Compare Accounts and Services
|Broker||Profile||Min||Leverage||Lots||Bonus||PAMM||Copy Trades||U.S. Clients||Spread/Roll||Rank|
|Dukascopy||$5,000||200||1.00||10%||2.91 / 0.93|
|Forex||$500||400||1.00||3.58 / 0.29|
|FXCM||$50||200||1.00||2.90 / 1.31|
|FXCC||$100||300||1.00||30%||3.37 / 1.06|
|Hotforex||$50||1000||1.00||30%||3.07 / 1.60|
|AAAFX||$300||500||1.00||10%||3.30 / 1.55|
|FXDD||$250||400||1.00||4.06 / 0.79|
|Oanda||$1||50||1.00||3.92 / 1.15|
|CitiFx||$10,000||50||5.00||5.16 / 0.30|
|Alpari||$200||500||1.00||5.28 / 1.07|
|Fxpro||$500||500||1.00||5.81 / 0.97|
|AvaTrade||$100||200||1.00||20%||5.31 / 1.55|
|Exness||$1||2000||1.00||8.09 / 0.57|
|eToro||$50||400||1.00||20%||5.18 / 4.09|
|Liteforex||$1||1000||0.10||30%||10.50 / 1.37|
|EasyForex||$25||200||5.00||20%||4.10 / 16.45|
|Instaforex||$1||1000||1.00||30%||12.78 / 9.24|
Table 1: Forex broker-dealers ordered by fees, cheapest to most expensive, per round turn lot over one week. Suggest new broker
Comparison of Total Fees
Trade Execution Types
- MM=“Market Maker” The broker is the principal liquidity provider and assumes market risk as the client’s counterparty. Also known as “dealing desk” execution.
- ECN=“Electronic Communication Network” An ECN broker can offer the client competing quotes from multiple, liquidity providers. A true “ECN” is the forex equivalent of an exchange.
- STP=“Straight Through Process” The broker routes orders through to one or two preferred liquidity providers.
To provide adequate liquidity, both STP and ECN brokers may be forced to match and aggregate smaller orders and continually hedge their net position to offset market exposure. In this way they are effectively acting as a second level “market maker”.
This is necessary because many interbank dealers as well as second tier banks/brokers will not accept odd lot or low value orders.
Brokers are normally regulated in those jurisdictions in which they offer client services. It’s therefore important to check which regulatory body (if any) applies to your country. Regulatory bodies also have widely differing scope, remits and legal authority. Capital adequacy requirements, trade execution transparency and protection of client funds (segregation) are key requirements.
Financial regulatory authorities: Wikipedia
Table 2: Regulatory bodies and agencies.
Spread: The trade spread is calculated as the average over the most liquid currency pairs (excluding exotics). Spreads will vary according to market conditions. In addition, some brokers may offer “fixed spread” accounts.
Swap: The rollover swap fee is calculated as the average spread over the long/short swap rates. The percentages shown are annual rates. In normal trading (not directional carry trading), the interest rates will typically cancel over time, leaving the swap spread as a fee. Note also that brokers may charge an interest premium (normally higher than the swap spread) on any unrealized profit/loss on open trades.
Commissions: Where commissions are charged (e.g ECN brokers who charge commission per side/round) the charge is included in the spreads shown in the table above. This also applies to additional charges on rollover.
Swap Free/Islamic Accounts: All brokers offer swap free accounts on request unless otherwise stated. Swap free accounts generally have a wider trade spread to compensate the broker for the loss of swap fees.
Bonuses: These typically require a minimum account turnover before they can be released.
Negative balance protection: In cases where the client account becomes negative due to market movements, the broker will cover the loss.
VPS Hosting: The broker provides a paid hosting service for running algorithmic trading systems (expert advisors).
Free VPS Hosting: The broker provides free VPS hosting to clients.