As far as the world of finance goes, forex trading is among the more beginner-friendly options. You need only sign up for and fund an account with a legitimate online broker to get started. Finding the right forex broker to trade with depends on a number of factors, including the trader’s experience and knowledge level. We’ve compiled a list of the top best forex trading brokers:
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Despite of Ally Invest’s widespread popularity as a low-cost stock broker, the company’s offerings would benefit greatly from the addition of currency trading. With more than 80 currency pairs and user-friendly charting software, Ally is a great option for novice traders. Even if you have no intention of really trading, you may get a feel for how currency trading works by opening a $50,000 practice account with Ally. Given the complexity of the forex market, that’s a fantastic starting point for novice traders.
IG is a broker that specializes in foreign exchange and accepts clients from the United States. It is one of the best forex trading brokers that provides numerous tools, including a demo account that could prove useful to inexperienced traders. The broker provides several trading options, including a web interface, a mobile app, and integration with MetaTrader4 and ProRealTime. Spreads from IG can go as low as 0.8 pips, and the company claims it can undercut the top two U.S. brokers by as much as 20% on the Euro-Dollar. The broker’s platforms also offer a wide variety of charting tools.
Interactive Brokers is the broker of choice for many serious and professional traders because of its low fees and robust trading platforms. Traders of foreign exchange (Forex) won’t be let down by the sophisticated trading tools and real-time quotes provided by many of the world’s top forex-dealing banks. Hedge your currency risk while trading stocks on foreign exchanges by adding an FX order to your trade. In 2021, Interactive Brokers also allowed for the trade of a small amount of cryptocurrencies. You’ll be able to make profitable trades in Bitcoin and Ethereum, two of the most widely used cryptocurrencies.
Spotting a Forex Scammer
If a forex investment opportunity or broker claims to offer a surefire way to generate money, you may be sure you’ve been had. Forex trading is an option, and it can be profitable, but it shouldn’t ever be advertised as a quick way to amass a fortune. However, there are many types of scams operating in the Forex market. Forex scammers are easily spotted because they promise unreasonably high returns for very little investment. To begin, remember that there’s no such thing as a failsafe. If there existed, market participants would never disclose it to outsiders. Especially to inexperienced traders, some of these deals may seem rather tempting. However, the proverbial “free cheese” can only be found in the mousetrap. Keep in mind that reputable brokers will always be willing to show their credentials. You can call a regulatory authority to request a list of regulated companies and a list of cases initiated against regulated organizations if you suspect a Forex broker of lying about their regulatory status. This will help you to know how to spot a forex scammer?
The Pros of Forex Trading
Some of the benefits of trading on the foreign currency market are highlighted in the article of “The Week:”
- Foreign currency trading has high leverage because the net value of exchanging currencies at the market rate is zero. This means that a trader can hold a relatively large position with a relatively small margin deposit. This raises the stakes but also affords you the opportunity to profit from even slight fluctuations in the exchange rate.
- The major currency pairings on the forex market are always well-traded because of the market’s strong liquidity and the fact that it is the largest financial market in the world. Large transactions can be carried out in certain pairings at any moment during trading hours.
- The foreign exchange market is available for business 24 hours a day, five days a week, including all significant U.S. holidays. During market hours, as per in the article, this ensures that there will always be a chance to make a trade.