Most Trusted Brokers
Choosing one of the most trusted brokers when trading online is important to protect yourself from bad actors. A large number of scam forex, ECN, binary options and cryptocurrency brokers have cropped up and cannot be trusted. Many fraudulent brokers also operate in the stocks and shares markets. Traders that invest their money with a non-trusted online broker risk losing their investment capital completely.
In this 2023 guide, we will look at why it is always best to choose a top trusted broker, before exploring some of the top things to look out for. We have also compiled a list of our recommended best-trusted brokers below.
Most Trusted Brokers
#1 - Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
"Forex.com is an excellent broker for active forex traders with over 80 currency pairs, tight spreads, low commissions and powerful charting platforms for day traders. "
- DayTrading Review Team
- Instruments: Forex, Spot Metals
- Regulator: NFA, CFTC
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
- Min. Deposit: $100
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Pros
- Respected and trusted broker overseen by tier-one regulators including the US SEC
- Low minimum deposit of $100
- Free demo account for prospective traders
Cons
- Investment offering varies between countries
- $15 monthly inactivity fee
- No copy trading platform
#2 - Interactive Brokers
Interactive Brokers is a leading global brokerage that provides access to a comprehensive offering of stocks as well as forex, futures, metals, bonds and cryptos. The firm has over 40 years experience in the online trading industry and is heavily regulated by SEC, FCA, IIROC, and SFC. Day traders can use the proprietary Trader Workstation and can access powerful tools and data feeds as well as comprehensive educational resources.
"Experienced day traders seeking a regulated broker with sophisticated trading software and very low fees should look at IB. Their range of stocks also can't be beaten."
- DayTrading Review Team
- Instruments: CFD, Forex, Stocks, Crypto, Futures, Options, Commodities
- Regulator: SEC, FCA, IIROC, SFC
- Platforms: AlgoTrader, OmniTrader, eSignal, TradingCentral
- Min. Deposit: $0
- Min. Trade: $100
- Leverage: 1:50
Pros
- You have a reliable real-time market data feed, that rarely goes offline
- Low commissions and tight spreads
- Direct market access, including to the FTSE 100 index, the CAC 40 and Germany’s DAX 40
Cons
- Mediocre customer support
- Due to the pricing structure, this firm can be more expensive for aggressive traders who trade over $100,000 shares a day
- The TWS platform falls short in terms of technical charting
#3 - NinjaTrader
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
"NinjaTrader is well-positioned to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features with custom indicators. "
- DayTrading Review Team
- Instruments: Forex, Stocks, Options, Commodities, Futures, Crypto
- Regulator: NFA, CFTC
- Platforms: NinjaTrader Futures, eSignal
- Min. Deposit: $50
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Pros
- Low fees with $50 day trading margins & commissions from $.09 per micro contract
- Easy account opening that takes a few minutes
- Thousands of add-ons and applications from developers in 150+ countries
Cons
- Non forex and futures trading requires signing up with partner brokers
- Premium platform tools come with an extra charge
- Withdrawal fee on some funding methods
#4 - eToro USA
eToro is a social investing platform that offers stocks, ETFs, options, and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, this brand is highly respected. eToro securities trading is offered by eToro USA Securities, Inc.
"eToro is a top pick for traders looking for social investing and copy trading. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer traders."
- DayTrading Review Team
- Instruments: Stocks, Options, ETFs, Crypto
- Regulator: SEC, FINRA
- Platforms: Own
- Min. Deposit: $10
- Min. Trade: $10
Pros
- The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
- eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
- The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
Cons
- Average fees may cut into the profit margins of day traders
- Narrower range of instruments than some competitors
- No MetaTrader 4 platform integration
#5 - OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
"OANDA is an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
- DayTrading Review Team
- Instruments: Forex, Crypto
- Regulator: NFA, CFTC
- Platforms: MT4, TradingView, AutoChartist
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:50
Pros
- Transparent pricing structure with no hidden charges
- Feature-rich app with 50 indicators, 11 drawing tools and 9 charting styles
- Wide selection of instruments including 68 forex pairs
Cons
- Customer support not available on the weekend
Why It Is Important To Choose A Trusted Broker
Sadly, in the world of online trading, scams and dodgy brokers can be all too common. Many untrustworthy brokers promote themselves online via social media, offering fake endorsements and promises of huge returns.
Fraudsters often allow traders to make an initial profit, encouraging further investment, before suspending their account and stealing the trader’s money.
In another type of scam, known as a ‘bucket shop’, criminals create an entire fake platform, where (unbeknownst to them) customers can only trade with other users or the site itself.
This creates impossible conditions for the trader, while the platform itself makes a profit.
In short, by not using one of the most trusted brokers, traders put themselves at significant risk of losing all their investment capital.
In addition to straightforward scams, non-trusted online brokers may implement practices that work against the trader, while the most trusted brokers always allow their clients to trade on a level playing field.
For instance, some fraudulent forex brokers move quoted rates arbitrarily to trigger stop orders, allowing them to make more money from commission.
Other brokers may have higher spreads than they first advertise, perhaps cleverly concealing a floating spread system. To protect your investments then, it is best to choose one of the top trusted brokers.
What To Look For In A Trusted Broker
Regulation
When choosing a trusted online broker, always check where the company is registered and which organisation it is licensed by.
Each country has its own financial regulatory body that upholds the set of laws that brokers must obey. For instance, the FINRA is responsible for regulating US stockbrokers, whereas in the UK firms must be registered with the FCA. Other key bodies include CySEC (Cyprus), the FSC (Mauritius) and the IFSC (Belize).
The laws governing financial practice vary across the world.
For example, in the UK and EU, binary options can only be sold to professional traders. Similarly, CFDs are banned in the US.
Additionally, trading certain assets (like binary options) may be regulated by a gambling body instead of a financial organisation. Familiarise yourself with your country’s rules and regulations to ensure that you remain within the law.
The most trusted brokers will clearly advertise the regulatory bodies that they are registered with.
Some organisations, like FINRA and the FCA, have created a searchable online list of trusted brokers, as scammers may make false claims about regulation.
Occasionally, dishonest online brokers say they are regulated by non-existent bodies, so make sure you fact-check any dubious organisations!
Not all countries impose equally strict rules on stock brokers.
In particular, offshore brokers (based in territories like Seychelles, British Virgin Islands or St. Vincent & the Grenadines) can be subject to weaker regulation.
Using an offshore broker is perfectly legal but you will not be protected if something goes awry. However, many offshore brokers can be trusted: there are several legitimate reasons (for example, tax purposes) why a company may be based in a particular country.
That being said, for your peace of mind, it may be worth using a trusted on-shore broker for online trading. At the very least, approach offshore brokers with caution and be sure to do some extra research.
Company History & Trader Reviews
Doing a quick internet search on a firm’s history should help you pick out the best brokers. Generally speaking, the most trusted brokers will have been trading for longer than a year.
There are also online blacklists of dodgy firms; Traders Union regularly updates its list of scam forex brokers.
Blacklistedbrokers.com also keeps a record of dodgy forex and binary options brokers. Additionally, FINRA’s BrokerCheck tool lists outstanding legal actions against a broker.
To find the top trusted brokers, it can be worth reading customer reviews online.
A few disgruntled online reviews, however, do not automatically mean that a broker is a scam.
A significant proportion of traders make a loss, perhaps due to inexperience in the market, and this does not necessarily mean that the broker is at fault.
Nonetheless, pay serious attention to reviews alleging that customers couldn’t withdraw funds from their accounts.
Finally, check that a broker’s site has an SSL certificate, which will help to avoid malware and cyber threats.
Customer Support
The most trusted brokers generally have good customer support.
A well-run customer service department indicates that a broker cares about their clients’ trading experience.
One common red flag for dishonest brokers is that they have customer support that is hard to contact or non-existent.
It is well worth reading trusted broker reviews and rankings to find stock brokers with reputable customer service departments.
There are also several industry prizes (for example, the Broker Of The Year award from DayTrading) given to trusted brokers with excellent customer service.
Good customer service becomes important when things go wrong, so it can be well worth picking one of the most trustworthy brokers to look after your capital.
Advertising
Dishonest brokers tend to advertise heavily on social media or online. Other fraudsters promote their platform using fake accounts on messaging apps.
Unlike the most trusted brokers, their ads tend to focus on ‘getting rich quick’ and may emphasise flashy or expensive products.
Dodgy brokers’ adverts tend to ignore the risks of online trading and fake endorsements by celebrities or economic ‘experts’ are common.
Forex trading, binary options trading and cryptocurrency trading are most commonly affected by scams.
The best-trusted brokers will never cold call potential clients. Any broker asking you to make an immediate payment is also suspicious, so be wary.
Transparent Pricing & Deposits
The top trusted brokers have their pricing details available online.
All information concerning spreads, fees and withdrawals should be easily accessible and clearly laid out. If a site advertises very low spreads, be careful: some brokers use a variable fee system, with spreads actually much higher than claimed initially.
Furthermore, dishonest brokers may implement extra ‘hidden’ charges on withdrawals. To avoid paying these hidden fees, check the small print on a broker’s website – if the costs do not match up to what is advertised, the broker may not be trustworthy.
Reading customer or professional broker reviews can also help you to identify disingenuous brokerage firms.
Additionally, the most trusted brokers will not require suspiciously high minimum deposits. While some accounts with high leverage aimed at professional traders may require large minimum deposits, those aimed at beginner traders should be more affordable. Beware of brokers offering excessively generous deposit bonuses as a reward for signing up quickly.
Negative Balance Protection
Many of the more legitimate and trusted brokers implement negative balance protection (NBP), which means that losses cannot exceed the funds held in a trader’s account.
It is often applied to leveraged products like CFDs. NBP makes it impossible to owe a broker money, as this can be a stressful and unhappy situation.
However, it is still possible to lose all of your capital. Many regulatory bodies, including the FCA, require that brokers have negative balance protection.
Reputable Strategies & Tools
The most trusted brokers often use well-known trading platforms like MT5, MT4, LIBERTEX, QUIK, TRANSAQ, CQG or ROX.
If a broker uses software that you have not heard of, Google the name to check that it is legitimate. Additionally, a broker that focuses heavily on PAMM (Percentage Allocation Management Module) accounts may be untrustworthy, though many legitimate firms offer such services.
Final Word On The Most Trusted Brokers
Using one of the most trusted brokers will allow you to trade with confidence and peace of mind, though risks are still present.
Too many traders each year are scammed by dodgy firms, losing large amounts of money in the process. However, by choosing a trusted broker, you can protect your capital and trade with peace of mind.
FAQs
Why Should I Choose One Of The Most Trusted Brokers?
Choosing a trusted broker will help you avoid online scams and look after your capital. By using one of the best-trusted brokers, you will ensure that trading is fair and equitable.
How Can I Tell If a Broker Is Trusted Or Not?
The most trusted brokers will often be regulated, have good, contactable customer service and be well-reviewed online. Beware of brokers that promise massive rewards without any risks.
Should I Choose A Regulated Broker?
Regulated brokers have to obey strict legal requirements. By choosing a trusted regulated broker, your earnings will be protected if things go wrong.
Are There Trusted Binary Options Or Forex Brokers?
Yes, there are several trusted binary options and forex brokers. However, scams are especially prevalent in binary options and forex trading, so traders should be careful. Follow the guidance above to look out for warning signs.
Who Are Some Of The Top Most Trusted Brokers?
The top trusted brokers will likely be those that are regulated in your territory. For a full list of regulated firms in your area, see here.