Top 10 Best Prime Brokers in 2022

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Looking for the best prime brokers with high levels of trust? Many brokers claim to be the best, but on closer examination, you discover gaps in the quality of their services. 

What Is a Prime Brokerage?

In comparison with other brokers, these brands offer superior and more sophisticated services. They have working relationships with reputable regulators in tier-1 jurisdictions and allow clients to access multiple liquidity sources. Reliable custody services will give you peace of mind, as the companies offer advanced protection for all deposits. Such brokers are usually part of large multinational groups which offer services to retail forex traders.

 In the institutional realm, these companies work with large investment clients — for example, prime brokers for small hedge funds. They allow them to borrow cash or securities, use rehypothecation, profit from leveraged trades and related services. The following list includes the most prominent providers regarded as prime brokers for retail clients:

Below are some of the most well-regulated and customer-centric platforms that are great for beginners and seasoned experts too! 

List of Prime Brokers

1. FBS Broker 

Over 16 million Traders have used FBS Broker for a shot at the financial markets. The company claims to issue over $500 million in profits to customers annually. FBS Broker further states that about half of their traders multiply their deposits up to 8 to 10 times. 

We cannot confirm this claim’s validity. But if it were true, it’s an above-average success rate. Asian customers love the platform, and in fact, it won the Best Broker Asia 2020 —Capital Finance International Awards. 

Top reasons to choose FBS Broker 

• Lowest trading costs
• Up to five different retail trading accounts — each with unique features & costs
• High leverage of 1:3000

Limitations of FBS Broker

• High minimum deposit restrictions on top-tier accounts

2. eToro 

As a reliable market leader, eToro has operated since 2007.  It’s a top-rated platform suited for beginners. Most like it because it offers the best social trading programs.  

eToro Strengths

• Advanced social trading features
• Easy-to-use platform with over 2,000 markets
• Accepts US clients on limited markets

Limitations of eToro 

• Higher trading fees than most
• Does not provide MetaTrader 4 or 5
• High initial deposit with few account options 

3. XM Broker

Started in 2009, XM Broker meets all the checks of the top prime brokers.  About four different organizations oversee the broker’s activities. Traders also enjoy strong protections for their funds, including the use of segregated accounts with reputable companies. 

XM has received many awards for offering outstanding services. In 2020 alone, the platform took home two awards for the best customer service and the Best FX Service Provider, City of Wealth Management Awards. 

Many prime brokers on this list offer CFD trading alone. XM offers real stock investing, but the initial deposit is quite high at $10,000. 

XM Broker Strengths

• Supports many base account currency options (including JPY, AUD, ZAR, RUB, PLN, HUF)
• Permits hedging & suitable for forex scalping
• Over 100 shares for investment
• Renowned education articles & trading tools

Limitations of XM Broker

• About 78.04% of retail investor accounts lose money, a significantly higher proportion.
• Limited account types. However, traders can customize the lot sizes. 

4. AvaTrade

AvaTrade offers an intuitive platform with a well-laid out website that’s a breeze to use.  With six different regulators, it may feel like it’s more regulated than other forex prime brokers on this list.

AvaTrade Website showing AvaTradeGo

AvaTrade invested heavily in its proprietary technologies and tools. The AvaTradeGo app is user-friendly and fully-featured.

Risk management is on another level. Traders may purchase the AvaRisk Coverage. When it’s in effect, the trader essentially gets their money back on any losses. It’s a tool that’s hard to come by even on other renowned platforms. There are plenty of account extras, including free use of Trading Central, a renowned provider of technical signals since 1999. 

AvaTrade Strengths

• AvaProtect — a revolutionary risk-management tool
• Multiple trading technologies 
• Helpful and highly responsive support team 
• Strongly regulated

Limitations of AvaTrade

• Lots of restrictions to qualify for the professional trading account
• High inactivity fee of $100 following 12 consecutive months of no-use
• Limited account types (no ECN accounts)

5. Forex.com 

 Since 2001, Forex.com has connected retail traders to global markets. The broker prioritizes fast and quality execution with an actual scorecard that traders can review. 

It’s part of the StoneX Group Inc, a publicly-traded company listed on NASDAQ, meaning that it adheres to stringent financial practices. 

There’s a lot to love about Forex.com, including the advanced proprietary trading tools. Traders will not experience a shortage of essential features found in MetaTrader. 

Forex.com Strengths

• Over 4,000 trading markets featuring thousands of stocks
• Monthly rebates and benefits for active traders, including pro guidance from personal market strategists
• High standards of security and stability
• Timely trade news and comprehensive research 

Limitations of Forex.com

• The risk-free demo account is restricted to 30 days
• Lacks negative balance protection — Losses may be greater than the account balance in periods of extreme volatility

6. Markets.com

This well-established broker has operated since 2008. Its parent company is part of Playtech, whose shares are included in FTSE 250. The provider offers a whopping 2,200 assets, including CFDs on ETFs, world-class tools and insights for beginners and pros. It is a reliable custodian with excellent support.

Strengths 

• Tight margins 
• Knowledge Centre packed with educational resources
• Unique tools like XRay (personalised commentary). 

Limitations

• Low leverage
• No social trading

7. FXTM

This global broker serves over 2 million clients. It has an impressive collection of awards, including The Best Trading Experience 2021 from Global Finance. The company offers forex and CFD trading through over 250 assets. All deposits and withdrawals are free. New clients can start with just $10 and use a plethora of educational resources. 

Strengths 

• low margin requirement
• unlimited demo
• low minimum deposit

Limitations

• fewer instruments

8. IG

This company is one of the pioneering prime brokers forex, as its history dates back to 1974. It is also listed on the London Stock Exchange and is considered one of the biggest CFD providers. IG has 17 sales offices globally and over 17,000 assets, including indices, cryptocurrencies, stocks, and commodities. The company gets stellar rankings from professional traders. 

Strengths 

• no minimum deposit requirement
• one of the biggest CFD brokers

Limitations

• low leverage

9. Pepperstone

This Australia-based broker was established in 2010. It has received multiple awards from Deloitte and the Governor of Victoria. Clients trade over 1,000 assets via MetaTrader and cTrader, which supports C# coding. The company offers low cost, fast execution, and deep liquidity. The Standard account lets you generate income without commission.  

Strengths 

• no commissions on Standard Account
• referral bonuses
• API integration

Limitations

• mostly CFDs offered

10. Plus500

This company was established in 2008. Based in London, it offers a rich array of CFDs for trading through its own platform. The key strengths include excellent support, simple registration, and the absence of commissions. At the same time, the company does not allow copy trading or forex robots, as it considers them unethical. Over 2,500 instruments are available, but only through CFDs. 

Strengths 

• wide range of CFDs
• responsive support

Limitations

• no spot Forex
• no copy trading

For more trusted brokers, check out the broker’s tab. Read the full reviews covering all aspects of the platforms in-depth. 

This post is also available in: Indonesia Português العربية