Options trading is a great way to make money, but you need to know what you’re doing. If you don’t, you’ll lose money fast.
That’s why we’ve put together this list of the best apps for trading options. These apps are designed to help you manage your trades easily, make smart decisions, and avoid costly mistakes.
If you’re reading this article, then chances are good that you’re already an expert at options trading—or at least want to be one! You’ve come to the right place: our list of the best apps for trading options will help you take your skills even further.
Best Apps For Trading Options
Options can be used to generate income, hedge your risk, or add more fuel to your portfolio by increasing your exposure to certain stocks and indexes. But because options trading is inherently more complex than simply buying stocks or funds, options traders often need to be more selective in choosing the right options trading platform. In the guide below, we’ll share our top picks for the best options trading platforms and what you should look for when choosing an options trading platform.
The Ascent’s best options trading platforms
Show The List [+]
Ratings Methodology
TD Ameritrade
TD Ameritrade
OPEN ACCOUNT Double arrow
Our Rating:
Rating image, 5.0 out of 5 stars.
5.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
Stands out as not only one of the top options brokers but also a top-rated all-around brokerage with outstanding tools and comprehensive research.
Read Full Review
FEES:
$0 online commissions for stocks, ETFs, and options ($0.15-$0.65 per contract)
ACCOUNT MINIMUM:
$0
Open Accountfor TD Ameritrade
On TD Ameritrade’s Secure Website.
Robinhood
Robinhood
OPEN ACCOUNT Double arrow
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
Robinhood is an efficient options trading platform that captures a spot as one of the cheapest options brokers. Commission free options trading round out a feature set to trade stocks, ETFs, fractional shares, and cryptocurrency without commissions as well.
Read Full Review
FEES:
$0 for stocks, ETFs, options, and cryptocurrencies
ACCOUNT MINIMUM:
$0
SPECIAL OFFER
Get a free stock with a new account
Open Accountfor Robinhood
On Robinhood’s Secure Website.
Ally Invest
Ally Invest
OPEN ACCOUNT Double arrow
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
Impresses with a low option trading fees per contract, while also offering $0 stock commissions and $0 account minimums.
Read Full Review
FEES:
$0 per options trade, $0.50 per contract
ACCOUNT MINIMUM:
$0
SPECIAL OFFER — $3,000 bonus: $2mm+ deposit/transfer
— $2,000 bonus: $1mm-$1.99m deposit/transfer
— $1,200 bonus: $500k-$999.9k deposit/transfer
— $600 bonus: $250k-$499.9k deposit/transfer
— $300 bonus: $100k-$249.9k deposit/transfer
— $250 bonus: $25k-$99.9k deposit/transfer
— $100 bonus: $10k-$24.9k deposit/transfer
Up to $3,000 bonus cash
Open Accountfor Ally Invest
On Ally Invest’s Secure Website.
BEST FOR MOBILE
ETRADE ETRADE
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5 stars
ToolTip Icon for Star Rating.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
Caters to active traders with multiple options trading platforms, while also appealing to long-term investors with thousands of mutual funds and ETFs that can be traded for free.
Read Full Review
FEES:
$0 per options trade, $0.65 per contract
ACCOUNT MINIMUM:
$0
TradeStation
TradeStation
OPEN ACCOUNT Double arrow
Our Rating:
Rating image, 4.0 out of 5 stars.
4.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
One of the best platforms for options trading that’s designed for active traders and cost-sensitive investors. If you’re willing to do the work to price each of the two commission schedules, you can often spend less than with other options platforms.
Read Full Review
FEES:
$0 per options trade, $0.50-$0.60 per contract
ACCOUNT MINIMUM:
$500
SPECIAL OFFER
New accounts with qualifying assets earn $50 to $5,000 using code FOOLAFSA
Open Accountfor TradeStation
On TradeStation’s Secure Website.
Webull
Webull
OPEN ACCOUNT Double arrow
Our Rating:
Rating image, 4.0 out of 5 stars.
4.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
Like Robinhood, Webull is essentially a no cost options broker that doesn’t charge options trading fees for commissions or per contract. Additionally, the platform is easy to use and offers access to more than just stock options trading. If you’re considering Robinhood, compare it to Webull as well.
Read Full Review
FEES:
$0 per trade
ACCOUNT MINIMUM:
$0
SPECIAL OFFER
Up to five free stocks
Open Accountfor Webull
On Webull’s Secure Website.
Interactive Brokers
Interactive Brokers
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
The competitive base options commission and tiered per-contract pricing, alone, land Interactive Brokers a spot on this list. The otherwise robust feature set and low options trading fees also make it a solid platform to trade options.
FEES:
$0 per options trade, $0.25-$0.65 per contract
ACCOUNT MINIMUM:
$0
Read Review
tastyworks
tastyworks
Our Rating:
Rating image, 4.0 out of 5 stars.
4.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. = Best
= Excellent
= Good
= Fair
= Poor
BOTTOM LINE
A true options-first broker that sprinkles in the ability to trade mostly stocks, ETFs, and futures. The standouts are its options trading platform and commission structure.
FEES:
$0 for stocks, $1 per option contract (opening trades only)
ACCOUNT MINIMUM:
$0
Read Review
How to pick the best broker for option trading
One key point to keep in mind is that there’s no such thing as the best platform for options trading for everyone, and the costs and features should be weighed with your own preferences in mind before you open a brokerage account of your own.
For example, Robinhood has no commissions for options trades whatsoever, but its platform is very light on functionality and features, which makes it appropriate for investors who don’t necessarily need educational resources and just want to dabble in basic call and put trades. On the other hand, an options broker like E*TRADE charges commissions, but is packed with features and resources which could be worth far more than the commission costs for many investors.
TIP
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Features of the best options trading brokers
Options traders typically demand more of an options trading platform than people who are simply entering market or limit orders for stocks. Active option traders may prioritize options brokers based on their selection of calculators or screeners, whereas the infrequent options user may care about commissions alone.
Some features that may be considered “make or break” when picking the best platform to trade options are listed below:
Commissions free options trading: While price isn’t everything, what you pay to make a trade ultimately plays through to your profit or loss. It makes very little sense to place a trade where the only likely winner is the brokerage firm. Commissions have come down quite a bit in recent years, and most of the best brokers for option trading offer commission-free trading on stocks as well, but there’s still quite a bit of difference within the industry when it comes to options. Many of the best platforms for options trading have commission free options trading but may charge options trading fees per contract.
Platform: Admittedly, an options trading platform often has more to do with personal preference than anything else, as placing a trade through any brokerage is usually a matter of a few clicks. Some traders may see TD Ameritrade’s full-featured thinkorswim platform as an asset, while beginning investors may see the complex interface as a liability. It’s also important to note that some options brokers (like TD Ameritrade) offer a full-featured platform and an easier-to-use trading platform.
Resources: Many of the best options brokers offer a full range of educational resources, which can be extremely valuable for investors who are new to options. As we mentioned, options can be very complex financial instruments and it is very easy to lose lots of money if you don’t know what you’re doing.
How do the best options trading platforms compare on trading fees?
Commissions and fees for options trades can vary wildly even among the best platforms for options trading, and the difference can really add up. Here’s a look at the costs associated with options trading, and how much our best brokers for option trading charge.
Commissions
Most of the best options brokers have eliminated flat-rate commissions for online stock and options trades, and just use a small fee for certain options traded. That means they offer commission free options trading, but charge a fee based on the number of options contracts traded. Thus, it costs more at most options brokers to trade 50 options contracts than it does to trade 10 options contracts.
The most common price point is roughly $0.65 per contract, although this can be between $0 and $1.00, depending on the stock options broker. Based on the typical fee of $0.65, to buy 10 contracts, a trader would pay $6.50 to make the trade ($0.65 × 10 = $6.50). To buy 100 contracts, the same trader would pay $65 in commissions to make the trade.
And to be clear, these are commissions for online options trades. If you conduct a trade by phone, the commission could be even higher.
The table below compares options trading platforms based on the cost to buy or sell 10 options contracts.
Options trading fee comparison for 10 contracts
Commission free options trading used to be a pipe dream for investors, but that’s no longer the case with the best platforms to trade options slashing costs to attract and retain accounts. Here’s an options fee comparison when trading 10 contracts for our top picks.
OPTIONS BROKER COMMISSION TO TRADE 10 CONTRACTS
Robinhood $0
TD Ameritrade $6.50
Webull $0
E*Trade $5 – $6.50
TradeStation $5.00 – $6.00
Ally Invest $5
Interactive Brokers $1.50 – $6.50
Tastyworks $10
Options trading fees for exercise and assignment for exercise and assignment
Options brokers sometimes charge fees to buy or sell options, but some also charge fees if you want to exercise an option, or if an option you have sold is assigned.
Exercise fees: Let’s say you own 100 call options on Nike at a strike price of $80. Nike rises to $85 per share by the expiration date, and you decide to exercise your right to buy the stock at $80 per share. A few options trading platforms will charge you a fee to exercise your options and buy the underlying stock.
Assignment fees: Let’s say you sell a covered call on Nike at a strike price of $80. Nike rises to $85 per share by the expiration date, and the owner of the options decides to exercise them, paying you $80 per share for the underlying stock. A few options brokers will charge you an assignment fee for this transaction.
Most of the best options brokers don’t charge these fees anymore. The exception is TradeStation, which charges $14.95 for both options exercise and assignment. If you don’t plan on holding options until their expiration dates, this shouldn’t necessarily be an issue, but it’s still worth keeping in mind.
Options brokers with free options trading
As mentioned before, most of the best options options brokers have commission free options trading, but do charge a small fee per contract traded. Robinhood and Webull are the few free options trading platforms that have 100% free options trading, both a $0 commission and no per contract fees for online trades. Robinhood and Webull also apply this same approach to stocks, ETFs, and cryptocurrency.
Best apps for options trading
All options brokers on this list and most notable stock brokers offer many platforms from which to enact trades, including within a mobile app. Ultimately, the best apps for options trading will differ by user need, but here is a rundown of our picks of the best options brokers based on their app rating.
OPTIONS TRADING APP GOOGLE PLAY STORE RATING (OUT OF 5 STARS) APPLE IOS RATING (OUT OF 5 STARS)
Robinhood 3.8 4.2
TD Ameritrade (thinkorswim app) 3.8 4.7
Webull 4.5 4.7
ETrade 4.3 4.6 TradeStation 4.0 4.6 Ally Invest 4.0 4.7 Interactive Brokers 2.9 3.3 Tastyworks 2.3 2.9 Robinhood, Webull, TD Ameritrade’s thinkorswim, ETrade, Tradestation, and Ally Invest are rated as some of the best investment apps overall by everyday users. But when it comes specifically to the best app to trade options, we think TD Ameritrade’s thinkorswim, Robinhood, and E*Trade are top picks to consider with this narrowed focus. These are the best apps for trading options based on a number of factors, including overall user ratings, options trading fees, simplicity to use, and the overall capabilities of their mobile app compared to full-featured online experiences.
BROKER/ADVISOR BEST FOR COMMISSIONS NEXT STEPS
TD Ameritrade Offer Image
TD Ameritrade
Rating image, 5.0 out of 5 stars.
Traders
$0 online commissions for stocks, ETFs, and options ($0.15-$0.65 per contract)
Open Accountfor TD Ameritrade
Robinhood Offer Image
Robinhood
Rating image, 4.5 out of 5 stars.
Commission free options trading
$0 for stocks, ETFs, options, and cryptocurrencies
Open Accountfor Robinhood
Ally Invest Offer Image
Ally Invest
Rating image, 4.5 out of 5 stars.
Low options trading fees
$0 per options trade, $0.50 per contract
Open Accountfor Ally Invest
ETRADE Offer Image ETRADE
Rating image, 4.5 out of 5 stars.
Options app trading
$0 per options trade, $0.65 per contract
Open Accountfor E*TRADE
TradeStation Offer Image
TradeStation
Rating image, 4.0 out of 5 stars.
Active traders
$0 per options trade, $0.50-$0.60 per contract
Open Accountfor TradeStation
Webull Offer Image
Webull
Rating image, 4.0 out of 5 stars.
Commission free options trading
$0 per trade
Open Accountfor Webull
Interactive Brokers Offer Image
Interactive Brokers
Rating image, 4.5 out of 5 stars.
Low option trading fees
$0 per options trade, $0.25-$0.65 per contract
Read Review
tastyworks Offer Image
tastyworks
Rating image, 4.0 out of 5 stars.
Options-first trading platform
$0 for stocks, $1 per option contract (opening trades only)
best forex trading app for beginners
The best forex brokers for beginners all share three essential qualities.
The first and most important quality is the broker’s status as a well-regulated and highly trusted brand. Second is the provision of a user-friendly web-based platform with a strong variety of educational resources. Third is access to quality and actionable market research.
In our 6th annual review of forex and contract for difference (CFD) brokers, we spent endless hours opening demo accounts, navigating various forex platforms and mobile apps, conducting market research, testing website usability, and watching educational videos and webinars.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65% and 82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What is forex trading?
Forex trading is the process of exchanging one currency for another — known as buying or selling currency pairs — based on prevailing exchange rates from the forex market. The forex market is the largest global market, with nearly $6.59 trillion in currency traded on average per day.
What is a forex broker?
When trading foreign currencies, you use a forex broker (also known as a currency trading broker) to place your trades. When you trade forex, you buy or sell in currency pairs, such as the “EUR / USD” (euro / U.S. dollar). You open an account, deposit funds, then use the broker’s trading platform to buy and sell currency using margin. The forex markets are open 24 hours a day, five days a week.
To learn more about the basics of trading forex, we recommendwe recommend the School of Pipsology alongside the NFA’s Trading Forex booklet.
The Best Forex Brokers for Beginners
ForexBrokers.com 2022 Review
Here’s a summary of the best forex brokers for beginner forex traders.
IG – Best for education, most trusted
AvaTrade – Excellent educational resources
Capital.com – Innovative educational app
eToro – Best copy trading platform
Plus500 – Overall winner for ease of use
CMC Markets – Best web trading platform
TMGM – Comprehensive educational courses
IG Logo
Overall
Summary
Review
Pros/Cons
Best for education, most trusted
Minimum Deposit £250.00
Trust Score 99
Tradeable Symbols (Total) 19537
IG offers a vast selection of educational material in a variety of formats, as well as a dedicated mobile app for education called IG Academy. IG is not just for beginners – it ranked as the best overall broker for our 2022 annual review. Read full review
Pros
Outstanding platforms and tools
Over 19,000 tradeable instruments
Competitive pricing
Cons
No predefined layouts on the flagship web platform
Limited product range on MT4
AvaTrade Logo
Overall
Summary
Review
Pros/Cons
Excellent educational resources
Minimum Deposit $100.00
Trust Score 93
Tradeable Symbols (Total) 1260
AvaTrade is a trusted global brand that offers an extensive selection of trading platforms for forex and CFD traders, as well as exceptional educational content that helped it nab our Best in Class rating for Beginners for our 2022 annual review. Read full review
Pros
AvaOptions app is an excellent forex options mobile trading platform
Offers 44 forex options and over 1,200 CFDs
Cons
Pricing for retail accounts is average, but trails industry leaders
Desktop platform is slow to load, has outdated design
Visit Site open_in_new
Extra-Low Spreads!
(71% of retail investor accounts lose money)
Capital.com Logo
Overall
Summary
Review
Pros/Cons
Innovative educational app
Minimum Deposit $20.00
Trust Score 77
Tradeable Symbols (Total) Over 6,000
Capital.com has a solid array of educational materials that includes articles, videos, and a comprehensive lesson program. It also has a dedicated mobile app for education called Investmate, as well as dozens of educational videos on its YouTube channel. Read full review
Pros
High-quality educational articles and courses
Newsroom-grade research articles
Offers over 400 crypto CFDs
Cons
MetaTrader 5 not available
Respectable range of tradeable symbols, but fewer than industry leaders
Visit Site open_in_new
CFDs on 6,500+ markets
(79.17% of retail investor accounts lose money)
eToro Logo
Overall
Summary
Review
Pros/Cons
Best copy trading platform
Minimum Deposit $10-$200
Trust Score 93
Tradeable Symbols (Total) 3056
eToro offers a comprehensive trading experience with over 3,000 tradeable symbols, and a Learning Academy that features videos, articles, and weekly webinars. eToro’s user-friendly web platform and eToro mobile app are great for casual and beginner investors. Read full review
Pros
Large number of investors to copy
Extensive range of markets to trade
User-friendly platforms and app
Cons
No automated trading strategies
Stops, limits mandatory on trades
Research trails competitors
Plus500 Logo
Overall
Summary
Review
Pros/Cons
Overall winner for ease of use
Minimum Deposit €100
Trust Score 99
Tradeable Symbols (Total) 1896
Plus500 is a trusted global brand that offers access to share trading and a thorough selection of CFDs. Plus500’s simplified trading platform attracts beginners looking for a user-friendly experience, and helped Plus500 earn our top award for Ease of Use in our 2022 annual review. Read full review
Pros
Beginner-friendly web trading platform
Broad selection of CFDs
Cons
Few advanced tools for more active traders
Research and education resources are lacking
CMC Markets Logo
Overall
Summary
Review
Pros/Cons
Best web trading platform
Minimum Deposit $0.00
Trust Score 99
Tradeable Symbols (Total) 11927
CMC Markets delivers a terrific user experience, comprehensive market research, and an excellent mobile app. CMC Markets provides a wealth of educational material for beginners in a variety of formats, including written articles, video updates, podcasts, and live webinars. Read full review
Pros
Low trading costs
Excellent web and mobile platforms
Robust research materials
Cons
Educational offering could be improved
MT4 offering limited to 62 symbols
TMGM Logo
Overall
Summary
Review
Pros/Cons
Comprehensive educational courses
Minimum Deposit $100
Trust Score 79
Tradeable Symbols (Total) 12000
TMGM delivers an impressive educational toolset, with its TMGM Academy standing out for its quizzes and interactive content which we found to be excellent for beginners. TMGM’s educational content also pays close attention to the finer details, such as tracking and offering feedback on your progress. Read full review
Pros
Competitive commission rates on Edge account
Minimum deposit starts at $100 for spread-only or commission-based accounts
TMGM Academy is an impressive educational tool
Cons
MetaTrader 5 (MT5) has not yet launched
Majority of available symbols are segmented on the IRESS platform and not optimized for forex trading
Forex trading platforms education comparison
Taken from our forex broker comparison tool, here’s a comparison of the education features for the best forex brokers for beginners.
Feature IG AvaTrade
Visit Site Capital.com
Visit Site
Has Education – Forex or CFDs Yes Yes Yes
Client Webinars Yes Yes Yes
Client Webinars (Archived) Yes Yes Yes
Videos – Beginner Trading Videos Yes Yes Yes
Videos – Advanced Trading Videos Yes Yes Yes
Investor Dictionary (Glossary) Yes Yes Yes
Is forex trading good for beginners?
Forex trading can be complex and may not be suitable for everyone. Whether forex is good for you will depend on your financial condition, your goals, and how much investing experience you already have as a beginner.
Overall, beginners must exercise caution, especially as the majority of forex traders lose money. Also, leveraged forex trading — whether as a CFD or otherwise — is traded from a margin account, which means it is possible for you to incur a negative balance and lose more than you invest.
Note: If you’re a beginner, start by learning the risks associated with forex trading. Read all the educational materials that online forex brokers provide before trading with live funds.
A free demo account allows you to learn the software. Many beginners start with a small amount of money they can afford to lose, with the goal of establishing a consistent trading record.
Can I teach myself forex trading?
Yes, and the best forex brokers offer a variety of educational materials, such as articles and videos, that make it possible to teach yourself forex trading. While studying up doesn’t guarantee success, it’s an important first step.
Plus500’s simple platform design makes it a good one for learning the fundamentals. Some brokers, like IG, even offer progress tracking and quizzes at the end of each course to test your knowledge as you move through the material.
How do I start trading forex?
Before depositing real money, open a free demo account that lets you use the trading platform and learn how it works. After you learn the software and practice using the virtual account, you can open a live forex trading account and begin with an amount of capital that you can afford to lose.
Forex trading step by step
Choose only regulated brokers to open a live account.
Study free educational material.
Open a free demo account and practice.
Learn to use the trading software.
Develop a trading strategy.
Deposit a small amount of risk capital.
Focus on managing percentage returns.
Only scale when you have a consistent track record.
Is forex trading profitable?
The majority of traders lose money. Therefore, to beat the odds and make money trading forex, you must have a trading strategy that focuses not only on identifying trading opportunities (i.e., signals when to buy or sell) but also calculates the optimum trade size relative to your balance. In addition, the target risk and profit levels should be determined in advance using a stop-loss order and limit.
This way, you have a plan on when to exit a trade, whether at a loss or profit. Because, to be successful in trading, you just need to keep your average losses smaller than your average profit. That’s harder than it sounds, but is the secret to making money trading forex.
How do I choose a forex broker?
It’s crucial to use a forex broker that holds the necessary licenses. Choosing a regulated broker that is permitted to offer services in your country helps you avoid potential scams. Also, by selecting a trusted forex broker that is well-capitalized, you reduce the risk of the broker going bankrupt and losing your deposit.
To select a forex broker, start by looking for brokers that are regulated in your country and any available consumer compensation funds provided as protection against bankruptcy. Next, read full-length forex reviews. Finally, compare your top two choices side by side to decide on a winner.
Pro tip: In addition to trust, other factors to consider include trading costs, range of markets, available platforms, mobile trading apps (see our top picks for forex trading apps), market research and news sources, educational articles, and the quality of customer service that the forex broker provides.
What is the best forex broker for beginners?
If you’re a beginner looking for a thorough selection of educational materials, then IG is the best choice among forex brokers. We’ve also written an extensive guide for the best forex brokers in the U.S. for beginners, in addition to the brokers that support international traders.
Also noteworthy is Plus500 for its trading platform, which is great for beginners thanks to a simple layout that is easy to learn.
How much money do you need to trade forex?
The amount of money you will need to trade forex depends on several factors, including your expected trade sizes, risk threshold per trade, the available margin requirements from the broker (i.e., leverage), and any minimum deposit requirement to open your account.
For example: If you plan to trade one mini lot (10,000 units) worth of the euro currency at a time, and the forex broker offers a maximum of 20:1 leverage, that means you will need at least 5% of the trade value just for the margin, and another 1 euro for every pip you plan on risking when the market moves against your position. (Note: In this case 1 pip is 0.0001 euro worth of currency.)
So in the above example, one standard lot of 10,000 EUR/USD would require at least 500 euros in margin, and if you wanted to risk no more than 200 pips per trade, another 200 euros would need to be available. That means you would need a starting balance of 700 euros to trade forex.
Can I trade forex with $10?
Generally no, because even with the ability to trade micro-lots at most forex brokers, $10 would barely be enough for the margin requirement alone, even if you had access to the highest leverage. The best forex broker for small accounts will offer micro contracts, as well as a low minimum deposit. That said, you still need to consider having enough margin available to open each trade.
For example, with at least $300, a trader could open one micro lot at a time and still have enough available for higher margin requirements, such as in Europe or the U.S. With a single micro-lot, each pip is worth around 10 cents for every $1,000 of currency you trade.
Which forex broker has the lowest minimum deposit?
There are several forex brokers, such as CMC Markets (which is also our pick for the best forex trading platform technology), that advertise a $0.00 minimum deposit, which means you can open a live account and deposit whatever amount you like to start trading.
Note: When deciding how much to start with, keep extra costs in mind, such as wire transfer fees and other transfer-related costs that will depend on your chosen payment method — as well as the collateral (margin) you plan to use for your expected trade sizes.
What are the most popular currency pairs?
The most heavily traded currency pairs by volume all include the U.S. dollar (USD), followed by the euro (EUR), Japanese yen (JPY), Great British Pound (GBP), Australian dollar (AUD), Canadian dollar (CAD), and Swiss Franc (CHF). This is according to the latest Triennial Survey by the Bank for International Settlements (BIS), which found that approximately 88% of all forex trades include the U.S. dollar.
Note: The resulting pairs from these popular currencies are known as the “major pairs” and include the EUR/USD, USD/JPY, GBP/USD, AUD/USD, CAD/USD, CHF/USD, and followed by the Chinese renminbi (CNY), which is the eighth most traded currency, but seventh most traded currency pair when combined with the U.S. dollar (CNY/USD).
Can I get rich by trading forex?
While possible, getting rich by trading forex is rare. Practice and skill are required to make money trading forex. Successful traders strive to make trades that, on average, return larger profits (winners) than losses (losers) over time. Historically speaking, several hedge fund managers have been able to get rich trading forex. For example, George Soros made over £1 billion in profit by short selling the British pound in 1992, in what can be described, if one is prone to understatement, as a large bet.
Which forex brokers accept U.S. or non-U.S. clients?
Forex brokers who hold regulatory status in the U.S. can accept U.S.-based clients. Meanwhile, forex brokers who accept non-U.S. clients will usually need to hold licenses in the countries where their clients reside.
For example, if you reside within the European Union, you will be able to open an account with an EU-regulated broker. If you live in a U.S. state, you will need to open an account with a U.S.-regulated broker. If you’re interested specifically in stock trading, read our guide to best U.S. trading platforms for beginners.
The Best Forex Trading Platforms for Beginners
IG – IG web platform
AvaTrade – AvaTrade WebTrader
Capital.com – Capital.com web platform
eToro – eToro CopyTrader
Plus500 – WebTrader
CMC Markets – Next Generation
TMGM – MetaTrader 4
Conclusion
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