The Foreign exchange market has always been a market that has granted big profit opportunities to all entities involved. However, the market was mostly dominated by large institutional players which did not provide a pathway for smaller entities to join in. That all changed with the introduction of online trading.
As global internet connectivity reached its peak, a multitude of FX trading brokers appeared. Almost all of these provided online trading platforms which have become the primary method for trading for many traders worldwide. For the first time, even small traders could take part in the foreign exchange market and hope to compete with larger traders for profits.
When searching for the best forex brokers, users mostly look for two things, reliability and the different charges each broker highlights. Commissions and fees are two of these charges. Sometimes people make the mistake of choosing a broker, only to later realise that the commission they charged is eating into their profits. This is why it should be one of the prime considerations when choosing brokers. Spreads are a very important factor to be considered when you want to invest. It is important to realize that the cheapest firm isn’t necessarily the best. Rather than charging a monthly fixed commission, Forex brokers make their profit on the spread, i.e. the trade volumes. As a reminder, the spread is the distance between the currency’s quoted buy and sell prices and constitutes the natural market spread and a commission.
To make things easier for all the newcomers into the market, the following list contains some of the best brokers to offer the lowest fees and commissions. They are the most common costs associated with trading, charged by the broker for each trade placed. Commissions come mainly in two forms: Relative fee and fixed fee. Some brokers also consider hidden fees which include inactivity fees, monthly or quarterly minimums, and margin costs just to name a few.
XM Global Webtrade
XM Global Webtrade is called a next-generation broker because of all of the features it offers: auto trading, fast order execution, and no hidden fees. The broker offers two main trading platforms which can be accessed using both real and demo account: Meta Trader 4 and 5. They are simple, intuitive and compatible with mobile devices as well. It offers more than a thousand trading instruments, which includes FX trading as well as CFDs on various asset classes. XM operates with a no hidden fees or commission policy and every information is clearly stated.
- Commissions – Nil
- Spreads as low as 0 pips
Launched in 2011 and headquartered in Cyprus, FXTM is known as one of the fastest-growing FX brokers in the world. The broker offers more than 250 tradable items which include 50 currency pairs along with CFDs metals and cryptocurrencies. They also offer share CFDs on shares, commodities and indices including over 170 major companies.
- Commissions – $2 on ECN accounts
- Spreads as low as 1.5 pips
HotForex is an FX and Commodities broker which offer primarily CFD trading. HotForex users have the opportunity to use 17 trading tools and access over 150 trading products. This includes indices, metals, shares, bonds, commodities, energies and cryptocurrencies. Like the entry mentioned before, HotForex provides both MetaTrader 4 and 5 which enables one-click trading and numerous tools in institutional quality.
- Commission- Nil( only apply to currenex zero spread accounts)
- Spreads as low as 1.2 pips floating and 1.8 pips fixed.
Trade360 is primarily a CFD and FX broker which provides crowd trading, a special trading feature that displays trader behaviour within current market conditions. Owned by Cypriot investment firm Crowd Tech Ltd, The brokerage has amassed a multitude of clients across multiple nations. It offers its own proprietary trading platform, along with MetaTrader 5. Some of the offerings of this broker include more than 40 ETFs, 40+ currency pairs, commodities, stocks, and indices.
- Commission – Nil
- Spreads – fixed at 1.8 pips.
The market has become somewhat saturated with thousands of developers producing similar products. It is thus crucial for traders to make shortlists, highlighting the favourite features of each option before making a final decision. It is always important to go over the terms and conditions of each broker to check for any hidden fees and to see if everything about it is legitimate or not.
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