BRKV - When you trade forex, you should trade with the best 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. 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, it has to meet these standards below:
|Trustworthy||Trading costs||Trading conditions||Customer services|
|Historical activities||Commission||Deposit/withdrawal||Local offices|
|Transparency||Leverage||Trading platforms||Education programs|
|Minimum deposit||Bonus programs|
Here are 10 forex brokers that I think can meet the standards above:
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 safer and more trusted than an unregulated one.
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:
Yes, we 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.
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. You can check that here.
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 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:
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.
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:
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:
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.
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:
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:
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:
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. Try Social trading at Exness, one of the best forex brokers in the world today.
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 broker has proven their trustworthy, traders now look for low cost, good trading conditions like normal. Here are the best online forex brokers:
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:
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.
Check Exness payment system now!
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 comparison between brokers.
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.
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.
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.
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:
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:
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:
In conclusion, based on hundreds of tests and years of trading, we are very confident to say that these are the 5 best forex brokers in the world: