Arincen’s Best FOREX Brokers 2024

Take a look at our experts' top 7 FOREX brokers for 2024. With so many choices out there, it's tough to select the best online brokerage. In this case, we've done the work for you. Here is a summary of each broker according to specific criteria, along with their pros and cons:

1. ICM - Capital 91.10: Best Deposit and Withdrawal Broker

2. Tradeview - 90.00: Trusted broker that offers very low trading costs as well as comprehensive financial literacy materials for its clients.

3. XTB - 85.55: Best Customer Service Broker

4. IG - 85.45: Best Regulations Broker plus Convenient Platform

5. Saxo Bank - 80.09: Excellent Private Trading Platform

6. CMC Markets - 80.07: More than 9,000 Assets

7. ThinkMarkets - 80.05: Aimed at the Audience of Traders

The FOREX market involves participants from all over the world, including banks, financial institutions, governments, corporations, and individual traders. It is a global decentralized marketplace for trading currencies. This market, which determines foreign exchange rates for every currency, includes all aspects of buying, selling, and exchanging currencies at current prices. 

In terms of trading volume and liquidity, the FOREX market is by far the largest in the world, at some six trillion dollars daily, followed by the credit market. The FOREX market operates 24 hours a day and five days a week (Monday through Friday), except for international holidays. 

By trading FOREX online, you can make extra income, which has made retail trading highly popular in recent years. FOREX trading is facilitated by the best online brokerage firms, which enable clients to buy and sell through a trading platform. Many users enjoy the sheer thrill of partaking in this global network of buyers and sellers where transactions are conducted electronically within fractions of a second.

• national identity documents, and 
• proof of address. 

A trading website like en.Arincen.com is a great place to start. We have a large list of curated articles that can give you all the information you need on common FOREX trading terms, like

• pips 

• spreads 

• leverage, and 

• support and resistance. 

That said, we will cover some of these topics later in this article. We have also taken the time to prepare detailed articles on important topics, such as FOREX trading strategies and risk-management strategies. Additionally, once on our website, you will find helpful video courses that cover the basics of FOREX trading. With this range of knowledge, you will be well on your way to trading success.

Remember also that your broker will normally have developed a detailed education and research repository themselves. That is also a good place to bolster your FOREX knowledge, with the extra benefit that your broker’s information will be slanted toward their own platform and resources, which makes it useful. Although this is not the primary aim of this article, we will let you know about some of the most important terms you will come to understand as your trading journey unfolds:

Pips 

A pip is the condensed version of the term "percentage in point." A pip is a measure of how much the value between two currencies changes. The relative value between currency pairs is shown in number form with four decimal places. A pip represents the last of those four decimals and is therefore a small unit of change. 

Lot

In FOREX trading, the term “lot” refers to the standardized size of a trade. It is the unit of measurement used to describe the volume or size of a FOREX trade. There are three main types of lots in FOREX trading: standard lot, mini lot, and micro lot.

Position

A position size in FOREX trading refers to the number of lots or units of a particular currency pair that a trader buys or sells in a trade. Position size is an important aspect of FOREX trading as it directly affects the potential risk and reward of a trade.

Spread

A term you will encounter most often is the spread, which is broadly defined as the difference between your FOREX broker's sell rate and buy rate when exchanging or trading currencies. We will tell you more about spreads later.

Japanese Candlesticks 

A Japanese candlestick is a visual representation of price movements within a certain trading period. In the realm of retail trading, candlesticks can provide a clear, visual understanding of market dynamics. Each candlestick on the chart provides information on the opening, closing, high and low prices of the currency pair during that timeframe.

Technical Analysis

Technical analysis is the study of historical price and volume data to identify patterns, trends, and potential future price movements. Technical analysts use various tools and indicators, such as chart patterns, moving averages and oscillators to analyze market data and make trading decisions.

Fundamental analysis

This type of analysis involves the careful study of 

• economic

• financial, and 

• political factors. 

These may influence the value of a currency or other financial instrument. You can get this information by reading news articles to analyze such factors as 

• interest rates 

• GDP

• inflation

• political stability, and 

• global events.

When selecting an online broker for retail trading, especially in the FOREX market, there are several key factors to consider. We’ve made the list of the most important “holy grail” factors for you to pay the closest attention to:

Regulatory compliance:

No matter where you live, you need to choose a broker based on how well they are regulated. In developed nations in Europe, and North America, as well as in parts of Asia, the quality of regulation is in line with the quality of the overall financial infrastructure. We’ll tell you more about the best regulators in the next section.

Account security:

Look for brokers that offer high levels of security for your funds and personal information. This includes data encryption and two-factor authentication.

Range of assets:

Not only should your broker give you access to a healthy slate of currency pairs drawn from major, minor, and exotic, but the best multi-asset online brokers also give you access to other financial assets, such as crypto, commodities, bonds, CFDs, ETFs, and indices.

Trading platform and tools:

The trading platform should be user-friendly, reliable, and equipped with the right tools for analysis (like charts, indicators, and newsfeeds).

Costs and fees:

Fees eat away at your profits. That’s why you should understand the broker's fee structure, including spreads, commissions and any other charges that might apply. Compare these across different brokers to find competitive rates.

Execution speed:

Fast execution speeds are crucial in FOREX trading to ensure that you get the price you expect without significant slippage.

Customer service:

Good customer support can be vital, especially for new traders. Look for brokers that offer timely and helpful support via various channels (phone, email, live chat).

Educational resources and research:

Access to comprehensive educational materials, tutorials, webinars, and up-to-date market research can be extremely helpful for new traders to learn and make informed decisions.

Expanding on some of the important points mentioned above:

Online brokers who offer their services to FOREX traders must be regulated by a top-notch oversight body. Regulated brokers are compelled to stick to common best practices, like keeping their operating funds separate from client funds, complying with strict leverage rules as we have mentioned and staying away from offering bonuses and overly generous promotions.

Tier-1 regulators can be found in the most advanced countries. Prime examples of these include but are not limited to, the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities Exchange Commission (CySEC) in Cyprus, the Australian Securities and Investments Commission (ASIC), the Financial Services Agency (FSA) in Japan, and the National Futures Association (NFA) in the US.

Tier-2 and tier-3 regulators in lesser economies do not provide you with the right level of oversight that will ensure your interests as a trader are protected in times of trouble. However, based on where you live, if you have no choice but to work with a broker that is not based in a developed economy, it is still better to choose a regulated broker over an unregulated broker. This will give you the opportunity to raise the alarm if you have been scammed or if the broker becomes insolvent.

If you want to learn more about some of the best-regarded regulators, read our article on regulation here. To ensure that your broker is legit, you can follow these steps:

• Ask the broker to explain its FOREX product, with specific emphasis on regulation

• Check if the broker is registered with a top-tier regulator or at least the applicable regulator in your area

• Ask how the broker plans to compensate you if it goes insolvent, and

• Stay on top of your account and make sure all transactions are legitimate

Here’s a list of major reasons your broker must be regulated:

Safety of funds: 

A regulated broker must comply with strict regulations to protect client funds, including segregating client funds from the company's own funds.

Fair trading practices: 

A regulated company must adhere to strict guidelines ensuring products and services are offered fairly and without manipulation, helping create a level playing field for all clients.

Transparency: 

The law compels regulated brokers to be transparent with clients, which assures you of safe, fair trading. In practice, this looks like brokers admitting openly that FOREX trading is highly risky, and you could lose your money.

Protection from fraud: 

Regulatory authorities protect clients from fraudulent activities and scams and ensure that FOREX brokers operate within set guidelines that safeguard their clients' interests.

• FOREX

• Commodities

• CFDs

• Equities or stocks

• Indices

• Cryptocurrencies

• Bonds

• Options and Futures

Here are the explanations of some of the most common fees and costs associated with retail FOREX trading:

Spreads:

There are two main kinds of spread, one is fixed, and the other is variable. The first step in FOREX trading is identifying the spread differential, defined as the difference between the bid (sell) price and the ask (buy) price of a currency pair. While many FOREX currency pairs are traded without commission, the spread is one “cost” that applies to any trade that you place. This is, indeed, the biggest source of profit for the FOREX broker.

The spread refers to the difference between two prices, such as the bid/ask rate in a currency exchange rate. An example of a good spread is 1.4 pips for the EUR/USD (the narrower the better, this means that a spread of 1.4 pips is better than a spread of 2 pips). You can learn more about this concept in this article.

Commissions:

As for commissions, some brokers charge a commission on trades in addition to the spread.

The commission can be a fixed amount per lot or a percentage of the spread. Commission-based accounts are typically used by professional traders who require tighter spreads.

Rollover fees:

Rollover fees, also known as swap rates, are charged when a trader holds a position overnight

The fee is based on the interest rate differential between the two currencies in the pair

Rollover fees can be positive or negative, depending on the direction of the trade and the interest rate differential. A word of caution, Islamic trading does not permit traders to pay rollover fees, making Shariah-compliant swap-free accounts the way to go for Muslim traders.

Inactivity fees:

Some brokers charge inactivity fees if you do not make any trades for a certain period. The fee can be a fixed amount or a percentage of the account balance. You can swerve inactivity fees by making at least one trade within the specified period.

It's important to note that different brokers have different fee structures, and you should carefully review the fee schedule of any broker you are considering. Additionally, always consider the total cost of trading, including spreads, commissions, and other fees, when evaluating the profitability of your trades.

• Bank wire transfer
• Credit / Debit cards, and
• Electronic payment platforms, e.g., Neteller.

The best FOREX brokers offer platforms that can be used by traders with different requirements. Be they web-based or downloadable, platforms must be customizable with good technical indicators and strong risk-management tools.

Professional traders will be looking for sophisticated platforms with exceptional performance and a seamless trading experience featuring a range of charts, market indicators, and drawing tools. Beginner traders will be looking for an intuitive design, clear action labels, and helpful tips and prompts.

When choosing a trading platform, you should consider a range of features that cater to both novice and seasoned traders. Here are some elements to keep in mind:

• Technical analysis tools: The platform should have robust technical indicators to help traders make informed decisions.

• Customization and user interface: You should be able to adapt the platform according to your preferences, allowing you to set up your trading environment precisely how you want. We find that the products from the MetaTrader suite, especially MT4, offer excellent features for this purpose.

• Platform accessibility: A top-notch trading platform should offer flexibility in terms of access, whether it's web-based or a downloadable application.

• Risk-management tools: Trading inherently comes with risks, and a high-quality platform should provide instruments that allow traders to set stop-losses, take-profits, and other crucial order types.

• Performance and reliability: Beginner traders especially need a platform that operates seamlessly with minimal downtimes or glitches. This ensures a smooth trading journey, allowing them to focus on market movements rather than technical hiccups.

• Learning and educational resources: The best brokers will offer platforms that are not only intuitive but also come with tutorials, guides, and responsive customer support to assist traders in navigating any challenges they might face.

You will find that ICM’s ECN account comes with the lowest fees. No matter your trading experience level, there is a pricing tier that caters to your needs.

What are some ways to get the most out of the broker you have carefully chosen? One of the most powerful tools you can use as a trader is leverage. This is a situation where your broker allows you to access larger positions than you would have with your capital. Understanding leverage and associated terms, like stop-outs and margin, will give you an advantage in the market. Here’s what the terms mean:

Leverage:

Leverage allows you to control a large position with a small amount of invested capital. It is often expressed as a ratio, such as 50:1, indicating how much larger the trade can be compared to your own capital. Depending on the regulatory framework within which your broker operates, you'll encounter varying leverage rules. Several key regulators have introduced specific guidelines to safeguard retail traders.

Let's look at some of these leverage rules set by major regulators:
ASIC in Australia:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major stock market indices

10:1 for commodities other than gold and minor stock market indices

5:1 for equities (stocks) and other underlying assets

Swiss Financial Market Supervisory Authority (FINMA) in Switzerland:

FINMA doesn't specify leverage limits as does ASIC. However, Swiss brokers must strictly adhere to robust capital and risk management requirements, ensuring that they do not offer excessively high leverage that could endanger their financial stability or their clients' funds.

CySEC in Cyprus:

CySEC regulations fall closely in line with the European Securities and Markets Authority (ESMA) guidelines and the Markets in Financial Instruments Regulation (MiFIR).

30:1 for major currency pairs 

20:1 for non-major currency pairs

10:1 for major indices such as the S&P 500

5:1 for equities (stocks) and other underlying assets

FCA in the UK:

30:1 for major currency pairs

20:1 for non-major currency pairs, gold, and major indices

10:1 for commodities (excluding gold) and non-major equity indices

5:1 for individual equities and other reference values

Stop out:

In retail FOREX trading, a stop out is a process where a broker automatically closes one or all of a trader's open positions when their margin level falls to a specific percentage level. The stop-out level is like the margin call level, except that it’s much worse. 

Margin refers to the amount of money that a trader needs to deposit with their broker to open and maintain a trading position. It is a percentage of the total value of the position, and it acts as collateral for the broker. The margin is calculated based on the leverage that the trader is using, which is the ratio of the trader's own funds to the amount of money that they are borrowing from the broker. The higher the leverage, the lower the margin requirement, and vice versa. 

The stop-out level is when the equity is lower than a specific percentage of the margin used. What does this mean to me? Stop-out and margin levels are the points at which a broker starts liquidating existing positions, so you need to pay close attention to how you are trading. 

There are three levels of stop outs in retail FOREX trading:

0% Stop out: 

This means that the broker will not automatically close a trader's positions, even if their Margin Level falls to 0%. This is the most favorable stop-out level for traders, but it is rare.

50% Stop out: 

This is the most common stop-out level in retail FOREX trading. If a trader's margin level falls below 50%, the broker will start closing their positions automatically until the margin level goes above 50%.

100% Stop out: 

This means that a trader's positions will be automatically closed by the broker if their margin level falls to 100%. This is the most unfavorable stop-out level for traders.

Here's an example of a Stop out level at 50%:

Let's say a FOREX broker has a stop out level at 50%. If your margin level falls below 50%, the broker will start closing your positions automatically until the margin level goes above 50%. It's important to note that once the liquidation process has started, it is usually not possible to stop it since the process is automated. 

Your broker's customer support team will not be able to help you reverse the process.  As such, using protective measures, like stop-loss orders and not over-leveraging, is always a good idea. Additionally, the specific percentage and the order in which positions are closed can vary among brokers, so traders need to be aware of their broker's policy on stop-out levels.

Margin:

Margin trading in FOREX is the term we use to say you have opened a position with leverage. A margin requirement is the amount of money you must deposit to open a leveraged position, often a percentage of the full value of the position. For example, a 1% margin requirement on a $100,000 position would mean that $1,000 must be deposited.

If the market moves against your position and the account value falls below a certain level, known as the maintenance margin, the broker may issue a margin call. This requires you to deposit additional funds to maintain the open positions or the broker may close the positions to avoid heavy losses. 

Different brokers have different policies regarding margin trading, including margin requirements, margin call and stop-out practices, and the time given to meet margin calls. For this reason, you must familiarize yourself with your broker's specific policies and you must always implement risk management strategies, such as stop-loss orders to limit potential losses when trading on margin.

Technical Aspects of the Broker’s Website

Ask Other Traders on Our Network

Will Your Money Be Protected if Your Broker Becomes Insolvent?

The Dos and Don'ts of FOREX Brokers

• The FOREX brokerage firm cannot recommend a buy or sell
• The FOREX brokerage firm must not provide price or market expectations (rise/fall) 
• The FOREX firm cannot control your financial dealings (deposit/withdrawal)
• The FOREX brokerage firm should not “manage” your portfolio under any circumstance
• The FOREX brokerage firm cannot grant a client a bonus unless clear terms guide it beforehand.
• The brokerage firm must not use bank accounts not under its name; and
• FOREX brokerage firms cannot have or offer the service of account managers.

• First, they buy at lower prices and sell at higher prices; and 
• Second, they cash in on the spreads between the bid and ask price. 

• work with liquidity providers to give their clients variable spreads, and 
• match traders with other traders who would like to take the other side of a trade.  

• FOREX charts
• Live rates
• The latest in FOREX signals 
• Technical analysis
• An online trading academy. 
• How to learn about FOREX.
• An up-to-date economic calendar. 

The expert team at Arincen collected more than 120 pieces of data covering more than 100 licensed FOREX companies. Data collection was done in three ways:

1.  Companies’ websites.

2.  Other websites that have ranked FOREX companies.

3. A survey questionnaire (referred to here as Survey “1”) was sent to the companies invited to participate in the exercise. We have identified thirteen criteria for our assessment, each containing several aspects and carrying its relative weight. These include licensing, deposits and withdrawals, number of assets, etc.     

Afterwards, we validated the data by:

1.  Registering with FOREX companies as a secret shopper and/or as Arincen.

2.  Survey number “2,” in which we asked these companies’ customers for important feedback and experience.

The next step saw us evaluate and rank each company, relying on the arduous work of 15 Arincen employees. We were careful in ensuring the most accurate assessment possible, including considering different languages, as well as the various mobile-app operating systems, e.g., Apple, Samsung etc.

To add credibility to our research project, we sent a final and third survey (referred to here as Survey “3”) to enable participating FOREX companies to evaluate our research and whether it accurately reflects the realities on the ground. We were fortunate enough to receive a mark of 9.9 out of 10! We have kept to a minimum the margin of error, which stood at a measly 1%.  To learn more about how we came up with the evaluation, please click here.