Best Forex Brokers in 2021

By definition, Forex is the global currency marketplace where we have all participated in whenever we travelled or exchanged money. These transactions mainly happen over the counter (OTC), where the company we use operates as the broker. 

However in the non-physical market, traders speculate on how a currency may increase or decrease in value in comparison to another currency, without owning or exchanging. This is known as derivative trading which is accessible via CFDs (Contracts for Difference). 

A Forex broker operates as a medium between a trader and liquidity providers offering access to the Foreign exchange market via CFDs, some Forex brokers also provide access to non-Forex markets.

We are consistently on the lookout for top-performing brokers and bringing them to you. We don’t just review a broker once, but we will go back to check that their client base is happy with the service they are supposed to be getting. We understand that every trader is different, which is why despite this list being our preferred brokers right now, it might not suit you and your needs.

You might want to focus on the brokers that offer the highest leverage or only those that offer CFD derivatives, therefore we have also compiled lists of different types of brokers. Here is a breakdown of the categories that you can start your broker search from:

• Broker Type
• Trading Conditions
• Regulation
• Platforms
• Account Types
• Countries
• Payment Method
• Other Brokers
• Broker Bonus

100ForexBrokers Broker Review Criteria

To understand our thorough process when it comes to analysing brokers and their performance, you need to know that whilst brokers all offer similar products, their delivery can vary a huge amount.

We have devised set criteria that we look for when comparing brokers, below are the major things that we look to when reviewing a broker.

Minimum Deposit

This is hugely important, especially for beginners because we don’t want a new trader to have to invest a lot of money the first time they deposit. When you start trading you need time to build your confidence, which is why only starting with a small amount is always advised for first time traders.

Fees – Spreads & Commissions

Brokers are clever in the way they charge their clients, by charging on the spread, they earn money every time a trader takes a trade. For those traders that like to scalp, the brokers will earn considerably more than those who hold trades for weeks on end.

Therefore it is imperative that you are aware of the spreads the broker charges and especially how much they are likely to change. Spreads often widen dependent on the volatility of the market, so we make sure we understand how brokers charge and how wide their spreads go rather than just how small they are, which is usually how they’re advertised.

Regulation

Regulation has been put in place to protect users. Therefore any brokers that do not have the relevant regulatory certification have not passed the procedures put in place to protect a user and this is the reason why we would always recommend staying away from non-regulated brokers.

We have compiled a list of brokers that are regulated by the most sought after regulatory bodies, see here.

Although having competitive pricing is a key feature of any broker, traders are also as interested in how well a broker is regulated before deciding to open an account with them. 

A regulated broker has been authorized by the financial services regulator in the region(s) they operate in to provide their services to local/international clients. Depending on the regulator, traders will have some benefits, like safety of funds etc.

Customer Service

Like any business, customer service is hugely important for the retention of clients. If there are any problems then you will be forwarded to the customer service department who are in place to try to sort out any issues you have. In an ideal world, you would not need to contact a brokers customer service but realistically there are sometimes things that crop up. Even if there isn’t an issue, they can still be on hand to help guide you through the platform.

Therefore it is important for a broker to have a good team of customer service personnel. For every broker we review, we call up their team and see how long it is to get certain issues resolved, this is what we base our main judgement on when it comes to customer service.

Other Traders Feedback – Consumer Experience

Whilst we do a thorough review of each broker, there will always be things that are missed which is why customer feedback is imperative for our reviews. We look to see other users experience with the brokers and platforms to help form a judgement of the broker and in turn a ranking.

There are forums located across the web that discuss broker performances and we’re active in these groups to get an idea about how users are finding certain brokers and their platforms.

Platform & Software Ease

Most users that are looking for a broker are either new to trading or are not happy with their current provider. But primarily it is new traders, which is why an easy to use platform is important. No user wants an overcomplicated platform that could create errors when trading. Not understanding a platform can cause significant mishaps, taking larger than expected trades, not placing stop losses plus much more. This essentially can cost you money, therefore a platform that you can get to grips with quickly is important.

For the reasons above, we also do recommend choosing a broker with a demo account, this way you can practice with the platform before going live. Getting used to it in the demo will reduce any human errors that are related to the platform.

Trading App

A trading app isn’t a necessity however it does make life easier. Trading apps are basically another execution platform, similar to a brokers webtrader however they tend to have less functionality, you can normally do a lot more on a desktop webtrader. For this reason, we would advise against doing your analysis and decision making on a trading app, rather just use it to execute at predetermined levels or manage positions (moving stop losses, take profit levels or closing out positions).

As mentioned it’s not essential to have one but it does show that a broker wants the best for its users and that it is willing to invest in user-friendly functionality. We find that those brokers that do have an app tend to outperform those that don’t but that isn’t always the case.

Trading Education

Education in trading is very important, simply put you cannot be a successful trader if you’re not educated about the financial markets, risk management and analysis techniques. Therefore brokers that offer education material should have users interests first.

It is another key feature a Forex broker will need to provide clients with, in order to be truly considered one of the best. The level of education will vary, from teaching new traders how to use their trading platforms, to more advanced lessons like understanding the technical and fundamental aspects of financial markets.

We look at brokers educational content and assess the quality of it because we want to make sure that traders are being taught the correct procedures!

Broker Age

Judging a broker by its age is slightly bias but there is a rationale behind it. Brokers that are found to be scams have normally not been around for a long time, they tend to be set up with the sole purpose of making some quick cash and then getting out. This is why we look to those more established brands and brokers that have been going for 5+ years, they will have developed a following and you can also get good feedback from regular users.

Saying this can be unfair on new brokers that are legitimate but that does not mean that we discount any broker if they’re only been trading for a short period, we will still go through the same process and should they reach our standards, we’re more than happy to recommend to our readership.

Withdrawal Process

A Brokers withdrawal process is very important. This is where you will begin to get a feeling whether a broker is looking to scam you. Those that make it very difficult to withdraw your money will give you numerous reasons why you shouldn’t; ‘you can make more with more in your account’, ‘we can manage your money for you’. All these types of reasons should have alarm bells ringing.

A good broker will have a quick process to withdraw your funds, at the end of the day, the whole reason you deposit into a trading account is to withdraw your profits from the account. Therefore this should be easy and seamless from the broker. Traditionally for security reasons, brokers will only allow you to withdraw to the account or card that you deposited with, this is common and a good security measure.

Opening an Account Processes

There is a balance between opening an account quickly for convenience versus opening one slowly as you’re going through several security procedures. Obviously, you want your money to be secure and the broker needs to know that the person depositing is the person they claim to be but an easy process to opening an account is ideal because it can put people off, having to find a load of documents to prove you are who you say you are.

Risk Management Tools

This should be a staple for any broker, the ability to place stop loss and take profit orders. If a broker does not offer this then you should definitely not use that broker, even if everything else they offer is good, the fact that you can’t place stop-loss orders and in turn, manage your risk means that you are more likely to blow your account. Stop losses are key!

Trade Execution

Trade execution refers to the ability to enter the market at the price or market level that you intended. Sometimes brokers have delayed execution, which means that if you hit the ‘buy’ button, the market moves up and then the broker enters you into the market, you will have missed out on the initial move. Quick execution is more relevant for those who are very active in the markets and are looking for short quick moves.

Execution can also be affected by the speed a market moves, sometimes the broker simply cannot get you in at the price you wanted, this is referred to as slippage and does occur with all brokers. The amount of slippage is difficult to pin down, which is why for execution we will take trades ourselves to check but also read other users experience when it comes to trading in volatile market conditions.

Number of Instruments on Offer

The number of instruments on offer is important because you want to have the choice of which market you want to trade. When it comes to trading Forex, your broker will offer the major currencies (EURUSD, GBPUSD, USDCAD, USDJPY, AUDUSD, USDCHF, NZDUSD), but they should also offer the crosses of these as well as a number of minor currency pairs, these might include the USDZAR and USDCNY.

Most brokers don’t offer just Forex but also several other asset classes, commodities, stocks, cryptocurrencies plus many more. This is very useful for those who want to diversify their trade portfolio and trade other markets as well as FX.

How Does A Broker Work?

To understand how a broker works, you need to firstly understand the landscape in which they operate. There are many types of brokers, from stocks , commodities and even options. However it is the Forex brokerage industry which is the most competitive. This is mainly because of the fact that the Foreign Exchange market is the largest financial market known to man, with over $5 trillion in daily transactions. 

Most Forex brokers operate in a similar fashion, they provide their clients access to a trading platform which lists all the available currency pairs, such as GBPUSD which can be traded. Once the client places a trade, the broker receives a commission for routing the trade, which is also known as the spread. 

The broker typically executes the trade based on the market price and routes it  into a pool of liquidity providers, if it operates as a STP(straight through processor). However if the broker operates as a MM (market maker) it holds the position in-house and provides the user the liquidity for the trade.

Most brokers are regulated by the financial services authority in their operational jurisdictions. Depending on this regulation, will mean which type of services the broker is able to provide to its clients.

Other Key Features To Look For In A Broker

The best Forex brokers in 2021 are easily identified based on the amount of features they provide to their users. As the Forex industry is highly competitive, to be considered as one of the best, brokers need to offer a range of services and features that enable them to attract a wide range of clients. Below are some of the main features offered by Forex brokers.

Low Spreads

With any industry the main competitive advantage usually derives from how well-priced you are in comparison to your competitors. In Forex trading, the main cost/commission is called the spread. The spread is the difference between the bid and ask price. 

On any trading platform, there are two prices for each financial instrument – the bid and ask price. When buying or going long, traders use the ask price. When selling or going short, they use the bid price.

Let’s pick the EURUSD, the most popular currency pair among retail traders. The difference between the bid and ask is 0.5 pips or half a pip, as the image shows. Depending on the volume traded, it has a different value for each trade. 

For instance, when trading 0.1 lots on the EURUSD pair, a one pip profit roughly translates into $1. Hence, half a pip spread cost represents $0.5 on a 0.1 lot trade.

Each broker offers different spreads based on the amount of liquidity providers they tap into.

Payment methods

A benefit of good regulation is that the broker will be able to offer its clients numerous modes of funding their account. Be it bank wire transfers, credit cards or even Bitcoin deposits.

Trading platforms

All brokers typically try to offer traders a choice of different trading platforms, this is one of the main features of any broker. The main trading platform is typically software created by Metaquotes, who are the providers of MT4 and MT5. cTrader is another popular platform, with some brokers also having their own proprietary software, which is unique to them and a huge competitive advantage. The likes of eToro have this solution.

Markets offered

Although most brokers may offer similar trading platforms, the main difference comes from the markets they offer. For Forex brokers, this will be the range of currency pairs which are listed on their trading platform. Most Forex brokers will likely offer the major pairs, like GBPUSD and USDJPY, however not all will offer minor or exotic pairs. They will include currencies like Mexican Peso, Russian Ruble, Turkish Lira etc.

Customer support

Regardless of the industry, one of the main features in deciding how reputable an organisation is, will be on how well their customer support is. For Forex brokers, customer support is key, as many traders are new, and want to feel that the broker is fully engaged with them, and supporting them in their trading journey. From opening an account, to understanding additional costs, to occurrences in the markets, and having a multi-lingual team. 

Okay, so you’ve decided that you want to be a Forex trader, the next step is choosing a broker you will be able to use during your journey. However, how does one go about choosing a broker, and what are the things to consider when making this decision?

Firstly, one of the most important areas to consider when making this decision is regulation Is the broker regulated, and if so, by who? This will allow you to know how safe your funds will be once you have made a deposit and are ready to make a withdrawal.

Next is the offering, this is mainly the trading platform, markets you can trade and the commissions you will be charged. Typically, traders look at brokers who offer a diversified range of products, so it will be wise to research the broker and see what they have to offer. 

Finally is the support they provide you, irrespective of your account size, you should feel that you are able to contact the broker at all times, and that your queries are answered.

It can be difficult to go through all of this alone and find the right broker, that is why we have made the process simpler. Using our comparison tables, we help you compare all the key areas to consider.
Is it safe using a Broker To Make Money Online Trading?

Trading with a Forex broker can be safe, however you can increase the levels of safety by ensuring you fully research the specific company before joining. 

The main thing to look for is regulation, for example a broker regulated by the FCA will be required to follow the governance of the UK financial services sector, which is one of the most reputable in the globe.

Look at broker reviews, but also test the company's platform using a demo account, and once comfortable with the software and company, then make your decision. However this can sometimes be a long process, es. If you are looking to begin trading straight away.

Is It Safe Using A Broker To Make Money Online Trading?

Trading with a Forex broker can be safe, however you can increase the levels of safety by ensuring you fully research the specific company before joining. 

The main thing to look for is regulation, for example a broker regulated by the FCA will be required to follow the governance of the UK financial services sector, which is one of the most reputable in the globe.

Look at broker reviews, but also test the company's platform using a demo account, and once comfortable with the software and company, then make your decision. However this can sometimes be a long process, es. If you are looking to begin trading straight away.

Overall, we have come to the conclusion that the best Forex brokers in 2021 are ultimately well rounded and offer traders a diverse range of services. These range from education, to trade execution, and work with traders to help personalise the trading process.

To be considered one of the best Forex brokers in 2021, you will need to show your clients that you have a complete offering of markets, a variety of trading platforms, client support in multiple languages, as well as a low spreads.

We hope our breakdown can assist you in finding the right broker for you. Here you can find a list of the brokers who we believe meet some of the criteria we have outlined above.