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To help you find the best discount forex broker, we went ahead and did the research for you. First, we selected 78 quality online brokers, then we checked and compared their forex fees and currency pair selections. It's also important to provide great trading platforms and charting tools as well as cheap deposit/withdrawal options. We dug deep, so you won't have to. And now, without further ado...

Our top 5 picks for the best discount forex brokers of 2021:

  1. Fusion Markets is the winner, the best discount forex broker in 2021. Low trading and non-trading fees. Fast and easy account opening. Great customer service.
  2. Axi takes the second place. Low forex fees and no inactivity fee. No withdrawal and deposit fees. Fully digital account opening.
  3. FP Markets rounded out the top three. Low forex fees. Easy and fast account opening. Quick deposits and withdrawals.
  4. Saxo Bank, is ranked fourth. Great trading platform. Outstanding research. Broad product portfolio.
  5. City Index. Just made it to the list at the number five spot. Low fees for forex. Fast and smooth account opening. Diverse research tools.
Best discount forex brokers in 2021
Broker Info Forex fee score
#1 Fusion Markets Australian forex broker 5.0 stars
#2 Axi Australian forex broker 5.0 stars
#3 FP Markets Australian CFD and forex broker 4.9 stars
#4 Saxo Bank Danish investment bank 4.0 stars
#5 City Index Global CFD and forex broker 4.3 stars

What makes a good discount forex broker? Great fees definitely. We checked both trading and non-trading fees. They should also offer a wide range of currency pairs. Easy to say, but quite hard to figure it out. We test brokers based on more than 300 criteria with real accounts and real money. We know what's up.

If you are a beginner, be careful with forex trading. Forex products are complex and very risky, thus not suitable for everyone. You can easily lose all your invested money. If you don't have a clue how forex trading works, start with forex trading 101.

Not sure which broker to choose? For a tailored recommendation, check out our broker finder tool. Want more details? Compare brokers with this detailed comparison table.

And now, let's see the best discount forex brokers in 2021 one by one, starting with the winner, Fusion Markets.

Fusion Markets Logo

#1 Best discount forex broker
Fusion Markets

4.5

Fusion Markets is an Australian discount forex broker founded in 2010. It is regulated by the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC).

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended for forex traders looking for low fees and a chance to use the metatrader 4 platform

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74-89% of retail CFD accounts lose money

#1 Fusion Markets
Fees

Fusion Markets has low fees when it comes to buying and selling currency pairs.

To have a clear picture of forex fees we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.

Fusion Markets trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
EURUSD benchmark fee $4.9 $5.1 $5.3 $7.9 $6.3
GBPUSD benchmark fee $4.2 $4.3 $4.2 $6.4 $5.5
AUDUSD benchmark fee $3.3 $3.4 $3.9 $7.1 $7.6
EURCHF benchmark fee $2.3 $2.9 $1.4 $5.3 $6.8
EURGBP benchmark fee $5.0 $5.2 $6.1 $8.9 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

Fusion Markets non-trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
Account fee No No No No No
Inactivity fee No No No Yes Yes
Withdrawal fee $0 $0 $0 $0 $0

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74-89% of retail CFD accounts lose money

#1 Fusion Markets
Markets and products

Fusion Markets gives access to (Currency pairs (#) - 169/cl) currency pairs.
Fusion Markets currency pairs
Fusion Markets Axi FP Markets Saxo Bank City Index
Currency pairs (#) 81 76 61 182 84
Fusion Markets products, besides forex
Fusion Markets Axi FP Markets Saxo Bank City Index
Stock No No Yes Yes No
ETF No No No Yes No
Fund No No No Yes No
Bond No No No Yes No
Options No No No Yes No
Futures No No No Yes No
CFD Yes Yes Yes Yes Yes
Crypto Yes Yes Yes Yes Yes

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74-89% of retail CFD accounts lose money

#1 Fusion Markets
Deposit and withdrawal
4.4

Fusion Markets does not charge any fees for deposits and most withdrawal options. You can use bank transfer, credit/debit cards and electronic wallets for adding money; however, there are no minor account currencies accepted.
Pros Cons
Credit/Debit card available No minor account currencies accepted
Free withdrawal
No deposit fee
Fusion Markets base currencies
Fusion Markets Axi FP Markets Saxo Bank City Index
Number of base currencies 6 11 10 26 8

Why do base currencies matter? Because if you fund your account in the same currency as your bank account, currency conversion fees won't be charged.

Fusion Markets withdrawal fee and options
Fusion Markets Axi FP Markets Saxo Bank City Index
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card Yes No Yes No Yes
Electronic wallets No Yes Yes No Yes
Withdrawal fee $0 $0 $0 $0 $0

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74-89% of retail CFD accounts lose money

#1 Fusion Markets
Desktop trading platform
3.4

In design and functionality, Fusion Markets's MetaTrader 4 desktop platform is almost the same as the web trading platform. One major difference is that you can set price alerts on it.
Pros Cons
Clear fee report No two-step (safer) login
Good customizability (for charts, workspace) Poor design
Price alerts
Best discount forex brokers - Fusion Markets trading platform
Fusion Markets trading platforms
Fusion Markets Axi FP Markets Saxo Bank City Index
Desktop platform score 3.4 stars 3.4 stars 3.4 stars 5.0 stars 3.0 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars 5.0 stars 4.3 stars
Web platform score 2.8 stars 2.8 stars 2.8 stars 5.0 stars 4.3 stars
Best discount forex brokers - Fusion Markets charting

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74-89% of retail CFD accounts lose money

#1 Fusion Markets
Verdict

Fusion Markets is a great forex broker with very low fees. 

It offers low trading and non-trading fees. Account opening is fast and easy, and customer service provides quick and relevant answers.

On the negative side, Fusion Markets has limited educational tools. The product offering covers only forex and some CFDs. Lastly, there is no investor protection provided.

As you can open an account within a day and fees are low, feel free to try Fusion Markets.

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74-89% of retail CFD accounts lose money

Axi Logo

#2 Best discount forex broker
Axi

4.4

Axi (previously known as AxiTrader) was founded in 2007 and is an Australian forex broker. The new brand "Axi" was launched in 2020.

Axi is regulated by multiple financial authorities worldwide, such as the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC) and the Dubai Financial Services Authority (DFSA). As such, Axi is considered safe because it is regulated by several top-tier authorities.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

Recommended for forex traders familiar with the metatrader 4 platform

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75.6% of retail CFD accounts lose money

#2 Axi
Fees

Axi has low fees when it comes to buying and selling currency pairs.

To have a clear picture of forex fees we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.

Axi trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
EURUSD benchmark fee $4.9 $5.1 $5.3 $7.9 $6.3
GBPUSD benchmark fee $4.2 $4.3 $4.2 $6.4 $5.5
AUDUSD benchmark fee $3.3 $3.4 $3.9 $7.1 $7.6
EURCHF benchmark fee $2.3 $2.9 $1.4 $5.3 $6.8
EURGBP benchmark fee $5.0 $5.2 $6.1 $8.9 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

Axi non-trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
Account fee No No No No No
Inactivity fee No No No Yes Yes
Withdrawal fee $0 $0 $0 $0 $0

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75.6% of retail CFD accounts lose money

#2 Axi
Markets and products

Axi gives access to (Currency pairs (#) - 169/cl) currency pairs.
Axi currency pairs
Fusion Markets Axi FP Markets Saxo Bank City Index
Currency pairs (#) 81 76 61 182 84
Axi products, besides forex
Fusion Markets Axi FP Markets Saxo Bank City Index
Stock No No Yes Yes No
ETF No No No Yes No
Fund No No No Yes No
Bond No No No Yes No
Options No No No Yes No
Futures No No No Yes No
CFD Yes Yes Yes Yes Yes
Crypto Yes Yes Yes Yes Yes

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75.6% of retail CFD accounts lose money

#2 Axi
Deposit and withdrawal
4.4

Axi charges neither deposit nor withdrawal fees. For deposits, you can use bank transfer, credit/debit cards and electronic wallets. However, you can only withdraw via wire transfers and e-wallets.
Pros Cons
Credit/Debit card available Withdrawal only via wire transfer or e-wallets
Free withdrawal
No deposit fee
Axi base currencies
Fusion Markets Axi FP Markets Saxo Bank City Index
Number of base currencies 6 11 10 26 8

Why do base currencies matter? Because if you fund your account in the same currency as your bank account, currency conversion fees won't be charged.

Axi withdrawal fee and options
Fusion Markets Axi FP Markets Saxo Bank City Index
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card Yes No Yes No Yes
Electronic wallets No Yes Yes No Yes
Withdrawal fee $0 $0 $0 $0 $0

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75.6% of retail CFD accounts lose money

#2 Axi
Desktop trading platform
3.4

In design and functionality, Axi's MetaTrader 4 desktop platform is almost the same as the web trading platform. One major difference is that you can set price alerts on it.
Pros Cons
Clear fee report No two-step (safer) login
Good customizability (for charts, workspace) Poor design
Price alerts Search function could be improved
Best discount forex brokers - Axi trading platform
Axi trading platforms
Fusion Markets Axi FP Markets Saxo Bank City Index
Desktop platform score 3.4 stars 3.4 stars 3.4 stars 5.0 stars 3.0 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars 5.0 stars 4.3 stars
Web platform score 2.8 stars 2.8 stars 2.8 stars 5.0 stars 4.3 stars
Best discount forex brokers - Axi charting

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75.6% of retail CFD accounts lose money

#2 Axi
Verdict

Axi is regulated by multiple authorities globally, like the UK's FCA and ASIC in Australia.

On the plus side, forex fees are low and no inactivity fee is charged. Deposits and withdrawals are also free of charge. Account opening is easy and fully digital, without any minimum deposit, which is also great.

AxiTrader has some drawbacks, though. Its product range is limited to FX and CFDs, and its research tools lack recommendations and fundamental data. In addition, customer support is only 24/5.

Feel free to try Axi, as the trading fees are low and there are no deposit, withdrawal or inactivity fees.
 

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75.6% of retail CFD accounts lose money

FP Markets Logo

#3 Best discount forex broker
FP Markets

4.4

FP Markets was founded in 2005 and it is an Australian CFD and forex broker. It is regulated by the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC) and the Financial Services Authority of St. Vincent and the Grenadines.

FP Markets is considered safe because it has a long track record and it is regulated by the top-tier ASIC.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended for forex and cfd traders familiar with metatrader and iress trading platforms

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74-89% of retail CFD accounts lose money

#3 FP Markets
Fees

FP Markets has low fees when it comes to buying and selling currency pairs.

To have a clear picture of forex fees we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.

FP Markets trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
EURUSD benchmark fee $4.9 $5.1 $5.3 $7.9 $6.3
GBPUSD benchmark fee $4.2 $4.3 $4.2 $6.4 $5.5
AUDUSD benchmark fee $3.3 $3.4 $3.9 $7.1 $7.6
EURCHF benchmark fee $2.3 $2.9 $1.4 $5.3 $6.8
EURGBP benchmark fee $5.0 $5.2 $6.1 $8.9 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

FP Markets non-trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
Account fee No No No No No
Inactivity fee No No No Yes Yes
Withdrawal fee $0 $0 $0 $0 $0

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74-89% of retail CFD accounts lose money

#3 FP Markets
Markets and products

FP Markets gives access to (Currency pairs (#) - 169/cl) currency pairs.
FP Markets currency pairs
Fusion Markets Axi FP Markets Saxo Bank City Index
Currency pairs (#) 81 76 61 182 84
FP Markets products, besides forex
Fusion Markets Axi FP Markets Saxo Bank City Index
Stock No No Yes Yes No
ETF No No No Yes No
Fund No No No Yes No
Bond No No No Yes No
Options No No No Yes No
Futures No No No Yes No
CFD Yes Yes Yes Yes Yes
Crypto Yes Yes Yes Yes Yes

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74-89% of retail CFD accounts lose money

#3 FP Markets
Deposit and withdrawal
4.7

FP Markets offers a wide range of deposit and withdrawal options, but it charges a withdrawal fee for some of the options.
Pros Cons
Credit/Debit card available Some withdrawal options are not free of charge
No deposit fee
Several account base currencies
FP Markets base currencies
Fusion Markets Axi FP Markets Saxo Bank City Index
Number of base currencies 6 11 10 26 8

Why do base currencies matter? Because if you fund your account in the same currency as your bank account, currency conversion fees won't be charged.

FP Markets withdrawal fee and options
Fusion Markets Axi FP Markets Saxo Bank City Index
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card Yes No Yes No Yes
Electronic wallets No Yes Yes No Yes
Withdrawal fee $0 $0 $0 $0 $0

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74-89% of retail CFD accounts lose money

#3 FP Markets
Desktop trading platform
3.4

In design and functionalities, FP Markets' MetaTrader 4 desktop platform is almost the same as the web trading platform. One major difference is that you can set price alerts on the desktop trading platform.
Pros Cons
Clear fee report No two-step (safer) login
Good customizability (for charts, workspace) Poor design
Price alerts Search function could be improved
Best discount forex brokers - FP Markets trading platform
FP Markets trading platforms
Fusion Markets Axi FP Markets Saxo Bank City Index
Desktop platform score 3.4 stars 3.4 stars 3.4 stars 5.0 stars 3.0 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars 5.0 stars 4.3 stars
Web platform score 2.8 stars 2.8 stars 2.8 stars 5.0 stars 4.3 stars
Best discount forex brokers - FP Markets charting

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74-89% of retail CFD accounts lose money

#3 FP Markets
Verdict

FP Markets is a great CFD and forex broker regulated by the top-tier Australian Securities and Investments Commission (ASIC). It offers low forex fees and does not charge an inactivity fee. Both account opening and depositing are fast and you'll find high-quality educational tools, too.

On the downside, stock CFD fees are high and their product portfolio is limited, as it covers only CFDs (equities, indices, metals) and forex instruments. MT4 web and desktop trading platforms have outdated designs.

Feel free to try FP Markets as account opening is easy and there are no inactivity fees.
 

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74-89% of retail CFD accounts lose money

Saxo Bank Logo

#4 Best discount forex broker
Saxo Bank

4.8

Saxo Bank, a Danish investment bank founded in 1992, provides online trading and investment services. The company is regulated by several financial authorities globally, including the Danish Financial Services Agency (FSA) and the UK Financial Conduct Authority (FCA). 

Saxo Bank is a global service provider and its subsidiaries are present in the form of separate legal entities in different regions of the world. The services offered by the various entities may differ slightly, especially with respect to fees and product portfolios. In this review, we tested Saxo Bank UK.

Saxo Bank is considered safe because it has a long track record, a banking background and is regulated by top-tier financial authorities.

Recommended for investors and traders looking for a great trading platform and solid research

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#4 Saxo Bank
Fees

Saxo Bank has low fees when it comes to buying and selling currency pairs.

To have a clear picture of forex fees we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.

Saxo Bank trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
EURUSD benchmark fee $4.9 $5.1 $5.3 $7.9 $6.3
GBPUSD benchmark fee $4.2 $4.3 $4.2 $6.4 $5.5
AUDUSD benchmark fee $3.3 $3.4 $3.9 $7.1 $7.6
EURCHF benchmark fee $2.3 $2.9 $1.4 $5.3 $6.8
EURGBP benchmark fee $5.0 $5.2 $6.1 $8.9 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

Saxo Bank non-trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
Account fee No No No No No
Inactivity fee No No No Yes Yes
Withdrawal fee $0 $0 $0 $0 $0

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#4 Saxo Bank
Markets and products

Saxo Bank gives access to (Currency pairs (#) - 169/cl) currency pairs.
Saxo Bank currency pairs
Fusion Markets Axi FP Markets Saxo Bank City Index
Currency pairs (#) 81 76 61 182 84
Saxo Bank products, besides forex
Fusion Markets Axi FP Markets Saxo Bank City Index
Stock No No Yes Yes No
ETF No No No Yes No
Fund No No No Yes No
Bond No No No Yes No
Options No No No Yes No
Futures No No No Yes No
CFD Yes Yes Yes Yes Yes
Crypto Yes Yes Yes Yes Yes

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#4 Saxo Bank
Deposit and withdrawal
4.8

Saxo provides multiple deposit and withdrawal options free of charge on a user-friendly interface.
Pros Cons
Credit/Debit card available Electronic wallets not available for deposit or withdrawal
Free withdrawal
No deposit fee
Saxo Bank base currencies
Fusion Markets Axi FP Markets Saxo Bank City Index
Number of base currencies 6 11 10 26 8

Why do base currencies matter? Because if you fund your account in the same currency as your bank account, currency conversion fees won't be charged.

Saxo Bank withdrawal fee and options
Fusion Markets Axi FP Markets Saxo Bank City Index
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card Yes No Yes No Yes
Electronic wallets No Yes Yes No Yes
Withdrawal fee $0 $0 $0 $0 $0

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#4 Saxo Bank
Desktop trading platform
5.0

Saxo Bank's desktop trading platform is one of the best on the market. It is well designed, easy to use and offers great customizability.
Pros Cons
User-friendly None
Clear fee report
Good customizability (for charts, workspace)
Best discount forex brokers - Saxo Bank trading platform
Saxo Bank trading platforms
Fusion Markets Axi FP Markets Saxo Bank City Index
Desktop platform score 3.4 stars 3.4 stars 3.4 stars 5.0 stars 3.0 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars 5.0 stars 4.3 stars
Web platform score 2.8 stars 2.8 stars 2.8 stars 5.0 stars 4.3 stars
Best discount forex brokers - Saxo Bank charting

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#4 Saxo Bank
Verdict

Saxo Bank is a great broker, providing a complex and good service.

It offers a user-friendly and well-designed trading platform, backed by great research. The product portfolio covers all asset types and many international markets.

It has some drawbacks though. The fees for bonds, options and futures are high. There is also a high minimum deposit for certain countries. Lastly, there is no live chat or 24/7 customer support.

In general, Saxo Bank is one of the best online brokerage companies out there. By opening an account, you will get a broad, well-developed service constantly adapted to the needs of clients.

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City Index Logo

#5 Best discount forex broker
City Index

4.6

City Index is a global CFD and FX broker that was founded in 1983. City Index is the trading brand of GAIN Capital, which is listed on the New York Stock Exchange. The company is regulated by top-tier financial authorities, such as the UK's Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC) and the Monetary Authority of Singapore (MAS). 

City Index is considered safe because it has a long track record, it is regulated by top-tier financial authorities, and its parent company is listed on a stock exchange.

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Recommended for forex and cfd traders looking for low forex fees and great research tools

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73% of retail CFD accounts lose money

#5 City Index
Fees

City Index has low fees when it comes to buying and selling currency pairs.

To have a clear picture of forex fees we calculated a forex benchmark fee for major currency pairs. This catch-all benchmark includes commissions, spreads and financing costs for all brokers.

City Index trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
EURUSD benchmark fee $4.9 $5.1 $5.3 $7.9 $6.3
GBPUSD benchmark fee $4.2 $4.3 $4.2 $6.4 $5.5
AUDUSD benchmark fee $3.3 $3.4 $3.9 $7.1 $7.6
EURCHF benchmark fee $2.3 $2.9 $1.4 $5.3 $6.8
EURGBP benchmark fee $5.0 $5.2 $6.1 $8.9 $7.4

All spreads, commissions and financing rate for opening a position, holding for a week, and closing.

City Index non-trading fees
Fusion Markets Axi FP Markets Saxo Bank City Index
Account fee No No No No No
Inactivity fee No No No Yes Yes
Withdrawal fee $0 $0 $0 $0 $0

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73% of retail CFD accounts lose money

#5 City Index
Markets and products

City Index gives access to (Currency pairs (#) - 169/cl) currency pairs.
City Index currency pairs
Fusion Markets Axi FP Markets Saxo Bank City Index
Currency pairs (#) 81 76 61 182 84
City Index products, besides forex
Fusion Markets Axi FP Markets Saxo Bank City Index
Stock No No Yes Yes No
ETF No No No Yes No
Fund No No No Yes No
Bond No No No Yes No
Options No No No Yes No
Futures No No No Yes No
CFD Yes Yes Yes Yes Yes
Crypto Yes Yes Yes Yes Yes

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73% of retail CFD accounts lose money

#5 City Index
Deposit and withdrawal
4.3

City Index provides multiple deposit and withdrawal options, all free of charge. However, withdrawal is not possible with some credit cards.
Pros Cons
Credit/Debit card available Problem with credit card withdrawal
Free withdrawal
No deposit fee
City Index base currencies
Fusion Markets Axi FP Markets Saxo Bank City Index
Number of base currencies 6 11 10 26 8

Why do base currencies matter? Because if you fund your account in the same currency as your bank account, currency conversion fees won't be charged.

City Index withdrawal fee and options
Fusion Markets Axi FP Markets Saxo Bank City Index
Bank transfer Yes Yes Yes Yes Yes
Credit/debit card Yes No Yes No Yes
Electronic wallets No Yes Yes No Yes
Withdrawal fee $0 $0 $0 $0 $0

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73% of retail CFD accounts lose money

#5 City Index
Desktop trading platform
3.0

City Index's desktop platform has the same functions as the web trading platform but lags behind in user-friendliness.
Pros Cons
Clear fee report Not user-friendly
Good customizability (for charts, workspace) No two-step (safer) login
Good variety of order types Outdated design
Best discount forex brokers - City Index trading platform
City Index trading platforms
Fusion Markets Axi FP Markets Saxo Bank City Index
Desktop platform score 3.4 stars 3.4 stars 3.4 stars 5.0 stars 3.0 stars
Mobile platform score 3.8 stars 3.8 stars 3.8 stars 5.0 stars 4.3 stars
Web platform score 2.8 stars 2.8 stars 2.8 stars 5.0 stars 4.3 stars
Best discount forex brokers - City Index charting

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73% of retail CFD accounts lose money

#5 City Index
Verdict

City Index is a great CFD and forex broker regulated by top-tier financial authorities, such as the UK's FCA.

On the positive side, it has low forex fees, a smooth account opening process, and high-quality research tools.

It has some drawbacks though. The product portfolio is limited, stock CFD fees are quite high and the desktop platform lags behind its competitors.

As there is no minimum balance required, no withdrawal fee and an inactivity fee only kicks in after one year, feel free to try City Index.

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73% of retail CFD accounts lose money

Best discount forex brokers
What makes a good discount forex broker?

Trading with forex became really popular over the last decade. Looking at important criteria like fees will help you find the best discount forex broker for you.

At BrokerChooser, we test online brokers based on more than 300 criteria, with a real account and real money.

The most important factors to consider in selecting the top discount forex brokers are the fees of forex trading. Besides trading fees, you should also look at withdrawal fees and the number of available currency pairs. Check if the broker provides a great desktop and mobile platforms, and advanced charting tools.

Best discount forex brokers
Forex broker fees

Fees, fees, fees. We bet this is always on your mind when you're looking for the best discount forex broker. It can be complicated. Let's see how we did it.

It is not easy to compare forex broker fees, but we are here to help. Forex brokers can charge commissions, spreads and financing fees.

For commissions, there are two versions forex brokers use:

  1. All trading fees are included in the spread except the financing rate. Think of it as the broker giving you a wider spread than it gets from the market.
  2. You get the market spread, but you pay a commission based on the traded amount. This model is usually used by ECN brokers.

The second version is more transparent, but this doesn't mean that the first method cannot be cheaper.

When you trade forex on leverage and hold your position overnight, a fee will be charged. This fee is called as a financing cost. The financing costs change daily and can be an important cost if you hold your positions longer.

To make your life easier, we calculated what your overall fee would be if you took a $20,000 position, held it for a week then closed it. We used a 30:1 leverage, the maximum leverage available for major currency pairs at many brokers.

Best discount forex brokers
Forex trading 101

Forex trading looks simple, but it carries serious risks. Before trading, understand the basics and ask yourself: is this for me?

Understanding the forex market

Forex, FX, foreign exchange or currency market: you have probably already heard one of these expressions. They all mean the same: a market where you can exchange currencies or bet on the price movement of currency pairs.

The forex market has several outlets, from currency exchange booths on the street to the currency trading desks of big banks.

For a non-professional trader, as you probably are, the easiest and safest way to trade forex is by opening an account at a reliable online broker.

The vast majority of currency transactions are conducted on OTC (over-the-counter) markets. An OTC market is a non-regulated market, where you have to assess for yourself how safe your counterparty is. When you travel abroad to an exotic country and you need to exchange some money, you would probably go to a bank branch instead of changing money on the street, right?. This is how you minimize your counterparty risk. You have to do the same when you select your online broker for trading forex. You should always choose a reliable broker.

Forex trading is very tempting for the following reasons:

  • everybody has an opinion on where currencies are going

  • at first sight, the forex market is relatively easy to understand compared to other markets, like the stock market

  • by using leverage, a trader can easily trade with 100 times more money than they have on their trading account and thus increase profits (or losses!) 100 times, too

  • the market is open 24 hours a day, 5 days a week

  • it is the most liquid market in the world, meaning there are lots of transactions every second and you don't have to worry about how to find a partner to trade with

Although it looks easy, trading with forex can be risky if you don't know what you're doing. By using high leverage irresponsibly, you can easily lose all your money within a couple of seconds. So you better start off slow, learn and open a demo account first. If you want to learn more, check out our blog post about the best trading apps for learning.

Forex market trading hours

The forex market is open from 11:00 PM on Sunday until 11:00 PM on Friday, London time.

Trading activity is at its highest, when London and New York are open.

Top forex brokers - market trading hours

It is good to know that there is a difference between currency conversion and forex trading.

The end result of a conversion is basically changing one currency into another. Imagine that you receive your salary in euros (EUR), but you spend it in British pounds (GBP). In this case, you exchange the euros to pounds. Before the transaction you had euros, and after it you will have pounds.

When you trade with currency pairs there is no physical conversion. Imagine that you have an online broker account in US dollars and you want to bet on the price movements in EURUSD. In this case, you effectively never convert your dollars to euros. If your bet was correct, the profit from your trade will be booked to your account in US dollars. If you were wrong, the loss will be deducted from your account in dollars as well.

Breaking down the forex trading jargon

When you trade forex, you bet on the price change of a currency pair, for example, the EURUSD.

EURUSD bid price EURUSD ask price
1.1700 1.1705

First of all, you need to understand what the bid and the ask prices are. Let's take the EURUSD again as an example. The 'bid' is the price at which you can sell the EURUSD, or in other words go short in it. If the price goes lower, you will generate a profit. The 'ask' price is the opposite. If you want to bet on the price moving up, you can open a trade at the 'ask' price. The mid-price is usually halfway between the two, but this is just a theoretical price that is not used for trading.

The actual bid and ask prices together are called the quote.

A long position is when you bet on the price moving up, while a short position is when you profit from the price going down.

The spread is the difference between the ask and bid prices. In the example above, the spread is 0.0005, which is calculated as 1.1705-1.1700.

The pip is the smallest amount of a currency pair. One pip is equal to 0.0001 for most of the currency pairs. In case of our example, the spread is 5 pips, or 5 times 0.0001, equalling 0.0005. For some currency pairs like the USDJPY, one pip is 0.01.

Leverage allows you to take bigger positions than the amount of money on your account. Imagine this as a multiplier of your profit or your loss. This can be as high as 300. Imagine you have $1000 on your account and your applied leverage is 100. If you open a long position by using all your $1000, this means you open a trade for $1,000*100, or $100,000. If the price drops 1%, you will lose $1000 (1%*$100,000), that is, all of the money on your account. And the price of a currency pair can very easily drop by 1%. In case of EURUSD, this would mean a price decrease from 1.1705 to 1.1588.

A lot is the standard number of units of a forex contract. It is usually 100,000 units of the base currency. The base currency is the first currency in a currency pair. For EURUSD, the base currency is the EUR and one lot is €100,000. A mini lot is 10,000, a micro is 1,000 and a nano is 100 units of the base currency.

In forex trading, you can encounter different types of contracts: spot, CFD, forward and futures. The spot forex and CFD contracts are traded by most people.

A spot contract is by definition settled two days after the trade. Settlement means that the counterparties are converting their currencies between each other at the price of the trade made two days earlier. Imagine the settlement as a currency conversion made at a money exchange booth on the street. The only difference is that this happens two days after the price was agreed on. However, in most cases, the settlement doesn't actually happen, because spot contracts are rolled over before the settlement. This is always the case when you trade forex with your online brokers. The rollover is done because when you are betting on the direction of a currency pair, you do not actually want to convert money into the other currency, you just want to bet on the price movement. The rollover ensures that the conversion will not happen.

To learn what forex CFD is and how you can trade it, read our CFD 101 and CFD trading tips.

When your position is rolled over, your online broker closes your current spot position and opens a new one. This is not visible for you, but it has a fee, called the rollover or financing fee. The rollover fee is calculated from the interest rate difference between the two currencies you are trading. In some cases, you may also receive a fee from the broker, if the interest rates you trade are in your favor.

A forward forex contract is a contract made on the OTC market. The specifics of the contract, like the term, the price and the settlement are defined by the counterparties case by case. Imagine a company that needs $100,000 in 30 days to pay its employees, but its revenues are in euros. Since it wants to lock the exact exchange rate it gets in 30 days, it will seal a forward contract with a big bank at a fixed price, let's say at 1.1710. After 30 days, they will exchange the currencies and the company will receive €85,397 ($100,000/1.1710). In this case, there is an actual settlement.

A futures forex contract is traded on a regulated market, for example, on a commodity exchange, like the Chicago Mercantile Exchange (CME). When you trade futures, your counterparty is the exchange and the specifics of the contract are predefined by the exchange. When your counterparty is a regulated exchange, you don't need to check your counterparty risk, as this is one of the safest ways of trading. However, the exchange requires a large amount of initial money for trading, so this is not suitable for you if you have little money to invest. If you want to trade one EURUSD futures contract on the CME, for example, you need to have more than $2000 on your account.

What drives the forex market price?

As we said bfore, everybody has an opinion about the forex market, because it seems simple. However, currency markets are among the most unpredictable ones in the world.

Everything from monetary policies and government spending to politics and wars can influence the prices of currency pairs. So many different factors can affect prices that it is difficult to predict which way they will move.

Nevertheless, economic calendars can help, so at least you know about the scheduled events that could have an effect on the forex market.

Best discount forex brokers
Bottom line

You saw the details, now let's zoom out. Here are the best discount forex brokers of 2021:

Best discount forex brokers in 2021
Fusion Markets Axi FP Markets Saxo Bank City Index
Fees score 4.8 stars 4.3 stars 4.2 stars 3.0 stars 3.8 stars
Deposit and withdrawal score 4.4 stars 4.4 stars 4.7 stars 4.8 stars 4.3 stars
Markets and products score 1.8 stars 1.8 stars 2.0 stars 5.0 stars 2.0 stars
Desktop platform score 3.4 stars 3.4 stars 3.4 stars 5.0 stars 3.0 stars
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74-89% of retail CFD accounts lose money
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75.6% of retail CFD accounts lose money
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74-89% of retail CFD accounts lose money
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73% of retail CFD accounts lose money

Fusion Markets is our winner, the best discount forex broker in 2021. Low trading and non-trading fees. Fast and easy account opening. Great customer service.

All these brokers are considered a great choice. Watch out, FX can be risky. If you know enough and are good to go, pick your winner and take the next step in your trading journey. Let us know what you think in the comments section.

Still unsure? Use the broker finder and find the best broker for you.

Author of this article

Gergely Korpos

Author of this article

Gergely is the co-founder and CPO of Brokerchooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Gergely Korpos

Co-founder, CPO

Gergely is the co-founder and CPO of Brokerchooser. His aim is to make personal investing crystal clear for everybody. Gergely has 10 years of experience in the financial markets. He concluded thousands of trades as a commodity trader and equity portfolio manager.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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Visit broker
74-89% of retail CFD accounts lose money
Visit broker
75.6% of retail CFD accounts lose money
Visit broker
74-89% of retail CFD accounts lose money
Visit broker
73% of retail CFD accounts lose money
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