5 Tips for Picking the Best Online Forex Broker
You just discovered online forex trading and you want to get started trading forex with the best online forex broker. Where do you turn when there are so many different brokers offering seemingly different offers? In this post I’ll help you pick the best online forex broker for your needs.
There are five main things to consider when picking online forex brokers:
- Do you like their forex charts? They all have free charting software included, but each broker’s forex charts will be different. You can usually try the forex chart software for free in a demo (practice) account.
- Do you like their platform? You should be able to easily navigate any online forex broker’s platform. Placing market, limit and stop orders should be easy for you to understand and do. You can practice this in a forex demo account.
- How much to open an account? The minimum will vary according to the forex broker. This could be as low as $25, or several thousand depending on the online forex brokers you look at.
- What’s the spread? The spread is the difference between the bid & ask price. Tighter spreads (smaller numbers) means more money for you. Most brokers will be fairly competitive.
- Are they legit? Although legitimate new forex brokers emerge online from time to time, avoid brokers that are brand new, don’t have a professional website, don’t have a decent alexa rating (should be under 200,000). Alexa Tip: search for a website and you’ll see it’s alexa rating. If they aren’t in the top 200,000 worldwide, they are too new or too rinky-dink for you to mess with them.
So how do you pick the best forex brokers online?
Option #1 (laborous, full due dilligence): If you want to go through lists of online forex brokers to make sure you’re getting the best deal, you can check out forex-ratings.com for comparisons of online forex brokers. They’ve got a list 49 top online forex brokers along with ratings. I don’t fully agree with the ratings personally, but it is a good list to examine if you’re looking to do some research.
Option #2 (easy, follow my picks): Over the past 10 years, I’ve seen plenty of online forex brokers come and go. Here are my top five picks for the best online forex brokers. I’m picking them because I’ve either used them, or people I know and trust have used them. My picks also all pass my 5 guidelines above for good forex brokers.
- Fxcm (Forex Capital Markets) – I’ve always liked FXCM. I started in my first demo account almost 10 years ago with them, and I’ve always liked using their platform. I’ve found it easy to use and they are a completely legitimate online forex broker. Plus with their micro-lot account, you can now trade forex for only $25!
- ACM – The favorite of many forex traders that I know. Their platform is a little more advanced, but when you trade forex online for awhile you’ll start to like ACM more (like when you try a MAC, you understand how difficult windows is).
- Easy Forex – The name says it all. A good broker for beginners. They are well established and have a great reputation for an online forex broker. Their platform and free forex charts are easy to use & you’ll enjoy using them.
- eToro – this broker has managed to emerge everywhere online virtually overnight. They may have gotten a higher ranking on my list (as they did on forex-ratings.com), but I haven’t had a chance to check them out yet, but from what I can tell they are a decent forex broker. This is one broker I will be checking out soon, but I believe you’d be safe if you checked them out before I did
- Oanda – this is a major forex broker that’s been online for a long time. They cater to slightly more experienced traders, but beginners can use them successfully. They call a demo account an “fxgame account,” but it works the same as a demo.
There are certainly other good forex brokers online, but these are my top 5 short list of the best online forex brokers. If you were to pick any one of the 5 forex brokers above, you’ll probably have a great experience with their demo account, trading platform, and forex charts. If you want even more forex broker choices, feel free to explore 49 forex brokers & reviews to choose from!
Tags: chart software, Forex Brokers, forex charts, forex demo, forex trading, free charting software, online forex broker Posted in
Rapid Forex on 
Joe on 
Don W. on 
Amador on
March 19th, 2010 at 12:36 pm
I started having acm as my favorite broker, until you introduced me to fxcm a few years back. I haven’t tried any others as I’ve been satisfied with them.
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March 19th, 2010 at 12:38 pm
ACM is the best.
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March 19th, 2010 at 12:59 pm
Thanks for this list and these tips. I haven’t checked any of them out yet, so I guess I’ll start with fxcm since that’s your fav.
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March 19th, 2010 at 1:46 pm
I’m keeping it simple because I need to learn this stuff yesterday. I got an etoro demo account and it’s cool & as you say legit. As a total beginner, I got right in there and started setting up my charts and demo trading like a forex player. I’m content with them, thanks for the list though Brian!
Preston
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March 19th, 2010 at 4:01 pm
Any recommendations for brokers outside the United States? Doesn’t it make sense to open accounts out of the grip of the CFTC so long as you are not jumping out of the frying pan into the fire?
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Rapid Forex
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March 19th, 2010 at 4:13 pm
James,
ACM is located in Switzerland. If your outside the US, the CFTC shouldn’t be a problem. If you’re in the US, ACM will have to comply with the CFTC’s control in the US. You bring up an interesting point though. I’ll have to research it some more and do a follow up blog post. I will be doing this post as it’s an interesting topic to learn about.
Thanks for the great comment and blog post idea!
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March 19th, 2010 at 9:42 pm
Ive used Oanda for a few tears now and find them excellent except for there spread adjustment to 10 pips during news times etc – Although there spreads are the lowest during normal times (I trade Euro/Usd only 0.9!)
The best things, however are that you trade in Units and there are no minimum trade size so that you can have a real money trade for one cent if you like! No need for demo/game accounts once you have an idea how the platform works – Play for real for pennies is the best way to learn as playing with toy money does not have the same emotions when exercising your judgement etc
I dont think there are any minimum deposit required but I live in the UK and it costs me £9.50 for an International Bank Transfer (Do it Online) And is deposited same day as a rule but would be more with wire transfer – So bear that in mind when making a deposit – You get simple interest on your deposit/balance as well – So its better than having your money stuck in a current account earning nothing – lol
Like you say the Interface is a bit difficult at first but is easy after a while
Dont know what all that CFTC stuff is there are no probs from the UK
Happy Trading
Dave
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Rapid Forex
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March 19th, 2010 at 10:02 pm
Dave,
Thanks for sharing about ACM. It makes sense why many traders like using them. I haven’t used them in a few years, but was also impressed with how easy they were to work with (same day transfers).
Happy Trading to you too
Brian
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March 20th, 2010 at 12:47 am
I lives in Nigeria, which of these could you recommend for me.
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Rapid Forex
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March 20th, 2010 at 12:58 pm
Charles,
Try ACM. They are a really good international broker. I don’t have experience with a broker who deals with Nigeria specifically, but I think they’ll work. If you can’t use them, please let me know.
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March 20th, 2010 at 2:24 am
I have been using FXCM for about 6 months on a demo account and find their charts very easy to use and understand.I also notice that you advertise fapturbo. Do you think you could get them to honour their committementto give support. I bought their system about 2 years ago but gained no support and therefore it is sitting in a file on my computer somewhere not being used.Do you think that maybe I have not received any support is because iam based in Australia?.And again thank you for your informative emails.
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March 20th, 2010 at 7:18 am
I would make sure the broker is well capitalized. Either the CTFC or NFA or both require that US brokers have 20 million in liquid assets to be raised to 50 million (I think) later this year. Also make sure the broker holds clients money in separate accounts from their operating account so that your money is protected in case of insolvency. They can’t use your money for operations.
FXCM will allow you to base your account in the UK which will allow for hedging and doesn’t enforce the FIFO rule imposed by the CTFC on accounts held in the US.
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March 28th, 2010 at 1:12 am
ACM is probably not for beginners, because they offer no micro accounts, require $2000 minimum deposit for a mini account, and have terrible spreads. The mini account has 4 pips spread for EUR/USD! You don’t get below 2 pips until you get a premium account with $50,000 deposit! If you had $50,000 to deposit, you would go to another broker that will probably give you level 2 access for a low commission, or variable spread not to exceed 1 pip.
(Actually, I’m looking at a broker that provides the best of both worlds for EUR/USD: level 2 trading for a fixed commission, OR 2 pips fixed spread. One can use either at his discretion. Micro account with $100 deposit.)
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March 29th, 2010 at 6:40 am
Regit ….. what broker is that you’re looking at who provides the best of both worlds ??
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April 15th, 2010 at 11:33 am
How about residents of Canada? We have poor service here and have to rely on US registered Brokers who are inclined to offer full facility. The brokers here are limited in scope and ALL of then offer no Stop Loss feature for securities except for high required margins – LIMITED SERVICE FOR FOREX TRADERS. Do Interactive qualify ?
Bill N.
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Rapid Forex
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April 15th, 2010 at 12:35 pm
Bill,
You can use ACM, who is based in Switzerland, or use a London based account through FXCM. Both companies have full stop/limit order functionality. I actually wrote a post about this exact topic as a reply to a question from another rapid forex blog reader. You can read the post here for more information: “Forex FAQ: Are Stop Orders Blocked in Forex Trading?“
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April 16th, 2010 at 10:27 pm
Dear Brian,
Thanks for lesson and information. I was from Malaysia. Which broker you recommend to me ?
Thanks
Regards
Lenon
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Rapid Forex
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April 16th, 2010 at 10:31 pm
@Lenon – AC-Markets is based in Switzerland and covers most countries. You may want to try them out and see if you can use them.
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April 17th, 2010 at 12:46 pm
Interesting topic. I’m located in BC, Canada and it seems all US brokerages are forbidden to accept clients from this province. As result I’m currently using Questrade however I don’t really like their trading platform and will be looking to open with some other brokerage. Suggestions?
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Rapid Forex
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April 17th, 2010 at 1:37 pm
@Karl – have you tried ACM (based in Switzerland)?
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April 18th, 2010 at 6:28 pm
Which of your five brokers would you recommend for South Africa?
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Rapid Forex
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April 18th, 2010 at 6:31 pm
@Leon – ACM is a great international broker. Check them out and ask them if you can use them, if not check out the other brokers listed above. FXCm is also good.
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April 19th, 2010 at 8:46 am
Hey everybody.
I just need to say that I have trading with ACM and this guys are great, may native language is spanish and ACM have offices in Montevideo Uruguay, for latin costumers, they have always answered all my questions and client support is the fastest, I just belive that their platform is so advance that sometimes little “glinchs” appear, such as type orders not apperaing or delay in charts downloading, this has just happend once, and I guess things like this happens with other brokers, the bottom line is that I highly recomend ACM as a broker.
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April 20th, 2010 at 2:10 pm
What would you recommend for Thailand and Australia
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Rapid Forex
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April 20th, 2010 at 2:19 pm
@Kulvadee – Contact the brokers on the list. Any of the 5 that I picked would be excellent brokers. If they allow you to use them, then they’re all good
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April 21st, 2010 at 12:09 am
If you have a choice of brokers, be sure to check the spread for the pair(s) you intend to trade, as well as checking if they have limits for how close you can place limit and stop orders. For example, you should be able to get the EURUSD pair at 2 pips or less spread. Three pips is already excessive, and more than 3, well, let’s just say someone is probably taking advantage of ignorant newcomers. Many brokers don’t have a limit on how close you can put your limit and stop orders. I have seen others that run from 3 pips to as much as 10 pips!
N.B. Some of the brokers listed in this thread fall into one or more of these described groups, so be sure to get the facts before you open your account.
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April 21st, 2010 at 3:16 pm
Thanks, Brian.
And thanks Regit for the tip.
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May 7th, 2010 at 4:57 am
Hi All,
I was using a brokerage based out of London, then one day the sent me an email telling me my account was to be closed, because i was a resdident of Canada! @#%#ing government!!! I also live in BC! I use MFGlobalFX right now as they seem to be one of the only that we residents of BC(CANADA) can legally use. The only downside is that leverage seems to be restricted to 33:1 which makes it tough to make any real money. Apparently if the US gov has there way, forex traders will be restricted to 10:1 leverage, which will effectively kick most of us out of the game unless we go offshore.What are your thoughts Brian?
Kevin
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June 8th, 2010 at 8:36 am
Hello Brian,
How about Marketiva, thanks for your suggestion.
Hendrik
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Rapid Forex
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June 9th, 2010 at 10:27 am
@Hendrik – I haven’t used Marketiva.
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