How to choose a forex broker? Best practices and 10 brokers to consider in 2025

Problems in Choosing a Forex Broker

If you are studying the foreign exchange market, you probably feel that choosing a financial partner is not an easy task. Why is that? Because entering this market involves risks, and many operators claim to be trustworthy brokers, but in reality, they may not be. Investors’ personal information and funds could be at risk.

Therefore, it is important to understand the characteristics of reliable and secure brokers to make an informed decision. This article presents criteria for selection and a list of 10 service providers worth considering.

Criteria for Choosing a Forex Broker

Licenses and Regulatory Oversight from Relevant Authorities

The first thing to check is the relevant regulatory authority. Legally operating brokers must have a license from a recognized authority, whether it’s ASIC (Australia), FCA (United Kingdom), CySEC (Cyprus), or others. If there is no license, it indicates that the operator may be illegal.

Segregated Client Funds

Regulated brokers usually keep investors’ funds in separate accounts from the company’s capital. This segregation helps protect your money from being used for unintended purposes.

Transparent Trading Conditions

Study the spreads, commissions, and other fees clearly displayed on the website. Trustworthy brokers will not have hidden charges.

Secure Trading Platforms

Standard platforms like MT4 and MT5 are trusted by investors worldwide because they have robust security systems.

Professional Customer Service

Multiple contact channels such as phone, email, live chat, and multilingual support are good signs that the broker genuinely cares about service.

Comparison Table of Key Features

10 Forex Brokers to Consider

1. MiTrade - For Beginners Seeking Simplicity

This Australian broker is licensed by ASIC, CIMA, and FSC, making it highly regulated. It offers nearly 100 assets across various categories such as currencies, commodities, and indices.

Highlights:

• Developed platform for ease of use
• Low spreads with no hidden fees
• Flexible leverage up to 1:200
• Minimum deposit starting from $50
• Support for 24/5 multilingual customer service
• Free demo account with $50,000 virtual funds

2. IC Markets - For Traders Who Need Speed

An Australian forex service licensed by ASIC, FSA, and CySEC. Known for fast order execution and high liquidity.

Highlights:

• Spreads from 0 pips
• Low latency and efficient execution
• Supports MT4, MT5, and cTrade
• Wide range of assets from currencies to cryptocurrencies

3. XM - For Diversity

Regulated by IFSC and CySEC, offering over 1,000 tradable assets.

Highlights:

• Low minimum deposit $5
• Various account types for all investor levels
• Promotions and bonuses for new clients
• Comprehensive educational resources

4. FXTM - Multi-channel Market Access

Regulated by FCA, with rapid growth in the Asian region.

Highlights:

• High leverage up to 1:2000
• Diverse account options
• Efficient withdrawal process
• Complete educational tools

5. Pepperstone - For Copy Trading Enthusiasts

An Australian service licensed by FCA, ASIC, SCB, and DFSA.

Highlights:

• Competitive spreads and commissions
• Supports MT4, MT5, and cTrader
• 24/5 customer support with live chat
• Suitable for short-term speculation and various trading styles

6. FXPro - For Those Who Want Multiple Platform Options

Founded in 2006, licensed by FCA and SCB.

Highlights:

• Supports MT4, MT5, cTrader, and FxPro Edge
• Over 250 assets
• No Dealing Desk execution for fairness
• Webinars and comprehensive analysis tools

7. AvaTrade - Stable with Fixed Spreads

A Canadian company regulated by CBoI, ASIC, and FSB.

Highlights:

• Fixed and variable spreads
• Supports MT4, MT5, and AvaTradeGO
• Automated trading tools ready to use
• Educational content for all levels

8. IG - Large Market Access and Diverse Reach

A UK company established in 1974, licensed by FCA.

Highlights:

• Access to over 17,000 markets
• User-friendly platform design
• Easy-to-understand educational content
• Over 40 years of reputable experience

9. AxiTrader - Advanced Tools for Experienced Traders

An Australian provider licensed by FCA, ASIC, FMA.

Highlights:

• Narrow spreads with no minimum deposit
• MetaTrader 4 with additional tools
• Educational resources and trading signals
• 24/5 multilingual customer support

10. Saxo Group - For Professionals

A Danish broker regulated by FSA, FCA, and many others.

Highlights:

• Access to over 40,000 instruments
• SaxoTraderGO and SaxoTraderPRO platforms
• Professional and institutional services
• Market analysis and in-depth insights

Conclusion

Choosing a forex broker is a crucial decision that impacts your trading experience. Understanding key features and comparing options will help you make a confident choice. Whether you are a beginner or an experienced trader, researching and making an informed decision will lead to a smoother trading journey.

Investments involve risks and may not be suitable for everyone.