The best forex brokers for professional traders are not only determined by the license and years of experience. There are certain features and conditions that have to be met.
Many people would like to be successful traders. But, success in trading is very difficult. Gaining reliable profits in the forex market is harder than it looks. Unofficial estimates suggest that more than 80% of would-be traders eventually fail. Sadly, the brokerage industry rarely publishes client failure rates because the truth will likely scare off new accounts. When compared to reality, failure rates could actually be much higher than 80%. Therefore, traders who survive to become professionals are quite rare as they are usually proven to have the necessary capability to keep a sharp focus on profitability and can adapt to changing market conditions quickly.
A professional trader is defined by how they approach their trades and how they manage their trading routines. The ability to earn profits consistently is what determines their success as professional traders. After accounting for trading costs, professional traders' average profits are higher than their average losses in general.
According to MiFID rules applicable to the EU and UK, the FCA outlines that "Elective Professional Clients" are those who meet at least two of these four criteria:
- Persons who have carried out significant size transactions (i.e., 50K) on the relevant market at an average of 10 times per quarter over the last four quarters.
- Have financial investment portfolios that exceed EUR 500k (including cash).
- Negative balance protection.
- Persons who have worked in the financial sector for at least one year in a professional position with relevant knowledge of the products and services sought.
How to build a consistent track record like a professional trader?
To build a successful track record, professional traders will forward-test their trading strategy on a small account. They will scale it to more significant amounts only if their trades in the small account have proven to be fruitful. Professional traders are commonly experienced in having greater control over their results by managing the risk/reward ratio.
To get long-term profitability, professional traders require two related skill-sets: Identifying a set of strategies that make more money than they lose and then to use the strategies as part of a trading plan, and making sure that the strategies perform well in all market conditions. As a result, professional traders have the capabilities to avoid most traders' mistakes that make them fail in the long run because their strategies don't adapt to inevitable changes in forex market conditions.
When trading like a professional trader, your needs may differ considerably from the needs of a retail trader. It's important to choose a broker that is not only well-regulated but also one that fulfills your trading style. The best forex brokers for professional traders always ensure to go way beyond the default retail account offerings. It is necessary to distinguish the products and services they make available for experienced investors.
From cutting-edge technology to advanced order types and trading platforms, the best brokers for professional traders will tailor solutions and services specifically to their savvy clients, who mostly look for premium and VIP accounts.
Here's a few examples of best forex brokers for premium and VIP accounts:
Interest rate on funds
Saxobank was founded in 1992 in Denmark, which began as a brokerage business. At present, they have penetrated the online banking and forex trading business internationally. The company is known as one of the best in the industry.
Their innovative platforms have been used by Microsoft's global institutions, Barclays Stockbrokers Ltd, and TD Waterhouse. The platforms include SaxoTraderGO, an award-winning trading platforms and is offered as Saxobank's flagship. Two other platforms are SaxoTraderPRO and SaxoInvestors. Each platform has advantages and functions.
SaxoTraderPRO is suitable for use by advanced traders and institutional clients, which trade faster via quick-close all features and view exchange order books and execution reports in real-time. On the other hand, Saxo TraderGO is a platform for retail traders. This type of platform offers easy portfolio management from a single account. For example, traders can get live and historic reports of net holdings.
As for Saxo Investors which is a user-friendly case-product platform tailored to retail investors, there are several advantages including browsing curated themes and pre-made screenings. Also, clients can choose between diversified investment portfolios. It is a responsive platform accessible from any device.
The Saxobank website accommodates the needs of international clients, with dozens of languages available on the Saxobank website. Besides English, there are also Japanese, Mandarin, French, Italian, Indonesian, and many more.
When clients choose Saxo, clients are choosing to trade with a fully regulated industry leader, who adheres to strict regulatory requirements in 15 financial centers around the world, including the UK, Singapore, Hong Kong, and Denmark.
Another advantage is traders have so many choices of instruments that can be traded on Saxo, covering 40,000 instruments across 184 forex pairs, 9,000 CFDs, 19,000 shares, 200 Stock options, 2,500 ETFs, Futures, Gold, Silver, and many more.
Since the company also serves as a bank, the speed of execution at Saxo can be guaranteed. However, some traders may feel that Saxobank is not suitable for individual trading, as the minimum capital is too large and the spreads and commissions are considered burdensome for so many clients. The spread which is charged by Saxobank for each pair is quite large, so it is not suitable for scalpers. Meanwhile, the commission that must be paid by traders to this broker starts from USD1.
Furthermore, Saxobank often stops trading for a few seconds before the release of important news and only activates it again after the news is released. This makes news traders do not have the best opportunity to act on Saxobank.
Actually, The deposit value can be adjusted according to the level of account chosen by the clients. There are three levels in Saxo Accounts, including Classic (minimum funding is 500 Pounds), Platinum (minimum funding is 50,000 Pounds), and VIP (minimum funding is 1,000,000 Pounds). Clients can use leverage 1:200 and a minimum lot of 0.05.
Traders are spoiled with various kinds of facilities provided by Saxobank. Each aaccount level has its own facilities offering that can be adjusted to the needs of traders. The higher the level, the more complete the facilities provided.
For example, traders who have VIP accounts will get personal relationship managers, and direct access to trading experts 24 hours. These facilities are not found when traders choose Classic and Platinum accounts.
For Corporate Clients, Saxobank provides 40,000 instruments, with 1: 1 support from expert account managers and the security that comes from their 25+ year experience.
If clients meet professional criteria, they can join Professional Accounts at Saxobank. The criteria in question include having a financial portfolio that exceeds around 500,000 Euros, having placed at least 20 relevant trades in significant sizes over the last four quarters, and having worked in the financial sector for at least one year.
Moreover, Saxobank provides more than 100 institutional specialists operating from offices in key financial centers, including Denmark, London, Singapore, Shanghai, Hong Kong, Switzerland, and Dubai. The client can choose the location closest to their area. With this kind of support, Saxobank is optimistic for delivering the right solution for the business of clients.
From the explanation above, it can be concluded that Saxo is more suitable for deep-pocket forex traders who are interested in forex trading as an investment portfolio. The broker's business focus is also more towards institutional clients rather than retail clients.
Regulated across significant jurisdictions around the world, Saxo Bank is a trusted brand for professional traders. Its VIP account is well-suited for savvy investors, as well as the complex order types, and the provided ability to switch between instruments. Those are only a few instances of how Saxo Bank accommodates the needs of professional traders.
CMC Markets is a well-regulated and trusted broker, catering to professional traders on a global scale through its Next Generation platform. The broker serves professional traders with competitive pricing and advanced trading tools; two of the main trading conditions necessary for successful advanced trading experience.
Interactive Brokers is a direct market access broker that provides execution, clearance, settlement, and prime brokerage for customers. Since it was found 41 years ago by Thomas Peterffy, the company has grown internally to become one of the premier securities firms with over $7 billion in equity capital.
First acknowledged as a popular broker for advanced traders, Interactive Brokers launched a second tier of service called IBKR Lite for more casual investors in 2019.
The IBKR Lite provides services on over 125 market destinations worldwide and gives direct access (online) trade execution and clearing services, both to institutional and professional traders for a wide variety of traded products including stocks, options, futures, forex, fixed income, and funds worldwide. Interactive Brokers Group and its affiliates execute over 859,000 trades per day.
Headquartered in Greenwich, Connecticut, Interactive Brokers has over 1,400 employees in the USA, Switzerland, Canada, Hong Kong, UK, Australia, Hungary, Russia, Japan, India, China, and Estonia companies. IBKR is regulated by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and is registered in the New York Stoch Exchange (NYSE).
Interactive Brokers offers a wide range of product-centered tools like the OptionTrader and Probability Lab for simplified single and complex multi-leg option trading; FXTrader for forex trading, Mutual Fund/ETF Replicator for helping traders find a lower cost on ETF alternatives, also fixed-income screeners for corporate and agency bonds. Interactive Brokers commits to provide the most useful and updated tools to assist their clients in maximizing their trading and investing goals.
As a popular and regulated broker in the US, Interactive Brokers has won some awards. Recently, they were awarded by the Barrons as the 2019 Best Online Broker, which is categorized as the best broker for mobile, international, and frequent traders. Besides, they also won an award as Top Performing Broker by the Preqin Service Providers, and Best Overall Broker by Investopedia (Best for Low Costs, Best for International Trading, Best for Options Trading, Best for Day Trading, and Best for Penny Stocks).
The awards are not only achieved during 2019. Since 2005, Interactive Brokers has won lots of awards regarding its best services for the clients.
To optimize clients' trading speed and efficiency, Interactive Brokers provides some powerful suites of trading platforms. Below is the list:
- Client Portal
A one-stop destination to check quotes and place trades, see account balances, Profit and Loss, as well as key performance metrics, funding, and reporting.
- Desktop TWS
A flagship platform designed for active traders and investors who trade multiple products and require power and flexibility. TWS has the most advanced algorithms and trading tools, and offers a library of tools and asset-based trading layouts for optimum customization.
- IBKR TWS for Mobile
The IBKR TWS for Mobile is made for traders who want to easily trade and monitor their IBKR account on-the-go from either iOS or Android device (tablet or smartphone).
IBoT is a robot for finding information and placing orders using clients' own words. IBot is available on TWS for Desktop, IBKR Mobile, and Client Portal.
- IBKR WebTrader
IBKR WebTrader is made for traders and investors who prefer a simplified interface.
- IBKR APIs or IBKR Pro
This trading platform is provided especially for traders and investors who want to write their trading software or automated trading programs; third-party software users.
Overall, Interactive Brokers has always been a great choice for those who want to find out a credible and regulated broker for trading. Offering lots of trading platforms, Interactive Brokers has committed to provide their best services for both novices and professionals, since it is suited to every clients' needs.
As a well-known broker regulated across multiple major financial centers, Interactive Brokers has a long-standing history in the financial industry. It provides competitive pricing supported by sophisticated tools, including advanced order types to cater to professional traders' various trading strategies.
ASIC, ACN 141 774 727, AFSL 345646
Trading by telephone
City Index is a part of Gain Capital Group and like Interactive Brokers, it has a long history as a trusted and highly-regulated forex and CFD brokerage. It offers access to multiple platforms, instruments, and competitive spreads to satisfy professional traders. City Index is also known for its Active Trader account that offers tiered pricing.
Have a difficulty in deciding the best forex broker for professional traders? Don't worry, we have compiled the four brokers above and put their information on the table below:
|Feature||Saxo Bank||CMC Markets||Interactive Brokers||City Index|
|Office(s)||China, Greece, India, Italy, Netherlands, Spain, United Arab Emirates, United Kingdom||Australia, Canada, China, Germany, Hong Kong, Italy, New Zealand, Singapore, Sweden, United Kingdom||Australia, Canada, Hong Kong, United Kingdom, United States||United Arab Emirates, United Kingdom|
Banque de France, 483632501
FCA (UK), FC026688
FSA (Denmark), 1149
SFC (Hong Kong), 1395901
|FCA (UK), 173730
FCA (UK), 208159
Monetary Authority of Singapore, CMS100917
SEC (US), 8-47257
|ASIC, ACN 141 774 727, AFSL 345646
FCA (UK), 113942
Monetary Authority of Singapore, 200400922K
|Minimum Position||0.05 lot||0.0002 lot||0.25 lot||0.01 lot|
|Payment||Credit/debit cards, Wire transfer||Credit/debit cards||BPAY, Check, Wire transfer||Credit/debit cards, Wire transfer|
|US traders are welcome|
|Requires sending documents via postal mail|
|Overnight interest rates (swaps)|
|Trading by telephone|
|Interest rate on funds|
Trading Platforms and Complements
|Trading via API|
|One-Cancels-Other (OCO) orders|
|Gold & silver|
|Website Languages||Arabic, Chinese, Czech, Danish, Dutch, English, Finnish, French, German, Greek, Hebrew, Hungarian, Italian, Norwegian, Polish, Romanian, Russian, Slovenian, Spanish||Chinese, Danish, Finnish, French, German, Italian, Japanese, Norwegian, Spanish, Swedish||Chinese, French, German, Italian, Japanese, Russian, Spanish||English|
If you are not yet a professional trader and intend to build a trading experience with competitive trading cost, low spread is a trading condition that you need to have in a forex broker. The choices can be found in the Top 7 Brokers with the Lowest Spreads That You Can Try.