To the most recent years, forex market becomes more popular in the global decentralization, where participants are eligible to buy, sell, exchange and even speculate currencies in certain prices. It is also the market, which is made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. Interestingly, with the everyday exchange, participants from worldwide, are so-called traders, have made it become their career to follow. Consequently, forex brokers – the companies that offer forex services has continuously increased in numbers. For starters, it is a common-seen that a good broker to begin trading is not at the corner. In fact, they are hard to find. For that reason, I will make a comparison among famous brokers as well as how to rank them, based on 8 separate categories. Hopefully, this may help you to determine the top broker in 2018.
In which ways we appraise a broker? It must be how their traders being treated. Ideal brokers, many of whom provide traders impressively superb trading conditions along with customer services. In addition, they are expected to be transpicuous and secure. Finally, they are required to pay a precise attention to traders’ profit in long run. Should not be fooled by commissions or bonuses from smaller brokers. Please understand that there is no such instant profit in the market. Everything takes certain times, efforts and certainly steps to achieve. That was why there is a limited bonus offered by most famous brokers. Alternatively, it seems that trading with smaller brokers appeared less secure and professionalism than that of biggest brokers.
I believe that after reading this article, you are able to select an appropriate broker, who meets all of your requirements, related to conditions and trading tactics.
1. REGULATION
Being licensed by a trustworthy organization. Being recognized by written, the broker has certified his/ her own standards, reputation and ability. There are some famous and trusted qualification such as ASIC (Australia), CySEC (Cyprus), FSA (Japan), CFTC (United States), NFA (also United States), and FCA (United Kingdom). It is to warranty the assurance of traders, however, it is also national limitation. For instance, a FCA certified broker has no authority to his/ her clients in Asia. As the result, being popular among the market seems not the core key to be considered as a good broker. Yet, it is better to have at least one certificate rather than nothing, is that right?
2. TRANSPICUOUS AND SAFETY
Due to the complexity of forex market and various scammers, it is recommended that traders should know about broker's background as perceive as possible. Besides, checking the service provider to ensure that clients' audit is audited once a year. The best forex brokers are those who afraid not to show their financial records and transition performances right on websites, specifically Exness and FxPro. Without hesitation and reluctant, traders can find Exness' available amount in the bank truthful and transpicuous. Based on current statistic, their fund is 4 times their clients' deposit, so therefore, losing money because of technical issues or crisis when trading, is no longer a matter. Additionally, almost brokers assure that there will always be compensation for clients who have accidentally been in unexpected cases.
3. TRADING VOLUME
Why should we check the trading consecutive sequence of a broker? Simply because of the worldwide common-chosen or widespread effects the clients bring to their favorable brokers by chance. If international traders choose them, what are we waiting for?
I would like to provide big forex broker's monthly trading flow as follows:
Exness: $323 billion/ month.
Hot Forex: $280 billion/ month.
Forex.com: $185 billion/month.
FXCM: $108 billion/ month.
4. CUSTOMER RELATION OR CUSTOMER SERVICE
The forex industry is apparently demanding itself, therefore, either a broker become successful or not, it depends on how they treat their clients. Being new to trading, a trader definitely needs a helping hand from their brokers via language, networking and posting ads online so that both his/her clients and brokers themselves are able to stay at the top of the food chain. But all and all, language barrier is which determine whether the relationship last, and for how long. The fact that not all traders are fluent in English using, as the result, it is brokers' supportive and credibility to be there in need, must mention good reputation brokers whose customer services are far more outstanding (24/7 service, multiple languages) like Exness, FBS, FxPro, and XM.
5. COST & FEE
This category is accustomed to commission and spread that traders being charged by a broker.
Certainly, traders wish not to pay much money when trading, so, in forex brokers' view, learning how much they should charge affects their success. The lower, the better. For EUR/USD - common currency pair, big brokers' spread is 1.1 pip - the lowest rate, same as Hot Forex, and FBS. XM and FXTM, Exness spread is a little higher, 1.7 pip.
Because of this competition, it is no surprised to recognize most brokers do not charge commission for regular clients. And this is Exness' specialties, because only $2.5-the lowest price/ slot is charged.
6. WITHDRAWAL/TRANSFER SYSTEM
For traders, time of withdrawal is also one of their daily concerns. For domestic brokers, although the time is shorter, they are not reliable enough. On the contrary, trading with international or overseas traders is more secure, but the withdrawal process is the opposite, because it takes longer period to fully complete the transaction. For my recommendation, you need to find a trader who is being both fast and trustworthy to support, and Exness appeared to be the number one choice due to the automated. It has saved great deal of waiting time, meaning millisecond is counted to fulfill the process successfully.
7. LEVERAGE
Being listed as high leverage, this is what traders from all over the world are dying into. Yet, forex brokers that original come from Japan, United States or United Kingdom have to offer lower leverage when they are roughly regulated by these nations, as I mentioned earlier. Consequently, traders prefer not to select a broker with too many licenses. Here some brokers with best leverage:
Exness: with less than $1000 account and having traded more than 5 lots, the leverage is unlimited. With over $1000 accounts, it is 1:2000 top.
Hot Forex: 1:1000 top.
FBS: 1:1000 top.
XM: 1:888 top.
8. MINIMUM DEPOSIT
When you are just a small or new trader, minimum deposit is one in which is very important. Neither you should put nor invest too much money in your account when you first start the trading, because 90% of beginners will lose all their amount in the very first start. Brokers offer accounts requires a little deposit turns out to be the alternative solution and be more suitable for you. Here is the sample for you to choose from:
Exness: only $1.
FBS: only $1.
Hot Forex: $5.
I hope this article will bring you a more specific look and understanding about brokers, traders and related categories. This also help, you to decide which broker is the best appropriate and suitable for you as the whole. Obviously, each broker has their own strengths and weaknesses, but generally, it belongs your decision to be made.
