How to choose a forex broker: what actually matters
Forex and CFD brokers look similar on the surface: tight spreads, fast execution, a familiar platform and a welcome offer. The differences that decide whether your money is safe sit underneath the marketing. This guide explains how we assess brokers on BrokerBazaar and what to check before you fund an account.
Start with the regulator, not the spread
A broker is only as trustworthy as the licence it trades under. Tier-one regulators such as the UK FCA, Australia's ASIC, Cyprus' CySEC and the US CFTC/NFA require segregated client money, minimum capital, regular audits and a formal complaints route. Offshore licences from Seychelles, Vanuatu, Mauritius or the Cayman Islands usually offer higher leverage but far weaker protection if the broker fails.
Many groups hold several licences and onboard you under whichever entity allows the products you ask for. Always confirm which legal entity your account agreement names and check that licence number directly on the regulator's register. Our regulation explorer lists the registers and what each authority actually guarantees.
Understand the total cost of trading
Advertised spreads are typically the best case on EUR/USD during liquid hours. The realistic comparison is the all-in cost: average spread plus commission per lot, overnight swap rates on the pairs you hold, deposit and withdrawal fees, inactivity charges and currency conversion on funding. A raw-spread account with a $7 round-turn commission is often cheaper for active traders than a commission-free account with a 1.2 pip spread, while the reverse is true for occasional position traders.
We show both headline and typical spreads where the broker publishes them, and our live spread comparison tracks how those figures move through the trading day.
Execution model, platforms and account types
Market-maker brokers take the other side of your trade; ECN and STP brokers pass it to liquidity providers. Neither model is inherently bad, but the model should match your style. Scalpers and algorithmic traders need low latency, no dealing-desk requotes and clear rules on expert advisors. Swing traders care more about swap-free options, guaranteed stop losses and negative balance protection.
Check which platforms are offered (MetaTrader 4 and 5, cTrader, TradingView integration or a proprietary app), whether demo accounts expire, minimum deposits, base currencies, and how quickly withdrawals are actually processed according to trader reviews.
How BrokerBazaar rates brokers
Every broker profile on this site is scored on regulation and licence quality, trading costs, platform depth, funding and withdrawal reliability, education and support, and the volume and sentiment of verified trader reviews. The score is an editorial assessment produced by our research team using published broker data and regulator registers. It is not an aggregate user rating and it is not a recommendation to trade.
Brokers can pay for listings, promotions and Launchpad placements. Paid placements are labelled and never change the underlying score. You can read the full scoring methodology and how we make money on the pages linked below.
Frequently asked questions
Risk warning. Trading and investing involve risk and you may lose money. Nothing on this page is personal financial advice. Leveraged forex and CFD trading carries a high risk of losing money rapidly. A large majority of retail accounts lose money trading CFDs. Only trade with capital you can afford to lose.
Independence. BrokerBazaar is not owned by any broker. We earn from subscriptions, listings, advertising and sponsorship, not from broker deposit or trading commissions. Paid placements are labelled and never influence our editorial scores. How we make money.