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Best Forex Brokers: Top 5 Most Authentic Fx Brokers Of 2021 - Blog - The Island Now

Best Forex Brokers: Top 5 Most Authentic Fx Brokers Of 2021

Are you someone who is always looking up foreign exchange rates on the internet and have a knack for predicting changes in foreign currency exchange rates?

If yes, then investing your money in the forex market might just be what you need. You can trade currencies using the best forex brokers on the internet.

However, we understand it is not easy to find a trustworthy site or app when there are hundreds of forex brokers to choose from.

After extensive research, we have shortlisted the top 5 best brokers where you can trade your foreign currencies right away!

How Did We Choose the Top 5 Forex Brokers? 

One of the largest and most liquid markets, in terms of exchanges, the forex market is a great investment opportunity. It also acts as an additional income source.

You can exchange any currency in the world on the forex market and earn a lot of profits from each deal. That is only if you have read and understood the nitty-gritty of the forex market.

However, it is not an easy task to choose from the multitude of forex trade options available on the internet. You need to pick the one which suits you the best for you.

Well, worry not! We have got you covered. We researched and reviewed several forex brokers in the market to help pick the best one for you!

We carefully reviewed and evaluated sites based on the following criteria:

  • Trading Platform

The first and foremost criteria you would want to consider is whether the trading platform is good or not. We have made sure that all the sites we have chosen offer premium trading platforms that are also mobile-friendly for convenience.

  • Regulation

The forex brokers we have shortlisted are properly regulated, renowned, and are well-reputed. Regulation is necessary to avoid forex scams where you could lose money when trading or people can dupe you.

In every country, there is a regulatory body that looks into this aspect. For instance, in the United States, the regulatory board is the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission, which looks into regulation and legalities surrounding the forex market.

  • Minimum Deposit

Forex trading is often a very risky business, and you may not want to invest large amounts of money at one go. We have made a list of the best forex brokers who offer cheaper trading options. So you can trade forex without putting in all your money at once.

  • Commissions and Fees

Every site mentioned in the article has affordable and reasonable charges for brokerage. We have carefully reviewed how much each site takes for similar trades for commission.

Ensure that you go for those brokers whose commissions you can afford.

  • Financial Instruments

We have made sure that the brokers we have chosen offer trading in a wide range of assets, including shares, bonds, cash, commodities like gold, oil, and agricultural products.

Make sure that the forex broker you chose to trade in has the option of trading the financial instrument you wish to trade.

  • Deposit and Withdrawals

We chose the best forex brokers that help you deposit and withdraw your assets from the broker easily, quickly, and most importantly, cheaply.

It will be helpful if you look at the deposit withdrawal system and methods to know how long transfers take and how they accept payments.

  • Safety and Security

Any exchange market, forex or not, will focus on keeping your money safe. That will always be theirs and your most important concern since you cannot risk losing your money to frauds or scams.

We have made sure that the brokers we have listed are trustworthy and will keep your money and personal information secure. These sites are regulated and hence ensure maximum protection.

Top 5 Fx Brokers Available on the Internet 

Now that you know how we made our list, here’s the list of the top 5 best forex brokers that we compiled for you:

  1. AvaTrade : Best Forex Broker Overall
  2. XTB Online Trading : Holistic Forex Broker
  3. FXTM Online Trading : Cheapest Forex Broker
  4. IG Online Trading : American Forex Broker
  5. Vantage FX Online Trading : Premium Forex Broker

Best Forex Brokers: A Comprehensive Review

We will now walk you through an in-depth analysis of all the forex brokers we have listed, their highlights, pros, and cons. After going through each of them, you can make your decision on which trader is the best for you.

#1. AvaTrade: Best Forex Broker Overall

AvaTrade is an Irish forex broker that has been in the market since 2006. They have wide-ranging trading tools which have helped traders in their daily exchanges.

With time, this broker has made it to the top forex brokers that most traders recommend. They focus mainly on copy trading using software like DupliTrade, MQL5, and ZuluTrade.

If you are not aware of what copy trading is, it lets you choose a professional trader and follow their lead. Then, for a monthly subscription, you can copy their trading deals.

Highlights 

  • Trading Platforms

AvaTrade has a large number of trading platforms to choose from, and most of them are automated. They also have their proprietary AvaOptions, WebTrader, and AvaTradeGO mobile app, which won an award, giving more credibility to their excellence in service.

  • Customer Service

AvaTrade ensures that the user experience across all their trading platforms solely focuses on their clients. They also have 24X7 customer service in 14 different languages.

  • Regulations

Traders trust AvaTrade because it follows seven regulations from across the world, making them the most secure forex broker. The Central Bank of Ireland is one of the many authorities regulating them.

  • Withdrawal and Deposit

They offer fast withdrawals, which have extra protection as their clients’ money is kept in different accounts.

  • Security

Regulated by seven regulations, AvaTrade has 256-bit SSL encryption on all its apps, stopping identity theft and credit card fraud. You can be stress-free regarding losing your money to frauds or hackers as AvaTrade ensures maximum money and identity protection.

  • Commission and Minimum Deposit

AvaTrade has $0 commissions, very low spreads, and their minimum deposit is only €100, so your money is safe.

Pros

  • Regulated by seven different regulations worldwide
  • Has more than 250 financial instruments to trade like FX, crypto, and CFDs
  • Has a plethora of trading platforms based on your level of experience
  • Multilingual customer service available 24X7
  • One-on-one training sessions with your personal account manager
  • Trustworthy, dedicated, and safe
  • Uses proper encryption for security
  • Uploads free downloadable eBooks
  • Has informational videos on YouTube
  • Publish blogs on The Sharp Trader for clients
  • No withdrawal fees and low CFD fees

Cons

  • Very high inactivity fees
  • Forex trading fees are average

⇒ Visit the Official Website of AvaTrade for the Best Discount

#2. XTB Online Trading: Holistic Forex Broker

XTB Online trading has been one of the largest and most popular forex brokers in the foreign exchange market across the world. Regulated by several well-known authorities like the Financial Conduct Authority, XTB is known for the level of safety it provides.

With access to more than 1,500 global markets like commodity exchange, crypto markets, and forex markets, XTB is a trader’s right-hand man.

Over the past 15 years, they have risen as the best forex broker in the industry. Their user-friendliness and premium execution speed make their platforms very attractive, especially for new entrants into the trading world.

Highlights 

  • Trading Platforms

They have a very simple, easy-to-use trading platform, which helps you manage your investments at a faster rate with ease. Their platform will help you save a lot of time and effort.

XTB has three main platforms, Web, Desktop App, and Mobile App. Their web platform, xStation, is easy for novice traders and has complex and trade-in lookup features for professional traders.

Their mobile app works both on Android and iOS, and the desktop app works both on Windows and Mac. With a single click, you can access over 1,500 markets worldwide through XTB online trading.

  • User Experience 

XTB has various features which make them very user-friendly, especially for novice traders. They have customizable trading charts you can use, economic calendars to mark important dates, and risk management features like stop-loss.

  • Financial Instruments

XTB allows you to exchange in an extensive range of assets other than forex, like indices, commodities, stock CFDs, ETF CFDs, Cryptocurrencies like Bitcoin, Litecoin, Ethereum, among others.

  • Regulations

Regulated by the Financial Conduct Authority and several other authorities globally, XTB is a highly regulated platform that ensures maximum protection of their client’s money and identity.

  • Security 

As we have mentioned before, XTB is regulated and is very safe and secure for forex trading. They use premium encryption to protect your assets and data.

Pros

  • XTB provides access to more than 1,500 global markets
  • Has more than 15 years of experience as a forex broker in the industry
  • Trustworthy and safe
  • Regulated by the Financial Conduct Authority
  • Easy to use trading platforms for novice traders
  • Have offices in 13 countries
  • Low spreads and low commissions
  • Trade-in wide range of assets
  • Popular amongst expert traders

Cons

  • High fee payment for stock CFDs
  • Their portfolio revolves mainly around CFDs and forex
  • They have limited fundamental data

⇒ Visit the Official Website of XTB for the Best Discount

#3. FXTM Online Trading: Cheapest Forex Broker

FXTM stands for ForexTime, and they entered the industry back in 2011 as a global CFD and Forex broker. FXTM is based out of Cyprus and is subsequently regulated by the Cyprus Securities and Exchange Commission or the CySEC.

They are also regulated by several other authorities across the world, like the Financial Conduct Authority. This high and strict regulation by premium companies has ensured that FXTM is safe and low risk for forex trading.

Highlights 

  • Trading Platforms

FXTM does not have its original trading platform. But they have MetaTrader platforms that you can customize according to your needs. These platforms have a wide range of features like order confirmation, clear fee reports, price alerts, etc.

  • Customer Service

They have a 24X7 customer service helpline which attends to your needs. Their platform is also easy to use with many simple features. They also conduct several seminars to help you understand forex trading and its guidelines.

  • Commissions and Spreads

Depending upon the type of account you have on FXTM, your fee payment will vary. Their spreads are slightly higher but with zero commissions in standard accounts. But if you go for an ECN account, they have lower spreads.

FXTM will charge a fee for the opening of a position. However, this can be lowered if you have a higher account balance or trade-in larger amounts.

  • Fees

FXTM has very reasonable fees in the industry and induces most of its fees into the spread costs. Also, they do not charge any deposit fees, and their inactivity fee is also affordable. For instance, they charge $5 per month after six months of no trading.

  • Financial Assets 

They have certain currency pairs of four basic currencies, EUR, GBP, USD, and NGN. They also offer CFD, cryptocurrency trading, and stock exchange trading.

  • Security

Regulated by the Cyprus Securities and Exchange Commission, the FCA, and other regulators, FXTM is a very safe and secure forex trading platform. You can be carefree about the security of your money and the secrecy of your identity.

Pros

  • Regulated by several top-tier regulation companies
  • Licensed broker
  • Works across several jurisdictions
  • Award-winning Forex broker
  • Has more than 2 million clients on a global scale
  • Trades in several financial instruments like forex, commodities, CFD, stocks, and crypto
  • Secure, safe, and instant execution
  • No hidden commissions

Cons

  • Limited Product Portfolio
  • High CFD fees
  • Does not provide services to countries including USA, Canada, and Brazil
  • Has inactivity and withdrawal fees

⇒ Visit the Official Website of FXTM for the Best Discount

#4. IG Online Trading: American Forex Broker

The best forex broker for Americans, IG has a wide range of forex pairs and provides very easy accessibility to trades in the United States.

They have become one of the most popular forex brokers in the US, and IG has become, without doubt, the first choice for novice traders.

Their user-friendliness and customer service are some of their key benefits, which have helped them reach out to several thousand clients across the globe. Let’s take a look at their key points.

Highlights 

  • Trading Platform 

IG US has a very user-friendly trading platform that works both for novice traders and advances forex traders. It is easy to navigate and has many features to help traders keep track of deals.

Clients can check on available pairs, place their bids, and explore forex trading within a single trading platform.

They also have a browser trading platform for desktops and mobile trading apps for convenience. You can use either to check spreads and place bids whenever you feel like it.

  • Customer Service

IG US has a very user-friendly platform, and they also have a mobile app for any trades and transactions. It makes their platform very convenient and easy to use. They have a 24X7 helpline and minimal spread fees.

They also provide information for those just starting out with forex trading on their IG Academy platform. They help novice traders understand and implement trade strategies.

Experts and pros in forex trade can also learn more and widen their knowledge base on complex tricks and tactics.

  • Currency Pairs

Global users are allowed to go for CFD trades. However, only US clients are allowed to access the forex market. IG boasts a long catalog of offerings, and they provide their clients with over 80 currency pairs.

Their categories of currency pairs include minor pairs, exotic pairs, major pairs, regional pairs, emerging-market pairs, etc.

  • Spreads

The minimum spread on IG’s trading platform for major currency pairs starts at just 0.8 pips, and the typical spread ranges from 0.9 pips to 5.4 pips.

  • Commission and Fees 

IG US charges zero initial commission on trades. Their spread costs and low fees make it easier for traders to start trading on IG US.

Other than traders residing in Ohio, US clients have a wide range of forex pairs they can leverage without an up-front commission. They can also try free demos.

The trade commission depends on the cross between the asking price and the bid. There is no competition when it comes to IG US’s fees, easy access, and low account minimum.

  • Security and Safety

You can stay assured that your money is safe, and so is your personal identity. All the data you enter into IG US is encrypted and is safe from fraud activities and hackers.

They are regulated by the NFA, which ensures that the IG platform provides maximum security to the clients.

Pros

  • IG US is available for US traders
  • They have an enhanced MT4 access
  • They offer free demo accounts for trial
  • They have a smartly designed mobile app, compatible with all devices
  • IG has no hidden commissions
  • Very strong trading platform for forex
  • Regulated by the NFA
  • Spreads from 0.8 pips on EUR/USD and USD/JPY

Cons

  • High CFD fees
  • They charge Inactivity fees

⇒ Visit the Official Website of IG for the Best Discount

#5. Vantage FX Online Trading: Premium Forex Broker

Founded in 2009 as MXT Global, Vantage FX was rebranded to its current name in 2015. An Australian forex broker, Vantage FX, is one of the premium sites which lets you get maximum benefits from your initial deposit.

Let’s look into the key features of Vantage FX, shall we?

Highlights 

  • Trading Platform

Vantage FX has a strong MetaTrader trading platform, a mobile app for easy use, and several other trading platforms. They offer a large number of features and tools from third-party providers like Trading Central, which sets them apart from other brokers.

  • Customer Service

Besides providing add-ons from third-party providers, Vantage FX also has MetaTrader tutorials and a Pro Trader Library with hundreds of videos to help novice traders get acquainted with the trade.

  • Financial Instruments

Vantage FX provides its clients with more than 300 tradable financial instruments other than CFD and forex. They also have a good deposit bonus.

  • Regulations

Vantage FX has an Australian Financial Services License (AFSL) with the Australian Securities and Investment Commission (ASIC). It is also regulated by the FCA and other regulators, which help lower their risk.

It ensures that your money and identity are safe and secure with Vantage FX.

  • Commission and Fees

Vantage offers a 50 percent deposit bonus that you can claim by submitting an opt-in form and making a deposit between $200 and $500 within ten working days after account creation.

You can then convert this bonus into real money when you start trading. You pay zero deposit fees. This offer is available only for MT5, MT4 ECN, and MT4 STP accounts.

The cost of trading depends on the type of account you choose. However, if you are on a budget, the commission-based Raw ECN is the best choice.

  • Security

Vantage FX is regulated by well-known regulators who ensure that your data and money are in safe hands and away from fraudulent activities.

Pros 

  • It offers a 50% welcome bonus for traders creating a new account
  • Has access to more than 300 trading instruments on platforms like MetaTrader 4 and MetaTrader 5
  • They have free forex trading signals
  • You can get leverage up to 500:1
  • Vantage FX has mobile apps which are compatible with androids and iPhones
  • Trustworthy, safe, and secure
  • Regulated by the FCA and ASIC

Cons

  • Vantage FX is not publicly traded
  • They do not operate a bank

⇒ Visit the Official Website of Vantage FX for the Best Discount

Things to Keep in Mind When Choosing a Forex Broker

When there are so many forex brokers available on the internet, we know that it is not easy to choose one that is the best for your trading activities.

However, you cannot possibly have accounts on every forex broker out there, for they all will charge commissions and fees, and we all look for more profits and fewer costs, right?

So, how can you choose the forex broker which is the best for you? Well, we have put together a list of things you should research about the trader before signing up with them. If they check all or most boxes, you can go ahead and set up your trading account!

  • Regulation

By now, you must have realized that every forex trader has to be regulated; this ensures that your money and identity are kept safe and secure. There are many hackers and frauds out there who will try to dupe you or steal your money.

Well-known, reputed, and properly regulated traders will make sure that there are no forex scams. The regulators keep a check on your trader and will stop any unwanted scams from happening.

If you face some fraudulent activity, you can turn for legal help and deal with the problem. The regulatory board looks into such matters to ensure all clients are safe and takes action against those creating trouble.

For example, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) regulate most traders in the United States.

It would help if you were careful of offshore licensed forex brokers in Vanuatu, Belize, and several other island countries. The regulation systems in these places are poor and only just a name. They offer no protection or security to their clients.

To check whether a forex broker is regulated or not, you can look up the register number that they provide in the disclosure in the forex trader’s homepage footer. Then, confirm this number on the regulator’s website to double-check.

  • Commissions, Fees, and Spreads

You need to note that you need to pay for the broker services via commissions and spreads when you are trading CFD and forex assets. Every forex trader has different rates. Some of them may charge you way less than what another trader does for the same trade.

Thus, it is important to find and compare the fees of different online brokers to find one that fits your budget, thus helping you make a choice more easily.

Spreads are nothing but the all-in cost to complete every trade, and they can be fixed or variable. Variable spreads change depending on the available liquidity, the type of traded asset, and volatility.

On top of the spread, you may also be charged a commission depending on the number of trades you exchange. Always try to look out for hidden withdrawal fees, inactivity fees, overnight financing fees, et cetera to avoid sites that charge you too much.

  • Trading Platform

The first thing you need to decide when choosing a forex platform is what is more convenient for you, a mobile app trading platform, a desktop trading platform app, or a webpage platform that you can access from any device with Wi-Fi access.

After deciding which device is compatible with your trading activities and how you will complete your trades, you need to focus on the personal settings of trading platforms. Most platforms offer similar features and services. However, each will look and feel different.

You need to find trading platforms that suit your needs the most and are easy for you to use and navigate. Most platforms are configurable, so you can alter features and add-ons to suit your trading needs.

The forex platform will be the main area to keep track of all your trading activities. You must ensure that you choose one that is easy to use and has all the trading tools you will need like live news feed, futures pricing, automation, order types, advanced charting options, stocks, CFD news, and live forex rates.

  • Minimum Deposit

If you are someone who is just starting out with forex trading, you may not want to take a lot of risks. You would not want to deposit a large amount of money all at once. In fact, most new and novice forex traders cannot afford to take so much risk.

Thus, it will be helpful if you research and look for traders who allow minimum deposits to be smaller, like from $10 to $1,000. Traders who offer you options for trading on the cheaper end will help you undertake forex trading without risking large chunks of your money at once.

  • Deposit and Withdrawals

Another thing to ensure when you get into forex trading is quick, cheap, and easy deposits and withdrawals. Forex trading involves a lot of fund shifts to and from the trader. You need a trader who will do this cheaply but conveniently.

Compare and contrast the deposit and withdrawal methods of different forex traders so that you can choose the one who works the best for you. Check if they allow crypto payments or credit card payments, or other forms of payment you need.

Also, it will be helpful if you check how long each transaction takes. Check if they have any hidden withdrawal fees, which can be a little expensive for you over time.

  • Demo Accounts

Choosing forex brokers for yourself is not easy. It is always helpful if you can get a free trial with a trader to check if their features help your trading experience.

Worry not; most reputed traders will allow you to create a demo account that you can use to try their platform without any risks before signing up an account with them.

By leveraging this demo account, you can check one-on-one if the trading platform is suitable for your needs and fits your requirements well or not.

Signing up for demo accounts will help you get familiarized with the trading platform, and you can avoid unnecessary errors, try strategies and make trading more convenient. So be sure you check out demo accounts wherever possible.

  • Safety and Security

When you are trading forex, you put a lot of money at risk. You also put your personal and financial data at risk of being hacked by frauds and hackers. The top priority while choosing a forex broker is to keep your identity and your money safe.

When forex traders are licensed and regulated by top-tier regulators like, for instance, the FCA, you can be more assured that your data and money are safe. Research about the site’s user data security policies and legal measures they take in case of fraudulent activities.

Regulation will keep your money safe. Always look for sites that are registered and regulated by a respected and legitimate regulatory authority. Also, look for additional protective measures like encryption, two-factor authentication, et cetera to ensure safety.

  • Financial Instruments

Financial instruments are basically assets that you can trade or exchange. There are several types of assets that you can trade in, including stocks, shares, bonds, cash, physical commodities like gold, agricultural products, and oil. Forex is only one of such financial instruments that you can trade.

When you are looking for an online trader, look for ones that let you trade not just in forex but also other assets that you might want to trade. That will help you diversify your trading portfolio and reduce risks from trading assets.

FAQs About Forex Brokers

Q1. Can novice traders trade in forex?

Yes, you can trade in forex even if you are new to trading. We suggest that you should read up and research well about forex before venturing into the market.

You can also try setting up a demo account and trying tricks and strategies before putting more money into the game as there is a high risk of losing.

There are several informational videos and blogs on forex trading provided by forex traders online. You can read up and watch them gain as much insight as you can into forex trading before you start investing and become an expert.

However, it is usually advisable that beginners not invest in CFDs until they know how they actually work.

Q2. What is forex trading?

Forex trading stands for foreign exchange trading, and it basically involves exchanging one global currency for another in order to reap profits. Just like stock prices keep fluctuating, the exchange rate for different pairs of currencies keeps fluctuating based on demand and supply.

The currency exchange rate also depends on the expectations of the effects of various future events on the forex market. If you are a forex trader, then you can profit from currency transactions in two ways.

The first way is to buy a currency and sell it when its value goes up compared to the currency you sold. Or the other way is to sell a currency that later declines in value compared to the currency you bought. Both ensure that you reap profits from the trade.

Even if you are working a job from 9 to 5, it does not matter, as, unlike other exchange markets, forex markets are open throughout the day, at any odd hour, for five days a week.

Q3. What is forex regulation?

There are supervisory bodies worldwide that set the standards and rules with which all forex traders in the world must comply if they fall under the regulator’s jurisdiction.

Every trader must look into the following details when they are regulated.

  • They should be registered and licensed with the relevant regulatory bodies
  • They should notify the body and the clients about any changes in services to their clients
  • They should undergo a regular auditing process
  • Ensure that all parties are fairly treated on the platform

Q4. What are a few top-tier forex regulators?

One of the world’s top-tier regulators includes the Financial Conduct Authority, which regulates forex brokers. It is based in the United Kingdom, which is one of the biggest forex markets in the world.

Other regulators, you can look for in forex traders to ensure the safety and security of your money and to ensure confidence in the trader are given below.

  • Australian Securities and Investments Commission
  • Cyprus Securities and Exchange Commission
  • European Securities and Markets Authority
  • Investment Industry Regulatory Organization of Canada
  • Japanese Financial Services Authority

Q5. Can US traders trade in foreign exchange? 

Yes, traders from the United States can trade in foreign exchange if you are using an online broker that operates within the US. You should look for traders who are regulated by the CFTC or the SEC.

You can also look up global brokers who you can access in America. IG US is one of the best options for forex trading for American traders.

Q6. What are the different types of risks associated with forex trading?

The different types of risks associated with Forex Trading include:

  • Country Risk
  • Credit Risk
  • Exchange Rate Risk
  • Interest Rate Risk
  • Liquidity Risk
  • Marginal or Leverage Risk
  • Risk of Ruin
  • Transactional Risk

Q7. What are CFDs in forex platforms? 

A CFD is short for Contract for Difference. It is an agreement between a CFD broker and an investor or trader, stating that “they must exchange the difference in the value of an asset between the time the contract opens and closes.”

In a CFD, the buyer never owns the asset but receives money based on the asset’s price change. CFDs are very complex to understand and have a high-risk factor. Novice traders should steer clear from CFDs.

CFD traders face high risk but enjoy many benefits like lower prices for assets when compared with the purchasing costs. However, the risk factor involved is pretty high, therefore beginners shouldn’t dive deep without research.

Make sure you choose a broker who supports both forex and CFD trading in case you want to invest in both. Always read up and do your homework before investing anywhere!

In Conclusion: Are Forex Traders Reliable?

When you are just starting with forex trading, it can be a scary venture. There is a lot of money at risk and loads to learn and explore. However, you can enhance your trading experience with the right forex trader.

We walked you through a detailed review of the top 5 forex traders in this article, which we curated after careful research and evaluation. Choose the trader which works best for you after looking into their platforms, features, regulations, security, and commissions. Our Recommendation would be AvaTrade owing to their superior user interface and options.

The best trader will be the one that is adequately regulated and has low commissions and spreads. Trading in forex is a risky business; research is of prime importance. Find traders who help you gain more insight into forex so that you can make the best trades out there!