Working with the best Forex brokers is an essential need of every trader. Investment for trading is a huge number of capital and it is even a whole fortune to someone. Hence, it is mutual to work on trading with a good reputation and trusted forex brokers
Probably, the common terms that most of traders is “best Forex brokers” when they start their trading career. They may try to work with a found big broker, then move to the other ones. It is impossible to have a perfect broker in the world. Depending on the trading characteristics of traders, there are some brokers that best suit beginners or experts whilst some others are most preferred by scalpers. Even, there are some brokers is just best on American or Asian market only.
The most common considering questions raised by traders are
- What are the principles of the best Forex brokers?
- What is the suggestion of choosing Dealing Desk and Non-dealing Desk brokers
- Which is a better choice among ECN account, Micro account or regular account?
- Which brokers are considerable, US, UK or Cyprus?
A deep knowledge about the Forex broker entity from this article will help you to analyse and find out the brokers that most suit you.
Regarding the difference of broker from country to country, there would be unable to figure out the best one worldwide. However, regarding these principles, we would decide the best one for each person.
So, here are the top 5 brokers
- Exness: 9/10.
- HotForex: 8,5/10.
- FBS: 8/10.
- XM: 8/10.
- FXTM: 7/10.
The reliability is the most important
It is important to any trader to ensure the reliability of brokers as they invest lots of money. There are six elements deciding the reliability of a broker, which are:
- The licenses
- The historical records of operation
- The size of the broker
- Their offices
- The operating period
- The accounts
The license is the most important factor deciding the reliability of a broker. In order to be approved a license from a financial organisation, a broker must comply with all the standards of that service provider. The most reputed trustworthy regulations are CySEC(from Cyprus), FCA (UK), or IFSC, FSB (South Africa)…
The following aspect we should take into consideration is the previous reports of a broker in order to notice any scamming reports. According to these reports, that brokers will show the way they manage and deal with the incidents and related issues. It would define how professional and credible they are.
Click here for the biggest forex brokers.
Trading cost is best when low
After making sure the reliability of a broker, their trading cost is the next criteria to consider. Basically, the trading cost is a combination of many factors, including spread, commission, the deposit and withdrawal fees, bonus and rebate, Slippages and swaps.
A spread is a gap between the ask and the buying quotes of a currency pair and measured in pips. It will have wide spread and tight spread. So, 10 pips would be seen as a wide spread while 0.2 pip is a tight spread. According to each broker’s policy, they will decide different spread for each current pair reflecting the fact that Spread is their primary income to a dealing desk broker. A high spread will cause high trading cost. Therefore, we always identify the best Forex brokers relying on its lowest spread they offer. Furthermore, there are 2 types of Forex brokers, which are Dealing Desk and Non-dealing Desk. To the Dealing Desk brokers, their basic income is spreads, which means that their quotes will be added transaction fee, spread, to the quotes from the liquidity providers.
About the Non-dealing desk brokers, the quotes they issue will be the exact number from the liquidity providers. In another word, it is zero spread. However, they will charge commission as their income. The commission rate is different brokers by brokers. Hence, the lowest commission is the best.
Slippages and swaps are another elements influencing the trading costs. Literally, slippage occurs when the expected price of trading different from the actual execution. During the experienced high volatility market, slippage will present, especially before an important released news. However, slippage is a controllable factor. Hence, a slippage is also important to decide the quality of a broker.
The trading conditions should be ideally great
Leverage
A strategy mostly used in trading is using leverage which is borrow money to increase gained profits by multiple times. This is the most preferred technique by traders all over the world. Although the traders commonly believe high leverage is risk, high leverage is a good factor. Generally, the broker’s account leverage and trading leverage is seperated. So, which we are discussing is the leverage account, which is expected to be high. Your successful trade is not decided by the leverage. This is only a technique you can use to gain your profit. Meanwhile, trading strategies, knowledge and discipline are deciding factors in your success. These factors only improve through practices.
The mutual role of the supporting team
It is certain that Forex trading is a complex sector. Therefore, as traders, we always expect that brokers will provide the supportive team to help us encounter any occured problems of trading. So, the supportive customer service team is an important element defining the best Forex broker. Especially, a 24/7 customer support, local representative offices within target markets for in-person communication, and many different languages support alongside English are those criterias to the best broker. Regarding to the fact that, traders are not all fluent at English, the available supporting languages should be widened, including Thai, Chinese, Japanese, Bahasa, Indonesian, Vietnamese and more. (Click here for the best brokers in Thailand: โบรกเกอร์ forex ที่ดีที่สุด).
Meanwhile, live chat is currently a common supporting channel of all brokers. This supporting technique can be simply accessed through the broker’s website immediately. Some other good broker either provide phone support. Their supporting phone number are public on their websites. Overall, a good broker is defined by a good customer service
