Trading with the best forex brokers is the desire of all brokers. That’s because they invest lots of money, even their whole capital, so they need a perfect broker who can protect their assets. As a result, looking for the best brokers is becoming more and more significant.
Like many of you, I searched the phrase “best forex brokers” when I was beginners. I found out several large brokers, traded and changed into other brokers. After experiencing for a long time, I have learned that there is no perfect brokers for all worldwide traders. Some brokers are good for beginners but may be bad for experts. Some are beneficial for scalpers but dangerous for long-term traders. Some are appropriate for American but Asian.
Don’t worry if you are confused about the following questions:
– What are the criteria of the best forex brokers?
– What are different between dealing desk and non-dealing desk brokers?
– Which one is better, ECN account, Micro account or regular account?
– What should be chosen, U.S., UK or Cyprus brokers?
This article is the best answer for your confusion as it gives you deep knowledge regarding the standards of the best forex brokers. From that, you can analyze and select a good one to trade with.
In this article, I will cover the following information:
- Trustworthy: regulations, historical activities
- Trading conditions: quotes, trading platforms
- Trading expenses: spread, commission, slippage, swap, bonus, ways of payment
- Local team: offices, availability
Before going into details, let me show you the list of top five best forex brokers IN the world.
– Exness: 9/10
– HotForex: 8.5/10
– FBS: 8/10
– XM: 8/10
– FXTM: 7/10
- They must be trustworthy:
To consider the credibility of a broker, you should use six following factors:
– Regulations
– Offices
– Scale
– Historical activities
– Accounts
According to my experience of trading for a long time, I suppose the most important factor out of the above-mentioned ones is regulations. A broker has to reach many requirements and standards before obtaining the regulations from the trusted financial organizations. The most prestigious regulations include CySEC, FCA, IFSC, FSB, etc.
Besides the regulations, you also need to consider the past reports of that broker to see if it has any scams or something like that. The advantage of doing so is understanding the way the broker dealt with sudden situations to know its professionalism and reliability.
Here is the reference list of three most trusted brokers:
– Exness: 9/10
– HotForex: 8.5/10
– FBS: 8/10
- They need to have the best trading conditions:
In this field, leverage is supposed to be the most important factor. In simple words, leverage is a trading strategy of multiplying the profits you may get after a transaction by using the money you borrow. It is the tool which almost brokers in the world like.
Leverage is divided into two types: account’s leverage and trading leverage. The one I am mentioning here is the account’s leverage which should be high. Although leverage is important, it is just a tool to grow your profits, not the deciding element for your trading success. The real ones are your trading tactics, knowledge and discipline which you need to practice many times to obtain.
Below are three brokers which can give you the best leverage:
– Exness: unlimited
– HotForex: 1:1000
– FBS: 1:1000
- They ought to provide low trading expenses:
You can calculate the total trading expenses of a broker by adding many factors such as spread, commission, bonus, slippage, swap, deposit or withdrawal fees.
Spread is defined as the difference between the Ask price and the Bid price of a currency pair. It is measured in pips and divided into two kinds – tight and wide spread.
Example: Tight spread: 0.2 pip, 0.5 pip, etc. Wide spread: 10 pips, 15 pips, etc.
Click here for the lowest spread brokers.
Also, it is the main income of dealing desk brokers. If it is high, the trading costs will be high. Therefore, traders tend to choose the brokers that offer the lowest spreads.
There are two types of forex brokers: one is dealing desk, and the other is non-dealing desk. About dealing desk brokers, they get quotes from the liquidity providers and then add the spread into such quotes. Different from that, non-dealing desk brokers provide the exact quotes they get from the liquidity providers. Thus, their spread is nearly zero, and they have to charge commission to get income.
Additionally, slippage or swap is also a significant factor for considering the best forex brokers. As I know, slippage is the dissimilarity between the expected price and the one you actually get in your trading. It happens when there exists high volatility in the forex market. You should be careful with this factor when choosing a broker.
Now let me give you a reference list of the brokers that have the lowest trading expenses.
– Exness
– HotForex
– FBS
- They have to establish an impressive support team:
A good support team is more critical and necessary than ever in a complex trading market. They can help you deal with the problems and difficulties you may meet when trading. To become the best broker, it needs to set up a support team which is available 24/7 and supports in other languages (Chinese, Vietnamese, Thai, etc.) instead of only in English. I agree that English is a popular language in the world, but not all traders can communicate in English. Accordingly, supporting in local languages is a good idea. (Click here for the best forex brokers in Thailand).
A common means of supporting preferred by most brokers is live chat. You just need to visit the website of the brokers, then you can talk with them immediately or find their phone numbers to call them if you need their assist.
Besides, customer service is also a must for the best forex brokers.
This is the list of three brokers with the best local support.
– Exness: 18 languages, available 24/7
– XM: 23 languages, available 24/7
– HotForex: 27 languages
