Unbiased Forex Brokers Review 2019
For a trader the broker is the key partner in his activity, choosing the right broker can make a huge difference on the trading results. Differentiate the best brokers with professional criteria needs extensive market experience, with all the brokers that claims to be number 1, a beginner could easily fall in the trap of the aggressively marketed brokers.
Most important selection criteria :
- Robustness of the broker in exceptional events ( in 2015 following the decision of the SNB to end the Swiss franc’s peg with the euro , UK online broker Alpari and Global Brokers collapsed, while shares in FXCM plunged more than 90 per cent, after it announced it was facing losses of $225 million.
- Trading costs as spreads, commissions , financing rates, deposit/withdrawal fees, inactivity fees, API fees..Depending of the broker the trading costs can vary from simple to X10 on the same currency pair !
- Trade execution : negative slippage ( when you get a different price than expected on an entry or exit from a trade)
- Quality and availabilityof the customer support
- Ergonomy of the trading platform
Many other factors are taken into consideration , as charting tools , deposit/withdrawal delays, regulator’s licences, mobile trading applications, …
With ALL criteria carefully analyzed THE 2019′ world’s best FOREX brokers are :
#1 LMAX Exchange
Unknown of most of the retail traders, LMAX Exchange (London Multi Asset Exchange, founded in 2008 in London, UK), is not an ordinary financial broker. Although it is classified as an FX and CFD broker, it is the first MTF (Multilateral Trading Facility) regulated by the FCA.
Instead of hedging or sending your order to another liquidity provider, LMAX will directly make the deal between you and another trader.
Resulting on a tremendous hedge compared to any other classic broker in the world.
With the best spreads and commissions of the whole industry ( check out our special deal ), no last look and an average trade execution speed of 3.08 milliseconds, pricing/execution is by far the best in the industry. They also have an excellent customer support and responsive technical/API team, the only downsides are that the API is not very well documented and the demo account is a bit slow compared to real account. Since 2018 they are also providing cryptos cfd contracts with extremely low spreads.
Conclusion : commissions and execution are the most important
22 $/1 mil commission Vs 25 $ for Fxcm Elite pricing ( that requires to trade more than 150 million per month – a huge volume)Vs 40 $ in average in the industry
With our Lmax special partnership that’s 45 % cheaper than the average commission in the industry!
#2 Interactive Brokers
Founded in 1978, with total assets of 54.7 billion and more than 1200 employees, IB is simply the largest financial broker in the world.
It’s the most trusted, but also provides competitive spreads and commissions, it offers a huge range of financial products, their TWS trading platform is very customizable but also very complex to use, the biggest bad point is the customer support that is really hard to reach and slow to respond to tickets, the minimum deposit of 10 000 $ is also an important downside.
Conclusion: good trading conditions and reliability make’s IB the second best choice as forex broker.
#3 IG Group
IG Group, founded in 1974. Today IG is the largest CFD provider in the world. They are providing instruments on over 15,000 markets, mini contracts with 0.5 euro value per point for Nasdaq and Dax indices, spreads are in the average low. However the real problem of IG is its trading platform that is really not optimised compared to the top brokers, execution is sometimes very slow ( important negative slippage) or sometimes it’s even impossible to close or open a position, the trader is obliged to close and open again a new ticket window! Lots of limitations on stop orders; API limitation and very bad technical support are a big handicap.
Conclusion: acceptable trading fees are not compensating the serious platform’s limitations, the whole trading conditions are clearly far below Lmax and IB.
FXCM, (Forex Capital Markets) , was founded in 1999 in New York and was one of the early developers of online forex trading.
The best fxcm advantage is its highly customizable trading platform. Trading fees are in the average low, execution and customer support maintains in the average.
The most sensitive downside is that on January 15, 2015 following a large increase in the price of the Swiss Franc, FXCM lost $225 million and was in breach of regulatory capital requirements, saved in extremis from bankrupcy by Leucadia, in 2017 Fxcm has been banned from the US for fraudulent activities.
Conclusion : even if the trading environment is among the best, there’s a very high risk that Fxcm will disappear in case of a new unexpected event
OANDA was founded in New York in 1995. Execution is acceptable, but spreads are far higher than all other brokers presented in this review.
The main advantage of Oanda is the possibility to trade extremely small sizes, allowing beginners to trade with real money taking very small risks and without minimum deposit.
The API is on the average , but unlike all other competitors in this review, OANDA charges important withdrawal fees, likewise their sales team is very aggressive.
Conclusion: Oanda has the most expensive trading fees in this review, it should be used only for testing purposes with very low investment.
DIDN’T FIND YOUR FOREX BROKER? HERE IS PROBABLY WHY
The reality of the forex industry is approximately 80/90 % of retail clients are consistently losing money, means in most cases huge profits for brokers taking the other side of the bet. This phenomenon attracted in recent years many new comers with exotic names/regulations coming for example from the betting industry,established in the Seychelles or Cyprus… They have very aggressive marketing campaigns, giving away welcome bonuses, free “mentoring sessions” … they all pretend to be number one or having hundred thousand of clients around the world but THEY ARE NOT MARKET PROFESSIONALS as we consider, these brokers are heavily investing on marketing and are sometimes very close to fraudulent activites. If you take a look at our review you will notice that the two best ranked brokers are not advertising at all, with the great value they provide to their customers since many years they don’t need to advertise, expert traders will recommend them without any hesitation.
FX and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.