Best Online Brokerages for Forex Trading

Finding the best online trading platform can be a complicated process. To make this process easier, we've conducted a thorough analysis of the best online brokerages for foreign exchange trading.

Table of Contents

Best Overall Forex Trading Platform: Interactive Brokers

Consider this if you plan to focus on forex trading

Interactive Brokers is the best platform for forex trading due to its low spreads, wide market access and minimal fees. The platforms fees are typically far lower than the market average and its commission fees are negligible. Furthermore, Interactive Brokers offers traders access to 22 trading currencies. On top of its competitive offerings, Interactive Brokers provides a wealth of educational materials to its users.

Read our full review


Currency
Min. SpreadIndustry Average
EUR USD0.10.7
USD JPY0.10.7
GBP USD0.20.9
AUD USD0.10.7
* figures based on min. advertised spreads advertised August 25, 2019
Monthly Trade AmountCommissionMinimum Fee per Order
$1 billion or less0.20 basis point 3 * Trade Value$2.00
$1 billion - $2 billion0.15 basis point 3 * Trade Value$1.50
$2 billion - $5 billion0.10 basis point 3 * Trade Value$1.25
$5 billion+0.08 basis point 3 * Trade Value$1.00
Figures in USD
USDAUDCADCHFCNHCZKDKKEURGBPHKDHUF
ILSJPYMXNNOKNZDPLNRUBSEKSGDZARKRW

Best for Overall Online Brokerage: Saxo Markets

Consider this if you plan to trade forex and other financial instruments

Saxo Markets is a great choice for investors that seek to make FX trades while also investing in a range of other securities (e.g. stocks, bonds, ETFs), due to its great market access and low fees. In general the brokerage's trading fees are the most competitive of the platforms available in Singapore and its forex spreads are the second lowest. Additionally, Saxo does not charge commission fees for FX trading, making it a good fit for frequent traders.

Read our full review


Currency
ClassicVIPIndustry Average
EUR USD0.60.40.7
USD JPY0.60.40.7
GBP USD0.70.40.9
AUD USD0.50.30.7
EUR JPY0.70.41.2
* figures based on min. advertised spreads

Market
ClassicVIPIndustry Average
Singapore0.08%0.08%0.22%
US0.06%0.04%0.27%
Japan0.15%0.10%0.32%
HK0.15%0.10%0.21%
EU0.10%0.05-0.08%0.31%

Instrument
Saxo ClassicSaxo VIPIndustry Average
US 301.41.42.1
Japan 225778.3
HK 50556.5

Best Trading Platform for Margin Forex Trades: City Index

Consider this if you are an experienced CFD trader

For experienced investors, City Index is worth considering due to its competitive margins and relatively low forex spreads. This online trading platform typically offers spreads that are slightly better than the market average as displayed in the table below. It also offers FX margins from 2%. Finally, City Index offers training materials to its users, which can be helpful for those that need a refresher on FX and margin trading topics.

Read our full review


Currency
Min. SpreadIndustry Average
EUR USD0.50.7
USD JPY0.60.7
GBP USD0.90.9
AUD USD0.50.7
* figures based on min. advertised spreads advertised August 25, 2019

How to Compare Online Brokerages as a Forex Trader

There are a few important characteristics to consider when choosing an online platform for FX trading. Investors should first consider the comparative cost of each brokerage. The best way to do this is to compare average spreads for currencies of interest. Additionally, some platforms charge commission fees with each trade or a monthly fee for using the service. Furthermore, users should be aware of the ease of use of each platform. Finally, investors seeking to buy and sell a range of securities should consider how competitive the platform is in terms of the pricing and offerings of these assets. We also strongly suggest that investors have a thorough understanding of FX markets before investing their own funds.

Trading PlatformEUR/USDUSD/JPYGBP/USDAUD/USD
Interactive Brokers0.100.100.200.10
Saxo Markets0.600.600.700.50
IG0.600.700.900.60
CmC0.700.701.000.70
PhillipCapital0.600.700.800.70
City Index0.690.771.220.73
LCG1.001.001.001.00
Oanda1.201.201.601.20
Plus 5001.111.061.230.68
Average0.710.740.930.66

Methodology

In order to conduct our review of the best online brokerages for foreign exchange trading, we researched the FX spread pricing of the top platforms available in Singapore, as this is the most indicative measure of each platform's forex trading costs. We used comparable pricing data from July 2019 when possible and live spreads from August 2019 in all other cases.

Online Trading Platforms in ValueChampion's Study
CitibankCity IndexCmC
DBS Vickersi*TradeIG
Interactive BrokersiOCBCKGI Fraser
LCGLim & TanMaybank Kim Eng
OandaPlus 500POEMS 2.0
RHB SecuritiesSaxo MarketsStandard Chartered
TD AmeritradeThebinaryoptionsexpertU Trade
William Hofmann

William is a Senior Research Analyst at ValueChampion Singapore, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.

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