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The size of forex (Foreign Exchange) brokerage firms can be measured in terms of transaction volume on a daily basis.
The Average Daily Transaction Volume (ADVT) is a measure of how much currency is traded through the broker each day, on average. This value is often used as a gauge of the size and importance of a broker in the forex market.
In this article we have collected a selection of the biggest forex brokers in the world by volume according to ADVT:
- Minimum deposit requested
- Number of assets
- Spreads on forex
- Platforms offered
The table below shows the comparison between the largest forex brokers in the world by volume in 2023:
|Largest brokers||ADVT (Billion USD)|
What are the biggest forex brokers by volume?
Below our curated list of the biggest forex brokers according to Average Daily Transaction Volume (ADVT), with details of features and characteristics.
How to rank the largest forex brokers
Forex brokers aren’t ranked randomly. Several factors should be considered when ranking the largest forex brokers. However, the most relevant ranking criteria for Forex brokers is the Average Daily Transaction Volume (ADVT).
The volatility of the value of a broker’s daily transactions is dependent on the number of active clients the broker has. The more active the clients are, the less volatile the broker’s ADVT and vice versa.
To make the value relevant, the number of active clients for at least 3 months is considered. For a broker to be considered large, it must have an ADVT of at least a billion dollars (more than 10,000 standard lots traded daily).
Why Is Trading Volume Important?
Trading volume plays a pivotal role in the financial markets. It’s the number of shares or contracts traded in a security or an entire market during a given period.
Here are some reasons why it is deemed so crucial:
- Better Liquidity: Liquidity refers to the ease with which assets can be quickly bought or sold without causing a significant change in its price. A market with high trading volume has more market participants involved. The more participants there are, the easier it is to execute trades. This ensures that you can get in or out of positions effortlessly without significant price alterations.
- Lower Commissions: High trading volume means a larger number of trades are being processed. This sheer volume allows brokers to benefit from economies of scale. As a result, they can afford to charge lower commissions to traders. It’s a win-win, with traders benefiting from reduced costs and brokers securing more trading activity.
- Less Slippage: Slippage happens when the price at which a trade is executed differs from the expected price. This can occur when liquidity is low. However, with higher liquidity that comes from increased trading volume, slippage becomes rarer. Traders can thus be more confident that their trades will be executed at their expected prices.
What are the trading benefits with big forex brokers?
Trading with established, high-volume forex brokers comes with a plethora of advantages. Here’s why traders lean towards them:
- Liquidity: As highlighted earlier, liquidity is of utmost importance in trading. Big brokers, because of their vast client base and trading volume, ensure that traders can execute orders promptly with competitive pricing.
- Technology: With the financial muscle that big brokers possess, they invest heavily in technology. This means traders get access to top-notch trading platforms, advanced charting tools, algorithmic trading options, and more. A superior tech infrastructure can drastically enhance a trader’s efficiency and effectiveness.
- Regulations: Established forex brokers are usually subject to strict regulations from recognized financial authorities. This ensures that they maintain transparency, fairness, and adhere to best practices. For traders, this translates into a safe and reliable forex trading environment.
- Educational Resources: Big brokers often have a treasure trove of educational content. Whether it’s timely market analysis, a comprehensive economic calendar, insightful articles, webinars, or interactive courses, they ensure traders are well-equipped with knowledge to make informed decisions.
- Customer Support: The significance of robust customer support cannot be overstated, especially in a market that operates 24/7. Big brokers usually have dedicated customer support teams available round the clock, proficient in multiple languages, ensuring that traders’ queries and issues are addressed promptly.
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