Everything you need to trade forex with confidence — from choosing your first broker to advanced risk management. Written by traders, for traders.
A complete step-by-step framework for evaluating any forex broker — from checking regulation to testing withdrawals before you commit real money.
Choosing the right forex broker is the single most important decision you'll make as a trader. The wrong choice can cost you money through wide spreads, slow withdrawals, or in the worst case — a broker that doesn't hold your funds securely.
Step 1: Always verify regulation first. Before anything else, check the broker's license number on the official regulator's website (FCA, CySEC, ASIC, FSCA). Do not rely on the broker's own claims — go directly to the registry.
Step 2: Check trading costs. Compare the spread on EUR/USD during the London session (8am–12pm GMT). A standard account spread below 1.0 pip is competitive. Raw ECN accounts should offer 0.0–0.3 pips plus a fixed commission.
Step 3: Test the withdrawal process. Open a demo or small live account and make a small withdrawal before depositing real capital. The speed and ease of this process tells you everything you need to know about how a broker operates.
Step 4: Evaluate the platform. MetaTrader 4 and 5 are industry standards. Check that the mobile app works on your device, and that the charting tools suit your trading style.
Regulation is the single most important factor when evaluating a forex broker. A regulated broker must segregate client funds, maintain minimum capital requirements, and submit to regular audits.
Tier-1 Regulators (strongest client protection):
Tier-2 Regulators (lighter touch, often offshore):
Red flags to watch for: No license number displayed, license from unknown jurisdiction only, registration vs authorisation (big difference), or inability to verify the license on the official registry website.
ECN (Electronic Communication Network) brokers route your orders directly to the interbank market. They charge a fixed commission per lot but offer the tightest raw spreads — often 0.0 pips on major pairs.
Market Maker (MM) brokers create their own internal market. They profit from the spread rather than commissions, which means wider spreads but no separate commission. They can also trade against you — though reputable regulated market makers don't exploit this.
When to choose ECN:
When a Market Maker is fine:
Among our reviewed brokers: DooPrime and CXM Direct are pure ECN. Exness offers both STP/ECN and standard accounts. XM operates as a market maker with a zero-spread account option.
What is a spread, how is it calculated, and what's considered a competitive spread for EUR/USD, GBP/USD, and other major pairs?
How leverage amplifies both profits and losses, how margin calls work, and how to use leverage responsibly to protect your capital.
The 1% risk rule, position sizing formulas, stop-loss placement, and how to survive a losing streak without blowing your account.
How to copy experienced traders automatically, which brokers offer copy trading, what to look for in a signal provider, and the risks involved.
Payment methods, processing times, fees, and how to avoid getting caught out by slow withdrawals or hidden charges when moving money.
What is forex, how currency pairs work, what moves the market, how to read a chart, and how to open your first trade — step by step.
MetaTrader 4 (MT4) remains the most widely-used retail forex platform in the world despite being released in 2005. Its longevity is due to a massive library of expert advisors (EAs), indicators, and scripts, plus near-universal broker support.
MetaTrader 5 (MT5) is the newer version with more timeframes (21 vs 9), a built-in economic calendar, depth of market (DOM), and support for more asset classes including stocks and futures. However, MT5 EAs are not compatible with MT4.
Choose MT4 if:
Choose MT5 if:
Among our reviewed brokers: all 8 support MT5. Headway, Ultima Market, and TradingPro are MT5-only. Exness, XM, JustMarkets, DooPrime, and CXM Direct support both.
Not all broker reviews are independent. Many review sites receive payment from brokers in exchange for higher rankings — a practice that is rarely disclosed. Here's how to spot the difference.
Signs of an independent review:
Red flags in broker reviews:
At FXStations, all reviews are based on live account testing. We publish our scoring methodology in full on our About page.