Broker forex list
A mention has earlier been made about direct and indirect access to the interbank market.
Real forex bonuses
Best forex brokers for 2021
Brokerage companies are scattered all over the world and have many differences in trading conditions, products and services. Some companies are regulated, others are not. Some have been around for decades, others are rather young. Certain brokers work as market makers and have fixed spreads, others provide STP or ECN accounts with direct market access and offer a much larger selection of underlying assets for trading. This site was created to help you find the best forex brokers for your specific needs and requirements. There are several sections and filters in the menu on the left. These can be used to create a custom list of entities with preferable parameters and characteristics. If you find a certain broker you are currently trading with or have used before, feel free to share your experience about it in the comments section meant for forex broker reviews.
The forex brokerage business has undergone a lot of evolution in the last decade. The global financial crisis of 2008 and the events that happened thereafter have reshaped the industry. At about the same time, new technologies came up and also contributed to the evolution of the forex market and forex brokerage business. It is important for traders to understand what forex brokerage is all about and how it will affect their trading ventures. Before we get to meet the best forex brokers for 2021, it is pertinent to identify the role that forex brokers play in a trader’s career and why it is important to go with a forex broker that can match your circumstances and aspirations.
Role of forex brokers
Forex brokers have several roles to play in the market. These roles have also evolved over time, as traders demand a lot more from their trading providers. Forex companies now perform the following roles:
A) access to the market
This is the core role of the forex broker. The forex market is a virtual market with no physical location. At the centre of forex market operations is the interbank market, where the big banks offer various currency pairs for sale. Professional and individual traders therefore do not have to proceed to a physical location to trade, but rather have to have a means of accessing the interbank market. They can only gain access to the interbank forex market using software known as platforms. These platforms are provided by the forex brokers. So without the brokers, nobody can get access to the forex interbank market to trade.
Access can be provided directly using the ECN/STP platforms (also known as direct market access platforms), or indirectly using the market maker platforms that route orders to the broker’s dealing desk. Traders should as much as possible, try to understand the implications of getting direct access to the FX market on one hand, and getting indirect access on the other. The type of access granted will determine factors such as amount of capital to start with, as well as the trading styles and processes to be adopted.
B) trader education
This is gradually but surely becoming a very important element of the forex broker’s functions. Research has shown that 90% of retail traders will lose 90% of their accounts in 90 days. This is a well-established market statistic. Majority of the losing traders (if not all) are traders who are uneducated about the market and who do not understand how to trade profitably. These will end falling by the wayside. No broker wants to spend money acquiring clients, only to have them quit the market after decimating their accounts in 90 days. With brokers realizing that such an arrangement is not good for business in the long run, many of them are now investing significantly into trader education. Videos, articles and webinars are the common means by which beginner traders are given an introduction into the forex market.
C) market research
Once traders get established on the platforms using trader educational resources, their trading activities can be sustained via the provision of market research tools, analysis and news feeds. Many brokers have incorporated this into their offerings as well. For the trader, this is a good thing.
Criteria to consider in choosing a forex broker
The criteria for choosing a forex broker have evolved over the years. While there are still some elements that are critical to the choice and which have remained constant over time, there are other parameters which have emerged and which will be considered below.
1. Spreads/commissions
Spreads are the primary cost to the trader. Lower costs mean that the trader will have a chance to retain more profits, or at least reduce the losses that may be incurred. Competitive spreads are now a factor used in broker selection. It may not be immediately obvious how much savings on spreads can translate to, but high volume traders such as scalpers know that when up to 300 trades are placed in a month, then savings from reduced spreads can be substantial.
2. Leverage
Leverage in forex is now a big deal. What started off in 2010 when leverage caps were introduced in the US by the commodities and futures trading commission (CFTC), has now been extended into the united kingdom and europe. Retail traders in the UK and EU have seen leverage caps reduced from as high as 1:500, to just 1:30 for major forex pairs. Minor pairs and cfds have even tighter leverage limits. This has increased margin requirements significantly. However, some brokers outside these jurisdictions have continued to maintain the high leverages, thus attracting traders who were caught out by ESMA’s decision. Some of the UK/EU brokers have also opened international divisions, where their international client accounts are being migrated to. So traders now have a choice of operating with the low leverage brokers, or the high leverage ones.
3. Regulation
Regulation will continue to remain a key factor in broker selection. Regulation ensures that traders are protected and that the trading environment is transparent and secure. The brokers presented on this site are regulated in their respective areas of operation, which ensures that traders who open accounts with them are assured of safety of their funds.
4. Broker type
A mention has earlier been made about direct and indirect access to the interbank market. As a trader, you need to know how each type of access will affect you. Market makers provide indirect access because they buy positions from the interbank market and resell them to their clients using a dealing desk. Market makers usually require smaller amounts of starting capital, provide fixed spreads, and tend to have more slippages and requotes. They provide a low barrier for market entry.
ECN brokers on the other hand, provide direct market access. They require large amounts as initial capital, provide variable spreads, but do not have slippages and requotes. However, they charge commissions on trades in addition to spreads. At the end of the day, the trader’s financial capacity will determine if a market maker or an ECN broker will be selected for the trading venture.
5. Trading resources
Trading resources are generally tools that are provided by a broker to enhance the trading experience and potentially improve a trader’s trading outcomes. More is not always better. In this case, it is about finding the broker that has the right mix of trading resources that cover analysis, news and market insight.
6. Customer support
Customer support can now be offered using a variety of means that were not in existence 10 years ago. Social media channels such as facebook and twitter, as well as messaging apps such as telegram can now serve as channels for receiving near-immediate responses from a broker’s customer support desk. Choose a broker with a diversified customer support structure which deploys these new means of communication.
Our list of forex brokers
The list below features best forex brokers selected by us for 2021 year. This list has been prepared after due consideration of all the factors mentioned above. In this list, you will find many brokers that are offshore brokerages with high leverage, or offshore divisions of EU/UK brokerages that can provide high leverage trading platforms to their clients. Feel free to read our forex broker reviews and make an informed choice based on the contents of this website.
Brokers
Regulated forex brokers
When viewing the forex broker or a trading platform, it is the paramount priority to choose from the hundreds the most reliable one and the best forex provider, as it will determine the whole trading experience. Indeed, doing research and compare the vast number of forex brokers with many aspects to consider, maybe not an easy choice, as well time-consuming. So here we are ready to assist your selection and answer the most common questions.
Can I trade forex without a broker?
This may be the first question you would ask, as indeed forex market, FX or currency market is the largest global non-centralized exchange where trading process performed electronically via networks. While main forex participants are international banks and financial institutions operating huge volumes through a need to exchange currencies, presented as currency pairs, and assist international business with the conversion which is known as the interbank market.
Therefore, in order to trade fx you should be authorized dealer to do so, as well as operate a quite sufficient amount so before forex brokers were introduced to retail traders and global community it was not possible for trade markets. For this reason, forex trading brokers are the companies or agent if you like that gives retail forex traders access through its platform to operate forex market and trade various markets including commodity futures, indices, bonds, etc.
Do I need license to trade forex?
So this is another pleasant and great opportunity which is given by forex brokers, as you may access trading without financial or dealer license. Moreover, there are hundreds of opportunities with a relatively small investment which allows you to trade forex, do technical analysis and analyze markets almost instantly.
Are forex brokers regulated?
And now we will check the most crucial question if forex broker can be regulated, since the market is decentralized, and is it safe to trade forex? Obviously, this is the biggest trump you may fall as a retail trader if you choose a non-reliable, mainly non-regulated or offshore firm without a proper license you may easily fall into a scam and lose money.
So due to increasing demand and mainly that traders got no easy access to trading or financial education, the world countries established particular organizations or authorities in order to oversee the market proposals and regulate forex broker firms. So yes, forex brokers are regulated while holding a license from a local authority alike world known FCA in the UK, ASIC in australia, commodity futures trading commission CFTC in the USA, MAS in singapore and more.
What does a regulated broker mean?
The whole concept of regulation is to oversee forex business in a particular country or region, protect clients and ensure safe conditions while trading forex. So in simple words, regulated broker means a safe and legit broker that is compliant to various rules and criteria set by the international authority with the purpose to provide secure trading and good customer service. So its trading environment and provided services like technical analysis, education and tools are also aligned to the best practices.
In addition to its constant check on the service providing, authorities protecting clients throughout compensation schemes and other security checks, however, these conditions may vary from the regulator to another.
How do I know if my forex broker is regulated?
In order to check if broker is regulated or not, you should verify this information through the official brokers’ website first, as regulated companies always provide its licenses. And the next step is to verify a license through the official regulatory website. However, in our forex broker review you will find all the necessary information and license check as well.
It is a fact, unscrupulous brokers may easily fake information and assure you of its license while its not true, so always verify information through the official source. As well, adhere to trade with brokers regulated in serious jurisdictions, not the offshore once, as they luck of strong regulation, requirements and necessary safety measures. Read more by the link why avoid brokers from st vincent & the grenadines.
How to choose best forex broker?
Security of funds is always first in forex trading, for that reason, we recall your attention to open an account with regulated brokers only. Making it simple, regulated broker means that you will trade forex with proper security of funds and investment itself, so first of all good broker is a sharply regulated broker.
Further on, you should also check the necessary conditions and select offer suitable for you and trading strategy you deploy.
For this reason, we assist your selection and provide an assortment of efficient regulated brokers with updated on a weekly basis in-depth forex broker list. A professional detailed analysis with trading fees account overview, platform breakdowns while sorted by regulation, country or trading conditions, along with traders comments so smarter decision is easier now.
Best CFD forex brokers for 2021
Below you will find a list of forex brokers that offer a wide range of various cfds (contracts for difference) for trading. Basically, the CFD provides an opportunity to benefit from the difference between entry and exit market price of a certain underlying asset. That kind of trading isn't actually accompanied by a transfer of ownership rights on the asset, it’s more like a bet between buyer and seller. Depending on the price movement, one takes profits and other takes losses. Most popular cfds are based on currencies, indices, commodities and stocks, although some forex brokers also offer bonds, etfs and even interest rate contracts for difference.
Forex brokers now offer a wide variety of assets from different asset classes. These assets are offered as contract-for-difference assets or cfds. This is a contract between a dealer and a trader to settle the difference between the entry price at the time of contract commencement, and the exit price on contract expiration, without physical exchange of the underlying asset in question.
To put it in another way, a CFD is a trade contract based on an underlying asset between a buyer and a seller, in which both agree that the price differential of the asset between the start and end of the trade contract will be paid by one party to the other. The physical asset is not owned or exchanged by any of the two parties.
The fact that there is no physical ownership or exchange of the physical asset between both parties makes this form of trading easy to offer on trading platforms, following the same principles of online forex trading where the traders do not physically exchange the currencies being traded. Also, traders can go long or short on the CFD, enabling profits to be made with long orders on rising prices, and short orders on falling prices.
What assets are traded as cfds?
Unlike a decade ago when cfds were restricted to stocks and a few indices, it is now possible to trade a wide variety of assets as cfds. The CFD forex brokers in our list offer the following asset classes as cfds:
- Cryptocurrencies
- Commodities (metals, energies, softs)
- Indices
- Stocks
- Bonds
- Etfs
- Interest rates
Types of CFD brokers
Just like in the forex market, there are two types of CFD forex brokers. We have the market makers, who operate a dealing desk and offer CFD trading in-house, and we have the direct market access providers, who pool pricing from several liquidity providers and offer same to their clients without passing these through a dealing desk. There are also hybrid brokers, who offer both models to different categories of clients.
Dealing desk brokers operate in two ways. For a majority of clients, pricing and order fulfilment is done at the dealing desk, where wholesale positions obtained from the interbank market are chopped down into smaller bits that their clients can trade. Orders which are too large or which may constitute counterparty risk are sent to the interbank market.
Direct market access (DMA) brokers deal with clients who have wholesale capacity. As the interbank market requires large volume trades, only clients with the financial muscle to operate at this level are taken. Pricing is aggregated from several providers and routed to the trader, who selects a set of bid-ask prices and place orders based on these prices. Orders are then sent to the interbank market, or to other prime brokers who can perform fulfilment.
Criteria for choosing a CFD broker
In selecting the CFD brokers listed on this site, certain criteria were used. The ultimate aim was to present brokers that would guarantee CFD traders the best possible deals with great user experience. Factors used in the determination of the best CFD forex brokers include: regulation, trading software type, types of accounts provided (with features) and contract specifications (commissions and spreads).
A) regulatory status
Regulation is a key factor in consumer protection. It ensures that there are laid down rules by which brokers must abide, for the safety of their clients. Regulatory protocols are enforced by the regulatory agencies. If anything goes wrong, relief or arbitration can be sought by the consumer.
Some of the requirements for running a CFD forex brokerage, as enforced by regulators are as follows:
- A physical location which can be accessed at any time.
- Qualified personnel, including a management team that can be identified.
- Financial reporting.
- Anti-money laundering procedures.
- Segregation of clients’ accounts, and in some jurisdictions, access to investor compensation insurance.
The CFD forex brokers in our list conform to these requirements and this list is updated regularly as new information on regulation becomes available.
B) CFD trading platforms
Many of the brokers in our list offer the MT4 and MT5, which have excellent facilities for CFD trading. Indeed, the MT4 has become the mainstay of CFD trading in the retail segment of the market, as it has great asset listings, and charting/analytical tools to enable multi-asset technical analysis.
C) CFD account types
No two traders are created the same. That is why compartmentalization of traders using an account differentiation system is gradually becoming the norm. Creating separate accounts for beginners, advanced traders or professional level traders ensures that each category of traders are provided with tools they can work with, suitable for their level of expertise. The needs of advanced traders will differ greatly from those of beginners, so it is vital to provide accounts that meet the demands of each trader class.
D) contract specifications
In terms of contract specifications, it is important for traders to know the conditions under which a CFD asset is traded. Trading an ETF CFD is not the same as trading a CFD on crude oil. In the same vein, what a trader pays in commissions or spreads on a crypto CFD will be different from what the trader will pay when trading the nasdaq100 index CFD. Therefore, the best CFD forex brokers will ensure that their clients know clearly what they are getting into whenever they decide to trade a particular asset.
It must also be mentioned that some brokers will charge commissions and spreads on certain cfds, while others may only charge spreads. The only way for a trader to get this information is for a broker to spell out the conditions of trading on each asset very clearly. This is usually done using a contract specifications table on the individual broker websites.
The contract specifications include information on the following:
- Minimum order: it is pertinent to know if you can trade micro-lots on particularly volatile assets, or whether you can only place a minimum of 0.1 lots.
- Leverage/margin requirement: what is the leverage/margin requirement for every CFD traded on a CFD forex platform?
- Commission: are there commissions to be paid? If yes, how much?
- Tick size and increment: how many points is one tick worth, and by how many ticks/points does an asset fluctuate?
- Trading hours: when is an asset open for trading?
- Expiration of contract: are contracts continuous, or do they expire? If they expire, what is the expiration period: one month or three months?
For currency pairs, each metric is probably the same from one currency to another. But for cfds which cover several asset classes, the information will be totally different from one asset class to another. As a trader, access to this information is absolutely crucial to be able to plan your trades and risk management strategies. All the CFD forex brokers in our list have pages with contract specification tables that clearly spell out what you can expect to encounter when you trade a CFD asset.
Fxdailyreport.Com
Till about a decade ago, you had to make use of the telephone if you wanted to invest in the financial markets. You had to call up your broker for placing as well as closing orders. Introduction of online trading has, however, simplified every aspect of the investment process. You can carry out trades from the convenience of your home or on-the-go using the platform provided by brokers. Sounds simple, but the problem is there are umpteen number of forex brokers that offer trading platforms out there in the market. And, you need to work with the best forex broker if you want to achieve your financial goals. So, it all boils down to identifying the right broker to work with and it is definitely not an easy task. Read on to find out as to how you can identify the best forex brokers. In this post, various aspects you need to take into consideration when choosing a forex broker are discussed in detail so that the selection process becomes simpler and easier for you.
Top recommended and the best forex brokers for 2021
| Broker | info | bonus | open account |
|---|---|---|---|
| min deposit: $5 spread: from 0.2 pips leverage: 500:1 regulation: FSA (saint vincent and the grenadines), cysec | 50% deposit bonus, real contest 1st prize luxury car BMW X5 M, copy trading, trade&win. | Visit broker | |
| min deposit: $1 spread: from 0 pips leverage: 3000:1 regulation: cysec, IFSC | $100 no-deposit bonus, 100% deposit bonus | visit broker | |
| min deposit: $5 spread: from 0 pips leverage: 888:1 “*this leverage does not apply to all the entities of XM group.” regulation: ASIC, cysec, IFSC belize | “50% +20% deposit bonus up to $5,000, loyalty program bonus “*clients registered under the EU regulated entity of the group are not eligible for the bonus and the loyalty program” | visit broker | |
| min deposit: $1 spread: from 0 pips leverage: 2000:1 regulation: FCA UK, cysec, FSP, bafin, CRFIN | 35% of the account deposit | visit broker | |
| min deposit: $100 spread: starting 0 pips leverage: up to 400:1 regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA | visit broker | ||
| min deposit: $300 spread: floating, from 0 pips leverage: 500:1 regulation: FCA UK reference number 579202 | visit broker | ||
| min deposit: $200 spread: starting 0 pips leverage: 500:1 regulation: ASIC australia, FCA UK | visit broker | ||
| min deposit: no minimum deposit spread: 1.2 pips leverage: 50:1 regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC | visit broker | ||
| min deposit: $10 spread: leverage: regulation: cysec | - | visit broker | |
| min deposit: $200 spread: from 3 pips leverage: 400:1 regulation: NFA, FCA, cysec | visit broker | ||
| min deposit: $100 spread: starting 0 pips leverage: up to 500:1 regulation: FCA UK, ASIC australia, MAS singapore | visit broker | ||
| min deposit: $1 spread: fixed spread from 3 pips leverage: up to 1:1000 regulation: CBR, cysec and FFMS | 30% forex deposit bonus | visit broker | |
| min deposit: $250 spread: as low as 0.1 pips leverage: up to 400:1 regulation: ASIC australia and FCA UK | visit broker | ||
| min deposit: €100 spread: the spread can be as low as 0.01%” (0.01% = spread for EUR/USD) leverage: 1:294 regulation: ASIC, cysec, FCA (UK) | visit broker | ||
| min deposit: $100 spread: starting from 0.9 pips leverage: 400:1 regulation: MIFID, FSB & ASIC | visit broker |
Risk warning: cfds are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.4% of retail investor accounts lose money when trading cfds with this provider. You should consider whether you understand how cfds work and whether you can afford to take the high risk of losing your money.
Main parameters to be checked for identifying the best forex brokers:
#1: regulations and licenses
It is highly recommended that you choose only forex brokers that are regulated or authorized by leading regulatory bodies such as commodity futures trading commission (CFTC), national futures association (NFA) and financial conduct authority (FCA in UK), among many others. This is because regulated brokers are more reliable than their non-regulated counterparts. Further, your hard earned money remains safe with such brokers for two reasons: they will be appropriately capitalized and they maintain segregated accounts for theirs as well as traders’ funds.
#2: forex trading platform
The online trading platforms that recommended forex brokers provide would not only be simple, but also intuitive and easy to operate or navigate. It, therefore, makes sense to try out a few online forex platforms and see for yourself as to which one has a better user interface and is easily navigable.
#3: customer support services
Customer support is a key aspect that you need to evaluate. Best fx brokers would often be aware of the needs of the traders and provide good, efficient and responsive customer support services. During the course of trading forex on an online broker’s platform, there will be times when you need certain time sensitive clarifications. If the customer support service of the broker you are planning to work with is not good enough, you could end up losing money. It is, therefore, recommended that you evaluate the brokers’ customer support service both by speaking to their representatives on telephone and by communicating with them through email.
Leverage offered for forex trading varies from one broker to another. If the leverage is high, the trader can make more profits. However, the risk of accumulating losses is also equally higher. Therefore, you should choose a broker that offers leverage suiting to your needs and based on your style of trading.
Brokers often try to attract you by offering high capital bonuses when you make your first deposit. This is good because you get more money for trading. You can choose the broker that offers the highest first deposit bonus, but you should make sure other aspects discussed above and those that are discussed below suit your needs.
#6: deposits and withdrawals
It is important that you understand the brokers’ policies related to deposits and withdrawals. The features to be evaluated when choosing top forex brokers are minimum amount to be deposited to start trading, deposit methods offered, currency options provided, minimum withdrawal amount specified and waiting time for withdrawals, among others. Further, it makes sense to go through all other written policies in detail.
Brokers make money by charging a fee for each of the trading transactions that you execute on the forex trading platform provided by them. As far as the broker and you are concerned, the significant source of revenue would be the spread, the difference between ask and bid prices. It pays, therefore, to check as to how the brokers you have shortlisted handle spreads:
Do they offer fixed or variable spreads?
What is the average and maximum spread for the currency pairs that you are planning to trade?
What spreads are offered when the volatility is very high?
Do you have to pay any commission for each trade apart from the spread?
Before buying a car, you always go for a test drive. Similarly, look for forex brokers that offer demo accounts. This helps you to open a practice account. You can try out their platform and find out for yourself as to which of the shortlisted brokers is best suited to your requirements. Most brokers offer practice accounts these days. So, it is easy for you to get a feel of the brokers’ platform before committing to depositing money and trading.
#9: other parameters for identifying the best forex brokers
The forex brokerages that offer very low account minimums can be considered for evaluation under the category “best forex brokers”. This is good because you don’t have to deposit large amounts of money in order to trade forex. Minimum account balance can be as low as $5 in the case of some of the reliable forex brokers.
Online forex brokers often try to snatch business through promotions. Do not fall prey to their sales gimmicks. Best forex brokers would never make unbelievable and unachievable promotional offers. It is true that cash and prizes form part of the game, but they should be reasonable.
Another aspect to look for when evaluating online forex brokers is the educational services offered by them. This helps you to master the art of forex trading. Brokers that provide you with a variety of educational tools for assisting you in assessing the forex market are the best forex brokers to work with.
Why expert traders trade with regulated forex brokers
If you’re looking to become a successful forex trader, then working with a skilled and trustworthy broker is very crucial. In the forex market, the two main types of brokers you’ll get include the regulated and the non-regulated brokers. Obviously, the former typically operates under regulations stipulated by a forex regulator. Regulated forex brokers must also be fully licensed and registered in their country of operation, unlike their non-regulated counterparts.
Role of regulation
Of course, the role of regulation in forex market cannot be underestimated. Regulation ensures that all players in this booming industry are strictly supervised. This way, merchants are protected from the many unscrupulous traders out there looking to swindle them off their hard earned money. Another thing, regulation also builds trust between merchants and their brokers, since most merchants don’t have enough time to monitor every investment.
Let’s take a quick look at some of the leading regulatory agencies:
- CFTC and NFA: commodity futures trading commission and national futures association, regulate the financial services sector in united states of america (USA).
- Cysec: the cyprus securities and exchange commission is the regulatory watchdog within the cysec domain. It offers services to the EU member states.
- FCA: the financial conduct authority regulates the operations of over 56,000 financial services and companies in the UK.
- ASIC: the australian securities and investment commission regulate the financial services sector in australia.
- FSB: the financial services board is a south african agency which oversees functioning, regulation, and licensing of south african forex brokers.
- Bafin: bafin is a financial supervisory authority providing its services to forex companies in germany.
Advantages of regulated forex brokers
With regulated brokers, you’ll always have some peace of mind when carrying out your real-money transactions. To expound more, here are the main reasons why expert traders prefer regulated brokers:
1. Credibility
It’s an open secret that most of us like to deal with trusted organizations, especially when money is involved. That being said, the credibility of any forex broker is greatly enhanced if the company is regulated by the relevant agencies. Remember that all regulated forex brokers are mandated to follow some strict rules put in place by their respective regulatory bodies. Furthermore, their regulatory bodies expect them to regularly present a copy of their audit report. Therefore, if a broker is listed on its regulatory body list, then it’s safe to say that the forex broker has fully complied.
2. Compensation
Getting compensated in case of any unfortunate scenario is arguably the best reason why most expert traders opt for regulated brokers. With most regulated brokers, you can rest assured that all your hard earned money will be refunded in case your brokerage firm goes down. For example, brokers operating under cysec are required to remit their contribution to the ICF (investor compensation fund). This pool of funds is to help settle any form of customer claims in case of any eventuality.
3. Effective customer service
Before choosing a forex broker, it’s always recommended that you settle for one who can effectively and immediately resolve all customer issues. In this case, most regulated brokers are always competent enough when dealing with technical support or account issues. In addition, they are very helpful and kind during the whole account opening process.
4. Quick deposits and withdrawals
Any reputable forex broker will allow their merchants to make deposits and withdrawals without any hassle. A regulated broker should have no reason whatsoever to make your earnings process difficult because they don’t have control over your funds. All they have to do is to facilitate the platform to make it convenient enough for you to trade.
5. Updated trading platform
Most regulated brokers are mandated by their respective regulatory authorities to provide their clients with the latest, powerful, and easy-to-use trading platforms. In fact, most of their platforms will readily provide you with all that you need to begin trading immediately. You’ll get a lot of educational materials including webinars, videos, articles, seminars, and e-courses at no extra charge. It goes without saying that regulated brokers also offer their clients free demo accounts to help them sharpen their skills before going live.
6. Legality
All over the world, governments are struggling to deal with issues concerning money laundering. Some of them have even gone ahead to pass very strict anti-money laundering laws. So to be on the safe side, you should always trade with a regulated broker. Most regulated forex brokers will ask you to provide some of your personal identification documents such as proof of address and photo ID. This might sound tedious to you but it’s always safe to be part of a regulated organization that can prove your money is being used in a legal way.
To sum it up, regulated forex brokers are always the best as well as the safest option to trade with. This is because they are always ahead in terms of legality, security, and safety of your funds. All in all, you can manage your risks better if you opt for a regulated forex broker.
Understanding true ECN vs STP broker
The foreign exchange market, also known as currency market, is a universal decentralized market that provides traders an opportunity to trade currencies. It is a market which incorporates all aspects of buying, selling, and exchanging currencies at the present-day or determined rates.
There are different kinds of forex brokers that you can choose to trade forex with. However, though all the brokers in forex are intended to provide a similar basic solution, the way they operate behind the scenes is different. Different types of brokers have varying techniques of operation, and the specific broker you cooperate with can significantly determine your success rate as a forex trader. Here are some crucial factors that will enable you determine which broker between a true ECN and STP broker is the best one to trade forex with:
Understanding true ECN vs STP broker
True ECN i.E. Electronic communications network brokers operate without their individual dealing desk. These brokers provide an electronic trading platform where professional market makers at monetary organizations such as banks, and other online trading participants including traders can enter bids and offers through their particular systems.
STP i.E. Straight through processing brokers are brokers without a dealing desk also. These brokers apply some of the techniques utilized by market makers to provide their particular clients with trading conditions which are more flexible. By STP brokers hiring some of the tactics of market makers, they are able to bypass the limitations connected to trading exclusively within the interbank market.
General overview of true ECN and STP brokers
- Use of scalping techniques
True ECN and STP forex brokers do not care about how much their particular traders make. Therefore, these types of brokers allow traders to utilize scalping techniques to close their respective positions. Note that false ECN and STP brokers cannot allow you to use scalping techniques as a trader since they will be disadvantaged anytime you make small profits.
True ECN and STP brokers are types of forex brokers without a say when it comes to control on spread provided. These brokers have no control on spread offered since it’s the liquidity provider that determines the spread which is to be provided.
Though true ECN and STP brokers can add markups when necessary, they cannot in any way take it further down than the amount provided.
Difference between true ECN and STP brokers
- Commission charged
On true ECN accounts, as a trader you will be required to pay a fixed commission to open and close trades. The spreads offered on true ECN accounts are determined by the rates of liquidity providers.
When using STP accounts as a trader, you will not be required to pay any commissions.
Pros of trading forex with a true STP broker
- Cannot bankrupt themselves
True ECN brokers cannot trade against their specific clients to bankrupts themselves.
- Similar price rates
If you are a forex trader, trading with a true ECN broker means you are guaranteed of price rates that are similar to those of the interbank market.
- Negative balance protection
As a trader utilizing the trading account of a true ECN broker, the broker will be accountable for any dues with liquidity providers should your account read negative as a result of any reason beyond their control.
Cons of choosing a true ECN broker
Dealing with a true ECN broker will require you to pay rollover fees and commission at times.
Pros of trading forex with an STP broker
- Their rates and the interbank prices are same
- They provide their clients low entry capital requirements
Cons of choosing an STP broker
Choosing an STP forex broker means when you enter a trade you’ll not be informed what spread to expect.
Most true ECN and STP brokers are linked to several liquidity providers at the same time period. Despite both true ECN and STP brokers having incredible trading solutions which can meet your needs as a trader, their terms of operation vary. Whether you will choose a true ECN or STP broker, the rule of thumb is always ensuring you minimize losses and maximize profits as much as you can when trading forex. Ensure you compare carefully the terms of service of both a true ECN and STP broker before you choose one to handle your trading needs.
Best CFD forex brokers for 2021
Below you will find a list of forex brokers that offer a wide range of various cfds (contracts for difference) for trading. Basically, the CFD provides an opportunity to benefit from the difference between entry and exit market price of a certain underlying asset. That kind of trading isn't actually accompanied by a transfer of ownership rights on the asset, it’s more like a bet between buyer and seller. Depending on the price movement, one takes profits and other takes losses. Most popular cfds are based on currencies, indices, commodities and stocks, although some forex brokers also offer bonds, etfs and even interest rate contracts for difference.
Forex brokers now offer a wide variety of assets from different asset classes. These assets are offered as contract-for-difference assets or cfds. This is a contract between a dealer and a trader to settle the difference between the entry price at the time of contract commencement, and the exit price on contract expiration, without physical exchange of the underlying asset in question.
To put it in another way, a CFD is a trade contract based on an underlying asset between a buyer and a seller, in which both agree that the price differential of the asset between the start and end of the trade contract will be paid by one party to the other. The physical asset is not owned or exchanged by any of the two parties.
The fact that there is no physical ownership or exchange of the physical asset between both parties makes this form of trading easy to offer on trading platforms, following the same principles of online forex trading where the traders do not physically exchange the currencies being traded. Also, traders can go long or short on the CFD, enabling profits to be made with long orders on rising prices, and short orders on falling prices.
What assets are traded as cfds?
Unlike a decade ago when cfds were restricted to stocks and a few indices, it is now possible to trade a wide variety of assets as cfds. The CFD forex brokers in our list offer the following asset classes as cfds:
- Cryptocurrencies
- Commodities (metals, energies, softs)
- Indices
- Stocks
- Bonds
- Etfs
- Interest rates
Types of CFD brokers
Just like in the forex market, there are two types of CFD forex brokers. We have the market makers, who operate a dealing desk and offer CFD trading in-house, and we have the direct market access providers, who pool pricing from several liquidity providers and offer same to their clients without passing these through a dealing desk. There are also hybrid brokers, who offer both models to different categories of clients.
Dealing desk brokers operate in two ways. For a majority of clients, pricing and order fulfilment is done at the dealing desk, where wholesale positions obtained from the interbank market are chopped down into smaller bits that their clients can trade. Orders which are too large or which may constitute counterparty risk are sent to the interbank market.
Direct market access (DMA) brokers deal with clients who have wholesale capacity. As the interbank market requires large volume trades, only clients with the financial muscle to operate at this level are taken. Pricing is aggregated from several providers and routed to the trader, who selects a set of bid-ask prices and place orders based on these prices. Orders are then sent to the interbank market, or to other prime brokers who can perform fulfilment.
Criteria for choosing a CFD broker
In selecting the CFD brokers listed on this site, certain criteria were used. The ultimate aim was to present brokers that would guarantee CFD traders the best possible deals with great user experience. Factors used in the determination of the best CFD forex brokers include: regulation, trading software type, types of accounts provided (with features) and contract specifications (commissions and spreads).
A) regulatory status
Regulation is a key factor in consumer protection. It ensures that there are laid down rules by which brokers must abide, for the safety of their clients. Regulatory protocols are enforced by the regulatory agencies. If anything goes wrong, relief or arbitration can be sought by the consumer.
Some of the requirements for running a CFD forex brokerage, as enforced by regulators are as follows:
- A physical location which can be accessed at any time.
- Qualified personnel, including a management team that can be identified.
- Financial reporting.
- Anti-money laundering procedures.
- Segregation of clients’ accounts, and in some jurisdictions, access to investor compensation insurance.
The CFD forex brokers in our list conform to these requirements and this list is updated regularly as new information on regulation becomes available.
B) CFD trading platforms
Many of the brokers in our list offer the MT4 and MT5, which have excellent facilities for CFD trading. Indeed, the MT4 has become the mainstay of CFD trading in the retail segment of the market, as it has great asset listings, and charting/analytical tools to enable multi-asset technical analysis.
C) CFD account types
No two traders are created the same. That is why compartmentalization of traders using an account differentiation system is gradually becoming the norm. Creating separate accounts for beginners, advanced traders or professional level traders ensures that each category of traders are provided with tools they can work with, suitable for their level of expertise. The needs of advanced traders will differ greatly from those of beginners, so it is vital to provide accounts that meet the demands of each trader class.
D) contract specifications
In terms of contract specifications, it is important for traders to know the conditions under which a CFD asset is traded. Trading an ETF CFD is not the same as trading a CFD on crude oil. In the same vein, what a trader pays in commissions or spreads on a crypto CFD will be different from what the trader will pay when trading the nasdaq100 index CFD. Therefore, the best CFD forex brokers will ensure that their clients know clearly what they are getting into whenever they decide to trade a particular asset.
It must also be mentioned that some brokers will charge commissions and spreads on certain cfds, while others may only charge spreads. The only way for a trader to get this information is for a broker to spell out the conditions of trading on each asset very clearly. This is usually done using a contract specifications table on the individual broker websites.
The contract specifications include information on the following:
- Minimum order: it is pertinent to know if you can trade micro-lots on particularly volatile assets, or whether you can only place a minimum of 0.1 lots.
- Leverage/margin requirement: what is the leverage/margin requirement for every CFD traded on a CFD forex platform?
- Commission: are there commissions to be paid? If yes, how much?
- Tick size and increment: how many points is one tick worth, and by how many ticks/points does an asset fluctuate?
- Trading hours: when is an asset open for trading?
- Expiration of contract: are contracts continuous, or do they expire? If they expire, what is the expiration period: one month or three months?
For currency pairs, each metric is probably the same from one currency to another. But for cfds which cover several asset classes, the information will be totally different from one asset class to another. As a trader, access to this information is absolutely crucial to be able to plan your trades and risk management strategies. All the CFD forex brokers in our list have pages with contract specification tables that clearly spell out what you can expect to encounter when you trade a CFD asset.
Fxdailyreport.Com
As a forex trader, finding the right broker is the most important aspect of your trading journey. Your broker can make your trading life much easier if you do it right. You can never truly predict the financial market completely, but a broker can help you gain the knowledge and expertise for a successful trading experience. When choosing a broker, you need one that genuinely cares about you and doesn’t just see you as their client or customer. It’s also recommendable to choose a regulated broker, just to be sure. In this article, we’ll be talking about tips for finding the best forex broker in 2021.
1. Your broker should be regulated
There’s a reason why choosing a regulated broker is important – it ensures security and reliability on your end. If you end up going for an unregulated broker, they can easily break the laws and take advantage of you. Unregulated brokers don’t comply with any rules whatsoever and they’ll behave in any manner they please. This is dangerous as if a serious issue arises with your broker, you can’t bring up the legality with an unregulated broker since they aren’t under any laws in the first place. If your money turns up missing or if any financial complications happen against your broker, you can’t sue them since they’re unregulated. While they’re not illegal, choosing unregulated brokers isn’t exactly a wise choice. To ensure both your safety and security, it’s best to go with a regulated broker instead. Before choosing a specific broker, make sure to do your research on whether they’re regulated or not.
Top regulated forex trading brokers for 2021
| Broker | info | bonus | open account |
|---|---|---|---|
| min deposit: $5 spread: from 0.2 pips leverage: 500:1 regulation: FSA (saint vincent and the grenadines), cysec | 50% deposit bonus, real contest 1st prize luxury car BMW X5 M, copy trading, trade&win. | Visit broker | |
| min deposit: $1 spread: from 0 pips leverage: 3000:1 regulation: cysec, IFSC | $100 no-deposit bonus, 100% deposit bonus | visit broker | |
| min deposit: $5 spread: from 0 pips leverage: 888:1 “*this leverage does not apply to all the entities of XM group.” regulation: ASIC, cysec, IFSC belize | “50% +20% deposit bonus up to $5,000, loyalty program bonus “*clients registered under the EU regulated entity of the group are not eligible for the bonus and the loyalty program” | visit broker | |
| min deposit: $1 spread: from 0 pips leverage: 2000:1 regulation: FCA UK, cysec, FSP, bafin, CRFIN | 35% of the account deposit | visit broker | |
| min deposit: $100 spread: starting 0 pips leverage: up to 400:1 regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA | visit broker | ||
| min deposit: $300 spread: floating, from 0 pips leverage: 500:1 regulation: FCA UK reference number 579202 | visit broker | ||
| min deposit: $200 spread: starting 0 pips leverage: 500:1 regulation: ASIC australia, FCA UK | visit broker | ||
| min deposit: no minimum deposit spread: 1.2 pips leverage: 50:1 regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC | visit broker | ||
| min deposit: $10 spread: leverage: regulation: cysec | - | visit broker | |
| min deposit: $200 spread: from 3 pips leverage: 400:1 regulation: NFA, FCA, cysec | visit broker |
2. Your broker should have no transaction fees
One of the significant aspects of choosing the best forex brokers 2021 is payment transactions. The last thing you should worry about is how you’re going to get payments to and from your bank, card, or whichever method you most prefer. Unfortunately, some brokers charge a certain percentage or fee with every deposit or withdrawal fee so it’s best to choose those that don’t charge you for these. The right forex broker should encourage you to do transactions without much complications and hassle on your end. The specific reason brokers hold your funds is to facilitate your entire trading experience so there’s no reason to make transactions more complicated than it is – or charge a high amount with every deposit or withdrawal you make. We’ve mentioned above that your broker is supposed to make your trading life easier, not harder, and the same concept applies to the deposit and withdrawal aspect. You should also note that some brokers charge for inactivity fee for your account, so also be wary of those brokers.
3. Your broker should have efficient customer service
Out of all aspects, customer service is the one aspect that determines if your broker genuinely cares about you and your success as a forex trader. Brokers aren’t perfect and they also make mistakes, which is why customer service plays an important role in choosing the right broker. Brokers with a fast response time and efficient customer service will make your life so much easier, especially when responding to your concerns, inquiries, and questions. The competence of forex brokers dealing with your concerns and complaints reflects how efficient they are as your broker. Even if it’s as simple as asking for help with transactions, your broker should make your life easier by responding to your question immediately and with accurate information. There are even brokers that would call you and personally welcome you as their broker, which is an admirable feature if you find a broker like that. It makes you feel welcomed and supported, despite the uncertainty as a forex trader.
4. Your broker should offer flexible leverage
While there can be certain advantages with fixed leverage, flexible leverage allows you to change it accordingly, whether you’re going for low-risk or high-risk trades. High leverages are great as it allows you to trade several trades at once in your account, but it comes with the risk of losing discipline. It’s easy to overtrade with high leverage because you’re assuming that you can enter all the trades you want with your high leverage. Low leverage, on the other hand, gives you the discipline to enter just a few trades, but you can only enter a certain number of trades. If you choose a broker with flexible leverage, you control the leverage you set for your trades and not your broker. If you want to switch from high leverage to low, you can do that accordingly. Along the way, you’ll learn that leverage is a double-edged sword, which makes it a disadvantage if you choose a broker with fixed leverage because you have no control over that.
5. Your broker should offer several instruments
Not all brokers offer the same range of instruments, and this is something you’d want to be particular about if you want to expand your trading experience. Certain brokers are restricted to currencies and cfds, while other brokers offer a wide array of instruments such as futures, cryptocurrencies, indices, and the like. A wide variety of instruments will give you the flexibility you need as a forex trader. As you go along in your journey, you’ll realize that currencies are the least volatile you can trade within the financial market, which makes them perfect for beginners. However, you may want to start trading other instruments and with the right broker, you can do this. If instruments are that important to you, it’s best to choose a broker that gives you that wide range and most importantly, charges low to no commission for each trade. You’d also want to check the spreads as choosing the best forex broker is one with low spreads.
6. Your broker should have smooth execution
A broker with smooth and efficient execution will ensure your success as a forex trader. Under the assumption that you have a stable internet connection and the market operates under normal conditions, the exact price you enter your trades is exactly where it should be – not a moment before or after. This is specifically crucial when you’re a scalper or someone who enter trades with a short-term goal in mind. Scalpers normally enter trades for just a minute or two and then exit their trades as quickly as they entered. When your broker has poor execution of trades, this may lead to losses instead of profits since your entry point is another defining factor in succeeding as a trader. One wrong entry point could lead to a loss instead of gain – and this is what you’ll learn as a forex trader. When you click buy or sell on a specific currency, the point you entered in should be your exact entry point.
7. Your broker should provide accurate materials
As mentioned earlier, the best forex broker should care about your success as a forex trader. Your broker should provide resources and education to help both your technical and fundamental analysis for a more accurate trade. In fact, it’s best if they provide news and current events for your fundamental analysis. These resources and education will help you gain more knowledge and strategies as a trader, which you can apply to your trades. Some brokers will even email you a weekly update on the movement of certain currencies you’re eyeing, whether it’s basic currencies or metals. Providing a wide array of materials is how you ensure your broker not only cares about you, but they want you to succeed. Some brokers will also hold live seminars and platform tutorials for a more effective coaching session on how to make it as a forex trader. A lot of people want to succeed as a trader, but few will have the right knowledge to make it through. Choosing the right broker will make sure that you have the necessary tools and materials to be equipped with the knowledge to succeed.
8. Your broker should have low spreads
For most traders, spreads are the defining factor in choosing a broker. When you choose a forex broker that provides low spreads, this simply means you’ll spend less with trades. Spreads are the determining factor between the given price and bid price so a high spread broker would mean that this will cost you higher with each trade. Low spreads also determine lower volatility so as a beginner, choosing a broker with low spreads is the best option for you so you won’t feel as overwhelming when entering the financial market. Lastly, low spreads set you up with the low-risk trades for a more successful forex trading experience.
In conclusion, I hope this article was able to help you gain insight into the best forex broker to choose in 2021. Being a forex trader isn’t easy, which is why choosing the right broker will make your life a whole lot easier. With the right resources, education, low spreads, and adjustable leverage, you can have a smooth trading experience that will lead you to more profits than losses. It’s a bonus if your broker genuinely cares about your journey as a forex trader. With these tips, hopefully, you’ll choose the best forex broker in 2021.
Broker forex list
Forex trading can be very rewarding, if you do it right. How do you do it right? By being disciplined, by sticking to your trading plan, and by using the right broker. Not just any broker but a top forex broker.
After practicing with a demo account and backtesting your strategy, it is now time to get a real account and start making money. You must choose a broker that has your best interests at heart, a broker that is regulated and has a track record of reliability.
Here we will be sharing a list of top forex brokers to help you achieve success in your trading career.
Minimum deposit: $5
Max.Leverage 1:200
Spread from 0.6 pips
Head office: cyprus,UK
Minimum deposit: $100
Max.Leverage 1:500
Spread from 0.2 pips
Head office: cyprus
Minimum deposit: $100
Max.Leverage 1:2000
Spread from 2 pips
Head office: st.Vincent
Minimum deposit: $200
Max.Leverage 1:500
Spread from 0.1 pips
Head office: australia
Minimum deposit: $10
Max.Leverage 1:500
Spread from 0.4 pips
Head office: st.Vincent
Minimum deposit: $1
Max.Leverage 1:3000
Spread from 0.1 pips
Head office: belize
When choosing a broker, there are some key factors you must first consider. Factors like the trading fees, regulating body, reliability, customer service, trading resources available, and so on. We will go over the key factors now.
Qualities of top forex brokers
Trade execution
What you want is a broker that fills your orders as quickly as possible. This way your orders get filled at the exact price you want.
Regulation
To put this plainly, stay away from non-regulated brokers. Regulated brokers are secure because if any issues arise, the regulating body will take up the case and get you your money.
Tight spread
Go for a broker that offers tight spreads and charges little commission. The trading fees make a significant impact on your bottom line especially as a new trader.
Customer service
You need a broker that is available 24/7 to reply to your queries. Top forex brokers have excellent customer service and are always willing to help their clients iron out any kinks.
Markets offered
As a beginner, you probably won’t be trading so many instruments in various markets. However, as time goes on, you will want to diversify into other markets. Choosing a broker that allows you to trade as many instruments as possible is key.
Types of top forex brokers
In general, forex brokers can be grouped into 2 broad categories; a dealing desk broker, and a non-dealing desk broker. Non-dealing desk brokers can further be divided into straight-through processing (STP) brokers and electronic communication networks (ECN) brokers.
Dealing desk brokers (market makers)
Market makers are brokers that trade against you. This means that if you place a buy, they place a sell. If you place a sell, they place a buy. If you lose, they win. Despite how this may sound, market makers are not ‘bad guys’. In fact, opening a forex account with a market maker is sometimes beneficial to beginner traders.
Non-dealing desk brokers
Straight through processing. This type of broker routes your orders to liquidity providers who are connected to the interbank market. These brokers make money by increasing the spread a little bit.
Electronic communication network
This type of broker sends your orders directly to the ECN, where it can be filled by other players in the ECN. ECN brokers make money by charging you are commission.
These 3 types of brokers all have their advantages and disadvantages. We will help you sort out the best from the rest. Check out our top list of forex brokers.
Fxdailyreport.Com
As a forex trader, finding the right broker is the most important aspect of your trading journey. Your broker can make your trading life much easier if you do it right. You can never truly predict the financial market completely, but a broker can help you gain the knowledge and expertise for a successful trading experience. When choosing a broker, you need one that genuinely cares about you and doesn’t just see you as their client or customer. It’s also recommendable to choose a regulated broker, just to be sure. In this article, we’ll be talking about tips for finding the best forex broker in 2021.
1. Your broker should be regulated
There’s a reason why choosing a regulated broker is important – it ensures security and reliability on your end. If you end up going for an unregulated broker, they can easily break the laws and take advantage of you. Unregulated brokers don’t comply with any rules whatsoever and they’ll behave in any manner they please. This is dangerous as if a serious issue arises with your broker, you can’t bring up the legality with an unregulated broker since they aren’t under any laws in the first place. If your money turns up missing or if any financial complications happen against your broker, you can’t sue them since they’re unregulated. While they’re not illegal, choosing unregulated brokers isn’t exactly a wise choice. To ensure both your safety and security, it’s best to go with a regulated broker instead. Before choosing a specific broker, make sure to do your research on whether they’re regulated or not.
Top regulated forex trading brokers for 2021
| Broker | info | bonus | open account |
|---|---|---|---|
| min deposit: $5 spread: from 0.2 pips leverage: 500:1 regulation: FSA (saint vincent and the grenadines), cysec | 50% deposit bonus, real contest 1st prize luxury car BMW X5 M, copy trading, trade&win. | Visit broker | |
| min deposit: $1 spread: from 0 pips leverage: 3000:1 regulation: cysec, IFSC | $100 no-deposit bonus, 100% deposit bonus | visit broker | |
| min deposit: $5 spread: from 0 pips leverage: 888:1 “*this leverage does not apply to all the entities of XM group.” regulation: ASIC, cysec, IFSC belize | “50% +20% deposit bonus up to $5,000, loyalty program bonus “*clients registered under the EU regulated entity of the group are not eligible for the bonus and the loyalty program” | visit broker | |
| min deposit: $1 spread: from 0 pips leverage: 2000:1 regulation: FCA UK, cysec, FSP, bafin, CRFIN | 35% of the account deposit | visit broker | |
| min deposit: $100 spread: starting 0 pips leverage: up to 400:1 regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA | visit broker | ||
| min deposit: $300 spread: floating, from 0 pips leverage: 500:1 regulation: FCA UK reference number 579202 | visit broker | ||
| min deposit: $200 spread: starting 0 pips leverage: 500:1 regulation: ASIC australia, FCA UK | visit broker | ||
| min deposit: no minimum deposit spread: 1.2 pips leverage: 50:1 regulation: CFTC, NFA, FCA, MAS, ASIC, IIROC | visit broker | ||
| min deposit: $10 spread: leverage: regulation: cysec | - | visit broker | |
| min deposit: $200 spread: from 3 pips leverage: 400:1 regulation: NFA, FCA, cysec | visit broker |
2. Your broker should have no transaction fees
One of the significant aspects of choosing the best forex brokers 2021 is payment transactions. The last thing you should worry about is how you’re going to get payments to and from your bank, card, or whichever method you most prefer. Unfortunately, some brokers charge a certain percentage or fee with every deposit or withdrawal fee so it’s best to choose those that don’t charge you for these. The right forex broker should encourage you to do transactions without much complications and hassle on your end. The specific reason brokers hold your funds is to facilitate your entire trading experience so there’s no reason to make transactions more complicated than it is – or charge a high amount with every deposit or withdrawal you make. We’ve mentioned above that your broker is supposed to make your trading life easier, not harder, and the same concept applies to the deposit and withdrawal aspect. You should also note that some brokers charge for inactivity fee for your account, so also be wary of those brokers.
3. Your broker should have efficient customer service
Out of all aspects, customer service is the one aspect that determines if your broker genuinely cares about you and your success as a forex trader. Brokers aren’t perfect and they also make mistakes, which is why customer service plays an important role in choosing the right broker. Brokers with a fast response time and efficient customer service will make your life so much easier, especially when responding to your concerns, inquiries, and questions. The competence of forex brokers dealing with your concerns and complaints reflects how efficient they are as your broker. Even if it’s as simple as asking for help with transactions, your broker should make your life easier by responding to your question immediately and with accurate information. There are even brokers that would call you and personally welcome you as their broker, which is an admirable feature if you find a broker like that. It makes you feel welcomed and supported, despite the uncertainty as a forex trader.
4. Your broker should offer flexible leverage
While there can be certain advantages with fixed leverage, flexible leverage allows you to change it accordingly, whether you’re going for low-risk or high-risk trades. High leverages are great as it allows you to trade several trades at once in your account, but it comes with the risk of losing discipline. It’s easy to overtrade with high leverage because you’re assuming that you can enter all the trades you want with your high leverage. Low leverage, on the other hand, gives you the discipline to enter just a few trades, but you can only enter a certain number of trades. If you choose a broker with flexible leverage, you control the leverage you set for your trades and not your broker. If you want to switch from high leverage to low, you can do that accordingly. Along the way, you’ll learn that leverage is a double-edged sword, which makes it a disadvantage if you choose a broker with fixed leverage because you have no control over that.
5. Your broker should offer several instruments
Not all brokers offer the same range of instruments, and this is something you’d want to be particular about if you want to expand your trading experience. Certain brokers are restricted to currencies and cfds, while other brokers offer a wide array of instruments such as futures, cryptocurrencies, indices, and the like. A wide variety of instruments will give you the flexibility you need as a forex trader. As you go along in your journey, you’ll realize that currencies are the least volatile you can trade within the financial market, which makes them perfect for beginners. However, you may want to start trading other instruments and with the right broker, you can do this. If instruments are that important to you, it’s best to choose a broker that gives you that wide range and most importantly, charges low to no commission for each trade. You’d also want to check the spreads as choosing the best forex broker is one with low spreads.
6. Your broker should have smooth execution
A broker with smooth and efficient execution will ensure your success as a forex trader. Under the assumption that you have a stable internet connection and the market operates under normal conditions, the exact price you enter your trades is exactly where it should be – not a moment before or after. This is specifically crucial when you’re a scalper or someone who enter trades with a short-term goal in mind. Scalpers normally enter trades for just a minute or two and then exit their trades as quickly as they entered. When your broker has poor execution of trades, this may lead to losses instead of profits since your entry point is another defining factor in succeeding as a trader. One wrong entry point could lead to a loss instead of gain – and this is what you’ll learn as a forex trader. When you click buy or sell on a specific currency, the point you entered in should be your exact entry point.
7. Your broker should provide accurate materials
As mentioned earlier, the best forex broker should care about your success as a forex trader. Your broker should provide resources and education to help both your technical and fundamental analysis for a more accurate trade. In fact, it’s best if they provide news and current events for your fundamental analysis. These resources and education will help you gain more knowledge and strategies as a trader, which you can apply to your trades. Some brokers will even email you a weekly update on the movement of certain currencies you’re eyeing, whether it’s basic currencies or metals. Providing a wide array of materials is how you ensure your broker not only cares about you, but they want you to succeed. Some brokers will also hold live seminars and platform tutorials for a more effective coaching session on how to make it as a forex trader. A lot of people want to succeed as a trader, but few will have the right knowledge to make it through. Choosing the right broker will make sure that you have the necessary tools and materials to be equipped with the knowledge to succeed.
8. Your broker should have low spreads
For most traders, spreads are the defining factor in choosing a broker. When you choose a forex broker that provides low spreads, this simply means you’ll spend less with trades. Spreads are the determining factor between the given price and bid price so a high spread broker would mean that this will cost you higher with each trade. Low spreads also determine lower volatility so as a beginner, choosing a broker with low spreads is the best option for you so you won’t feel as overwhelming when entering the financial market. Lastly, low spreads set you up with the low-risk trades for a more successful forex trading experience.
In conclusion, I hope this article was able to help you gain insight into the best forex broker to choose in 2021. Being a forex trader isn’t easy, which is why choosing the right broker will make your life a whole lot easier. With the right resources, education, low spreads, and adjustable leverage, you can have a smooth trading experience that will lead you to more profits than losses. It’s a bonus if your broker genuinely cares about your journey as a forex trader. With these tips, hopefully, you’ll choose the best forex broker in 2021.
So, let's see, what was the most valuable thing of this article: list of the best forex brokers for 2021 providing access to foreign exchange markets. Explore forex broker reviews, ratings, and trading conditions. At broker forex list
Contents of the article
- Real forex bonuses
- Best forex brokers for 2021
- Role of forex brokers
- Criteria to consider in choosing a forex broker
- 1. Spreads/commissions
- 2. Leverage
- 3. Regulation
- 4. Broker type
- 5. Trading resources
- 6. Customer support
- Our list of forex brokers
- Brokers
- Regulated forex brokers
- Can I trade forex without a broker?
- Do I need license to trade forex?
- Are forex brokers regulated?
- What does a regulated broker mean?
- How do I know if my forex broker is regulated?
- How to choose best forex broker?
- Best CFD forex brokers for 2021
- What assets are traded as cfds?
- Types of CFD brokers
- Criteria for choosing a CFD broker
- Fxdailyreport.Com
- Top recommended and the best forex brokers for...
- Best CFD forex brokers for 2021
- What assets are traded as cfds?
- Types of CFD brokers
- Criteria for choosing a CFD broker
- Fxdailyreport.Com
- Top regulated forex trading brokers for 2021
- 2. Your broker should have no transaction fees
- 3. Your broker should have efficient customer...
- 4. Your broker should offer flexible leverage
- 5. Your broker should offer several instruments
- 6. Your broker should have smooth execution
- 7. Your broker should provide accurate materials
- 8. Your broker should have low spreads
- Broker forex list
- Qualities of top forex brokers
- Types of top forex brokers
- Fxdailyreport.Com
- Top regulated forex trading brokers for 2021
- 2. Your broker should have no transaction fees
- 3. Your broker should have efficient customer...
- 4. Your broker should offer flexible leverage
- 5. Your broker should offer several instruments
- 6. Your broker should have smooth execution
- 7. Your broker should provide accurate materials
- 8. Your broker should have low spreads
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