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Forex Trading Accounts

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Written By
James Barra
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Written By
James Barra
James is an investment writer with a background in financial services. As a former management consultant, he has worked on major operational transformation programmes at prominent European banks. James authors, edits and fact-checks content for a series of investing websites.
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Edited By
Tobias Robinson
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Edited By
Tobias Robinson
Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.
» Tobias Robinson Profile Page
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Fact Checked By
William Berg
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Fact Checked By
William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Updated
Jul 24, 2024

Forex trading accounts connect retail investors with the currency markets. You will likely have to choose between several account types when you sign up. But importantly, the best forex trading accounts are those that suit your personal needs.

In this guide, we review the hottest forex trading account options for 2025. We also discuss geographical considerations, standard accounts versus managed and funded trading solutions, plus how mini and micro FX accounts work.

Top 10 Forex Trading Accounts

Click a broker for details
  1. 1
    FOREX.com
    Active Trader Program With A 15% Reduction In Costs
    Ratings
    4.9 / 5
    4 / 5
    4.3 / 5
    4.6 / 5
    4.6 / 5
    4.3 / 5
    4.8 / 5
    4.5 / 5
    3.6 / 5
    3.8 / 5
    $100
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Stocks, Futures, Futures Options
    MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
    Wire Transfer, Credit Card, Debit Card, Visa, Mastercard, Skrill, Neteller, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, PLN
    Go To FOREX.com
  2. 2
    NinjaTrader
    Ratings
    4.3 / 5
    2.8 / 5
    2.9 / 5
    4.3 / 5
    4.5 / 5
    4 / 5
    4 / 5
    4 / 5
    3 / 5
    3.2 / 5
    $0
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Stocks, Options, Commodities, Futures, Crypto
    NinjaTrader Desktop, Web & Mobile, eSignal
    ACH Transfer, Debit Card, Wire Transfer, Cheque
    USD
    Go To NinjaTrader
  3. 3
    Interactive Brokers
    Ratings
    4.5 / 5
    3.5 / 5
    4.6 / 5
    4.3 / 5
    3.3 / 5
    3 / 5
    4.4 / 5
    4.3 / 5
    4.3 / 5
    4.5 / 5
    $0
    $100
    1:50
    FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
    Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
    Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral
    Cheque, ACH Transfer, Wire Transfer, Automated Customer Account Transfer Service, TransferWise, Debit Card
    USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF
    Go To Interactive Brokers
  4. 4
    OANDA US
    CFDs are not available to residents in the United States.
    Ratings
    4.5 / 5
    3.5 / 5
    2.8 / 5
    4 / 5
    4.5 / 5
    3.5 / 5
    4.3 / 5
    3.8 / 5
    4.7 / 5
    3.7 / 5
    $0
    0.01 Lots
    1:50
    NFA, CFTC
    Forex, Crypto with Paxos (Cryptocurrencies are offered through Paxos. Paxos is a separate legal entity from OANDA)
    OANDA Trade, MT4, TradingView, AutoChartist
    Wire Transfer, Visa, Mastercard, Debit Card, ACH Transfer
    USD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD
    Go To OANDA US
  5. 5
    Videforex
    20% to 200% Deposit Bonus
    Ratings
    2.5 / 5
    3 / 5
    3.5 / 5
    3.3 / 5
    3.5 / 5
    4.5 / 5
    1.3 / 5
    1.3 / 5
    4.1 / 5
    4.4 / 5
    $250
    $0.01
    1:500
    Binary Options, CFDs, Forex, Indices, Commodities, Crypto
    TradingView
    Skrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum Payments
    USD, EUR, GBP, AUD, RUB
    Go To Videforex
  6. 6
    xChief
    $100 No Deposit Bonus
    Ratings
    4 / 5
    3.8 / 5
    3.7 / 5
    3 / 5
    4.3 / 5
    3.5 / 5
    3.5 / 5
    3.3 / 5
    0 / 5
    0 / 5
    $10
    0.01 Lots
    1:1000
    ASIC
    CFDs, Forex, Metals, Commodities, Stocks, Indices
    MT4, MT5
    Wire Transfer, Bitcoin Payments, Credit Card, UnionPay, Skrill, Neteller, WebMoney, Perfect Money, Debit Card, Ethereum Payments, FasaPay, Volet
    USD, EUR, GBP, JPY, CHF
    Go To xChief
  7. 7
    Capitalcore
    40% Deposit Bonus up to $2,500
    Ratings
    3.3 / 5
    3.8 / 5
    3.5 / 5
    3 / 5
    3.8 / 5
    3.5 / 5
    2.5 / 5
    3.5 / 5
    0 / 5
    0 / 5
    $10
    0.01 Lots
    1:2000
    IFSA
    Forex, Metals, Stocks, Cryptos, Futures Indices
    WebTrader, Pro
    Ethereum Payments, Mastercard, Visa, Perfect Money, Bitcoin Payments, Debit Card, Credit Card, PayPal
    USD
    Go To Capitalcore
  8. 8
    UnitedPips
    40% Deposit Bonus
    Ratings
    2 / 5
    3.5 / 5
    3 / 5
    3.8 / 5
    3.5 / 5
    3.5 / 5
    2.8 / 5
    2.5 / 5
    0 / 5
    0 / 5
    $10
    0.01 Lots
    1:1000
    IFSA
    CFDs, Forex, Precious Metals, Crypto
    UniTrader
    PayPal, Credit Card, Debit Card, Perfect Money, Bitcoin Payments, Ethereum Payments
    USD
    Go To UnitedPips
  9. 9
    Plexytrade
    120% Cash Welcome Bonus
    Ratings
    1.5 / 5
    2.5 / 5
    2.5 / 5
    3.3 / 5
    2.5 / 5
    3.5 / 5
    0.5 / 5
    0.5 / 5
    4.8 / 5
    4.7 / 5
    $50
    0.01
    1:2000
    CFDs, Forex, Indices, Stocks, Commodities, Crypto
    MT4, MT5
    Bitcoin Payments, Ethereum Payments
    USD, EUR
    Go To Plexytrade
  10. 10
    RedMars
    Ratings
    3.3 / 5
    3.5 / 5
    3.8 / 5
    3.5 / 5
    3.8 / 5
    4 / 5
    2.8 / 5
    3 / 5
    4.7 / 5
    4.6 / 5
    €250
    0.01 Lots
    1:30 (Retail), 1:500 (Pro)
    CySEC, AFM
    CFDs, Forex, Stocks, Indices, Commodities, Cryptos
    MT5
    Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, Visa
    USD, EUR
    Go To RedMars

Here is a short overview of each broker's pros and cons

  1. FOREX.com - FOREX.com continues to uphold its stature as a premier FX broker, offering over 80 currency pairs and boasting some of the most competitive fees in the industry. With EUR/USD spreads dipping as low as 0.0 and $5 commission per $100k, it stands out. Moreover, its SMART Signals help to identify price behaviors across numerous major currency markets.
  2. NinjaTrader - NinjaTraders supports the trading of popular currencies including the EUR/USD. The software also offers advanced features to streamline the trading experience, including complex order types like market if touched (MIT) and one cancels other (OCO).
  3. Interactive Brokers - IBKR presents an extensive range of over 100 major, minor, and exotic forex pairs, surpassing the offerings of nearly all leading alternatives, though not CMC Markets. Forex trading occurs over multiple platforms and boasts institutional-grade spreads starting from 0.1 pips and 20 complex order types, including brackets, scale, and one-cancels-all (OCA) orders.
  4. OANDA US - OANDA offers a diverse selection of 68 currency pairs, more than many alternatives. The broker’s in-house platform offers superb day trading capabilities via powerful TradingView charts, including 65+ technical indicators and 11 customizable chart types.
  5. Videforex - Videforex offers trading on 35 currency pairs through leveraged CFDs with spreads from 0.1 pips. Alternatively, traders can use binaries to speculate on upward/downward price movements with payouts up to 98%. Integrated technical analysis, economic calendars, and market news, all available within the platform, help support FX trading decisions.
  6. xChief - xChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs. Trading takes place on the leading MT4 and MT5 platforms, which offer dozens of in-built technical tools for short-term forex strategies.
  7. Capitalcore - Capitalcore offers a modest selection of around 35 currency pairs, which is very limited compared to CMC Markets' 300+ pairs. Spreads are lowest on the VIP account (0.4 pips on EUR/USD), but become less competitive in Classic and Silver accounts (1.5 pips on EUR/USD), and there aren't any zero spreads.
  8. UnitedPips - UnitedPips supports trading on over 40 major, minor and exotic currency pairs. To help inform trading decisions, it offers daily market analysis with fundamental and technical insights into prominent currency pairs like AUD/USD and EUR/USD.
  9. Plexytrade - Plexytrade presents major, minor, and exotic forex pairs for trading, with leverage reaching 1:2000 and raw spreads starting from 0.0 - an enticing proposition for advanced traders seeking gains from minor price shifts. However, the downside lies in the limited selection, with only 41 currency pairs available, significantly fewer than the 100+ forex assets at IG.
  10. RedMars - RedMars strongest investment category is forex with more than 50 currency pairs, from majors to minors and exotics. Spreads start from 0.0 pips, catering to active currency traders, and leverage can reach 1:500. However, there are no forex heatmaps or research tools to support aspiring forex traders.

Forex Trading Accounts Comparison

Forex Trading Accounts Comparison
Broker Forex Assets EUR/USD Spread Forex App Rating Minimum Deposit Regulator
FOREX.com logo
80+ 1.2 4.9 / 5 $100 NFA, CFTC
NinjaTrader logo
50+ 1.3 3.5 / 5 $0 NFA, CFTC
Interactive Brokers logo
100+ 0.08-0.20 bps x trade value 4.3 / 5 $0 FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM
OANDA US logo
65+ 1.6 4 / 5 $0 NFA, CFTC
Videforex logo
35+ 0.1 2.5 / 5 $250 -
xChief logo
40 0.4 - $10 ASIC
Capitalcore logo
35+ 0.4 - $10 IFSA
UnitedPips logo
40+ 0.7 - $10 IFSA
Plexytrade logo
40+ 0.7 4.8 / 5 $50 -
RedMars logo
50+ 0.7 4.7 / 5 €250 CySEC, AFM

FOREX.com

"FOREX.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."

Christian Harris, Reviewer

FOREX.com Quick Facts

Bonus OfferActive Trader Program With A 15% Reduction In Costs
GBPUSD Spread1.3
EURUSD Spread1.2
EURGBP Spread1.4
Total Assets80+
Leverage1:50
PlatformsMT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, PLN

Pros

  • FOREX.com offers industry-leading forex pricing starting from 0.0 pips, alongside competitive cashback rebates of up to 15% for serious day traders.
  • Alongside a choice of leading platforms, FOREX.com offers a superb suite of supplementary tools including Trading Central research, SMART Signals pattern scanner, trading signals, and strategy builders.
  • There’s a wealth of educational resources including tutorials, webinars, and a stacked YouTube channel to help you get educated in the financial markets.

Cons

  • Funding options are limited compared to leading alternatives like IC Markets and don’t include many popular e-wallets, notably UnionPay and POLi.
  • Demo accounts are frustratingly time-limited to 90 days, which doesn’t give you enough time to test day trading strategies effectively.
  • There’s no negative balance protection for US clients, so you may find yourself owing more money than your initial deposit into your account.
Visit FOREX.com
FOREX.com Review

NinjaTrader

"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."

Tobias Robinson, Reviewer

NinjaTrader Quick Facts

GBPUSD Spread1.6
EURUSD Spread1.3
EURGBP Spread1.6
Total Assets50+
Leverage1:50
PlatformsNinjaTrader Desktop, Web & Mobile, eSignal
Account CurrenciesUSD

Pros

  • Traders can get free platform access and trade simulation capabilities in the unlimited demo
  • NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
  • Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract

Cons

  • The premium platform tools come with an extra charge
  • There is a withdrawal fee on some funding methods
  • Non forex and futures trading requires signing up with partner brokers
Visit NinjaTrader
NinjaTrader Review

Interactive Brokers

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

Christian Harris, Reviewer

Interactive Brokers Quick Facts

GBPUSD Spread0.08-0.20 bps x trade value
EURUSD Spread0.08-0.20 bps x trade value
EURGBP Spread0.08-0.20 bps x trade value
Total Assets100+
Leverage1:50
PlatformsTrader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral
Account CurrenciesUSD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF

Pros

  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • IBKR is one of the most respected and trusted brokerages and is regulated by top-tier authorities, so you can have confidence in the integrity and security of your trading account.
  • IBKR continues to deliver unmatched access to global stocks with tens of thousands of equities available from 100+ market centres in 24 countries, most recently the Saudi Stock Exchange.

Cons

  • IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
Visit Interactive Brokers
Interactive Brokers Review

OANDA US

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

Jemma Grist, Reviewer

OANDA US Quick Facts

GBPUSD Spread3.4
EURUSD Spread1.6
EURGBP Spread1.7
Total Assets65+
Leverage1:50
PlatformsOANDA Trade, MT4, TradingView, AutoChartist
Account CurrenciesUSD, EUR, GBP, CAD, AUD, JPY, CHF, HKD, SGD

Pros

  • The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
  • The broker offers a transparent pricing structure with no hidden charges
  • There's a strong selection of 68 currency pairs for dedicated short-term forex traders

Cons

  • The range of day trading markets is limited to forex and cryptos only
  • It's a shame that customer support is not available on weekends
  • There's only a small range of payment methods available, with no e-wallets supported
Visit OANDA US
OANDA US Review

Videforex

"Videforex will serve traders looking for a no-frills, easy-to-use platform to speculate on the direction of popular financial markets through binaries. With a sign-up process that takes a matter of minutes and a web-accessible platform, getting started is a breeze. "

William Berg, Reviewer

Videforex Quick Facts

Bonus Offer20% to 200% Deposit Bonus
GBPUSD Spread0.1
EURUSD Spread0.1
EURGBP Spread0.1
Total Assets35+
Leverage1:500
PlatformsTradingView
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Videforex is one of the few brokers with 24/7 multilingual video support, providing comprehensive assistance for active traders.
  • Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, bringing it in line with competitors like IQCent.
  • Videforex regularly runs trading contests, offering practice opportunities and cash prizes to beginners and experienced traders, with position sizes from just ¢0.01.

Cons

  • The absence of any educational tools is a serious drawback for newer traders who can find blogs, videos and live trading sessions at category leaders.
  • Videforex lacks authorization from a trusted regulator, meaning traders may receive little to zero safeguards like segregated client accounts.
  • The client terminal needs improvements based on our latest tests, sporting sometimes slow and unresponsive widgets which could dampen the experience for day traders.
Visit Videforex
Videforex Review

xChief

"xChief continues to prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The broker's rebate scheme and investment accounts will particularly appeal to seasoned traders. However, the lack of top-tier regulatory oversight is a major drawback."

William Berg, Reviewer

xChief Quick Facts

Bonus Offer$100 No Deposit Bonus
GBPUSD Spread0.9
EURUSD Spread0.4
EURGBP Spread0.9
Total Assets40
Leverage1:1000
PlatformsMT4, MT5
Account CurrenciesUSD, EUR, GBP, JPY, CHF

Pros

  • xChief delivers a high-quality day trading environment via the MT4 and MT5 platforms, with market-leading charts, indicators and tools
  • Traders can access a copy trading solution via the MetaQuotes Signals service
  • The low minimum deposit of $10 will appeal to beginners, as well as the beginners’ guides in the Library

Cons

  • The broker trails competitors when it comes to research tools and educational resources
  • The Classic+ and Cent accounts provide access to fewer instruments than the other account types, at 50+ and 35+, respectively
  • The total range of 150+ assets is much lower than most competitors who typically offer hundreds
Visit xChief
xChief Review

Capitalcore

"The major selling points of Capitalcore are its high leverage options up to 1:2000 and zero commission or swap fees. However, its weak regulatory oversight from the IFSA and non-existent education place it far behind the top brokers."

Christian Harris, Reviewer

Capitalcore Quick Facts

Bonus Offer40% Deposit Bonus up to $2,500
GBPUSD Spread0.5
EURUSD Spread0.4
EURGBP Spread0.5
Total Assets35+
Leverage1:2000
PlatformsWebTrader, Pro
Account CurrenciesUSD

Pros

  • Unlike most brokers, Capitalcore offers an unlimited demo account that takes under 5 minutes to open.
  • Capitalcore is one of the only brokers to charge zero swap fees, which may appeal to Islamic traders looking to comply with Islamic Finance.
  • The Capitalcore platform provides comprehensive charting tools and a wide range of 150+ technical indicators, ideal for detailed market analysis.

Cons

  • Platform support is limited to proprietary software, so there's no integration with the market-leading MetaTrader or cTrader, which offer built-in economic news and support automated trading.
  • Capitalcore’s threadbare education and research seriously trail category leaders like IG, making it less suitable for aspiring traders.
  • Capitalcore is not regulated by major financial authorities and has an unproven reputation, raising concerns about the safety of client funds.
Visit Capitalcore
Capitalcore Review

UnitedPips

"UnitedPips is ideal for traders seeking leveraged trading opportunities, the security of fixed spreads, and the flexibility to deposit, withdraw, and trade cryptocurrencies - all in one sleek TradingView-powered platform."

Christian Harris, Reviewer

UnitedPips Quick Facts

Bonus Offer40% Deposit Bonus
GBPUSD Spread1.3
EURUSD Spread0.7
EURGBP Spread1.1
Total Assets40+
Leverage1:1000
PlatformsUniTrader
Account CurrenciesUSD

Pros

  • UnitedPips offers impressive leverage up to 1:1000 with zero swap fees or commissions, which can enhance potential returns for day traders and swing traders looking to control prominent positions with less capital.
  • UnitedPips’ platform performs well, with an intuitive design that will appeal to beginners, while the TradingView integration delivers powerful charting tools without overwhelming users, making it straightforward to execute trades efficiently.
  • Although being handed off mid-chat due to shift changes during testing was frustrating, customer support is generally good with quick, helpful responses, and 24/7 support via phone and email for regional teams is a definite advantage.

Cons

  • Unlike brokers such as IG, UnitedPips is an offshore broker not regulated by any 'green tier' financial authorities, raising concerns for traders seeking assurance and protection under well-established regulatory frameworks.
  • UnitedPips' selection of tradable instruments is still minimal, comprising a bare minimum selection of forex, metals and crypto. There are no equities, indices or ETFs, which may be a drawback for experienced traders looking for diverse opportunities.
  • UnitedPips lacks comprehensive research, while the educational content for beginner traders is woeful. Compared to brokers like eToro, which offers tutorials, webinars, and advanced courses, UnitedPips offers minimal resources to help new traders understand key concepts.
Visit UnitedPips
UnitedPips Review

Plexytrade

"Plexytrade is a newcomer in the brokerage scene with attention-grabbing features like 1:2000 leverage, zero spreads on select instruments and fast execution speeds of less than 46 milliseconds. However, the absence of regulation is a significant concern, while the non-existent research and educational tools place it far behind industry frontrunners."

Christian Harris, Reviewer

Plexytrade Quick Facts

Bonus Offer120% Cash Welcome Bonus
GBPUSD Spread0.8
EURUSD Spread0.7
EURGBP Spread1.1
Total Assets40+
Leverage1:2000
PlatformsMT4, MT5
Account CurrenciesUSD, EUR

Pros

  • There are various VPS packages starting from $50 per month, but they become complimentary once specific deposit thresholds are reached.
  • Plexytrade accommodates a range of trading methods and short-term strategies, including scalping, hedging, and automated trading.
  • Despite lacking regulation, Plexytrade provides negative balance protection and reinforces safety protocols by holding client funds in segregated accounts.

Cons

  • There are no social or copy trading features for inexperienced traders to replicate the trades of more experienced investors, trailing category leaders like eToro.
  • There are no research and educational materials, falling short of alternatives like IG, while access to the economic calendar is restricted to clients with balances of $500.
  • Plexytrade lacks regulation in major jurisdictions, significantly increasing the risks of opening an account and depositing funds.
Visit Plexytrade
Plexytrade Review

RedMars

"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."

Christian Harris, Reviewer

RedMars Quick Facts

GBPUSD Spread0.7
EURUSD Spread0.7
EURGBP Spread1.1
Total Assets50+
Leverage1:30 (Retail), 1:500 (Pro)
PlatformsMT5
Account CurrenciesUSD, EUR

Pros

  • Clients in the EU, in particular, can trade with peace of mind knowing RedMars is authorized by the CySEC with up to €20K compensation available through the ICF in the event of bankruptcy
  • The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
  • RedMars offers one of the best platforms for day trading, MT5, hosting 21 timeframes, dozens of analytical tools, flexible templates and algo trading

Cons

  • The no-frills trading environment offers little beyond the basics, with no Islamic account, PAMM account or copy trading.
  • With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets
  • While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
Visit RedMars
RedMars Review

Opening A Forex Trading Account

So, what do you need to consider when opening a new forex trading account?

There is 3 step process for opening a forex trading account:

  1. Fill out any application forms and provide the information your brokerage requires
  2. Fund your FX account using a traditional payment solution or e-wallet
  3. Start looking for investment opportunities in major, minor or exotic currency pairs

Services-wise, you are looking for:

When you fill out your application forms, be aware that you may have to provide information on your employment status, investable assets, and net worth. Some investors understandably find such probing intrusive.

You may also have to provide a copy of your ID/driver’s license. If you want to trade options or gain access to margin, you may have to provide additional information.

Forex brokers generally accept several account-funding methods:

Some may accept asset transfers and even paper stock certificates.

Which Is The Best Forex Trading Account?

The best account type for you is the one that suits your needs and personal profile. Some factors to consider are your investment objectives and the type of trader you are, for example, day trader, swing trader or long-term investor.

Investment Objectives

Most “casual” traders invest with a relatively short-term goal. The “make some money” mantra is the main driver behind such efforts. If this mantra describes your investment objectives, you likely need a traditional online brokerage account. Such accounts do not generally offer any tax advantages. On the other hand, they do not tie up your investments long-term either.

You may also be able to trade forex on margin with such an account. Margin trading involves borrowing money from the broker. The FX assets in your account will serve as collateral. This carries risks.

If your goal is to secure your nest egg for retirement, an IRA (Individual Retirement Account) is the best option. All IRA options, such as Traditional IRA, Roth IRA, and Rollover IRA offer tax benefits. On the downside, you will not be able to touch this money before you are old.

Types Of Investor

USDEUR Live Forex Chart

USDEUR Chart by TradingView

Forex Trading Account Types

There are four basic account types (standard, funded, mini, managed) and a few additional variants, such as micro, Islamic, demo, and VIP.

Standard Forex Trading Accounts

The name of this account option stems from the standard lots to which it gives traders access. A typical currency lot is worth $100,000. Such a lot size seemingly places this account type out of the reach of average traders.

However, you do not need to have $100,000 in your account to trade. The existence of margin and leverage means that you only need $1,000 to use a standard lot. Leverage varies. In the EU, for example, it is capped at 1:30. In other regions, you can find rates up to 1:500, even on standard accounts.

Forex day trading platforms offer full services for this type of account. They require upfront capital, so these are all depositing traders. The profit potential is significant as well.

On the downside, the same goes for loss potential. For this reason, you should only trade through a standard account if you are an experienced trader.

Funded Forex Trading Accounts

Some firms and other financial organizations fund specific forex traders. They provide starting capital in exchange for a share of future profits.

Account owners usually need to pass an evaluation program. If the company’s analysts consider them good candidates, they grant a funded account.

Funding can run into millions of dollars, and profit splits in the 50% range. The brokerage pays out the profits periodically. These accounts carry monthly profit targets. Forex traders who fulfil these targets can gain additional funding.

What do you need to do to secure this account:

  1. Sign up for the evaluation program
  2. Trade forex through the evaluation account and reach the targets
  3. Earn a proper funded account and start making money for you and the account provider

Mini & Micro Forex Trading Accounts

A standard forex trading account features $100,000 lots. For investors who cannot afford to trade in that league, despite margin and leverage, mini accounts offer an alternative. They support mini lots worth $10,000 each. Mini versions usually accompany standard ones, and they target new FX traders.

Micro accounts take this approach further, supporting micro lots of $1,000. This makes them even more affordable. Similar to the mini solutions, they target forex beginners.

The main advantage of mini and micro resides in risk reduction. You can open an FX trading account for a mere $250-$500. Even professional traders like them. They can test strategies in a low-risk, real-money environment. Importantly, trading forex in lower increments prolongs your funds. Thus, you can better micro-risk-manage them.

The obvious downside is that risk/loss minimization reduces profit potential. Therefore, such forex trading accounts are less suited to cover the profit needs of advanced traders.

Managed Forex Trading Accounts

Forex trading account management works as follows: a managed account holds your cash but defers decision-making to a third party. You make a deposit, and someone else – often a broker-side expert – trades on your behalf. You may also be able to set objectives.

Why would you want to give up control through such a trading account?

Managers provide a risk rating to these pooled funds based on their risk tolerance. Those seeking more earnings choose riskier investments, while those with a lower risk tolerance choose a safer route and usually earn less.

The top advantage of a managed account is that it allows you to cash in on the skills of forex professionals. Furthermore, you get to do it hands-off.

Having a forex expert will lower your profits because of the commission. They often require larger deposits than regular accounts. Individual ones may need as much as $10,000. Pooled options are slightly cheaper at around $2,000.

To decide which is the best managed account, you can find reviews online. Check for benefits, drawbacks, performance, cost, account managers, the regional availability (like South Africa, USA, UK, Australia, etc), and any other criteria which interest you.

Islamic Forex Trading Accounts

Islam generally holds trading to be haram (not permitted). However, there are arguable ways to turn it into halal (permitted).

All forex trading activity has to adhere to the principles of Islamic finance:

Islamic accounts are swap-free accounts, through which transactions and the payments of costs happen instantly. In the context of Islamic forex trading accounts, the margin, commissions, and administrative fees are not riba.

VIP Forex Trading Accounts

Brokers reserve their VIP forex trading accounts for their most active clients. A VIP account holder enjoys special benefits, such as superior trading conditions and tighter spreads. The trading platform often invites them to special events or offers rewards.

To gain access to such an account, you usually need to deposit a considerable amount of money (often upward of $100,000). You will also need to trade forex frequently and normally meet specific trade volume requirements.

Demo Forex Trading Accounts

A forex demo account, or a dummy account, is the “play money” simulation of a real account. It allows investors to test the platform and trading conditions. Some clients use them to test-run strategies.

When you sign up for a free account, the brokerage credits it with virtual funds. Some offer the same functionality as a standard/mini/micro account. Others limit their users’ access to certain features.

You can open a demo forex trading account no matter where you are in the world, be it India, USA, UK, Canada, Philippines, Jamaica, or even Pakistan. From a brand’s website, you can download one for free, create an account, and login.

Geographical Considerations

Sometimes, your geographical location can play a role in your account type selection. Some jurisdictions may limit certain trade types. In the US, there is no CFD trading. The practice is against US securities laws.

Leverage varies greatly between EU-regulated countries and other parts of the world. The EU’s forex margin is limited to 1:30 by ESMA, the European regulator. In other parts of the world, like India and South Africa, leverage can be offered up to 1:1000 (though 1:400 or 1:500 is typical).

The taxes you have to pay on your profits also vary from one jurisdiction to another. Read our taxes page for more on that.

Final Thoughts

There are many types of forex trading accounts. The best one will suit your needs, experience, trading style, and risk tolerance. When choosing a solution, keep in mind their reputation, rewards, services, and ease of use. You can always start with a demo account to test your strategies and the trading platform.

FAQ

Can You Open A Forex Trading Account At A Bank?

Some banks offer this service, such as the First National Bank (FNB) in South Africa. Check with your local banking provider.

Is There A Free Forex Trading Account With Real Money?

Funded or demo forex accounts allow you to earn money while learning without risking your capital. They often come with training and many learning resources. This option is ideal for beginner forex day traders.

How Can I Tell The Difference Between A Live Forex And A Demo FX Account?

By definition, a live forex trading account involves real money, while a demo account uses virtual capital. Importantly though, investors still operate under real-time trading conditions with a paper trading solution.

Do I Need A Demat Account To Trade Forex?

A demat (dematerialized) account holds equities (shares), bonds, and mutual funds in an electronic form. This is not needed for trading forex and commodities.

Which Are The Best Forex Trading Demo Accounts?

The best forex trading practice accounts offer hassle-free access to the currency pairs you are interested in and let you test the platform’s features. You can also use them to trial new techniques before investing real money.

Do Forex Trading Accounts Offer A Sign-up Bonus?

This depends on the provider. Some forex brands offer up to 100% sign-up deposit bonuses. Check terms and conditions for bonus amounts and offers.