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This beginner friendly guide explores the different options traders have. We discuss if you can trade without a forex broker, explain what a broker is, and compare the top platforms to use for forex trading.
Is it possible to trade forex without a broker?
Yes, although using a broker is the easiest way to speculate on currency fluctuations. Forex trading is essentially exchanging one currency for another and it is not necessary to use a broker for this service. Lots of people use a bureau de change at the airport for example. Other common places you can buy and sell FX are banks and post offices.
While in theory you could use any of the above services, it will be very difficult, expensive, and long winded to use them for trading activities. Many of these services have vastly different rates compared to online brokerage firms. Their spreads are much higher than what you’ll find with a broker, as are commissions and other charges.
Trading forex without a broker exposes you to unnecessary risk and makes the process much longer compared to using an online company. Forex brokers can give you direct access to the market so you’ll get the best prices. You can also use things like a stop loss on a brokerage platform which protects you from big swings in prices.
What is a forex broker?
It’s an online company that allows you to trade the forex market. Forex brokers work in lots of different ways but generally act as an intermediary between you and the interbank market (where banks trade currencies with each other). Most brokers operate online and to access their trading terminals you will need to use a piece of software known as a platform.
A trading platform is what connects you to your brokerage account and facilitates the buying and selling of currencies. Trading platforms come in all different shapes and sizes and the most popular one for forex is MetaTrader 4. When using a forex broker you will be able to trade a broad range of FX pairs, use technical tools, and price charts for analysis.
Platforms can be used on a computer or via a mobile app. There are many different types of brokers. ECN and STP brokers connect you directly to the interbank market so you can have the best prices and fastest execution. Others let you trade forex using CFDs, and most give you the ability to trade using leverage.
Benefits and risks of trading forex without a broker
Although it is possible to trade forex without a broker it is generally not recommended. There are some benefits but there are many more risks and below we have included a few of the key ones:
Benefits
Less chance of falling for online scams or fraud
You don’t need a bank account and can make all transactions using cash
Risks
You won’t get the best exchanges rates unless you use a broker
Spreads and commissions will be much higher
By not using a broker you won’t have access to safety tools like stop losses
No access to leverage
It will be difficult to capitalise on short term price movements unless you use a broker
Which broker should I use?
Now that you know the benefits of using a broker compared to not using one you may be ready to start trading. You can click on any of the links below to register an account with some of the best forex brokers around and start trading in just a few minutes.
LonghornFX offers high-leverage trading on a wide variety of assets. Trading with leverage carries a degree of risk which may result in losing more than your investments. Clients should practise risk management to protect themselves from losing more than they can afford when trading with leverage.
Join the Social Trading revolution. Connect with other traders, discuss trading strategies, and use our patented CopyTrader
eToro is the world’s leading social trading platform, offering a wide array of tools to invest in the capital markets
Largest number of currency pairs to trade
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
Cryptoassets are highly volatile unregulated investment products. No EU investor protection.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
EagleFX offers leveraged trading on a range of assets within its platform. CFD and Spot Forex trading do carry a degree of risk which may result in you losing more than your initial investment. Please ensure you fully understand the risks involved with leveraged trading and ensure this is not detrimental to your personal or institution's financial well being.
Take a position on major global indices, including US Wall St 30 and France 40
Low spreads and accurate pricing reflecting the underlying market
Comprehensive analysis and new for better decision making
Payment Methods
Bank Wire, Check, Credit Card
Full regulations list:
CFTC, FCA, IIROC, MAS, NFA
Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest.
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the…
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