6 Best International Forex Brokers for 2023 • Benzinga

Benzinga’s favorite international forex brokers are FOREX.com and IG.

If you’re looking for strong liquidity and low transaction costs, forex is one of the most accessible asset classes for large and small investors alike. The foreign exchange market is a truly international market where traders take advantage of global currency movements. Are you looking to trade forex internationally but unsure of what platforms to use? In this article, we discuss the top international forex brokers in the market that can meet your forex trading needs.

It’s important for forex traders to find a broker that is reliable, trustworthy and offers a wide range of currency pairs. Here are some of the top international FX brokers.

• Best for All Types of Traders: FOREX.com
• Best for MT4 Platform: CedarFX
• Best for Web-Based Platform: Oanda
• Best for Advanced Traders: IG
• Best for Derivatives Traders who use MT4: Axi
• Best for Educational Resources: HYCM

FOREX.com is a top-tier forex broker founded in 2001 and has offices in New Jersey, London and Tokyo. The company is regulated by several financial regulatory authorities, including the National Futures Association (NFA) and Commodities Futures Trading Commission (CFTC) in the United States, the FCA in the U.K., the JFSA in Japan and IIROC in Canada. The broker offers trading in various financial instruments, including over 80 currency pairs, cryptocurrency pairs, contracts for difference (CFDs) on indexes, metals, energy, commodities and individual stocks. 

FOREX.com provides several different trading platforms, including the Advanced Trading Platform with integrated trading strategies, MetaTrader 4 and 5 and proprietary web and mobile platforms. The company has a minimum deposit requirement of $100 and offers customer support through designated phone numbers in the countries where it has a presence. FOREX.com also provides educational resources and video tutorials to help novice traders get started.

The broker requires a minimum deposit of $100 that can be made via debit card, credit card or bank transfer. Withdrawals occur within 48 hours of the original request and funds are returned to the originating bank or credit card account. FOREX.com offers novice traders an extensive FAQ section and video tutorials on how to use its trading platforms. Customer support is provided by designated phone numbers in the countries where the firm has a presence.

A broker located in St. Vincent and the Grenadines, CedarFX is not regulated, although the broker is required to follow all the laws of the country where it’s domiciled.

CedarFX gives traders direct access to global financial markets, with over 170+ tradable assets available through MetaTrader4. You can trade forex, crypto pairs, stocks, indices and commodities through one platform.

CedarFX offers excellent support and unlimited opportunities to practice your strategy with the MT4 platform before trading using deposited funds with its free demo accounts.

Based in San Francisco and New York City, Oanda was established in 2001. Oanda is one of the world’s largest forex brokers and has a significant international presence with additional offices in London, Singapore, Sidney, Tokyo and Toronto. The broker is overseen by the NFA and CFTC in the United States, the IIROC in Canada, the FCA in the U.K., the JFSA in Japan and the Monetary Authority of Singapore (MAS).

Oanda is an electronic communications network/straight-through processing (ECN/STP) broker. It offers leverage of 100:1 to clients in Australia and New Zealand, 50:1 to U.S. clients and 30:1 to clients based in the EU. The broker accepts U.S.-based clients and has a market of over 70 currency pairs. Oanda offers CFDs on indices, shares, metals, energy products, commodities and German government bonds.

Platforms available at Oanda include the MetaTrader 4 and 5 platform, proprietary desktop and web-based platforms that integrate TradingView charts and the Oanda API for automated trading. The award-winning broker has no minimum deposit requirement  to open an account, and its website is available in 10 languages.

IG is a comprehensive FX broker that offers full access to the currency market and support for over 80 currency pairs.

The broker only offers forex trading to its U.S.-based customers, and the brokerage does it spectacularly well. Advanced traders will revel in the platform’s selection of indicators and charting tools, and its margin rates are easy to understand.

IG’s mobile app continues its commitment to simplicity. It offers full trading capabilities in a streamlined, powerful platform. IG is also one of the few forex brokerages offering a native tablet interface on both iOS and Android platforms. 

Axi, formerly known as AxiTrader, is a trading platform that allows users to trade CFDs in a safe environment. The platform is based on MetaTrader 4 and includes features such as copy trading, educational tools, AI and machine learning tools. 

Axi offers trading in a wide range of assets, including over 70 forex pairs, stocks, indices, precious metals, oil, commodities and cryptocurrencies. The company has low trading fees and no deposit or withdrawal fees, although inactive accounts are charged a $10 monthly maintenance fee. Axi also offers a demo account with $50,000 in virtual currency to allow users to practice trading without risking real money.

HYCM (Henyep Capital Markets) is an international forex and CFD broker. HYCM offers trading in various financial instruments, including currency pairs, commodities, indices, cryptocurrencies, ETFs and metals. The FCA, CySEC, CIMA and DFSA regulate HYCM international brokers. The company offers MetaTrader 4 and MetaTrader 5 platforms and a proprietary web-based platform.  HYCM provides various educational materials and training resources for traders, including webinars. It offers several account types to suit the needs of different traders, including standard, VIP and Islamic accounts.

The NFA is a self-regulatory organization that regulates U.S. derivatives, including the foreign exchange market. It imposed limits on the maximum leverage allowed on forex positions for U.S.-based forex traders, though the exact limits vary depending on the currency pair. As a result, many international forex brokers stopped accepting clients from the U.S. Also, because of the restrictions, international forex brokers increased in popularity relative to American brokers because they typically give traders better terms than U.S.-based forex brokers.

For example, forex brokers in the United States only allow a maximum leverage ratio of 50:1, while some international brokers offer client leverage up to 500:1 on major currencies. This high amount of leverage, while extremely profitable when you’re on the right side of the market, could be disastrous if you hold a losing position, especially if you have limited capital.

Another example is the FIFO regulation. FIFO stands for “first in, first out,” and this rule requires you to liquidate positions in the same currency pair in the order they were established instead of choosing which opposing transaction to liquidate.

New U.S. legislation also banned hedging a forex position by taking an opposing position in the same currency pair as one already established. Doing this means you effectively hedge the original position and can trade out of both sides individually, which is no longer allowed for U.S.-based forex traders.

If you’re U.S.-based and trade forex through an international broker licensed in the United States, your account will be subject to CFTC and NFA rules and restrictions.  Regardless of the amount of leverage or other features offered by the international broker, you must adhere to the 50:1 U.S. leverage limit, the FIFO rule, the no-hedging rule and any other relevant U.S. forex account restrictions.  

But just because you live in the United States doesn’t mean you can’t trade forex. 

Although many international brokers don’t accept U.S. traders because of the additional regulations, several brokers still service the U.S. client base. Many top-tier forex brokers, such as FOREX.com or IG, are based in the United States and also fully comply with the relevant regulations of the NFA and the CFTC.

Keep in mind that when a forex broker lacks oversight from a reputable financial regulatory agency, you run a considerable risk when you open an account with it. You could lose your entire deposit without even making a trade.

International forex brokers that offer their services to U.S. clients tend to be the largest and best capitalized since the process of registering and complying with CFTC and NFA regulations requires a significant initial investment and cash reserve amount. Keep in mind that not all forex brokers are created equal, so make sure you carefully consider your needs before you open an account.

The best international forex brokers give traders an easy platform to navigate this highly traded market. One factor that sets the best international forex brokers apart is regulation. Choose a broker regulated by a reputable financial authority, such as the U.K.’s FCA or the NFA in the U.S. This process ensures that the broker is held to high standards of conduct and follows strict rules and procedures to protect client funds.

Another important factor to consider is the trading platform. Reputable forex brokers will offer a user-friendly and reliable trading platform suitable for traders of all levels of experience. Benefits may include advanced charting tools, customizable layouts, and the ability to execute trades quickly and efficiently.

The best forex brokers also offer customer service in multiple languages to accommodate international traders. They also provide educational resources and support to help traders improve their skills and knowledge. 

Finding the best international forex brokers can be a challenging task given the many choices available in the market. By considering factors such as regulation and trading options, you can select a reliable and broker well-suited to your trading goals. With the right forex trading platform, you can access the global forex market and benefit from tools and resources that prepare you for the world of forex trading.