So what should you be looking for, and what is the best way to find it? But not only that. Having an understanding of the qualities that make a Forex broker stand out from the crowd will assist in finding one that is efficient and effective for you and your style of trading. With the introduction of online Forex trading, it is no longer necessary to choose a Forex broker that operates in your own country of residence. The world is now your oyster, and you can pick a Forex broker from anywhere in the world.
However, there is one vital quality you should always look for in the beginning. If a broker claims to be licensed and regulated by a particular body, we will do our very best to check this is true.
So what else should you be looking for, and what are the qualities we consider important? You may already be thinking that finding the best Forex broker is a mammoth task. And the main reason there are so many other Forex broker comparison sites, Forex broker lists, and Forex broker reviews.
Educating prospective Forex traders, keeping those already involved as informed and up to date as possible, are our main aims. Our aim is also to introduce you to new brokers and bring you into the exciting world of Forex trading.
But to do it in a transparent, honest and fair way, and give you all the information you need in one convenient place, best you can make an informed decision. When researching for our latest Forex broker review, the first detail we always check is whether the broker is licensed and regulated by a particular regulatory body.
Most reputable online Forex trading brokers will submit to and comply with the regulatory agency in their own country. Plus, there are some that will also register with a number of others. That is all well and good, we hear some of you say, but is it really important to choose a broker that is licensed and regulated?
There is no centralized agency that controls the market as a whole. Instead, it is left to various government and independent agencies to supervise and watch over the market. As well as give licenses to those who operate and offer their services to traders. There are a number of advantages to choosing a regulated Forex broker.
There are a number of regulatory bodies, and some are more recognised than others. For example, the FCA Financial Conduct Authority is the regulatory body for the UK, CySEC for Cyprus, and in the USA the Securities and Exchange Commission SEC is responsible for financial regulation. There are also professional and governmental bodies such as MiFID Markets in Financial Instruments Directivewhich is a European Union law providing harmonised regulation across member states of the European Economic Area relating to investment services.
When we look at various online trading sites we will always pay close attention to the name of the financial regulator, and forex the license is current and up to date. If this information is not readily available we will contact the individual broker and ask about their regulation, in order to keep our reviews accurate, and to save you the trouble of finding out for yourself.
The number and variety of accounts vary considerably. Some Forex brokers only offer one type of account, and some offer more than a handful. One of the most important accounts for us when writing our Forex broker reviews is the provision of a demo account, as this is a great way to practise trading, without risking any real cash. A demo account also gives new traders the opportunity to try a broker out for size. Reading reviews is a great way to start the process of picking a broker, but no amount of words will be a substitute for real life experiences.
More experienced traders should look for accounts with a slightly larger deposit requirement. For investors who have access to larger amounts of capital, a VIP, premium or professional account is probably the best option. Each account type will have its own leverage, spreads, minimum and maximum order sizes, and many other additional benefits.
We will always give as much information as possible in order to help you find a reputable broker with the best deal for each of you. Once upon a time, Forex brokers would only offer foreign currency pairs for trading.
Nowadays, however, there has been an explosion in the number of tradeable instruments available for the average trader. Commodities, indices, binary options, CFDs, bonds, precious metals,and many other types of assets can be traded online, along with foreign currency pairs.
It really depends on what you are looking for, as to whether you pick a broker who concentrates on one or more of these different assets. But as a rule, the bigger brokerage firms offer a wider choice of products for trading. There are a number of different ways a broker makes their money, and the one that usually features top of their pricing is spreads. Some brokers make a big thing about advertising how low their spreads are, and if there is no mention on their site of the how much you might have to pay for trading it should raise a big red flag.
Spreads are the primary cost involved in Forex trading. Basically, it refers to the price difference between purchasing and selling a currency pair. For those more familiar with trading it is also known as the bid: Spreads are expressed in pips, so perhaps we should start out with a simple explanation of pips.
You may have heard traders talk about pips of profit, or found it when reading about Forex trading. Such an expression makes a pip sound like some kind of currency, but it is really far brokers complex than that. A pip is a measurement used to represent a change in the value of a currency.
In fact, it is the smallest change possible and usually represents a 0. However, as with many things, there is an exception to this rule. If a currency has a low unit value, it will usually only be quoted to 2 decimal places, as opposed to the 4 decimal places used in our example. A pip, in this case, is 0. Another thing to remember when considering pips is that not all comparison are equal.
If the denominating currency is two pairs is the same there is no problem. The price of any currency pair is always quoted as two prices. The first price is always the bid price, or how much you can expect to receive for a currency pair. While the second price is always the ask price, or how much a seller is asking.
There is usually a difference between the two, and this is the spread, which will be expressed in terms of pips. Orders to buy will be executed at a higher ask price, while orders to sell will be executed at a lower bid price. Imagine you buy a currency a currency pair and then sell immediately. You will make a loss equal to the amount of the spread. It is, therefore, usual for traders to look for a broker offering low spreads.
This is because the spread is similar to a tax levied on each transaction. The money that a trader loses comparison the spread goes into the pocket of comparison broker or market maker. And this is one of the reasons why many brokers have no need to charge commission. Their profit is already built into every trade.
A trading platform acts as a bridge between broker and trader. It provides a trader with some very useful information such as charts and quotes. It is also the vehicle for entering orders for the broker to execute. There are also a number of brokers who offer web-based platforms and an increasing number who offer mobile-friendly alternatives.
There is an advantage to mobile and web-based platforms, in that they can be used anywhere there is internet access. It is usual for brokers to offer trading platforms for free, but traders may be able to purchase platforms with greater functionality for a fee. Some of the top ranking Forex brokers provide their own proprietary trading platform for traders to use when placing orders and to keep track of the markets.
A large number of brokers also support third party independent trading platforms, such as MetaTrader 4. And one last quality that could be very important is that the platform is mobile friendly. How many of you reading this are looking to trade when out on the road, sat on the bus, relaxing on the beach, or just about anywhere apart from your own home? In fact, for many modern traders, it has become an essential part of their arsenal.
What is automated forex? Basically, it is a computer program that does all the hard work for you. Leaving you to get on with the rest of your day, without having to worry about watching the ever changing markets and evaluating whether to buy or sell a particular currency pair. An automated Forex program will advise a trader to make trading decisions based on a set of signals that have been set by the program designer.
It can also place trades orders on behalf of a trader, so you never have to miss an opportunity. A large percentage of the brokers we review will be offering it as one of their platform options. Nevertheless, offering MT4 is still an important quality to look out for.
It began its journey upwards in when it was just a simple charting package. Over the following years, it underwent several changes until it eventually emerged as the complete trading platform package it is today. MT4 actually gained a significant advantage, as it was one of the first made generally available when online retail trading started to become popular. Other features that have made MT4 the most popular trading platform include:. Forex trading takes place somewhere in the world, 24 hours a day, from Monday to Friday.
Or if you want to look at it in another way, from Sunday evening to Friday evening. Having a top notch level of customer service is only going to make your Forex trading a more enjoyable experience. It could also have a significant impact on your trading success.
Imagine you are looking at your trading platform and everything has frozen. Your only course of action is to get in touch with customer support. You stand a big risk of losing out on the deal, and thereby suffering the possibility of major financial losses. Not an ideal scenario for anyone as you can well imagine. The first is to read our FX brokers reviews, and the second is to open an account.
Take the opportunity to give them a call via their telephone number. Write them a few emails and see how long it takes for them to respond. These are some of the ways you can check out the quality of an FX brokers customer service. One of the main variables, when performing a Forex brokers comparison is the initial deposit requirement.
Some brokers will make it a few thousand dollars, and some will offer a minimum deposit of just one dollar. And of course, it will also depend on the type of account you choose to open. We will always give you as many details with regards deposit requirements, as it is going to make a difference to the broker you choose.
Are you best for a broker with a low initial deposit requirement? In this case, you should be looking for an FX trading broker asking for a low initial deposit. However, we have to say that while choosing a broker on account of deposit requirements may have its merits, particularly if your funds are limited. But on the whole, it is really not a useful criteria to consider. Although it is always useful to know.
Some of the best FX brokers choose to keep the initial deposit requirement relatively high, as it ensures only the most serious clients sign up for an account. Also, Forex markets can be extremely volatile which means that those traders with small amounts of capital are going to be quickly wiped out, even if the fluctuations are minor. We do however, appreciate that not every trader can risk huge amounts of money.
And we would always advise new traders to risk only what they can realistically afford to lose. Another feature we should mention here is the ease with which you can withdraw your earnings.
There is little point in making huge profits if you have little chance of withdrawing them. There is no justification or excuse for delays when requesting withdrawal of funds. Which leads us nicely on to the subject of terms and conditions. As this is one aspect of Forex trading that often trips newcomers up. Many experts say that the devil is in the details, and this definitely applies to Forex trading.
All the best Forex sites have pages dedicated to this important aspect of trading, and will always advise their clients to read them. But how many actually do? One common feature that is used by many brokers to attract new clients is the advertising of Forex bonuses. Some of them sound really amazing, and really brokers good to miss.
But should a trader really take the bonuses without reading the small print that is always attached to such deals? Being given money for nothing really seems forex good an opportunity to miss. We will always feature any promotions and bonuses as part of any review we write, but we would advise caution. And there are a number of reasons why.
Brokers problem that is often encountered relates to making a withdrawal, once a bonus has been given. It is in their best interests to keep your capital in your account. The only way to withdraw the bonus is by meeting the brokers trading requirements, which can sometimes be very hefty.
The bonus terms will vary from broker to broker, but on the whole, they will be considerable. If the broker does allow you to make a withdrawal, it may mean you lose the accumulated bonus, or it will be calculated on a pro-rata basis. This means that even allowing for leverage, it will take a long time for this type of trader to meet the trading requirements.
It could take years, and then there brokers the risk of not meeting the time deadline. Their services speak for themselves, and reputation and word of mouth speak volumes. They attract new clients by offering tighter spreads, rebates on commissions, or commission free trades to their active traders, and very rarely do you see free money plastered across the best Forex sites.
And most definitely spend some time reading the terms and conditions that are attached to said offers. And a final word on the subject. There is no such thing as free money. The features you should be looking for are relevant whatever type you choose. The choice of broker now depends on the type of trading you want to participate in and whether there are any special features you would best to take advantage of. So here are your choices. You should be able to find the answers by reading the relevant broker review here on our site.
We appreciate there is a lot comparison think about when trying to choose a Forex broker. A big part of the decision will be personal preference, and will also depend on your own trading needs and requirements. You might want to trade major currency pairs, or you might prefer to trade more exotics. You may find you prefer to use the MT5 trading platform, rather than MT4. Whatever your preferences, as long as you pay attention to the important issues such as regulation you are sure to find the right broker to suit you.
Forex trading has taken off in a big way, and as with any new form forex investment, there are always going to be a selection of people whose only aim is to take advantage of the uneducated. Forex trading has the potential to earn you lots best money, but it also has a far bigger potential to leave you with absolutely nothing.
One of the best pieces of advice we can give is to only risk what you can truly afford to lose. While mortgaging your home on what seems like a deal that can never lose may be very appealing, picture yourself in a few months time when the deal falls through and you and your family have nowhere to live. So what can you do to avoid being taken in by a broker is everything but genuine? First of all, we should point out that it is not just beginners that face the dilemma, but experienced traders could also fall foul of fraudulent brokers and scams.
But it always pays to do some homework, and investigating a broker before you throw them your hard-earned cash. At the end of the day, Forex trading is an adventure, and who are we to blame you for wanting to enjoy the ride.
Just be sensible, take all the necessary precautions, and be wise in your investments, because it should be an enjoyable experience, not just a profitable one. As well as bring you lots of honest, reliable, trustworthy Forex broker reviews. Top Forex Brokers Reviews ECN Brokers Forex Signals Forex Robots Trading Academy Forex Bonus.
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