How to choose the best forex broker
Not all forex brokers are created equal – and when you’re trading forex, you need the best of the best. Discover how to choose the best forex broker for your trading needs with us, the world’s No.1 CFD provider.1
Start trading today. Call +65 6390 5133 between 9am and 6pm (SGT) on weekdays or email accountopening@ig.com.sg for account opening enquiries.
Start trading today. Call +65 6390 5133 between 9am and 6pm (SGT) on weekdays or email accountopening@ig.com.sg for account opening enquiries.
Start trading today. Call +65 6390 5133 between 9am and 6pm (SGT) on weekdays or email accountopening@ig.com.sg for account opening enquiries.
Start trading today. Call +65 6390 5133 between 9am and 6pm (SGT) on weekdays or email accountopening@ig.com.sg for account opening enquiries.
What is a forex broker?
A forex (FX) broker is an individual or an institution who facilitates the buying and selling of foreign currency for you as a trader. We’re an example of a forex broker, as our platform acts as the ‘middleman’ that enables you to predict on the value of a forex pair without actually having to buy any physical currencies.
What is forex trading?
Forex trading is the practice of predicting on the price of a currency as measured against the price of another currency (for example, how strong the British pound is compared to the US dollar.) Because you’re not actually taking ownership of any notes or coins outright, but instead predicting on their value, you as the trader need a platform to predict on. The provider of this platform is your brokerage, or broker.
Find out more about trading forex
How does a forex brokerage account work?
Forex brokerage accounts work in slightly different ways depending on the region you trade in, so how it’ll work will be determined by which broker you choose. We try to make our forex accounts simple to use.
The following is a summary of how a forex brokerage account will work:
- A forex brokerage account is either an investing account (where you buy actual currencies and own the money outright) or a trading account (where you’ll predict on currencies’ values in the market.) With us, you’d open a contracts for difference (CFDs*) trading account, which we’ll explain a bit further on
- Because the forex market never sleeps, a good forex brokerage will give you 24/5 access to foreign exchange trading. With us, you can trade forex from 9pm Sunday to 10pm Friday (UK time). These long trading hours are made possible because forex transactions are completed over the counter (OTC), rather than through a central exchange
- You’ll then need to select a currency pair to trade in. With us, you can trade over 80 currency pairs, including major pairs like GBP/USD and EUR/USD, but also more minor and exotic pairs like USD/ZAR or AUD/CNH
- Forex is traded in lots. These are standardised ‘batch sizes’ of currency pairs you can predict with. For example, a standard lot is 100,000 units of the base currency – but you can get smaller denominations as well. So, before you get started, you’ll need to determine the lot size and amount you’re comfortable with spending
- Remember, it’s not just about lots – both your position size, as well as the price of the instrument, need to be factored into the cost. Plus, other fees and charges may apply
- The way a forex brokerage account works is that you are in charge, not a fund manager. So, you’ll need to watch and study the market movements of the currencies you’re trading on and keep close watch of any open positions, setting alerts so as to not miss any significant moves
- For the same reason, you’ll also want a good risk management strategy in place to maximise your chance of profits and minimise your chances of a loss
*CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.
Want to try trading with us? We’re the world’s No.1 CFD provider1 and have over 313,000 clients worldwide.
How to choose a forex broker
The forex market is the biggest, most liquid (and often the most volatile) market in the world – so you really want a forex broker you can rely on. Here are nine factors to consider when choosing a foreign exchange broker:
- Regulatory compliance
- Leverage and margin amounts
- Spread and commission rate
- Deposits and withdrawals
- Trading platforms
- Trading hours
- Amount of forex markets available
- Educational tools available
- Customer service
Regulatory compliance
The first and foremost thought in your mind when choosing a broker is that they strictly adhere to the law. You want to partner with someone who’s above board –these institutions are handling your forex transactions, after all.
IG Group is a trusted entity regulated by numerous regulators across the globe, including the FCA, BaFin, ASIC, NFA, CFTC. These regulatory bodies impose stringent requirements that govern our operations, ensuring transparency and adherence to ethical standards.
IG’s business in Singapore is regulated by the Monetary Authority of Singapore (MAS).
We are subject to the Singapore client money protection rules prescribed under the Securities and Futures Act and the Securities and Futures (Licensing and Conduct of Business) Regulations. These rules stipulate how we may hold and handle moneys that belong to our clients. We comply fully with these rules at all times. Your money is totally ringfenced – we’re not allowed to use the money you trade with for our business activities. It also means that your money is completely protected in the unlikely event that we became insolvent.
Leverage and margin amounts
The levels of leverage and margin amounts available to you is also a crucial factor in your decision.
Leverage is a feature of some trading instruments. It means that the majority of your position size is, essentially, borrowed from your broker. When opening a forex trade, you’ll put down a percentage of its value, known as margin, and your broker will put up the rest.
It also means that your initial outlay to open a trade is only a fraction of the position’s actual size, but both profits and losses are calculated based on the trade’s full value. This means both profits and losses can substantially outweigh your margin amount.
Your total exposure compared to your margin is known as the leverage ratio.
A high amount of leverage means you can make far more with a small amount of capital than you could otherwise. However, it also means you’re at risk of losses far outweighing your position size, and you’d forfeit that entire amount if your prediction is incorrect.
When researching forex brokers, you might come across extremely high leverage ratios – but be aware, using excessive leverage puts you at risk to enormous losses, which could cripple your trading strategy.
Here are some more margin and leverage specifics on some of our most popular currency pairs:
| FX pair | Retail margin | Leverage equivalent | Value per point (standard*) |
EUR/USD |
5% |
1:20 |
$10 |
GBP/USD |
5% |
1:20 |
$10 |
EUR/GBP |
5% |
1:20 |
£10 |
AUD/USD |
5% |
1:20 |
$10 |
USD/CAD |
5% |
1:20 |
CAD10 |
USD/JPY |
5% |
1:20 |
Y1000 |
*View the mini value per point here.
Spread and commission rate
The margin rate you’ll pay to open a position isn’t the only amount you’ll pay. When trading forex, you don’t pay any commission to us – but you will pay for something known as ‘the spread.’
The spread is the difference between the buy and sell prices when you open a forex trade. In most cases, we charge our own spread on top of the market spread, as our fee for the trade. These charges apply to CFD trades with forex.
The spread amounts are largely determined by the market’s economic conditions. The more volatile a market is, the wider the spread will become in order to manage the volatility. We can usually offer our minimum spread, but when market prices go wider, our spread will increase.
These are the minimum spread amounts on some of the most popular FX pairs:
Deposits and withdrawals
With many forex brokers, there’ll be additional fees involved in trading. It’s important to know what these are before you choose to do business with them.
Hidden charges can rear their heads particularly when it’s time to:
- Make your first initial deposit to begin forex trading
- Make deposits into your account thereafter
- Withdraw your profits as funds
With us, there’s no minimum deposit amount* you’re required to make for bank transfers – although you can also deposit via credit or debit card for a fee. When setting up your forex trading account, you also don’t need to fund your account to make it ‘valid’, as with some brokers.
Learn more about depositing with us
We also try to make depositing seamless. You can deposit funds with a credit card, debit card, FAST transfer/bank transfer, TT, and others.
Successful card payments are deposited immediately, and FAST transfers/bank transfers can take up one to two working days, depending on the time you have made the deposit. In the meantime, for bank transfers, you can upload a proof of payment to trade with the funds right away. This proof of payment is only available after the first initial funding and trade.
Want to withdraw funds? With us, it’s absolutely free. You can withdraw them with bank transfers and via most credit or debit cards.Withdrawals back to a card typically take between two and five bank working days to clear. Withdrawals by bank transfer can take between one to two working days to clear.
Withdrawals requiring a currency conversion at the prevailing spot rate will be subject to a conversion charge of 0.5%. These requests are processed manually and may take longer to reflect in your account.
Find out more about withdrawing your money
* The minimum amount for a card payment is S$450, and there is no minimum for a bank transfer. The minimum deposit is shown on the payment screen when you go to process the payment.
Trading platforms
All forex brokers use some sort of platform – the tool you’ll use to place your actual forex trade. But not all platforms are created equal, and not all brokers have the same variety of platforms to choose from.
We’re proud to have award-winning trading platforms and app to trade on.2
In terms of the variety of platforms you can trade on with us, there are a few to choose from. Apart from our fully mobile-friendly platform and app, clients can trade on ProRealTime and our DMA (direct market access) platform L2 Dealer. We also offer MetaTrader 4 (MT4) – a well-known third-party platform used worldwide.
Trading hours
The world of forex never sleeps. It’s the biggest and most liquid market on the planet, with individuals, companies and banks carrying out trillions of dollars’ worth of forex transactions every single day.
The major forex centres are London, New York, Tokyo, and Sydney, but within those locales thousands of different currencies change hands, from countries with time zones completely different to each other. All this makes forex an international, 24-hour market.
For this reason, it’s vital to choose a forex broker that can offer you as many trading hours as possible. For example, a trader based in the UK, trading on the USD/AUD currency pair, for instance, will know that New York trading hours only start at 12pm UK time, while Australia’s trading day only begins at 9pm at night.
Illustration below in UK time:
Find out the best hours to trade forex
Amount of forex markets available
Of course, as a forex trader, you don’t only want the maximum amount of hours available – you’ll also want the most currency pairs, to find the one that best fits with your trading style and strategy. That’s because each currency pair has it’s own unique advantages and disadvantages, levels of volatility and opportunities.
We have more than 80 of the world’s most popular currency pairs to trade, including:
- Major pairs like GBP/USD, EUR/USD, GBP/EUR, and USD/JPY
- Minor pairs like CAD/CHF, USD/ZAR, and SGD/JPY
- Emerging currency pairs like USD/CNH and AUD/CNH
- Exotic pairs like EUR/CZK, TRY/JPY, and USD/MXN
We also have different ways that you can trade all these currencies: in real-time (known as spot trading), with longer-term futures positions via FX options.
Educational tools available
Finding an online broker that offers plenty of training materials and learning resources on forex is also beneficial. Simply put, the more you know about FX trading, the more likely you are to succeed in your trading journey and maximise your chances of making profits while minimising your chances of suffering losses.
You can improve your trading knowledge and skills with IG Academy. This tool that offers courses for you to learn at your own pace – for free. You can then put your new skills to the test by opening a free demo trading account, along with S$200,000 in virtual funds to practice with before forex trading live. Apart from this, we also have both strategy tips, news and analysis articles and our own in-house analysts to help you understand what’s happening in the forex market right now.
Customer service
Of course, there are times you’ll need support, no matter how good your strategy is. Not only do you want to choose an online trading broker that’s got a good platform, but you also want them to help you when you have questions.
This is especially crucial for forex traders where trading can be done at irregular hours, but a lot of platforms are based in other countries. If that’s the case, what are their customer support hours? Will they be able to field your queries when you need them? Always consider lines of communication and immediate availability when choosing your broker.
Our customer support is available by phone or email – 24 hours a day, from Monday to Friday. This is especially designed to be helpful to forex traders – a lot of whom trade outside of regular office hours and make use of Twitter for FX trading tips.
If you’re a beginner forex trader who’s yet to start trading with us, you can also make use of our client services team for a one-on-one walk through of our platform while setting up your account.
UK forex broker comparison
To see how we stack up to the competition, see five of the most prominent forex brokers in the UK compared. Including us – we’re the No.1 trading platform in both the UK and the world.1
| IG | eToro | Trading 212 | CMC Markets | Plus500 | |
| Accounts | Spread betting, CFD trading and share dealing accounts available, plus managed portfolios | One account for CFD trading and share dealing | CFD trading, share dealing | Spread betting, CFD trading | CFD trading only |
| Currencies pairs | More than 80 currency pairs worldwide, including major, minor, exotic and emerging market pairs | More than 45 currency pairs | More than 80 currency pairs | More than 80 currency pairs | More than 80 currency pairs |
| Forex markets | We have over 18,000 markets on offer, including forex markets | Over 2000 markets, including forex markets | Over 10,000 markets, including forex markets | Over 11,000 markets, including forex markets | Over 2000 markets, including forex markets |
| Trading hours | 24/5 trading on all forex pairs, with weekend and out of hours trading for the world’s most major pairs | No 24/7 trading or after hours trading on stocks | No 24/7 trading on forex | 24/5 trading for forex, Mondays to Fridays | 24/5 trading for forex |
| Trading platforms | You can trade on the web, our app, L2 Dealer, MT4 and ProRealTime | Web and app platforms only | Web and app platforms only | Web, app and MT4 platforms available | Web and app platforms only |
| Educational tools | Upskill yourself with IG Academy. Plus, get news and strategy tips from Reuters and our in-house analysts and trading signals – all free of charge | Academy and news from in-house analysts | Community forum and help centre | News from in-house analysts | News from in-house analysts |
| Based in | UK | Israel | Estonia | UK | Israel |
| Customer service | 24/7 phone support in the UK, plus 24/7 email and Twitter support | No phone support. Live chat and email support from Monday to Friday | No phone support. Live chat and email support 24/7 | Phone and email support from Monday to Friday | No phone support. Live chat, WhatsApp and email support 24/7 |
What’s the best forex broker for you?
The best forex broker for you will depend on your trading style and the goals you hope to achieve. Whatever those may be, the right forex broker for you will have:
- The market hours that you’ll most want to trade, depending on your chosen currency pair – we have 24/5 trading from 9pm Sunday to 10pm Friday (UK time)
- A platform that works for your needs – we offer our classic platform, mobile app, ProRealTime, L2 Dealer, and MT4
Ultimately, the only way to find out which forex brokerage is right for you is to try platforms out and see what works for your specific FX strategy.
How to start forex trading with us
Ready to give us a try? Follow these three steps :
- Fill in a form. Here, we’ll ask about your trading knowledge to ensure you get the best experience
- Get verification – this is completed as soon as possible
- Fund your account and start trading
FAQs
Do I need a broker for forex trading?
Yes, you do. When you trade forex, it’s always done on a platform that enables you to predict on the prices of currency pairs. The owner of this platform (who also facilitates your transactions) is the forex broker.
When is a bad time to trade forex?
This depends on your forex broker – and what kind of times they offer. The forex market itself is open 24/7. We offer forex trading 24/5.
Learn more about the best time of day to trade forex with our analysts
Which day is the best day to trade forex?
Again, this will vary vastly depending on the currency pair you choose to trade on. The ‘Monday effect’*from shares trading can apply to forex, but it all depends on the markets’ hours you’re trading.
*One of the most popular and long-believed theories is that the best time of the week to buy shares is on a Monday. The wisdom behind this is that the general momentum of the stock market will, come Monday morning, follow the trajectory it was on when the markets closed.
Is it good to trade forex at night?
This depends on which currency pair you’re trading, and what time of the day their respective markets are open. If you’re trading USD/JPY, for example, trading forex at night (UK time) will be very different to trading GBP/EUR at the same time.
Try these next
Trade FX in real-time and harness the volatility of spot trading
Predict what the FX market will do on a predefined expiry date
Mitigate against CFD forex trading risk with our range of stop and limit orders, and keep an eye on CFD forex prices with customisable alerts
1 Based on revenue (published financial statements, October 2022)
2 Awarded the Best Online Trading Platform by Influential Brands in 2019 and 2022.
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