17 🥇 Best Floating Spread Forex Brokers – ( Reviewed ) 2020

 

 

 

According to research in South Africa, ECN Forex brokers will offer floating spreads or variable spreads, according to research in South Africa we have compiled a comprehensive list of the 17 best floating spread Forex brokers.

A spread, in simple terms, means the difference in prices between where a trader will buy or sell a basic asset, the difference between the bid price and the ask price.

Floating spreads are also known as variable spreads. As the name suggests, variable spreads are always changing. With these spreads, there is a continuous change in the difference between the bid and ask prices of an asset.

Floating spreads are offered by direct market access brokers who utilize Electronic Communication Networks (ECN).

An ECN Forex broker provides a platform where banks, private investors and market makers, trade together and usually offer lower spread trading, but they also pay commission to the broker

In this model the broker gets the pricing of assets from several liquidity providers and passes on that price without a dealing desk.

Spreads will therefore widen or narrow based on market volatility and demand.

A Forex trader has to be careful with floating spreads, however, since the volatility of the market may make it difficult to gauge how a trade may end up.

The market may have a “narrower” or better spread than the fixed one upon entry, but a spread could increase up to 8-10 pips for main currency pairs and leave a trader in trouble.

As in anything, you have to know what you are doing and be prepared for all contingencies.

This list of 17 best Floating Spread Forex Brokers is not ranked in any particular order but is rather a comprehensive list of great brokers to choose from.

 

A review of FP Markets
 

FP Markets

 

FP Markets is an Australian CFD and Forex broker that was founded in 2005 and is regulated by the Australian ASIC and the Cypriot CySEC.

They offer MT4, MT5 platforms as well as over 50 currency pairs, gold, silver, CFDs, Indices, stocks and cryptos to trade with.

 

Features

 

  • Leverage is 500:1 when trading currency.
  • Offer Direct Markets Access (DMA)
  • Demo Account for beginning traders
  • 50 plus currency pairings to trade

 

Pros and Cons

 

Pros Cons
Easy and fast account opening Limited product portfolio
Low trading fees High CFD fees
Fast execution of trades High minimum deposit
Low Forex fees High fee for international bank withdrawal
Good platform options

 

A review about FXTM
 

FXTM

 

FXTM, established in 2012, is licensed and regulated in the UK, South Africa, Belize, Cyprus and Mauritius.

FXTM has their main offices in Cyprus with other offices in major cities like London, Germany, Poland, France, Spain, Italy, Turkey, China, Thailand, South Korea, Malaysia, India and Nigeria.

FXTM offers tight spreads and trading in all currency pairs as well as a wide range of other financial products and derivatives.

They also boast an impressive list of awards.

 

Features

 

  • Allows hedging
  • Great selection of educational tools
  • Low stock index CFD fees
  • Spreads as low as 0.1 pip for a standard account and 0 pips for ECN based trading accounts

 

Pros and Cons

 

Pros Cons
Low minimum deposit Inactivity and withdrawal fees
Fantastic Customer Service High CFD fees
Fast and easy account opening Limited product portfolio
Well regulated Broker
Very competitive Forex fees

 

A review about Alpari
 

Alpari

 

Alpari was established in 1998 but went through a relaunch in 2014.  They are based in Mauritius and are regulated by the Financial Services Commission (FSC) of the Republic of Mauritius as well.

Alpari gives their traders access to more than 250 markets in Forex, Stocks, Indices, Metals and Cryptocurrencies and boasts more than $1.3 trillion in trading turnover per year.

They offer both the MetaTrader 4 and MetaTrader 5 platforms on Desktop, Web and Mobile formats.

Both beginner and experienced traders will find a good fit with Alpari with demo accounts and educational resources.

 

Features

 

  • Maximum leverage as high as 1000 to 1
  • Over 60 Forex currency pairs and crosses available for trading
  • Low min deposit
  • Choice between ECN and market-maker execution models
  • Regulated by an offshore industry center (FSC Mauritius)

 

Pros and Cons

 

Pros Cons
Demo Accounts and Social Trading Limited educational resources
Great copy trading broker Lack of resource tools
Diverse selection of tradeable assets High fees
Good support in over 30 languages Withdrawal fees
Low minimum deposit

 

A review of XM
 

XM

 

Established in 2017, XM Global, offers more than 1000 financial instruments which includes Forex Trading, Stocks CFDs, Commodities CFDs, Equity Indices CFDs, Precious Metals CFDs and Energies CFDs.

XM offers over 55 currency pairs for Forex trading.

XM offers both the MetaTrader 4 and MetaTrader 5, the most widely used platforms in trading and is used by over 70 000 Forex traders.

 

Features

 

  • Allows scalping
  • Offers negative balance protection
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows Hedging

 

Pros and Cons

 

Pros Cons
Low withdrawal fees Inactivity fee
Easy and fast account opening Average Forex fees
No withdrawal fee
Great educational tools and resources

 

A review of GO Markets
 

GO Markets

 

GO Markets is one of the leading and trusted Australian regulated brokers and offers more than 350 tradeable CFD instruments including Forex, Shares, Indices and Commodities and Cryptocurrencies.

They have offices in Melbourne, London, Taipei and Hong Kong and were founded in 2006.

 

Features

 

  • Allows hedging
  • Allows scalping
  • Offers STP
  • Regulated by ASIC
  • Offers Negative Balance Protection

 

Pros and Cons

 

 
Pros Cons
Ultra-fast trade executions Only two account types available
Innovative technology Clients from many jurisdictions not accepted
Great trading and analysis tools Not available in the US
Highly regulated broker Limited range of instruments

 

A review of AvaTrade
 

AvaTrade

 

Founded in 2006, AvaTrade is based in Dublin, Ireland with other offices around the world, including Japan, Australia, Ireland, and the British Virgin Islands, Paris, Milan, Madrid, Mongolia, Beijing, Nigeria, Santiago, and South Africa.

AvaTrade offers more than 250 instruments which include more than 60 currency pairs, major stock indices, cryptocurrencies, commodities, bonds, individual shares and ETFs

With their global presence they are also regulated worldwide in Europe, the British Virgin Islands, Australia, Japan, and South Africa.

 

Features

 

  • A range of automated trading platforms and EA compatibility
  • Client funds are held in segregated accounts for increased security
  • Desktop, tablet, mobile and web based trading with MetaTrader 4, MetaTrader 5 and AvaTradeGO
  • Competitive spreads offering
  • Trading websites in more than 20 languages

 

Pros and Cons

 

Pros Cons
Easy and fast account opening Limited research tools
Great educational tools Poor support telephonically
No withdrawal fee Administration fee
Free deposit and withdrawal options Inactivity fee
Low trading fees Offers only CFD’s, Forex and Cryptocurrencies

 

A review of Exness
 

 Exness

 

Established in 2008, the Exness Group offers access to more than 120 financial instruments to trade across which include Forex, Crypto, Stocks and Indices as well as 120 currency pairs to choose to trade with.

They are regulated with the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Financial Services Authority (FSA) of Seychelles.

Exness boasts over 15,000 new accounts opened per month, 80,000 active traders and a monthly trading volume of more than $180 billion.

Exness offers 24/5 customer support in 13 languages.

Their website also offers a wide variety of languages to operate from as well.   These include English, Chinese, Russian, Vietnamese, Farsi, Hindi, Urdu, Tamil, Thai, Bengali, Indonesian, and Malay.

 

Features

 

  • Very cool user friendly and modern website
  • No hidden commissions or fees
  • Instant withdrawal of funds
  • Client funds kept in segregated accounts
  • Copy trading system

 

Pros and Cons

 

Pros Cons
Customer support in many languages Inactivity and withdrawal fees
Commission free trading High CFD fees
Access to Forex ECN trading Not available in the US
Tight spreads from 0.1 pips
Offshore regulation

 

A review about eToro
 

eToro

 

Established in 2007, eToro is an Israeli brokerage firm based in Tel Aviv. eToro made its name on its copy trading platform that allows users to copy the trades of other investors.

Good traders can actually earn profits from leading other traders that follow and copy their trades.

eToro started off as a broker that only offered Forex trading and now offers an expanded offering which include cryptocurrencies, commodities, stocks and market indices and now boast more than 10 million users in 140 countries worldwide

 

Features

 

  • Social trading/Copy trading platform and community
  • Huge cryptocurrency offering
  • Robust charting
  • Offers access to 15 cryptocurrencies
  • Free stock and ETF trading in Europe

 

Pros and Cons

 

Pros Cons
Fully digital account opening Withdrawing money is slow and costly
Low CFD fees High Forex fees
No deposit fee Only one account base currency used
Service is fast Withdrawal fee
Low minimum initial deposit  No streaming news

 

Read Best currency pairs to trade for Professionals – Revealed ( 2020 )

 

A review of XTB
 

XTB

 

XTB, founded in 2002, offers a wide range of financial instruments through its standard and pro account types.

XTB have offices in more than 13 countries including the UK, Poland, Germany, France and Turkey with headquarters based in London and Warsaw.

They offer CFD, Cryptocurrencies and Forex trading.

 

Features

 

  • Award winning platform
  • Lots of educational materials offered
  • Regulated by top-tier FCA
  • Fully digital account opening and trading
  • Offers Negative Balance Protection

 

Pros and Cons

 

Pros Cons
Easy and fast account opening Limited product portfolio
Free and easy deposit and withdrawal Poor email support
Low trading fees High fee for stock CFD
No withdrawal fee
Low Forex and stock index CFD fees

 

A review of IC Markets
 

 IC Markets

 

International Capital Markets Pty Ltd, otherwise known as IC Markets is an ECN broker with no dealing desk that was founded in 2007.

IC Markets is based in Sydney and acquired an Australian Financial Services License (AFSL) with the Australian Securities and Investment Commission (ASIC) in 2009.

They offer tight spreads as well 63 Forex pairs and 41 CFDs on Indices, Metals, Cryptocurrencies and Futures.

IC Markets offers several trading platforms to choose from including MetaTrader 4 (MT4), MetaTrader 5 (MT5), and the suite of cTrader platforms.

 

Features

 

  • Great variety of Educational materials
  • Selection of sophisticated trading platforms
  • Low min deposit
  • True ECN broker with institutional grade liquidity
  • Wide range of tradeable products
  • Good customer service with 24/7 Support

 

Pros and Cons

 

Pros Cons
Easy and fast account opening No investor protection
Low Forex fees Only Forex, CFD, and crypto trading
Free deposit and withdrawal Lack of research tools
Low Forex fees
Low minimum deposit

 

A review on OctaFX
 

OctaFx

Established in 2011, OctaFx, is a Jakarta, Indonesian based brokerage firm.  OctaFx has a subsidiary in Cyprus by the name of Octa Markets Cyprus Ltd. with offices in St. Vincent and the Grenadines.

They are an (STP) ECN Forex broker in over 100 countries worldwide and OctaFx offers both the MetaTrader and cTrader platforms.

They offer all major currency pairs and commodities with a leverage of 1:500.

OctaFx won several awards for their work in the Asian Market region especially for great customer service.

 

Features

 

  • First time deposit match of 50%
  • Unlimited demo account
  • Spread offerings among the most competitive in the Forex industry.
  • Great advanced technology
  • Extensive research and educational resources
  • Over 300,000+ traders worldwide

 

Pros and Cons

 

Pros Cons
No commission deposits or withdrawals Limited range of instruments
Free and easy deposit and withdrawal No Forex educational tools
Multiple platforms to choose from Doesn’t offer VPS
Enhanced licensing with the addition of CySEC regulation
Low Forex and stock index CFD fees

 

A review about Globex360
 

Globex360

                                                      

Globex360 was founded in 2017, with a primary focus on the providing a trading broker based on the continent of Africa, with their head office in Johannesburg, South Africa.

They are highly regulated by the Financial Sector Conduct Authority in South Africa (FSCA).

Globex360 are also obligated to follow the guidelines of the Financial Intelligence and Anti-Money Laundering Act 2002 (FIAMLA 2002), as well as the Prevention of Corruption Act 2002 (POCA 2002) and the Prevention of Terrorism Act 2002 (POTA 2002).

 

Features

 

  • Keeps client’s funds in segregated accounts
  • Variety of trading instruments
  • Different trading accounts to choose from
  • Regulated by the FSCA

 

Pros and Cons

 

Pros Cons
No deposit fee No negative balance protection
No withdrawal fee Withdrawal process is slow
Multiple platforms to choose from Inactivity fee
Enhanced licensing with the addition of CySEC regulation
Low trading fees

 

A review about Olymp Trade
 

Olymp Trade

 

Olymp Trade was founded in 2014 and their headquarters is in St. Vincent and the Grenadines.

It offers many different assets, including binary options, which aren’t too common amongst Forex brokers.

Olymp Trade only offer one platform to trade on but it does have its own mobile application with more than 50 Million installations.

They are certified by the Financial Commission that acts as a mediator and regulator and protects clients from misconduct. Any member with the IFC must provide an annual report and act with full transparency towards the IFC and their traders.

If any misconduct occurs Olymp Trade must pay the trader 20,000 Euros.

They offer 24/7 in multiple languages over multiple channels and also offers good educational resources and training materials.

 

Features

 

  • Low minimum deposit to start
  • Regulated by the Financial Commission
  • 20,000 Euros compensation for any misconduct
  • Legal assistance available
  • Investor protection available

 

Pros and Cons

 

Pros Cons
No deposit or withdrawal fee Only one trading platform
Free demo account Not available in all countries
Good 24/7customer service Long withdrawal process
Enhanced licensing with the addition of CySEC regulation
Low Forex and stock index CFD fees

 

A review on Plus500
 

Plus500

 

Plus500 was founded in 2008 with its main offices in Sydney.

It is regulated by several international financial authorities, including the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC).

Plus500 offers over 2000 instruments and has one of the highest rated CFD trading apps on Apple’s App Store and Google Play.

 

Features

 

  • Offers access to over 2,000 trading instruments
  • Very low spreads and commissions
  • Low min deposit
  • Guaranteed stop loss
  • Offers Negative Balance Protection

 

Pros and Cons

 

Pros Cons
Easy to use platform Inactivity fee
No withdrawal fee Minimal research tools
Low trading fees Minimal educational resources
Highly regulated Limited product portfolio
Very competitive pricing Lack of platforms

 

A review about FBS
 

FBS

 

FBS was founded in 2009 and serves clients from over 190 countries with its headquarters in Cyprus.  They are under strict regulation from the CySEC and the IFSC.

FBS offers some of the lowest capital requirements for their traders with a great selection of account types.

They also provide a wide selection of trading education videos and articles to help skill up any level trader.

FBS shows its excellence by winning over 40 prestigious awards, with some of the recent ones being:

Best broker in the Middle East, 2018

Most Transparent Forex Broker, 2018

Best Forex Trading Account, 2018

Best Copy Trading Application Global, 2018

Best Forex Broker Asia, 2018

Most Progressive Forex Broker Europe, 2019

Best Forex Broker Vietnam, 2019

 

Features

 

  • Over 14 000 000 traders and 370 000 partners
  • Commissions covered by FBS
  • Leverage of up to 1:3000
  • Offers bonuses to new traders
  • Low Spreads and comms (from 0 pips)

 

Pros and Cons

 

Pros Cons
Low Deposit for account opening Higher than normal spreads
Super-fast trade execution Fees on both deposits and withdrawals
Free demo account
Highly responsive customer service

 

A review about CityIndex
 

City Index

 

City Index was founded in 1983 and finds its headquarters in London.  They have more than 35 years of experience and is part of the GAIN Capital group and is a global Spread Betting, FX and CFD Trading provider based in the heart of London.

They have more than 12 000 markets to choose from across Forex, Indices, Shares and Commodities.

City Index is listed on the New York Stock Exchange and regulated by top-tier financial authorities such as the Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC) or Monetary Authority of Singapore (MAS).

Their educational resources are also first grade through their own Trading Academy. They have a wide offering of videos covering a host of subjects as well as webinars.

City index also offer in-depth market analysis and research covering all asset classes via articles and webinars which makes their educational offering great for both the beginner trader and experienced ones.

 

Features

 

  • Top notch trading platform and multiple platforms.
  • Great market analysis
  • Great research tools
  • 12,000+ instruments to trade

 

Pros and Cons

 

Pros Cons
Low fees for Forex and index CFD’s Limited product portfolio
Fast and smooth account opening High CFD fees
No withdrawal fee High minimum deposit
Diverse research tools Inactivity fee
No deposit fee

 

A review of IG Group
 

IG

 

IG, founded in 1974, is one of the most regulated and trusted platforms globally and offers traders an extensive list of tradeable products, excellent research and trading tools, as well as industry-leading educational support, and competitive rates.

IG Group is listed on the London Stock Exchange and is a world-leading online trading and investments provider that gives traders access to opportunities across thousands of financial markets.

IG now serves clients all over the world, with sales offices in 14 countries across five continents.

 

Features

 

  • Top notch trading platform and multiple platforms.
  • Great market analysis
  • Suberb educational tools
  • Huge legacy, being around since 1974

 

Pros and Cons

 

Pros Cons
World class trading platform Limited product portfolio available
Top-notch educational tools High stock CFD fees
Fully digital account opening Poor phone support
Low index CFD trading fees Inactivity fee
No minimum deposit fee

 

Read Best currency pairs to trade for Beginners – Revealed ( 2020 )

 

In conclusion

 

In this article we looked at the best Floating Spread Forex brokers and the firms that we believe are worth investigating further, according to research in South Africa. Floating spreads have become very popular, but you should be very careful what spread option is best for your trading strategy and level of ability. Fixed spreads are more stable and easier to calculate

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