Online forex trading brokers
Maximum leverage: 50:1 on major currencies, 20:1 on minors pricing: spread
Top-3 forex bonuses
Best online brokers for forex trading in january 2021
Trillions in currency are zipping around the world, 24 hours a day, five days a week, making the foreign exchange (also known as forex or fx) markets the world's most active. Fortunes can be won and lost quickly, as brokers routinely let traders borrow heavily to finance their speculations.
Popular searches
If you're looking to get in on this action, you'll need a broker who deals in currency, and many of the big names in stock trading simply don't offer this feature. Because the markets are so different, you'll also need to evaluate a forex broker on different criteria from what you would use on a stock broker.
Below are some top forex brokers, including a couple that allow customers to trade cryptocurrencies.
Here are the best online brokers for forex trading in 2021:
What to consider when choosing a forex broker
While you may be familiar with many of the brand-name online stock brokers, only some of them deal in forex trading. Instead, a plethora of more specialized niche brokers populate the space, and they may cater to high-volume currency traders looking for every possible edge.
But regardless of which kind of broker you're targeting, you'll want to focus on at least a few features that are common to any forex broker:
- Pricing: forex brokers have two ways to price their services: by baking the price into the buy-sell spread or on a commission basis. Spreads are often quoted in pips, or one ten-thousandth of a point.
- Leverage: how much leverage will the broker let you assume? In general, traders are looking for a higher amount of leverage to magnify the moves in the currency market. The level may differ on the liquidity of the currency.
- Currency pairs: A handful of major pairs dominate trading, but how many other pairs (minors, exotics) does the broker offer? The most popular currencies include the U.S. Dollar, the euro, the japanese yen, the U.K. Pound and the swiss franc.
- Spreads: how wide are the broker's spreads for trades? The larger the spread, the less attractive the trade. Of course, brokers who charge a spread markup will tend to have wider spreads because that's how they get paid.
Investors looking to buy cryptocurrency may be able to do so through some of the traditional stock brokers such as TD ameritrade or robinhood. These have been noted below, though the trading works differently from regular forex trading as described above.
One downside for american traders is that many top forex brokers are based in the U.K. And simply won't accept them because of their citizenship. The brokers below are all fine for americans, however.
Overview: top online forex brokers in january 2021
TD ameritrade
TD ameritrade offers a range of tradable products, and currency really rounds out its portfolio. Currency traders are able to use the broker's highly regarded thinkorswim trading platform, and can also trade on a couple of mobile apps.
The broker uses spread pricing and offers 50:1 leverage, which is the legal maximum permitted in the U.S. It offers more than 70 currency pairs, providing plenty of options. TD ameritrade also allows clients to trade bitcoin futures, though you'll need to get approval to trade futures, and pricing uses the broker's futures scheme.
(charles schwab has purchased TD ameritrade, and will eventually integrate the two companies.)
Pricing: spread
Maximum leverage: 50:1 on major currencies; 20:1 on minors
Currency options: 73 pairs
Forex.Com
Like its name suggests, forex.Com specializes in currency trading (though it trades in metals and futures, too) and it offers a plethora of attractive features. Clients can select the pricing structure that suits them best: spread or commission, or the broker's STP pro pricing, where prices come from global banks and others with no additional markup.
Forex.Com also gives traders access to more than 80 currency pairs, and its success with clients has the broker declaring that it's the no. 1 forex broker in the U.S., in terms of assets held with the broker.
Pricing: spread and commission, depending on account type
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
Ally invest
Ally invest is better known as a low-cost stock broker (and for its especially good prices on options trades), but currency trading really adds some breadth to its offerings. Ally is a good choice for traders just starting out, and it offers more than 80 currency pairs and easy-to-use charting software, including a mobile app.
Ally also allows you to open a $50,000 practice account so that you can see how currency trading works, even if you don't intend to actually trade. Given the difficulty of forex trading, that's a great resource for beginners to try it out.
Pricing: spread
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
IG
IG is a more specialized broker focused on forex, and it's open to american investors. It's a high-powered broker that nevertheless offers many features, such as a demo account, that may help novice traders. The broker offers a web platform, a mobile app and access to metatrader4 and prorealtime platforms.
IG allows spreads as low as 0.8 pips, and says that its pricing is up to 20 percent lower on the euro-dollar pair than the top two U.S. Brokers. The broker also provides an extensive range of charting capabilities across its platforms.
Pricing: spread
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
Robinhood
Robinhood doesn't offer traditional currency trading, but it does bring the slick, easy-to-use interface it's known for to the crypto space. Here clients can trade a range of cryptocurrencies, including some of the most popular. Tradable currencies include bitcoin, ethereum, litecoin and dogecoin, among a total of seven types of cryptos. You'll also be able to get quotes on 10 other digital currencies.
Like its core brokerage that offers free trades on stocks and options, crypto trading is also gratis (free) on robinhood.
Forex trading and brokers
The foreign exchange market – also known as forex or just FX – is a decentralized global market for the trading of currencies. In terms of trading volume, this is by far the largest market in the world.
The foreign exchange market is not one specific exchange (such as the new york stock exchange or the london stock exchange). Instead, financial centers around the globe function as hubs or anchors of trading in a network that includes various participants, including large international banks.
The history of foreign exchange trading is very old. As long as there have been different currencies, there have been people wishing to exchange one currency for another. A merchant that traveled from his home to other parts of the world to obtain foreign goods would for instance need to exchange his currency one or more times along the way, both to be able pay for his own needs as he traveled and to make sure he had an accepted currency available when he reached sellers of desirable goods. In major trading hubs, such as capital cities and important ports, professional money changers would be present to cater to these needs and make a profit from the fluctuating exchange rates.
The modern foreign exchange market that we know today emerged in the 1970s, as countries gradually switched from controlled exchange rates to floating exchange rates for their national currency.
FOREX brokers
A FOREX broker is a company that provides retail investors with access to a FOREX trading platform that enables the investors to buy and sell currencies. Most brokers offer a wide selection of different leveraged FOREX products that make it possible to earn high returns from small market movements. The leverage also increases potential loses and leverage trading is a type of high-risk trading.
Your primary goal when comparing FOREX brokers should be to find one which is regulated by a trusted financial institution, and that has a good reputation on the market. You should also compare the spread they charge as well as the overnight fees. A small spread makes it a lot easier to make money. If you want to be able to use a certain FOREX trading platform then you need to make sure that the broker allows you to use said platform. Not all brokers provide access to the same platforms. Metatrader4 is by many considered the best forex trading platform for beginners but other platforms such as ninjatrader and algotrader are also popular.
Characteristics of the foreign exchange market
- Huge trading volume
- High liquidity, especially for the most frequently traded currency pairs
- Trading from 22:00 GMT on sunday to 22:00 GMT on friday.
- Decentralization and geographical dispersion
- Low margins of relative profit
- Using leverage is very common among traders
The interbank market
The interbank market is the top-level foreign exchange market. This is where major banks exchange currencies with each other, either directly or through electronic brokering platforms. The two major platforms are the electronic broking services (EBS) and thomson reuters dealing. Together, they have over 1,000 banks as their clients.
The interbank market is decentralized; there is no specific building that you can visit where the transactions are taking place.
The thee main constituents of the interbank market are the spot market, the forward market and SWIFT.
- The spot marketthis is where currencies are traded for immediate delivery.
- The forward marketthis is where contracts for future delivery is traded.
- SWIFT = society for world-wide internbank financial telecommunications.This is a network used to send and receive information about financial transaction. A majority of the international interbank messages are sent through SWIFT. Data from the year 2015 shows that over 11,000 financial institutions in more than 200 countries and territories use SWIFT.
Currency pairs
The four most frequently traded pairs are:
EUR/USD: the euro and the U.S. Dollar
USD/JPY: the U.S. Dollar and the japanese yen
GBP/USD: the british pound sterling and the U.S. Dollar
USD/CHF: the U.S. Dollar and the swiss franc
Retail foreign exchange trading
Retail foreign exchange trading is a small segment of the foreign exchange market. This segment developed fairly recently, when internet made it feasible to offer platforms for very small-scale forex trading.
Many individuals that are engaging in retail foreign exchange trading do it as a hobby, enjoying the excitement that the trading brings while also – hopefully – making some long-term profits.
If you want to try retail foreign exchange trading, you need to sign up with one of the companies that provide this service, and then make a deposit into your trading account. Many providers will offer you the option of partly trading on credit, where the size of the credit is determined by how much money or other valuables you have in your account. This is known as margin trading or leverage, and it means that even if you just deposit $100 into your account, you can start doing fairly big trades on the platform right away. Naturally, using credit to speculate on the currency market is very risk and you can end up owning the provider much more money than what you deposited.
Background
The first trading platforms for retail forex trading began to appear in the mid-1990s as private internet connections became more widespread than before. In the early days, you had to download the trading software and install it on your computer. Eventually, web-based interfaces were developed where you could trade directly in your web browser without the need to download and install a program.
As technical analysis grew increasingly popular among retail traders, more and more trading platforms began to include charting tools and other useful aids for technical analysis. News feeds are another popular feature in modern platforms, as is automated trading tools. During recent years, social trading has started to catch on, but this field is still in its infancy.
Best online brokers for forex trading in january 2021
Trillions in currency are zipping around the world, 24 hours a day, five days a week, making the foreign exchange (also known as forex or fx) markets the world's most active. Fortunes can be won and lost quickly, as brokers routinely let traders borrow heavily to finance their speculations.
Popular searches
If you're looking to get in on this action, you'll need a broker who deals in currency, and many of the big names in stock trading simply don't offer this feature. Because the markets are so different, you'll also need to evaluate a forex broker on different criteria from what you would use on a stock broker.
Below are some top forex brokers, including a couple that allow customers to trade cryptocurrencies.
Here are the best online brokers for forex trading in 2021:
What to consider when choosing a forex broker
While you may be familiar with many of the brand-name online stock brokers, only some of them deal in forex trading. Instead, a plethora of more specialized niche brokers populate the space, and they may cater to high-volume currency traders looking for every possible edge.
But regardless of which kind of broker you're targeting, you'll want to focus on at least a few features that are common to any forex broker:
- Pricing: forex brokers have two ways to price their services: by baking the price into the buy-sell spread or on a commission basis. Spreads are often quoted in pips, or one ten-thousandth of a point.
- Leverage: how much leverage will the broker let you assume? In general, traders are looking for a higher amount of leverage to magnify the moves in the currency market. The level may differ on the liquidity of the currency.
- Currency pairs: A handful of major pairs dominate trading, but how many other pairs (minors, exotics) does the broker offer? The most popular currencies include the U.S. Dollar, the euro, the japanese yen, the U.K. Pound and the swiss franc.
- Spreads: how wide are the broker's spreads for trades? The larger the spread, the less attractive the trade. Of course, brokers who charge a spread markup will tend to have wider spreads because that's how they get paid.
Investors looking to buy cryptocurrency may be able to do so through some of the traditional stock brokers such as TD ameritrade or robinhood. These have been noted below, though the trading works differently from regular forex trading as described above.
One downside for american traders is that many top forex brokers are based in the U.K. And simply won't accept them because of their citizenship. The brokers below are all fine for americans, however.
Overview: top online forex brokers in january 2021
TD ameritrade
TD ameritrade offers a range of tradable products, and currency really rounds out its portfolio. Currency traders are able to use the broker's highly regarded thinkorswim trading platform, and can also trade on a couple of mobile apps.
The broker uses spread pricing and offers 50:1 leverage, which is the legal maximum permitted in the U.S. It offers more than 70 currency pairs, providing plenty of options. TD ameritrade also allows clients to trade bitcoin futures, though you'll need to get approval to trade futures, and pricing uses the broker's futures scheme.
(charles schwab has purchased TD ameritrade, and will eventually integrate the two companies.)
Pricing: spread
Maximum leverage: 50:1 on major currencies; 20:1 on minors
Currency options: 73 pairs
Forex.Com
Like its name suggests, forex.Com specializes in currency trading (though it trades in metals and futures, too) and it offers a plethora of attractive features. Clients can select the pricing structure that suits them best: spread or commission, or the broker's STP pro pricing, where prices come from global banks and others with no additional markup.
Forex.Com also gives traders access to more than 80 currency pairs, and its success with clients has the broker declaring that it's the no. 1 forex broker in the U.S., in terms of assets held with the broker.
Pricing: spread and commission, depending on account type
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
Ally invest
Ally invest is better known as a low-cost stock broker (and for its especially good prices on options trades), but currency trading really adds some breadth to its offerings. Ally is a good choice for traders just starting out, and it offers more than 80 currency pairs and easy-to-use charting software, including a mobile app.
Ally also allows you to open a $50,000 practice account so that you can see how currency trading works, even if you don't intend to actually trade. Given the difficulty of forex trading, that's a great resource for beginners to try it out.
Pricing: spread
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
IG
IG is a more specialized broker focused on forex, and it's open to american investors. It's a high-powered broker that nevertheless offers many features, such as a demo account, that may help novice traders. The broker offers a web platform, a mobile app and access to metatrader4 and prorealtime platforms.
IG allows spreads as low as 0.8 pips, and says that its pricing is up to 20 percent lower on the euro-dollar pair than the top two U.S. Brokers. The broker also provides an extensive range of charting capabilities across its platforms.
Pricing: spread
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
Robinhood
Robinhood doesn't offer traditional currency trading, but it does bring the slick, easy-to-use interface it's known for to the crypto space. Here clients can trade a range of cryptocurrencies, including some of the most popular. Tradable currencies include bitcoin, ethereum, litecoin and dogecoin, among a total of seven types of cryptos. You'll also be able to get quotes on 10 other digital currencies.
Like its core brokerage that offers free trades on stocks and options, crypto trading is also gratis (free) on robinhood.
Best US forex brokers 2021
The foreign exchange market is more active than any other financial market in the world, with over $5 trillion swapping hands every day. This guide is focused on assisting US traders in finding the best forex broker for their style of trading.
We break down the best us forex brokers for commissions & spreads, trading platforms, execution, and overall quality. All of the top forex brokers we cover are regulated and licensed in the US by the national futures association (NFA) and meet a strict set of criteria, ensuring protection from forex scams.
For a more in-depth comparison of top US brokers, or if you are trading outside of the US, visit our sister site forexbrokers.Com. Our annual FX broker review covers the top brokers for 2020, with over 50,000 words of research and 5,000+ data points spanning 30 firms.
Best US forex brokers 2021
- IG - best overall
- TD ameritrade - currency trading with thinkorswim
- Forex.Com - best for ease of use
- Interactive brokers - best for professionals
As an early pioneer in offering contracts for difference (cfds) and spread betting, IG was founded in 1974 and has grown to be a global leader in the online trading industry. IG is a london-based public company listed on the london stock exchange’s FTSE 250 (LON: IGG). Read full review
- Total forex pairs offered: 91
- Likes: comprehensive research tools and real-time exchange data; broad range of markets, currency pairs, and multi asset cfds (including cryptocurrencies); licensed in major regulatory jurisdictions; competitive commission-based pricing and spreads on forex.
- Dislikes: web platform trading windows must be resized manually to keep the layout organized; forex direct only available to professional traders within EU.
- Bottom line: forex and CFD traders looking to trade a large number of instruments across multiple asset classes, including exchange-traded securities on international exchanges, will find IG offers an extensive range of tradable products on its platforms.
- Visit site
TD ameritrade's desktop trading platform, thinkorswim, offers an impressive combination of both design and functionality. The platform has virtually anything you could want, including live CNBC tv, trade alerts, real-time scanning, and practically every technical indicator under the sun for charting. Read full review
- Total forex pairs offered: 75
- Likes: powerful desktop charting that syncs with mobile; wide array of premium research and trading tools through thinkorswim platform; futures and options trading on forex and bitcoin futures.
- Dislikes: forex only available to US residents; no web-based platform offered for forex; platform complexity may deter beginners.
- Bottom line: for US-based investors and traders, TD ameritrade’s thinkorswim platform is a sophisticated multi-asset desktop experience optimized for securities trading, including off-exchange spot forex and exchange-traded options and futures (including bitcoin).
- Visit site
Forex.Com (gain capital) is known for providing forex traders a well-rounded offering. Like TD ameritrade and interactive brokers, it is also publicly traded and offers fx traders a large variety of trading tools. Beyond offering its own propertiary trading platform, forex.Com also offers metatrader4 (MT4) to customers, making it an ideal choice for investors of all experience levels. Read full review
- Total forex pairs offered: 84
- Likes: licensed in highly regulated jurisdictions; advanced charting capabilities in both desktop and web platforms; platforms feature numerous channels of research content and trading ideas; offers cryptocurrency cfds in the UK, and bitcoin futures in the US.
- Dislikes: MT5 not yet rolled out; ceased business of regulated activities in hong kong.
- Bottom line: FOREX.Com has plenty of options for forex and CFD traders across its regulated offerings globally. With full-feature platforms, diverse trading tools, and comprehensive research, FOREX.Com caters to traders of all experience levels.
- Visit site
Professional currency traders should consider interactive brokers. Interactive brokers is well-known in the US stock and options industry as an active trading broker. IMPORTANT: to trade forex with interactive brokers in the united states, you must be classified as an ECP, "an eligible contract participant is generally an individual or organization with assets of over $10 MM (or $5 MM if trades are hedging)." read full review
- Total forex pairs offered:115
- Likes: regulated in major jurisdictions and publicly traded; extensive range of global markets and asset classes; bitcoin futures trading supported; competitive fees and discounts for high-volume traders.
- Dislikes: retail spot forex only offered to non-U.S. Clients; desktop platform too complex for inexperienced traders; web platform lacks forex charts; monthly minimum activity charges.
- Bottom line: professional traders and highly experienced investors looking for a complete multi-asset forex broker will find interactive brokers offers a comprehensive platform with competitive fees across multiple global financial markets.
- Visit site
Compare US forex brokers at forexbrokers.Com
Compare IG vs TD ameritrade vs forex.Com vs interactive brokers side by side and view an industry-leading comparison based on over 100 different data points.
Read next
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Best online brokers for forex trading in january 2021
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Trillions in currency are zipping around the world, 24 hours a day, five days a week, making the foreign exchange (also known as forex or fx) markets the world’s most active. Fortunes can be won and lost quickly, as brokers routinely let traders borrow heavily to finance their speculations.
If you’re looking to get in on this action, you’ll need a broker who deals in currency, and many of the big names in stock trading simply don’t offer this feature. Because the markets are so different, you’ll also need to evaluate a forex broker on different criteria from what you would use on a stock broker.
Below are some top forex brokers, including a couple that allow customers to trade cryptocurrencies.
Here are the best online brokers for forex trading in 2021:
What to consider when choosing a forex broker
While you may be familiar with many of the brand-name online stock brokers, only some of them deal in forex trading. Instead, a plethora of more specialized niche brokers populate the space, and they may cater to high-volume currency traders looking for every possible edge.
But regardless of which kind of broker you’re targeting, you’ll want to focus on at least a few features that are common to any forex broker:
- Pricing: forex brokers have two ways to price their services: by baking the price into the buy-sell spread or on a commission basis. Spreads are often quoted in pips, or one ten-thousandth of a point.
- Leverage: how much leverage will the broker let you assume? In general, traders are looking for a higher amount of leverage to magnify the moves in the currency market. The level may differ on the liquidity of the currency.
- Currency pairs: A handful of major pairs dominate trading, but how many other pairs (minors, exotics) does the broker offer? The most popular currencies include the U.S. Dollar, the euro, the japanese yen, the U.K. Pound and the swiss franc.
- Spreads: how wide are the broker’s spreads for trades? The larger the spread, the less attractive the trade. Of course, brokers who charge a spread markup will tend to have wider spreads because that’s how they get paid.
Investors looking to buy cryptocurrency may be able to do so through some of the traditional stock brokers such as TD ameritrade or robinhood. These have been noted below, though the trading works differently from regular forex trading as described above.
One downside for american traders is that many top forex brokers are based in the U.K. And simply won’t accept them because of their citizenship. The brokers below are all fine for americans, however.
Overview: top online forex brokers in january 2021
TD ameritrade
TD ameritrade offers a range of tradable products, and currency really rounds out its portfolio. Currency traders are able to use the broker’s highly regarded thinkorswim trading platform, and can also trade on a couple of mobile apps.
The broker uses spread pricing and offers 50:1 leverage, which is the legal maximum permitted in the U.S. It offers more than 70 currency pairs, providing plenty of options. TD ameritrade also allows clients to trade bitcoin futures, though you’ll need to get approval to trade futures, and pricing uses the broker’s futures scheme.
(charles schwab has purchased TD ameritrade, and will eventually integrate the two companies.)
Pricing: spread
Maximum leverage: 50:1 on major currencies; 20:1 on minors
Currency options: 73 pairs
Forex.Com
Like its name suggests, forex.Com specializes in currency trading (though it trades in metals and futures, too) and it offers a plethora of attractive features. Clients can select the pricing structure that suits them best: spread or commission, or the broker’s STP pro pricing, where prices come from global banks and others with no additional markup.
Forex.Com also gives traders access to more than 80 currency pairs, and its success with clients has the broker declaring that it’s the no. 1 forex broker in the U.S., in terms of assets held with the broker.
Pricing: spread and commission, depending on account type
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
Ally invest
Ally invest is better known as a low-cost stock broker (and for its especially good prices on options trades), but currency trading really adds some breadth to its offerings. Ally is a good choice for traders just starting out, and it offers more than 80 currency pairs and easy-to-use charting software, including a mobile app.
Ally also allows you to open a $50,000 practice account so that you can see how currency trading works, even if you don’t intend to actually trade. Given the difficulty of forex trading, that’s a great resource for beginners to try it out.
Pricing: spread
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
IG
IG is a more specialized broker focused on forex, and it’s open to american investors. It’s a high-powered broker that nevertheless offers many features, such as a demo account, that may help novice traders. The broker offers a web platform, a mobile app and access to metatrader4 and prorealtime platforms.
IG allows spreads as low as 0.8 pips, and says that its pricing is up to 20 percent lower on the euro-dollar pair than the top two U.S. Brokers. The broker also provides an extensive range of charting capabilities across its platforms.
Pricing: spread
Maximum leverage: up to 50:1
Currency options: more than 80 pairs
Robinhood
Robinhood doesn’t offer traditional currency trading, but it does bring the slick, easy-to-use interface it’s known for to the crypto space. Here clients can trade a range of cryptocurrencies, including some of the most popular. Tradable currencies include bitcoin, ethereum, litecoin and dogecoin, among a total of seven types of cryptos. You’ll also be able to get quotes on 10 other digital currencies.
Like its core brokerage that offers free trades on stocks and options, crypto trading is also gratis (free) on robinhood.
Learn, practice, and master currency trading online
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Trading forex online. Period. Re-launched with information about learning,understanding, and trading with forex tools and software, we've spent an exhaustive amount of time researching and reviewing content to help you become the best trader or broker that you can be.
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OFXT is here to help you in your path to becoming a forex trader or broker. Our goal is to help you learn, practice, and master the art of currency trading. It's important to understand currency pairs such as the EUR/USD, USD/CAD, GBP/USD, USD/JPY, or other major currencies, and how the economies of each country impact one another. There is a high amount of risk involved in FX trading, for more information, please see our risk disclosure policy. Choosing a forex brokerage, signal provider, or charting software are difficult decisions, so we've established a set of reviews based on a variety of criteria for evaluating their credibility. Foreign currency trading is different from futures, options, or stock trading, and it's important to understand the terminology. We hope you will continue to learn to trade with us, and if you ever have questions, please drop us a line.
Trade with the global forex trading specialist
Why FOREX.Com?
Metatrader
Trade over 500 markets including equities, indices, FX and commodities on the new and improved MT5
Competitive pricing
Maximize your potential with straightforward pricing choices to suit your trading style
Active trader
Earn rebates and one-on-one professional support when you qualify for our active trader program
Financial strength you can depend on
Your FOREX.Com account gives you access to our full suite of downloadable, web, and mobile apps.
Trade on one of the world's most popular trading platforms with access to dedicated support and integrated trading tools exclusive to FOREX.Com.
Leverage our experts
Our global research team identifies the information that drives markets so you can forecast potential price movement and seize forex trading opportunities.
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Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Contracts for difference (cfds) are not available to US residents.
FOREX.Com is a trading name of GAIN global markets inc. Which is authorized and regulated by the cayman islands monetary authority under the securities investment business law of the cayman islands (as revised) with license number 25033.
FOREX.Com may, from time to time, offer payment processing services with respect to card deposits through its affiliate, GAIN capital UK ltd, devon house, 58 st katharine’s way, london, E1W 1JP, united kingdom.
GAIN global markets inc. Is part of the GAIN capital holdings, inc. Group of companies, which has its principal place of business at 135 US hwy 202/206, bedminster, NJ 07921, USA. All are separate but affiliated subsidiaries of stonex group inc.
Forex trading and brokers
The foreign exchange market – also known as forex or just FX – is a decentralized global market for the trading of currencies. In terms of trading volume, this is by far the largest market in the world.
The foreign exchange market is not one specific exchange (such as the new york stock exchange or the london stock exchange). Instead, financial centers around the globe function as hubs or anchors of trading in a network that includes various participants, including large international banks.
The history of foreign exchange trading is very old. As long as there have been different currencies, there have been people wishing to exchange one currency for another. A merchant that traveled from his home to other parts of the world to obtain foreign goods would for instance need to exchange his currency one or more times along the way, both to be able pay for his own needs as he traveled and to make sure he had an accepted currency available when he reached sellers of desirable goods. In major trading hubs, such as capital cities and important ports, professional money changers would be present to cater to these needs and make a profit from the fluctuating exchange rates.
The modern foreign exchange market that we know today emerged in the 1970s, as countries gradually switched from controlled exchange rates to floating exchange rates for their national currency.
FOREX brokers
A FOREX broker is a company that provides retail investors with access to a FOREX trading platform that enables the investors to buy and sell currencies. Most brokers offer a wide selection of different leveraged FOREX products that make it possible to earn high returns from small market movements. The leverage also increases potential loses and leverage trading is a type of high-risk trading.
Your primary goal when comparing FOREX brokers should be to find one which is regulated by a trusted financial institution, and that has a good reputation on the market. You should also compare the spread they charge as well as the overnight fees. A small spread makes it a lot easier to make money. If you want to be able to use a certain FOREX trading platform then you need to make sure that the broker allows you to use said platform. Not all brokers provide access to the same platforms. Metatrader4 is by many considered the best forex trading platform for beginners but other platforms such as ninjatrader and algotrader are also popular.
Characteristics of the foreign exchange market
- Huge trading volume
- High liquidity, especially for the most frequently traded currency pairs
- Trading from 22:00 GMT on sunday to 22:00 GMT on friday.
- Decentralization and geographical dispersion
- Low margins of relative profit
- Using leverage is very common among traders
The interbank market
The interbank market is the top-level foreign exchange market. This is where major banks exchange currencies with each other, either directly or through electronic brokering platforms. The two major platforms are the electronic broking services (EBS) and thomson reuters dealing. Together, they have over 1,000 banks as their clients.
The interbank market is decentralized; there is no specific building that you can visit where the transactions are taking place.
The thee main constituents of the interbank market are the spot market, the forward market and SWIFT.
- The spot marketthis is where currencies are traded for immediate delivery.
- The forward marketthis is where contracts for future delivery is traded.
- SWIFT = society for world-wide internbank financial telecommunications.This is a network used to send and receive information about financial transaction. A majority of the international interbank messages are sent through SWIFT. Data from the year 2015 shows that over 11,000 financial institutions in more than 200 countries and territories use SWIFT.
Currency pairs
The four most frequently traded pairs are:
EUR/USD: the euro and the U.S. Dollar
USD/JPY: the U.S. Dollar and the japanese yen
GBP/USD: the british pound sterling and the U.S. Dollar
USD/CHF: the U.S. Dollar and the swiss franc
Retail foreign exchange trading
Retail foreign exchange trading is a small segment of the foreign exchange market. This segment developed fairly recently, when internet made it feasible to offer platforms for very small-scale forex trading.
Many individuals that are engaging in retail foreign exchange trading do it as a hobby, enjoying the excitement that the trading brings while also – hopefully – making some long-term profits.
If you want to try retail foreign exchange trading, you need to sign up with one of the companies that provide this service, and then make a deposit into your trading account. Many providers will offer you the option of partly trading on credit, where the size of the credit is determined by how much money or other valuables you have in your account. This is known as margin trading or leverage, and it means that even if you just deposit $100 into your account, you can start doing fairly big trades on the platform right away. Naturally, using credit to speculate on the currency market is very risk and you can end up owning the provider much more money than what you deposited.
Background
The first trading platforms for retail forex trading began to appear in the mid-1990s as private internet connections became more widespread than before. In the early days, you had to download the trading software and install it on your computer. Eventually, web-based interfaces were developed where you could trade directly in your web browser without the need to download and install a program.
As technical analysis grew increasingly popular among retail traders, more and more trading platforms began to include charting tools and other useful aids for technical analysis. News feeds are another popular feature in modern platforms, as is automated trading tools. During recent years, social trading has started to catch on, but this field is still in its infancy.
Online forex trading brokers
- Language support: bengali, chinese, english, hindi, indonesian, malay, portuguese, spanish, thai
- Create trading accounts, modify leverage, enable swap-free options, edit and restore passwords
- Make deposits and withdrawals using the most popular payment options
- View your detailed overall or account operation history, apply convenient filters to it and cancel your previous deposit
- Start trading in a compatible trading platform app
- Top up your demo account
- View contest statistics and access your contest accounts
- Activate bonuses and view statistics on active and completed bonuses
get it on
Forex trading accessibility for everyone
Octafx - one of the best forex brokers on the market, for traders all round the world. Octafx offers access to CFD trading, commodity trading and indices trading with award-winning forex trading conditions. As well as access to the forex market, octafx offers a variety of promotions that can help you:
50% bonus on deposit
Negative balance protection
Why choose forex trading with octafx
Octafx forex broker ensures reliable forex trading conditions to provide traders of all skill levels with an opportunity to earn more. This is possible due to:
- No commissions on deposits and withdrawals
- No swaps
- No slippage
- No delays
so, let's see, what we have: trillions in currency are zipping around the world, making foreign exchange markets the world’s most active. At online forex trading brokers
Contents of the article
- Top-3 forex bonuses
- Best online brokers for forex trading in january...
- Here are the best online brokers for forex...
- What to consider when choosing a forex broker
- Overview: top online forex brokers in january 2021
- Forex trading and brokers
- FOREX brokers
- Characteristics of the foreign exchange market
- The interbank market
- Currency pairs
- Retail foreign exchange trading
- Best online brokers for forex trading in january...
- Here are the best online brokers for forex...
- What to consider when choosing a forex broker
- Overview: top online forex brokers in january 2021
- Best US forex brokers 2021
- Best US forex brokers 2021
- Compare US forex brokers at forexbrokers.Com
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- Best online brokers for forex trading in january...
- Advertiser disclosure
- How we make money.
- Editorial disclosure.
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- Editorial integrity
- Key principles
- Editorial independence
- How we make money
- Here are the best online brokers for forex...
- What to consider when choosing a forex broker
- Overview: top online forex brokers in january 2021
- Learn, practice, and master currency trading...
- Forex blog
- Forex tool reviews
- Broker reviews
- Popular
- Would you like to be contacted to receive more...
- Trade with the global forex trading specialist
- Why FOREX.Com?
- Financial strength you can depend on
- Leverage our experts
- Ready to learn about forex?
- New trader?
- Have some experience?
- Want to go deep on strategy?
- Not sure where to start?
- Open an account in as little as 5 minutes
- Try a demo account
- Forex trading and brokers
- FOREX brokers
- Characteristics of the foreign exchange market
- The interbank market
- Currency pairs
- Retail foreign exchange trading
- Online forex trading brokers
- Forex trading accessibility for everyone
- Why choose forex trading with octafx
