Find the Best Online Forex Brokers of February 2024
Ready to trade safely? Since 2015, TopRatedForexBrokers.com has helped over 635,000 new traders find the best online forex broker. To do this, our experts have reviewed over 200 forex brokers, focusing on over 200 criteria points.
Select your trading experience level and your location from the drop-down menus below to generate a list of the best forex brokers for you.
Why use TopRatedForexBrokers?
At TopRatedForexBrokers, we have one goal and that is to bring you relevant and accurate information so that you can choose the best forex broker for your needs. Here’s why you can trust our services:
Our experience means that we know exactly what you need from a forex broker, and which brokers deliver it.
Our reviews allow you to select the best forex broker for you, based on what’s most important to your trading activities.
Our industry insiders and news reporters bring you educational guides, up to date market analysis, and more.
Who we are
Our team is comprised of professional traders with extensive experience in the forex market. We have been trading for over 10 years and have helped over 600,000 readers to find the most reliable forex broker for them.
So, why do we do it? For starters, we were once in your position. As new traders, we were confused by the sheer number of forex brokers around and we struggled to understand the fees and the jargon that brokers use in their terms and conditions. We’d also heard horror stories (and experienced a few ourselves) of seemingly legit forex brokers who turned out to be less genuine than they appeared. We knew there had to be a better way.
After having gained several years of trading experience, we developed a reliable way of testing brokers that gave us consistent results. We’d also started receiving questions from other traders. Which brokers do we prefer? Which brokers are the very best? How can you tell?
And so, TopRatedForexBrokers was born.
Our mission became to share our foolproof methodology with everyone so that you can access all the information you need to select a trusted forex broker. We also wanted to make forex trading accessible to all by offering transparent and clear guides written by industry experts.
We’ve now been doing this successfully for over 5 years.
We regularly refine our process to make it even better, paying attention to new products, industry developments, and regulatory rules. We also monitor all of our recommended brokers to ensure they’re continuing to meet our standards and we also listen carefully to our readers.
We are no longer a single team of experts, but a community bolstered by thousands of satisfied traders worldwide.
Learn how our tested methodology brings you the best forex brokers
Our broker ranking scores are calculated by considering over 200 criteria points in 10 key areas. These areas are weighted, based on our industry experience and user feedback, to ensure that we only ever recommend exceptional, trustworthy brokers.Our Methodology
What is forex trading?
What is forex trading?
Forex trading involves the purchase and/or sale of currencies. Just like with stocks, you buy a currency and then sell it when its value has increased or vice versa. It sometimes might seem a little more difficult because currencies are traded in pairs, which means you will be using one currency to purchase another. So, if you are trading EUR/USD, for example, you will buy EUR for USD.
In binary trading, you are basically betting that the underlying asset will go either up or down over a certain period of time. The only way you can make a profit is if you’re right. If you’re wrong, you lose. The profit is also fixed.
Conversely, in forex trading, you can still make a profit even if you are partially right. So, with binary trading, if you bet on the fact that the EUR/USD will rise over 1.3250 over the next three days, even if it rises continuously but experiences a momentary drop to below 1.3250 precisely at the moment when your trade closes, you’ve lost. With forex trading, you can exit the market the moment you see the trade starting to go in the opposite direction and still make a profit.
What are the different types of forex brokers?
To ensure that you are choosing the safest forex broker for your needs, it’s important to understand the different types of brokers that exist.
There are three main types, namely no dealing desk brokers, market makers, and ECN brokers (electronic communications network).
No dealing desk
This type of broker, also referred to as an NDD broker, does not have a dealing desk, which means that they provide their clients direct access to the interbank market, i.e. where the big providers trade, such as banks, hedge funds, mutual funds, etc.
What the NDD broker does is pick the best offers from the various providers, add a spread so they can make a profit, and then present you with the final offer.
ECN brokers are also NDD brokers, but they are brokers who connect traders directly with other participants in the electronic communications network. Thus, you will be trading directly with banks, hedge funds, and other retail traders without the addition of a spread. Instead, you pay the forex broker a commission.
Market makers are also known as dealing desk brokers. They generally take the other side of a trade without providing your direct access to the interbank market. In other words, they put up a rate they’re offering, and you can choose to take it or not. In other words, you’re trading with the broker directly, rather than the broker being simply an access platform to a wider market.
Are forex brokers safe?
Are forex brokers safe?
You can be certain that every broker recommended by the TopRatedForexBrokers team is completely safe. This is why we are so rigorous in our review process and do everything we can to ensure that every broker we recommend meets our stringent requirements.
We check brokers not only to make sure that they are above board in their dealings with customers but also that their security is more than sufficient to protect your data and your money. This is precisely why we will never recommend an unlicensed broker.
Understanding regulatory bodies
Different countries have different regulatory bodies that ensure international forex brokers abide by fair and ethical business practices.
These organizations institute different rules, programs, and services that are meant to ensure traders are safe, while also assisting the brokerage firms themselves to maintain full compliance with the regulations that govern trading in the country where they are located.
So, these regulatory bodies make sure that you, as a trader, are treated fairly and can be certain you are safe when working with any of their member brokers.
Unlike with other markets, though, forex brokers are not obligated to get a license. They can still operate without one. However, we don’t recommend brokers without licenses because it throws up a huge red flag.
If they are above board and are only interested in providing great services, why haven’t they obtained their license? Is it because their services and practices aren’t good enough for them to get one?
Even if they do have a license, you should consider that some regulatory bodies are more forgiving than others. For example, it’s quite likely that the BVI Financial Services Commission in the British Virgin Islands is not going to be quite as strict as the National Futures Association in the United States.
Below is a list of countries and the associated forex regulatory bodies:
How to sign up with a broker
If you are opening a demo account, you’ll only have to input your email address, name, and provide a password. If you’re opening a live account, things are a little more complicated.
First, you will have to fill in some personal information, including your address and phone number, your net worth, your income, how much you expect to trade, and more.
In some cases, you will have to answer some questions about forex trading so the broker can determine how much you know. If you can’t answer, or get the answers wrong, some legit forex brokers will refuse to open a live account for you.
Once you get past this stage, you will have to provide proof of identity and address, which usually means uploading two official documents, one of which must include your name and address, while the other must include your name and photo. These can be your passport, national ID card, driver’s license, and/or utility bill. For example, you can upload your driver’s license and your national ID card, or your national ID card and a utility bill.
The broker will then check your documents and if everything is in order, they’ll open the account for you. At this point, you can make a deposit, and once the funds become available, you can start trading.
The benefits of demo trading
Demo trading is basically when you trade with virtual money. Everything else on the demo account is identical to a live account in terms of how you trade, except you use virtual money.
This is a great way to learn how to trade forex hands-on. It’s also an excellent way for you to test different strategies to see how effective they are.
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Our experts test all of our top-rated forex robots and EAs thoroughly, to ensure that we only ever recommend the best of the best. They download the robot, use it to make trades, assess its performance, and weigh up its pros and cons so that you don’t have to. The reviewing process considers the robot’s backtesting data, live trading results, and price. Our expert team also inspects the robot’s compatibility with popular trading platforms and asset classes, as well as what limitations the robot may have. This allows them to give an unbiased and accurate verdict. Discover the best forex robots and EAs now or read our ultimate guide to auto-trading to learn how they could help to improve your trading results.