All forex traders want to trade at the best forex brokers! In the forex world, we invest a lot of money in trading and for some people, it is their whole fortune. So, choosing a reliable broker to invest money in is the most important thing to do.
I guess that all traders would search the phrase “best forex brokers” when they were beginners. They found out some big brokers, started trading and changed brokers. Because there isn’t perfect brokers for all traders in the world. Some forex brokers are good for beginners but experts. Some are good for forex scalpers but long term investors. Some are good for American but Asian!
I know you are confusing and have many questions such as:
- Standards of best forex brokers for you?
- Should you choose Dealing Desk or Non-dealing Desk brokers?
- Should you trade ECN account or Micro account or regular accounts?
- Should you choose US, UK or Cyprus brokers?
This article will help you understand deeply about forex broker world. After reading this article, you can analyze and choose the best one for you.
The best forex brokers will be different country by country. So, it’s hard to say which one is the best all over the world. But fortunately, We can use the same standards to define the best one for you.
Standards to define best forex brokers for you.
|Trustworthy||Trading costs||Trading conditions||Customer services|
|Historical activities||Commission||Quotes||Local offices|
|Trading volume||Slippages||Trading platforms||Availability|
List of 5 Best forex brokers:
- Exness: 9/10. Learn more >> Exness.com
- HotForex: 8,5/10. Learn more >> Hotforex.com
- FBS: 8/10. Learn more >> FBS.com
- XM: 8/10. Learn more >> XM.com
- FXTM: 7/10. Learn more >> FXTM.com
They must be reliable
We invest money in these brokers so we need to know the best forex brokers are reliable. To decide whether a broker is reliable, we must look at six factors, which are:
- The regulations
- The operative history of the broker
- The scale of the broker
- Their offices
- Foundation time
- The accounts
The first and foremost factor that decides whether a broker is reliable is the regulations it acquires. Trusted financial organizations will give their regulations to brokers in their managing countries or regions if those brokers can meet the standards they set. Some famous and trustworthy regulations are CySEC (from Cyrus), FCA (UK), or IFSC, FSB (South Africa)…
After knowing the regulations, we should look at the past reports of the broker to see if they have ever been reported to be scamming or anything like that. By viewing these reports, we can also see how a broker dealt with those incidents and the way they handled the situation can tell a lots about their professionalism and credibility.
Click here for the most reliable brokers.
3 most reliable forex brokers:
- Exness: 9/10. Learn more >> Exness.com
- HotForex: 8,5/10. Learn more >> Hotforex.com
- FBS: 8/10. Learn more >> FBS.com
They must have low trading cost
When we are sure that this broker is safe to work with, we then check its trading cost. The total trading cost of a broker is calculated by adding and taking various factors like: the spread, the commission, the deposit/withdrawal fees, bonus or rebate, and slippage and swap.
Spread is the difference between the ask price and the buy price of a currency pair. Spreads are measured in pips. We can either call spread tight or wide. For example, 10 pips would be a wide spread while 0.2 pips is considered tight. Each broker will decide how much their spread is for each currency pair because spread is known to be one of the main incomes of a dealing desk broker. If the spread is high, it means that the trading cost will be high too. That’s why we all want the spread to be as low as possible so the best forex brokers should have the lowest spreads. Forex brokers are divided into 2 types: Dealing desk and Non-dealing desk. The first type’s main income is spreads. When they get quotes from liquidity providers, they will add the transaction fee (spread) to those quotes.
- Check Exness spread now
- Check HotForex spread now
- Check FBS spread now
- Check XM spread now
- Check FXTM spread now
Then come the Non-dealing desk brokers. They provide the exact quotes that the liquidity providers gave them. So their spread is around zero. That’s when they have to charge us commission as their main income. Each broker will have different commission rate so you should be looking for ones with the lowest commission.
Another feature that affect the total trading expenses is the slippages or swaps. Slippage is the difference between the expected price of a trade and the price you get when the trade is actually executed. Slippage happens the most when the market experiences high volatility, maybe when there is big news just got released. Slippage can be controlled by the brokers. Therefore, when you consider a broker, you should also pay attention to their slippages.
3 brokers with the lowest trading cost:
- Exness >>> Check Exness trading cost
- HotForex >>> Check HotForex trading cost
- FBS >>> Check FBS trading cost
Learn more about the brokers with lowest trading cost.
They should have the best trading conditions:
When we trade forex, the most popular thing we trade is currency pairs. Currencies are quoted in pairs. For instance, the currency pair EURUSD is the Euro vs. U.S. dollar pair. When we have the quote of this currency pair, we can determine the value of the Euro by comparing it to the value of the USD.
Base currency indicates the first currency in the pair, and quote currency indicates the second. So the quote shows you how many units you will need in quote currency to buy the quote currency.
For example, let’s look at the most popular currency pair in the forex market. Now the quote is EUR/USD = 1.1456. If you want to buy this currency pair, it means that you have to pay amount of approximately 1.14 USD to buy 1 Euro.
Each broker gets the quotes from different liquidity providers and obviously their quotes will be varied. So us traders should choose the brokers who can offer the best quotes.
Top 3 brokers with the best quotes:
Another aspect of quotes is requote. What is requote? Requote is a pop-up message on the trading screen. The message tells you that the market price has changed so your original ordered price is now different from the market price. Next, you will have to enter a new price within 3 to 5 seconds or your transaction is cancelled.
It often takes you awhile to get used to requotes and sometimes, they can even result in significant losses for traders due to the changes in the market. However, requote is considered to be normal in this market, mainly for experienced traders. Beginners or less experienced traders, meanwhile, understandably have troubles with requotes because they are not used to the constant changes in the market. The only way to get familiar with this is practicing trading.
Leverage is considered a trading strategy of using the money you borrow to multiply the profit that you may gain after a transaction. Leverage is the tool of a broker that is loved by most traders worldwide. A broker’s leverage should be high. I know some traders think that high leverage is riskier. Actually, there are the account’s leverage of a broker and the trading leverage. Anh we are talking about the account’s leverage, which the higher the better. Leverage is not the deciding factor for your success in trading. It is just a tool that help you increase the profit. The real deciding factors are your trading tactics, knowledge, and discipline. You can gain those all by practicing.
Brokers with the best leverage:
- Exness: Unlimited Check Exness leverage
- HotForex: 1:1000 Check HotForex leverage
- FBS: 1:1000 Check FBS leverage
Currently, MT4 and MT5 are the two most popular trading platforms in the forex market. However, they are not perfect because they aren’t compatible with some operation systems such as Windows Vista and Windows XP, as well as some smart phones. That’s why some brokers have started to build their own trading platforms which can work with any operation system and any devices.
In conclusion, the top 3 brokers with the best trading conditions are:
They should have good payment system
Now you know how much the trading will cost you. You then need to take a look at the broker’s payment system, or the depositing/withdrawing system. This is no ordinary buy and sell. You can just give somebody cash and then take the currency pairs. You have to transfer the money via banks or e-wallets. And since you work with international brokers, you now that the transferring will cost you a considerable amount of money. Earning from trading forex is hard already, and now you have to pay more fees? That’s why it is wise to come to those brokers who have excellent payment systems. A good payment system must be cheap or even free (some brokers will cover the fees for you). If the broker works with your local domestic banks, that’s great. Local bank fees are much lower than those of visa or international banks.
Also, a no less important feature of a great payment system is the speed. The forex market is constant changing by seconds and minutes, so you’ll need a broker who can work quickly with your transaction. In addition, they should be available 24/7 and don’t have any amount limitation.
3 forex brokers who have great payment system:
They should have suitable account types for traders
There are two types of account that almost all brokers offer, which are demo and real account. When you’re still new to the trading market, brokers often recommend forex demo account to you by saying this is the most suitable account type for your needs. The reason for this is mainly because demo account is designed especially for beginners. Therefore, the trading conditions are easier. Then the beginners are familiar and have gain a fair amount of knowledge of forex trading, they should move on to real accounts.
Real accounts can be categorized into two types: regular accounts and ECN account. Regular accounts are for traders who have a fair share of knowledge about forex trading. For traders who pass the beginning level in forex trading but not that good, there are Cent or Micro accounts from some big brokers that are suitable for them. The other regular accounts are Standard account or Mini account. The trading conditions of these accounts are a little different from Cent account but the difference fits traders at this stage. Then comes the ECN account, which is created for experts who trade huge amount of money. A good forex brokers should have many types of account with various features so that all kinds of forex traders can work with them.
Top 3 brokers with the best forex accounts:
They should have the best support team
We can all agree on one thing that forex is a very complicated subject. So, it would be great to have someone who works for the brokers helping us with the problems we encounter while trading. Therefore, in order for a broker to be called “the best”, they need to establish an impressive support team that can keep in touch with the clients 24/7. Moreover, they should have local offices at targeted markets because face-to-face communication would be a better help than talking through phones or emails. Finally, they shouldn’t be supporting only in English. Not many traders are fluent in English so it’s best for brokers to be able to assist customers in their mother languages such as Thai, Chinese, Japanese, Bahasa, Indonesian, and Vietnamese…
The most popular means of supporting of all brokers is through live chat. You just simply go to the broker website and you can talk to their operator immediately at any time. Most great brokers can also be reached through phone. You can find their numbers on the websites and call them in times of need. A good broker must have a good customer service.
Top 3 brokers with the best support team:
- Exness supports 18 languages 24/7 => CHECK DETAILS
- XM supports 23 languages 24/7 => CHECK DETAILS
- HotForex support 27 languages => CHECK DETAILS
Should the best forex brokers be dealing desk or non-dealing desk?
There are two types of forex brokers, which are dealing desk (or called market maker) and non-dealing desk (STP or ECN). The first type give you wide spreads (high) while the other gives you tight spreads (low). It’s hard to judge which one is better. It’s up to your trading strategies. We all think Dealing desk will trade against traders while Non-dealing desk brokers are the opposite. That’s not true at all. When it comes to big Dealing desk brokers, they let the system operate automatically. So, in term of large scale, Dealing desk and Non-dealing desk brokers are not much of a different.
They should have the best forex contests
Forex contest is a great way for brokers to attract new traders. Why do traders love these forex contests? Because this is a chance for you to test your trading skills and the broker’s trading conditions without any risk (only for demo contest. For real account contests, there is risk as normal). At the same time, you can win real money. One thing to keep in mind that forex contest is not for beginners only. So if the prizes offered by brokers are attractive enough, many professional traders will compete for the highest rewards.
As a trader, you must love the competition. The feeling of winning real money from the brokers and the opportunity to show that you are better than other traders is undeniably sweet. Forex contests is exactly the place for you to experience that feeling. We, forex traders, compete against each other but everyone wins. The top traders obviously take home the reward at the end of the competition while the others can learn so much about the forex market and gain a lot of experiences for free. That’s why forex contests matter.
A good forex contest needs to have good prizes. But you should also read the rules thoroughly to know what you can do with the money you win. Some brokers will let you withdraw it while others only allow you to use that money to keep trading with them. So it’s very important of you to go through the rules before entering any forex contest. Moreover, if you are not very experienced in forex trading, don’t spend too much time on these contests because you can never beat the experts there. Just participate in these contests to get the chance to observe a broker’s trading environment for free and have some lessons about the forex trading world.
Top 3 brokers with the best forex contests right now:
They should have the best forex bonuses
I am aware of the fact that there are many traders who are not very fond of forex bonuses since they think that bonuses can bring them more harm than the amount of money offered. However, the majority of traders like forex bonuses, because they can reduce their trading cost and minimize trading margins. Moreover, there are ways to exploit the bonus program from brokers.
There are three types of forex bonus in total: Welcome bonus, Deposit bonus, and Lot-back bonus.
Welcome bonus (or non-deposit bonus) is the bonus that brokers give to those who register for the first time. As this is an effective way to attract new clients or even take some customers from competitive brokers, some forex brokers can offer you up to 30 to 50 dollars welcome bonus for first time registration. This bonus type usually seem interesting to beginners and bonus cheaters. Beginners or new traders use this kind of bonus to check a broker’s trading conditions or test their trading tactics. Bonus cheaters, who are usually the professional traders, just simply create a lot of accounts to get these free bonus, then trade and take the profit.
Deposit bonus is the money a broker rewards you when you deposit an amount of money into that broker. This kind of bonus is usually worth a percentage of the amount you deposit. For example, it could be 20%, 50%, or even 100% of the money you put in. Brokers have this bonus to make traders deposit more money or reactivate their accounts if they’ve stopped trading for a long time. Some brokers only give out this bonus for first time deposit.
Lot-back bonus is somewhat a loyalty program of forex brokers. Every time you have finished 1 lot/transaction, the broker will rebate a specific amount of money to your trading account automatically. The rebate amount will depend on your trading currencies, account types, and trading time. Many professional like this kind of bonus so it is the most well-known. The reason they like it is because it help reducing the total trading cost.
Top 3 brokers with the best forex bonus program:
Plus, the best forex brokers for beginners:
Professional traders and experts really care about the broker’s credibility, trading cost, and quotes quality. That’s not the case for beginners, since they only deposit a small amount of money so brokers don’t need to cheat them. At the beginning, the brokers only want you to stay with them as long as possible so they give you the best trading conditions. The things you should pay attention to is deposit/withdrawing system, Cent/Micro account, and the support team.
Forex is very complicated so you should stick to the simple and basic. Work with the brokers who make it easy for you to deposit and withdraw your money. It’s best to find those who cooperate with local banks in your country.
Cent account is the best trading account for beginners because, firstly, it is a real account. Therefore, you are trading in real-life trading conditions with real spread, real quotes, real volatility, or slippage… If you win with Cent account, you will start to win with other real account types. Moreover , trading Cent account will give your discipline. Because if you don’t follow risk management, you will lose all of your fund instantly. What is a better way to teach you about discipline than that? Lastly, Cent account doesn’t require much to open. With a little money like $10, you can practice trading forex for months in real-life conditions.
Finally, a great broker for beginners must have a good customer service. New traders will need help all the times so the best forex brokers for beginners should be always available, be able to assist customers in your mother languages and have local offices in traders’ countries.
Top 3 best forex brokers for beginners: