Best Forex Brokers
Trading currencies on the foreign exchange market requires specialized features and offers a unique experience that certain brokers have the experience and knowledge to carry out successfully. Finding a good forex broker requires diligence and research that is critical to your success in the forex market. Here are a few of the top forex brokers (or brokerages that support forex trading) that are available online.
Zecco
- Offers trading on 30 currency pairs along with spot silver and gold trading.
- Has a virtual forex trading platform that allows you to practice before you put your trading strategies to work, with up to $50,000 in virtual funds.
- Access to real time currency quotes as well as gold and silver and 24 hour news.
- Customer service department is available 24 hours a day, six days a week for real time forex trading.
- Access to daily and weekly research, powerful charting tools and a host of educational materials aimed at making your forex trading experience the best it can be.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Broker Assisted | Fund Trades |
| $4.50 | $4.50 | $0.50 | $0.00 | $19.99 | $10.00 |
LightWave Trading Platform
- Offers an easy way to manage your forex trades with proprietary Pressure Charts and advanced trade analysis.
- LightWave offers new customers a seven day free trial offer which allows you to test drive their platform before you sign up.
- Daily live webcasts offer new and advanced traders the chance to develop their trading strategies and increase potential profits.
- Affiliated with MB Trading.
- LightWave offers a virtual trading platform designed to help sharpen your forex trading strategies before risking real money.
- LightWave gives you access to one of the largest communities of forex traders allowing you to benefit from the experience of others.
MB Trading
- MB Trading offers 24 hour customer service support, which allows for real time forex investing.
- Earned 4 ½ stars by Barron's in 2010 for Best for Frequent Traders and Trade Experience and earned the prestigious Best Broker honor. They also took top honors in SmartMoney’s 2010 review.
- Access to real time forex quotes, in-depth research and powerful charting tools as well as advanced features such as mobile trading, multiple online trading platforms, and online investment community.
- Provides direct trading access to multiple foreign exchanges with instant trade execution.
- Access to demo version of trading platform for a real “try it before you buy it” experience.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Fund Trades |
| $4.95 | $0.00 | $0.95 | $1,000 | N/A |
Questrade
- Streaming quotes, instantaneous order execution and single screen user interface make trading forex simple and easy.
- One screen account management that includes: one click order execution, major currency pairs, rate summary, position management and research.
- Access to novice and advanced educational articles and tools to improve profits for all investors.
- Multiple tier trading that allows investors the ability to trade in their comfort zone.
- Access to top rated customer service via phone, live chat and email so that you are never alone, unless you want to be.
| Stock Trades | Options Base | Options Contract | Minimum Deposit | Fund Trades |
| $4.95 - $9.95 | $9.95 | $1.00 | $1,000 | $9.95 |
TradeStation
- Offers tools designed to help you create, test, adjust and execute customized forex strategies in the new Simulator application.
- Direct access to interbank dealers that tightens spreads, giving investors more precision in their trades.
- Real time forex quotes, advanced charting capabilities, in-depth research and watch lists give investors everything they need to make profitable trades.
- Access to the industry’s most comprehensive and historical intraday and daily trading database for the most comprehensive trend analysis available.
- The MATRIX combines state of the art research, order entry and position monitoring tools in order to create a simple, one click order entry platform.
| Stock Trades | Options Base |
| $6.99 - $9.99 | $1.00 |
Interactive Brokers
- Rated 4 stars for Low Cost Broker by Barron's.
- Over 33 years of combined experience in the securities and forex markets, making them one of the older and more knowledgeable brokers around.
- Access to real time forex quotes and streaming exchange rates.
- Interactive Brokers offers a full service forex trading platform demo application that allows you to “try it before you buy it”.
- Offers a full suite of educational and informative resources that allow investors to advance their forex trading strategies and improve their chances for success.
What Should You Look For In A Forex Broker?
Forex is a shortened term used to refer to trading foreign currencies. This type of trading uses characteristics of the market such as currency conversion rates and market volatility in order to create profitable opportunities for investors. Forex is short for Foreign Exchange.
Here is how forex trading works: the investor buys a foreign currency with his or her native currency. For illustration’s sake, the investor buys Euros with U.S. Dollars. This is the same concept behind exchanging currency during foreign travel. The translation between currencies is not exactly one to one, which is where the potential for profit occurs.
For example, an investor looking to purchase 1,000 euro in 2005 would look to pay about $1,200 in U.S. dollars to do so. Why? Because the euro was valued higher during that time than the U.S. Dollar. Throughout 2005, the Euro continued to increase in value over the U.S. dollar and by the end of the year, the same 1,000 euros would have cost the investor $1,300 U.S. dollars. Now, if the investor chose to trade his euros for dollars, then he would gain $100 over his initial investment. Of course, if the forex market had moved the other direction, the investor could have realized a loss just as easily.
Choosing a broker for this type of trading can be tricky. Not because the process of trading currency is difficult, but because the market is extremely liquid and volatile. Successful forex trading takes years of practice and experience which a trader needs in order to learn how to read trends and perfect timing. Here are a few tips on what to look for in a Forex broker:
- Regulation. Although forex markets are typically unregulated, domestic forex traders are not. You need to make sure that the broker you choose is registered as a Futures Commission Merchant (FCM) with the Commodities Futures Trading Commission. You can do this by looking here.
- Customer Service. Forex trading doesn’t necessarily occur during normal stock market trading hours. You need to ensure that the broker you choose is available when the forex markets are open.
- Currency Pairs. The broker you choose should offer a wide variety of currencies to trade in, including the ones you are most interested in.
- Trading Platform. The trading platform your broker uses should be simple and easy to navigate. You will not be able to take advantage of quickly changing markets if you are struggling to input an order.
- Reputation. The broker you use should have a reputable track record with knowledgeable and experienced representatives. You’re going to have to do your homework when it comes to making sure that the broker you choose will live up to the promises he or she makes on their website. It is a good idea to review such publications as SmartMoney, Kiplinger’s, and Barron’s to see how your broker stacks up against the competition.
Trading in forex markets is an exciting way to invest and make a profit. However, this form of investing or trading can be particularly risky for novice investors or those who choose the wrong broker. Ensuring that you have chosen the right broker or trading adviser will go a long way to making your forex trading an enjoyable and profitable experience.
{ 0 comments… add one now }