Best Forex Brokers for Swing Trading
Swing trading is one of the oldest forex trading strategies used by traders. It has gained immense popularity due to its flexibility and potential for substantial profits. When used alongside the right risk-management strategies, swing trading can help a trader grow their trading account. However, selecting the right forex broker is also crucial to excel in swing trading. The broker's trading platforms, fees, regulations, and overall trading environment can significantly impact your success as a swing trader. In this guide, we will look at some of the best forex brokers for swing trading.
What is Swing Trading?
Before delving into the best Forex brokers for swing trading, let's briefly understand what swing trading is. Swing trading is a medium-term trading strategy that aims to capture price swings in the market. In day trading positions are typically held for a few hours. However, swing traders hold positions for several days or even weeks. The key to successful swing trading lies in identifying trends and entering trades at strategic points. This is usually fitting when the market is about to reverse. This strategy requires a combination of technical and fundamental analysis to make informed decisions. As such, traders utilise a plethora of indicators including moving averages, ease of movement, and RSI, among others. So, what are some of the best forex brokers for swing trading? Let’s take a look.
Starting out our list is a globally recognised forex broker, Forex.com. This broker is a globally recognized broker regulated by several reputable authorities around the world. It operates under the supervision of the NFA in the USA, the FCA in the UK, the ASIC in Australia, the CySEC in Cyprus, and the CIRO in Canada. Evidently, this is one of the most heavily regulated brokers in the market.
Notably, Forex.com supports a variety of trading strategies that traders can use, including swing trading. This broker even goes a step further and provides its traders with some educational material to introduce them to this strategy. While it is just a brief lesson, it provides traders with a good place to start if they want to adopt this strategy.
Looking at the trading instruments, there is something for everyone on this broker site. Traders outside the US have access to CFDs on forex, commodities, indices, stocks, cryptocurrencies, and precious metals. In contrast, traders in the US can trade forex currency pairs, stocks, gold and silver, and futures and futures options. The trading platforms available to use include MetaTrader 4, MetaTrader 5, TradingView and Forex.com Trader.
Further, the trading fees on this broker site are reasonably low for most traders. Forex.com’s standard account features spreads that start from as low as 0.8 pips with no commission. The commission account has spreads from 0.0 pips plus a commission of $5 per 100k traded. The DMA account has spreads from 0.0 pips plus a commission depending on the trading volume. The raw account accessible to US traders has zero spreads plus a commission of $7 per $100k traded.
77.1% of retail investor accounts lose money when trading CFDs with this provider.
Pepperstone is another well-regulated broker that supports swing trading. This broker not only supports the strategy but also offers traders an introductory lesson on it. This is a valued resource for traders who are just starting their journey. It is also valuable for existing traders who want to start using this strategy in their trading.
Notably, Pepperstone also features a plethora of market products available for investors to trade. Specifically, Pepperstone allows people to trade CFDs on forex, stocks, cryptocurrencies, indices, commodities, and ETFs. In total, the broker site features over 1,200 different market instruments. There are four world-class trading platforms available to use which include MetaTrader 4, MetaTrader 5, cTrader, and TradingView.
Further, the spreads offered by this broker are reasonably low and affordable for most traders. The standard account offered by this broker features spreads as low as 1.0 pips with no commission paid. On the other hand, the razor account has spreads as low as 0.0 pips plus a commission depending on the platform used. When using MT4, MT5, and TradingView, the commission is $3.5 per side per lot. When using cTrader, the commission sits at $3 per side per lot.
Of course, we have to mention the regulations of this broker. Luckily, it has regulatory licenses from a number of institutions around the world. These include the FCA in the UK, the ASIC in Australia, the CySEC in Cyprus, and the CMA in Kenya, among others.
75.5% of retail CFD accounts lose money
FP Markets features over 10,000 different assets that traders can invest in. These include forex currency pairs alongside CFDs on ETFs, cryptocurrencies, indices, commodities, bonds, metals, and shares. These market products are available to trade on various trading platforms which include MetaTrader 4, MetaTrader 5, cTrader, and Iress.
Positively, FP Markets gives traders the freedom to use a variety of trading strategies in the markets. With this broker, traders can use swing trading alongside a plethora of other trading strategies like scalping. Better yet, FP Markets provides its traders with a number of educational materials all about swing trading. This ranges from basic introductory lessons all the way to more complex content.
The spreads involved when investing with this broker site are market-standard and relatively low. The standard account of FP Markets has spreads from as low as 1.0 pips with no commission required. In comparison, the raw account has spreads as low as 0.0 pips plus a commission of $3 per side per lot.
Now let’s see how this company’s activities are supervised. This broker is under the regulation of two of the best regulators in the market. These include the CySEC and the ASIC. On top of that, it has regulations by the FSCA in South Africa and the FSA in St. Vincent and the Grenadines.
71.23% of retail CFD accounts lose money
Next up is XTB, another broker that supports swing trading. This broker has long been known for its deep collection of educational materials. Well, XTB offers its traders an introductory lesson to swing trading in order to give them an edge in the market. Traders can use this trading strategy and others on a variety of global markets.
On the XTB trading site, traders have access to a wide range of market instruments totalling over 5,500 different assets. These include CFDs on forex, indices, stocks, commodities, ETFs, and cryptocurrencies. There is plenty of opportunity to diversify one’s portfolio on this broker site. However, the only trading platform available for people to use is the in-house-built, xStation 5.
On a positive note, this broker offers some of the lowest spreads in the market today. The spreads start from as low as 0.5 pips on the standard account with no commission required. The swap-free account features slightly higher spreads starting from 0.7 pips for major currency pairs.
Lastly, XTB is regulated by a number of organizations around the world. These include the CySEC, the FCA, the FSCA, and the KF in Poland, among others. While regulations alone are not enough, it is always a good sign to see a broker have multiple regulatory licenses.
XM is a well-established forex broker known for its extensive range of tradable instruments and favourable trading conditions, making it suitable for swing traders. The broker offers an educational section that covers various trading strategies, including swing trading. This provides valuable resources for traders looking to adopt this approach.
Traders on XM have access to a diverse set of financial instruments. Some of the global markets available on the broker site include forex currency pairs, precious metals, indices, energies, shares, and cryptocurrencies. The broker provides multiple trading platforms, such as MetaTrader 4 and MetaTrader 5. These are popular choices among swing traders due to their robust charting and analysis tools.
In terms of trading costs, XM offers competitive spreads. There are four different trading accounts offered by the broker. These include a standard, a micro, an ultra-low account, and a shares account. Both the standard and the micro account feature spreads as low as 1.0 pips for major currencies with no commission. The XM Ultra Low account has spreads from 0.6 pips with no commission. The Shares account charges a commission depending on the order size and the asset traded.
Regulation is a crucial aspect when choosing a forex broker, and XM holds licenses from reputable regulatory bodies. The broker is regulated by the FCA in the UK, the ASIC in Australia, and the CySEC, ensuring a secure trading environment for its clients.
72.82% of retail investor accounts lose money when trading CFDs with this provider.
IG is a globally recognized forex and CFD broker that caters to a wide range of traders. Traders on IG can use a variety of trading strategies including those employing swing trading strategies. With its extensive market coverage, IG has become a popular choice for swing traders looking for a reliable brokerage. The broker allows its traders to invest in forex pairs, indices, commodities, shares, cryptocurrencies, and more. In total, there are over 18,000 different trading instruments.
IG provides an educational section on its platform that contains a lesson on swing trading. This can be beneficial for both novice and experienced traders looking to enhance their swing trading skills. The broker offers its proprietary platforms and also supports the widely used MetaTrader 4 for those who prefer its features. The availability of multiple platforms ensures that traders can choose the one that best suits their needs.
In terms of trading costs, IG offers competitive spreads. The average spreads can fall as low as 0.6 pips for major currency pairs. This fee structure can be advantageous for swing traders, especially those holding positions for several days or weeks.
On another positive note, IG has regulations from several authorities. These include the FCA in the UK, the ASIC, the MAS in Singapore, and the DFSA in the DIFC.
AvaTrade will close out our list of the best forex brokers for swing trading. Like the other brokers on this list, AvaTrade supports swing trading and also offers some educational material on the strategy. Additionally, this broker also supports a wide range of market products. Traders on the AvaTrade site have access to CFDs on forex, metals, commodities, indices, bonds, ETFs, cryptocurrencies, and equities. The trading platforms available to use include MetaTrader 4, MetaTrader 5, and AvaTradeGO.
The spreads offered by this broker are competitively low, which is an added advantage. They start from 0.9 pips for major currency pairs with no commission required. Further, traders have access to a variety of tools to help them with their analysis including Trading Central and MT4 expert advisors, among others.
On regulations, this broker operates under the watchful eye of several organizations around the world. These include the Central Bank of Ireland, the KNF in Poland, the CySEC in Cyprus, and the FSCA in South Africa. Multiple regulatory licenses from strict organizations are always a good sign for a forex broker.
Swing Trading is one of the most popular trading strategies in the world today. It allows traders to take advantage of the price swings of an asset in the market. Nonetheless, selecting the best Forex broker for swing trading involves careful consideration of various factors. These include regulation, trading platforms, fees, market instrument offerings, educational resources, and others. Each of the mentioned brokers stands out in different aspects, catering to the diverse needs of swing traders.
Ultimately, the choice of a Forex broker depends on individual preferences. Before making a decision, it is advisable for swing traders to carefully evaluate each broker based on their specific requirements. Always conduct thorough research to ensure a seamless and rewarding trading experience. Remember, success in swing trading not only depends on the broker but also on your dedication to continuous learning and disciplined execution of trading strategies.