HOW DO I KNOW WHICH ONE IS THE BEST FOREX BROKER?
There are a number of forex brokers which are operating and choosing the best forex brokers will have an effect on your trading success. To succeed in forex, traders need strategies and each trader has his own personality and different requirements. We have conducted our surveys to aggregate the best forex brokers since 2008. When comparing brokers, we consider many qualities of the brokers and how we compare them. The below information can help you find a great and reliable fx trading broker.
HOW CAN WE COMPARE BROKERS?
The best forex brokers can be found when we compare brokers in these following categories:
- Forex regulations: In this market, regulation plays a very important role in deciding whether a broker is legal or not. Regulations are granted by financial organizations. Of course we include both big and small organizations in our research.
- Trading conditions: This includes all the tools and features that a broker can offer. We compare one by one to see who have the best trading conditions.
- Account types: Brokers have different accounts. We take the best account of each broker to compare with others to see who has the best account for traders.
Our broker ranking allows clients to choose brokers based on regulations, platform choice and trading conditions.
WHAT IS A REGULATED FOREX BROKER?
A regulated broker is the one who has acquired a forex regulation from the financial organization. These organizations are very strict when it comes to regulation so if a broker is regulated by them, they are good to do business with.
TRADING CONDITIONS OF FOREX BROKERS
What is spread?
Spreads indicate that the buying and selling prices of the currency pairs are far away from each other or not. Spread is measured in pips. To maximize profits, traders always find the brokers with the lowest spreads that are applied to the pairs they choose.
What is leverage?
Leverage is a tool that acts like an amplifier for profits in forex trading. It amplifies the transaction size for retail traders to engage in. In cases where the traders can increase the trading size to a maximum of 500 times, the leverage is used in a 500:1 format. The brokers rely on their experiences to reserve the right to limit client’s leverage.
TYPES OF FOREX BROKER ACCOUNTS
Every broker has different types of accounts, the main difference between accounts is between Live (real) accounts, Demo accounts and ECN accounts.
What are live or real accounts?
These are accounts where the funds are real and everything you do in this account type will affect your account balance.
What are Demo accounts?
The funds of these accounts are fake, traders will not face any risk. This provides the service experiences to the clients. However, a few demo accounts can be limited in time but traders can reactivate them easily.
Now you know the answer for “How do I know which one is the best forex broker?” you can check our list of the best forex brokers this year here.