The forex market is estimated to have a capitalisation of $1.9345 quadrillion with a daily turnover of $6.6 trillion.With Asia and Indonesia contributing a majority of the world’s population, they attract thousands of forex brokers, and not all of them scrupulous.We understand that as a forex trader, you may not have the time vet all the online forex brokers. We have taken that responsibility for you and made our recommendations of the best forex brokers.
Regulation: If you come across a forex broker that is not regulated; no matter how good they are or what incentives they offer you, completely avoid them.You must open an account with a CFD broker regulated by a recognised financial authority in your locality, as this safeguards your investment.
Variety of tradeable assets: Another quality of the best financial broker is the number of tradeable assets they provide.By choosing fromseveral CFDs, you will have the advantage of diversifying your portfolio and even hedge your positions. You should, however, check if the broker is licensed to offer particular CFDs in your country since authorities in a few localities strictly regulate the types of CFDs traded.
Spread:The spread is the difference between the ‘bid’ and the ‘ask’ price of a currency pair. It is the primary way forex brokers earn their revenue and is considered a cost to the trader. Therefore, the best forex brokers offer the lowest possible spreads that are consistent in all trading sessions to ensure you keep your costs low.
Types of accounts offered: We all have different trading goals and styles. Best forex brokers are aware of this and make different types of accounts available to accommodate the diversity of forex traders.Apart from the normal micro and standards accounts, the best forex brokers include Islamic and VIP trading accounts as well.
Allows for different types of trading styles: Hard to believe it, but there are forex brokers who do not allow for scalping. The best forex brokers, however, give you the freedom to open and close positions as you please.
Speed of execution: The best forex brokers are efficient at executing your trades to ensure you are not caught in slippages which eat into your profits.
Trading platform: The popular forex trading platforms are MT4, MT5, WebTrader, and their mobile versions. The best forex brokers provide these to ensure your trading experience is seamless. Other have gone as far as providing their customised platforms.
Education: Learning never really ends. The best forex brokers know this and provide educational content and seminars depending on a trader’s market experience.
Customer service: The best forex brokers havean industry-knowledgeable support team dedicated to prompt service of the traders’ needs.
AT CompareThemFX, we have a team of traderswho analysed and put the brokers through tests to ensure they qualify in all the factors listed above. Furthermore, we ensured that they adhere to all regulatory requirements in their specific localities.
Our tradersopened and closed tradesof different sizes at multiple timeframes under different volatilities to test the trade execution efficiency of the brokers.We then recorded the time taken to execute these trades under different platforms and matched our results with the average time advertised by these brokers.
The team of traders also compared their trading experience in both the demo and live accounts to confirm if the trading conditions are as advertised. By trading with all the assets available, we got toconfirm the spreads and trading fees charged by these CFD brokers. Furthermore, with simultaneous trades in both demo and live accounts, we established if the trading conditions are similar in both accounts.
We recruitednew traders with no experience in the forex market or CFD trading and put them through the education course offered by different brokers.We then asked them to rate the usefulness of the educational and training material from the perspective of a beginner trader. Furthermore, our expert traders reviewed whether thecontent and webinar sessions for the advanced traders are relevant.
In the course of trading, our traders tested the knowledge and efficiency of the customer service team. We contacted the support teams through all the channels provided by the CFD brokers 24/7. We questioned them in all manner of topics to gauge their knowledge of the forex market, their attitude towards ‘nagging’ traders, and the timeliness of their responses. Since most CFD brokers claim to provide customer support in multiple languages, we also test this to ensure there is no language barrier.
Our recommendations are location specific. For instance, you can find the best forex brokers in Asia, best forex brokers in Indonesia, Australia etc. Finally,we made sure to deposit and withdraw funds from trading accounts using all the funding methods provided by the brokers.These tests help usindrawing conclusions on which channels are the quickest and charge the lowest fees on transactions.
We understand how frustrating it can be to find a genuine Forex broker for any novice trader. By using our recommendations, you can be assured of all the things mentioned above and just concentrate on your trading activities alone. Cheers!