To help you find the best forex brokers for beginners in St. Pierre & Miquelon in 2021, we went ahead and did the research for you. First, we selected 93 quality online brokers, then we checked and compared fees, currency pairs, charting tools and educational materials. We dug deep, so you won't have to. And now, without further ado...
Our top 5 picks for the best forex brokers for beginners in St. Pierre & Miquelon in 2021:
- CMC Markets is the winner, the best forex broker for beginners in St. Pierre & Miquelon in 2021. Low forex fees. Great web and mobile platforms. Advanced research and educational tools.
- City Index takes second place. Low fees for forex. Fast and smooth account opening. Diverse research tools.
- Forex.com rounds out the top three. Low forex fees. Great variety of currency pairs. Diverse technical research tools.
- Interactive Brokers is ranked fourth. Low trading fees. Wide range of products. Many great research tools.
- IG just made it on the list, taking the number five spot. First-class web trading platform. Superb educational tools. Great deposit and withdrawal options.
| Broker | Info | Forex fee score | |
|---|---|---|---|
| #1 | CMC Markets | Global CFD and forex broker | 4.1 stars |
| #2 | City Index | Global CFD and forex broker | 4.4 stars |
| #3 | Forex.com | Global CFD and forex broker | 4.5 stars |
| #4 | Interactive Brokers | US discount broker | 3.2 stars |
| #5 | IG | Global CFD and forex broker | 2.3 stars |
What makes a top forex broker for beginners? First of all, fair forex fees. They should also offer a lot of currency pairs and a great platform with advanced charting. Educational tools to help you start investing also matter.
These features may sound obvious and easy to list, but they're hard to figure out. We test brokers based on close to 500 criteria, using real accounts and real money. We know what we are talking about.
If you are a beginner, be careful with forex trading. Forex products are complex and very risky, therefore 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 our forex trading 101.
Not sure which broker to choose? For a tailored recommendation, check out our broker finder tool. Just enter the name of your country and it will show you only the relevant brokers. Want more details? Compare brokers with the help of this detailed comparison table.
Want to see the overall rank of brokers for this topic, not just the country specific one? Head to this link here.
And now, let's see the top forex brokers in 2021 for Saint-Pierrais or Miquelonnais citizens one by one, starting with the winner, CMC Markets.
#1 Best forex brokers for beginners
CMC Markets
CMC Markets is a global CFD and forex broker, founded in 1989. It is regulated by several authorities globally, including the top-tier UK Financial Conduct Authority (FCA). The company is also listed on the London Stock Exchange.
CMC Markets is considered safe because it has a long track record, is listed on a stock exchange, and is overseen by top-tier regulators.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% 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 an advanced trading platform with many research tools
#1 CMC Markets
Fees
CMC 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.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| EURUSD benchmark fee | $7.9 | $6.2 | $6.1 | $10.7 | $14.7 |
| GBPUSD benchmark fee | $5.7 | $4.9 | $5.0 | $8.6 | $9.3 |
| AUDUSD benchmark fee | $6.5 | $6.4 | $6.5 | $8.6 | $9.6 |
| EURCHF benchmark fee | $8.0 | $6.9 | $6.3 | $7.8 | $9.3 |
| EURGBP benchmark fee | $9.1 | $7.8 | $7.5 | $10.7 | $15.1 |
All spreads, commissions and financing rates for opening a position, holding for a week, and closing.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | Yes | Yes | Yes | No | Yes |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#1 CMC Markets
Markets and products
CMC Markets gives access to 338 currency pairs.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Currency pairs (#) | 338 | 84 | 91 | 105 | 205 |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Stocks | No | No | No | Yes | Yes |
| ETFs | No | No | No | Yes | Yes |
| Funds | No | No | No | Yes | No |
| Bonds | No | No | No | Yes | No |
| Options | No | No | No | Yes | Yes |
| Futures | No | No | No | Yes | No |
| CFDs | Yes | Yes | Yes | Yes | Yes |
| Crypto | Yes | Yes | Yes | Yes | No |
#1 CMC Markets
Customer service
Customer support at CMC Markets is great: fast and reliable, with emails often answered on the same day. On the other hand, it is not available 24/7.
| Pros | Cons |
|---|---|
| • Phone support | • No 24/7 support |
| • Live chat | |
| • Fast response time |
#1 CMC Markets
Research
CMC's research tools are useful for both beginners and advanced traders. They include tools for detailed technical analysis, and third-party news feeds to aid fundamental analaysis.
| Pros | Cons |
|---|---|
| • Good interactive chart | None |
| • Trading ideas | |
| • Data on asset fundamentals |
#1 CMC Markets
Account opening
The account opening process is fully digital and there's no minimum deposit, but confusion about what documents to upload for identification can prolong the verification process.
| Pros | Cons |
|---|---|
| • Fully digital | • Complicated account verification |
| • No minimum deposit |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $100 | $100 | $0 | $0 |
| Time to open account | 1-3 days | 1 day | 1-3 days | 1-3 days | 1-3 days |
#1 CMC Markets
Verdict
CMC Markets is overseen by top-tier regulators and is one of the best CFD and forex brokers out there.
On the plus side, it has low forex fees, well-developed trading platforms, and useful research and educational tools.
There are also a few drawbacks, though. Stock CFD fees are high, and the account verification process is not always seamless. Also, its product selection covers only CFD and forex asset classes, meaning no real stocks, bonds or mutual funds.
Feel free to test CMC Markets's first-class trading platform, as it has great features and requires no minimum deposit to open an account.
#2 Best forex brokers for beginners
City Index
City Index is a global CFD and FX broker founded in 1983. City Index is the trading brand of StoneX Financial Ltd., whose parent company StoneX Group Inc. is listed on the NASDAQ 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. 70% 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
#2 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.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| EURUSD benchmark fee | $7.9 | $6.2 | $6.1 | $10.7 | $14.7 |
| GBPUSD benchmark fee | $5.7 | $4.9 | $5.0 | $8.6 | $9.3 |
| AUDUSD benchmark fee | $6.5 | $6.4 | $6.5 | $8.6 | $9.6 |
| EURCHF benchmark fee | $8.0 | $6.9 | $6.3 | $7.8 | $9.3 |
| EURGBP benchmark fee | $9.1 | $7.8 | $7.5 | $10.7 | $15.1 |
All spreads, commissions and financing rates for opening a position, holding for a week, and closing.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | Yes | Yes | Yes | No | Yes |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#2 City Index
Markets and products
City Index gives access to 84 currency pairs.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Currency pairs (#) | 338 | 84 | 91 | 105 | 205 |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Stocks | No | No | No | Yes | Yes |
| ETFs | No | No | No | Yes | Yes |
| Funds | No | No | No | Yes | No |
| Bonds | No | No | No | Yes | No |
| Options | No | No | No | Yes | Yes |
| Futures | No | No | No | Yes | No |
| CFDs | Yes | Yes | Yes | Yes | Yes |
| Crypto | Yes | Yes | Yes | Yes | No |
#2 City Index
Customer service
City Index customer service is great. You can reach them in many ways and get fast and relevant answers via phone and chat. On the negative side, email support is really slow.
| Pros | Cons |
|---|---|
| • Live chat | • No 24/7 support |
| • Great phone support | • Slow email support |
#2 City Index
Research
City Index has great and diverse research tools. You can take advantage of good charting tools, trading ideas and quality news. On the other hand, it lacks fundamental data.
| Pros | Cons |
|---|---|
| • Good interactive chart | • No fundamental data available |
| • Trading ideas | |
| • Quality news flow |
#2 City Index
Account opening
City Index's account opening process is fully digital and there is no minimum deposit. It took one day for us to get the account approved.
| Pros | Cons |
|---|---|
| • Fast | None |
| • Fully digital | |
| • No minimum deposit |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $100 | $100 | $0 | $0 |
| Time to open account | 1-3 days | 1 day | 1-3 days | 1-3 days | 1-3 days |
#2 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 required minimum balance, no withdrawal fee, and an inactivity fee only kicks in after one year, feel free to try City Index.
Below you can find links to all aspects of City Index in this comprehensive collection.
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#3 Best forex brokers for beginners
Forex.com
Forex.com is a global FX and CFD broker established in 2001. Forex.com is a brand of StoneX Financial Ltd, whose parent company StoneX Group Inc is listed on the NASDAQ Stock Exchange. The company is regulated by several financial authorities, including the top-tier Financial Conduct Authority (FCA) in the UK and the US Commodity Futures Trading Commission (CFTC).
Forex.com 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. 77% 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 great research tools
#3 Forex.com
Fees
Forex.com 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.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| EURUSD benchmark fee | $7.9 | $6.2 | $6.1 | $10.7 | $14.7 |
| GBPUSD benchmark fee | $5.7 | $4.9 | $5.0 | $8.6 | $9.3 |
| AUDUSD benchmark fee | $6.5 | $6.4 | $6.5 | $8.6 | $9.6 |
| EURCHF benchmark fee | $8.0 | $6.9 | $6.3 | $7.8 | $9.3 |
| EURGBP benchmark fee | $9.1 | $7.8 | $7.5 | $10.7 | $15.1 |
All spreads, commissions and financing rates for opening a position, holding for a week, and closing.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | Yes | Yes | Yes | No | Yes |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#3 Forex.com
Markets and products
Forex.com gives access to 91 currency pairs.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Currency pairs (#) | 338 | 84 | 91 | 105 | 205 |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Stocks | No | No | No | Yes | Yes |
| ETFs | No | No | No | Yes | Yes |
| Funds | No | No | No | Yes | No |
| Bonds | No | No | No | Yes | No |
| Options | No | No | No | Yes | Yes |
| Futures | No | No | No | Yes | No |
| CFDs | Yes | Yes | Yes | Yes | Yes |
| Crypto | Yes | Yes | Yes | Yes | No |
#3 Forex.com
Customer service
Forex.com has great customer service on the phone. Finding live chat is a bit tricky, but responses are relevant and fast. On the negative side, email support is slow and answers aren't always satisfactory.
| Pros | Cons |
|---|---|
| • Live chat | • No 24/7 support |
| • Great telephone support | • Slow email support |
| • 24-hour support Sunday to Friday |
#3 Forex.com
Research
Forex.com has great and diverse research functions. It provides good charting tools, trading tips based on technical analysis, and high-quality market reports. On the other hand, it lacks fundamental data.
| Pros | Cons |
|---|---|
| • Good interactive chart | • No fundamental data available |
| • Trading ideas | |
| • High-quality market reports |
#3 Forex.com
Account opening
Forex.com's account opening is seamless and fully digital, with a low minimum deposit. On the other hand, account verification takes around 2 business days, which is not the fastest on the market.
| Pros | Cons |
|---|---|
| • Fully digital | • Relatively slow account verification |
| • Low minimum deposit | |
| • User-friendly |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $100 | $100 | $0 | $0 |
| Time to open account | 1-3 days | 1 day | 1-3 days | 1-3 days | 1-3 days |
#3 Forex.com
Verdict
Forex.com is a great forex and CFD broker regulated by several financial authorities, such as the UK's FCA and the US CFTC.
On the positive side, it has low forex fees, many tradable currency pairs, and high-quality research tools.
It has some drawbacks though. Popular assets like real stocks or bonds are not available. Stock CFD fees are quite high, and the desktop platform is not easy to use.
Since there is no inactivity fee unless you don't trade for one year, feel free to try Forex.com today.
#4 Best forex brokers for beginners
Interactive Brokers
Interactive Brokers review summary
Interactive Brokers was founded in 1978 and is one of the biggest US-based discount brokers. The broker is regulated by several financial authorities globally, including top-tier ones like the UK's Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC).
As it has licenses from multiple top-tier regulators, Interactive Brokers is considered safe. Having a long track record and publicly disclosed financials while being listed on a stock exchange are also great signs for its safety.
Our overall Interactive Brokers rating
Compare this broker to the best Interactive Brokers alternative here.
Recommended for traders looking for low fees and a professional trading environment
#4 Interactive Brokers
Fees
Interactive Brokers has average 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.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| EURUSD benchmark fee | $7.9 | $6.2 | $6.1 | $10.7 | $14.7 |
| GBPUSD benchmark fee | $5.7 | $4.9 | $5.0 | $8.6 | $9.3 |
| AUDUSD benchmark fee | $6.5 | $6.4 | $6.5 | $8.6 | $9.6 |
| EURCHF benchmark fee | $8.0 | $6.9 | $6.3 | $7.8 | $9.3 |
| EURGBP benchmark fee | $9.1 | $7.8 | $7.5 | $10.7 | $15.1 |
All spreads, commissions and financing rates for opening a position, holding for a week, and closing.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | Yes | Yes | Yes | No | Yes |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#4 Interactive Brokers
Markets and products
Interactive Brokers gives access to 105 currency pairs.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Currency pairs (#) | 338 | 84 | 91 | 105 | 205 |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Stocks | No | No | No | Yes | Yes |
| ETFs | No | No | No | Yes | Yes |
| Funds | No | No | No | Yes | No |
| Bonds | No | No | No | Yes | No |
| Options | No | No | No | Yes | Yes |
| Futures | No | No | No | Yes | No |
| CFDs | Yes | Yes | Yes | Yes | Yes |
| Crypto | Yes | Yes | Yes | Yes | No |
#4 Interactive Brokers
Customer service
Interactive Brokers's customer service could be better. You can contact them via phone, email, live chat and an automated 'iBot', and receive mostly relevant answers. However, waiting times can be long and most options are not available 24/7.
| Pros | Cons |
|---|---|
| • Phone support | • No 24/7 support |
| • Live chat | • Slow support |
| • Relevant answers |
#4 Interactive Brokers
Research
Interactive Brokers has almost limitless research possibilities, but the user interface is overly complicated, hard to follow and not very well designed.
| Pros | Cons |
|---|---|
| • Good interactive chart | • Not user-friendly |
| • Trading ideas | |
| • Data on asset fundamentals |
#4 Interactive Brokers
Account opening
IB's account opening process is fully digital and the required minimum deposit is low. On the negative side, the process is complicated, and account verification takes relatively long.
| Pros | Cons |
|---|---|
| • Fully digital | • Not user-friendly |
| • No minimum deposit for most account types | • Confusing messages throughout the process |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $100 | $100 | $0 | $0 |
| Time to open account | 1-3 days | 1 day | 1-3 days | 1-3 days | 1-3 days |
#4 Interactive Brokers
Verdict
Interactive Brokers is one of the biggest US-based discount brokers, regulated by several top-tier regulators globally. We recommend this broker mainly for advanced traders.
On the plus side, IB has low fees, a vast range of available markets and products, and diverse research tools.
There are some drawbacks, though: we weren't satisfied with the level of customer service and the account opening process is complicated. The desktop platform is complex and hard to get a handle on, especially for beginners.
If you have experience navigating complex platforms and enjoy transparent, low-cost trading, Interactive Brokers could be a great fit for you.
#5 Best forex brokers for beginners
IG
IG was established in the UK in 1974 and is one of the biggest CFD brokers in the world. It is regulated by several bodies globally, including top-tier regulators like the UK's Financial Conduct Authority (FCA) and Germany's Federal Financial Supervisory Authority (BaFin). IG Group is listed on the London Stock Exchange.
IG is considered safe because it is listed on a stock exchange, discloses its financials and is overseen by top-tier regulators.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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. CFDs are not provided for US clients. Forex trading involves risk. Losses can exceed deposits.
Recommended for traders of any experience level looking for an easy-to-use trading platform
#5 IG
Fees
IG has high 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.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| EURUSD benchmark fee | $7.9 | $6.2 | $6.1 | $10.7 | $14.7 |
| GBPUSD benchmark fee | $5.7 | $4.9 | $5.0 | $8.6 | $9.3 |
| AUDUSD benchmark fee | $6.5 | $6.4 | $6.5 | $8.6 | $9.6 |
| EURCHF benchmark fee | $8.0 | $6.9 | $6.3 | $7.8 | $9.3 |
| EURGBP benchmark fee | $9.1 | $7.8 | $7.5 | $10.7 | $15.1 |
All spreads, commissions and financing rates for opening a position, holding for a week, and closing.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Account fee | No | No | No | No | No |
| Inactivity fee | Yes | Yes | Yes | No | Yes |
| Withdrawal fee | $0 | $0 | $0 | $0 | $0 |
#5 IG
Markets and products
IG gives access to 205 currency pairs.
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Currency pairs (#) | 338 | 84 | 91 | 105 | 205 |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Stocks | No | No | No | Yes | Yes |
| ETFs | No | No | No | Yes | Yes |
| Funds | No | No | No | Yes | No |
| Bonds | No | No | No | Yes | No |
| Options | No | No | No | Yes | Yes |
| Futures | No | No | No | Yes | No |
| CFDs | Yes | Yes | Yes | Yes | Yes |
| Crypto | Yes | Yes | Yes | Yes | No |
#5 IG
Customer service
IG provides close to 24/7 customer support that gives relevant answers. However, email answers and phone can be slow, while live chat is offline most of the time.
| Pros | Cons |
|---|---|
| • Phone support | • No 24/7 support |
| • Relevant answers | • Live chat is often offline |
#5 IG
Research
IG offers user-friendly research tools. Its news flow and charting tools are great. On the other hand, fundamental data is not available.
| Pros | Cons |
|---|---|
| • Good interactive chart | • No fundamental data available |
| • Trading ideas | |
| • User-friendly |
#5 IG
Account opening
IG's account opening is seamless and fully digital. There is no minimum deposit for bank transfers and a low, $/€300 minimum deposit for credit/debit cards and PayPal. On the other hand, account verification takes around 3 business days, which is slower than at some other brokers.
| Pros | Cons |
|---|---|
| • Fully digital | • Slower account opening |
| • Low minimum deposit | |
| • No minimum deposit for bank transfer |
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Minimum deposit | $0 | $100 | $100 | $0 | $0 |
| Time to open account | 1-3 days | 1 day | 1-3 days | 1-3 days | 1-3 days |
#5 IG
Verdict
IG is one of the biggest and most reliable CFD brokers. It is regulated by several financial authorities around the world. IG Group is listed on the London Stock Exchange.
IG has one of the best web trading platforms BrokerChooser has tested. The deposit and withdrawal conditions are great. You can also expand your knowledge with great educational materials.
On the other hand, there are some drawbacks. The forex and stock CFD fees are high and the product portfolio in most countries is limited to forex, CFDs and options. Customer support could be better.
Feel free to test IG's first-class trading platform, since there is no minimum funding amount for bank transfers and you can also easily open a demo account.
Best forex brokers for beginners
What makes a top forex broker for beginners?
Forex trading has become really popular over the last decade. Looking at important criteria like fees will help you find the forex broker most suitable for you.
At BrokerChooser, we test online brokers based on close to 500 criteria, using a real account and real money.
The most important factors to consider when selecting the top forex brokers are the fees of forex trading. Besides trading fees, you should also look at the range and quality of educational tools and the number of available currency pairs. Also make sure if the broker provides great research and advanced charting functions.
Best forex brokers for beginners
Forex broker fees
Fees, fees, fees. We bet this is always on your mind when you're looking for the best forex broker. It can be complicated. Let's see how we sorted it out.
It is not easy to compare forex broker fees, but we are here to help. Forex brokers can charge commissions, spreads and financing fees.
When it comes to commissions, there are two different fee structures forex brokers normally use:
- All trading fees are included in the spread except the financing rate. Basically, think of it as the broker giving you a wider spread than it gets from the market.
- 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 always mean it's more expensive.
When you trade forex on leverage and hold your position overnight, a fee will be charged. This is called financing cost. Financing costs change daily, and can add up if you hold your positions for a longer period.
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 available leverage for major currency pairs at many brokers.
Best forex brokers for beginners
Forex trading 101
Forex trading looks simple, but it comes with serious risks. Before trading, try to 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 like you, 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 rather than 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 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 with other markets, like the stock market
-
by using leverage, traders can easily trade with a 100 times more money than what they actually have on their trading account and thus magnify profits (or losses!)
-
the market is open 24 hours a day, 5 days a week
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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 finding a partner to trade with
Although it looks easy, trading forex can be risky if you don't know what you're doing. By using high leverage carelessly, 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 article about the best free trading apps.
Forex market trading hours
The forex market is open from 11:00 PM Sunday until 11:00 PM Friday, London time.
Trading activity is usually at its highest when London and New York are both open.
It is important to note 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 want to spend it in British pounds (GBP). In this case, you exchange euros to pounds.
When you trade 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 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 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 bid and ask prices mean. 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 to 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 the bid price. 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 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 $1,000 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 $1,000 (1%*$100,000), that is, all 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. Spot and CFD contracts are the most commonly traded.
A spot contract is 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 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 CFDs are and how you can trade them, 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 process is not visible to 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 payment 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 on a case-by-case basis. Let's take as an example 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 only small amounts to invest. For example, if you want to trade one EURUSD futures contract on the CME, you need to have at least $2,000 on your account.
What drives forex market prices?
As we said before, everybody has an opinion about the forex market, because it seems so simple. However, currency markets are among the most unpredictable in the world.
Everything, from monetary policies and government spending to politics and wars, can influence the prices of currency pairs. Therefore, it is difficult to predict which way they are going move.
Nevertheless, economic calendars can help, so at least you know about and can prepare for scheduled events (such as statistical data releases or central bank rate-setting meetings) that could have an impact on the forex market.
Best forex brokers for beginners
Bottom line
You saw the details, now let's zoom out. Here are the top forex brokers for beginners in 2021 for citizens in St. Pierre & Miquelon:
| CMC Markets | City Index | Forex.com | Interactive Brokers | IG | |
|---|---|---|---|---|---|
| Fees score | 3.7 stars | 3.9 stars | 3.9 stars | 4.2 stars | 3.1 stars |
| Markets and products score | 2.2 stars | 2.0 stars | 1.9 stars | 5.0 stars | 3.9 stars |
| Education score | 5.0 stars | 5.0 stars | 4.5 stars | 4.5 stars | 5.0 stars |
| Charting quality | High | High | High | High | High |
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67% of retail CFD accounts lose money |
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70% of retail CFD accounts lose money |
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77% of retail CFD accounts lose money |
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70% of retail CFD accounts lose money |
CMC Markets is our winner, the best forex broker for beginners for Saint-Pierrais or Miquelonnais citizens in 2021. Low forex fees. Great web and mobile platforms. Advanced research and educational tools.
All of the brokers we highlighted are great choices. But watch out, forex trading can be risky. If you think you know enough and are good to go, pick your favourite and take the next step in your trading journey. Let us know what you think in the comments section.
Still unsure? Use our broker finder and find the best broker for you.
