Comparing the best brokers is a difficult task that requires time and often experience and knowledge. Adhering to each of the criteria that must be evaluated when finding the ideal broker is not easy, which is why we have developed this online broker comparison tool . With it, you can easily compare stockbrokers, securities brokers, cryptocurrencies, and many other instruments.
Compare brokers for online trading
Online trading is an activity that attracts a growing community for various reasons, but they all revolve around a common idea: the dream of obtaining large financial gains quickly and easily. Trading with brokers is the tangible opportunity that bridges the gap between the reality of many traders—a profound lack of knowledge about stock market investments—and the financial markets with their plethora of financial instruments.
But are all brokers equally good? Do they offer the same services and investment guarantees? Are there certain precautions to take to minimize the chances of falling victim to a scam? What makes one broker the best online broker?
In our online broker comparison, we’ll detail the key factors that allow us to objectively identify a broker. We’ll also provide some tips to help you choose a trading platform that suits your level of expertise, your assets, and your investment strategy.
What is a runner?
Before going into a technical explanation, we think it’s very important to refocus the discussion on the main notion of this online broker comparison : what is a broker?
A forex broker, or online broker, is a licensed intermediary that connects retail currency traders to the foreign exchange market. In exchange for easy access and a user-friendly interface for placing real-time orders, the broker receives compensation primarily through brokerage fees, mainly in the form of commissions (or spreads).
This online broker comparison we’re about to propose refers by default to a specific category of broker: CFD brokers. The essence of this intermediary lies in the concept that it operates on the basis of Contracts for Difference (CFDs).
In short, it’s a particular type of trading that allows traders to speculate on various assets—stocks, currencies, commodities, etc.—and trade them simply on the upward or downward trends of their prices on the stock exchange.
A CFD broker does not physically buy the products. They are what is called a market maker. They reflect the financial markets in real time.
An online broker uses specialized software to offer clients an optimized interface and infrastructure for web trading. MetaTrader—with its multiple versions: MetaTrader 4, MetaTrader 5, MetaTrader WebTrader, and MetaTrader Supreme Edition—is currently the leading provider of online trading interfaces in the market.
The software is both flexible and a battery of tools geared towards online trading: dynamic charts, automated trading robot, technical analysis, personalized profile for efficient portfolio management.
Now that we know what a runner is, let’s move on to the next step: the criteria to pay attention to when choosing the best runner.
Broker account comparison – How to select the best broker?
There are a number of important factors to consider when choosing your trading broker. We’ve compiled a comprehensive list of the components we believe are relevant and that meet the expectations of the vast majority of traders. We’ll explain, point by point, why it’s essential to focus on them before opening a trading account.
A regulated broker
In our opinion, the first guarantee is to be sure. Is my broker regulated? If so, it means they have received certifications from financial market regulatory authorities. This could be by geographic area, like the Cyprus Securities and Exchange Commission (CySEC), which oversees much of Europe, or by country, as in the case of the Financial Conduct Authority (FCA), which monitors and regulates every broker in the UK.
While it’s essential that the broker you trade with is regulated, this doesn’t offer 100% protection against potentially dishonest traders. For example, many experts tend to recommend brokers based in Cyprus, and therefore regulated by CySEC, because Cypriot laws are more lenient than French ones. If you live in the UK and want maximum protection, always choose a broker authorized by the FCA.
A reliable, high-performance interface
Investors using CFD brokers are mostly novice traders eager to make a profit. Therefore, they will naturally gravitate towards trading platforms that favor short-term investment strategies like scalping . Consequently, to achieve convincing results, it is essential to use responsive, dynamic, and particularly reliable trading software.
Taking a few minutes to familiarize yourself with the software that manages the trader interface—client area, order placement, charts, advanced analysis, etc.—can be a reasonable approach. At the moment, we can identify two main programs.
- the MetaTrader suite, which is widely represented among CFD brokers
- ProRealTime, which is carving out a niche for itself in the online stock market offered by brokers.
If neither of these two infrastructures appears in your search, it’s likely that your operations aren’t very secure. Trading platforms are never the preferred solution. Unless, perhaps, you’re the designer and confident in your coding and prediction algorithm.
The speed of order execution is essential to maximizing your chances of winning, especially when managing money in the short term. The trading platform must accurately reflect current prices.
One more little trick. Any website that wants to be the best forex broker, for example, offers a powerful mobile app that provides identical capabilities to the browser version. Ideally, all mobile devices should support it, whether Android or iOS.
Trade rates
Being profitable in online trading isn’t solely about the accuracy of your stock market investments. Transaction costs play a significant role in the overall performance of your asset portfolio. There are two types of fees: brokerage fees and management fees.
The broker’s fees include all expenses incurred by the broker in managing your positions:
- The margins or commissions are calculated in pips. They represent a percentage of the profit, taken from the difference between the purchase price at the opening of the position and the sale price at its closing. An attractive broker focuses its margins on short-term currency investments and takes no commission on long positions.
- the costs associated with your strategic options, such as overnight or overnight fees when a position remains open from one session to the next
Management fees cover everything else. Everything related to managing your trading account and your portfolio of financial instruments:
- Any fees for deposits or withdrawals. Favor brokers who contribute to incoming and outgoing transactions.
- currency exchange fees, which can sometimes reach 3%.
- Inactivity fees are charged when a portfolio remains inactive for a certain period of time, often 90 days, with a fixed withdrawal of the remaining capital in the account.
Supported investment strategies
Not all investors are the same. Our stress tolerance, ambitions, knowledge, and financial goals vary. That’s why there are almost as many investment strategies as there are traders. Therefore, when searching for the best broker, you should be confident in the opportunities available to you.
Some online brokers allow short-term investments such as
scalping
or
day trading
, which refers to traders who view and manage their portfolios daily. Others prohibit these practices to create an environment where
swing trading
is central, meaning medium- to long-term positions, as with a stock CFD broker.
Security of funds
This relates to the reliability of a trading platform. In the UK, the FCA requires that investor funds be guaranteed by an independent bank in order to be certified. This is called segregation of funds. In other words, if the broker goes bankrupt, investors are guaranteed to recover all or part of their capital. This guarantee is usually a minimum amount with a maximum limit. It is a serious guarantee that should not be overlooked.
For example, XTB has established a segregation of funds in partnership with BNP Paribas bank with a maximum allocation per operator of 22,000 euros.
Type of business account
Not everyone has the same level of stock trading knowledge. Therefore, not everyone has the same needs in terms of analytical tools or access to specific products. One point to consider is a multiple options trading account.
A demo account is a positive sign from a broker, as it allows you to test their trading platform under real-world conditions, free of charge. It’s an excellent opportunity, especially for beginners, to experience the realities of the trading markets, the true potential of an investment portfolio, and the tools needed to achieve their goals.
A CFD broker can be rejected at different access levels:
- starting with analysis and a limited number of financial instruments that meet the basic needs of traders with limited knowledge
- possibly an intermediate account to expand the catalog, the possibilities of actions and the analysis at the same time
- A Pro or Premium account with adjusted brokerage and administration fees and other benefits such as a personal manager
The management tools to consider also include the leverage effect, which can be customized, and the types of instruments available: currency pairs, stocks, commodities, stock indices, cryptocurrencies, and ETFs. The wider the selection, the more precisely you can customize your portfolio; or choose a particular type of broker focused on currencies or cryptocurrencies, for example.
Training and support
We believe the best broker should offer high-quality educational and technical support. Ideally, a novice trader should have access to a set of training materials that help them understand the world of finance as it applies to financial markets. We’ve already mentioned the pivotal role of the demo account. These materials can be based on different formats, such as live trading, webinars, tutorials, expert blog articles, general FAQs, and explanations of forex market news. As the trader progresses, new modules become available to improve trading performance. Support should be progressive, even for experienced or professional investors.
Customer service also plays a vital role, as transactions take place in financial markets around the world over extended periods. Advisors must be knowledgeable, attentive, and available in multiple languages. For example, customer support via live chat, email, and telephone are good examples of this.
Profitability and accessibility
The last criterion is a bit more anecdotal. It turns out that many analysts tend to encourage traders to play it safe, protecting their capital by never investing more than 5% of their funds per position. Therefore, approach a broker with minimum order thresholds that adhere to this limit.
Find out as much as possible about the financial performance of the broker you’re interested in. Remember that almost 70% of portfolios fail because online trading is a risky financial activity. Favor CFD brokers with a minimum return of 75%. The higher and more realistic this return, the more a tailored strategy can generate significant profits.
Comparison of online brokers from AtoZ Markets
Having established this comprehensive list of basic criteria for determining the best broker, here is our list of the 3 most competitive brokers in the current market: eToro, Markets.com, and Capital.com. Let’s look at their main features.
eToro
The main advantages
- social trading and its copy trading tools: CopyTrader and CopyPortfolio
- low brokerage fees
- Training course
eToro has often been cited as a leading example among brokers for years. It is one of the oldest online brokers for the general public. It is recognized as being particularly suitable for novice traders due to its progressive training program. eToro is a pioneer and leader in social trading. The broker has developed technological tools in line with FinTech to bring the performance of the most popular investors to the largest possible audience through CopyTrader, which automatically clones the strategies of selected traders, and CopyPortfolio, which consolidates the entire portfolio with a news feed and a sharing platform.
The catalog of financial instruments is quite extensive – currencies, cryptocurrencies, stocks and stock market indices – with fairly limited costs.
Markets.com
The main advantages:
- Regulated
- the quality of customer service
- minimum deposit of 10 euros
The European broker has continued to grow and has become one of those with the most significant global offering. This is evident in the various jurisdictions from which it operates, the main ones being the United Kingdom and Cyprus.
Like other brokers such as eToro or XTB, Markets.com has taken advantage of the availability of cash shares, which can be traded through one of its subsidiaries. In addition, they offer a wide range of assets, with thousands of contracts available for trading.
One particularly interesting feature of this broker is its great flexibility for trading in the stock markets, as you can buy individual shares on European markets without having to pay a minimum trading commission. The main commission is included in the spread, which is a boon for traders, especially those with limited capital who can’t buy large blocks of shares.
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Capital.com
The main advantages
- application with learning for beginners;
- extremely small minimum deposit of $20.
- an efficient customer service
- reliability and financial security
Capital.com is one of the best brokers offering the ability to trade a wide variety of assets: stocks, commodities, cryptocurrencies, and indices in the form of CFDs. Trades are commission-free and the spread is minimal.
For example, the spread for EUR/USD and AUD/USD is only 0.6 pips, while for GBP/USD and EUR/GBP it is 0.8 pips. With such a low spread and no trading commissions, we can conclude that trading on Capital.com is extremely profitable.
When it comes to forex, it’s hard to find a currency pair that isn’t available on Capital.com. It’s especially interesting that you can find rare and volatile pairs here.
It’s very easy to start trading with Capital.com, as the minimum deposit is only $20 (such low requirements are rarely found among Forex brokers). You can deposit funds using a credit card, bank transfer, or e-wallet. The broker is authorized by the UK’s FCA, which confirms its complete security and reliability.
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To complete our comparison of online brokers
It is worth mentioning a few more names to cover the entire sector:
- XTB
- AvaTrade
- Company markets
Comparison of broker accounts – conclusion
If you want to invest from your mobile device, make sure you choose a mobile trading platform that allows you to trade from any device. On our online broker comparison page, we list the different trading platforms available from each broker.
Finally, you should know that all the brokers you’ll find in our broker account comparison are regulated by reputable organizations like CySEC and the Financial Conduct Authority. Losing money investing with unregulated brokers is something you should always avoid.
A key factor that affects all traders is trading fees. Pay close attention to this when comparing stockbrokers. Fees can vary depending on the financial instrument, so if you want to invest in the stock market, for example, you should ensure that the spreads are competitive.
Remember that trading CFDs involves risk due to leverage. Contracts for difference are complex and difficult to understand. Check each broker’s risk warning to find out the percentage of retail clients who lose money rapidly when trading with them.