Sunday, May 26, 2024

Best Forex Brokers of 2021 — Top-5

The first steps in trading start with selecting a broker. The broker is an intermediary in the financial markets. And the effectiveness of trading will depend on its reliability, quality, and order execution speed. There are hundreds of brokers working on Forex, each of which has its advantages and disadvantages. Sometimes even professionals find it difficult to understand the competitive advantages of a particular company.

To choose a reliable broker, you need to learn the offer and trading conditions, such as:

  • the presence of explicit and hidden commissions, the levels of the spread;
  • conditions for replenishment and withdrawal of money;
  • availability of trading instruments you are interested in;
  • any restrictions on trading strategies, etc.

It will take more than one day to test the capabilities of all brokers and their trading conditions on a demo account. Therefore, you can take a simpler path by studying the section “Best Forex Brokers – Top 5 for 2021”.

The list of the best Forex brokers is an independent objective rating created by financial experts based on the analysis of several dozen proprietary criteria and feedback from active traders. When compiling it, the responsibility of brokers to fulfill their obligations, the transparency of trading conditions, the speed of order execution, functionality, the availability of unique technical analysis “chips”, the professionalism of the support service, the absence of problems with the replenishment and withdrawal of funds and much more are taken into account.

The main task of the Traders Union is to help you save time searching and analyzing dozens of brokerage companies by ranking them and offering you the best ones.

Top 5 Forex brokers with licenses

One of the criteria for choosing a broker is the availability of a regulator’s license. A regulator is an independent financial institution, most often under the control of central banks or other government authorities.

A broker’s license means that:

  • The company meets the requirements of the minimum share capital and maintains it at the required level. The amount of capital is determined by each regulator. 
  • The company pays annual fees that can be used to protect the interests of traders.
  • The company is annually under an external independent audit, which confirms its financial solvency and the ability to meet obligations to its customers.
  • The interests of traders are protected by the regulator. In the event of a conflict of interest and the inability of the trader to resolve the issue with the broker’s support service, with help from Traders Union, or independently, the regulator acts as a third independent party. Most often, controversial issues are resolved in favor of traders.
  • Account deposits are protected by the principle of segregation. Traders’ money is separated from the broker’s account for operational work. The broker cannot use its client’s (i.e., the trader’s) money for its own purposes. The principle of account segregation is strictly monitored by the regulator.

The more licenses a broker has, the better because it is operating under the auspices of multiple regulators. The best European regulators are FCA (Great Britain), BaFin (Germany), and CySEC (Cyprus).

Below we have selected for you the best brokers of 2021 that are licensed by the world’s leading regulators.

Rating Brokers Regulators Minimum deposit
1 FxPro FCA, CySEC, FSCA, SCB $100
2 Admiral Markets UK FCA, CySEC, ASIC $200
3 XM Broker ASIC, IFCS, CySEC $5
4 AvaTrade ASIC, FSA, FSCA $100

How to choose the best broker

Broker selection criteria:

  • Transparency, understandable trading conditions, and the availability of regulatory documents for the execution of trading operations. Also, an offer, rules for calculating a swap, contract specifications, conditions for order execution, etc.
  • The minimum deposit to leverage. With a deposit of $10 with a leverage of up to 1:1000, you will be able to open trades with a minimum volume of 0.01 lot, without violating the rules of risk management. It will be better if the broker offers cent accounts.
  • Spread level. The lowest spread is floating on ECN accounts. But on accounts of this type, there is a fixed commission for each lot.
  • The availability of the MT4 platform. Hundreds of free proprietary indicators, scripts, and advisors have been written for it. It’s useful for professional trading and gaining experience.
  • Terms of replenishment and withdrawal of money. A transparent broker should not have any restrictions on the number of withdrawal orders, and there should be no commissions. Some brokers are ready to compensate traders for commissions of payment systems.
  • No restrictions on the use of strategies such as Scalping, algorithmic trading, and hedging support.
  • A wide range of assets from currency pairs and cross rates to ETFs and cryptocurrencies.
  • Regulator’s license.
  • Support service that responds instantly and competently to any questions.
  • The availability of additional “chips” such as passive investment tools, affiliate and bonus programs, own unique developments like scripts, and indicators, and applications; and
  • The opportunity to take part in tournaments on demo accounts and get an initial deposit to a real account without replenishing it.

When choosing a broker, be guided by the independent rating and reviews of traders on the Traders Union website.

Choose for yourself from the Top 5 brokers from the presented list. Test their capabilities and trading conditions on demo accounts, and select the broker you are most comfortable working with.

Forex brokers for beginners

A broker for a novice trader is a company that provides the most understandable and loyal trading conditions, information assistance, and analytical support.

Criteria for choosing a broker for novice traders:

  • Demo account availability. Almost all brokers have one, but there are exceptions.
  • The minimum deposit is from 1-10 USD with a leverage of at least 1:1000 which allows you to open trades for almost all assets.
  • Availability of additional tools like free signals, a Market Sentiment indicator, an economic calendar, calculators of margins, volatility, etc.
  • The availability of a separate educational database, which would have a theoretical basis for technical and fundamental analysis, and able to work on the platform, reviews, webinars, etc.

We recommend several companies, with a small minimum deposit that are optimal for beginners: Admiral Markets UK – $1, XM Broker – $5, FXTM – $10.

Forex brokers for investors

A broker for investors is a company that, in addition to tools for active trading, also offers options for passive earnings. The investor is not directly involved in trading but invests with the help of broker technologies and professional management traders.

Brokers for investors include companies that provide the following services:

  • Social trading. This is a service for copying live transactions. The investor selects one or several traders and automatically copies their transactions to his account. Thus, he can form an investment portfolio and attract sub-investors to it, earning on commissions.
  • PAMM accounts. This is a trust management service with a built-in risk management mechanism. The investor transfers money to the trader-account manager for supervision, and the trader receives a percentage of the investor’s profit for his services.

For you, we have selected several companies with attractive trading conditions and investment mechanisms: RoboForex – CopyFx, InstaForex – PAMM accounts and a service for copying deals, FxPro – RAMM.

How to open an account with a Forex broker through Traders Union

Do you want to save on the spread and receive compensation for the brokerage commission for each trade, regardless of its outcome? Then follow these steps:

  1. Register on the Traders Union website. It’s free. To register, you need to enter your phone number and email.
  2. Go through verification – it is identical to the broker verification procedure, which you will also need to go through in the future.
  3. Using the affiliate link, go to the website of the broker you are interested in and open an account.
  4. Enter the number of this account in the “Accounts” section of your personal account on the Union’s website, wait for its confirmation.
  5. Replenish your deposit, open trades, and receive spread compensation for each trade on the Traders Union balance.

The rebate service is also valid for investors in PAMM accounts and social trading. Money from the Traders Union balance can be transferred to a trader’s account with a broker or withdrawn to payment agencies.

Advantages of working with brokers through Traders Union

By joining the Traders Union, members get the opportunity to save on every trade. And you also get access to analytical tools, reviews, and legal support. And it’s all free!

Traders Union Advantages in Numbers
Total rebate payments Over USD 10,000,000
Rebate payment amount Up to 100% of an affiliate reward
Number of traders in the Union More than 300,000 traders
Number of approved brokers More than 200 brokers
Legal support for clients Free

Conclusion about the Top 5 Forex brokers

Forex is a world of new earning opportunities that anyone can discover. To do this, you only need a little money for a starting deposit, perseverance, emotional stability, and a desire to learn something new every day. There is no easy money here, trading is hard work that requires a constant gaining of experience and improving your trading knowledge. But anyone can become a professional.

Start your way in trading with the best brokers who are ready to offer you the best trading conditions, high order execution speed, maximum responsibility, and assistance with your questions. Use the opportunity to receive additional income from Traders Union for every trade, regardless of its outcome.

Happy trading and investing to you!

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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