Brokers Listed On Stock Exchanges

The forex market is one of the largest and most liquid financial markets globally. Forex brokers play a crucial role in this market by providing the necessary infrastructure and tools for traders to participate. Understandably, some forex brokers have grown significantly over the years. 

A standout category within this space is brokers listed on major stock exchanges. These publicly traded companies often provide greater transparency compared to privately held firms. In this article, we’ll explore brokers listed on stock exchanges, their advantages, notable examples, and what it means for traders and investors.

Why Consider Brokers Listed on Stock Exchanges?

There are a few advantages that traders may enjoy when they choose to trade with a broker listed on a stock exchange. Here are a few of the benefits:

• Transparency - Publicly listed brokers are required to disclose detailed financial information, including revenues, profits, and liabilities. This transparency builds trust among clients, as they can assess the financial health and operational integrity of the broker.
• Regulatory Oversight - Such brokers are subject to stringent regulations, both from financial authorities and the stock exchanges they are listed on. This ensures adherence to high operational and ethical standards.
• Financial Stability - Publicly traded companies typically have larger capital reserves, making them less vulnerable to market volatility or financial crises. This stability provides added security for client funds.
• Reputation - Listing on a stock exchange enhances a broker's reputation and credibility. It demonstrates that the company meets the rigorous standards set by the exchange and is committed to long-term growth and accountability.

With that understanding, let’s take a look at some well-known brokers listed on stock exchanges.

XTB

XTB is one of the most popular brokers listed on a stock exchange. This broker has been listed in the Warsaw Stock Exchange since 2016 under the ticker XTB. Since its IPO, the broker has grown significantly, as shown by the steady rise in its stock price. It now has over 1 million customers worldwide and offices in over 13 countries. Positively, this broker operates under the supervision of a variety of financial regulators. These include the FCA in the UK, the CySEC in Cyprus, the KNF in Poland, and the FSC in Belize. 

In terms of market products, XTB offers its traders a broad range of instruments across various asset classes. Its clients can access over 5,400 different instruments which include CFDs on forex, commodities, indices, cryptocurrencies, equities, and ETFs. Additionally, traders can buy and sell real stocks and ETFs on this trading site. The trading platform provided by the broker is its in-built xStation 5.

Finally, XTB offers some of the lowest spreads in the market today. Traders can benefit from spreads starting as low as 0.5 pips on major currency pairs, with no commission. The broker also provides a swap-free account that has spreads as low as 0.7 pips for major currency pairs, also without commissions.

74-76% of retail investor accounts lose money when trading CFDs with this provider.

Forex.com

Forex.com is operated by its parent company StoneX Group INC, which is listed on the NASDAQ under the ticker SNEX. As a publicly traded company, StoneX Group INC meets the highest standards of corporate governance, financial reporting, and disclosure. This is one of the reasons why Forex.com is one of the most popular Forex and CFD brokers in the world.

Moreover, this broker has a great regulatory background. Its parent company holds licenses from several reputable financial authorities. These include the CFTC and NFA in the US, the CySEC in Cyprus, the FCA in the UK, the CIRO in Canada, and the ASIC in Australia, among others. Evidently, this is one of the most heavily regulated brokers in the world.

On another note, Forex.com provides its clients with a plethora of financial instruments to trade. In total, this broker hosts over 5,500 different assets. However, the availability of market products will depend on the region of the trader. For traders in the US - forex, futures, and futures options are the only asset classes available to trade. In contrast, investors outside the US have access to CFDs on forex, stocks, indices, cryptocurrencies, commodities, and precious metals. To trade these various market products, the broker offers a lineup of trading platforms which include MetaTrader 4, MetaTrader 5, TradingView, and Forex.com Trader.

In terms of spreads, this broker is within market standards. The Standard account offers spreads starting as low as 0.8 pips, while the MetaTrader account begins at 1.0 pips. These two accounts do not charge a commission. In contrast, the Raw account features spreads starting from 0.0 pips but incurs a commission of $5 per $100,000 traded for traders outside the US. Traders in the US pay a commission of $7 per $100,000 traded.

74-76% of retail investor accounts lose money when trading CFDs with this provider.

IG Group

IG Group is another prominent forex and CFD broker listed on a stock exchange. It has been publicly traded on the London Stock Exchange (LSE) since 2000 under the ticker IGG. As one of the oldest online trading companies, IG Group has built a reputation for transparency and reliability. Additionally, IG Group operates under a strong regulatory framework, holding licenses from top-tier authorities. These include the FCA, the ASIC, the CySEC, the BaFin in Germany, and the CFTC and NFA in the US. 

The broker offers access to one of the deepest collections of financial instruments. These include CFDs on shares, forex, indices, commodities, and ETFs. These market products are accessible on different platforms which include MetaTrader 4, L2 Dealer, TradingView, and ProRealTime. These industry-standard trading platforms offer investors user-friendly interfaces with advanced functionalities.

The spreads on IG are manageable and most traders would be able to afford them. The spreads on IG can fall as low as 0.6 pips for some major currency pairs with no commission.

71% of retail investor accounts lose money when trading CFDs with this provider.

Plus500

Plus500 is a prominent online trading platform that offers a range of financial instruments. It's a publicly traded company listed on the London Stock Exchange's Main Market under the ticker PLUS. This listing provides a level of transparency and accountability that can be reassuring to traders. Further, this broker has regulations from several financial authorities. These include the FCA, the CySEC, the ASIC, and the FSCA in South Africa.

In terms of market products, Plus500 offers access to an extensive range of over 2,800 financial instruments. These include CFDs on forex, cryptocurrencies, indices, commodities, shares, options, and ETFs. These are accessible through the user-friendly Plus500 trading platform, available on desktop, web, and mobile devices. A variable spread applies to cover trading fees. As an example, the spread on the EURUSD pair can go as low as 0.8 pips depending on the market. 

Interactive Brokers

Interactive Brokers is a globally renowned brokerage firm listed on the NASDAQ under the ticker symbol IBKR. Established in 1978, Interactive Brokers is one of the oldest brokerage firms in the world, offering a wide range of investment products and trading tools. The company's public listing ensures transparency and adherence to high standards of financial reporting.

Interactive Brokers operates under multiple regulatory licenses. These include licences from the SEC and CFTC in the US, the FCA, the ASIC, and the CIRO in Canada. On top of that, this broker is a member of the FINRA and NYSE. This extensive oversight suggests a secure trading environment for its clients.

On another note, the broker provides access to an extensive array of financial instruments. In particular, traders have access to global markets such as forex currency pairs, stocks, options, futures, bonds, funds, and crypto. These market products are available with some of the lowest trading fees in the market. Spreads for major currency pairs are as low as 0.1 pip with a commission based on trading volume. As an example, traders with a monthly volume under $1 billion pay a modest fee of $0.0001 times the monthly trading volume. The trading platforms available to use include Trader WorkStation and the IBKR Platform.

Swissquote

SwissQuote is a leading online trading broker headquartered in Switzerland, publicly listed on the SIX Swiss Exchange under the ticker symbol SQN. Founded in 1996, SwissQuote has established itself as a reliable and innovative broker, offering a wide range of financial products. The clients of this broker can speculate on a variety of global market instruments including forex, stocks, cryptocurrencies, bonds, indices, ETFs, commodities, and more. To trade these market products, this broker avails MT4, MT5, and CFXD as the trading platforms from which to choose.

Further, Swissquotes features some fairly competitive spreads starting from as low as 1.7 pips on the standard account. The Premium account has a spread as low as 1.4 pips while the Prime account has spreads from 1.1 pips. These three accounts do not charge any commissions to traders. Uniquely, Swissquote also offers custom spreads on the professional account.

Swissquote’s status as a publicly traded company ensures transparency and accountability. However, this broker is also heavily regulated by the FCA in the UK, the CySEC in Cyprus, and the DFSA in Dubai, among others.

CMC Markets

CMC Markets is a well-established online broker publicly traded on the London Stock Exchange (LSE) under the ticker symbol CMCX. Its listing on the LSE reflects its financial stability and commitment to transparency, which are key attributes valued by traders and investors alike. Furthermore, this broker has regulations from several well-known financial watchdogs. These include the BaFin, the FCA, and the ASIC. 

This broker provides access to an extensive range of market products. The platform provides CFD trading on a diverse range of assets including forex, indices, cryptocurrencies, commodities, individual stocks, stock baskets, and government bonds. The sole trading platform available to place orders in these markets is MetaTrader 4. 

Additionally, CMC Markets stands out for its highly competitive pricing. Spreads start as low as 0.5 pips on major currency pairs. This positions the broker favourably against many competitors in the industry.

Final Comments

Brokers listed on stock exchanges represent a blend of transparency, stability, and innovation. With access to public financial information and regulatory oversight, they offer traders an added layer of confidence. Whether you are a novice trader or an experienced investor, opting for a listed broker can provide a secure and enriching trading experience.

In this review, we looked at some of the top brokers listed on stock exchanges. However, traders should still conduct thorough research and due diligence before choosing a listed broker. They should consider their trading goals, regulatory requirements, and the features offered.