Best Forex Broker for Small Accounts

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You need to treat the choice of Forex broker quite responsibly. It is essential to understand that the success of your trading mostly depends on the brokerage company. It provides a platform for trading, is responsible for the execution of orders, makes it possible to make a deposit and withdraw earned money, guarantees the safety of your funds, and so on. In our material, we will tell you what are the critical factors and share the tips for choosing the best forex broker for small accounts.

Best Forex Broker for Small Accounts

  • Reliability and reputation

The first thing you should find out is what kind of reputation a broker has earned during his work. No one will tell you better about the company than those who have already become its clients. But there is a crucial point: the source of such information must be reliable. Best of all, if you have friends trading with this broker. Listen to their opinion, and, most likely, you will understand whether you should contact this company.

If there are no such friends, you will have to look for information on the Internet and the media. This situation is more complicated since there are a lot of online resources providing various ratings. The websites often get money for creating false ratings. And you will not find anything useful there.

Therefore, trust only carefully selected resources. Check the age and appearance of the site, the number of comments. If all the comments are positive, then it may be a fake review.

10 Recommended Forex Brokers For Small Accounts

BrokerInfoBonusOpen Account
OCTAFX forex broker Min Deposit: $5
Spread: From 0.2 Pips
Leverage: 500:1
Regulation: FSA (Saint Vincent and the Grenadines), CySEC
50% Deposit Bonus, Real contest 1st prize Luxury car BMW X5 M, Copy trading, Trade&Win.Visit Broker
new logo FBS Markets inc Min Deposit: $1
Spread: From 0 Pips
Leverage: 3000:1
Regulation: CySEC, IFSC
$100 No-Deposit Bonus, 100% Deposit BonusVisit Broker
xm best forex broker Min Deposit: $5
Spread: From 0 Pips
Leverage: 888:1 “*This leverage does not apply to all the entities of XM group.”
Regulation: ASIC, CySEC, IFSC Belize
“50% +20% deposit bonus up to $5,000, Loyalty Program Bonus “*Clients registered under the EU regulated entity of the Group are not eligible for the bonus and the Loyalty Program”Visit Broker
exness forex broker review Min Deposit: $1
Spread: From 0 Pips
Leverage: 2000:1
Regulation: FCA UK, CySEC, FSP, BaFin, CRFIN
35% of the account DepositVisit Broker
Forex.com Gain Capital review USA Min Deposit: $100
Spread: Starting 0 Pips
Leverage: up to 400:1
Regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA
Visit Broker
FXOpen ECN Broker Min Deposit: $300
Spread: floating, from 0 pips
Leverage: 500:1
Regulation: FCA UK reference number 579202
Visit Broker
Pepperstone review best forex broker in Australia Min Deposit: $200
Spread: Starting 0 Pips
Leverage: 500:1
Regulation: ASIC Australia, FCA UK
Visit Broker
OANDA Logo USA Min Deposit: no minimum deposit
Spread: 1.2 pips
Leverage: 50:1
Regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC
Visit Broker
iq option best binary options brokers Min Deposit: $10
Spread:
Leverage:
Regulation: CySEC
-Visit Broker
etoro best forex broker USA Min Deposit: $200
Spread: From 3 Pips
Leverage: 400:1
Regulation: NFA, FCA, CySec
Visit Broker

Sometimes brokers spend tens of thousands of dollars on advertising, but its site can hardly work. The principal indicator is the Contact Us section. A fake dealing center will hide such information as much as possible. Naturally, in this case, the probability of the company working against the client is very high.

  • Market life

This indicator is indirect but allows for avoiding unnecessary risks. The logic is simple – if a company has been operating in the market for a long time and has not closed, it is a good sign. In this case, you can start studying reviews and reputation. And if the broker opened just yesterday, then it is still a beginner, and entrusting it can be risky.

  • Authorized Regulatory Agency License

Having a reliable license is an essential attribute of a trustworthy broker. Indeed, regulatory agencies are responsible for the companies to which they issue permits. Thus, they protect your funds to a certain extent.

If the company does not have a license at all, you need to run away from it. But, as a rule, almost everyone has it. And here the fun begins, because all the licenses are different.

Substantial and competent regulatory agencies (for example, ASIC, NFA, CFTC, BaFIN, FCA, CySec) offer excellent conditions and rigorous requirements for brokers. Not every company is ready to comply with these standards and obey the conditions and complete control of these agencies.

Therefore, many brokers go the other, more comfortable way, getting (and often just buying) licenses of no-name organizations. A novice who does not understand the details is easy to confuse with beautiful abbreviations and long strict names. If the broker does not have an official license, this should warn you, because for some reason he cannot/does not want to receive it.

  • Order Execution Time

For traders who trade according to the scalping strategy, the time for order execution is fundamental and should be a fraction of a second. Very often, the movement of the price of a currency pair in 2 seconds can be 30 or 50 points. And when you activate the order, for example, after 2 seconds, it is no longer relevant. The best way to check it is a demo account (training).

  • Spread

Spread is the difference between the purchase and sale prices of currency pairs. It can be floating or fixed.

The floating spread may depend on the trading time, important economic news, and so on. It is also better to test it on a demo account. A fixed spread means that it remains unchanged.

The trader wants the spread to be as low as possible, and the forex broker needs it to be as high as possible. Spread is a broker’s profit. You earn on speculation, while they make money on the spread. If there is no spread, then the broker takes a commission of the completed transaction.

But the forex broker cannot increase it too much, because he will lose the competition with other brokers. A suitable tool for comparison is the EUR/USD currency pair. The average spread on it is 1.8-2, so you can compare the terms of different brokers checking it.

  • Deposit and money withdrawal

A trader comes to Forex to make money, and he will be interested in how to withdraw it. Keep in mind that the methods of depositing and withdrawing funds may vary. Before you make a deposit, check available methods to withdraw money and whether they are suitable for you.

The main ways are bank transfers, Visa and Mastercard credit cards, electronic money. When the broker has his credit card, then it is a good sign. It means that the broker thinks about customers’ convenience, and not just about his profit.

Verification or confirmation of identity by transferring scans of your passport or ID data is a standard procedure. So do not be afraid of it. The respectable broker will never share your data with third parties.

Conclusion

Now you know what information you need to check first to select a reliable Forex broker for small account. Choosing the broker is a vital thing, as it defines your trading future. It makes no sense to start working with a company because of attractive bonuses or a free logo T-shirt.

First, check the broker’s reputation. Read the feedback about his work and find as much information as you can. Check his license, trading conditions, commissions, deposit/withdraw methods.

A wise choice always brings hidden profits in the future. It eliminates the need for the trader to solve different problems, instead of working in the Forex market.

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