9.55
/ 10
9.08
/ 10
8.60
/ 10
8.35
/ 10
8.28
/ 10
8.00
/ 10
6.85
/ 10

Platform & Tools

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Platform Ease of Use
100%
95%
70%
70%
70%
80%
60%
Mobile App Functionality
100%
80%
90%
90%
85%
65%
70%
Technical Indicators
355
120
56
56
22
58
30
# of Currency Pairs
120
86
52
52
10
71
34
Forecasting Tools
Best Forex Brokers: The Best Online Forex Broker
The best forex brokers provide traders with a platform, tools and educational resources to make fast-paced foreign currency trades.

Trading Costs

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Minimum Commission (per order)
$1
$2
$0
$0
$1.80
$0
$0.80
EUR/USD Spread
1.2
No Markup
1.8
2.1
No Markup
1.3
1
USD/JPY Spread
1.8
No Markup
1.6
1.8
No Markup
1.5
1.8
GBP/USD Spread
2
No Markup
2.2
2.9
No Markup
2
2.2
USD/CAD Spread
2.3
No Markup
2.3
2.2
No Markup
1.8
1.8
Opening Deposit
$2,000
$10,000
$250
$2,500
$250
$0
$5,000
Minimum Trade Lot
1,000
1,000
1,000
1,000
0
0
10,000

Education & Support

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Investor Education
75%
85%
80%
80%
95%
60%
50%
Platform Tutorials
100%
75%
90%
90%
65%
60%
50%
24/5 Customer Support
Live Chat

Best Forex Brokers

Wagering on the Forex Market

Forex, or FX, trading is a more advanced type of investment that is best suited for experienced traders. If you’re well versed in day trading or options trading, forex may be a challenge worth accepting. Forex trading can be another way of diversifying your portfolio, but it carries more risk than other types of investments.

Due to the Dodd-Frank act, forex brokers operating in the U.S. must be certified with both the National Futures Association (NFA) and the U.S. Commodity Futures Trading Commission (CFTC). These regulations restrict the amount of leverage available to traders. All U.S. brokers can offer a maximum leverage of 50:1 for most currency pairs, with some more risky currencies having a maximum of 20:1. Because of this, many forex brokers no longer offer accounts to U.S.-based traders. This review only considers brokers that allow U.S. accounts. If you’re interested in exploring foreign options, our international forex brokers site may be of help.

The brokers in our review were evaluated on the quality of the trading platform they offered, the ease of use of each platform and the tools it provides. We also considered the commissions and other costs as well as their educational and customer service offerings.

Best Forex Brokers-Our Picks

Best Overall-TD Ameritrade

TD Ameritrade is our pick for the best forex broker because it has good pricing and one of the best trading platforms we saw. You use the same tools in its well-regarded thinkorswim trading platform to trade forex as you would to trade options, equities and futures. It supports more than 70 currency pairs, so experienced currency traders can try something new, and beginners can trade on the most common pairs.

Whatever your investing strategy, TD Ameritrade has a tool to help you. It has over 350 technical indicators to help you gauge the best time to make a trade. In addition, the Prophet tool can help you estimate the future performance of a currency pair.

TD Ameritrade’s pricing is straightforward. It offers some currency pairs to trade commission free. However, these have higher spreads and trade in increments of 10,000 units. Commission pairs cost 10 cents per 1,000 units, with a minimum of $1. You need to make an initial deposit of $2,000 to start trading forex. Per U.S. regulations, the maximum margin you can trade on is 50:1 on major pairs and 20:1 on exotic pairs.

Read our review here: TD Ameritrade

Pros:

  • More pairs than other brokers
  • One of the best trading platforms in terms of tools

Cons:

  • Have to trade a high amount to take advantage of commission-free trading
  • Need at least $2,000 to start trading

Best Pricing- Interactive Brokers

Interactive Brokers has the best pricing of the forex brokers we looked at. It's an especially good choice if you’re an active trader who trades at high volume. Beginning investors should look elsewhere because you need to start with an initial deposit of $10,000.

Like most forex brokers, Interactive Brokers charges a commission as a percentage of each trade you make. It uses a tiered structure, and if you trade less than 1,000,000,000 units a month, you pay 0.2 basis points for commission on the amount you trade – so on an order of 100,000, you’d pay $2.00. When you trade higher volumes, that commission decreases. At the lowest level, you pay 0.08 basis points.

Interactive Brokers also has some of the lowest spreads we saw, sometimes with no markups at all. You can trade 86 currency pairs – all the major pairs as well as some exotic currencies like the Turkish Lira.

We liked Interactive Broker’s platform. It has a wide variety of tools that monitor and analyze currency pairs to help you make trades at the right time and maximize your returns. There are over 90 technical indicators, which can help you track the performance of a particular currency pair. You can also compare a currency pair to an index, which is a useful way to see if it is overperforming or underperforming.

Read our review here: Interactive Broker

Pros:

  • Low or nonexistent spread markups
  • Tiered commission for high volume traders

Cons:

  • You need an initial investment of $10,000
  • Need to trade high amounts to get low prices

Best Platform-Ally Invest

Ally Invest, formerly known as TradeKing, has one of the best platforms of the forex brokers we looked at. Its platform is customizable and easy to use, making it ideal for beginners and experienced traders alike.

You can choose between the Classic platform and the Live platform. The former has all the basics, including over 50 technical indicators and other analytic tools to track performance and plan the best time to execute trades. The Live platform is more robust and has more charting tools and advanced features, including automated trading strategies. The Live platform is far more customizable, and you can set it up the way you prefer.

Forex traders can also make use of the Metatrader4 platform, which is specially geared toward forex trading and includes advanced tools to help you manage your orders. It also integrates with third-party indicators and analytics.

Through Ally Invest, you can trade on 50 currency pairs. The broker also offers excellent pricing, with no commissions on any trades. Instead, it makes money from markups on the spread, which vary widely depending on external economic factors. To start trading forex through Ally, you need to invest at least $250, but Ally recommends starting with around $2,500.

Read our review here: Ally Invest

Pros:

  • Multiple platform options
  • No commissions

Cons:

  • Spreads can be high
  • Some platforms are better for veteran traders

Best for Mobile Trading-Forex.com

If you like to trade on the go, consider Forex.com – it has one of the best mobile apps we saw. You can place trades and add funds through the app, and any changes you make in the app automatically sync with the desktop platform. One drawback is you can’t use technical indicators or other analytic tools in the app, though this is true of all the forex mobile apps we looked at.

Forex.com lets you trade over 50 currency pairs. It doesn’t charge any commissions and instead marks up the spread on the currency pairs to make its profit. Spreads are volatile and change with market factors.

You only need to make an initial deposit of $250 to start trading. That’s one of the smaller amounts we saw, so this could be a good choice for beginning forex traders.

Read our review here: Forex.com

Pro:

  • No commissions to trade

Con:

  • Mobile app doesn’t include analytic tools

Best for Beginners-Oanda

If you’re just starting to dip your toes into forex trading, we recommend looking at Oanda as a broker. It doesn’t have a minimum deposit or minimum lot size, which means your initial investment doesn’t need to be as large as with other brokers – some require several thousand dollars in initial investments and require you to trade in increments of 1,000 units.

Oanda’s platform is easy to use. It’s especially easy to set up a stop-loss on an order, which keeps you from being in a losing position for too long. You can trade on more than 70 currency pairs, including some exotic options like the South African Rand.

There are over 50 technical indicators, which is fewer than on many other platforms. However, it has many of the standard options that are useful for beginners. The one drawback is there are not many tutorials or other educational resources.

Read our full review: Oanda

Pros:

  • No minimum trade amount or initial deposit

Cons:

  • Lacks tutorials

What Is Forex Trading?

Forex trading involves trading of currencies and is the largest and the most liquid market in the world. Forex operates 24 hours a day, five days a week, and it has no single, centralized market. On an average day, the forex market trades around $3 trillion dollars. 

When you make a forex trade, you are buying and selling currency and, in essence, betting on the fluctuations in their exchange rates. For example, if you were to buy Euros when the conversion rate is 1.25 U.S. dollars for 1 Euro then sell when the conversion rate is 1.28 U.S. dollars to 1 Euro, that difference of .03 represents your profit. Typically, you won’t buy a small amount. Usually currently is traded in lots of varying sizes. A standard lot is 100,000 units of a currency, a Mini lot is 10,000 units, a Micro lot is 1,000 units. A few brokers may offer Nano lots, which are only 100 units.

The change in a currency pair’s value is measured in pips, which is the smallest amount that the value can change. Usually a currency pairs are quoted out to the fourth decimal, and a pip is the change in the last number. For example, if EUR/USD is trading at 1.3300 and it moves to 1.3302, that is a movement of two pips. When pips are magnified by the size of lot, that is where the opportunity to profit emerges.

Because the changes in currencies are usually very small, it would seem that forex trading is ideal only for institutions or investors that can afford to buy large lots. This is where leverage comes in. Typically, a brokerage will offer you a margin account which can magnify the amount you have available. The ratio of the amount you borrow on margin and the amount you deposit is the leverage. U.S. brokers cannot offer more than 50:1 leverage.

Forex Trading Strategies

As with all types of investments, there are many different forex trading strategies. Hedging and speculation are two main strategies. Some basic strategies include choosing a trading time that coincides with the time that the markets in the countries whose currencies you’d like to trade are operating, using stop-loss orders to protect against heavy losses. Advanced strategies can include carry trades, which take into account the interest rates of currencies and not just the conversion rates.

Since currency exchanges are so volatile, it’s a good idea to test your forex trading strategies before you put up your own money. Most brokers offer a demo account and include tools that allow you to backtest your strategies.

What We Evaluated & What We Found

Platform & Tools
The trading platform and the tools it offers is one of the most important considerations when choosing a forex broker. Our reviewers tested the platform demo provided by each broker as well as their mobile apps, looking for platforms that are easy to use and that provide analytic tools to help you gauge a currency pair’s performance.

With the best platforms, you can create multiple watchlists to track different groups of currencies. Some only allow you to create a single watchlist or add to a single pre-made watchlist. You should also be able to create alerts to notify you when a currency pair reaches a certain price or meets some other criteria. Ideally, you should be able to receive email or text alerts, but some platforms only offer notifications inside the platform. A few of the platforms don’t offer alert options.

Forex brokers also provide charting tools to help you gauge the performance of a currency pair. These tools include technical indicators that can help you plan your trading strategy. TD Ameritrade offers by far the most technical indicators, with over 300.

The brokers we reviewed have a range of currency pairs available for trading, the highest is 120 and the lowest is 10. Most trading occurs on major pairs, such as EUR/USD, USD/JPY, GPD/USD and USD/CAD, but having the option to trade different currencies, such as the Thai Baht, the Hungarian Florint and the Danish Krone, can give you an opportunity to spread around your investments, diversity your portfolio and potentially reap larger rewards from more volatile currencies.

Trading Costs
The main cost of forex trading lies in the bid/ask spread. This is the markup a broker applies and is derived from the difference between the bid, or selling, price and the ask, or buying, price. The spread is usually the difference in the last two decimal places of the exchange rates. Forex brokers refer to this difference as pips. Since exchange rates are constantly fluctuating, spreads often do as well, especially when a particular country’s economic fortunes take dramatic turns for the worse or the better.

Some brokerages charge commissions on each trade. These brokerages often have tighter spreads but may be better for higher volume traders. Commission-based brokers also tend to require the highest initial deposits. A few brokers we reviewed, such as Oanda and Nadex, don’t have minimum requirements and also allow you to trade any size lots of currency.

Education & Support
Forex brokers should also provide traders with investment education and platform training. Our reviewers found that the best brokers offer video tutorials and step-by-step training on the platform’s features in addition to training manuals. While forex investors are more experienced that other investors, we still consider it important for a brokerage to provide educational resources. The best include weekly webinars and ongoing blogs that provide important context on the forex markets as well as ideas for new trading strategies.

Since the forex market operates around the clock, it’s important to be able to get support whenever you’re trading. Many brokers offer phone support during hours the Forex markets are open as well as live chat.

Our Verdict & Recommendation

TD Ameritrade is our top rated-forex broker. It has the best platform, both in terms of its ease of use and in the breadth of the tools it provides. It also offers the most currency pairs, which gives you an opportunity to trade in exotic pairs that have the potential for high returns. It is also a good platform for trading other investment types and may be a good choice if you want to make non-forex investments.

Interactive Brokers is another good choice that has a good platform and educational offerings. It has a commission-based model but tight spreads. It does require an initial investment of $10,000, so it’s a good choice for experienced investors.

FXCM has some of the best educational tools, including ongoing Daily FX webinars and the daily FX blog. It has the highest commissions in our review, but it does have relatively tight spreads.

Oanda and Nadex are the two best brokers for pricing. Nadex has a low commission and low spreads. Oanda doesn’t have any minimum requirements for your opening deposit or a minimum trade lot size.

Forex trading is a move advanced type of investing but is one that has the potential to be very rewarding. Each broker in our review offers tools to make trades and analyze potential strategies. The best brokers offer an easy-to-use platform, low trading costs and quality educational resources.