17 🥇 Best Over the Counter (OTC) Forex Brokers – ( Reviewed ) 2020

 

 

 

According to research in South Africa, Over-the-counter trading, or OTC trading, refers to a trade that is not made on a formal exchange but rather a trade between two parties and handled through a dealer network. You will find in the following, a comprehensive list of the 17 best Over the Counter (OTC) Forex brokers according to research in South Africa.

OTC trading is less regulated than exchange-based trades.  This can be advantageous and provide opportunities but like in most things there are cons which means there can also be risks.

When you trade using OTC with a trading provider, you will usually see two prices listed: a single buy price, and a single sell price.

This differs from on-exchange trading, where you will see buy and sell prices from multiple parties.

This is list is not ranked in any particular order but is rather a comprehensive list of great brokers to choose from.

 

A review about Alpari
 

Alpari

 

Alpari was established in 1998, relaunched in 2014 and is based in and regulated by the Financial Services Commission (FSC) of the Republic of Mauritius and can boast of more than 1.3 trillion dollars in trading turnover per year.

They give their traders access to more than 250 markets in Forex, Stocks, Indices, Metals and Cryptocurrencies.

Alpari offers 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 a wide array of 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 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 and offers over 50 currency pairs, gold, silver, CFDs, Indices, stocks and cryptos to trade with.

FP Markets provide both the MetaTrader4 and MetaTrader5 platforms for their traders to choose from.

 

Features

 

  • Leverage is 500:1 when trading currency.
  • Offer Direct Markets Access (DMA)
  • ASIC & CySEC Regulated broker
  • 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 is a licensed and well-regulated broker worldwide, from the UK, South Africa, Belize, Cyprus and Mauritius as examples.  They also boast an impressive list of awards.

FXTM was founded in 2012 with offices in major cities like London, Germany, Poland, France, Spain, Italy, Turkey, China, Thailand, South Korea, Malaysia, India and Nigeria. All central operations are directed from FXTM’s five story tower located in Cyprus.

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

 

Features

 

  • Allows hedging
  • Fast and easy account opening
  • Low min deposit
  • 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

 

XM.com Review in south africa
 

XM

 

XM Global was established in 2017 and offers more than 1000 financial instruments which includes Forex Trading, Stocks CFDs, Commodities CFDs, Equity Indices CFDs, Precious Metals CFDs and Energies CFDs. and is regulated by the International Financial Services Commission. They off over 55 currency pairs for Forex trading.

XM offers the MetaTrader 4 and MetaTrader 5 platforms, which are the most widely used platforms in trading.  Both are accessible from both real and demo accounts.

XM have won many awards, some of which are:

  • Best FX Service Provider for 2020 awarded by City of Wealth Management Awards 2020,
  • Best Customer Service Global 2019 awarded by Capital Finance International Magazine,
  • Best Market Research and Education Global 2019 awarded by Capital Finance International Magazine, and
  • Best FX Service Provider awarded by City of London Wealth Management Awards 2019

 

Features

 

  • Allows scalping
  • Offers negative balance protection
  • Low min deposit
  • Used by over 70,000 traders
  • 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, established in 2006, is one of the leading and trusted Australian brokers.  They have offices in Melbourne, London, Taipei and Hong Kong.

GO Markets currently offers more than 350 tradeable CFD instruments including Forex, Shares, Indices and Commodities and Cryptocurrencies.

 

Features

 

  • Allows hedging
  • Allows scalping
  • Offers STP
  • Regulated by ASIC
  • Offers Negative Balance Protection
  • Used by over 10,000 traders

 

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

 

AvaTrade was founded in 2006 and have their headquarters in Dublin, Ireland. They also have  offices in Japan, Australia, Ireland, and the British Virgin Islands with sales offices also in Paris, Milan, Madrid, Mongolia, Beijing, Nigeria, Santiago, and Johannesburg.

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

AvaTrade a highly regulated brokerage firm and are regulated 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

 

Exness was founded in 2008 in St. Petersburg, Russia. The Exness Group has a monthly trading volume of more than $180 billion, as well as 15,000 new accounts opened each month, with more than 80,000 active traders.

Exness offer access to more than 120 financial instruments to trade across which include Forex, Crypto, Stocks and Indices. In Forex they offer 120 currency pairs to choose from.

Exness is highly regulated and has licences from the UK Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Financial Services Authority (FSA) of Seychelles.

Their website is available in 23 different languages including English, Chinese, Russian, Vietnamese, Farsi, Hindi, Urdu, Tamil, Thai, Bengali, Indonesian, and Malay with 24/5 customer support in 13 languages.

 

Features

 

  • Very cool user friendly and modern website
  • Tight spreads from 0.1 pips
  • No hidden commissions or fees
  • Instant withdrawal of funds
  • Client funds kept in segregated accounts
  • Tight spreads
  • 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
120 Currency pairs to trade from
Offshore regulation

 

A HotForex Review in south africa
 

HotForex

 

HotForex was founded in 2010 and is based in Cyprus. They also have several global satellite offices in Dubai, South Africa and offshore entities in St Vincent and the Grenadines.

HotForex offers access to over 150 trading instruments across Forex, Commodities, Indices, Shares, Bonds and Cryptocurrency CFDs.  They offer over 6 core trading accounts and each account type offers commission-free trading for Forex pairs.

The company was listed as on the Top 100 Companies by World Finance Magazine and the received the award for Business Excellence in 2015.

 

Features

 

  • Known for great technology
  • Numerous industry awards garnered
  • Great range of markets
  • regulated by ASIC, CySEC, FCA
  • Offers Negative Balance Protection
  • Additional Civil Liability Insurance
  • Lots of premium MetaTrader tools offered

 

Pros and Cons

 

Pros Cons
Fast, easy, fully digital account opening Only Forex and CFD products
Low minimum deposit Two of their entities are unregulated
Commission free accounts available Only 56 shares available
Low Forex fees
Competitive spreads

 

Read 17 🥇 Best Forex Brokers with 0 pip spreads – ( Reviewed ) 2020

 

A review on Plus500
 

Plus500

 

Plus500, an Australian based company founded in 2008, offers a wide range of financial markets with relatively low spreads and no commissions.

Plus500 is a no-frills broker, that offers over 2000 instruments.  Their platforms are both very easy to use and user intuitive while offering good advanced tools

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

 

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 eToro
 

eToro

 

eToro is a brokerage firm based in Tel Aviv, Israel and founded in 2007 and boasts more than 10 million users in 140 countries worldwide.

eToro began as a Forex broker only, and has since expanded its product offerings to include cryptocurrencies, commodities, stocks and market indices and now

eToro made its name on its social investing platform that allows users to copy the trades of other investors.   In fact, in the eToro social community, traders can become “leaders” and earn from leading other traders that follow and copy their trades.

 

Features

 

  • Premier Social trading/Copy trading platform and community
  • Huge cryptocurrency offering
  • Robust charting
  • 10 million traders worldwide
  • 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

 

A review of XTB
 

XTB

 

XTB, founded in 2002, has offices in more than 13 countries including the UK, Poland, Germany, France and Turkey with headquarters based in London and Warsaw.

XTB offers a wide range of financial instruments such as CFD, Crypto and Forex trading through its standard and pro account types.

 

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 about AxiTrader
 

AxiTrader

 

AxiTrader offers more than 40,000 registered traders in over 100 countries.  They are an Australian based company founded in 2007 and also have offices in London, which was opened in 2012.

They have a monthly client trading volume of around $100 billion.

 

Features

 

  • Allows hedging
  • Low spreads starting from 0.0 pips
  • Allows scalping
  • Strong leverage up to 400:1
  • Wide range of Forex Markets
  • Award winning customer service

 

Pros and Cons

 

Pros Cons
No Deposit and withdrawal fees Only offers Forex and CFDs
Fully digital account opening Limited research tools
No inactivity fees Slow email support
Low Forex fees
No minimum deposit

 

A review of IC Markets
 

IC Markets

 

International Capital Markets Pty Ltd (IC Markets) is an ECN broker, established in 2007 and based in Sydney, Australia.

Started by a team of financial professionals who had the vision to bridge the gap existing between retail and institutional clients they are known to be a broker for traders made by traders.

IC Markets offer tight spreads in its offering of 63 Forex pairs and 41 CFDs on indices, metals, cryptocurrencies and futures

IC Markets is regulated by the Australian Financial Services License (AFSL) and the Australian Securities and Investment Commission (ASIC) in 2009.

IC Markets offers several trading platforms to choose from including MetaTrader4 (MT4) and MetaTrader 5 (MT5), and cTrader.  All their platforms make use of their own high-level web security.

 

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
 

 

 

 

A review on OctaFX
 

OctaFx

OctaFx, founded in 2011, is based in Jakarta, Indonesia with offices in St. Vincent and the Grenadines.

OctaFx is a (STP) ECN Forex broker that offer both the MetaTrader and cTrader platforms that gives access to all major currency pairs and commodities with a leverage of 1:500.

OctaFx was an Asian market focused broker and has won many awards for their work in the Asian region but are now in over 100 countries worldwide.

 

Features

 

  • Deposit bonus of 50%
  • Unlimited demo account
  • Spread offerings among the most competitive in the Forex industry.
  • Advanced tech
  • 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 FXCM
 

FXCM

 

FXCM is a UK-based broker that also have offices in the UK, Germany, Australia, France, Italy, Greece, Hong Kong, and South Africa with affiliated offices in Canada and Israel.

FXCM was founded in 1999, and it has grown to be one of the leading providers of online trading and is known for fast trade executions and advanced and innovative technology.

Users can trade on FXCM’s proprietary Trading Station platform for Desktop, Web and Mobile, as well as on MetaTrader 4, NinjaTrader and ZuluTrade.

The broker also offers access to other platforms such as QuantConnect, MotiveWave, AlgoTerminal, Sierra Chart and others as well.

 

Features

 

  • A huge offering of platforms including their proprietary Trading Station
  • Wide range of tradeable markets, research and educational resources
  • Top Notch charting and technical analysis tools
  • Great technical research tools
  • High quality educational tools

 

Pros and Cons

 

Pros Cons
Low Stock and ETF fees Limited product portfolio
Fast and easy account opening Poor mobile platform
Low trading fees High AUD/USD trading fee
No withdrawal fee
Excellent charting and tech analysis tools

 

A review of FxPro

 

FxPro

 

FxPro UK was founded in 2006 and is a subsidiary of FxPro Group Limited. They boast over 870,000 client accounts in 173 countries and are regulated by the FCA and CySEC, and FSB (FSCA).

FxPros offer incredible execution speeds, with an average execution time of less than 11.06 milliseconds and it processes approximately 7 000 orders per second.

They also boast over 70 international and UK awards in total to date which include:

Most Reliable Broker of the Year 2019, “International Investor” Magazine

Best FX provider of the Year 2019, Online Personal Wealth Awards

Best Tablet Application 2019, Online Personal Wealth Awards

Best European Value Broker of the Year 2019, Global Forex Awards

Best Global Forex Introducing Broker Programme 2019, Global Forex Awards

Best European Forex Trading Platform 2019, Global Forex Awards

Best MetaTrader Broker 2019, ForexBrokers com

Best in Class of Commissions & Fees, ForexBrokers com

5-stars MetaTrader Broker 2019, ForexBrokers com

 

Features

 

  • No dealing desk and very fast execution of trade speeds
  • Company capital in excess of 1 million British Pounds
  • Incredibly fast execution speeds
  • No dealing desk
  • Winner of Multiple awards
  • Good customer service with 24/7 Support

 

Pros and Cons

 

Pros Cons
Wide selection of market instruments No investor protection
Segregated accounts Doesn’t offer its services in all countries
Highly regulated
Range of account types
Little to zero commissions charged

 

A review about Forex.com


Forex.com

 

Forex.com was established in 2001 and is listed on the New York Stock Exchange. They allow access to over 180 markets which include Forex pairs, stocks, indices, cryptocurrencies and commodities and offer over 4,500 CFD instruments to trade with and they.

Forex.com is regulated by several financial authorities, including the top-tier Financial Conduct Authority (FCA) in the UK or the US Commodity Futures Trading Commission (CFTC).

They have garnered many awards and in 2020 it has earned Best in Class (top 7) awards for numerous categories including Offering of Investments, Commissions & Fees, Education, Professional Trading, Crypto Trading, Ease of Use, and Overall.

 

Features

 

  • Over 40,000 traders
  • Regulated by several authorities
  • Diverse technical research tools
  • TradingView charts built into platform
  • Great mobile and desktop functionality

 

Pros and Cons

 

Pros Cons
Great variety of currency pairs Limited product portfolio
Fast and easy account opening High stock CFD fees
Fast execution of trades Higher spreads than some brokers
Low Forex fees No negative balance protection
No withdrawal fees Inactivity fee

 

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

 

In conclusion

 

Forex is the most popular OTC market, where currencies are bought and sold through a network of banks, instead of on exchanges.

This means that Forex trading is decentralised and can take place 24 hours a day, rather than being tied to an exchange’s open and close times. It’s one of the major attractions of Forex trading.

Stocks and other financial instruments can also be traded OTC – this includes derivatives such as swaps and forward contracts, but Forex is the biggest and most popular OTC market.

OTC trades have greater flexibility when compared to their more regulated and standardised exchange-based counterparts. This means that you can create agreements that are specific to your trading goals.

 

Cons of OTC trading

 

The unregulated nature of OTC trading means that there is a higher risk.  However, that it quickly changing as there are more regulations and caps in place to protect traders.

There are many pros to OTC trading and even more than discussed here.   But as stated, and as in most good things that seem too good to be true, there are cons as well.  Just be careful to choose a broker that, although does OTC trading, is still very regulated and has a great track record.

In this article we looked at the 17 best Over the Counter (OTC) Forex brokers and the firms that we believe are worth investigating further, according to research in South Africa.

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