To help you to find the best online forex brokers in 2021, we went ahead and did the research for you. First, we selected some quality online brokers, then checked and compared basically every aspect of their offering: fees, available markets and products, trading platforms, deposit and withdrawal options, and more. To be selected as the best online forex broker, service providers had to prove their excellence in multiple areas. We dug deep, so you won’t have to. Here are the forex brokers who made it to the top. We highly recommend all 5 to you.
The top 5 picks for the best forex brokers in 2021
- Etoro is the best forex broker for 2021. Best overall, commission-free stocks as a bonus, most trusted broker, and the best copy trading platform.
- XM takes second place. Low trading fees. Superb desktop trading platform. Great customer support.
- IQ Option rounds out the top three. Low trading fees.User-friendly mobile trading platform. Great research tools.
- Olymp Trade at number four. The excellent trading platform across mobile and desktop.
- Plus500 just made it to the list at number five. Outstanding research. Great customer service. The best web platform, and most currency pairs.
2021 Overall Forex Broker Ranking
Here are the Overall rankings for the online forex brokers who participated in our 2021 Forex Broker Review, sorted by Overall ranking.
- No deposit fee
- Great customer service
- Low Forex and equity index CFD fees
100%Bonus Welcome Deposit Bonus
- Low minimum deposit amount
- User friendly mobile app
- Variety of payment methods available
- 15 cryptocurrencies that can be traded 24/7
- Easy-to-use website and mobile app
- Great community for cryptocurrency traders
$30 Trading Bonus
- No commissions
- Lightning-fast execution
- Beginners education and live analysis
- Easy-to-use platform
- Great account opening
- Quick and helpful customer support
Up to 100%
- Low Minimum Initial Deposit Requirement
- Cutting edge Trading Platform
- Quick withdrawals
100% Bonus Welcome Deposit Bonus
- Diversified trading products
- High profit margin
- Support staff are available 24/7
- Variety of account types including Classic, Mini, ECN, and Islamic
- More than 120+ Instruments
- Tight spreads
- Well Regulated
- Low Spreads
- Great Support and Educational materials for new traders
Up to 30%
- Low forex trading fees
- Fast and easy account opening
- Free deposit and withdrawal
Up to 100%
- Bitcoin deposit and withdrawal
- $10 minimum deposit
- Wide range of cryptocurrencies
Up to 100%
- No Minimum Deposit
- 100% Welcome Bonus
- Low Spreads
Now that you know the top forex brokers, you are probably curious how we came up with this list. Let’s go through a few points quickly. What is an online broker? Why do we think these brokers are safe? What are the most important factors when selecting the best online brokers?
What is an online forex broker?
Thirty years ago, if you wanted to trade forex, you had to pick up the phone and call your broker, who executed the transaction in return for a commission. Brokers back then were very much like the characters in the movie Wolf of Wall Street. They were constantly monitoring stock prices and asset movements while holding the phone and shouting. The Internet changed all that. Nowadays, if you want to trade currencies in real-time, you open an online account, deposit money, and create an order on the brokers’ online platform.
These platforms are online forex brokers. Forex brokers help you buy and sell currencies, as well as securities like stocks and ETFs in the form of a CFD. After setting up your order, the forex broker executes it immediately. The entire process happens online.
How did ReviewBrokers pick the best forex brokers?
At ReviewBrokers, we test online forex brokers based on more than 300 criteria, with real accounts and real money. We don’t want to overwhelm you, so we will list only the five top criteria.
5 most important criteria for the best online forex brokers in 2021:
- Fees – The trading fees of a typical US equity trade can be 50 times higher at one online broker compared to another. It’s definitely worth checking these fees.
- Account opening – Some online brokers require a minimum deposit to start investing while others don’t ask for a fixed first-time deposit. Check these requirements at the best online brokers.
- Deposit and withdrawal – At some online brokers, funding and withdrawing funds can take 5 times longer and be much more expensive than at others.
- Trading platform – A user-friendly and well-equipped trading platform can significantly increase your trading comfort.
- Markets and products – Want to invest in Amazon or trade Bitcoin? They might not be available. Check the product lineup before opening an account.
First, make sure your broker is properly regulated. The safety of your deposit is always the top priority. Next, compare the trading platforms, tools, and investment research provided by each broker. Finally, read forex broker reviews to compare pricing and product offerings (e.g., number of forex pairs and CFDs available to trade).
How do I know if my forex broker is regulated?
It is crucial to use a well-known, properly regulated broker to avoid forex scams. To check if your forex broker is regulated, first identify the registration number from the disclosure text at the bottom of the broker’s homepage. Next, look up the firm on the regulator’s website to validate the register number. If the broker is not regulated in your country, do more research. To help traders, we track, rate, and rank forex brokers across over 20 international regulators.
What’s the difference between a dealing-desk and an agency broker?
If a forex broker is operating as a dealer, also known as a dealing desk, they will be on the other side of their client’s trades. If a forex broker is not on the other side of their client’s trades, they will be acting as an agent (agency broker) by routing the trade to another dealer. There are also hybrid desks, which may operate as a dealing desk and agency. Lastly, matched-principals are dealers who immediately hedge their trades to remove any potential conflict of interest.
How do I calculate forex trading costs?
For forex and CFDs trading, the all-in cost to complete (open or close) each trade consists of the spread, plus any round-turn commissions. There may also be overnight financing charges, known as carrying costs, which can be either a net debit (loss) or a net credit (refund). To keep trading costs low, focus on trading the major forex pairs such as the EUR/USD, which offer the most liquidity, and thus the tightest spreads.
Risk and Reward in Forex Trading
Rewards are generated in forex trading when you take a long or short position in a currency pair that subsequently appreciates in value. The risk in doing a forex transaction is when the market doesn’t perform as expected once you have done a forex trade.
Many brokers allow traders to magnify the gains or losses they take on a position via the use of leverage. Leverage is typically expressed as the ratio of the size of a position you can control by placing one unit of base currency on deposit as margin. Hence, a 500:1 leverage ratio would mean that you can control a $500 position with a $1 margin deposit.
Furthermore, most successful traders have a minimum risk/reward ratio for a trade before they will consider taking it, such as 1:2 or 1:3. For example, if you think the chances of a trade making 20 pips is around the same as the chances of it losing 10 pips, then your risk/reward ratio of that trade is 1:2. If that meets your risk/reward ratio criteria, then you might consider that trade worthy of executing.