When selecting a forex broker, it’s essential to assess the investment products they offer. A well-rounded selection of investment options can significantly enhance your trading strategy by providing more diversification and opportunities to profit across different markets. While forex trading is at the core of many brokers’ offerings, top-tier brokers also provide access to a range of other investment products, such as commodities, indices, stocks, and cryptocurrencies.

This guide will explore how to compare forex brokers based on their investment products, enabling you to make an informed decision that aligns with your trading goals and strategies.

Key Factors to Consider When Comparing Forex Brokers’ Investment Products

1. Variety of Currency Pairs

The primary product for many traders is currency pairs. However, the depth of offering varies between brokers, especially when it comes to minor and exotic pairs beyond the major currencies (EUR/USD, GBP/USD, USD/JPY).

Look for brokers that offer:

• A wide range of major pairs such as EUR/USD, GBP/USD, USD/JPY.
• Access to minor and exotic pairs like USD/TRY (US Dollar/ Turkish Lira) or EUR/ZAR (Euro/South African Rand).
• Cross-currency pairs, which don’t involve the US Dollar (e.g., EUR/GBP or GBP/JPY).

If you’re looking to trade niche or less liquid currencies, make sure the broker supports them with competitive spreads and liquidity.

2. Commodities and Precious Metals

Commodities such as gold, silver, oil, and agricultural products (wheat, corn, coffee) are popular among forex traders, particularly those seeking to diversify their portfolios.

Look for brokers offering:

• Access to popular precious metals like gold (XAU/USD) and silver (XAG/USD).
• The ability to trade energy commodities such as crude oil (WTI and Brent) and natural gas.
• Agricultural commodities like corn, wheat, and soybeans.

Trading in commodities provides hedging opportunities and allows you to take advantage of movements influenced by supply and demand factors, geopolitical events, and weather patterns.

3. Stock Indices

Forex brokers with a broad selection of stock indices allow traders to speculate on the performance of stock markets across different regions. These products are often used for diversification or hedging.

Look for brokers that provide:

• Major indices such as the S&P 500, Dow Jones, Nasdaq 100, FTSE 100, DAX 30, and Nikkei 225.
• Regional indices such as ASX 200 (Australia), Hang Seng (Hong Kong), and Nifty 50 (India).
• Access to sector indices, such as those focused on technology, healthcare, or finance.

Stock indices represent a broad basket of stocks, and trading them can give you exposure to entire markets or economies without needing to pick individual stocks.

4. Shares and Equities

While forex trading is the focus for many brokers, some also offer the ability to trade individual stocks. If you’re interested in trading equity markets in addition to forex, this can provide useful diversification.

Look for brokers offering:

• Stocks from major exchanges like the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE), or Tokyo Stock Exchange (TSE).
• Access to international markets beyond your home country for global exposure.
• Fractional shares for easier exposure to high-priced stocks like Amazon or Tesla.

Ensure that the broker provides low commission rates and competitive spreads on stocks to keep costs down. You may also want to check if they offer short-selling on stocks.

5. Cryptocurrencies

Cryptocurrency trading has become increasingly popular in recent years, and many forex brokers now offer access to digital currencies. These products appeal to traders looking to capitalize on the volatility of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and others.

Look for brokers that offer:

• Popular cryptocurrencies like Bitcoin (BTC/USD), Ethereum (ETH/USD), Ripple (XRP/USD), and Litecoin (LTC/USD).
• Access to altcoins for more diversification beyond the major cryptos.
• Crypto-to-fiat trading: For example, BTC/USDT or ETH/BTC pairs.
• Low spreads and transparent fees for cryptocurrency trading.

Cryptocurrencies offer volatility and potential for high returns, but they can also be risky, so it’s important to consider how they fit into your trading strategy.

6. Exchange-Traded Funds (ETFs)

Some forex brokers also offer Exchange-Traded Funds (ETFs), which provide exposure to a wide range of markets without the need to buy individual securities.

Look for brokers offering:

• Equity ETFs tracking major stock indices or specific sectors (e.g., tech or energy).
• Commodity ETFs that track the price movements of commodities like gold, oil, or agricultural products.
• Bond ETFs or currency ETFs for added market exposure.

ETFs can be an excellent option for diversifying a forex portfolio while still being able to trade within a familiar platform.

7. Bonds and Fixed Income Products

For traders looking for more conservative investment options or those who want to hedge against forex market volatility, bonds and fixed-income securities can be appealing. Not all forex brokers offer these products, but they can provide stability to your portfolio.

Look for brokers offering:

• Access to sovereign bonds (e.g., US Treasury Bonds, UK Gilts).
• Corporate bonds and municipal bonds for a higher yield.
• Bond ETFs or Bond Futures if direct bond trading isn’t available.

Bonds are typically used for portfolio diversification and can act as a hedge against currency fluctuations or market risk.

8. Contract for Differences (CFDs)

CFDs are one of the most versatile financial instruments for traders who want to speculate on price movements across various markets without owning the underlying asset.

Look for brokers that offer:

• CFDs on currencies, commodities, indices, stocks, and cryptocurrencies.
• Low margin requirements and competitive spreads on CFD products.
• Flexible contract sizes to accommodate both small and large traders.

CFDs allow you to trade on margin and short-sell, providing flexibility in how you approach different market conditions.

Top Brokers Offering Diverse Investment Products

1. IC Markets

IC Markets is a popular broker known for its ECN accounts and wide range of investment products:

• Forex (major and minor currency pairs)
• Commodities (gold, silver, oil)
• Indices (S&P 500, DAX 30, NASDAQ)
• Cryptocurrencies (Bitcoin, Ethereum, Litecoin)
• Stocks and CFDs

IC Markets offers low spreads and fast execution, making it ideal for traders who require low-cost access to a diverse range of investment products.

2. AvaTrade

AvaTrade offers access to:

• Forex, commodities, and indices.
• Stocks, ETFs, and cryptocurrencies.
• Bonds and CFDs.

With a strong reputation for customer support, educational resources, and an array of trading platforms, AvaTrade is a good choice for traders looking for variety and reliable execution.

3. Pepperstone

Pepperstone is known for its tight spreads and strong offerings in forex, commodities, indices, and cryptocurrencies:

• Forex (major, minor, and exotic pairs)
• Commodities (oil, gold, silver)
• Indices (S&P 500, FTSE 100)
• Cryptocurrencies (Bitcoin, Ethereum, Ripple)

Pepperstone offers ECN execution and has partnerships with major liquidity providers to ensure low spreads during both major and off-hours.

4. FXTM (ForexTime)

FXTM provides a wide variety of investment products:

• Forex (major, minor, and exotic pairs)
• Stocks, indices, and commodities
• Cryptocurrencies and CFDs

FXTM is known for its flexible accounts and education centre, making it an ideal choice for both beginners and experienced traders seeking diversification.

5. eToro

eToro is a social trading platform offering a wide array of investment products:

• Forex, cryptocurrencies, stocks, and ETFs
• Indices and commodities (oil, gold, silver)
• Ability to copy trade other investors

eToro’s user-friendly interface and social trading features make it ideal for those who want to explore a wide range of investment products while learning from more experienced traders.

Conclusion

When comparing forex brokers based on their investment products, it’s important to consider the variety and quality of assets they offer. Brokers like IC Markets, AvaTrade, Pepperstone, FXTM, and eToro provide access to a wide range of investment products beyond just forex, including commodities, cryptocurrencies, stocks, indices, and ETFs.

Ensure the broker you choose offers the necessary tools, competitive spreads, and low commissions across the products that interest you. Diversifying your trading options allows you to explore new markets, hedge against risk, and create a balanced portfolio that suits your trading goals.