The post Best International Forex Brokers by Luke Jacobi appeared first on Benzinga. Visit Benzinga to get more great content like this.
Finding the right forex broker for you means working with a broker that complies to the forex broker regulations in your country. You’ll have a significantly larger selection of international brokerages if you live outside the United States.
The Dodd-Frank Wall Street Reform and Consumer Protection Act affected all U.S. federal financial regulatory agencies and the entire U.S. financial services industry, including online forex brokers and the stock market.
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Quicklook: Best International Forex Brokers
- Best for All Types of Traders: FOREX.com
- Best for MT4 Platform: CedarFX
- Best Web-Based Platform: Oanda
- Best for Advanced Traders: IG
4 Best International Forex Brokers
If you want to verify that an international forex broker is registered with the NFA and can accept U.S.-based clients, the NFA provides an online verification system known as the Background Affiliation Status Information Center (BASIC). Enter the broker’s information to verify if it has been approved by the NFA and complies with all regulatory requirements.
1. FOREX.com
Founded in 2001, FOREX.com was one of the internet’s 1st online forex brokers. FOREX.com has offices in New Jersey, London and Tokyo. It’s overseen by the NFA and CFTC in the United States, the Financial Conduct Authority (FCA) in the U.K. and the Japanese Financial Services Agency (JFSA) in Japan. In addition, FOREX.com is regulated by the Investment Industry Regulatory Organization of Canada (IIROC).
This top-tier forex broker offers trading in more than 80 currency pairs, cryptocurrency pairs, CFDs on indexes, metals, energy, commodities and a large selection of U.S. and U.K. stocks. Forex.com accepts clients from around the world, with the exception of Singapore, New Zealand, Iran, Yemen, Belarus and some nations on the list of the Office of Foreign Asset Control (OFAC)
FOREX.com offers the popular MetaTrader 4 and 5 trading platforms from Metaquotes. It also offers mobile and web-based platforms, as well as a proprietary Advanced Trading Platform with integrated trading strategies for more experienced traders. Leverage for major forex currency pairs is 50:1 for U.S.-based clients and 30:1 for clients based in the EU.
The broker requires a minimum deposit of $50 that can be made via credit card or bank transfer. Withdrawals occur within 48 hours of the original request and funds are returned to the originating bank or credit card account. FOREX.com offers novice traders an extensive FAQ section and video tutorials on how to use its trading platforms. Customer support is provided by designated phone numbers in the countries where the firm has a presence.
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FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.
Best For
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
2. CedarFX
A broker located in St. Vincent and the Grenadines, CedarFX is not regulated, although the broker is required to follow all the laws of the country where it’s domiciled.
CedarFx gives traders direct access to global financial markets, with over 170+ tradable assets available through MetaTrader4. You can trade forex, crypto pairs, stocks, indices and commodities through 1 platform!
CedarFX offers excellent support and unlimited opportunities to practice your strategy with the MT4 platform before trading using deposited funds with its free demo accounts.
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Billing itself as the world’s 1st eco-friendly broker, CedarFX makes it easy to trade and give back to the planet. You can choose a 0% Commission Account or an Eco Account — or open multiple accounts to meet all your needs.
CedarFX offers access to a wide range of tradable securities, including stocks, futures, major and exotic forex pairs, cryptocurrencies and more. Though CedarFX could introduce a few additional educational resources, the broker remains a unique option for traders invested in giving back.
Best For
- Forex investors
- Investors interested in 0% commission or eco conscious trading
- Investors looking for 24/7 customer service
- Allows users to offset their carbon footprint
- 0% commission investing
- Offers demo account access
- 24/7 customer service available through live chat
- Eco Account Option (10 trees planted for each lot traded)
- Fast deposits/withdrawls with Bitcoin
- Limited number of educational resources for new investors
3. Oanda
Based in San Francisco and New York City, Oanda was established in 2001. Oanda is one of the world’s largest forex brokers and has a significant international presence with additional offices situated in London, Singapore, Sidney, Tokyo and Toronto. The broker is overseen by the NFA and CFTC in the United States, the IIROC in Canada, the FCA in the U.K., the JFSA in Japan and the Monetary Authority of Singapore (MAS).
Oanda is an electronic communications network/straight-through processing (ECN/STP) broker. It offers leverage of 100:1 to clients in Australia and New Zealand, 50:1 to U.S. clients and 30:1 to clients based in the EU. The broker accepts U.S.-based clients and offers trading in more than 70 currency pairs, as well as CFDs on indices, metals, energy products, commodities and U.K., U.S. and German government bonds.
Platforms available at Oanda include the MetaTrader 4 platform, proprietary desktop and web-based platforms that integrate TradingView charts, and the Oanda API for automated trading. The award-winning broker requires a minimum deposit of $20 to open an account, and its website is available in eight different languages.
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OANDA offers commercial and standard access to the forex market, with over 70 currency pairs to trade. OANDA’s platform is comprehensive, offering a wide range of indicators and charting tools for experts as well as a simple and intuitive layout that’s perfect for beginners.
You won’t find retirement savings or stock trading on OANDA — the platform doesn’t offer any type of trading beyond the forex market. However, the broker does forex trading especially well — though it could stand to offer more in the way of customer service and lower fees.
Best For
- New forex traders looking for an easy-to-use platform
- Mobile traders who need a comprehensive on-the-go offering
- Experienced forex traders who seek a wide selection of charting tools, indicators and currency pairs
- Over 70 unique currency pairs to trade
- Comprehensive and easy-to-understand platform
- Mobile platform improves upon the desktop version
- Only forex trading available
- No retirement accounts available
4. IG Markets
IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs.
The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Advanced traders will revel in the platform’s selection of indicators and charting tools, and its margin rates are easy to understand.
IG’s mobile app continues its commitment to simplicity. It offers full trading capabilities in a streamlined, powerful platform. IG is also 1 of the few forex brokerages we’ve seen offering a native tablet interface on both iOS and Android platforms.
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IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.
Best For
- New forex traders who are still learning the ropes
- Traders who prefer a simple, clean interface
- Forex traders who trade primarily on a tablet
- Easy-to-navigate platform is easy for beginners to master
- Mobile and tablet platforms offer full functionality of the desktop version
- Margin rates are easy to understand and affordable
- Access to over 80 currency pairs
- U.S. traders can currently only trade forex
- Customer service options are lacking
- No 2-factor authentication on mobile
Trading Forex Internationally
In January 2015, the National Futures Association (NFA) imposed limits on the leverage allowed on forex positions and other restrictions on U.S.-based forex traders. Many international forex brokers stopped accepting clients from the U.S. Also, due to the new restrictions, international forex brokers increased in popularity relative to American brokers because they typically give traders better terms than U.S.-based forex brokers.
For example, forex brokers in the United States only allow a maximum leverage ratio of 50:1, while some international brokers offer client leverage up to 3,000:1. This high amount of leverage, while extremely profitable when you’re on the right side of the market, could be disastrous if you hold a losing position, especially if you have limited capital.
Another example is the FIFO regulation. FIFO stands for “first in, first out,” and this rule requires you to liquidate positions in the same currency pair in the order that they were established instead of choosing which opposing transaction to liquidate.
The new U.S. legislation also banned hedging a forex position by taking an opposing position in the same currency pair as 1 already established. Doing this means you effectively hedge the original position and can trade out of both sides individually, which is no longer allowed for U.S.-based forex traders.
Do International Forex Brokers Accept U.S. Clients?
Just because you live in the United States doesn’t mean you can’t trade forex. Many top-tier forex brokers such as IG are based in the United States and also fully comply with the relevant regulations of the NFA and the Commodities Futures Trading Commission (CFTC).
Although many international brokers decided not to accept traders from the United States after the 2015 legislation change, a number of international brokers have elected to become members of the NFA and CFTC and accept U.S. clients. Keep in mind that when a forex broker lacks oversight from a reputable financial regulatory agency, you run a considerable risk when you open an account with them. It’s possible to lose your entire deposit without even making a trade.
Also, if you’re U.S.-based and trade forex through an international broker licensed in the United States, your account will be subject to CFTC and NFA rules and restrictions. This means that regardless of the amount of leverage or other features offered by the international broker, you must adhere to the 50:1 U.S. leverage limit, the FIFO rule, the no-hedging rule and any other relevant U.S. forex account restrictions.
What Makes the Best International Forex Brokers?
Finding the best forex broker for you could take some effort and depends in part on where you’re based. For example, if you live in the U.S., your choices are somewhat limited to those relatively few brokers that accept U.S. clients. Nevertheless, if you live outside of the U.S., you have a large number of online brokers to choose from.
International forex brokers that offer their services to U.S. clients tend to be the largest and best capitalized since the process of registering and complying with CFTC and NFA regulations requires a significant initial investment and cash reserve amount. Keep in mind that not all forex brokers are created equal, so make sure you carefully consider your needs before you open an account.
Outside of the United States, a wide choice of brokers exists, and some brokers offer leverage of as much as 3,000:1. Regardless of where you live, choose a broker regulated by a reputable government agency such as the U.K. Financial Conduct Authority (FCA) or the Cyprus Securities and Exchange Commission (CySEC).
If you have little or no experience in the forex market, read Benzinga’s best forex broker for beginners, which can offer a large selection of educational material, including videos, podcasts, audio and printed articles. Large international forex brokers, such as Oanda and FOREX.com, offer educational material to less-experienced clients and they also accept U.S.-based customers.
Trade Forex Internationally with These Top Brokers
The best international forex brokers can satisfy your needs as a trader. Despite restrictive forex regulations in the United States, U.S.-based forex traders can operate in the forex market much like traders who live elsewhere, although the rather low leverage ratios and lack of hedging imposed by U.S. regulators can seem stifling for some trading strategies.
Related content:
- Best Forex Brokers in Singapore
- BEST ASIC-REGULATED FOREX BROKERS
The post Best International Forex Brokers by Luke Jacobi appeared first on Benzinga. Visit Benzinga to get more great content like this.
