Retail Forex trading in Iraq is in its infancy but presents tremendous growth potential amid a young population seeking economic prosperity in a politically and economically unstable country.
To help Iraqi Forex traders identify the most competitive and trusted Forex platforms here are our choices for the two best Forex brokers in Iraq.
- CFI Trade, Well-regulated long-established low spread broker.
- FP Markets, ECN trading with leverage up to 1:500.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- XM, Exception range of assets + negative balance protection.
Comparison of the Best Forex Brokers in Iraq
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Regulators | CySEC, FCA, FSA, FSC Mauritius, FSCA, SCA, VFSC | ASIC, CMA, CySEC, FSCA | CMA, FCA, FSC Mauritius, FSCA | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CySEC, DFSA, FSC Belize |
Year Established | 2005 | 2005 | 2011 | 2006 | 2009 |
Execution Type(s) | ECN/STP, Market Maker | ECN/STP | ECN/STP, Market Maker | Market Maker | Market Maker |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.4 pips ($4.00) | 1.2 pips | 0.1 pips | 0.9 pips | 0.1 pips |
Average Trading Cost GBP/USD | 0.4 pips ($4.00) | 1.4 pips | 0.2 pips | 1.5 pips | 0.2 pips |
Average Trading Cost Gold | $0.12 | $0.16 | $0.18 | $0.29 | $0.19 |
Trading Platform(s) | Other, MetaTrader 5, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, Proprietary platform |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
CFI Trade
In Summary Well-regulated long-established low spread brokerI rank CFI Trade among the best Forex brokers in Iraq due to its in-house AI trading assistant, Kaiana, powered by OpenAI, and Trading Transparency+ to help traders improve their market approach and ensure a distinct competitive advantage. Traders receive commission-free spreads from 0.4 pips, a well-balanced asset selection of 15,000+ trading instruments, and advanced trading infrastructure.
CFI Trade features MT5 with Trading Central services, including actionable trading recommendations and analyst views by TipRanks, TradingView, and its CFI Multi-Asset platform, available as a web-based platform and mobile app. The CFI Rewards program presents exclusive perks to qualifying traders.
Pros & Cons
- In-house AI trading assistant Kaiana, powered by OpenAI
- Quality trading tools, including TipRanks and Trading Central
- Excellent asset selection of 15,000+ trading instruments
- MT5, TradingView, and a proprietary trading platform
- Limited payment processors
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets ranks among the best Iraq Forex brokers on my listing as it features a well-balanced asset selection, including cryptocurrencies, ETFs, and bonds, and competitive, commission-based trading fees with raw spreads from 0.0 pips for a commission of $6.00 per 1.0 standard round lot. FP Markets also provides quality education to beginners.
Traders get a 12-plugin MT4/MT5 upgrade plus services by Trading Central and Autochartist. They may also use cTrader. The minimum deposit is a reasonable $100. Copy traders can diversify via FP Markets Copy Trading, embedded MT4/MT5/cTrader solutions, fee-based Signal Start, and the well-known Myfxbook Autotrade.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
FXTM
In Summary Best all-around broker with high floating leverage and fast executionThe FXTM Advantage account provides Forex traders with ultra-low trading fees featuring raw spread trading from 0.0 pips for a commission of $0.80 and $4.00 per 1.0 standard round lot. The minimum deposit is only $500 versus $20,000+ at competing brokers for similar conditions. The excellent price improvement technology lowers trading costs by an average of $3.00 per round lot, applicable on 97.18% of all trades. It makes FXTM one of the best brokers in Iraq.
FXTM upgrades MT4 with its Pivot Point Strategy plugin and has superb order execution with an average order execution time of 0.071 seconds.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- Limited choice of commodities
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade ranks among the best Forex brokers in Iraq due to its reasonable, commission-free fees, educational content, and choice of trading platforms. The well-balanced asset selection includes options, cryptos, and ETFs. Beginner traders get quality education on the AvaTrade website and industry-leading educational content via the spun-out Ava Academy.
Traders can use the proprietary WebTrader and AvaTradeGO with embedded Trading Central services. AvaTrade also has in-house developed specialized trading platforms, Ava Options and Ava Social. Algorithmic and copy traders get MT4/MT5 and VPS hosting for 24/5 low-latency trading. In addition, AvaTrade offers its Guardian Angel plugin for MT4.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
XM
In Summary Exception range of assets + negative balance protectionI consider XM among the best Iraq Forex brokers on my listing, as it offers unlimited swap-free trading for Islamic accounts. XM does not widen the spreads to compensate for lost income and provides Islamic traders with the same trading conditions as non-Islamic traders. The MT4/MT5 trading platforms get six exclusive technical indicators.
XM is a well-regulated and trusted broker with 10M+ traders and maintains an exceptional package of beginner education. The live education room is available Monday through Friday between 06:00 and 15:00 GMT, and the $5 minimum deposit makes XM accessible to all Iraqi Forex traders, boosted by deposit bonuses.
Pros & Cons
- Outstanding trading tools and loyalty program
- Low minimum deposit, high leverage*, and competitive trading cost
- Excellent research and education
- Trustworthy and transparent with generous bonuses and incentives
- Inactivity fee
Forex Trading in Iraq
Forex trading with one of the best Forex brokers in Iraq ensures Iraqi Forex traders have a trusted partner that segregates client deposits from corporate funds, offers negative balance protection, and low trading fees.
The lack of education is one of the most notable obstacles to Forex growth in Iraq, but the younger population drives the domestic industry forward. With an internet penetration of just below 75% and social media usage shy of 55%, social and copy trading rank among the most used Forex strategies. The mobile penetration exceeds 100%, placing mobile trading at the core of the Forex expansion across Iraq.
What to Look for in a Forex Broker from Iraq
Our best Forex brokers in Iraq review has focused on the below aspects.
All competitive Iraqi Forex brokers should offer the following:
- Regulation - Traders should look for 10+ years of operational experience and a clean regulatory track record.
- Low trading fees - Major currency pairs should not exceed 0.8 pips or $8.00 per 1.0 lot. Traders should also ensure positive swap rates exist on qualifying assets.
- Trading platforms - An algorithmic trading platform is crucial as 80%+ of Forex trading volume is algorithmic.
- Asset diversity - Iraqi traders should check that their Forex broker offers the assets they need to execute their strategy.
- Deposits/Withdrawals - Low to no minimum deposit and withdrawal amounts and no internal fees are paramount.
Forex Trading Regulations in Iraq
The Central Bank of Iraq (CBI) is the primary regulator of the Iraqi Forex market. Since Iraqi Forex traders primarily deal with international Forex traders, like the ones from our best Forex brokers in Iraq list, they trade outside CBI oversight.
How Much is the Maximum Forex Leverage in Iraq?
As available from the best Forex brokers in Iraq, the maximum Forex leverage usually maxes out at 1:500 with negative balance protection, but some Forex brokers may offer more. Iraqi resident traders must always use proper leverage risk management to avoid magnified trading losses.
How to Start Forex Trading in Iraq
Before opening an account with one of the best Forex brokers in Iraq, beginners should consider the tips below.
Here are some top tips on how to start Forex trading responsibly in Iraq:
- Start with gaining an in-depth education.
- Respect Forex trading as a profession requiring knowledge and skill.
- Trading psychology is a key separator between profitable traders and up to 90% of traders incurring losses.
- Understand the importance of leverage and its relationship to risk management.
- Leverage is an excellent and necessary tool if used properly.
- Risk management is critical to a trader’s success.
- Traders should create and execute a suitable trading strategy.
- Trading costs are the defining aspect of a competitive trading environment.
- Proper placement of take profit and stop loss levels is essential.
What is the Best Trading Platform in Iraq
The best trading platform in Iraq remains MT4 due to its versatility and upgradeability to create custom trading environments. The best Forex brokers in Iraq all offer MT4, which fully supports algorithmic, copy, and API trading.
Forex Trading Taxation in Iraq
All Forex profits generated with funds held inside Iraq are subject to taxation. The four-tier system has rates of 3%, 5%, 10% and 15%. Iraqi Forex traders should consult with a legal professional to seek tax advice in Iraq to ensure compliance with local rules and regulations.
Pros & Cons of Forex Trading in Iraq
Iraqi Forex traders should consider the pros and cons of Forex trading in Iraq before opening an account with one of the best Forex brokers in Iraq.
The pros of Forex trading in Iraq are:
- Lower capital requirements versus other assets
- 24/5 decentralized trading
- Passive income opportunities
- Frictionless financial transactions
- 80% of daily volume is algorithmic.
- Copy and social trading.
- PAMM/MAM accounts
The cons of Forex trading in Iraq are
- Traders fail to respect Forex trading as a skilled profession.
- Emotion-based decision-making
- A fundamental misunderstanding of Forex trading, its requirements, and possibilities
- Manual trading in an algo-dominated environment
- Disconnect between leverage and its relationship to risk management.
- Improper risk management
- A lack of sufficient trading capital and unrealistic trading expectations result in overtrading, frustration, and inefficient trading.
- A false sense of accomplishment from demo trading
- Abundance of scams and frauds
Bottom Line
Forex trading in Iraq remains in its infancy, but the growth potential is tremendous, and Forex brokers have taken notice. International Forex brokers handle all retail Forex trading activity in Iraq. We have conducted an in-depth review to determine the best Forex brokers in Iraq so Iraqi Forex traders can access the most competitive and trustworthy Forex trading environment.
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