Best Forex Brokers 2022 – updated list

12 best forex brokers 2022 for currency trading

In our forex broker comparison, we will give all the information about all forex brokers that also offer forex trading for investors. In our comparison, there are trading platform tests, trading offers, fees, deposit protection, regulation, and more. So we don’t have to rely only on our tests; there are trader ratings and reviews for almost every forex broker. With our forex broker comparison, we can quickly and easily find the best forex broker for our needs.

The forex brokers with the highest trader rating

What is a forex broker

First, we would choose a forex broker that can handle our foreign exchange transactions. Since forex trading is usually not offered by our bank, we would do a detailed comparison of forex brokers before opening an account with a provider. These special brokers are the foundation for private investors and traders who can trade foreign currencies at all.

Since there are many forex brokers on the market right now, it is advisable to make a comparison of forex brokers. To do this, we would first find out what the main differences are between the forex brokers that are out there.

Brokers of the dealing center and brokers outside the dealing center

Brokers of the dealing center are also called market makers. One thing that makes them different is that the brokers’ job is to represent both the trader’s counterparty and the trader’s trading partner at the same time. As a result, the client always trades against the forex broker. On the other hand, if the trader makes money, it means that the broker loses money. If the trader suffers a loss, the forex broker, as a counterparty, makes a profit. In theory, this shouldn’t hurt the trader, but it does mean that the relevant forex broker needs to be honest and fair.

ECN and STP brokers in comparison

In the world of so-called “non-trading brokers,” two types stand out: ECN brokers and STP brokers. The fact that a non-dealing broker doesn’t set the exchange rates himself but instead gets them from the interbank market or affiliated liquidity providers is a big part of what makes them unique. So, the broker has a choice of rates and usually gives its customers the lowest prices available at the time. Among other things, this means that in ECN and STP trading, traders can often trade with very low or sometimes no spreads at all.

Best Forex Brokers 2022 - updated list

Essentially, the difference between ECN and STP brokers is that the STP broker’s profits come in the form of spread premiums. On the other hand, ECN brokers usually require a fixed commission on top of the spread in order to trade. However, with STP brokers, we would be aware that there are providers with fixed spreads on the one hand and forex brokers with variable spreads on the other. If we know the differences in the business models of the respective types of brokers, it makes sense to find out in advance whether we prefer to trade with a market maker or an ECN-STP broker. However, whether it is a market maker, an ECN, or an STP broker is not the most important criterion when comparing different forex brokers.

What should we consider when comparing forex brokers?

There are several things to consider, which, of course, are also considered when comparing forex brokers. It helps if we break down the comparison into different categories, such as the following:

  • trading platform
  • brokerage services
  • customer service
  • trading conditions
  • Extras and bonuses

Maximum leverage is important for professionals

When comparing brokers, professional traders, in particular, often first ask how much maximum leverage is important. Since leverage shows how much we can make on our money compared to how much we put in, many traders like very high leverage. The best deals in this area can currently be found at 400:1 or 500:1.

Minimum deposit amount

The minimal deposit is less interesting for professional traders and more interesting for beginners. If this is the first time we open a trading account with a forex broker, we usually do not need to deposit 1,000 euros or more right away. People who are just starting in this field tend to choose brokers that don’t have a minimum deposit or where we have to put down at least 100 or 200 euros.

The smallest tradable unit

The smallest tradable unit describes the smallest position that can be traded in a given market. It is usually specified in lots or contracts. For example, 1 lot means that each pip changing the price of a currency pair means a profit or loss of 10 euros for a trader. Many brokers offer trading in so-called microlots, i.e., 0,01 lot. The profit/loss in this example is only 1/100 of 1 lot, i.e., 0.10 euro per pip. So, this point is also less interesting for professional traders. It is more interesting for new traders who want to start with smaller positions so they don’t have to risk as much money.

Spread as a value factor

The spread is essentially the only commission that is charged when trading forex. The importance of this criterion depends mostly on our trading strategy. Traders who tend to keep their positions open for a long time can handle spreads that are a little bit wider. For clients who make many trades on the same day, so-called intraday traders, this factor can mean the difference between profit and loss.

Number of currency pairs traded and margin

When making a comparison, we should pay attention not only to the spread. As we have already learned, some forex brokers charge a fee for an order to buy and sell a foreign currency in addition to the spread, depending on the type of broker (market maker, ECN, or STP broker). Therefore, sometimes it takes a little time to compare the individual spreads of providers with each other.

Number of currency pairs traded and margin

The number of traded currency pairs still varies considerably from one broker to another. The best providers in this area provide their clients with over 150 currency pairs. According to studies, more than 90% of all traders prefer to be able to trade with at least 50 or 60 currency pairs. All forex brokers offer what are called “majors,” or the most commonly traded currency pairs (EUR/USD, GBP/USD, USD/CHF), but not all brokers offer “exotic” currency pairs like EUR/TRY. Another trading condition directly related to the maximum leverage is the margin. If this is multiplied by the leverage, the amount is always 100. This means, for example, that the maximum leverage is 300.

Withdrawal

Unfortunately, there is no best forex broker. When comparing, we would weigh the strengths and weaknesses of all providers against each other, choose a broker that best meets our needs, and open a demo account. If everything works well in the demo mode and you’re happy with the terms and conditions and customer service, check the broker’s customer experience in our database and only then open a real account. If we follow all these steps, we will find a broker that suits our needs as traders.

Petros Lorelis
Author and expert: Richard Urban
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LinkedIn: Richard Urban