Over-the-Counter (OTC) brokers offer stocks from broker-dealer networks and competitive prices. In this article, we reveal the pros and cons of our 15 Best OTC Forex Brokers and we review the features, tools, platforms, trading conditions and instruments these brokers offer.
Over-the-counter trading is a method of trading whereby trades are not made on a formal exchange but are instead made between two parties via a dealer network.
Trading with OTC brokers may give you market opportunities you would not usually get with other brokers and there will usually only be one buy price and one sell price per instrument.
Forex is one of the most common OTC instruments as currencies can easily be bought and sold via a network of banks instead of exchanges.
The major advantage of trading with OTC brokers is that trades can be done outside the usual market hours and companies that do not meet the requirements to be listed on major exchanges, can raise capital by being listed by an OTC broker.
In most cases, shares are much cheaper when bought through an OTC broker, which means you can theoretically buy double the shares with half capital.
Broker-dealer networks are not the same as centralized exchanges, such as NYSE, but they are still required to meet standards that are set by the Securities and Exchange Commission (SEC).
Trading with one of these brokers will give you access to most instruments (crypto, forex, stocks, bonds, derivatives and ADRs) other types of brokers offer and you will be able to trade on most well-known networks, such as the Best Market (OTCQX), the Venture Market (OTCQB), and the Pink Open Market.
These networks are operated by the OTC Markets Group and will give you access to instruments and unlisted stocks that are not available on standard exchanges, so you will probably have a much greater variety of assets to choose from.
Interactive Brokers
Overall Rating USD 0 USSEC, CFTC, ASIC, FCA 📱 Platforms Trader Workstation, IBKR mobile app, IBKR APIs ₿ Crypto No 💵 Account Currency AUD, CHF, TRY, USD, GBP, DKK, EUR, KRW, MXN, NZD, HKD, CAD, CNH, CZK, HUF, ILS, YEN, NOK, PLN, RUB, SGB, ZAR, SEK No 1:40 🛒 Instruments Forex, CFDs, Stocks, Options, Bonds, Mutual Funds, Commodities, Metals 🏛️ Visit Broker
4.3/5
Minimum Deposit
Regulators
Islamic Account
Leverage
Interactive Brokers offers premium trading tools and facilitates trading across 130 markets.
This is a beginner-friendly broker that guarantees low trading costs and transparency.
Interactive Brokers can be used to perform advanced analytics, use over 100 order types, trade in spot markets, make more informed decisions based on comprehensive reporting and use APIs.
There is a total of more than 7,000 CFD products that can be traded and over 100 Forex pairs, with access to 80 international market centres.
There is also a wide variety of educational content provided through the trader’s academy and StudentTradingLab that can be used with a demo account and other educational resources.
Interactive Brokers Pros and Cons:
| ✔️Pros | ❌Cons |
| Well regulated | Limited to Bank transfers for withdrawals and account funding |
| Good variety of trading products | Commission structure benefits only high volumes |
| Supports API trading | |
| 24 base currencies supported |
FXCM
Overall Rating USD 50 ASIC, FCA, FSCA 📱 Platforms Trading Station, MT4, NinjaTrader, ZuluTrade, Capitalise AI, TradingView ₿ Crypto Yes 💵 Account Currency EUR, USD, GBP, CHF Yes 1:200 🛒 Instruments Forex, Shares, Indices, Crypto, Commodities 🏛️ Visit Broker
4.6/5
Minimum Deposit Regulators Islamic Account Leverage
FXCM offers a rebate program and a referral rewards program for clients, and also gives users the option to update their accounts for more trading benefits.
FXCM provides many different features and clients have access to advanced charting, algorithmic and API trading tools, and more.
This is a beginner-friendly broker that offers a great selection of educational content that can be used along with a demo account.
FXCM accommodates institutional clients, as well as copy traders, active traders and CFD traders.
FXCM Pros and Cons:
| ✔️Pros | ❌Cons |
| Great selection of research tools | High bank withdrawal fees |
| Variety of educational resources | Limited products |
| Referral Program | Penalty fees |
| Allows Copy Trading |
Plus500
Overall Rating USD 100 FCA, CySEC, ASIC, FMA 📱 Platforms Plus500 app ₿ Crypto Yes 💵 Account Currency USD, GBP, EUR, CHF, AUD, JPY, PLN, HUF, CZK, CAD, TRY, SEK, NOK, SGD Yes 📊 Leverage 1:300 🛒 Instruments Forex, Indices, Cryptocurrency, Commodities, Shares, Options, ETFs 🏛️ Visit Broker
4.7/5
Minimum Deposit Regulators Islamic Account
Plus500 was founded in 2008 and has more than 22 million clients.
Plus500 offers commission-free trading with tight spreads and real-time quotes.
Plus500 is an FTSE 250 company that is listed on the London Stock Exchange.
Plus500 Pros and Cons:
| ✔️Pros | ❌Cons |
| Beginner-friendly | No copy trading or hedging |
| Negative Balance Protection | Inactivity fees |
| 10+ base currencies | No USA clients |
| Tier-1 regulations |
XM
Overall Rating USD 5 ESMA, CySEC, ASIC, FCA, IFSC, DFSA 📱 Platforms Desktop MT4 and MT5, Mobile MT4 and MT5, XM mobile app, Web platform ₿ Crypto No 💵 Account Currency USD, EUR, GBP, JPY, CHF, AUD, HUF, PLN, RUB Yes 1:1000 🛒 Instruments Commodities, Forex, Stocks, Crypto, Metals, Shares, Energies 🏛️ Visit Broker
4.1/5
Minimum Deposit Regulators Islamic Account Leverage
XM offers 4 types of trading accounts.
The Micro, Standard and XM Ultra Low accounts can be converted to swap-free accounts, but the XM Shares account is fully Islamic.
The XM Shares account can be funded using USD and does not allow leverage. This account requires a minimum deposit of $10,000.
All accounts have negative balance protection.
All the other accounts require a minimum deposit of $5 and the Micro and Standard accounts can be sued for hedging and scalping.
XM Pros and Cons:
| ✔️Pros | ❌Cons |
| Low min. deposit | No USA clients |
| 5+ base currencies | Inactivity fees |
| Many regulations | |
eToro
Overall Rating USD 50 FCA, CySEC, ASIC 📱 Platforms eToro app, OpenBook, eToro CopyTrade ₿ Crypto Yes 💵 Account Currency USD, AUD, CNY, CAD, GBP, EUR, JPY, RUB Yes 1:30 🛒 Instruments Stocks, Commodities, Indices, Forex, ETFs, Cryptocurrencies 🏛️ Visit Broker
4.2/5
Minimum Deposit Regulators Islamic Account Leverage
The eToro swap-free account requires a minimum deposit of $1,000.
This account also gives you interest-free leverage.
No fees are charged for account management and it is a commission-free account.
eToro Pros and Cons:
| ✔️Pros | ❌Cons |
| Good for social trading | High forex fees |
| Beginner-friendly | Withdrawal fees |
| 25mil+ clients | |
IG
Overall Rating USD 0 FCA, ASIC, CFTC, FINMA, MAS, JFSA, DIFC 📱 Platforms MT4, ProRealTime, L2 Dealer ₿ Crypto Yes 💵 Account Currency USD, GBP, AUD, EUR, SGD, HKD Yes 1:30 🛒 Instruments Crypto, Forex, Indices, Shares, Commodities 🏛️ Visit Broker
4.2/5
Minimum Deposit Regulators Islamic Account Leverage
IG have a strong focus on putting the customer first and by doing so have built a phenomenal reputation since opening their doors in 1974.
A pleasant trading experience awaits traders thanks to IG’s great trading platforms which come fully equipped with comprehensive training and research material.
Getting an account with IG is simple but you will need to be patient because of their verification process.
Customer support is capable of quickly resolving your issues and normally have short turnaround times.
IG Pros and Cons:
| ✔️Pros | ❌Cons |
| Good trading platforms | Few products offered |
| Educational tools are good | Long turnaround times on phone support |
| Low trading fees | |
| No minimum deposit | |
| Low fees for CFD trading | |
| Well regulated |
Saxo Bank
Overall Rating USD 2000 FCA, ASIC, FSC, JFSA, FSA, MAS 📱 Trading Desk SaxoTraderGO, SaxoTraderPRO ₿ Crypto Yes 📈 Total Pairs 182 No Low 🕒 Account Activation Time 24 Hours 🏛️ Visit Broker
4.3/5
Minimum Deposit Regulators Islamic Account Trading Fees
Saxo Bank was founded in 2991 and is regulated by the FCA and FSA. Clients can use Saxo bank to trade with more than 19,000 Stocks, over 9,000 CFDs, 182 Forex pairs, and a variety of ETFs, bonds, Forex options and Mutual funds.
Saxo bank offered 3 types of accounts for traders, corporate entities and professionals.
Traders can use SaxoTraderGO to access fundamental and technical analysis tools, charts, and performance reports, and the platform can be used with Expert Advisors and third-party APIs.
Saxo Bank Pros and Cons:
| ✔️Pros | ❌Cons |
| Competitive proprietary platform | Minimum deposit is high |
| Advanced research data and tools | Customer support is lacking |
| Withdrawals are free | Penalty fee for inactivity |
| Forex fees are low |
ThinkMarkets
Overall Rating USD 0 FSCA, FCA, ASIC, BMA 📱 Platforms MT4, MT5, ThinkTrader ₿ Crypto Yes 💵 Account Currency ZAR, AUD, NZD, USD, EUR, GBP, SGD, CAD, CHF Yes 1:400 🛒 Instruments Forex, Bonds, Stocks, Commodities, ETFs, Indices, Crypto 🏛️ Visit Broker
4.8/5
Minimum Deposit Regulators Islamic Account Leverage
ThinkMarkets was founded in 2010 as a CFD and Forex brokerage in London. This is an FSCA-regulated broker with low-cost trading and more than 1,200 market instruments to trade with.
Traders can choose from a variety of 1,200 Shares, 38 Currency pairs, Crypto coins, 13 global Indices, Metals and Commodities.
ThinkMarkets is compatible with MetaTrader 4, but ThinkTrader is the proprietary platform of this broker and it has more than 80 indicators, 50 drawing stools and 14 types of charts.
ThinkMarkets Pros and Cons:
| ✔️Pros | ❌Cons |
| Minimum deposit is low | No fixed spread accounts |
| Advanced trading features | Web-based trading not offered |
| Zero-commission accounts | Commission payable on some accounts |
| VPS services | |
| Low spreads |
FP Markets
Overall Rating USD 100 ASIC, CySEC 📱 Platforms MetaTrader 4, MetaTrader 5 ₿ Crypto Yes 💵 Account Currency EUR, GBP, USD, AUD, CAD, SGD, HKD, JPY, NZD, CHF Yes 1:500 🛒 Instruments Forex, Shares, Metals, Indices, Commodities, crypto 🏛️ Visit Broker
4.7/5
Minimum Deposit Regulators Islamic Account Leverage
If you are interested in trading CFDs, we highly recommend opening an account with FP Markets.
This broker was founded over 15 years ago and is regulated by ASIC and CySEC.
With FP Markets, tight spreads are guaranteed and you can use the MetaTrader platforms or the [rp[rietary FP Markets app to trade Forex, Shares, Commodities, Metals and Indices.
FP Markets Pros and Cons:
| ✔️Pros | ❌Cons |
| 10,000+ CFDs | Fixed spreads not offered |
| Tier-1 regulations | No trading bonuses |
| More than 10 base currencies |
CMC Markets
Overall Rating USD 0 FCA 📱 Platforms MT4, CMC Markets Next Generation app ₿ Crypto Yes 💵 Account Currency GBP, EUR, USD, AUS, CAD, NOK, NZD, PLN, SEK, SGD Yes 1:30 🛒 Instruments Forex, Indices, Crypto, Commodities, Shares, Treasuries, ETFs 🏛️ Visit Broker
4.2/5
Minimum Deposit Regulators Islamic Account Leverage
CMC Markets facilitates the trading of Commodities, Crypto, Shares, ETFs Forex, Treasuries and Indices, and accounts can be funded using NZD, SGD NOK, SEK, EUR, AUS, PLN, USD, GBP or CAD.
As a CMC Markets client, you will be able to choose between 3 accounts and we recommend this broker if you have never traded before.
CMC Markets Pros and Cons:
| ✔️Pros | ❌Cons |
| 300+ currency pairs | Not many regulations |
| Low spreads guaranteed | No trading bonuses |
| FCA-regulated | Inactivity is penalised |
HFM (HotForex)
Overall Rating USD 5 FCA, FSA, FSCA, DFSA, CySEC, FSC 📱 Platfoms MT4, MT5 ₿ Crypto No 💵 Account Currency USD, ZAR, USD, NGN Yes 1:1000 🛒 Instruments Forex, Metals, Energies, Indices, Shares, Commodities, Bonds, Stocks, ETFs 🏛️ Visit Broker
4.2/5
Minimum Deposit Regulators Islamic Account Leverage
HFM provides its clients with 5 account types, as well as the option to use demo accounts and Islamic accounts.
With this broker, you can trade Energies, Stocks, ETFs, Indices, Shares, Commodities, Forex, Metals and Bonds, and use the MT4 and MT5 trading platforms.
HFM is regulated by FCA, FSCA, DFSA and FSA, and has been rated one of the top 100 companies in world finance.
HFM Pros and Cons:
| ✔️Pros | ❌Cons |
| Low minimum deposit | 4 base currencies |
| Several regulations | Inactivity fees |
| VPS services | High trading fees |
| Loyalty program |
FXTM
Overall Rating USD 10 CySEC, FCA, FSC 📱 Platforms MT4, MT5, FXTM Trader ₿ Crypto No 💵 Account Currency USD, EUR, GBP, NGN Yes 1:2000 🛒 Instruments Metals, Stocks, CFDs, Indices, Forex, Commodities 🏛️ Visit Broker
4.1/5
Minimum Deposit Regulators Islamic Account Leverage
FXTM is a CySEC and FCA-regulated forex broker that offers a well-developed proprietary platform, as well as compatibility with MetaTrader 4 and 5.
This broker requires a minimum deposit of only 10 USD and accepts GBP, NGN, USD and EUR as funding currencies for accounts.
This broker is perfect for copy traders, either as strategy providers or followers, and more than 5,000 strategies are currently available.
FXTM Pros and Cons:
| ✔️Pros | ❌Cons |
| Low minimum deposit | Not available in US |
| High maximum leverage | Inactivity fees |
| MetaTrader support |
IC Markets
Overall Rating USD 200 FSA, CySEC, ASIC 📱 Platforms MT4, MT5, cTrader ₿ Crypto Yes 💵 Account Currency AUD, USD, JPY, EUR, NZD, SGD, GBP, CAD, HKD, CHF Yes 1:500 🛒 Instruments Stocks, Commodities, Indices, Forex, Bonds, Crypto, Futures 🏛️ Visit Broker
4.8/5
Minimum Deposit Regulators Islamic Account Leverage
IC Markets is an ASIC and CySEC-regulated ECN broker that offers its clients 3 types of accounts, as well as demo accounts and swap-free accounts.
A minimum deposit of 200 USD is required and your account can be funded using NZD, HKD, CHF, JPY, EUR, GBP, USD, SGD, CAD or AUD.
You can trade Forex, Indices, Crypto, Commodities, Bonds, Stocks and Futures with IC Markets and we recommend this broker if you are considering trading for the very first time.
IC Markets Pros and Cons:
| ✔️Pros | ❌Cons |
| 1,700+ instruments | No US clients |
| 5+ base currencies | No trading bonuses |
| Top-tier regulations |
Pepperstone
Overall Rating USD 200 ASIC, FCA, DFSA, SCB, CMA, CySEC, BaFIN 📱 Platforms MT4, MT5, cTrader ₿ Crypto Yes 💵 Account Currency USD, GBP Yes Low 🛒 Instruments Forex, Crypto, Shares, ETFs, Indices, Commodities 🏛️ Visit Broker
4.0/5
Minimum Deposit Regulators Islamic Account Leverage
As a Pepperstone client, you will have access to Indices, Shares, Forex, Commodities, ETFs and Crypto, and you can trade on MetaTrader 4 and 5 and cTrader.
This broker is regulated by DFSA, BaFIN, ASIC, FCA, CMA, SCB and CySEC, and 2 accounts are provided (in addition to demo and swap-free accounts).
We recommend Pepperstone for beginners because plenty of resources are provided, but this broker is also suitable for professionals who want to use Autochartist, Figaro and other SMART trading tools.
Pepperstone Pros and Cons:
| ✔️Pros | ❌Cons |
| Multiple accounts | Minimum deposit is high |
| Many regulations | |
| Trading bonuses | |
| No inactivity fees |
Eightcap
Overall Rating USD 100 ASIC, SCB 📱 Platforms MT4, MT5 ₿ Crypto Yes 💵 Account Currency AUD, USD, EUR, GBP, NZD, CAD, SGD No 1:500 (ASIC) 🛒 Instruments Forex, Commodities, Indices, Shares, Crypto 🏛️ Visit Broker
3.2/5
Minimum Deposit Regulators Islamic Account Leverage
1:30 (SCB)
Eightcap is an ASIC-regulated broker that offers more than 1,000 instruments.
Eightcap is a beginner-friendly broker and plenty of educational guides are provided on the website.
Eightcap was founded in 2009 and is a great option for EA trading.
Eightcap offers 2 types of accounts with spreads from 0 pips.
Eightcap Pros and Cons:
| ✔️Pros | ❌Cons |
| Tight spreads | No Islamic accounts |
| Commission-free account | No trading bonuses |
| 5+ base currencies supported | |
| Regulated by ASIC |
Conclusion
OTC trading exposes traders from all over the world to a much broader variety of instruments. These networks also make it possible for many companies to get their shares listed so that they can generate revenue.
OTC brokers use a special broker-dealer network to give traders and investors access to instruments they would not be able to find on other exchanges.
OTC networks are not the same as NYSE and other major exchanges and may seem risky because of this, but our list of brokers are regulated and all OTC networks are required to comply with SEC standards and policies.
We hope that this review of the 15 Best OTC Forex Brokers will help you find a broker that aligns with your trading goals so that you can trade with confidence.
Good luck with your trading!
FAQ
What does “OTC” mean?
OTC means “Over-the-Counter”
What is an OTC broker?
An OTC broker sells securities and instruments via broker-dealer networks that are operated by the OTC Markets Group.
Is it safe to trade with OTC brokers?
Trading is generally risky, but our list of OTC brokers are regulated and seem safe. OTC networks are also required to comply with SEC.
What instruments can I trade with OTC brokers?
OTC brokers offer:
- Stocks
- Forex
- Bonds
- Cryptocurrencies
- Derivatives
- American Depositary Receipts (ADRs)
What OTC networks can I trade on?
- OTCQX: includes foreign companies that list on foreign exchanges and some American companies that plan to list on the NYSE or the NASDAQ in the future
- OTCQB: also known as the “venture market”, listing a number of developing companies
- Pink Sheets: Unregistered companies – many opportunities here but the riskiest network
