Best forex trading platforms for 2019 | get complete list of best forex trading platforms in 2019

Best Forex Trading Platform
  • Dukascopy - 4.5 Stars.
  • Saxo Bank - 4.5 Stars.
  • IG - 4.5 Stars.
  • GAIN Capital ( - 4.5 Stars.
  • TD Ameritrade - 4.5 Stars.
  • Interactive Brokers - 4.0 Stars.
  • FXCM - 4.0 Stars.

if you fret about the volatility and risk associated with stocks, then forex trading is likely not your cup of tea. There are a plethora of risks involved, including leverage, transaction, country and interest rate risks, to name a few.

What is forex trading?

Forex trading is a global, decentralized, over-the-counter market for trading global currencies. The market participants in a forex market include traders, investors, governments, banks, businesses, etc.  The market is open 24 hours, five days a week. Although there is no physical marketplace for the forex markets, important world trading centers for currencies are located in Sydney, Tokyo, Hong Kong, Singapore, Frankfurt, Zurich, Paris, London and New York. It can be confusing; this video breaks down forex opening and closing times around the world.
Forex quotes are offered by central banks and what our broker quotes is the average of all the quotes received from the banks. Essentially, the broker acts as a market maker and sells the currency pair to you and not another trader

Characteristics of the forex market

  • High liquidity, with roughly $3 trillion worth of transactions handled each day, allowing easy entry and exit. That said, the forex market is not regulated and therefore, lacks transparency.
  • The number of currency pairs traded is limited, making research and asset picking easy. This is unlike the equity market, where a plethora of stocks are trading.
  • The currency market allows anywhere, anytime trading.
  • High volatility associated with the currency market offers sizeable profitable trading opportunities. On the contrary, high volatility also exposes one to high risk.
  • Geopolitical and macroeconomic factors drive forex.
  • The tight spread in terms of pips facilitates trading even with low capital.

Understanding the risks involved in forex trading

Conventional wisdom states that high returns are always associated with high risks. There is no dearth of risks in the forex market. Here is brief on a few major risks one should be wary of while trading currency pairs.

1. Exchange rate risk

Exchange rate risk or currency risk arises when an investor needs to close out a long or short position at a loss due to adverse movement in the exchange rate of the currency pair they are trading.

2. Risk associated with leverage trading

Once an investor decides to take a plunge in the forex market, he does by opening a margin account in a brokerage, which provides him with leverage or loan for trading. The leverage provided could be in the ratio of 50:1, 100:1 or 200:1 depending on several factors. A 50:1 leverage means the trader has to maintain at least $1 for every $50 worth of trade he makes.
This is substantially higher than the 2:1 leverage allowed in stock trading and 15:1 for futures trading. This exposes a forex trader to enormous leverage risk if his bet goes wrong. When his position loses value to the extent of him not meeting the margin requirement, the broker will begin to liquidate his assets just so that the account complies with the margin requirement.

3. Volatility risk

Volatility refers to the change in the value of the currency pair held as an investment, annualized and expressed as a percentage. The volatility associated with a currency pair also poses a risk to currency traders.

4. Interest rate risk

With the direct relation interest rates share with the value of a nation’s currency, the prevalent benchmark interest rates or a change thereof can introduce risk in currency trading.

5. Sovereign risk

Sovereign risk refers to a nation failing to meet its interest payments or principal repayments, which in turn can impact the value of the nation’s currency. Devaluation of a nation’s currency also creates sovereign risk.

6. Counterparty risk

Since the currency market is not regulated in both the trading and clearing, a forex trader may be exposed to counterparty risk, which arises if the forex broker defaults or does not keep up his end of the bargain. If this happens, a currency trader will be straddled with huge losses.
The best way to go about trading safely in the forex market is to choose well-regulated brokers. It is best to do a background check on the agency under whose regulatory jurisdiction the broker falls.
Forex trading is regulated by bodies such as the Commodity Futures Trading Commission, or CFTC, which regulates leveraged trading offered to retail traders. The CFTC requires that all online forex dealers be registered and meet strict financial standards enforced by the National Futures Association, or NFA.

Our picks for the best forex brokers in the United States

After carefully considering prices, platform, fees, and the number of currency pairs offered, we made our picks for the best forex brokers. remains as one of the most favored brokerages because of is technological prowess through its platform.
  • The famous Thinkorswim platform is a totally comprehensive, self-directed research platform that provides some of the most user-friendly tools to analyze foreign exchange markets. 
  • Offers 84 tradable currency pairs – the most of all the picks on this list.
  • High-volume traders have the options to reduce trading costs by up to 15% with’s Active Trader Program.
The firm also provides an app for a mobile platform that makes everything easier for clients who are always on the go. 

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