Fair Forex Brokers is the leading resource on online trading, be it in forex, CFDs, cryptocurrencies or other financial instruments. Other than broker reviews, our site reviews trading signal providers and auto trading robots. We have not only created advanced trading guides, a trading academy, trading software reviews and but also frequently introduce traders about latest news in the industry as well as potentially dangerous services. The biggest advantage for readers are the tested brokers, recommended by Fair Forex Brokers. Below you can find the the best brokers as judged by our experts.
Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
While you will find many offers to trade forex online, many find it hard to grasp what are the fair forex brokers and how does one trade on fair forex. The term forex is short for foreign exchange. When we talk about forex, we mean exchange of foreign currencies. The term Forex stands for the global market for currencies.
This is the world’s biggest financial market where daily trading volumes reach up to 5 trillion USD. Online trading on forex makes just a part of the overall trading that takes place there. Imagine a car company, like Volkswagen, that needs to import car parts for its German production facilities, from Canada. In order to pay for the order, they need Canadian dollar (CAD), but they earn their money in EUR. Then they will use forex to exchange their EUR for CAD in order to pay their suppliers in Canada. Daily there are millions such transactions, big and small, that take place on forex market, opening various opportunities for traders to try to predict how currencies will move and try to earn some money from it. This is not always easy, and there are risks involved, as with any transaction in the financial market.
Forex trading is the most popular way of trading nowadays. The underlying asset in this case, are currency pairs, and most brokers offer a great variety of major and minor pairs. The most interesting thing is that traders never have to actually own a currency as they are trading foreign exchange (or forex) contracts for difference, and not the currency itself. Traders can trade with many licensed and well-regulated brokers that offer trading with user-friendly minimum deposits that start at only $10 in some cases.
Forex trading is legal in many countries, however, every country or entire region like the European Economic Area, has a specific attitude towards online trading via forex, CFDs, cryptos or binary options, so it is recommended to check with the local regulator. Thanks to market regulation, the trading environment has become more reliable for the traders. In Europe (EU) brokers can obtain licenses by CySEC, FCA and other national bodies. Thanks to the EU MiFID directive, all the brokers regulated by one regulator have access to the complete EU single market in financial services through the Union wide passporting rules. It is then up to national regulators to specify rules that should apply in their jurisdiction.
However, since August 2018, the European Securities and Markets Authority (ESMA) has prohibited the marketing, distribution and sale of binary options to retail investors in the European Economic Area. The ESMA has also enforced certain restrictions on contracts for difference (CFDs) trading for retail investors, such as leverage limits, margin close out rules and the use of specific warnings which should be delivered in a standardised way.
Fair Forex Brokers recommends only trading with regulated brokers no matter the country you are coming from.
If you go online, you will find many forex brokers guides about how to trade currencies on forex. Many of them focus on the financial analysis part, however, many beginners have issues understanding the basic concept that is behind the trading process, let alone complicated financial analysis.
Online brokers are companies that offer the service of trading on a platform with different assets, depending on their area of expertise. Best forex and binary brokers offer trading on multiple devices, demo accounts, reasonable minimum deposit, and user-friendly terms and conditions. We have done all in our power to create objective reviews in order to make sure traders get the relevant information about the best binary options, CFD and forex brokers.
Traders can read about special features these online brokers offer, their trading platform, bonuses, deposits, withdrawals and more! All the relevant info we compiled in our broker review pages is presented in a way that is easy to understand. We have listed some features and conditions that can make or break the trading experience with forex brokers.
First and foremost, make sure to check out our forex list. There, you will find several brokers we believe offer the best trading conditions, and solid trading experience. But, never select the broker only based on web design and logo. Here are some tips on how to compare forex brokers before you start trading.
One of the best ways to do a proper broker comparison is to check the trading conditions: minimum deposit, spreads, leverage, maybe even bonuses, and not to forget – withdrawal conditions. Also, check out the account types available and do some math to see how many contracts you can buy for a minimum deposit and how will minimum trade requirements affect your trading liquidity.
Check out the reviews to find out what platforms are offered. Most forex brokers offer multiple trading platforms. If both brokers offer the same type of platform, look for a mobile trading app or a demo trading account. Not all brokers have the same level of service even if they have the same platform provider. Check their lists of underlying assets and find one that suits you better.
Most brokers you will encounter in our reviews are regulated, brokers. That means that they have a license for operating their business provided by at least one regulatory body. It is always a wise decision to trade with a regulated broker, as traders get an additional safety net in case they find it troublesome to communicate with their broker. Also, regulated brokers have to oblige many rules and regulations in order to keep their license which means a higher level of customer protection for you.
Spread is the difference between ask and bid price. For example, in forex trading, the EURUSD pair may be valued at 1.1234. However, if you wish to buy EURUSD contract, you have to pay the ask price that can be somewhat higher – for example, 1.1236. The seller gets for example 1.1232. The difference between the ask and bid price, 0.0004 is called a spread – 4 pips in this case. Even though it seems quite insignificant, try to do the same math with large numbers and you will quickly notice how your perception of the importance of spread might change. Learn more about spreads and forex/CFD trading.
You will notice some forex brokers do not have spreads for EURUSD (its 0 pips), or they are much lower in general. These brokers are so called ECN brokers which route orders directly to the liquidity market. They will not charge spreads, but they do charge commissions for each trade placed and closed. The commission can range from few USD to even $22 in some cases. For small traders spreads will mostly be more interesting since they do not like paying commissions that are a huge proportion of their trading margin. However, commissions are fixed costs for large traders and they prefer them to spreads. Brokers that have ECN execution are FXTM or IronFX which offers bot kinds of accounts.
Forex, binary options, CFD and cryptocurrency brokers are companies that are offering customers to trade based on underlying assets, but the trading takes place at a special software platform integrated on the website or downloaded on a computer. Some brokers prefer to develop their own trading platforms, also called proprietary platforms, while others simply outsource the platform development to reliable software companies. Here, we will list some of the most popular online CFDs trading platforms.
Remember these 0,0050 that were earned as trading income in our example. Traders usually don’t speak in these absolute numbers since exchange rates movements are not that big on a daily or monthly basis most of the time. Each 1/10000 of the exchange rate, they call a pip. Meaning that what was earned in the previous example was 50 pips. This is the way traders count movements.
0.5 USD seems like a really low amount to win with 100 EUR invested, right? Seems easier just to wait for a year to get similar return by depositing the money in a bank. This is where leverage comes in. In forex, but in CFDs trading as well, as we will see below, traders can use the leverage to move more money in total, per trade. It works like a lever – you invest 100 of your own money, but by using leverage, the lever enables you to raise several times more money which you can use for trading.
If leverage is 1:10, it means that instead of buying just 100 EUR with your USD as in our example, you can actually get 1000 EUR, or 10 times more by investing 1141.2 USD to buy 10 times as much EUR, with only 114.12 USD of your own money. In this case you have not earned 0.5 USD after the exchange rate rose and you sold EUR back for USD, but you actually manage to gain 10 times more – 5 USD. And these changes in exchange rate happen all the time, in both directions – with or against your prediction.
Leverage works other way too, you can lose more money than otherwise – in this case, if it was opposite, you would have lost 5 USD. If you lose too much, you get a popular margin call, meaning that your account has incurred so many losses that the broker won’t allow more trading unless you deposit more. The required margin is the amount of money you need to have on your account to execute the trade and cover potential losses. In our example, after you invest 100 you have to have money in your trading account left in case the price moves so much against your prediction that your loss exceeds your initial investment.
When you start trading, you will notice that for buy or sell orders the price is not the same. The highest price currency will be sold for is ASK – the asking price. The highest price someone is ready to pay or bid for currency or the asset – to buy it, is called BID. The spread is the difference between these two. Bid is always lower than the ask.
If you are buying EURUSD you will pay, for example, 1.0734 – the asking price (ask), but if you want to sell, so you can sell at 1.0730, the highest price everyone else is also bidding (bid). You notice that the fact that bid is lower than the ask means that if you did buy-sell operation instantly, you would be in small loss. In this case its 4 pips. The spread is wider when there is not much liquidity – meaning not many people are buying or selling and vice versa. The spread is the cost of brokerage services.
Spread can be variable which means that it is not the same at every point in time meaning that this cost will not remain stable through the time you are holding the open position/trade. Some brokers and platforms also offer fixed spreads which then guarantee traders they will always have the same spreads – meaning stable costs. Same rules apply to the CFD trading which we will cover below.
Regulatory framework may vary from country to country. While some countries rely on restrictions, others prefer to follow international trends in regulation of online brokers.
Find out how brokers are regulated in your country!
The United States has a very clear and strict regulatory framework regarding forex, binary, CFDs and crypto brokers. The main regulatory body is the CFTC, that also provides the regulation for NADEX, one of the biggest forex and binary exchanges in the USA. If you prefer to trade cryptocurrencies on exchanges, bear in mind that their regulation is more complex and harder to navigate as it involves Securities and Exchange Commission, Commodity Futures Trading Commission, Internal Revenue Service and Department of Treasury.
ASIC is the main regulatory body for forex, crypto, binary and CFD brokers in Australia. They have a high set of standards, so not many brokers have their license. Even though there are several documents regarding cryptocurrencies trading regulations, there is still no distinctive act. It can be presumed how ASIC will provide licenses for crypto trading as well. At the moment, cryptocurrency brokers in Australia have no special regulatory status.
All brokers in South Africa are regulated by the FSB, that also regulates the Johannesburg Stock Exchange.
Forex, binary and CFDs brokers prefer CySEC regulation as it opens the doors to multiple markets (basically, all members of the EU). However, some countries prefer stricter and more localized approach. For example, In Belgium binary options trading is completely banned, while in France there is no advertising of such services allowed.
Besides CySEC, in the European Union traders can also regulate with brokers regulated by BaFin (Germany), AMF (France), Finma (Switzerland), etc.
FMA is the regulatory body for online brokers in New Zealand. They have high standards and a license that is somewhat difficult to acquire.
Payment methods are transaction methods for depositing and withdrawing. The number of payment methods available with a single broker may vary not only on the broker but your geolocation as well, as some methods are highly localized. Still, bank wire and credit cards are supported by almost all brokers.
Payment methods are:
Minimum deposit is the minimum amount you have to deposit with a binary, forex, crypto or CFD broker in order to use their trading service. This is the one you use to place trades. If you read our broker review carefully, you will find out how minimum deposits vary, not only depending on the broker brand but also depending on the broker type. For example, most binary options brokers require a minimum deposit in the amount of $250, and only a few have lower minimum deposit limits. On the other hand, forex, CFDs and cryptocurrency trading brokers offer trading for as little as $1 or $10 minimum deposit.
CFDs are acronym for Contracts for Difference and we will try to explain it in more details in our CFD trading guide. It’s a type of financial instrument that makes it possible for traders to win, or lose, on the difference between the strike price and the closing price of an asset. Strike price is the price that some asset had in the moment you bought a CFD. Let’s say you bought CFD based on price of Apple stock that cost 150 USD per share.
If you think the price will rise from that point, you are entering a “long” position by buying. If you believe it will fall, you will enter “short” position by selling. When you close the contract and your expectation was correct, you will get profit based on the difference between the price you bought at (strike price) and the price the contract was sold at (closing price). If you predicted wrong, the broker deducts the difference from your trading account.
With CFDs you can trade based on almost any assets that can be used as the underlying asset for the contract. It’s not just currencies, like with forex – you can enter trades based on price of gold, wheat and other commodities. Also, stocks, options, bonds and other instruments can be used as underlying asset for a CFD enabling traders to virtually enter every global market. The asset list that is offered mostly depends on the broker that offers CFDs and their platform, but nonetheless, the flexibility and simplicity of this kind of trading literally puts global market at the palm of everyone’s hand. Just launch the platform and start trading!
Cryptocurrencies have slowly taken the spotlight. After a whole decade in shadows, they are now the stars of online trading. Great increase in price of Bitcoin, forced traders (and market specialists, scientists, and analysts) to finally pay attention to this underground trend.
Meanwhile, many CFDs brokers offer cryptocurrency trading which has seen increased interest ever since Bitcoin first time hit $1000 few years back. Since the prices, in terms of USD, skyrocketed in 2017, traders are eager to profit from the upward trend that seems to be the norm, but also want to ride the huge volatility that makes cryptocurrencies so risky.
Some brokers offer outright buying and exchange of cryptocurrencies, like eToro. Others offer CFDs which can in many cases make more sense since one is not stuck owning a very volatile cryptocurrency and one can also trade agains the price. In this case, many treat cryptocurrencies like FX pairs, meaning the prices are set against EUR or USD. So you trade BTCUSD like any other currency pair. Some have BTC as CFD instrument where one trades on the USD price, which is basically the same.
Leverage is a certain amount of money provided by the forex or CFDs broker that traders can use to increase their invested amount. For example, when using a leverage of 1:100, you actually multiply the volume of contracts for 100 times, which means more profit for you in case your trades are successful. This is also called margin trading, since all trader needs to do is ensure that it has enough margin (in this case, 1%) to cover the positions. Don’t mistake leverage for binary options bonuses. Leverage has terms that apply and in case your trades are not going as expected and your margin cannot cover potential losses, you’ll receive a margin call. This means you need to deposit more or close the positions. Read a simple explanation here.
Leverage – Use borrowed capital to increase the return of your investment
One of the main characteristics of different types of brokers is the underlying assets portfolio. While some traders believe the more assets they have available the merrier, that is not necessarily the truth. It is, most of all, important that the broker supports the assets and types of trading you are interested in.
Forex brokers offer currency pairs that are the basic of forex trading in general, they can also include forex – currency pairs, stocks, options, ETFs, commodities, indices and cryptocurrencies.
Binary brokers usually offer a great variety of underlying assets, including commodities, currencies, indices, and stocks, but not as broad as with CFD brokers. CFDs contracts are usually based on stocks, commodities and bonds, but also other types of assets. Forex sometimes offer CFDs contracts and vice versa simply becuse its the same instrument, just different assets.
Cryptocurrencies can be offered by crypto brokers, forex brokers, binary and CFDs brokers. If you want to buy and sell cryptocurrencies, not just bet on them, it is better (although more complicated and risky) to use a crypto exchange.
Fair Binary Options (FBO) is a binary options affiliate website with a mission to represent a truly fair approach to binary options and the trading industry in general. Our vision is to be the first choice gateway to binary options, offering best broker and trading advice coupled with a useful education platform.
FairBinaryOptions.com was first launched in October 2012 by a team of inspired people with affiliate industry background and years of experience.
Since the launch, many clients recognized the values that Fair Binary Options stands for. As already indicated, our mission is driven by client focused values, with the goal of providing the best trading support for all users. Our values are reflected across all our activities – from the trading strategies we offer on daily basis, free signals for registered users, to an honest approach to broker reviews and customer treatment. All our reviews reflect our thoughts and experience, and we take great pride on the quality of our approach.
Since we started, we have been regularly communicating with our customers, trying to support them as they trade. We represent their interests with brokers, and have no problem removing brokers, who don’t act in accordance to our values, from our list. We are working hard to ensure that all of our recommended brokers conform to highest standards when dealing with clients.
By providing rich educational opportunities, we are in essence investing in our clients. Our goal is to help them get better at trading while they gain understanding of the market. It is important for us to communicate the fact that, as with anything else, passion and hard work will get you results. We don’t advertise “how to get rich fast” schemes but try to explain how to trade and earn profits by becoming a smart investor.
This is what we believe makes a great online destination for everyone interested in binary options – but we are never done. Our goal is to add new features and innovate as we grow, and we invite all readers to take this path, and grow with us. Check out the trading academy, new weekly strategies, daily signals, our reviews and the fun and educational video section. As always, contact us if you may have any questions, we are there for you.
Our website was an iGB Award winning binary options portal. As the industry has recognized the importance of our website with two iGB awards, as the iGB Awards Best Binary Affiliate 2014 and iGB Awards Best Finance Affiliate 2015, we are sure our visitors will come to realize all the advantages it offers. As the best Affiliate website for finance in two consecutive years, we feature a range of services that are beneficial to traders and to those who are trying to get credible information on binary options.
Fair Binary Options started it’s transformation towards Fair Forex Brokers in 2018. and switched focus from binary options to forex and CFD trading.
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Fair Forex Brokers puts a lot of time and energy into following the latest trends and providing a balanced insight into the world of trading, whether it is crypto, forex, binary or CFDs. This is our mission from the very start, when there was still a Wild West situation on the market, without proper regulatory framework. We strive to keep up with the latest market trends and review the newest brokers on the market. FFB also reviews other types of trading products and gives traders a deeper insight on binary and forex trading robots software.
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