Best Forex Trading Accounts 2020

If you are looking to trade forex online then you will need to open a forex trading account with a forex broker. There are many good forex trading brokers to choose from that offer a variety of forex trading accounts. It can therefore be difficult to decide which is the best forex trading account for you. Some of the important things to consider before choosing a forex trading account are the brokers fees, regulation, execution model, trading platforms, educational resources, trading tools, customer service and currencies available to trade. The trading brokers review team have studied and analysed thousands of forex trading accounts across hundreds of forex brokers to save you time and help find the right one for you.

Top 3 Forex Trading Accounts 2020

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.

ASIC, FCA

Min $200 Deposit

2010

1:500

Review Open Account Open Account
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.4% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
2.

ASIC, CySEC, IFSC

Min $5 Deposit

2009

1:880

Review Open Account Open Account
Terms & conditions apply
71.61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3.

ASIC, BVI, CBI, FFAJ, FSA, FSCA

Min $100 Deposit

2006

1:400

Review Open Account Open Account
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
We have chosen these forex brokers as our top choices for passing our extensive analysis and research which showed that they offer some of the best forex trading accounts for forex traders of all experience levels, investment sizes and individual requirements.

1. Pepperstone

Pepperstone is one of the largest trading brokers providing traders worldwide access to trade across all markets with cutting edge technology, low cost spreads, low-latency high speed execution and award-winning customer service.

Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.4% of Pepperstone Limited’s retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

2. XM Group

XM Group is a multi-award winning globally established and regulated trading broker with over 2.5m clients from 196 countries offering no-requotes, low spreads, fast execution and negative balance protection.

Terms & conditions apply
71.61% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

3. AvaTrade

AvaTrade is an award-winning trading broker with regulation in 6 jurisdictions offering 250+ trading instruments across multiple markets and trading platforms.

Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best Forex Trading Accounts

Best Forex Trading Accounts

What is a forex trading account?

An online forex trading account is an account where you can deposit funds for the purpose of investing in currencies. When you have a forex trading account with an online brokerage, you can use their trading platforms to buy and sell forex currency pairs. This will include major currency pairs such as the EURUSD and GBPUSD, minor currency pairs such as the EURGBP and EURAUD, exotic currency pairs such as the EURTRY and USDDKK.

What makes a good forex trading account?

Most forex brokers will offer a variety of trading account types to cater to the different needs and investment sizes of forex traders. Whether you’re looking to invest for the long term or buy and sell forex currencies regularly, you can find a broker that provides your ideal account. Some of the key features to consider when looking for the best forex trading account for you include:

Broker regulation

One of the most important things to look for is that the forex trading account is offered with a brokerage firm that is regulated. A regulated forex broker can give investors certain protections that an unregulated forex broker cannot.

Minimum forex trading account deposit

Each forex trading account will have a minimum investment size required to open the account. Some forex brokers offer accounts from just $1 whereas other specialised account types can require much larger deposits of $500+.

Forex trading account leverage

A leveraged forex trading account allows you to trade with a larger position size than you would be able to without leverage. Whilst this can also increase potential profits, it can also significantly increase risks. You should make sure that you have a clear understanding of how leverage works and only open a forex account with a leverage that you feel comfortable with.

Forex trading platforms

If you are familiar with a particular forex trading platform then you may want to make sure the forex account types offers that platform. If you are new to online trading then you may wish to consider a forex trading platform that is user friendly such as the popular MetaTrader platforms which are provided by most forex brokers. The trading brokers review team have compiled a list of our best MetaTrader brokers. Some investors may wish to use a social trading platform so if you do, check that this is available before you open a forex account.

Forex trading tools

When you are looking to trade forex online, you are likely to need some tools to analyse the currency markets. This can include technical indicators, fundamental tools such as economic calendars and sentiment analysis, trading calculators, Trading Central, etc. The more tools a forex account has, the more detailed FX market analysis you will be able to conduct. If there is a particular tool that you cannot trade without, it may be worth making sure that it is available on your chosen brokerage account.

Currency pairs

Some brokers offer the same currency pairs across all types whereas others have a different selection depending on the account type. You will want to make sure that the forex trading account that you are considering has all of the currencies that you would like to trade online now and in the future. If you plan to trade assets other than forex, you should also check that these are available. Other asset classes include stocks, commodities, cryptocurrencies, precious metals and energies.

Forex account fees

When you trade forex online you will usually need to pay a commission fee to the forex broker for entering and/or exiting your positions. Check the commission on each trading account and consider how it will affect your money management and if it is a charge that you are happy with. If you are looking to save on trading costs as much as possible, you can take a look at our best discount brokers.

Forex account spreads

When you are trading forex online, you will usually need to pay a spread for each position that you take. The spread is the difference between the bid and ask prices of the currency pair. Some forex brokers offer fixed spread and variable spread accounts. You should make sure that the spread type and size is suitable for your forex trading strategy. E.g. forex traders who use scalping strategies usually require low spreads whereas swing traders may not be so concerned with the spreads.

Forex account fees

In addition to the commission and spreads, forex trading accounts can incur other fees that you should be aware of and clarify with your forex broker if need be. Other forex trading fees can include rollover/swap, account inactivity fees and deposit/withdrawal fees.

Forex account funding options

The forex trading accounts provided by brokers will support different methods to make deposits and withdrawals to and from your account. Common payment options include bank wire, credit/debit card and online payment processors such as PayPal, Skrill and Neteller. You should check that the forex brokers accounts support those methods that are most convenient to you, considering how long each can take and the costs that may be involved.

Trade execution

Brokers can have different execution models on each forex account type. Some forex brokers utilise an STP/ECN model with no-dealing desk (NDD) interference and thus no conflict of interest between broker and traders. Others will incorporate a market maker model which means that they take the opposite side of the trade. You should consider what execution type you would prefer and choose the relevant trading account type.

Liquidity providers

Most forex brokers use a combination of liquidity providers (LPs) such as banks and funds. This is where they get their price quotes from. Usually, the more LPs that a forex broker has, the better the prices they can offer to forex traders are.

Position size

Some forex accounts have minimum and maximum position sizes. You should check that the account type you are considering supports the position sizes you plan to use now and in the future.

Educational resources

It can be beneficial especially for beginners to opt for a forex broker that has a forex academy with a selection of forex trading guides, tutorial videos and webinars. These can help to familiarise users with the difference between the forex account types provided. If you are new to trading online and would like as many educational resources as possible, you may wish to take a look at our best brokers for beginners.

Best Forex Trading Accounts: Open A Forex Account

Best Forex Trading Accounts: Open A Forex Account

Opening a forex trading account

Opening a forex account requires that you provide your chosen forex brokerage with some personal information which will usually include your contact details, proof of identity and address confirmation. This is a normal part of know your customer (KYC) procedures to ensure that brokers are compliant with anti-money laundering (AML) policies. Some brokers will ask for details about your financial experience which is just to make sure that their forex trading services are suitable for you.

Once your trading account has been verified which can be within the same day, you are able to make a deposit and trade forex online. Different forex brokers may have different requirements depending on the jurisdiction and how its business operates. Simply choose a forex broker and forex trading account that meets your needs, follow the account opening process and you will be able to start trading forex online.

Need help choosing from the best forex trading accounts in 2020?

If you are still unsure which is the best forex trading account for you then you can use our free online broker comparison tool to quickly compare forex accounts based on trading platforms, trading instruments, minimum deposit, regulations, leverage, funding options and more. You can also read our broker reviews and choose from our best brokers that we have conveniently categorised into the best online brokers, best forex brokers, best stock brokers, best CFD brokers, best crypto brokers, best trading platforms, best social trading platforms and best trading apps. If you would like to look for the best trading brokers in a particular country, we have pages dedicated to our best forex brokers USA, best forex brokers UK, best forex brokers Australia, best forex brokers South Africa and best forex brokers Canada. There are also pages for our best stock brokers USA, best stock brokers UK, best stock brokers Australia, best stock brokers South Africa and best stock brokers Canada.