Finding The Best Forex Broker

Finding The Best Forex Broker

So, where do you start forex trading? Forex trading can’t be done without a broker, so first you need to find one. It’s often easy to go for big names or groups in the forex industry, however the “best” forex broker will often be subjective, with each having positives and negatives. This means less objective ranks, instead it may come down to the pairs you want to trade, the platform, trading using spot markets or per point, or simple ease of use requirements.

Below is a list of comparison factors that should be considered before saying yes or no to a broker. Some may be more important to you than others, but all should be given some thought. Details on all these elements for each brand can be found in the individual reviews.

Lowest Trading Costs

Spreads, commission, overnight fees – everything that reduces your profit on a single trade needs to be considered. High frequency trading means these costs can ratchet up quickly, so comparing fees will be a huge part of your broker choice. Brokers such as our partners offer commission-free trading, though this is usually compensated for with wider spreads.

Inactivity or withdrawal fees are also noteworthy as they can be another drain on your balance.

Trading Platform

The trading platform needs to suit you. Whether you want a simple cut down interface, trading using only a keyboard, or multiple built in features, widgets and tools – your best option may not be the same as someone else’s.

Several brokers build their own proprietary platforms for trading on, such as Think Or Swim platform or the iForex trading platform. However, there are many great industry-wide platforms available.

Learn more about online forex trading platforms here.

Demo accounts are a great way to try out multiple platforms and see which works best for you. Remember also, that many platforms are configurable, so you are not stuck with a default view.

Mobile Trading

Trading forex on the move will be crucial to some people, less so for others. Most brands offer a mobile app, normally compatible across iOS, Android and Windows.

If this is key for you, then check the app is a full version of the website and does not miss out any important features. The download of these apps is generally quick and easy – brokers want you trading.

Some apps are better for beginners while others can be quite complex, so be sure to check before committing.

Finding The Best Forex Broker

Customer Service

Is customer service available in the language you prefer, such as Spanish or English? Is there live chat, email and telephone support? When are they available?

Customer support quality can vary from a part time call centre to dedicated personal advisors and forex trading mentors. Some brokers, such as Fidelity, have teams with 24/7 customer support available for queries at all times of the day, week or weekend. How high a priority this is, only you can know, but it is worth checking out.

Asset List

Does the broker offer the markets or currency pairs you want to trade? A pretty fundamental check, this one. If you are trading major pairs, then all brokers will cater for you.

If you want to trade Thai Bahts or Swedish Krone you will need to double check the asset lists and tradable currencies. Many brokers also offer CFD instruments on the US30 index or silver with the XAU/USD pair, for example.

Regulation

Do you want a broker regulated by a particular body – the FCA, SEC or ASIC perhaps? Remember European regulation might impact some of your leverage options, so this may impact more than just your peace of mind. We cover regulation in more detail below.

Spreads Or Commission

Partly covered in trading costs, but the spreads are often a comparison factor on their own. Spreads are defined as the difference between the bid and the ask price that the broker quotes. Spreads can vary a lot with forex trading and have a large impact on profitability.

Remember, you are not tied down to one broker so if you trade several currency pairs, then you can shop around for several brokers to get the tightest spreads. When learning how to trade forex, multiple accounts can also provide different educational materials.

There is nothing wrong with having multiple accounts to take advantage of the best spreads on each trade. Beware of slippage ‘hiding’ wider spreads too often.

Payment Methods

Deposit method options at a certain forex broker might interest you. Do you want to use Paypal, Skrill or Neteller? Are you happy using credit or debit cards knowing this is where withdrawals will be paid too? Forex Signals App

Some forex brokers now accept deposits in Bitcoin or a range of other crypto’s too.

Security

Most brands will follow regulatory demands to separate client and company funds, and offer key levels of user data security.

Some brands might give you more confidence than others, and this is often linked to the regulator or where the brand is licensed. Foreign exchange trading can attract unregulated operators. Security is a worthy consideration.

Demo Accounts

Try before you buy. Most credible brokers are willing to let you see their platforms risk free. To practice forex trading on a demo account or simulator is a great way to test a strategy, back test or learn a platform’s nuances – as well as allowing anyone to learn how to trade forex from scratch. Try as many as you need to before making a choice – and remember having multiple accounts is fine (even recommended).

When can I trade forex?

Account Types

From cash, margin or PAMM accounts, to Bronze, Silver, Gold and VIP levels, account types can vary. The differences can be reflected in costs, reduced spreads, access to Level II data, settlement or different leverage. Micro accounts might provide lower trade size limits for example.

Why trade forex

Retail forex and professional accounts will be treated very differently by both brokers and regulators, as professional classification involves accepting greater risks. An ECN account will give you direct access to the forex contracts markets. So research what you need, and what you are getting.

Leverage

For European forex traders this can have a big impact. Retail forex leverage is capped at 1:30 by all European brokers under the ESMA rule, though leverage can reach 1:400 for professional-classified traders. Assets such as Gold, Oil and stocks are capped separately.

What is the bid / ask spread?

In Australia however, traders can utilise leverage of 1:500. That makes a huge difference to deposit and margin requirements. Australian brands are open to traders from across the globe, so some users will have a choice between regulatory protection or more freedom to trade as they wish.

Why trade CFDs on currency pairs?

Just note that the average leverage rate increases potential losses, just as it does potential profits.

Forex Signals Telegram Signals

Forex Signals Telegram Signals

Finding The Best Forex Broker

Finding The Best Forex Broker