In today’s forex market, the myriad of traders show their passion for the best forex brokers because of many benefits. But they do not know how they can choose the best, which forced them to ask me for help. In my opinion, it is not difficult for us to find out the best forex brokers. On the other hand, it seems to me that traders will find many difficulties when finding good forex brokers. That is why I have to write this article, which helps them have a better knowing about these the best brokers. In reality, it is a must for traders to know more details about their future brokers so that they can enjoy many profits.
Just as trading, choosing the best forex brokers requires strategies as well. So what features should we look at when find the top brokers?
The best forex brokers must have good customer care
It is very easy to notice the difference between a broker with customer care and a bad one. Once you trade with a broker that supports you very well, you’ll have a very pleasant trading experience. An ease mind can lead you to success faster, so finding the right broker is crucial. Being able to communicate with your forex broker at all times is a must. Imagine this, you are trading on your computer. You’re about to execute a buy/sell order but the platform suddenly crashes. At that moment, if you can’t contact your broker to get them fix the problem or support them, you can lose greatly. Grading how well a broker supports its customers is not simple. To do that, we have to contact various brokers ourselves and then test their level of service. Almost all brokers have live chat nowadays as well as phone lines in various countries. To test, you should chat, call, and send that broker an email to see which method is the quickest way to get a reply.
The best forex brokers must be regulated
Before you trade with any brokers, you must always check if they have gained at least one regulations from a trusted financial organization or not. If that broker operates in America, check for the NFA regulation or the CFTC regulation. For U.K brokers, it is the FCA. Cyprus has CySEC regulations. South Africa has IFSC and Japan has FSA. If a broker don’t have any regulations, you should not trade with them. Because they cannot guarantee your safety when trading.
The trading cost of the best brokers
Of course brokers are there to make money. How do they earn? Their main income comes from spreads and commission. Every broker has two types of account: regular and ECN account. For regular account, brokers charge you by the spreads. For ECN accounts, they charge you commission because the spreads of this type is nearly zero. When you see a broker advertising about commission-free feature, they are simply talking about their regular accounts or because they don’t have an ECN account. Commission-free usually means higher spreads. Be careful with that when choosing a broker.
Leverage of the best forex brokers
A good broker must always have a wide range of leverage for traders to choose. Leverage can be varied, going from 1:50 to even 1:1000, 1:2000 (at Exness, you can enjoy unlimited leverage). Most traders consider leverage an advantage, because it can help them make way more profits. The more the leverage, the less the margin. But notice that there is a drawback: you can lose a lot more with high leverage because it’s not only applied to your profit but also your loss.
The minimum deposit of the best fx brokers
As I said before, most brokers have different account types. Each account will have different initial deposit requirement, ranging from as low as 1 dollar to thousands. Of course, beginners in forex trading as well as investors are fond of accounts that require little amount of deposit.
Of course you would want to withdraw your profits from forex trading. Brokers have somewhat the same payment methods. What separates is the withdrawal conditions as well as which banks they work with. As a result, each broker will apply different fees to your withdrawal. Remember to check the conditions of the payment system when considering a broker. They are usually easy to be found on the broker’s website, because many traders care about this feature.
The instruments of the best forex brokers
Of course all brokers have the most common currency pairs in the market like EUR/USD, USD/JPY or GBP/USD. But what if you want to trade something else? Something special like gold, precious metals, or even cryptocurrencies. Brokers usually put all their trading instruments in their accounts description.
Everything you do when you trade takes place on the trading platform. To find a broker who has suitable platforms for you, first ask yourself:
- Are you able to work online or you can only trade on a downloaded program?
- Do you like to trade alone or you’d like to discuss with other traders?
- Which one do you prefer, a minimal and simple interface or a combination of various features and tools on the screen?
After answering those questions, you’ll know which trading platform works best for you just by looking at it. Choosing a suitable trading platform is very important and it can decide your performance in forex trading.
The demo account of the best forex brokers
Demo account can be very important to some traders. You can learn a lot about a broker by trading their free demo account. Moreover, you can use it to test a new trading strategy that you’re too unsure to test with real money. However, brokers usually make the trading conditions of the demo accounts too easy so that traders would like those brokers. It is a very useful bait. If things are going too well to be true on your demo account, maybe that broker is scamming you. Don’t spend too much time trading there. You will only lose money when it comes to real accounts.
When one just starts the Forex trading career, many would advise you the Forex Demo account to start with, simple and risk-free. Yet, the wrong use can bring you disadvantages, and that’s just one stage in the forex trading life. Keep diligent practice with the demo, then move up with the real ones. With better knowledge and experience, we wish for your success and prosperity with the best forex brokers.