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Best EUR-USD Forex Brokers
Forex Trading: The EUR/USD Forex Currency Pair
The EUR/USD is a major forex currency pair and is among the most traded currency pairs in the world. According to the Bank of International Settlements (BIS), US dollar trades accounted for 88% of the daily turnover of OTC forex instruments in 2016. This amounted to a daily average of US$4,438 billion. The Euro accounted for 31% of the daily forex OTC turnover which amounted to an average of $US1,591 per day.
Because the US dollar and the Euro are the two largest currencies in the world, significant numbers of multinational corporations conduct business between the US and the European economies. This gives rise to the need to hedge against foreign exchange risk which is one of the main reasons why the EUR/USD is a popular trading pair.
In addition, due to the liquidity of the two currencies, the spreads are relatively low, making trading opportunities attractive for retail traders.
At the end of trading on Friday, February 24, 2017, the currency pair closed at a price of 1.0563, a 0.16% fall from the previous close. The volatility of the EUR/USD currency pair during the last 10 weeks was 0.85%, with the pair moving by some 88.86 pips during the period.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Best Forex Brokers for Trading EUR-USD
Here are the best forex brokers for trading the EUR-USD.
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IG
- 9.9/10 Overall
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Saxo Bank
- 9.7/10 Overall
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Interactive Brokers
- 9.9/10 Overall
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CMC Markets
- 9.6/10 Overall
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TD Ameritrade
- 9.3/10 Overall
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FOREX.com
- 9.4/10 Overall
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City Index
- 9.3/10 Overall
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XTB
- 9.1/10 Overall
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eToro
- 8.8/10 Overall
Fundamental Factors Affecting the EUR/USD
There are several fundamental factors that may affect the EUR/USD currency pair, with the more impacting factors being interest rates and employment numbers. Other factors include political decisions, Gross Domestic Product (GDP), trade balances and retail sales, and Consumer and Producer Price Indices.
Brexit has had a negative impact on not only the Pound Sterling but also the Euro, with the euro falling by some 1% versus the US dollar since the June 23rd referendum in 2016. Factors that are likely to affect the EUR/USD in 2017 include Trump policies, European economies, and interest rates.
There is some amount of uncertainty surrounding what will happen to the dollar if President Trump makes good on his promises of border tariffs and taxes. This may lead to an increase in the real effective exchange rate. If the Federal Reserve increases interest rates in the US, this is likely to create greater demand for the dollar, pushing up the exchange rate.
How to Trade the EUR/USD
Trading the EUR/USD through a CFD broker is a popular way of trading among retail traders. With CFD trading, it is advisable to use a regulated CFD broker such as London Capital Group (LCG), since trading is supervised and therefore is likely to present a safer trading environment.
Brokers allow traders to buy and sell currencies using their computers or mobile devices.
Some of the advantages of CFD trading with a regulated broker include:
- The opportunity to trade several different currency pairs with smaller deposit requirements than traditional trading methods. CFD brokers may allow for trading with margin deposits ranging between 2% and 10%. With traditional trading, much larger deposits, sometimes as much as 50%, are usually required. It is important to remember that leverage can go both ways and amplify both losses and profits.
- For larger deposit sizes, reputable brokers such as LCG, and ECN accounts are available which means tighter spreads. However, this will only prove beneficial for high-volume traders due to commission structures. LCG offers traders up to 60 forex pairs.
- The ability to trade smaller lot sizes to a minimum of 0.01 lots per trade
- Access to live feeds, charting information, and education
Summary: Trading The Major Forex Pair: EUR/USD
The EUR/USD currency pair is a popular choice among traders. The pair is characterized by a high amount of liquidity which gives rise to relatively smaller spreads. Using a CFD broker is a popular way to trade the pair given the tighter spreads, smaller deposit requirements, greater leverage, access to several markets, and trading support.
BrokerNotes.co 2023 Overall Rankings
To recap, here are our top forex brokers for 2023, sorted by Overall ranking.
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At BrokerNotes.co, our data-driven reviews of online brokers are based on our own extensive testing of each broker's products and services as well as the qualified observations of our expert editorial team. In conjunction with our sister site, ForexBrokers.com, we’ve published well over 100,000 words of research and collected thousands of data points across hundreds of variables. Our in-depth trading guides are created with the same rigorous, data-driven approach.
Our proprietary Trust Score rating system tracks data from over 100 regulatory jurisdictions to help forex traders understand the regulatory status of their forex broker and choose a broker that they can trust.
Our editorial team is led by Steven Hatzakis, an industry veteran with decades of experience and a deep understanding of the forex market. Our team conducts thorough testing on a wide range of brokers, platforms, products, technologies, third-party trading tools, and mobile apps. We also test for the availability of high-quality educational content, actionable market research resources, and the accessibility and capabilities of mobile platforms. All of our ratings and rankings are based on the collection and validation of thousands of data points and our in-depth product testing.
Part of our testing process involves in-depth research into commissions and fees. We dive into each broker’s trading costs, such as VIP rebates, inactivity fees, custody fees, bid/ask spreads (we always strive to determine the average spreads for each broker to better serve our readers), and a variety of other fee-based data points.
All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running the latest version of macOS to test trading on the go.
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Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
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IG
Saxo Bank
Interactive Brokers
CMC Markets
TD Ameritrade
FOREX.com
City Index
XTB
eToro
Swissquote
AvaTrade
FXCM
Plus500
Capital.com
XM Group
Pepperstone
OANDA
Admiral Markets
FP Markets
IC Markets
Markets.com
FxPro
Tickmill
Fineco Bank
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DooPrime
Vantage
BDSwiss
HFM
FlowBank
HYCM (Henyep Capital Markets)
Trading 212
ThinkMarkets
Eightcap
Trade Nation
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VT Markets
TMGM
ACY Securities
easyMarkets
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IronFX
Exness
Spreadex
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Trade360
Axi
GKFX
Vestle
Octa
FXOpen
TeleTrade
FXPrimus
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LegacyFX
FXGT.com
ATFX
Xtrade
xxxRIP UFX