This is especially important given the risks involved in trading forex from a margin account. Forex brokers typically offer a range of contract sizes so you can fine-tune the size of your trade — which will determine how much risk you are taking for a given profit target. In this case, your potential risk will be limited — but so will your potential rewards. For most beginners, trading forex with an amount of capital that you can afford to lose can be a great way to learn with less risk, and can be of value if you focus on the percentage returns rather than their dollar value.

IG takes first place in our Annual Review as the best forex broker, with available currency pairs and the ability to trade CFDs and forex options, traders have plenty of choices. IG is the only broker that is regulated in both Switzerland and the U. expand What does it mean to be the biggest forex broker? What can be considered the largest forex broker may vary depending on the time period used to measure size. Important factors to consider when gauging the size of a forex broker are the assets under management, number of clients, and market capitalization valuation for public companies.

Here are the top 10 brokers by forex and CFD trading volume according to data compiled by Finance Magnates during the third quarter of data excludes Japan due to the abnormally high trading volumes known to come from Japanese brokers :. CMC Market's Next Generation platform comes with a massive selection of nearly 10, tradeable instruments. It delivers a terrific user experience, as well as advanced tools, comprehensive market research, and an excellent mobile app.

Hands down, the CMC Markets Next Generation trading platform is a market leader that will impress even the pickiest of traders. The new Dynamic Trading tool allows you to place multiple trades simultaneously, which was a nice innovation by CMC Markets this year.

If you're a fan of mobile platforms — or trading forex on the go — see our picks for best forex trading apps here. What do you value most in a forex broker? Maybe you want to trade forex on the go. You might be looking for the most cost-effective forex brokers. Or maybe you are a beginner forex trader who is just getting started.

With a wide range of forex brokers comes a wide variety of features and specialties. IG offers the most tradeable CFDs in the industry, 19, CFDs, or "contracts for difference," enable traders to speculate whether the price of a stock, forex pair, market index, or commodity will go up or down without taking ownership of the underlying asset.

Alongside nearly 10, CFDs, CMC Markets offers the most tradeable currency pairs, with pairs that can be quoted both ways i. As a highly-trusted and regulated global brand, Interactive Brokers IBKR provides everything professional traders might need, from advanced trading tools and platform features to competitive pricing across a wide variety of markets, as well as connectivity to over global exchanges. In addition to competitive spreads and low commission-based pricing for forex, Interactive Brokers provides more third-party research than any other broker.

Interactive Brokers continues to innovate its platform offering, such as with its new Impact app for environmental, social, and governance ESG investing, alongside the related Impact dashboard available in its Trader Workstation TWS desktop and WebTrader platforms. Professional client status : In today's highly regulated forex world, traders who want to maximize their margin leverage must apply and obtain ESMA's professional client status with their broker.

Traders designated as Professionals in the EU do not receive negative balance protection and other consumer safety mechanisms such as eligibility for compensation schemes in the event of a broker's insolvency.

To determine the best forex brokers for professional traders, we broke down each broker's active trading program, and compared all available rebates, tiers, and all-in costs. Trading platforms were then tested for the quality and availability of advanced trading tools frequently used by professionals.

Here are three of the most important factors to keep in mind when choosing an online broker for forex trading. Not sure how to go about choosing a forex broker? Check out our Forex Broker Compare Tool to compare dozens of the biggest forex brokers in the industry and analyze their top tools and features. Our Compare Tool is fed by data gathered by our expert researchers for our forex broker reviews , so you can feel confident you have the most up-to-date information at your fingertips.

To see an intuitive, comprehensive list of highly regarded regulatory agencies, check out our Trust Score page.

Also, be sure to check out our in-depth reviews of forex brokers — we detail the regulatory status of each individual forex broker across the international forex landscape. Here are the Overall rankings for the 39 online brokers who participated in our Annual Review, sorted by Overall ranking. Was this helpful? Yes or No. At ForexBrokers. com, our evaluations of online brokers and their products and services are based on our collected quantitative data as well as the qualitative observations and qualified opinions of our expert researchers.

Each year we publish tens of thousands of words of research on the online forex brokerage industry, and we evaluate dozens of international regulator agencies click here to learn about how we calculate Trust Score. We test all available trading platforms for each broker — whether they are proprietary or come from third-party providers — and evaluate them based on a host of data-driven variables.

All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running macOS Ultimately, our rigorous data validation process yields an error rate of less than. For a full explanation and accounting of our research and testing process, please click here to learn more about how we test.

There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.

Read more on forex trading risks. Steven Hatzakis is the Global Director of Research for ForexBrokers. In the above example, US dollar interest rates are currently higher than that of Euros.

Therefore, borrowing US dollars and lending Euros will generate a cost. Of course, if we were to sell Euros and buy US dollars the opposite would be true. We would need to borrow Euros and lend US dollars, as we would receive more interest for lending the US dollars than the interest we would pay to borrow the Euros.

This would generate a benefit for our account, known as positive carry. We can have a look at a numerical example for clarity. We will be long Euros and short US dollars, this means we will need to lend Euro and borrow US dollars to balance our account. We now have the following flow of currencies and cost:.

In terms of FX rate, this amount translates into 1. To do so, you would need to be able to determine what the respective interest rates are for each currency, as the difference in these rates is what ultimately generates a positive or negative carry for your position. Simply divide the swap fee by the trade size and add that to the spot price i.

The interest rate for each currency is set by the respective central bank. This is a good guideline to know what interest rate should be applied for each currency. Bear in mind that the broker will be using the interest rate offered by the bank used to settle FX trades.

The bank will be using inter-bank interest rates which will necessarily differ slightly from those set by central banks. Researching the corresponding interest rates for the currencies you are trading will allow you to determine which positions will have a positive or negative carry.

This is due to the fact that while we hold US dollars that earn higher interest than the interest paid on borrowing Euros we will be receiving revenue.

Most central bank websites will have their interest rates available, or you can check Fxstreet or Tradingeconomics , which also publish interest rates for each currency.

The rates published on these websites are the central bank interest rate. These rates will differ somewhat compared to those available to your broker. However, they will give you an idea of which currency pairs produce positive or negative carry with a buy or sell trade.

Currencies that make up an FX pair are split into two categories, the domestic currency, and the foreign currency. The domestic currency is the one mentioned first in a currency pair nomenclature. As a rule of thumb, if you are long a domestic currency that has a lower interest rate than the foreign currency where you are short, it will create a negative carry.

Similarly, if you are long a domestic currency that has a higher interest rate than the foreign currency this position will create a positive carry. The table below shows the possible combinations of interest rates against holding buy or sell trades. A glance tells us which positions generate a positive or negative carry. The term carry is used to express holding a position in time, as in to carry forward. Just to be clear, a positive carry will generate income for your account, while a negative carry will create a cost for your account.

MT4 Swap Fees. This can be convenient and will also convey what our broker is actually charging us. Understanding the swap point calculation is a little trickier on MT4 than on a website with a calculator that gives us the cost or benefit directly. However, it is still useful and allows us to see which positions would generate a cost or benefit. The swap fee long or short is shown in the window on MT5 below. To get there we select the currency pair and right click on the mouse then select Specification , next scroll down till we see Swap long and Swap short.

These two numbers will tell us the pips to be added to or deducted from our account. This is US dollar pips, if our account is in another currency. For example, if Euros then we need to divide 2.

This leads to 2. Its largest subsidiary is the Standard Chartered Bank, which accounts for most of its operations. It offers products and services in the personal, corporate, institutional, and treasury areas.

Establishment: Headquarters: Massachusetts, United States. State Street Corporation offers services to institutional investors and manages financial assets across the globe. It has an employee strength of more than 21, people and has operations across the United States, China, Canada, Australia, Brazil, the United Kingdom, Germany, Belgium, India, Singapore, France, and Italy. XTX Markets Limited is an algorithmic trading firm and liquidity provider in the equity, FX, fixed income, and commodity markets.

The company partners with clients, trading venues, and counterparties across the world. It aims to automate all aspects of the business and become the leading financial technology firm for fair and efficient markets.

For further information review our Privacy Policy. Change Language Select Language. Home Blog Foreign Exchange Companies. Try a free sample List of Top Foreign Exchange Companies in the World: Barclays PLC Establishment: Headquarters: London, United Kingdom Barclays PLC is a leading global financial service provider primarily engaged in credit cards , retail banking, wholesale banking, investment banking, wealth management, and investment management.

BNP Paribas Group Establishment: Headquarters: Paris, France BNP Paribas Group is a leading bank in the Eurozone and a prominent international banking institution. Establishment: Headquarters: New York, United States Citigroup Inc. Deutsche Bank AG Establishment: Headquarters: Frankfurt, Germany Deutsche Bank AG is a leading German multinational bank and financial services company with strong European roots and a global network.

Establishment: Headquarters: New York, United States Goldman Sachs Group, Inc. HSBC Holdings Plc Establishment: Headquarters: London, United Kingdom HSBC Holdings Plc is one of the largest banking and financial service firms across the globe. Royal Bank of Scotland Plc Establishment: Headquarters: Edinburgh, United Kingdom The Royal Bank of Scotland PLC is a leading provider of financial products and services, including fund transfer, trading, loans, insurance, mortgages, credit cards, investments, savings accounts, and online banking services.

UBS AG Establishment: Headquarters: Zürich, Switzerland UBS AG is one of the leading banks in Switzerland that functions as an investment management firm. Standard Chartered Group Establishment: Headquarters: London, United Kingdom Standard Chartered Group is a leading international banking group and a parent company of numerous banks and financial service companies spread across the globe.

State Street Corporation Establishment: Headquarters: Massachusetts, United States State Street Corporation offers services to institutional investors and manages financial assets across the globe. XTX Markets Limited Establishment: Headquarters: London XTX Markets Limited is an algorithmic trading firm and liquidity provider in the equity, FX, fixed income, and commodity markets.

Risk tips : foreign exchange margin trading is high risk and may not be suitable for every investor. Before applying for and entering into any foreign exchange margin trading and price difference contract, you should carefully consider your objectives, financial situation, demand and experience level, And consult an independent professional consultant when necessary.

The role of foreign exchange margin and contract for difference leverage is to amplify your profits and losses. Please make sure that you fully understand the risks before trading, including that the loss of principal may be much higher than your initial investment. If you can't bear the loss, Please do not invest rashly. Before you decide to use our service, please browse the legal document page to download and read our risk tips website terms of use carefully.

Please note that the information on this website is not intended for of any country or jurisdiction that is inconsistent with the laws and regulatory regulations described on the website. YUM Group Global Limited is not a financial advisor and will provide you with general advice and will not give any opinions or suggestions on the acquisition, holding or selling of margin trading. Product Forex Oil Metal Index. MetaTrader 4 MT4 for iphone MT4 for Android MT4 for PC. Trading Issues Trading Guide Trading Rules.

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This is done automatically by the broker handling your account. What do you value most in a forex broker? We have completed over 40, successful payouts, proving to our satisfied customers a new way to profit in business. When the domestic currency has a higher interest rate than the foreign currency the forward swap rate will be lower than the spot rate. It mainly serves trusts, charities, and private companies across the globe. This means you would not be able to trade futures or forward swaps on these accounts. GBE brokers.

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