Best Forex Brokers

How to Check the Reliability of a Broker: Regulations and Licenses

One would always like to hand over his hard-earned money to someone reliable and trustworthy. Your funds must be kept safe when investing with a broker, as there is still a possibility that these companies can go bankrupt. Therefore check out the legal regulation of a brokerage by a noted regulator who has a keen eye on every aspect of their services; if authorities fear that an exchange is double-crossing, hefty fines are imposed with the possibility of a permanent ban.

Clients can also complain directly to these authorities if they feel a genuine issue is unresolved by the broker. Following regulatory firms are the best ones to keep in mind:

• United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC)
• United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA)
• Australia: Australian Securities and Investment Commission (ASIC)
• Cyprus: Cyprus Securities and Exchange Commission (CySEC),
• Switzerland: Swiss Federal Banking Commission (SFBC)
• Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN)
• France: Autorité des Marchés Financiers (AMF)
• Canada:  Investment Information Regulatory Organization of Canada (IIROC)

Forex Trading Platforms

Companies nowadays have started to develop their own trading platforms in a rush to beat the traditional MetaTrader and offer customers a local experience with better options. 

A trading platform is where you place and modify your trades or even use charts and tools to analyze the markets. It holds profound importance as it can significantly impact your trades if you don’t know how to handle such software. Make sure the platform provided by your brokerage has useful tools, various order types, strategy tester, one-click trading alongside a user manual to help one in the learning process.

Currency Pairs Offered

Each trader has a unique trading strategy of their own to tackle the markets. The trading plan may be accustomed to specific forex pairs showing their best abilities on it. Your broker must have enough currency pairs or at least the ones you’ll utilize. Having more trading instruments will also allow one to test out his game plan on other potentially more profitable currencies.

Account Types

Different accounts are available in the forex industry that varies based on transaction costs, commissions, minimum deposit, leverage, etc. An Electronic Communication Network (ECN) or No Dealing Desk (NDD) account will be more suitable for traders with a quick trading style that requires low latency on their executions. The broker generally charges a fixed commission for such accounts while having a low spread, usually zero pips. Standard accounts are more commonly used and have their fees built into the spread. They also require less amount in terms of the minimum deposit as compared with ECN or NDD.

Deposit, Withdrawal, and Additional Fees

One is likely to invest with a brokerage that has various deposit and withdrawal methods. The most common ones are through a credit/debit card and bank or wire transfer. Having many options to fund your account via PayPal, e-wallets, local transfer, etc., will be more helpful, and the same goes for cashing out. Stay clear from companies that charge a considerable amount of fees when you want to take your money out. Additional costs may incur if you leave your trading account dormant for some time, and it varies from broker to broker.

Execution Policy

Dealing Desk Brokers open a position contrary to yours and make a profit through losing traders. Such companies have no interest in making their traders win and benefit through the high loss rate, i.e., 90 percent in forex. Have a brokerage that has its quotes straight from interbank via wholesale liquidity providers as they will have fast executions on your trade with minimum latency and are the first choice of all professional traders.

Charts, Tools, and Education

Quality charts, tools, and education are provided by brokers who are loyal to their customers. From the bottom of their heart, a company should always offer the best in the plate for its traders, as quality stuff is a quick road to success. Learning more about trading charts and having the tools to draw out your strategy with the right knowledge will set one on a short path to becoming a senior trader.

Customer Support

A good brokerage should answer any of your questions reasonably and professionally. Customer support is generally handed out through live chat, email, and support. Most companies have these options available 24/5; however, some have 24/7 support and more means available to deal with their clients, which is an advantage if you are trading in the Forex that never seizes its operation.