Best OTC Forex Brokers

logomark Filippo Ucchino calendar Last Updated: November 2021 timer 11 min read
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At InvestinGoal, we adhere to strict standards to ensure an unbiased review process. We conduct our reviews by examining each broker’s offering and performance across 4 key categories. A final rating is produced for each forex broker based on a total of 187 data points. Learn more about our review process and methodology.

Selecting an OTC broker can be a bit of hassle, especially if you’re looking for OTC Stocks.

In fact, you must know that it’s impossible for retail traders to trade OTC Shares as they are only for professional or institutional investors.

So, what is this OTC Broker list we’ve done?

Well, Forex is the biggest OTC Market in the world, and this is what these brokers are about.

If you are looking for more OTC forex brokers, checkout our list of top 10 best forex brokers.

Table of contents

What does OTC Mean?

OTC is an abbreviation for over-the-counter. Over-the-counter trading refers to trading through decentralized dealer networks.

A decentralized market is basically a market system made up of multiple advanced technologies. This structure enables investors to construct a marketplace that does not have a central location. Exchange trade, which takes place through a centralized exchange, is the inverse of OTC trading.

A share, cash, or other financial instrument purchased through a dealer, either by phone or electronically, is an example of OTC trading.

Top 10 best OTC Markets Brokers [2021]

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73.57% of retail investor accounts lose money

1. XM

Trading Point Holding, a worldwide CFD and FX broker established in 2009, owns XM.

XM doubles down on its brand by providing a good mix of the functions that users want most: security, support, easy account funding and withdrawals, and reasonable fees. It is regulated by strict financial regulators in all key jurisdictions.

XM Group provides four types of accounts with low spreads to its clients; micro, standard, ultra low, and shares account. The micro account allows you to trade micro lots with a lower degree of risk and a $5 minimum initial deposit.

The XM ultra low account lets you to trade standard lots, with spreads starting at zero pips and a $5 minimum initial deposit.

The shares account is also available from XM, although it requires a bigger minimum deposit of $10,000. These are always Islamic, and there will be no trading bonuses, deposit bonuses, or hedging.

Beginners and those wishing to review or improve their trading and investing skills can benefit from XM’s comprehensive research and education section.

The majority of the educational content on XM is video-based. You can go further into topics such as an introduction to financial markets, money management, trading methods, and technical analysis.

77
Rated: Excellent
Security 94
Cost 74
Trading 65
Education 68

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms Regulations: MIFID-ESMA, ASIC, CYSEC Minimum Deposit: 5
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72% of retail investor accounts lose money

2. Saxo Bank

Saxo Bank is a Danish investment bank that was founded in 1992 and offers online trading and investment services. Several financial regulators throughout the world regulate the firm, including the Danish Financial Services Agency (FSA) and the UK Financial Conduct Authority (FCA).

Saxo Bank provides FX and CFD traders with a comprehensive platform that includes over 40,000 instruments.

Saxo Bank has three kinds of accounts: classic, premium, and VIP.

Platinum and VIP accounts provide you with more attractive pricing structures as well as your own dedicated contact person.

You can open an ISA account if you are a UK resident. It is a stock account with 11,000 assets, stocks, and ETFs available.

Saxo Bank has a demo account that can be used for a trial duration of 20 days with no requirement to deposit real money afte that.

At Saxo Bank, spreads and commission vary according to account types. The minimum spread start at 0.4 pips on EUR/USD. Saxo Bank offers a plethora of educational resources in the form of video courses, webinars, and events, as well as comprehensive market research.

Under the SaxoStrats Experts brand, Saxo Bank employs eight analysts and strategists who are in charge of covering the asset classes available to its clients.

81
Rated: Excellent
Security 95
Cost 67
Trading 75
Education 76

Platforms: Proprietary Desktop Platform, Proprietary Web Platform, MAC Platforms Regulations: FSA, MAS, FINMA, FCA, MIFID-ESMA, ASIC, SFC, FSCA, DFSA, CYSEC Minimum Deposit: 2000
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76% of retail CFD accounts lose money

3. IG Markets

IG was founded in the United Kingdom in 1974 and is now one of the world’s largest CFD brokers. Several bodies throughout the world, including top-tier regulators such as the UK’s Financial Conduct Authority (FCA) and Germany’s Federal Financial Supervisory Authority (BaFin), regulate it.

There are three types of accounts: live, demo, and corporate. A $250 deposit is required for the live account. The type of account you can open is determined by the country in which you live. In most countries, IG Markets allows only forex and CFD trading.

IG Markets has an excellent asset choice, with over 17,000 tradeable products spread over eleven categories. You have access to over 80 forex pairs, 27 commodities, 12000 equity CFDs, which give excellent diversification opportunities.

At IG Markets, spread betting is only available to traders based in the United Kingdom and Ireland. They can participate in spread betting by opening a specific account with the broker.

The majority of IG’s educational content is classified as beginner, intermediate, or advanced.

The IG Academy course is designed to cover content for traders at all levels of experience.

Because of its low spread costs, great customer service and education, and actionable research, IG is well suited for everyone needs.

90
Rated: Excellent
Security 98
Cost 62
Trading 100
Education 84

Platforms: Proprietary Web Platform, MAC Platforms Regulations: FSA, MAS, FINMA, FCA, CFTC, MIFID-ESMA, ASIC, FMA, FSCA, DFSA Minimum Deposit: 300
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80% of retail CFD accounts lose money

4. CMC Markets

CMC Markets (CMC), formed in 1989, is a well-established and well-acclaimed forex broker in the United Kingdom.

CMC Markets provides 10,000 assets in six categories, including forex, indices, cryptocurrencies, commodities, shares, ETFs, and treasuries. Most traders will find the asset selection extensive, and the broker is constantly expanding its list.

CMC Markets has four different account types with no minimum deposits. These accounts are; CFD account, corporate account, stockbroking account, spread betting account, and a professional account.

The stockbroking account is only available for Australian traders while the spread betting account is restricted to UK and Ireland traders.

The minimum spreads on the major forex pairs range from 0.7 on EUR/USD to 0.9 on GBP/USD to 1.0 on USD/CHF.

The CMC education section is full of webinars and events hosted by CMC Markets specialists, as well as an array of instructional publications, demonstrating the broker’s commitment to education.

The proprietary trading platform built by CMC Markets is the broker’s most distinctive feature. It comes with 115 technical indicators, 70 chart patterns, and 12 chart types.

With a comprehensive product offering, an accessible, feature-rich platform, a variety of research tools, helpful educational resources, and a focus on customer support, CMC Markets is a good fit for all types of traders.

80
Rated: Excellent
Security 95
Cost 61
Trading 75
Education 81

Platforms: Proprietary Web Platform Regulations: MAS, FCA, MIFID-ESMA, ASIC, IIROC, FMA, CBRC Minimum Deposit: 0
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74-89% of retail CFD accounts lose money

5. FP Markets

FP Markets was founded in 2005 and is regulated by the Australian Securities Exchange Commission.

The MetaTrader offering from FP Markets is confined to just over 130 tradeable symbols. Meanwhile, FP Markets provides a broad choice of CFDs to global clients via the Iress platform suite, including 61 forex pairs, 12 indices, 8884 stocks, 4 metals, 5 cryptocurrencies, and 3 commodities.

Standard accounts, raw spread accounts, IRESS standard accounts, IRESS platinum accounts, IRESS premier accounts, MAM/PAMM accounts, and an Islamic account are all available from FP Markets.

The FP Markets Metatrader Raw Spreads Account is a great option if you want lower spreads and more platform flexibility. You can use either the MT4 or the MT5 trading platforms and make the same low minimum investment of $100.

The FP Markets Traders Hub offers daily analysis and trading suggestions in a professional format. The streaming news service is accessible as one of twelve MT4 plug-ins, providing traders with a valuable service integrated within the trading platform. Educational resources, like as webinars and videos, can be a great help for new traders.

FP Markets is a competent and trustworthy broker that is best suited for forex traders seeking a competitive commission-based trading environment via enhanced trading platforms.

85
Rated: Excellent
Security 93
Cost 64
Trading 100
Education 47

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, Proprietary Desktop Platform, MAC Platforms Regulations: ASIC Minimum Deposit: 100
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81% of retail investor accounts lose money

6. FXTM

FXTM (ForexTime) is a well-known brokerage firm that has been in operation since 2011.

FXTM offers forex, metals (gold, silver), and stock CFDs (Apple, Google, and other major stocks). Furthermore, the company has introduced 11 new dynamic currency and stock basket indexes, separated into six forex indices and five stock indices.

At FXTM, there are three account types to choose from; micro, advantage, and advantage plus. These account types differ based on the countries in which they are available, the pricing, the minimum deposit, the trading platform provided, and the products that can be traded. You can start trading with the minimum deposit of $50.

In the micro account, the broker starts with a minimum spread of 1.5 pips for the EUR/USD.

FXTM also provides a demo account, allowing you to practice your trading skills before depositing your money.

In the education section, you can find eBooks, forex trading webinars, forex trading seminars, short forex videos, education videos and articles, and a periodic table, which is a fascinating and delightful glossary of investing jargons.

While most brokers focus on developed and well-known places, FXTM has had substantial success in other countries such as Africa and Asia.

80
Rated: Excellent
Security 94
Cost 71
Trading 71
Education 80

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, Proprietary Web Platform Regulations: FCA, MIFID-ESMA, FSCA, CYSEC, FSC (Mauritius) Minimum Deposit: 10
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79% of retail investor accounts lose money

7. AvaTrade

AvaTrade is a multinational CFD and forex broker that was established in 2006. A number of financial bodies, including the Central Bank of Ireland, governs it.

AvaTrade keeps things easy for most traders by offering only two account types. There are two types of accounts: standard and demo. You can open a standard account with as little as $100.

AvaTrade offers more than 200 assets with forex being the dominant one. The broker offers 55 currency pairs, 20 indices, 200 stocks, 14 ETFs, 2 bonds, and 14 cryptocurrencies.

AvaTrade users can also download AvaSocial, the broker’s social and copy trading tool. The mobile app, which is available on iOS and Android smartphones, allows consumers to mirror the trades of successful investors. Users can choose to trade manually on market indications or to use a completely automated service.

AvaTrade has excellent customer service, providing timely and meaningful responses in a variety of local languages.

AvaTrade takes education very seriously, as seen by their investment in developing their own “trading academy,” branded as “Sharp Trader.” It offers multiple learning opportunities available in areas such as trading fundamentals, economic indicators, and charting.

82
Rated: Excellent
Security 94
Cost 78
Trading 75
Education 72

Platforms: Mirror Trader, ZuluTrade, MT4 Web, MT5 Web, Proprietary Web Platform, MAC Platforms Regulations: FSA, MIFID-ESMA, ASIC, IIROC, FSCA, Offshore, FSC (British) Minimum Deposit: 100
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71.64% of retail investor accounts lose money

8. HotForex

Hot Forex is a subsidiary of the HF Markets Group. It was established in 2020, and is regulated by the top-tier FCA.

As the name suggests, HotForex is primarily a forex broker with over 50 currency pairs to choose from. However, you can also trade indexes, stocks, metals, energy, commodities, cryptocurrency and bonds.

HotForex provides its traders with six different account types. Hot Forex UK clients only have access to four account options, as Micro Accounts and HFcopy are not available.

The minimum deposit to open an account with HotForex is $5 with spreads starting from 0 pips.

HFcopy enables traders to establish themselves as strategy providers and charge a fee for their services. It also caters to forex traders who want to stick to a trading strategy and automates the overall process.

Hot Forex complements its complete offering with a high-quality research team that covers markets and publishes daily trade updates, analysis, and market commentary. The research part is quite well organized, with a mix of content analysis, videos, webcasts, and podcasts.

Hot Forex has done such a good job covering all aspects of trading that its traders will never need to contact customer care. The broker offers 24/5 multilingual customer support.

81
Rated: Excellent
Security 94
Cost 86
Trading 69
Education 70

Platforms: MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web Regulations: MIFID-ESMA, CYSEC, Offshore, FSC (Mauritius) Minimum Deposit: 5
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67% of retail investor accounts lose money

9. FXCM

Jefferies Financial Group, a New York Stock Exchange-listed business with a background in investment banking, owns FXCM. The brokerage firm was founded in 1999.

FXCM is mainly a forex broker, offering 39 currency combinations for trading. This includes a wide range of major, minor, and exotic currency pairs, as well as some forex futures contracts.

In addition to currency, FXCM provides thirteen index CFDs, nine commodity CFDs, and one bond CFD. The brokerage firm just released five cryptocurrency CFDs and one cryptocurrency basket.

FXCM has four types of trading accounts: standard, active trader, Islamic, and spread betting.

If you want to try your hand at spread betting, the FXCM spread betting account is excellent. The account is currently only available to FXCM traders residing in the United Kingdom and Ireland.

FXCM spreads starts from 1.3 on EUR/USD. You can reduce the spread to 0.2 pips if you qualify for the active trader program.

The FXCM video library is extensive, offering content on topics such as charts, as well as a variety of sort and category options. There are free live webinars, pre-recorded films, and pdf documents available, covering topics ranging from trading foundations to platform tools and tricks.

81
Rated: Excellent
Security 94
Cost 73
Trading 73
Education 83

Platforms: ZuluTrade, MT4 Dekstop, MT4 Web, Proprietary Desktop Platform, Proprietary Web Platform Regulations: FCA, ASIC, FSCA Minimum Deposit: 50
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74-89% of retail investor accounts lose money when trading CFDs

10. Pepperstone

Pepperstone is an Australian brokerage firm that was established in 2010. The brokerage is based in Melbourne and is administered by Pepperstone Group Limited and its parent company, Pepperstone Limited.

Pepperstone is a top-tier forex and CFD broker that is licensed by the FCA, BaFin, and ASIC.

Pepperstone offers range of tradeable products like over 60 forex pairs, over 60 stocks, 16 indices, 12 commodities, and 5 cryptocurrencies.

Pepperstone offers three types of accounts: standard STP accounts, razor accounts, and Islamic accounts. New clients can choose between the standard account, which has minimal FX spreads starting at one pip, and the razor account, which has spreads beginning at 0 pips.

Pepperstone’s great trading environment is supported by three comparatively unique features: Smart Trader Tools, cTrader Automate, and a wide range of social trading.

Pepperstone’s website includes a thorough guide to educational resources in a separate section. This contains “Learn to Trade Forex” classes, plenty of recorded and live webinars, and a sizable library of trading books.

Pepperstone has always prioritized its customers. In addition to email help, the brokerage firm provides 24/5 chat/phone service, social media portals, and an online contact form.

90
Rated: Excellent
Security 94
Cost 75
Trading 100
Education 71

Platforms: cTrader desktop, cTrader web, ZuluTrade, MT4 Dekstop, MT4 Web, MT5 Desktop, MT5 Web, MAC Platforms Regulations: FCA, MIFID-ESMA, ASIC, DFSA, CYSEC, Offshore Minimum Deposit: 0

Round-up of the Best OTC Forex Brokers

WARNING

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Between 74-89% of retail investor accounts lose money when trading CFDs.
You should consider whether you can afford to take the high risk of losing your money

Brokers Demo account Minimum deposit Average spread on EUR/USD
XM Unlimited $5 0.1 pips
Saxo Bank 20 days $500 0.6 pips
IG Markets Unlimited $250 0.6 pips
CMC Markets Unlimited $0 0.7 pips
FP Markets Unlimited $100 0.1 pips
FXTM Unlimited $10 0.1 pips
AvaTrade 21 days $100 0.9 pips
HotForex Unlimited $5 0.1 pips
FXCM Unlimited $50 0.2 pips
Pepperstone 30 days $0 0.13 pips

About the Author

Filippo Ucchino

Co-Founder - CEO - Broker Expert
Filippo is the co-founder and CEO of InvestinGoal.com. He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector.
Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector.
With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

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Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.
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