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2021 Rankings

Best Forex Brokers

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Do you want to make money in the global currency market? Forex brokers offer access to the world's largest and most liquid market. They're a type of organization that offers trading on currencies, stocks, commodities, and other financial instruments. Get started today!

Frequently Asked Questions on Forex Brokers

What is forex?

Forex or FX, is a short-term for foreign exchange. It is the largest and most liquid market worldwide. It’s the global market for traders, investors, banks, and large institutions to buy and sell world currencies. It’s also where you trade two currencies against each other. 

What are the types of trading accounts available?

There are three basic types of trading accounts:

Standard Trading Account

A standard trading account gives you access to a contract size with 100,000 base currency units. However, it doesn’t mean that you have to pay your broker that amount of money upfront. With the margin and leverage rules applied, usually 100:1, you can open a standard trading account with an initial deposit of $1000.

Mini and Micro Trading Accounts

A mini lot is one-tenth of the size of a standard lot—10,000 currency units, while a micro trading account gives you 1,000 units of currency. With a leverage of 100:1, you can open these accounts with an initial deposit of $250-$500.

Managed Trading Account 

This type of account is funded using your capital, but decision-making and management are usually handed to an account manager. Maintenance fees and commissions may apply.

Special account types such as Islamic accounts, VIP accounts, Funded accounts are also available from selected forex brokers in the USA.

What do I need to open a trading account?

Opening an account requires registering with your chosen forex broker. If you don’t have a particular broker in mind, check out forex broker listings. Nevertheless, most brokers will ask you personal information such as name, address, date of birth, social security number, and tax ID to verify your identity. Some financial information may also be required.

Why do I need to provide my financial details?

Most forex brokers will require you to give them a few details about your finances since they’re required by law to verify your income source in compliance with the anti-money laundering law. Information such as your annual income, net worth, bank or credit card account statements is usually required.

How do I fund my trading account in the USA?

There are several options to deposit money in your trading account. You can transfer money into your trading account by using your credit or debit account. For forex brokers in the USA, they’re the best methods for immediate funding. A wire transfer is also accepted but expect 2 to 3 days of processing time. Bank charges may also apply. 

Can I use a check to deposit money?

You can fund your trading account using personal, and bank checks sent directly to your forex broker through processing your payment could take some time. Additionally, this payment option is not accepted by some forex brokers. It’s best to check with your broker first.

How do I withdraw my money?

To withdraw your money, you need to log in to your account and make a request to withdraw your funds. Your money is returned to you through the same payment method you used to deposit. For example, if you used a credit card, you will get your money from the same credit card. Other options include electronic payment channels and wire transfer.

Can I use Bitcoins?

It depends on your broker’s policy. But, yes, it’s possible to pay forex brokers with Bitcoins. Furthermore, most of them will allow you to trade Bitcoins as well. All transactions are paid using Bitcoins through your Bitcoin wallet and your broker’s. 

What will happen to my account if I don’t use it?

Trading accounts with no client-initiated activity for 12 consecutive months are referred to as inactive or dormant accounts. When this happens, your broker will charge you an inactivity fee every month. However, some brokers archive your account after three months of inactivity, while others will consider your account dormant 24 months. 

How long can I use my demo account?

The best US forex brokers encourage practicing with demo accounts before trading with real money. Most brokers offer demo accounts only for a limited time, usually 30 days after registration. Although, some can retain their demo account if they have an active, funded account. Some offer demo accounts with no expiration but on certain conditions.

What is the best forex broker for beginners in the USA?

Starting with a forex broker that offers a demo account is the safest way to go for novice traders. A broker with a mini account package is also a great choice for beginners. Many of the best forex broker catering US clients offer these packages. It’s also good to check out forex broker reviews to see what other beginner traders say.

Can I hire a forex broker in Australia?

Since trading foreign currencies is also popular among Australia residents, you can find many Australian-based forex brokers there. However, before committing, make sure that it’s authorized by the Australian Securities & Investment Commission (ASIC), which regulates Australia’s financial markets. 

What are the types of No Dealing Desk Brokers?

Straight Through Processing (STP) Brokers

As the name implies, Straight Through Processing brokers process your orders by directing them straight to liquidity providers, such as banks and larger brokers, with access to the interbank market. Most STP brokers have access to various liquidity providers that quote their bid and ask price, thus the variable spread.

Electronic Communications Network (ECN) Forex Brokers

Electronic Communications Network (ECN) forex brokers provide an electronic trading platform for ECN participants like retail traders, banks, and other liquidity providers to enter their best bids and trade against each other. Unlike other forex brokers, you can bid anonymously, to some degree, if you wish to. 

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