

Our test show that IC Markets have the best spread for trading with no commissions. With IC Markets, you can trade 61 currency pairs, and our tests showed the brokers averages the following for each of our tested pairs.

In addition to Forex pairs, you can trade 17 commodities, including gold and silver, 11 bonds and 160000+ stocks. These tools are all available via the MetaTrader 4, MetaTrader 5 and cTrader trading platforms.

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3. Best Forex Trading Platforms For Beginners

We Found City Index Has Good Risk Management For New Traders

If you’re not sure why it matters that a broker offers a guaranteed stop-loss order, that’s a good sign that you probably need one that does. Learning to trade involves a lot of trial and error, and most newcomers need some guardrails to protect their capital while honing a strategy. A guaranteed stop-loss, also known as a G-stop, ensures that you automatically exit a position when the market reaches a certain level. Regular stop orders are subject to slippage, but a G-stop requires your broker to fulfil your order at exactly the price you set. As you might imagine, this can easily end up a losing proposition for brokers, who make money off market volatility the same way traders do, and most don’t offer guaranteed stop-loss orders or charge a fee.

Other features new traders should look for are a good education library – as you will want to make sure your trading knowledge is up to scratch – and an easy-to-use trading platform.

Verdict On City Index

City Index is our choice for beginners. If you use the City Index Trading Platform, you can use a guaranteed stop loss to protect yourself should trades not go in your favour. You will need to pay a small premium, but we think this is a small price to pay in the whole scheme of things.

When it comes to educational materials, we scored City Index a solid 25 out of 30 for its resources, with top marks in both the intermediate and beginner categories. Ross and I also reviewed the available webinars and tutorials and found them both accurate and accessible.

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*Your capital is at risk ‘71% of retail CFD accounts lose money’

4. Best Forex Trading Apps

We Found Plus500 Offers The Best Mobile Trading Experience

While many traders like to tinker with strategies and observe the markets from the comfort of a desktop, others prefer the instant access and real-time engagement opportunities of trading on a mobile or tablet. If you fall into this category, working with a broker offering a premium trading experience in those formats is important. Plenty of excellent brokers offer apps – it’s practically a requirement at this point – but not all are created equal. Some are just watered-down versions of the web or desktop app only with fewer features.

Key features we think are important when choosing a mobile app include the user experience (UX) – most mobile apps are less visually appealing than desktop versions. This leads to the next point, can you test the app with a demo account? When testing, things to look for include advanced charting ability to switch between charts, types of orders such as stop orders, trailing stops, one-click trading, and the ability to expand and reduce the screen size. Lastly, does the app have seamless integration with the web and desktop versions?

To start using a mobile app, decide on your broker and visit the broker App Store if you have an iPhone or Google Playstore if you have an Android.

Our Verdict On Plus500

Not so with Plus500. As a ‘mobile-first’ brokerage, this British firm has poured significant time (and money) into developing a powerful, intuitive app that offers a pared-down interface without skimping on trading tools. We were most impressed that the Plus500 mobile app includes all the same charting and analysis tools as the web trader. We tested the advanced charting and drawing tools and found they provided a comprehensive on-the-go experience.

The images captured inside the app below demonstrate how easy it is to access critical features, like the economic calendar, and to open a position.

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*Your capital is at risk ‘72% of retail CFD accounts lose money

5. Best Copy Trading Platforms

eToro Has The Largest Social Trading Community

For those just starting out and casual retail traders, social and copy-trading strategies offer an opportunity to harness the wisdom of crowds and learn from seasoned experts. Social trading, as the name implies, involves mimicking the trading behaviour of a group of like-minded individuals. Copy trading, where smaller traders literally duplicate the positions of professionals and experts, goes even further. Both can help you test out or explore new trading strategies, however, not all platforms offer the necessary trading tools and integrations. If you don’t see MetaTrader Signals, Duplitrade, or ZuluTrade included in a broker’s offering, you may need to move on.

Our Verdict On eToro

Popular broker eToro, on the other hand, is all-in on social and copy trading. Indeed, eToro is famous for its ‘gamified’ approach to trading, with an interface that mimics a social media wall and direct access to advice from its most popular investors. eToro also offers ‘thematic investing’ via Smart Portfolios of assets centred around a specific industry or asset class. A look at some screenshots taken by Sean from inside his account gives you an idea of how closely the platform’s user experience mirrors that of a social media network.

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*Your capital is at risk ‘68% of retail CFD accounts lose money’

6. Best ECN Forex Broker

Blackbull Has The Fastest Tested Execution Speed

If your trading strategy relies on shaving profits from minute market movements, you can’t afford to worry about slippage. You need your order executed as soon as possible and at the quoted price. Likewise, if you manage risk through combinations of limit orders, time can literally translate to money. When the market moves against you, you need positions to close before you start losing capital.

I asked Ross to test execution speeds for market and limit orders to identify the top performers. Based on his testing, which included a mix of market making and no-dealing desk brokers and used EAs on the MetaTrader 4 platform, BlackBull Markets blows the competition out of the water. The Kiwi broker placed first in market order execution speeds at 72 ms, and 90 ms for limit orders.

High Leverage Forex Brokers

Leverage trading (also known as trading on margin) is a tool to increase your trading position exponentially with capital lent from the broker. Given Forex currency pairs only change in tiny amounts, leverage allows you to achieve larger profits when trades are profitable. Just remember that trading with leverage is as risky as it is advantageous since the spreads of trading instruments can move either way.

Top regulators, like the FCA, allow Forex brokers to offer leverage up to 1:30 for majors pair and 1:20 for minor pairs, BlackBull Markets allows a maximum leverage of 1:500 and we checked via the broker’s live chat that it applied for traders in the United Kingdom.

Our Verdict On Blackbull

BlackBull Markets is based in New Zealand and is regulated by the Financial Markets Authority, the financial regulator of New Zealand. We have already covered its two key selling points – execution speed and leverage. However, you should know that the broker uses a no-dealing desk model and ECN execution, so spreads will be tight. Other features liked include the availability of MetaTrader 4, MetaTrader 5, TradingView and their suite of social trading tools, including the BlackBull Copy app, Myfxbook and DupliTrade.

BlackBull Markets ReviewVisit BlackBull Markets

7. Largest Forex Brokers In The World

Based On Marketcap IG Is One Of The Biggest Broker For Forex

IG was founded in London, UK, under the name Investor Gold Index but now is more commonly known as IG. This Forex broker is actually one of the world’s oldest and largest, being founded in 1974 and currently boasting 313,000 active traders. With so many active traders, it is no surprise that the broker is in the top ten Forex brokers worldwide by trading volume with 8.6 billion Average Daily Volume Transaction Volume (ADVT).

Our Verdict On  IG

Remember what I was saying about the importance of a well-balanced portfolio? If you understand the importance of branching out into other asset classes but prefer to stick to forex or non-crypto CFDs, you’ll need a broker with access to a wide range of markets. Specifically, you’ll need to look for a minimum of 50 currency pairs, and some combination of indices, options, shares, exchange-traded funds (ETFs) and options. Oh, and a trading platform that supports multiple trading strategies. IG is not only one of the oldest and largest Forex brokers, but also has one of the largest ranges of Trading and spread betting products. They even claim to have invented spread betting and let you choose from 4 trading platforms.

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8. Best CFD Trading Platforms

Eightcap Offers Low Spreads And The Best CFD Range

One of the best risk management tools available to any trader, regardless of the broker: diversification. Even professional forex traders seldom limit themselves to a single tradeable asset, distributing their capital across multiple asset classes. “It’s common sense that you wouldn’t want to put all your eggs in one basket,” explains David Levy, one of our Forex Advisors and professional traders.

Our Verdict On Eightcap

Contracts for difference (CFDs) remain one of the most popular asset categories for day traders, along with crypto. Eightcap, which offers over 400 stocks, ten indices and four commodities, might not seem like the best choice, but for the whopping 86+ crypto CFDs available to trade. That’s more than any other Tier-1 regulated broker. These CFD crypto products are with MetaTrader 4, MetaTrader 5 and Capitalise.ai.

Ross reviewed the average spreads for coins across multiple brokers and found that Eightcap offered the tightest:

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9. Lowest Commission Forex Brokers

Fusion Markets Offers Low Spreads

If you opt to trade on a RAW account that uses an electronic communication network (ECN) or straight-through processing (STP) to execute trades, you’ll need to pay close attention to two things when calculating your direct trading costs: average spreads.

A fixed commission is exactly what it sounds like: a set amount of money you’ll pay the broker to execute your trade. We compared over 60 brokers and calculated both the mean and the average cost to trade one lot round-turn. A typical broker charges USD 7 in commissions – a 55% increase over Fusion Markets USD 4.50.

Fusion Markets also performed well in terms of spread costs. According to Ross’s testing, a round-turn trade costs around USD 3.12 in spread fees. That means your position needs to increase by just USD 7.62 for you to make money. For perspective, our last-place broker in this category will cost you USD 22.17 in upfront commissions and spreads before you see any profit.

Our Verdict On Fusion Markets

Australian-based Fusion Markets don’t have a marketing budget, all their savings go into delivering the best quality product possible. This means tight spreads, fast execution and easy account opening. To trade with Fusion Markets, you can choose between the MetaTrader 4 and 5 trading platforms, and both their standard and raw accounts offer top value.

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10. Best Forex Brokers for US and Canadian Residences

OANDA Is The Best Broker Regulated In North America

Trading forex and CFDs carries enough inherent risk without the stress of worrying whether your brokerage applies safeguards to keep your funds safe. A license from a Tier-1 regulator like the UK’s Financial Conduct Authority (FCA) or the USA’s Commodities Futures Trading Commission (CFTC) is more than a rubber stamp. It’s a guarantee that the broker follows specific procedures to keep your money safe, such as storing client funds in a segregated account. (We all remember FTX…)

This goes double for Americans and Canadians, who are subject to tighter restrictions than other nationalities. US citizens can’t trade CFDs, for example, no matter where they live in the world, but you can trade spots, futures and options.  We always recommend that Americans trade with an NFA or CFTC-licensed broker to avoid legal issues, and OANDA tops the list of North American brokers suitable for US citizens with an overall trust score of 83/100. We gave the New York-based brokerage top marks based on the number of licenses it holds; the length of time in operation – over thirty years; and a solid 3.7 rating on TrustPilot. Other brokers with relevant regulations include IG, Forex.com, TD Ameritrade and Trading.com

Our Verdict On OANDA

OANDA is one of the largest brokers in the US, with 70 Forex pairs for trading using spot prices. You can choose between a spread-only account or a commission-based account called a DMA account.  One appealing aspect when trading with OANDA US is the discounts available for high-volume trading.

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An Overview Of Choosing A Broker

With its vast liquidity and 24-hour trading, the forex market presents lucrative opportunities for traders worldwide. However, the key to unlocking these opportunities lies in selecting a trusted forex broker with a seamless trading experience, state-of-the-art trading platforms, and exceptional customer support. We have meticulously analysed the top 10 forex brokers for 2023, focusing on various aspects such as regulation and safety, trading platforms and tools, tradable assets, fees and costs, account types and features, market research and analysis tools, customer support and service, and forex trading strategies and techniques.

When choosing a forex broker, it’s essential to ensure they are regulated and hold the necessary licenses in your country of residence or a major financial centre. By doing so, you can rest assured that your investments are in safe hands, and you can focus on honing your trading skills and strategies.

Choosing the Right Forex Broker for You

Selecting the best UK forex broker is a crucial step towards achieving success in the forex market. Consider factors such as your trading goals and risk tolerance, among others. By doing so, you can make an informed decision and choose the best forex broker for your unique needs.

To further assist you in this process, tools like the Forex Broker Compare tool allow you to compare and analyse dozens of the most prominent forex brokers in the industry and their respective top tools and features.

Assessing Your Trading Goals

Before selecting a forex broker, it’s important to evaluate your trading goals and ensure that the broker you choose aligns with your objectives and trading style. Factors to consider when assessing your trading goals include your trading style, risk tolerance, investment objectives, regulation, spreads, costs, commission, variety of markets, execution speed, trading platform, leverage, margin, and customer support. By carefully evaluating these factors, you can select a forex broker that best suits your needs and preferences.

Considering Your Risk Tolerance

Risk tolerance plays a crucial role in forex trading, as it can help you determine the level of risk you are willing to accept when trading. To assess your risk tolerance, consider factors such as the amount of capital you are willing to risk, the amount of time you are willing to dedicate to trading, and the level of risk you are comfortable with. Once you have a clear understanding of your risk tolerance, you can apply it to your forex trading decisions and strategies.

When selecting a forex broker, it’s important to consider your risk tolerance and choose a broker that offers appropriate risk management tools and resources. For example, some brokers may provide features such as stop-loss and take-profit orders, responsible use of leverage, and portfolio diversification to help manage risk. By choosing a forex broker that aligns with your risk tolerance, you can ensure a more successful and enjoyable trading experience.

Forex Trading Strategies and Techniques

To succeed in the forex market, it’s crucial to adopt effective trading strategies and techniques. Forex brokers provide a range of these, such as day trading, scalping, swing trading, position trading, hedging, and price action trading. The most suitable strategy depends on your personal preferences and risk appetite.

In this section, we will explore two popular forex trading strategies – scalping and swing trading.

Scalping

Scalping is a high-frequency trading strategy that involves taking multiple small profits over a short period of time. It entails quickly entering and exiting trades, typically in a matter of minutes or even seconds. This trading strategy is popular among traders who prefer to capitalize on minor price fluctuations in the market, rather than holding positions for longer durations.

Several top forex brokers, such as Pepperstone, FXTM, and IC Markets, offer scalping strategies for their clients. These brokers provide an impressive blend of competitive spreads, swift execution, and remarkable rebates for professional traders.

When selecting a forex broker suitable for scalping, consider factors such as the broker’s credibility, customer service, trading platform, and fees.

Swing Trading

Swing trading is another popular trading strategy that seeks to capitalize on short-term price fluctuations in the market. This approach involves establishing and liquidating positions over a period of days or weeks, rather than minutes or seconds. Swing trading is particularly appealing in the forex market due to its high liquidity, competitive spreads, and 24-hour-a-day availability.

The most effective swing trading strategy for forex trading is trend trading, as it applies to both rising and falling market trends. Additionally, the use of simple moving averages (SMAs) is a popular strategy among forex traders.

To begin swing trading, open a live trading account, conduct a technical analysis to research markets, select an asset to swing trade, apply risk management conditions, and monitor the position before exiting the trade.