Brokers

Where to trade online is an important part of trading. I have tried many different brokers and services.

I finally ended up with a couple of brokers I prefer to use. Each broker has its own strengths that give me a reason to use them.

I use or have used the following brokers for Forex and CFD trading:
At these brokers, I trade/have traded day trading, swing trading and position trading strategies on Forex, Index CFDs, Commodities CFDs, Metals, ETFs and Stocks.
I recommend these brokers for the following reasons:
  1.  I trust the broker. I have been trading for a few years with this broker and I have made deposits and withdrawals without any problems. It is regulated in various jurisdictions.
  2. The broker offers an easy to use online platform for trade execution and trade management. Specifically, the position sizing is very easy to do on the platform. Most brokers offer platforms for trade execution that make position sizing overly complicated.
  3. I have found the instrument prices to be accurate.
  4. I have found the spreads/trading costs to be reasonable.
  5. I have found the trade execution to be precise enough for my style of trading.
  6. This broker offers a non-expiring practice account, which you can use to test and trade new strategies against live markets without risking any real money until you are ready to trade live.
  7. This broker offers many additional tools and services that will help you in your trading.

Pros and Cons of each broker

Each broker has it's pros and cons. I will mention the pros and cons that I have experienced with each broker.

Etoro

Broker type: Market Maker
Percentage of profitable clients: 75%
Pros
  • Social trading platform
  • Choose your leverage
  • Trade without leverage
  • Own real crypto, ETFs, and stocks if trading without leverage
Cons:
  • High spreads on Forex
  • Overnight funding on Forex is not the cheapest, but OK
  • The account can only be held in US Dollars. If you deposit anything else, you will have to pay for conversion to USD.
  • There is a withdrawal fee
  • European clients are placed under the Cysec regulated holding.
Best used for: Trading in unleveraged stocks, ETFs and Cryptocurrencies

Markets

Broker type: Market Maker
Percentage of profitable clients: 81%
Pros
  • Wide choice of assets to trade on one platform
  • Low spreads (introduced with MarketX)
  • Nice charting by Tradingview
  • Easy order entry and trade management
  • Easy and free deposit and withdrawal with a credit card or bank card.
Cons:
  • Daily candle data not always correctly displayed
  • The mobile app has very limited capabilities to trade
  • Overnight funding on Forex is expensive
  • European clients are placed under the Cysec regulated holding.
Best used for: Day trading

Plus500

Broker type: Market Maker
Percentage of profitable clients: 76%
Pros
  • Wide choice of assets to trade on one platform
  • CFDs of options on stocks, indices, and currencies are available
  • Low spreads
  • Easy order entry and trade management
  • Easy and free deposit and withdrawal with a credit card or bank card.
  • The mobile app will show your positions on a chart.
  • European clients are placed under the Cysec regulated holding.
Cons:
  • Very simple charting
  • Overnight funding on Forex is not the cheapest, but OK
Best used for: Day trading and swing trading

Oanda

Broker type: Market Maker
Percentage of profitable clients: 73%
Pros
  • Great web trading platform with integrated Tradingview charts
  • Maybe the best mobile trading app (FXTrade)
  • Metatrader platform available if you want to use that
  • Reliable data and execution of trades
  • API is available for automated backtesting and trading
  • Overnight funding on Forex is the cheapest
  • Medium spreads
  • Easy order entry and trade management
  • Easy and free deposit and withdrawal with a credit card or bank card (one free withdrawal per month).
  • European clients are placed under the FCA regulated holding.
Cons:
  • Limited choice of assets to trade. US clients can only trade Forex. Oanda does not offer stocks or cryptocurrency trading.
  • Spreads can widen significantly right after the New York close when the markets are quiet and the liquidity is low. Also during news events spread can widen a lot.
Best used for: Swing trading and position trading in Forex and CFDs on indices, bonds, commodities, and metals.

FXopen (UK)

FXopen

Broker type: ECN or STP
Percentage of profitable clients: 57%
Pros:
  • Low spreads, rebates available
  • Overnight funding on Forex is cheap
  • Metatrader platform
  • Easy and free deposit and withdrawal with a credit card. Free bank withdrawals in GBP
  • European clients are placed under the FCA regulated holding.
Cons:
  • Metatrader charts are not the best and it is all that is offered.
  • Limited choice of assets to trade. FXopen offers Forex and CFDs on commodities, indices, and metals. Cryptocurrencies can be traded in a separate Metatrader account.
Best used for: Day trading, swing trading, and position trading

Find Your Broker

I do not recommend specific brokers. You will have to find one yourself that fits your situation and your needs. For a primer on brokers and how they operate check out my article: Where to trade? - Finding a broker.

Some Advice

Some general advice on selecting a broker is to find one that is well regulated. I prefer brokers that are regulated in the UK (FCA), USA (NFA) or Australia (ASIC) as the regulators in these countries are most strict and offer the best protection against any possible funny business.

Get Rebates

Below is a list of brokers that offer rebates on their spread or commission through a service that I have used myself:


Using a service like this will lower your trading costs. You can search or filter to find a broker that suits you. If you then click through on the broker, you will be taken to the broker page on CashBackForex where you can read more information and learn how to sign up for rebates.