Trading Brokers UK

Trading Brokers UK
Top Forex Brokers in UK for Forex Trading

Britain has a long and proud history of trade and currency exchange. Known as a nation of merchants, the Brits have always seen trade as a way to increase their wealth. And currencies are amongst the most traded and most sought after goods in the world. London has been hailed as the financial centre of the world, mostly due to its geo-strategic position and the historical circumstances.

The pound sterling is the oldest currency still in use and it is the fourth most traded currency in the world, after the US dollar, the Euro and the Japanese yen. It is also a popular reserve currency.

The pound’s value in respect to other currencies fluctuates frequently, and many individuals have gained a significant benefit from these fluctuations. Moreover, the UK has always been regarded as a country with quite liberal legislation and low-rate taxes on trade and investment. Therefore, it is not surprising that forex trading is quite popular with a large number of British citizens.
Broker    Offer    Devices    Review
1st
   

Deposit: $5
Leverage: 1:500
    [Desktop] [Mobile] [Tablet]    
Review!
2nd
   

Deposit: $100
Leverage: 1:300
    [Desktop] [Mobile] [Tablet]    
Review!
3rd
   

Deposit: $10
Leverage: 1000:1
    [Desktop] [Mobile] [Tablet]    
Review!
4th
   

Deposit: $50
Leverage: 1:1000
    [Desktop] [Mobile] [Tablet]    
Review!
Legal Framework and the FCA

Forex trading in the UK is in the domain of the Financial Conduct Authority(FCA), the successor of the Financial Services Authority (FSA). The FCA was founded in 2013 and it has an annual budget of over £450 million. The organisation is independent and it isn’t directly responsible to the UK government. Its budget is provided by the membership fees paid by companies which are in the financial services industry. The powers and the role of the FCA is substantial.

Trading Brokers UK

    It regulates the marketing of financial products and services.
    It can investigate individuals and companies, if there are any suspicions of fraudulent or illegal behaviour.
    It can ban certain financial products, up to a full year, with the power to enact a permanent ban afterwards.
    The FCA can also set the minimum requirements and standards for products and services.
    It can also instruct companies to change their promotions and other offers if it finds that they are contradictory or misleading.

Due to the fact that the market is completely regulated and opening an online forex account is easy-peasy, the number of traders in the UK is growing by the minute. Still, the fact that the there is a lot of interest, has always been a magnet for shady characters and companies who try to attract possible traders and convince them that they are legitimate.

The FCA warns UK traders to be aware of unauthorised brokers and avoid such websites by all means. There are companies which offer forex trading and other types of online trading, often offering unrealistically high returns and even guaranteed profits. That alone should ring a bell, as there isn’t anyone who can guarantee that you will make a profit. If you see such a ‘guarantee’, you can practically be certain that the website isn’t legitimate.

Forex brokers that are based in the UK have to be authorised by the FCA. But, there are quite a few websites which claim to be based in the UK, and even provide a UK address, usually a posh London postcode to make it seem like they’re based in the City of London. The reality is that many of those companies have nothing to do with the UK and aren’t actually registered at the address that they claim to be.

Such companies often offer better exchange rates than most of their competitors and many customers initially make some hefty profits. But afterwards, they experience unpleasant things, like account suspension and closure and by the time they want to complain and address the issue, they realise that the company wasn’t even legally allowed to offer forex trading in the first place.

By then it is usually too late. The FCA makes attempts to identify and then prevent such websites from offering trading services to UK citizens. In many cases the fraudsters will use the name and the registration number of actual certified brokers in an attempt to convince potential traders. If you suspect anything contact the FCA immediately. That is the first step for every UK trader before they start trading forex – make sure that the company is registered with the FCA.
Forex Trading Offer

Checking the legal status of the forex broker is the essential and the very first thing that you should do when choosing a broker, but definitely not the only one. There are few other things that you should take into consideration, especially regarding the trading offer.

    Currency pairs
    Leverage
    Spread

The more currency pairs a broker offers, the better. Even if you plan on sticking to the major currency pairs, or restrict yourself to pairs which include the UK pound, it is still good to have a choice if you decide to, so to say, broaden your trading horizons.

Some forex traders offer more than 30, and sometimes even up to 60 different currency pairs, which means that it would be hard to find a pair of currencies that are even remotely important that aren’t traded. Typically, better spreads are offered on major currencies as they are the most traded ones, but if you think you know and understand the movements of less influential currencies you can make a solid profit.

Unlike some other countries, most notably the US, where there is a limit on the leverage that the brokers can offer, in the UK, forex traders are allowed to offer pretty high leverage and for some pairs it can even reach 1000:1. This will allow you to trade amounts worth up to £100,000, with an initial capital of just £100.

Higher leverage allows you to increase your profits significantly, but you also may suffer severe losses. Make sure that you understand how leverage works and always be prepared to act quickly in order to prevent further losses if you see that things aren’t working out well. Remember that you can, but you don’t have to use high leverage rates when you’re trading.

Most forex brokers, or at least the ones that want to stay competitive and attract as many traders as possible don’t charge any fees or commissions on trade deals. Instead, they earn their profit through the spread, which, as you probably know is the difference between the buying and the selling price for a particular pair.

A tighter spread means that there is a bigger opportunity for traders to earn more money and minimise their losses. Leading forex brokers offer quite competitive spreads, as they are aware that traders can compare the spreads that are offered by different websites and always choose the ones that offer more competitive ones. As a trader, you are not prohibited from having accounts at more than one forex broker, therefore you can trade one currency pair with one broker and another with someone else, depending on the spreads that they offer.
Other Important Aspects

In addition to the most important aspects which include the licencing, as well as the specifics of the trading offer, there are other things which every trader should consider before choosing the most suitable UK forex broker. These things may seem unimportant, and perhaps they are less important compared to the offered pairs and the licence which are quintessential, but the following are also significant.

    Trading platforms
    Bonuses
    Payment methods
    Customer support
    Learning resources

Most brokers offer more than one trading platform. In addition to being able to trade on your mobile device, you may also have access to an advanced platform which includes more interesting trade features and options aimed at more experienced traders.

Many brokers offer a No Deposit, or a First Deposit Bonus to all new players, and some have few more regular bonuses which can be highly beneficial.

A confirmed FCA authorisation is a sign that the broker offers secure financial transactions, but there are differences in terms of the number of accepted methods and the speed at which the transactions are processed. Some brokers charge fees on deposits made via some of the accepted methods.

Traders want to know that should any problems arise they will be able to get all the necessary help and assistance. Customer support is usually provided via phone, email and live chat.

Last but not least, most reliable and respected brokers give you an opportunity to learn more and get better and trading, via a range of learning materials, including videos, e-books, webinars and other useful tools.

FAQ
1. What body is in charge of regulating forex trading in the UK?

The Financial Conduct Authority is in charge of regulating various branches of the financial industry, including retail forex trading. This independent body has an official remit and a range of tools at its disposal.


2. Am I only allowed to trade major pairs, or pairs that include the UK pound?

No, you are also able to trade a vast range of other currency pairs, even so called exotic currency pairs which don’t include any of the major or influential currencies.


3. Is there a limit on the leverage that brokers can offer?

Unlike the US market, where there are restrictions on the leverage, UK brokers offer trading at pretty high levels of leverage, often up to 1000:1.

Trading Brokers UK
4. Do UK forex brokers charge any trading fees?

Most, if not all, reliable UK forex brokers don’t charge any fees on forex trading, they make their profits through the spread.


5. What are the forex trading market hours for UK brokers?

The trading market hours depend on the currency pairs that you want to trade. Different markets open and close during different hours of the day. You will have at least a few trading options at any time of the day, during working days. The markets are closed on Saturdays and Sundays.

Cheapest online broker

The Best Cheap Online Stock Broker  - Cheapest online broker

The best cheap online stock broker offers a variety of investment options at a low cost. We compared fees, account minimums, and other costs of the cheapest brokerage accounts to find which best suits different investing priorities. While most online brokers have dialed down their costs, we found three that we like more than the competition.
How We Chose the Best Cheap Online Stock Brokers
Major brokerages

We focused on major names and newer players that were doing more to disrupt the space. We considered seven brokerages in total: Ally Invest, E*trade, Fidelity, Interactive Brokers, Charles Schwab, Merrill Edge, and T.D. Ameritrade — all major brokerages that have made a name for themselves offering exceptionally low rates. To find the best online brokerage among them, we investigated their platforms and compared fine print to see how they stack up in fees, learning resources, and trading technology.
Low account minimums

Whether you’re new to the stock market or a seasoned investor, choosing a brokerage with low overhead is a smart financial decision: Spending less money on fees means your investments have more room to grow. And while cheap trading platforms may not offer the same level of counsel or market research as a traditional firm, you can still find plenty of tools to make trading decisions smarter and faster. For the novice investor who wants to start small and spend small, we sought out accounts that have a low minimum balance (the amount you’re required to keep in your account at all times), no minimum activity rules, and as many $0 fees as possible.
Low trading fees

We didn't want to neglect experienced investors, though. For investors who've had time to let investments grow, a low minimum balance probably isn’t a top concern. But putting more money in shouldn’t make your fees swell proportionately. We looked for brokerages that kept fees low for larger accounts — or, better yet, offered more discounts for frequent activity. Some of the most important: broker-assisted trade commission, monthly activity fee, price per trade, and price per share. Though the numerical difference between two brokerages’ fees can appear small — an extra $2 per trade or a 2% bump in margin rates — those dollars and percentages still eat away at your investment. We looked for brokers that kept fees and commissions as low as possible.
Feature-filled trading platform

For any type of investor, a superior investment platform provides an array of research and learning resources, flexible trading options, and a usable interface compatible with most devices. We also looked for a full set of asset options, including advanced investment vehicles like forex and futures.
The 5 Best Cheap Online Stock Brokers

    Ally Invest -

    Best for New Investors
    Charles Schwab -

    Best Resources
    Interactive Brokers -

    Best for Active Investors

Best for New Investors
Ally Invest
Ally
Ally Invest
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A clean and accessible online brokerage that provides investing newbies with a simple platform and no investment minimums.
Pros
Easy entry point
Room to grow
Managed portfolios
Cons
Difficult to find account specifics
Light on education
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Why we chose it
Easy entry point

If you’re a relative newcomer to the stock market, you should look for an broker with low costs, plenty of educational resources, and, importantly, a low account minimum. Your best bet is Ally Invest. Because Ally Invest doesn’t maintain brick-and-mortar branches or run advertising campaigns, it is relatively unknown outside of the trading world. However, Ally does better than most online brokerages at making investing accessible to newcomers. The real welcome mat in front of Ally’s door: some of the cheapest rates in the industry. With a no minimum for independent brokerage accounts, just about anyone can get started investing with Ally.
Room to grow

Just because Ally makes investing approachable doesn’t mean it isn’t an expansive company. There are plenty of tools and opportunities to expand your investment horizons. Ally offers all the same major investment vehicles as other brokerages — stocks, options, ETFs, bonds, forex, futures, mutual funds. And on the subject of mutual funds, Ally provides access to nearly twice as many mutual funds (around 10,000 vs. 5,000) and charges a much lower mutual fund commission than the competition (around $9 vs. Schwab’s $75).
Managed portfolios

In addition to Ally’s swathe of investment vehicles, the brokerage also offers a host of accounts that fall under a managed portfolio.These portfolios are comprised exclusively of exchange-traded funds (ETFs) — bundles of investments that trade on the open market like stocks. They offer similar diversification to mutual funds, but typically carry lower expenses. In addition to small fees for holding the ETFs themselves, Ally charges a 0.3% advisory fee. That's a pretty middle-of-the-road percentage in comparison with other full-service brokerages but slightly higher than companies that offer only managed portfolios. We discuss these robo-advisor companies below.
Points to consider
Difficult to find account specifics

Ally boasts an aesthetically pleasing and easily navigable site, but buries much of the hard data that we were craving. From the easy-to-reach pages, scout out fine print hyperlinks promising “More Details” to find consolidated information about fees, investment vehicles, and account types.
Light on education

Ally takes a light approach to education and research. While having more in-house resources would improve the overall client experience, you can still find plenty of information elsewhere on the internet. And in-house improvement is on the horizon: Since Ally’s merger with TradeKing, its original system has seen a boost in tools and technology.

Best Resources
Charles Schwab
Charles Schwab
Charles Schwab
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This old guard brokerage has stayed on the leading edge of trading technology, while providing plenty of support and advising resources.
Pros
Stellar research
Robo-advising options
Traditional brokerage feel
Cons
More expensive than Ally
Complex tech
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Why we chose it
Stellar research
cheapest online broker

Schwab puts extensive information on accounts, products, as well as wider investment education front and center, hitting you with its expert counsel and breaking news. Not only does the firm provide access to independent research, it also publishes relevant in-house research.
Robo-advising options

Charles Schwab offers a managed portfolio option, Intelligent Portfolio, available for a large number of managed account types ($5,000 account minimum). Unlike every other managed account we looked at, it charges no advising fees. Instead, Schwab makes money by holding some of the underlying assets of the accounts. The only fees associated with the account come from the investments, and while that percentage increases to a substantial amount (from 0.07% to 0.21% as risk builds), it’s still lower than most.

Automated financial advisors are the wave of the future, but many people don’t feel comfortable putting their life’s savings in the digital hands of a computer. Charles Schwab has developed a half-and-half solution: A hybrid service, Intelligent Advisory puts both financial professionals and financial algorithms to work. A nice little solution, so long as you have $25,000 to plunk down.
Traditional brokerage feel

Charles Schwab has retained more of a classic brokerage feel through its in-person presence (you can schedule a free consultation with a financial advisor) as well as its more traditional account minimums. Charles Schwab offers a deluxe set of services, but depending on the account you choose, you don’t have to invest a correspondingly huge amount. Opting for an independent brokerage account gives you access to the resources of a traditional, full-service brokerage without putting down a traditional amount. And no brokerage can compare with Charles Schwab for ETFs: Over 200 trade commission-free.
Points to consider
More expensive than Ally

Just about every basic fee charged by Charles Schwab goes toe-to-toe with Ally. The price between the two does jump in certain instances — broker-assisted trades go up by $5 and mutual fund commissions go up nearly $70 — and while Ally lets investors start a brokerage account with any amount, Charles Schwab requires $1,000 to start. However, the breadth of tools and resources available with Charles Schwab does a lot to justify the extra expense.
Complex tech

If you need personalized settings and advanced features, StreetSmart Edge provides both in spades. You’ll just have to learn how to use it. User feedback about clunky trading tech has led the company to revise its approach, but if you still find the desktop platform unwieldy, there’s also a web-based platform, Trade Source, which offers streamlined trading and market insights on the go. Investors that are new to the game may find the web-based option more accessible.
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Best for Active Investors
Interactive Brokers
Interactive Brokers
Interactive Brokers
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A top choice for experienced traders, this brokerage boasts a complete lineup of investment products, plus pro-grade trading tech.
Pros
Rewards active trading
Exceptional platform
Protegés get perks
Cons
Trading tech learning curve
Futures trading violations
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Why we chose it
Rewards active trading

For pure trading and competitive prices, no other brokerage comes close to Interactive Brokers.The two elements that make IB a bit unwieldy for new investors make it a perfect tool for the experienced: Once you meet the hefty minimum account balance — $10,000 — the rest of IB’s demands on your wallet are light. And the relatively high $10 monthly activity fee is charged only if your trades don’t rack up at least $10 in commissions. With the tiny $1 per-trade fee, that means you’ll need to make ten trades every month or pay the difference, e.g. six trades will leave you with a $4 activity fee. It also offers extremely low margin rates (their highest interest bracket still charges less than 3%) as well as the choice of fixed or tiered pricing, giving investors the opportunity to choose what makes more financial sense for them. Tiered structures like this will typically benefit high-volume traders.
Exceptional platform

Interactive Broker’s incredibly rich platform offers trading technology advanced enough for professional day traders. Choose from the web-based trading platform WebTrader and the more advanced, downloadable platform, Trader Workstation. Both are included for Interactive Brokers clients at no additional cost. Serious traders will likely gravitate to the Trader Workstation’s more in-depth features.
Protegés get perks

If you are savvy investor who also happens to be under 25, you can open an Interactive Broker account with a reduced minimum balance — the required deposit is just $3,000 — and the monthly fee bumps down to $3. For an IRA, the minimum deposit is $5,000.
Points to consider
Trading tech learning curve

Navigation in Trader Workstation is far from intuitive as tools are located in discrete sections. However, it is also customizable, allowing you to group together the resources you make frequent use of and hide the ones you don’t. The interface, like the rest of an IB account, only benefits experienced traders. However, IB has recognized the learning gap. To supplement the educational tools on Traders' University, IB has introduced a layout library (choose from pre-made setups and templates for different trading strategies) as well as an AI assistant. IBot can answer plain-English questions. But, like any other voice-activated helper from Siri to Alexa, it has its limits.
Futures trading violations

Back in 2012-2013, the company was fined for several violations relating to the management of futures market funds. The result was a pair of fines totaling $925,000. Because the fines occurred several years ago, and because futures trading is a fairly niche investment area compared to stocks and funds, we don’t think this is enough to cancel out Interactive Brokers’ overall value. However, if you’re planning on doing a substantial amount of futures trading, be aware of this mark on their record.
How to Choose a Cheap Online Stock Brokerage
Choose with your investment habits in mind

Your financial goals and your personal investing style will be the two biggest factors in choosing the right brokerage for you. We set out to find the strengths and weaknesses of the cheapest brokerages we could find, but you’ll still have to decide which offers the right combination of savings and services for your needs.
Weigh the worth of special offers

Special offers for opening a brokerage account can include a set number of free trades or even cash bonuses for investing above a certain amount. Read the fine print to be sure that these early benefits outweigh later costs, and whether those new client perks align with your investing practices. In other words, don’t be enticed into choosing a broker offering deals on investment products you don’t understand or aren’t ready to use. Since special offers are by definition short-term, we focused on set account pricing. In the long run, those are the savings that will impact your financial goals.
Start with virtual trading

One of the many reasons we prefer Ally Invest for new investors is because it offers virtual trading. With virtual trading, you can test out strategies before putting your own cash into the mix.
Online Stock Trading FAQ
How much money do I need to start online trading?

If this is your first foray into investments, the general wisdom suggests you dedicate around $1,000. Less, and it can be too difficult to gauge the success of your strategy or to weather any stock market storms. That said, no amount is too small. The concept of Time Value Money (TVM) suggests that money is always worth more the earlier you receive it because of its earning capacity. If you have the choice to get a spare $50 now or in three months, you should choose now because you could invest it and watch it grow. With no account minimums, there’s no reason to save up to invest.
How often should I check my stocks?

If you relish the thrill of quick trades, you won’t be asking this question at all. Performing multiple trades a day means that juggling stocks is your part-time or even full-time job. But if you’re interested in keeping investments a side hobby, and don’t have the time or interest to try and outwit the market, don’t stress yourself checking the numbers more than once a week. Any closer monitoring than that, and you may be tempted to make trades based on short-term fluctuations — and that’s bad for your long-term earnings potential.

What about robo-advisors?

The inexpensive trading platforms established by the likes of Scottrade and E*trade make it easy to invest by reducing or eliminating fees that make traditional brokerage firms elite. They are not, however, the newest rich kid on the block. A slew of robo-advisor investment portfolios — Wealthsimple, Wealthfront, and Betterment — have materialized within the past five years, with marketing and functionality geared toward a demographic used to automated services. Simply plug in your time frame and risk tolerance and an algorithm takes it from there. Wealthsimple's slogan says it all: “Investing on autopilot.”

A nice side effect of AI investing — even lower fees. Wealthsimple and Betterment both allow you to open an account with $0 down; Wealthfront asks for $500. Wealthsimple charges an annual 0.5% advising fee; Wealthfront and Betterment charge just 0.25%.
The Best Cheap Online Stock Brokers: Summed Up

Ally Invest

Charles Schwab

Interactive Brokers

Best for New Investors

Best Resources

Best for Active Investors
Account Minimum

$0

$1,000*

$10,000
Price Per Trade

$4.95

$4.95

$1
Per Share Fee

$0

$0

$0.005
Margin Rates

4.25%-8.75%

6.825%-8.575%

1.78%-2.66%

*Waived with monthly direct deposit of $100
Our Other Financial Reviews

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cheapest online broker

Best online brokerage

Best online brokerage

The StockBrokers.com annual review sets the official industry benchmarks. Our data is used by executive teams, and our ratings are referenced on earnings calls, national TV commercials, US Senate hearings, and throughout the web. We spend more than one thousand hours testing online brokerage accounts every year. Industry leaders trust us because our rigorous testing is totally independent and 100% unbiased.

Choosing an online stock broker is one of the most important decisions you will make as an investor. Every trader has a different investment style of stock and options trading, and the variety of services brokers offer allows individual traders to be highly selective in determining which online broker best fits their needs.

To help stock traders, this guide aims to introduce online trading and offer indispensable advice relating to unique and helpful aspects of these online platforms, the way they function, and how they can best be utilized.

As the head of research here at StockBrokers.com, I have been an online stock trader for over 17 years and have placed several thousand buys and sells over that time. To conduct my testing, I have a funded brokerage account with over a dozen different brokers.
Best Online Brokerages for Trading

Here's a breakdown of some of the best online brokers for stock trading.
Fidelity

Fidelity - Best for Investors

Fidelity Investments charges $4.95 per trade and received 5 stars in our 2018 Review, including being awarded Best in Class for 12 different categories. It is our top recommendation for discount trading. The company also took home the #1 awards for Research, Order Execution, and Ease of Use. Finally, Fidelity’s mobile app was rated Best Mobile App for Investors.
TD Ameritrade

TD Ameritrade - Best for Traders

Rated our #1 online broker for traders in 2018, TD Ameritrade charges $6.95 per trade and offers the largest variety of trading tools through its desktop-based thinkorswim and Mobile Trader platforms. It also ranks #1, alongside its Best in Class rating, for numerous other categories including New Investors, Active Trading, Options Trading, and Customer Service, among others. Read more...
Charles Schwab

Charles Schwab - Best for Retirement

Charles Schwab charges $4.95 per trade and was rated 4.5 Stars Overall, alongside its #1 for Retirement Services and 5 stars for Research. Extensive research access along with consistent customer service, ample tools, the largest selection of commission-free funds, and industry-leading market reports combine to present a great full-service brokerage.
ETRADE

E*TRADE - Best for Options, Mobile

E*TRADE, with its $6.95 stock trades, finished fourth overall with 4.5 stars in 2018. E*TRADE was awarded 5 stars and #1 for Options Trading, thanks to its OptionsHouse by E*TRADE trading platform. The broker also won first place for Mobile Trading, and offers well-rounded access to quality research, trading tools, education, and more.
Interactive Brokers

Interactive Brokers - Best for Professionals
Exclusive Offer: New clients that open an account today receive a special margin rate.

Designed for professional traders serious about their craft, Interactive Brokers offers only per-share pricing ($.005 per share with a $1 minimum per trade), and charges up to $20 per month between two minimum activity fees. Traders who can meet its $100,000 minimum deposit for margin trading are rewarded with an industry-leading commissions schedule, margin rates, and full support for international trading. Read more...
Merrill Edge

Merrill Edge - Best Rewards Program

Merrill Edge ($6.95 per trade) was awarded #1 for Banking Services, thanks to its parent company, Bank of America. Not limited to just BofA customers, Merrill Edge's Preferred Rewards program is excellent, offering $0 stock trades among other perks such as bonus rewards on credit cards and discounted mortgage rates.
TradeStation

TradeStation - Best for Platform Technology
Current Offer: Low Fees and Free Market Data. Trade with TradeStation.

TradeStation's advanced trading platform has been awarded Best Platform Technology for the past five years. For active traders, TradeStation was rated 5 stars and comes packed full of tools and functionality. Trades are just $5 and users can even code their own apps using the broker's proprietary EasyLanguage programming language. Read more... Advertisement
Ally Invest

Ally Invest - Best for Ally Banking

Ally Invest (previously TradeKing) provides $4.95 trades, and is a simple choice for current customers of Ally who are looking to invest in the stock market. Like Merrill Edge and Capital One Investing, customers can easily manage their banking and brokerage accounts under one login.
Choosing the Best Online Brokerage

When looking for a new online broker, make sure you meet your most important needs as an investor. Are low-cost trade commissions most important? What about customer service, the trade platform, mobile trading, active trading, or a community to trade alongside? With many brokers specializing in different areas, it is vital to evaluate and compare all the possibilities.

Here is a list of the most important factors to remember when selecting an online brokerage:

    Trading Costs - When trading stocks online, it is important to understand what the costs are to place buy or sell orders. Most online brokers charge a flat rate to buy and sell. That said, other miscellaneous day trading costs can be incurred for direct routing fees or accessing market data. If you are investing in a retirement account, it is important to avoid choosing a broker that charges annual IRA fees.
    Trading Tools - One of the most common misconceptions newer investors have is that low trading costs are the most important consideration. This couldn't be further from the truth. Having access to a fully featured desktop-based or web-based trading platform can make a big difference, especially when conducting technical analysis.
    Investment Products - Are you only trading stocks online, or are you interested in ETFs, mutual funds, options, futures, and forex too? In the United States, different regulations are required for brokers who support more complex asset classes. Beyond trading different assets classes, having access to online banking and advanced order types, such as conditional orders, are also considerations.
    Mobile Trading - Managing a stock brokerage account on the go is certainly important for traders who travel and frequently use their smartphones. While nearly all online brokerages offer mobile trading apps, not all are created equal. Features can vary dramatically.
    Customer Service - 24/7 support is important to some investors, while others may just want to use online chat during regular market hours or receive an email back within one business day. Having access to quality customer support can really be the cherry on the top of a great client experience, especially during market crises like a flash crash.
    Stock Analysis - Conducting fundamental research is critical to successful long-term investing. SEC filings, short interest, corporate debt levels, earnings growth, and more are all examples of important criteria to be investigated during fundamental investment research.
    Regulation - Stock brokers based in the United States and governed by US law will be regulated by the SEC and must be members of FINRA and SIPC. The easiest way to verify whether your online brokerage is regulated is to scroll to the footer of their homepage and read their disclosures. Using the FINRA broker check tool is another easy way to verify proper compliance.
    Banking Services - Online brokerage accounts are not limited to just stock trading. Instead, customers can take advantage of banking services offered by full-service brokerages (see the list above for three great examples). Some online brokers offer checking accounts, savings accounts, credit cards, and more with deposits of up to $250,000 backed by the FDIC.
    Account Security - Fortunately, today’s investors don’t have much to worry about when it comes to account security as long they choose a brokerage that is large, well known, and properly regulated. Reference our list above or below for a sampling. Every website should be secured with SSL encryption, and client data should be stored in secure servers. Dual-factor authentication and Touch ID are other security protocols quickly growing in popularity.
    Order Execution - It is important to understand how your order is routed and executed. Make no mistake, there is a wide variation between quality execution and poor execution. Unfortunately, most online stock traders can't tell the difference.
    International Trading - The US stock market is the most respected in the world. If you are living in the US and want to trade internationally, or are living abroad and want to trade stocks online with a US-regulated brokerage, you must do your research beforehand and find a broker that supports your requirements.

Best Trading Tools

Based on 59 different variables, here is a summary of the top five brokers for stock trading tools and trade platforms.

    TD Ameritrade - Scored 100%
    TradeStation - Scored 93%
    Fidelity - Scored 93%
    Charles Schwab - Scored 91%
    Interactive Brokers - Scored 89%

To trade online successfully, some investors rely purely on their trading tools. Today’s trading platforms are not only web based, but also desktop based, and are becoming increasingly mobile based as well. Advanced charting, options tools, screeners, hotkeys, virtual trading, watch lists, ladders, Level II quotes, and back testing are just a sampling of the functionality brokers make available to their customers.

    Over the years, I have learned it is not just the trading tools that separate brokers, but the design, depth, speed, and overall execution of delivering the ultimate trading experience.

Over the years, I have learned it is not just the trading tools that separate brokers, but the design, depth, speed, and overall execution of delivering the ultimate trading experience. This is where brokers such as TD Ameritrade’s thinkorswim and TradeStation really excel. After spending hundreds of hours on both desktop platforms, we give thinkorswim the edge, thanks to its modern feel and outstanding trader tools; however, both platforms execute so well that it truly comes down to personal preference. Die-hard fans exist for both, and either one is a great choice for seasoned active traders.

TD Ameritrade thinkorswim platform

Behind thinkorswim and TradeStation, Fidelity’s Active Trader Pro and Schwab’s StreetSmart Edge are two desktop platforms worth looking at closely. Active Trader Pro and StreetSmart Edge have one distinct advantage over thinkorswim and TradeStation, and that is ease of use. While these platforms do not offer the same depth of trading tools, historical data, chart studies, etc., both are very well designed and user-friendly. In some respects, their balance of power and design make them a better fit for certain traders.

TradeStation desktop platform

Unfortunately, not all active trader platforms are free to use or available to all customers. For example, to gain complete access to Fidelity’s Active Trader Pro offering, 36 trades or more must be placed in a rolling 12-month period. Similarly, E*TRADE Pro requires at least 30 trades per quarter or $250,000 in assets. Finally, Lightspeed charges $100 per month for access to its flagship platforms if certain minimums are not met. Platform fees and minimums are set in place to control costs, and while these serve simply as examples, investors should be aware of them if they are considering an online broker based solely on its platform.

Fidelity Active Trader Pro platform

Investors who prefer a web-focused experience have a choice of many great browser-based platforms. Our top pick again this year, OptionsHouse by E*TRADE, combines the best of both worlds: ease of use with fantastic trading tools. The platform is just “ok” for equities trading, but is terrific for options trading. See: Best Brokers for Options Trading.

optionshouse option snapshotanalysis

Ultimately, TD Ameritrade takes the overall No. 1 spot for Platforms and Tools because it offers investors fantastic trading experiences on desktop and on browsers. Trade Architect (browser) appeals to newer and intermediate investors, while thinkorswim (desktop) is built solely for seasoned active traders. The icing on the cake? Both platforms require no minimums or fees for access and use. All customers have access.

TD Ameritrade Trade Architect

Before selecting a broker based on its platforms and tools, take time to read our online broker reviews, narrow your search to two or three brokers, compare their offerings, then make a decision. Start with questions like: What specific trader tools must I have to trade successfully? Will I reach the minimums to maintain fee-less, consistent access throughout the year? Do I prefer a more user-friendly browser-based platform or a more advanced trader-focused desktop platform?
Best for Stock Analysis

Based on 60 different variables, here is a summary of the top five brokers for stock research:

    Fidelity - Scored 98%
    Charles Schwab - Scored 97%
    TD Ameritrade - Scored 97%
    E*TRADE - Scored 92%
    Merrill Edge - Scored 90%

It is not surprising that the largest, most publicly known online brokers excel, and all vie for the top spot for research. With larger client bases and higher commission costs, high-quality research is expected.

Comparing apples with apples, all five brokers are fairly similar. They all use Morningstar as their primary provider for Exchange Traded Funds (ETF) and mutual fund research, all of them offer a slew of data and graphs for researching stocks, and all offer fixed-income research. Slight differences begin to show only when you assess specifics such as total third-party research reports available for equities, for example Apple (AAPL). In that category, the title goes to Fidelity, with 12 total reports offered, followed by Charles Schwab with eight, and TD Ameritrade with seven.

    While any of these brokers will more than satisfy most investors’ appetites, deciding on a winner based on checklists alone is not enough.

While any of these brokers will more than satisfy most investors’ appetites, deciding on a winner based on checklists alone is not enough. Quality and design matter just as much as quantity, not to mention the fact that many brokers will go “above and beyond” to differentiate themselves.

Fidelity, which earned our No. 1 spot again this year, stands out for its 12 equity research reports and fantastic stock comparisons, allowing customers to compare up to five stocks at once with 21 different metrics. Fidelity also distributes high-quality market analysis and personal finance education through its Fidelity Viewpoints weekly distribution. What excites us most about Fidelity is its fully responsive (mobile friendly), carefully laid out research area. Content flow and personalization are at the heart of the experience, which is unlike any other broker in the industry.

Fidelity account stock quote

Charles Schwab, on the other hand, offers customers its own proprietary A – F ratings, called Schwab Equity Ratings, for some 3,000 US stocks. Even more impressive, Schwab boasts a full lineup of 26 in-house experts who provide numerous articles, known as Schwab Insights, on a variety of market topics throughout each week. Some experts, such as Chief Investment Strategist Liz Ann Sonders, can often be seen on TV discussing the market. Schwab also provides the best video experience out of all the brokers, thanks to its market updates and Schwab LIVE events.

Charles Schwab Insights

Not to be outdone, TD Ameritrade won our Best New Tool award in 2017 for the earnings analysis tool offered on its thinkorswim platform. TD Ameritrade also offers what it calls Social Signals analysis for individual equities. Using proprietary algorithms, the Sentiment Score shows what percentage of tweets are positive and displays other relevant metrics. Additionally, in the social realm, TD Ameritrade analyzes data from its six million retail customers to create what it calls the Investor Movement Index (IMX), which displays and analyzes the sentiment of its retail investors’ portfolios.

td ameritrade thinkorswim earnings analysis

All in all, when it comes to researching stocks, ETFs, mutual funds, and fixed income, any top five broker is going to provide an excellent experience for investors. With such similar offerings, it’s the unique experience, features, and functionality that differentiate the brokers.
Best for Investment Products

Based on 40 different variables, here is a summary of the top five brokers for investment products:

    Interactive Brokers - Scored 96%
    TD Ameritrade - Scored 91%
    Charles Schwab - Scored 89%
    Fidelity - Scored 88%
    E*TRADE - Scored 87%

Investing covers a global spectrum, from investing in international equities to trading forex to purchasing US treasury bonds. To understand the true range of offerings, StockBrokers.com has focused on all the broad investment channels down to the specific order types each broker offers. In the process, we compare 40 different variables.

Starting with the US, services such as complex options trading, fixed income, and direct market routing are all very common. Other services, such as commission-free ETFs, are still growing in the industry. Just 46% of brokers offered commission-free ETFs heading into 2018, with TD Ameritrade leading the way (296). Every broker in the industry supports weekly options, and only four brokers – Capital One Investing, Firstrade, Just2Trade, and Merrill Edge – don’t yet support complex options. On the flip side, only 46% of brokers offer direct market routing for options.

As far as order types go, it is an industry standard to support market orders, limit orders, stop orders, and after-hours trading. Even more advanced order types such as trailing stops, OCO, OTO, OTOCO, and multi-contingent orders are supported by more than half the industry. The least common order type is algo, offered by less than half the industry. The leader overall is Interactive Brokers, which offers customers an arsenal of 63 different order types, some of which are exclusively designed for institutional investors.

    Looking at international trading, Fidelity and Interactive Brokers are, by a wide margin, the two best choices.

Looking at international trading, Fidelity and Interactive Brokers are, by a wide margin, the two best choices. Fidelity offers its customers access to trading equities in 25 countries. Interactive Brokers offers less equities support – in “only” 18 different countries; however, all investment types considered, the total comes to 26 countries and over 120 market centers. Both brokers also make it a seamless trading experience, allowing customers to trade from their primary account. Charles Schwab (12 countries in which to access equities) requires a separate account to be opened to place trades.

Plenty of options are available for futures trading, while forex trading is scarcely supported. Just two brokers, TD Ameritrade and Ally Invest, offer forex trading to US customers, and just over half the industry offers futures trading.

All variables considered, Interactive Brokers is the top choice for the largest offering of investments in 2017, earning 96% of the possible points. TD Ameritrade and Charles Schwab follow in second and third places, earning 91% and 89%, respectively.
Best for Banking Services

Based on 13 different variables, here is a summary of the top five brokers for online banking services:

    Merrill Edge - Scored 99%
    Capital One Investing - Scored 96%
    Charles Schwab - Scored 94%
    Fidelity - Scored 77%
    Ally Invest - Scored 76%

For full-service brokers, the client experience goes beyond just trading. Customers of Merrill Edge, Capital One Investing, Charles Schwab, Ally Invest, and Fidelity all fall under this category, meaning banking services are also offered.

To determine which broker is the best for banking, we dived in head first and explored all the potential services: checking accounts, savings accounts, debit cards, credit cards, and mortgages. We then looked at specialty offerings such as mobile check deposit, debit card ATM fee reimbursement, and no-fee banking. Lastly, the total number of branch offices was factored in, as access to local branch offices is just as important as managing an account online.

    It should be no surprise that our #1 choice is Merrill Edge, whose parent company is Bank of America.

It should be no surprise that our #1 choice is Merrill Edge, whose parent company is Bank of America. With a Financial Solutions Advisor (FSA) located in 2,167 out of a total 4,480 locations, Bank of America has, by far, the largest network.

Bank of America really shines with its rewards program, Preferred Rewards, which offers customers with certain account thresholds a range of benefits. The first tier, Gold, requires at least $20,000 in combined assets between Bank of America and Merrill Edge, while the top tier, Platinum Plus, requires at least $100,000 in total assets. Benefits include boosts to money-market savings, credit card cash back bonuses, free trades with Merrill Edge, and more. All in all, there isn’t a better marriage of brokerage and banking than Merrill Edge and Bank of America.

Merrill Edge Preferred Rewards

Alongside Merrill Edge’s parent company, Bank of America, another well-recognized brand is Capital One Investing, whose parent company is Capital One. Next to Bank of America, Capital One is the only other bank to offer every service type: retail locations, checking accounts, savings accounts, debit cards, credit cards, and home mortgages. Capital One is best known for its credit cards, and like Bank of America, its customers enjoy the benefits of universal login for easy access to all their accounts.

Together with our ranking, we present highlights from the rest of the full-service brokers. Fidelity has one of the best cash rewards credit cards on the market, with its 2% Fidelity Investment Rewards Visa Card (Fidelity cut its ties with American Express in early 2016). Of the remaining brokers, Charles Schwab is the only one to offer home mortgages. The list goes on and on.

When it comes to banking and brokers, the great news is that investors have multiple options from which to choose. Full-service brokerages generally do a very good job of catering to the specific needs of their customers, and provide a well-rounded offering. This is especially true for customers who already do their banking with Bank of America, Capital One, or Ally; the move to add investing as an additional service is just a few clicks away.
Best for Customer Service

Based on 260 phone tests over ten weeks, here is a summary of the top five brokers for customer service (view infographic):

    TD Ameritrade
    Fidelity
    Merrill Edge
    Charles Schwab
    TradeStation

When assessing customer service, one phone call is not enough. To gauge the quality of support properly, multiple tests across every channel must be conducted. Here at StockBrokers.com, we are proud of the fact that our testing is respected as the most rigorous in the industry.

    To ensure the highest quality testing data, we partner with professional private shopping group Confero.

To ensure the highest quality testing data, we partner with professional private shopping group Confero. With customers such as Coca Cola and Shell, Confero understands how to read between the lines and identify truly superior customer service. Using our StockBrokers.com industry-specific templates, Confero made 260 phone calls to branch offices and support numbers across the United States.

This year, TD Ameritrade was once again able to take the No. 1 spot overall, edging out Fidelity. Merrill Edge has been an extremely consistent performer, finishing third in 2018, second in 2017, first in 2016, and second again in both 2015 and 2014. The consistency and ability of TD Ameritrade’s support reps to repeatedly deliver an A or A+ experience is truly impressive.
Best Brokers Summary

Online Broker Best For Minimum Deposit Commissions Overall Rating
Fidelity Best for Investors $0 $4.95 5 Stars
TD Ameritrade Best for Traders $0 $6.95 5 Stars
Charles Schwab Best for Retirement $1,000 $4.95 4.5 Stars
E*TRADE Best for Options $500 $6.95 4.5 Stars
Interactive Brokers Best for Professionals $10,000 $.005 per share 4.5 Stars
Merrill Edge Best Rewards program $0 $6.95 4.5 Stars
TradeStation Best Platform Technology $5,000 $5.00 4 Stars
Ally Invest Best for Ally Clients $0 $4.95 3.5 Stars

Related Articles

Explore our other online trading guides:

    Best Brokers for Options Trading
    Best Brokers for Penny Stocks
    Best Brokers for Beginners
    Best International Stock Brokers
    Trade Cost Calculator
    Compare Online Brokers

References

    SEC
    FINRA
    SIPC
    NASDAQ info - NASDAQ companies
    NYSE info - NYSE companies
    Stock quotes
    Stock news
    Stock charts

Day trading courses

Day trading courses

There are loads of day trading courses, and it's impossible to review them all. But these are some of the best day trading courses out there, and while the list is never complete, it at least offers a few courses to consider. These courses are good because they are taught by traders with lots of trading experience (more than 10 years) and offer a great education you can take with you for the rest of your life (bang for the buck).

When considering a day trading course, be wary of people with little trading experience trying to make money off subscriptions or courses. There are loads of junk day trading courses out there, so make sure to do your research before starting your education.
What to Look for In a Day Trading Course

As a general rule, only consider a course offered by someone with at least 10 years trading experience. That way you know they have been through the ups and downs and are a better trader for it. Many courses you find online--offered by people with only a year, or even several years, of experience--likely won't be there a couple years from now. Most traders don't last, so stick with courses and traders that have been around a while. All the best day trading courses discussed below meet this criterion as well as provide valuable trading information (just because a trader says they have traded for 10 or more years, doesn't mean they are a good teacher or offer a good course).

Day trading courses

The best day trading courses also teach you to trade for yourself. They don't hide things from you so they can take money from you month after month. Strategies and information should be offered in such a way that you can eventually trade on your own. You may choose to take part in monthly programs or chat rooms they offer, but you don't have to. The best day trading courses make you self-sufficient, and don't keep demanding fees month after month, or require you to buy course after course to find missing pieces of the puzzle.

The best day trading courses, discussed below, will make you a self-sufficient trader; while you do pay initially for the education, that fee buys you an education you can use for the rest of your life.
Be Realistic About What You Expect, Based On Your Work Ethic

Keep in mind that most day traders fail. Even with the best education, most want-to-be traders will still fail, because they don't practice what they are taught, or simply choose to ignore the advice provided. Trading is a difficult task, and people (especially unsuccessful traders) aren't going to blame themselves for their failure, they are more likely to blame the teacher or the market. That means you'll see negative reviews on all trading schools and courses--and pay attention to those--but also pay attention to the positive things people say.

Being a professional trader is like being a professional in other careers...it takes a lot of work and time! You can have the best education, but ultimately it is you who is responsible for your own success. If you are an athlete, you may have the best running coach in the world, but until you actually start practicing and putting in more work than everyone else you are competing against, you won't win. Day trading is a battleground. In order to win, your skills need to be better than most of the other traders in the marketplace, you need to be less affected by your emotions than those around you, and you need to practice a reliable strategy for hours a day, for months, before you can expect to see consistent, profitable results.

All that said, here are some great day trading courses to consider if you're starting your day trading journey (or have been trading for a while but need help). These are courses I have personally tested out, or that close trading friends (also successful traders) have vouched for based on their experience.
The Day Trading Academy

The Day Trading Academy (DTA) focuses on futures trading, primarily E-Mini S&P 500 (ES) futures. They teach a method of trading based on price action, so you learn how to read and anticipate market moves, allowing you to adapt to all types of market conditions. Some indicators are also used to help new traders see how the price action is unfolding.

The curriculum includes an online course with reading and loads of videos highlighting each point. The course starts with the basics, and then builds until you ultimately learn an adaptable trading strategy.

Exercises are provided throughout the course to get you practicing the concepts you learn. These exercises can be submitted for review to the DTA.

Daytrade course

The course is $2,997 and includes (all online) access to the course, 3 months of one-on-one mentoring, weekly webinars/live trading classes, review classes, and video recaps showing the main opportunities (based on the strategy) each day. Packages with additional mentoring time are also available.

Personal mentoring takes a lot of time and is an invaluable resource. You get to address your specific trading issues with a professional trader who has been through what you are going through and has successfully navigated past those issues.

If you are interested in learning to day trade with the Day Trading Academy, check out their website and sign up for their free day trading newsletter (click "Start Now") for trading insights and information on how to get started on the course.

The Day Trading Academy was founded by Marcello Arrambide. He began trading in 2002 and started the DTA in 2011.
The Stock Whisperer

If you're interested in day trading stocks, the Stock Whisperer offers a number of different courses and services. Stefanie--the stock whisperer--provides a free daily "whisper of the day" which include stocks and ETFs to watch that day, along with important price levels. Check out recent "whispers" on Scutify.

For live trade signals, and to watch Stefanie trade, join The Java Pit. It's $9.95 for the first month, and then $69.95 per month after that. You'll learn a lot, but it isn't a course, it's a trading room.

For courses, you have a number of choices. The courses teach you the strategies Stefanie uses, along with lots of examples. After taking a course you can join The Java Pit to see more examples, or you can continue trading on your own with your new found knowledge.

Counting Cards on Wall Street is one of the main day trading courses offered, via three parts ($99, $249 and $249 respectively). You can also get all three courses (along with What's Inside the Candle, which is $299) in the Rudy Education Package for $623. The package deal offers significant savings over buying the courses individually.

The Stock Whisper focuses on tape reading (time and sales), spotting big buyers and sellers (prints), volume analysis, support and resistance and dark pools. The Stock Whisperer also offers a number of other courses, including swing trading courses, boot camps, and one-on-one coaching. Check current prices and availability on the Stock Whisperer's Courses page.

Stefanie Kammerman is The Stock Whisperer. She began trading in 1994, and in 2010 began teaching in the online chat room.
TradePro Academy

If you are interested in trading options, TradePro Academy has a number of different courses and services available to you. Options aren't typically day traded, although, based on the strategies you will learn you can take short-term options trades, for both day trading and swing trading.

The Path to Profits course introduces traders to the options market and then teaches a reliable options trading strategy where risk and reward are fixed on each trade.

Day trading course

The course includes an options refresher (available for free), assessing volatility, picking the best options to trade, building a trading plan, placing orders, capital management, managing trades, assessing profit/loss scenarios, part-time trading and a full day of living trading.

The course is $147 as a stand-alone product, or, receive the Path to Profits Course (along with all courses offered by TradePro Academy) for a subscription of $79 per month.

$79 per month is the "Pro Package" giving you access to a success coach, all trading courses (Path to Profits, Foundations Course and Options Course) as well as additional courses which may be offered, weekly analysis webinars and live trade alerts.

George Papazov is the founder of TradePro Academy. He began trading in 2001 and started TradePro in 2012.
Final Word on The Best Day Trading Courses

Day trade course

There are loads of day trading courses, and some great ones may not be included on this list. But when it comes to futures, stocks and options, the Day Trading Academy, The Stock Whisperer, and TradePro Academy do a great job of teaching traders how to be successful in that respective market. These traders have taken the time to build a course, as well as give up their time to mentor students and create webinars/forums for traders to discuss what they are learning and pose questions. That is why there is a fee, but when you consider the rewards that trading offers--lots of free time and an income--the fees for these courses are actually quite low.

Remember to temper your expectations, though, and realize that your ultimate success is up to you. If you don't put in the work and the time, you won't be a successful trader, period, no matter how many courses you take. If you opt to participate in one of these day trading courses, make you sure you make the most of it by engaging yourself in the process of learning, working hard and practicing what you are shown.

These recommendations are unsolicited. The author is not a part of any of these organizations and has not received financial compensation for writing this article by any of the organizations mentioned.

How to trade currency

How to trade currency How to Trade Forex

Currency prices are constantly fluctuating against each other, offering multiple trading opportunities daily.

Trading Forex

Unlike most financial markets, the OTC (over-the-counter) foreign exchange market has no physical location or central exchange and trades 24-hours a day through a global network of businesses, banks and individuals. This means that currency prices are constantly fluctuating in value against each other, offering multiple trading opportunities.

At City Index, you can speculate on the future direction of currencies, taking either a long or short position depending on whether you think the currency’s value will go up or down. The below video shows you how to trade the EUR/USD currency pair with CFDs.

FX Trading steps
1. Choose a currency pair

Decide which currency pair you wish to trade. With over 65 currency pairs to choose from, picking a trading opportunity that’s right for you is important.
City Index’s technical and fundamental research tools can help you spot currency trading opportunities to suit your trading style. We recommend that you take your time to understand the amount of price volatility associated with the currency pair to help manage your risk.

2. Decide on the type of FX trade

There are three ways to trade forex with City Index Spread Betting, CFD or Forex Trading. Each has its particular stake size:

    In spread betting you trade pounds per point movement
    In CFD trading you trade a quantity of CFDs in the unit of the base currency (currency on the left). For example if you trade GBP / USD your stake would be in Pounds, while in USD / JPY your stake would be in US Dollars
    In Forex trading you buy lots, in the unit of the base currency (currency on the left)
    For example if you trade GBP / USD your stake would be in Pounds, while in USD / JPY your stake would be in US Dollars (the minimum stake size is 1000)


3. Decide to buy or sell

Once you have picked a market, you need to know the current price it is trading at, which you can do by bringing up an order ticket in the platform. All forex is quoted in terms of one currency versus another. Each currency pair has a ‘base’ currency and a ‘quote’ currency. The base currency is the currency on the left of the currency pair and the quote currency is on the right. Put simply, when trading foreign currencies, you would:

BUY a currency pair if you believed that the base currency will strengthen against the quote currency, or the quote currency will weaken against the base currency.

Your profits will rise in line with every increase in the exchange price.

Every fall in the exchange price below your open level, will net you a loss.

SELL a currency pair if you believed that the base currency will weaken in value against the quote currency, or the quote currency will strengthen against the base currency.

Your profits will rise in line with each point the exchange price falls.

Every increase in the exchange price above your open level, will net you a loss.

Spread - FX pairs have two prices.
The first price is the sell price (known as the bid) and the second price is the buy price (also known as the offer).  The difference between the buy price and the sell price is known as the spread, and is basically the cost of the trade.

4. Adding orders

An order is an instruction to automatically trade at a point in the future when prices reach a specific level predetermined by you. You can utilise stop and limit orders to help ensure that you lock in any profits and minimise your risk when your respective profit or loss risk targets are reached.

While not compulsory, given the volatility in FX markets using and understanding risk management tools such as stop loss orders is essential.

A stop loss order is an instruction to close out a trade at a price worse than the current market level and, as the name suggests, is used to help minimise losses. There are two types of stop loss orders - standard and guaranteed.

A standard stop loss order, once triggered, closes the trade at the best available price. There is a risk therefore that the closing price could be different from the order level if market prices gap.

A guaranteed stop loss however, for which a small premium is charged upon trigger, guarantees to close your trade at the stop loss level you have determined, regardless of any market gapping.

A limit order is an instruction to close out a trade at a price that is better than the current market level and is used to help lock in price targets.

Standard stop losses and limit orders are free to place and can be implemented in the dealing ticket when you first place your trade, and you can also attach orders to existing open positions.

Learn more about risk management here.
5. Monitor and close your trade

Once open, your trade’s profit and loss will now fluctuate with each move in the market price.

You can track market prices, see your unrealised profit/loss update in real time, attach orders to open positions and add new trades or close existing trades from your computer or app on your smartphone and tablet.
6. Closing your trade

When you are ready to close your trade, you simply need to do the opposite to the opening trade. Supposing you bought 3 CFDs to open, you would sell 3 CFDs to close. By closing the trade, your net open profit and loss will be realised and immediately reflected in your account cash balance.

Please note that City Index Spread Betting and CFD accounts are FIFO - to read more about this please visit our help and support section.
Forex trading examples

Carefully look through the Forex trading examples here to ensure you understand how forex trading works.