Jan 26 2021 61
When you trade forex, you should trade with the reliable forex brokers only. The reason is very simple. Everything you do in forex trading is performed on the platforms of the forex brokers. That means the quality of the brokers affects your profits and losses significantly. That leads to the question: How can you know which broker is among the best forex brokers in the world? What standards are used to determine that?
This article is the answer for you. At BRKV, we know that finding the right forex broker is the most important, so we did research to figure out which standards can be used to determine the quality of a broker. After a long time, we came to a conclusion that those standards are: reliability, trading cost, trading conditions, and customer support.
Here are the top 10 forex brokers in the world that I think can meet the standards above:
- Exness: 9/10
Learn more here
- XM: 8.5/10
Learn more here
- Hotforex: 8.5/10
Learn more here
- FXTM: 8/10
Learn more here
- Pepperstone: 7.5/10
- Natureforex: 7/10
- Think Market: 6.5/10
- SaxoBank: 6/10
- FxPro: 5.5/10
- FBS: 5/10
In this video, BRKV Forex will explain in-depth every factor for you to review and choose the best forex brokers for yourself. You can watch the video to understand more of what we shared here today!
STANDARDS FOR CHOOSING THE BEST FOREX BROKERS
CFDs are complex instruments, so you need good brokers in order to succeed in trading. Believed by many, the best forex brokers tend to be the ones who focus on improving their trading conditions to help traders earn money, and do not concentrate on short-term profit or pay IB more money to attract customers. In my opinion, for a broker to be qualified as the best forex brokers 2021, it has to meet these standards below:
|Reliability||Trading costs||Trading conditions||Customer services|
|Historical activities||Commission||Deposit/withdrawal||Local offices|
|Transparency||Leverage||Trading platforms||Education programs|
|Minimum deposit||Bonus programs|
HOW TO FIND THE BEST FOREX BROKERS
Well now you know the standards. But how do our top 10 best forex brokers meet these standards. To learn more, continue reading:
The best forex brokers must have trusted regulations
When you set foot in the forex market, you must know what forex regulations are. The forex market is currently the largest market in the world. Therefore, scammers would love to infiltrate this market to look for their prey. Regulations are made to keep you safe. Big and trustworthy financial organizations are built to monitor this market. If a broker want to operate legally, they must meet the standards given by these organizations. Therefore, a broker with regulations is a safer and more trusted forex broker.
And of course, regulations have levels too. There are the top-tier ones from countries with large and famous markets like the United Kingdom, America, or Japan. The top tiers are harder to acquire than the others; therefore, brokers with those regulations can be considered more reliable. Here are the top reliable forex brokers with their regulations:
- Exness.com: FCA, CySEC
- XM.com: ASIC, CySEC, IFSC
- HotForex.com: FCA, DFSA, FSCA, FSA
- Forex.com: FCA, FSCA
- CMCMarkets.com: FCA, ASIC, IIROC, MAS
- SaxoBank.com: FCA, ASIC, SFC, JFSA, MAS, FINMA
How many regulations are enough?
Yes, BRKV regularly face this question about the number of regulations. As you can see above, Exness has only 2 regulations while SaxoBank has up to 6. So does that mean SaxoBank is more reliable than Exness? Not at all. The truth is the regulation of an organization can only monitor the operation of the brokers in the country of the organization. For example, an American regulation doesn’t have any effects on the operation of that broker in Asia.
Therefore, if your country doesn’t have any forex regulations, you should choose the broker with a top-tier regulation. One is enough. Why? Because in order to keep traders safe, regulations have to limit several features of a broker. Those features bring both huge chance of profit and risk. So, if a broker has too many regulations, its services won’t be much beneficial for you anymore. On the other hand, if your country has a forex regulation, you’d better work with a broker who can obtain it.
Transparency and activities
How to define the transparency of a forex broker? Transparency means the broker has nothing to hide from their customers. They want to show their traders as much as possible. In terms of transparency, nobody can beat Exness. This broker upload their whole business records and information on their website. Customers can check anything they want and see how the company performs over a year.
Another aspect that decides the credit of a broker is whether or not they have segregated accounts for customers’ money. All brokers under the FCA regulation have to do this.
Making money from forex trading is not an easy task at all. Moreover, you have to pay the brokers for their services. As a result, all traders want to cut down their trading cost as much as possible. The trading cost of a broker is a combination of various factors. Let's have a look at them:
The best low spread brokers
The trading cost of a broker is calculated by adding all the factors together. The two most important factors are the spreads and commissions.
Spread is the difference between the bid (buy) price and the ask (sell) price of a specific currency pair. Let’s take the pair EUR/USD for an example. You buy EUR at 1.12345 USD and sell it at 1.12356. The difference here is 0.00011 USD, or in forex, 1.1 pips as we take the fourth number after the decimal to be the pip value. Each broker will have different spreads for different currency pairs. As a result, all traders want to trade with brokers who have very low spreads on the major currency pairs. Fortunately, with our many years of experience with a great number of forex brokers, we can confidently give you the spreads on the most popular currency pair, EUR/USD, of the lowest spread forex brokers:
- Exness – 0.7 pip. Check Exness spread
- XM – about 0.8 pip. Check XM spread
- Hotforex – about 1 pip. Check HotForex spread
Best low commission brokers
When you trade regular accounts, brokers charge you spreads. But when you trade ECN accounts, the spreads are nearly zero, which means the brokers have to charge something else. And it is commission. It is charged for every transaction you make on the broker’s platform.
If you want low trading cost, you should choose brokers who have low commission. Here are the lowest commission in the market.
- FXTM.com: $40
- Exness.com: $50 Check Exness commission
- Forex.com: $50
Best forex leverage
To maximize your profit, you can use leverage. Traders use leverage to multiply their profit. When you use leverage, broker will keep an amount of money from your fund in order to prevent you from losing more than you can pay. The margin will return to your account when that trade is complete. Leverage multiply both your profit and loss. When you start to lose almost all of your money. A margin call will appear to let you know that and you trade is closed automatically.
If you have a good risk management plan, it’s ok to use leverage. Here are the brokers with the highest leverage in the market:
- Exness.com: 1:Unlimited
- FBS.com: 1:3000
- FXTM.com: 1:1000
Low minimum deposits
Of course when you want to start trading, you have to deposit some money in. It's not free. You know that, right? This is when beginners get nervous. They don't want to deposit to much at first, because statistically speaking, over 98% of forex beginners lose everything from the start. That's why brokers with low minimum deposits are appreciated. Here are the lowest minimum deposits rate of each of my favorite brokers:
- CMCMarkets.com: No minimum deposit required.
- IG.com: No minimum deposit required.
- Exness.com: 1 dollar
Overnight fee, or professionally called Rollover or Swap, is an amount of money you have to pay when you keep your positions open overnight. It's important to know about this fee because I know some traders who were confused when their winning positions suddenly became losing in the morning. The brokers automatically charge this fee every time the US session closes. Scalpers or Day traders don't care about swap because they close all their position in a trading day. Long-term traders, on the other hand, always want to pick brokers with low swap. Here are the swap rates of my best brokers for EUR/USD:
- Exness: 0.3 pip
- XM: 0.3 pip
- ICMarkets: 0.4 pip
The best forex account types
Every broker must have 3 types of account for all levels of trader (beginner, experienced, expert). Those 3 account types always are: demo account, regular account, and ECN account. All 10 brokers I pick have these account types. If a broker doesn't have one of these accounts, it is probably not a real broker.
Best ECN brokers
Besides regular accounts, there is ECN account. Brokers who can offer traders the real ECN account are often called ECN brokers. ECN account is perfect for experts and professional traders. They trade a lot of money everyday so they need an account that have low prices, high security, low slippages, great trading platform, and fast payment system. Here are the names that check out the list of the best ECN brokers:
The best forex brokers should have better trading platforms
As you may know, the MetaTrader4 (MT4) and MetaTrader5 (MT5) are the most common trading platforms in the market. They are developed by the company MetaQuotes Software. Hundreds of brokers use these two platforms and they are very familiar to the majority of forex traders. They are easy to use. They come with a lot of indicators and chart drawing tools that can help you do your best in forex trading. Here are the best forex brokers who use the MetaTrader platforms:
Best trading platforms: Self-designed
On the other hand, there are brokers who design their own platforms for customers. With their own platforms, they can customize and make features as they want. These platforms are mainly user-friendly, nicely designed, and packed with exclusive tools and features. We have traded with them all and pick out our list of the best self-designed trading platforms:
The strength of the server is quite important to your trading at a forex broker. It affects directly to the slippages. Slippages happen when you put in a price for a trade but the platform processes it for too long that the market price has changed. The difference between the old and new price is slippage. Slippage makes you lose your great chance in trading and easily upset traders. To avoid slippages, you should choose brokers with strong servers so your orders can be proceeded faster. Here are the brokers with the fastest and most stable server:
Best social trading platforms
A version of trading platform is social trading platform. Exness released its exclusive social trading platform early this year. I have tried it for 6 months now and I must say, it's really impressive. Exness social trading platform lets you copy the trades of the top forex traders these days for free. You can easily earn money just as the professionals do it. Since Exness is one of the biggest forex brokers, the traders there really focus on stable and long-term profit, not just some short-term goals to lure beginning followers. They are ranked according to different criteria like profit percentage, risk score, and commission.
Best online brokers
In some countries where there are no local brokers, traders must look for the best online forex brokers. When trading online with foreign brokers like this, traders mainly look for security. As I said before, security can be proven through forex regulations. After a reliable forex broker has proven their trustworthy, traders now look for low cost, good trading conditions like normal. Here are the best online forex broker ranking 2021:
The best forex brokers should have the best payment systems
Fast and no-limit payment system is the best. We deserve to get our profit and deposited fund quickly. I knew some brokers try to reject our withdrawal if we withdraw too much. Because they don't have enough available money for the withdrawal. And if they keep you money too long, you may lost all your fund in trading forex. So, don't trade with these brokers.
Good payment system are:
- Fast deposits and withdrawals system.
- High minimum withdrawal limitations.
- Low or zero fee for deposits and withdrawals.
- Local payments.
I have traded with many brokers and Exness has the best payment system. All transactions are instant. You can get your money within seconds. You also can withdraw in the weekends. There are many free-of-charge and local payment systems that all are instant and free.
Exness payment system
Best forex bonus
Bonuses are very attractive to traders worldwide. You can use bonus/rebate to reduce your trading cost. You can use deposit bonus or welcome bonus to test a broker for free. However, most big and famous brokers don’t have bonus because their traders are too professional to care about it. Only small and medium traders like forex bonus.
Here are the best forex bonus of all the brokers we can find:
Needless to say, customer service is one of the most important when doing business since business is all about people, trust and profit. Not to mentioned that the whole forex trading market is a rather vast and complicated place that the beginners/new traders sometimes find themselves lost. They are almost always in need of professional help as well as advices on how to make money safely.
If they have an office in your country, they are the more reliable. Each broker has their targeting countries. And they only open office in countries where they are popular. They can only be popular in your country when they offer you the best services and the most competitive conditions if you have a forex brokers comparison.
Moreover, when they have office in your country, they will support you faster. If there is any problem, you can get support from their offices. If they scam you, the law will protect you.
- Exness has local offices in Cyprus, China, Malaysia, Singapore, and Thailand
- XM has local offices in Spain, New Zealand, Greece, Hungary, and Australia
- FxPro has local offices in the UK, Cyprus, Monaco, UAE, and the Bahamas
But, it doesn't mean brokers who don't have office in your country aren't reliable. As I mentioned above, the brokers in the top biggest forex companies with the above regulations are trusted enough. If they have offices in your country, they are even better.
Means of contact
For countries that don't have regional offices, they offer support online as well as via phone in English or your native language. The language support is very crucial to traders who want to work with the best forex brokers in Asia because those traders may not be very good at English. Here is the brokers list of those who can help you in different languages.
- FxPro supports 32 languages 24/5
- XM supports 23 languages 24/7
- IG supports 22 languages 24/7
Best forex contests
On some occasions, forex brokers can host forex trading contests with high prizes to attract new traders. Although almost all contests are won by professional and experienced traders, they are still a great way for you to test a forex broker for free. An ideal forex contest should be available for everyone, open for a long time, and not require too much from traders to participate.
Here are the top forex contests right now:
- HotForex Demo Contest
- FBS Forex Demo Contest
- FXTM Titan Demo Contest
BEST FOREX TRADING APPS
This category is for your trading only. Besides a good forex broker, you still need some other tools to assist your trading. And in the age of smartphones, these tools can be in your hand in the form of phone apps. With the help of trading apps, your trading can be much easier and more profitable. Here are the best trading apps that I think any traders should have on their phone:
- Bloomberg Business: best source of financial news. It can keep you updated 24/7
- Forex Hours: Global market analysis.
- FXDailyReport: Real-time forex market analysis.
BEST FOREX BROKERS FOR BEGINNERS
Of course we must have a category for beginners in forex trading. In forex trading, the needs of beginners are way different from experienced or experts. Beginners trade little money because they are scared of getting scammed and they don’t have much trust in this market. That’s why they need brokers who have really low spread, low price range, and great support. Here, you can see our list of the best forex brokers for beginners:
- Exness is the best forex broker for beginners. They have diverse account types ranging from Standard Cent, Standard to Pro and Zero. Their accounts have really low spreads for the main currency pairs. Moreover, they have a 24/7 support team ready to assist customers in various languages.
- XM is also very great in terms of a place to start trading. They have low prices. They support customers very well. Also, they frequently host educational seminars to teach people to trade in many countries. You should check it out.
- FxPro is also a really good broker for beginners. They have really diverse price ranges. In terms of customer service, they are definitely one of the top brokers right now.
THE UNIVERSAL STANDARDS FOR THE BEST FOREX BROKERS
No matter where you come from, there are some common standards for the best forex brokers in your country:
- It must be regulated by a financial organization that monitors foreign exchange in your country. If your country doesn't have one (like most Asian countries), pick a broker with the top regulation (such as US, UK regulations). It has to be a big foreign broker.
- It has to be low-cost. Don't trade with broker whose spreads are wide.
- MT4 or MT5 platform is the most suitable for you. It is easy to find instructions online because these platforms are very common.
- Finally, it is best to find a foreign broker that can support in your native language. Things will be much clearer.
Those are the common standards for the best brokers anywhere. If a broker can meet all these requirements, it is a broker that can bring your profits and safety while trading.
BENEFITS WHEN TRADING WITH A RELIABLE FOREX BROKER
Less risky investment
We all know that the money we use for forex trading is usually our savings. It is the money that we made from sweats and tears. Therefore, we never want to lose everything from that investment in the forex market. When you trade with a reliable forex broker, the risk is reduced considerably. Reliable forex brokers help keep your money safe and secured. You won’t get scammed. The only way to protect your funds is to trade with a reliable broker.
Maximize your profit
With a worry less, you now have a better mind and focus on your goals. Thanks to that, it would be easier for you to maximize your potential profits in this market.
Better trading platforms
What comes with a reliable forex broker is a good trading platform. A good trading platform is the root for success for any kind of trading strategies. For scalpers who mostly trade when there is great volatility, they need a trading platform with really low spread and great execution speed. And for swing traders whose trading time is longer, they need platforms that have low swap. All of that can only be provided by a reliable broker. When you trade with a reliable forex broker, you will really see the differences.
AVOIDING SCAMMING BROKERS
A good way to avoid scammers in the forex market is to join forums or groups on various social networks. There are multiple groups like that on Facebook and many more forums online. I know you’re asking: But don’t those scammers join these groups as well? Actually, it is quite easy to figure out who’s telling the truth. A good group or forum would never let the number of scammers exceed the number of true traders. Whenever you need to review a broker, the opinion of the majority is correct most of the time.
Sometimes, your forex broker is not a scammer yet. They just do some tricks in order to take advantage of certain situations. For example, sometimes they can widen the spreads so that the price will hit all of your Stop Losses at once. In order to find out whether this is true, you need to do a price comparison in various situations to see if your broker changes the way they act.
Keeping a trading journal
In order to perform that price comparison, it is a good idea to keep a trading journal of your own. By doing this, you can easily keep track of how your broker is behaving. Plus, you can also see how much you have grown in terms of trading forex and whether your strategies are working or not. This can help you improve your forex trading knowledge as well as experience.
In conclusion, based on hundreds of tests and years of trading, we are very confident to say that these are the top forex brokers list:
The top 10 forex brokers rankings:
- Exness: 9/10
- XM: 8.5/10
- Hotforex: 8.5/10
- FXTM: 8/10
- Pepperstone: 7.5/10
- Natureforex: 7/10
- Think Market: 6.5/10
- SaxoBank: 6/10
- FxPro: 5.5/10
- FBS: 5/10
On our journey to find the best forex brokers out there, we cannot single-handedly trade at all forex brokers. The measure we used is that we set up a network of forex traders from our friends and acquaintances. From there, they will get connected with other traders as well and we will discuss all forex brokers that we have ever trade with. So, the knowledge you're getting here is from the collective of hundreds of traders.
Moreover, when we finally narrow down the top brokers in the market, we will trade at those brokers at the same time to see which one really stands out. We compare those brokers factors by factors to see overall, who is the most suitable forex broker for each type of forex trader.
Forex risk disclaimer:
Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency of the company. The exchange risk arises when there is a risk of an unfavourable change in exchange rate between the domestic currency and the denominated currency before the date when the transaction is completed. Learn more here.