The post Best International Forex Brokers by Anna Yen appeared first on Benzinga. Visit Benzinga to get more great content like this.
Benzinga’s favorite international forex brokers are FOREX.com and eToro.
If you’re looking for strong liquidity and low transaction costs, forex is one of the most accessible asset classes for large and small investors alike. The foreign exchange market is a truly international market where traders take advantage of global currency movements. Are you looking to trade forex internationally but unsure of what platforms to use? In this article, we discuss the top international forex brokers in the market that can meet your forex trading needs.
Table of contents
[Show]
9 Best International Forex Brokers
It’s important for forex traders to find a broker that is reliable, trustworthy and offers a wide range of currency pairs. Here are some of the top international FX brokers.
- Best for Beginners: eToro
- Best for All Types of Traders: FOREX.com
- Best for International Forex and CFD Trading: Exness
- Best for MT4 Platform: CedarFX
- Best for Web-Based Platform: Oanda
- Best for Advanced Traders: IG
- Best for No Commission on Deposit and Withdrawal: OctaFX
- Best for Derivatives Traders who use MT4: Axi
- Best for Educational Resources: HYCM
1. Best for Beginners: eToro
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
Best For
- International Forex/CFD Traders
- New cryptocurrency traders looking for an easy-to-use platform
- Traders who want to buy and sell cryptocurrencies on-the-go
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
- U.S. traders currently limited to cryptocurrencies
- Only 15 major coins available to trade
eToro is an international forex broker that has been in operation since 2006. The company is based in Limassol, Cyprus and is regulated by the Cyprus Securities and Exchange Commission (CySEC). They offer a wide range of forex trading services, including spot trading, contract for difference (CFD) trading, social trading and copy-trading.
One of the main benefits of trading with eToro is its user-friendly trading platform, which makes it ideal for beginner traders. The platform has a modern interface, making the process of executing trades and managing your account simple and straightforward. Additionally, their copy-trading feature allows you to view and copy the trades of other successful traders on the site.
Pros
- Simple easy to use platform
- CopyTrader feature allowing new traders to copy the same strategies used by professionals
- Virtual demo account
Cons
- High non-trading fees
2. Best for all Types of Traders: FOREX.com
FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.
Best For
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
FOREX.com is a top-tier forex broker founded in 2001 and has offices in New Jersey, London and Tokyo. The company is regulated by several financial regulatory authorities, including the National Futures Association (NFA) and Commodities Futures Trading Commission (CFTC) in the United States, the FCA in the U.K., the JFSA in Japan and IIROC in Canada. The broker offers trading in various financial instruments, including over 80 currency pairs, cryptocurrency pairs, contracts for difference (CFDs) on indexes, metals, energy, commodities and individual stocks.
FOREX.com provides several different trading platforms, including the Advanced Trading Platform with integrated trading strategies, MetaTrader 4 and 5 and proprietary web and mobile platforms. The company has a minimum deposit requirement of $100 and offers customer support through designated phone numbers in the countries where it has a presence. FOREX.com also provides educational resources and video tutorials to help novice traders get started.
The broker requires a minimum deposit of $100 that can be made via debit card, credit card or bank transfer. Withdrawals occur within 48 hours of the original request and funds are returned to the originating bank or credit card account. FOREX.com offers novice traders an extensive FAQ section and video tutorials on how to use its trading platforms. Customer support is provided by designated phone numbers in the countries where the firm has a presence.
Pros
- Large selection of market options
- Regulated by reputable agencies such as the NFA, CFTC and FCA
- Easy-to-navigate platform
- TradingView advanced charting is available on the Web Trader
Cons
- No MetaTrader 5 platform for U.S. traders
- Less-extensive educational resources for American traders
3. Best for International Forex and CFD Trading: Exness
securely through Exness’s
website
Exness bills itself as a trading platform that offers you better than market conditions on a range of assets, most notably forex and CFDs. You can access markets around the world, start with a very low minimum deposit, manage your account on your desktop or mobile app and easily diversify your portfolio with these unique financial instruments.
Best For
- International Forex and CFD tradin
- Low barrier to entry
- Unlimited leverage
- Instant deposits and withdrawals
- CFDs can be very risky
Exness offers traders a place where they can get the best market conditions for forex and CFD trading. The platform also offers unlimited leverage, fast deposits and withdrawals. There’s a mobile app that makes it easier to get your trading done when you walk away from your desktop, and you can remain as active as you need to ensure that your portfolio is as strong as it can be.
You can choose from a Standard or Pro account depending on the spreads you’re looking for and access that you need. There are several trading instruments that you can choose from, especially with profitable forex pairs and CFDs that are not always available to traders on every platform.
Plus, Exness is a good option for scalpers and algo traders who want to join a platform that was designed for professionals such as themselves. This means that you can much more easily access the forex sphere so that you can add to your portfolio and move a significant part of your portfolio to this platform.
Pros
- Choosing your account type helps you get into the markets where you prefer so that you can save money or get the volume trading support you need
- Scalpers and algo traders can use this platform to make the most of their strategies
- While CFDs are risky, they can also be a unique way to diversify your portfolio
Cons
- CFDs can be extremely risky, and traders should be careful with their investments, only spending money they can afford to lose
4. Best for MT4 Platform: CedarFX
Billing itself as the world’s 1st eco-friendly broker, CedarFX makes it easy to trade and give back to the planet. You can choose a 0% Commission Account or an Eco Account — or open multiple accounts to meet all your needs.
CedarFX offers access to a wide range of tradable securities, including stocks, futures, major and exotic forex pairs, cryptocurrencies and more. Though CedarFX could introduce a few additional educational resources, the broker remains a unique option for traders invested in giving back.
Best For
- Forex investors
- Investors interested in 0% commission or eco conscious trading
- Investors looking for 24/7 customer service
- Allows users to offset their carbon footprint
- 0% commission investing
- Offers demo account access
- 24/7 customer service available through live chat
- Eco Account Option (10 trees planted for each lot traded)
- Fast deposits/withdrawals with Bitcoin
- Limited number of educational resources for new investors
A broker located in St. Vincent and the Grenadines, CedarFX is not regulated, although the broker is required to follow all the laws of the country where it’s domiciled.
CedarFX gives traders direct access to global financial markets, with over 170+ tradable assets available through MetaTrader4. You can trade forex, crypto pairs, stocks, indices and commodities through one platform.
CedarFX offers excellent support and unlimited opportunities to practice your strategy with the MT4 platform before trading using deposited funds with its free demo accounts.
Pros
- Zero commission on investment
- Access to a demo account
- Fast Bitcoin deposits and withdrawals
- Tight spreads
- Wide range of financial instruments
Cons
- Lack of regulation
- Only offers a few options for depositing and withdrawing funds
- Few educational materials available to new investors
5. Best for Web-Based Platform: Oanda
OANDA offers commercial and standard access to the forex market, with over 70 currency pairs to trade. OANDA’s platform is comprehensive, offering a wide range of indicators and charting tools for experts as well as a simple and intuitive layout that’s perfect for beginners.
You won’t find retirement savings or stock trading on OANDA — the platform doesn’t offer any type of trading beyond the forex market. However, the broker does forex trading especially well — though it could stand to offer more in the way of customer service and lower fees.
Best For
- New forex traders looking for an easy-to-use platform
- Mobile traders who need a comprehensive on-the-go offering
- Experienced forex traders who seek a wide selection of charting tools, indicators and currency pairs
- Over 70 unique currency pairs to trade
- Comprehensive and easy-to-understand platform
- Mobile platform improves upon the desktop version
- Only forex trading available
- No retirement accounts available
Based in San Francisco and New York City, Oanda was established in 2001. Oanda is one of the world’s largest forex brokers and has a significant international presence with additional offices in London, Singapore, Sidney, Tokyo and Toronto. The broker is overseen by the NFA and CFTC in the United States, the IIROC in Canada, the FCA in the U.K., the JFSA in Japan and the Monetary Authority of Singapore (MAS).
Oanda is an electronic communications network/straight-through processing (ECN/STP) broker. It offers leverage of 100:1 to clients in Australia and New Zealand, 50:1 to U.S. clients and 30:1 to clients based in the EU. The broker accepts U.S.-based clients and has a market of over 70 currency pairs. Oanda offers CFDs on indices, shares, metals, energy products, commodities and German government bonds.
Platforms available at Oanda include the MetaTrader 4 and 5 platform, proprietary desktop and web-based platforms that integrate TradingView charts and the Oanda API for automated trading. The award-winning broker has no minimum deposit requirement to open an account, and its website is available in 10 languages.
Pros
- Best user-friendly trading platforms
- Excellent research tools
- Daily analytical updates and excellent market research articles
- Social copy trading
Cons
- Offers only CFDs and FX
- No account protection for clients in the United States
6. Best for Advanced Traders: IG
IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.
Best For
- New forex traders who are still learning the ropes
- Traders who prefer a simple, clean interface
- Forex traders who trade primarily on a tablet
- Easy-to-navigate platform is easy for beginners to master
- Mobile and tablet platforms offer full functionality of the desktop version
- Margin rates are easy to understand and affordable
- Access to over 80 currency pairs
- U.S. traders can currently only trade forex
- Customer service options are lacking
- No 2-factor authentication on mobile
IG is a comprehensive FX broker that offers full access to the currency market and support for over 80 currency pairs.
The broker only offers forex trading to its U.S.-based customers, and the brokerage does it spectacularly well. Advanced traders will revel in the platform’s selection of indicators and charting tools, and its margin rates are easy to understand.
IG’s mobile app continues its commitment to simplicity. It offers full trading capabilities in a streamlined, powerful platform. IG is also one of the few forex brokerages offering a native tablet interface on both iOS and Android platforms.
Pros
- Easy-to-navigate platform
- IG provides comprehensive educational resources and user-friendly research tools
- Mobile and tablet platforms with same functionality as the desktop version
- Regulated
- Over 80 currency pairs are available
Cons
- High CFD fees for shares
- Poor customer support
- ; No account protection for U.S. clients
7. Best for No Commission on Deposit and Withdrawal: OctaFX
get started
securely through OctaFX’s
website
OctaFX is a forex trading broker that offers a wide range of features, including real-time market data, advanced order types, and live support. The broker also has an intuitive user interface and an extensive range of tools to help traders make informed decisions.
Overall, OctaFX is a well-rounded forex trading broker that provides everything needed to become a successful trader.
Pros
- Forex, stocks, CFDs, and crypto are available to trade
- Minimum initial deposit is only $25
- Low trading fees
- Offers a demo account
Cons
- Lack of trading instruments provided
- Only 40 trading asset classes
- Stop loss order feature is unavailable
8. Best for Derivatives Traders Who Use MT4: AXI
Founded in 2007, the formerly named AxiTrader launched the Axi brand in 2020. Today the Australian forex and contract for differences (CFD) broker services over 60,000 clients in 100 countries across the globe.
You don’t need a minimum deposit to open an Axi account and start trading. The CFD trading platform has a free demo account that you can use to try your hand at trading. You will have $50,000 in virtual currency to safely trade and hone your skills.
Axi is a fully digital and user-friendly forex and CFD trading broker operating on the MetaTrader4 (MT4) platform, a trading platform that connects to brokers. Axi offers user education and a copy trading facility while using artificial intelligence (AL) and machine learning (ML) to coach users on improving trades.
Best For
- Derivatives traders who use MT4
- User-friendly MetaTrader 4 platform
- Copy trading to learn from professional traders
- Economic calendar with country and category filters for news of economic affairs and economic indicators from across the globe
- Good educational material including a demo account, tutorials and videos
- Advanced analytics driven by AI and ML
- Customer service 24/5
Axi, formerly known as AxiTrader, is a trading platform that allows users to trade CFDs in a safe environment. The platform is based on MetaTrader 4 and includes features such as copy trading, educational tools, AI and machine learning tools.
Axi offers trading in a wide range of assets, including over 70 forex pairs, stocks, indices, precious metals, oil, commodities and cryptocurrencies. The company has low trading fees and no deposit or withdrawal fees, although inactive accounts are charged a $10 monthly maintenance fee. Axi also offers a demo account with $50,000 in virtual currency to allow users to practice trading without risking real money.
Pros
- No fees for deposits or withdrawals
- Digital-only account opening
- Negative balance protection
- Low forex fees
Cons
- Limited research tools
- Demo account available for just 30 days
9. Best for Educational Resources: HYCM
HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.
HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service.
Best For
- Investors who want a customizable fee schedule
- Traders comfortable using the MetaTrader platform
- Islamic traders who need swap-free accounts that don’t build interest
- Mobile app with a simple trading experience
- Wide range of currency pairs available
- Excellent selection of educational tools
- Not currently available to traders based in the U.S.
HYCM (Henyep Capital Markets) is an international forex and CFD broker. HYCM offers trading in various financial instruments, including currency pairs, commodities, indices, cryptocurrencies, ETFs and metals. The FCA, CySEC, CIMA and DFSA regulate HYCM international brokers. The company offers MetaTrader 4 and MetaTrader 5 platforms and a proprietary web-based platform. HYCM provides various educational materials and training resources for traders, including webinars. It offers several account types to suit the needs of different traders, including standard, VIP and Islamic accounts.
Pros
- Wide range of trading financial instruments
- Outstanding educational materials
- User-friendly platform
Cons
- Inactivity fee
- No U.S. clients
- CFDs on cryptocurrencies only for offshore entities (Cayman Islands and SVG)
Trading Forex Internationally
The NFA is a self-regulatory organization that regulates U.S. derivatives, including the foreign exchange market. It imposed limits on the maximum leverage allowed on forex positions for U.S.-based forex traders, though the exact limits vary depending on the currency pair. As a result, many international forex brokers stopped accepting clients from the U.S. Also, because of the restrictions, international forex brokers increased in popularity relative to American brokers because they typically give traders better terms than U.S.-based forex brokers.
For example, forex brokers in the United States only allow a maximum leverage ratio of 50:1, while some international brokers offer client leverage up to 500:1 on major currencies. This high amount of leverage, while extremely profitable when you’re on the right side of the market, could be disastrous if you hold a losing position, especially if you have limited capital.
Another example is the FIFO regulation. FIFO stands for “first in, first out,” and this rule requires you to liquidate positions in the same currency pair in the order they were established instead of choosing which opposing transaction to liquidate.
New U.S. legislation also banned hedging a forex position by taking an opposing position in the same currency pair as one already established. Doing this means you effectively hedge the original position and can trade out of both sides individually, which is no longer allowed for U.S.-based forex traders.
Do International Forex Brokers Accept U.S. Clients?
If you’re U.S.-based and trade forex through an international broker licensed in the United States, your account will be subject to CFTC and NFA rules and restrictions. Regardless of the amount of leverage or other features offered by the international broker, you must adhere to the 50:1 U.S. leverage limit, the FIFO rule, the no-hedging rule and any other relevant U.S. forex account restrictions.
But just because you live in the United States doesn’t mean you can’t trade forex.
Although many international brokers don’t accept U.S. traders because of the additional regulations, several brokers still service the U.S. client base. Many top-tier forex brokers, such as FOREX.com or IG, are based in the United States and also fully comply with the relevant regulations of the NFA and the CFTC.
Keep in mind that when a forex broker lacks oversight from a reputable financial regulatory agency, you run a considerable risk when you open an account with it. You could lose your entire deposit without even making a trade.
What Makes the Best International Forex Brokers?
International forex brokers that offer their services to U.S. clients tend to be the largest and best capitalized since the process of registering and complying with CFTC and NFA regulations requires a significant initial investment and cash reserve amount. Keep in mind that not all forex brokers are created equal, so make sure you carefully consider your needs before you open an account.
The best international forex brokers give traders an easy platform to navigate this highly traded market. One factor that sets the best international forex brokers apart is regulation. Choose a broker regulated by a reputable financial authority, such as the U.K.’s FCA or the NFA in the U.S. This process ensures that the broker is held to high standards of conduct and follows strict rules and procedures to protect client funds.
Another important factor to consider is the trading platform. Reputable forex brokers will offer a user-friendly and reliable trading platform suitable for traders of all levels of experience. Benefits may include advanced charting tools, customizable layouts, and the ability to execute trades quickly and efficiently.
The best forex brokers also offer customer service in multiple languages to accommodate international traders. They also provide educational resources and support to help traders improve their skills and knowledge.
Maximize Your Trading Success: Choose the Best International Forex Brokers
Finding the best international forex brokers can be a challenging task given the many choices available in the market. By considering factors such as regulation and trading options, you can select a reliable and broker well-suited to your trading goals. With the right forex trading platform, you can access the global forex market and benefit from tools and resources that prepare you for the world of forex trading.
Frequently Asked Questions
Who is the biggest forex broker in the world?
This metric can be ranked differently based on various criteria, such as trading volume, number of clients and regulatory status. Some of the largest forex brokers in terms of trading volume and market share include IG Group, IC Market, Oanda, CMC Markets and FOREX.com.
Which country has the most forex traders?
It is difficult to determine which country has the most forex traders because there is no central data on the number of traders in each country. Some countries with the largest forex markets include the United States and the United Kingdom.
Which app is best for international trading?
Different forex apps may better suit traders because of needs, preferences and strategies. Research and compare different apps to find one that meets your needs and fits your trading style.
Related content:
The post Best International Forex Brokers by Anna Yen appeared first on Benzinga. Visit Benzinga to get more great content like this.
