Best Forex Brokers

Which is the best Forex broker of all? The answer is there isn't one which is the best for everyone but if take into consideration the points below when choosing one, you will find the best brokers.

Regulation

If you trade with a regulated broker, you will gain protection in terms of  the safety of your money and the broker will have guidelines on the way your account is dealt with to ensure you get the best service and you can contact the regulatory to settle any disputes you may have.

The NFA in the USA and the FSA in the UK are widely seen as the best regulatory bodies in the world, although there are now many others, as regulation spreads to more areas of the world. In the EU, forex brokers are regulated by the authorities of the individual countries nations in which they are located but regulation is not the same in all countries and it varies, from nation to nation, with the bigger nations such as France and Germany having the best regulation.  Another respected regulatory body is the Australian Securities and Investment Commission ( ASIC). If you don't know if a country has regulated Forex look it up online and check the protection if any you are getting.  There is no need to deal with a non regulated broker so don't even consider them.

Financial Standing

How much capital does the company have behind it in other words – how strong is its balance sheet? You should take this into consideration when choosing a broker and also the length of the time they have been in business. A broker with a strong balance sheet which has been in business for many years is probably going to be a good broker to deposit your money with.

Trading Platform

The trading platform is also a consideration in terms of its smoothness of operation, reliability, number of currency pairs offered and other extras such as news and technical charting tools. You can easily find out how good the trading platform is by simply opening a demo account and seeing if you like the services.

Leverage

The leverage brokers offer vary but they all give you more leverage than you really need and 500:1 leverage is not an advantage! Most experienced Forex traders only trade with leverage of 10:1 and all the best brokers, will give you this level of leverage.

Price Quotes and Pip Spreads

Most of the top Forex brokers will give tight pip spreads on all the majors, although there may be more variance on the cross currency pairs. If you are day trader, pip spreads need to be tight, if you are a long term trend follower where a pip a trade will not impact on profitability. You can also check out the quotes offered and price feed but most of the brokers we recommend on this site will have excellent quotes and tight pip spreads. 

Minimum Deposit

The minimum deposit will vary between brokers some take a $100 dollars minimum and some will be thousands and you need to pick a broker in line with your amount of risk capital. Bigger accounts can of course offer you tighter pip spreads than smaller ones but generally, the difference is not to much and both large and small traders can find a company which will give them a competitive service.

Deposits and Withdrawals of Cash & Support

Check the deposit and withdrawal features and how quick and easy it is to top up your trading account and also support in terms of operation of your trading account and its best its 24 hour support which all the big brokerages do.

Trading Bonus

Many brokerages offer a bonus in relation to your deposit but be careful with these because, many have conditions attached to them which mean you have to make a certain number of trades in a set period to qualify for the bonus and many we have seen, make the amount of trading signals you have to transact so big, you are unlikely to make any money! If you are a serious trader, who offers the best trading bonus on your deposit, should not be a major consideration.

Market Maker or ECN Offset?

According to a lot of traders, market makers steal your money but if there regulated this is not the case, the trader is normally just upset he lost. Market makers, don't have to steal a clients money because they work on the odds that 95% of traders lose money over time so there profits are good over the long term. Market makers can offer great spreads and services which are as good as a broker who offsets so if the market maker is regulated and you like them, by all means trade with them.

News, Research, Broker Support and Trading Signals

There are many brokers who set themselves up as Forex brokers for beginners and try to tempt traders to deal with them by offering dealer support, research and even trading signals and systems to give the trader trades – Do NOT take this into consideration when choosing a broker!

The research is generally terrible and reflects the herd and the brokers who give you trades, are unlikely to make you money, as they have a conflict of interest – they make money when you trade or lose. The trading systems and signals are the same as a broker assisted account only automated and will not make you any money either. So help in the form of trading currency pairs from a broker is a complete waste of time.

In Conclusion

If you follow the above tips for choosing a Forex broker, you will find one which can give you a window to global currencymarkets and allow you, to apply your strategy in the world's most exciting investment – trading global currencies for profit.