Looking for the top HFT forex brokers? After testing 80 brokers this year, our experts have identified the 7 best options tailored to diverse trading needs, complete with practical tips.
Our team of experts has identified brokers’ strengths and weaknesses using FXEmpire’s comprehensive methodology. Here’s how we test.
Now let’s dive into the selected brokers.
FP Markets was founded in 2005 and is headquartered in Australia. It has a couple of top-tier licenses, such as CySEC and ASIC, and maintains excellent execution standards, which I consider essential for high-frequency trading. With an average execution speed of under 50 milliseconds and a guaranteed ‘best execution policy,’ clients of FP Markets can rely on fast order execution.
High-Frequency Trading Features:
I opened a Raw account, which is more suitable for high-frequency trading in terms of fees. It offers raw spreads starting from 0.0 pips and a $6 round-turn commission per traded lot (100,000 units). I executed a full-sized EURUSD trade with a $10 value of trade (0.4 pips spread x $10 pip value + $6 commission), which I assessed to be below the industry average.
In addition to MetaTrader 4&5, cTrader, and iRESS, FP Markets incorporates the Mottai platform, which is what makes the broker such a great choice for high-frequency trading. The standout advantage of using a DMA Execution Model is its ability to facilitate low-latency trading, resulting in rapid order execution. Traders can also use Mottai for advanced entries via its OCO (One-Cancels-the-Other) orders.
Mottai’s parked orders, which allow an order ticket to be filled in advance ahead of a trading opportunity and wait for it to develop, are another standout feature, which I found ideal for precision trading.
IC Markets was founded in 2007 and holds a couple of top-tier licenses, including CySEC and ASIC. The broker offers a broad range of tradable instruments from different markets, including FX pairs, commodities, CFD shares, indices, and more.
High-Frequency Trading Features:
I tested IC Markets’ Raw cTrader account, which I consider ideal for high-frequency trading because of its competitive pricing and sophisticated platform. I evaluated the account type’s offering by executing a full-sized EUR/USD position (100,000 units).
I measured a 0.2 pips spread combined with a $6 round-turn commission and thus calculated a $8 value of trade (0.2 pips x $10 pip value +$6 commission), which is below the $10 industry average.
cTrader itself is feature-rich and has an intuitive layout. This platform, in my opinion, is the best suited for high-frequency trading because it was specifically designed for low-latency order execution. It means you can execute multiple orders within a relatively narrow time span with high precision. I also like that it gives me greater flexibility to scale price action up and down and thereby better understand price action behavior.
TMGM is a Sydney-based derivatives broker that was established in 2013. It incorporates the iRESS platform offering access to over 10,000 share CFDs from major exchanges globally. Because of this variety, we selected TMGM as the best broker for high-frequency stock trading.
High-Frequency Trading Features:
Together with its wide offering of tradable instruments, the iRESS platform also affords stock traders advanced charting tools, real-time price feed, and access to deep market liquidity. All of this allows for fast order execution, which I consider essential for precise high-frequency trading. Also, I found that TMGM has no minimum distance requirements for stop-loss orders, meaning you can exercise tight risk management.
In addition, TMGM also incorporates TradingCentral, one of the industry’s best signal providers. The broker’s clients can use it to inform themselves about currently developing trading opportunities on instruments from various markets, including the stock market.
I opened a Raw Spreads account with TMGM, which has an ECN (Electronic Communications Network) execution model. The account type features raw spreads starting from 0.0 pips and a $7 round-turn commission per traded lot (100,000 units). I assessed that TMGM’s trading fees meet the industry average.
Investment bank Swissquote holds an impressive 7 licenses from top-tier regulators, such as FINMA, FCA, and CySEC. Additionally, the bank, which was founded in 1996, is listed on the Swiss stock exchange which underscores its reliability as only the most dependable brokers are publicly traded.
High-Frequency Trading Features:
I opened a Forex & CFDs account with Swissquote offering over 450 trading and investing products and was impressed by the overall transparency of the website. But the most exceptional feature for me was Swissquote’s professional-grade platform – Advanced Trader. It has an intuitive design, highly detailed charts, and advanced order types, such as OCO and IF-DONE orders. It also incorporates over 50 analytical tools.
In my estimation, what makes Advanced Trader the best choice for high-frequency trading is a combination of an impressive 9 milliseconds execution speed, some of the best third-party tools (Autochartist and Trading Central), and FIX API solutions for advanced algo-trading.
I also assessed in detail its fees and found them generally above average. That’s given its commission-free trading and floating spreads starting from 1.8 pips.
Established in 1974, IG has operated for nearly half a century and has become one of the most recognizable and trusted names in the financial industry. The company is headquartered in London and is listed on the London Stock Exchange (LSE), attesting to its stability and security. The broker offers over 17,000 instruments across FX pairs, commodities, indices, share CFDs, ETFs, cryptocurrencies, and more.
What makes it perfect for high-frequency algo trading is its API offering coupled with DMA (Direct Market Access) execution, which is especially suitable for scalping. Additionally, I clocked IG’s average execution speed at 14 milliseconds, below the industry average.
High-Frequency Trading Features:
I assessed the CFD Trading account, which supports commission-free trading (except for share CFDs) and floating spreads from 0.6 pips. I found IG’s prices to be below the industry average.
IG also offers a choice of versatile platforms, all of which are suitable for high-frequency algo trading. I tested all three and found the L2 Dealer DMA platform most suitable for scalping share CFDs and FX pairs.
The platform offers a wide choice of volume metrics, which can be used to assess the underlying market liquidity. This allows you to time your entries and execute precise entries and exits in and out of the market. L2 Dealer DMA also has a wide offering of order types and analytical tools.
tastyfx is a new brand name of IG US and a part of IG Group, which is listed on the London Stock Exchange and is regulated worldwide. More than 82 forex pairs are available to trade on with zero commission and competitive spreads.
In our live fee test, I found the spread for EUR/USD averaged 0.8 pips, beating the industry average of 1.0 pips. tastyfx is an excellent option for high-frequency trading as it also offers volume-based rebates – the more you trade, the higher your rebates. For example, a notional monthly trading volume between $50 million and $100 million provides a 5% rebate, meaning you save $5 per million traded.
High-Frequency Trading Features:
Algorithmic traders are spoilt for choice with MT4 and ProRealTime. MT4 has been the gold standard for forex algorithmic trading for decades. It does require programming knowledge, but the MetaTrader Marketplace offers free and paid-for indicators and automated trading strategies.
I have used ProRealTime with tastyfx for many years as it offers its own ProBuilder coding language. This enables anyone without programming knowledge to create indicators, market screeners, and automated strategies using simple language. The ProRealTime Community is an extensive resource for finding scripts to use in ProRealTime or asking for help building your own.
Another excellent feature tastyfx offers is algorithmic trading signals from Autochartist. These are available directly from the tastyfx Web Platform and offer real-time technical analysis chart patterns developing on the major currency pairs across different timeframes.
To make sure you are dealing with a trustworthy partner, you need to make sure that the broker entity you choose is tightly regulated and complies with all industry safety requirements.
I have broken down the most important safety mechanisms to look for in a broker below:
Generally, offshore regulators offer higher leverage but weaker overall protections. In contrast, top-tier regulators seek to limit the maximum market exposure afforded to traders via leverage by capping it.
Read more about Best regulated forex brokers.
Brokers may offer multiple account types with varying pricing structures. To help you decide, let’s explore two common account types: STP and ECN.
The key difference lies in their pricing. STP accounts typically offer commission-free trading with floating spreads, while ECN accounts charge fixed commissions but provide raw spreads starting from 0.1 pips. At first glance, STP accounts might seem more appealing, as you only pay the spread instead of both spread and commission.
Discover Best STP forex accounts and Best ECN forex accounts.
Many brokers recognize the psychological impact of such thinking and may exploit it by raising spreads on their STP accounts, making them less competitive. Here’s a quick test you can use to compare a broker’s ECN and STP accounts.
Take an instrument, like the EURUSD, with a spread of 0.9 pips on the STP account and 0.1 pips on the ECN account. Assume a $6 commission for trading 1 lot (100,000 units). With a EURUSD pip value of $10, you can calculate the trade cost using the formula: trade value = spread x pip value + commission. Plugging in these values reveals how competitive the broker truly is.
Account Type | Spread | Commission | Net Cost |
STP | 0.9 | $0 | $9 |
ECN | 0.1 | $6 | $7 |
This is just a hypothetical example, but hopefully, it illustrates how more can be less in trading. So it’s worthwhile evaluating the costs of a broker you consider opening an account with for yourself before doing so. And if you are still uncertain, you can always check out our database of reviews to sort out the most competitive brokers.
Check out our list of Best lowest spread forex brokers.
A trading platform is your window into the market. It allows you to observe price action behavior and study potential opportunities for placing orders. Technical traders use a platform’s array of indicators, drawing tools, and other features to examine various price patterns, changes in volatility, liquidity, and so on in order to gauge the most favorable times to enter or exit the market.
The best platforms are also the most versatile ones. They include a wide spectrum of technical indicators, such as Fibonacci retracement levels, oscillators, trend-based and range-based indicators, and others, as well as drawing tools, such as trend lines, channels, wedges, etc. They also allow you to easily scale price action up and down.
Read more about Best MT4 brokers and Best MT5 brokers.
Here are some of the features to look for when applying HFT:
Check out our dedicated guide on Best forex trading platforms.
Here is a quick rundown of what high-frequency traders must avoid:
This strategy involves opening large trades to generate substantial returns from minor price shifts. Scalpers seek to profit from small price changes, executing multiple high-volume orders within a brief period, lasting seconds to minutes. They focus on technical analysis, trading on patterns and setups like breakouts, wedges, and triangles.
Read more about Best forex brokers for scalping.
Since HFT requires quick decision-making in volatile environments, human errors will always pose great risks to the successful execution of trades. Whether it be ‘fat fingers’ trading much higher volumes than initially desired or entering the market prematurely due to anxiety. To mitigate these risks, many HF traders seek to automate their strategies. That way, they can enter and exit the market with huge precision each time a set of predetermined parameters is met.
Once you have backtested and developed a successful strategy for algo trading, you can improve its overall performance with trading APIs and Virtual Private Servers (VPS). Both are commonly used to ensure low-latency trading and decrease the risk of negative slippage.
Check out our picks of Best forex brokers with trading API.
High-frequency trading is a complex and multifaceted field, laden with potential obstacles that can be challenging to pinpoint. Since various factors can lead to unexpected risks, often all at once, it’s vital to have a clear understanding of what might go wrong. That is why I have outlined the three major types of risk traders may face in the world of HFT:
Scammers rely on traders’ gullibility. One tactic fraudsters employ is promising quick and easy profits at no risk to the trader. Often, scammers use labels that closely resemble the brands of real and legitimate companies. That is why regulators like the FCA have registers where traders can read about such fraudulent companies pretending to be others.
Another important consideration is online safety. Be cautious about where you leave your personal information. Registering your details on suspicious pop-ups that promise enormous profits could lead to your contact information landing on a scammer’s dialing list. Remember, no licensed broker would make unsolicited cold calls.
The next time you get contacted out of the blue with promises of becoming the next Warren Buffet, you must remember that you are most likely speaking to a scammer. In my opinion, nowhere is the “if something sounds too good to be true…” saying more accurate than in the world of trading. That is why you should do your due diligence before opening an account with any broker.
At FX Empire, we’ve developed a unique approach to evaluating forex and CFD brokers globally, focusing on traders’ needs and goals. Our aim is to deliver a detailed analysis of each broker’s strengths and weaknesses, aiding our readers in making well-informed trading decisions.
Our dedicated team works tirelessly to keep our system current with market trends, evaluating brokers across nine key categories using over 250 variables. These include Trust, Fees, Account Types, Tradable Instruments, Platforms and Tools, Deposits and Withdrawals, Customer Support, Research, and Education.
We prioritize objectivity in our rigorous reviews, avoiding personal bias. This involves examining broker licenses, client agreements, and overall transparency. Our process includes opening live accounts with brokers to test their services firsthand and comparing spreads, swaps, and commissions against industry averages.
We assess platform functionality, the variety and types of tradable instruments, customer support reliability, and the quality of research and educational content.
In this guide, we categorized our top picks based on different trading needs and experience levels. Our criteria for selection included tight regulation, fast execution speeds (under 50 milliseconds), and versatile platforms that support high-frequency and automated trading strategies.
We chose brokers with account types favorable for high-frequency trading (HFT), examining their execution models, spreads, swaps, commissions, and the diversity of tradable instruments.
Our editorial integrity is upheld by strict guidelines and objective review standards. Learn more about our review process.
The team of forex and CFD analysts and editors at FXEmpire is composed of trading industry professionals and seasoned financial journalists. Our experts have been published on leading financial websites such as Investopedia and Forbes. In addition, they all have extensive trading experience.
Dan Blystone began his career in the trading industry in 1998 on the floor of the Chicago Mercantile Exchange. Later Dan gained insight into the forex industry during his time as a Series 3 licenced futures and forex broker. He also traded at a couple of different prop trading firms in Chicago. Dan is well-equipped to recommend the best forex brokers due to his extensive experience and understanding of the brokerage industry.
Jitan Solanki is a professional trader, market analyst, and educator. He day trades major currency and index markets and focuses on swing trading US equities and commodities. A qualified Market Technician, Jitan also works with trader education and brokerage companies on various projects. These include market analysis, live trading events, and broker reviews. As an experienced trader and educator, Jitan brings all his qualities in action when reviewing and recommending brokers.
Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.
In more than 15 years of trading in the financial markets, Vladimir dealt with a wide range of brokers and financial instruments. His career as a day-trader at a proprietary trading firm goes back to 2007. Later, Vladimir turned to longer time frames and became an independent trader and analyst managing his own portfolio. Using his experience, he helps traders find the best broker in his reviews.
Having been a retail trader since 2013, Plamen has gained an in-depth understanding of the challenges that novice traders face today. His expertise is swing trading and day trading with a heavy emphasis on psychological and fundamental analysis. Plamen’s favourite trading instruments include FX majors and gold. He earned a Bachelor's degree in Economics and International Relations. Plamen's broad experience has equipped him with the expertise to recommend the best forex brokers.
At FXEmpire, we strive to provide unbiased, thorough and accurate broker reviews by industry experts to help our users make smarter financial decisions.