BRKV - Every trader wants to find the best forex brokers. If you think the broker doesn't matter when trading, you're a fool. A broker plays as crucial a role in forex trading just as your strategy or tactic.
For example, you see a good price and decide to sell or buy, but the server of the broker is so slow that when your order is executed, the price has changed (we all know how fast the tide turns in this market) and you lose a chance to make profit, or worse, lose your money.
That's just one example to show the quality of the broker has a profound impact on our trades. Therefore, we all want to find the best forex brokers. After years of trading and testing many forex brokers, our experts from BRKV have come down to the top 5 forex brokers in 2020:
Continue reading to learn how these brokers are the best forex brokers in 2020.
I can see that many traders think choosing the right broker is easy. Just choose the one that has low cost, or the one that has licenses, or the one that has big bonuses. Well, they are wrong. The one with low spread may have high slippages. The one with big bonuses may have really slow servers. To choose the right forex broker, you must look at many aspects and factors. Sound like hard work, right? Fortunately, you’ve got BRKV here. After 5 years of trading with many different brokerages, I am confident to list down the 5 best forex brokers in my opinion. These are the standards that I use to evaluate them:
|Trustworthy||Trading costs||Trading conditions||Customer services|
|Historical activities||Commission||Quotes||Local offices|
|Trading volume||Slippages||Trading platforms||Availability|
And based on the standards above, I think those 5 I mentioned above are the best forex brokers of 2020. Now, let’s go over to see how they can meet all the requirements of the best fx brokers. Moreover, if five aren’t enough for you, check out this article about 10 best forex brokers in the world that I wrote earlier.
When talking about reliability, you mean security and safety. Can that broker keep your fund safe? Can it be trusted? What if it is a scam broker? How to know if a broker is reliable? The answer is regulation, my friends. Regulation is like a certificate that trusted and famous financial organizations in the world gives to brokers if the brokers can meet all the standards required. It represents standards, capabilities, and reputation of a forex trading broker. When a broker is regulated by those organizations, you can put your trust in them completely. All the 5 brokers I mentioned above have trusted regulations so there is no favorite one.
However, make sure that you know what kind of regulation your brokers have, because a regulation of an organization can only be applied to those in the same country. For example, a US regulation can’t provide any protection to traders from South Africa or Thailand. Regulation only means that that broker is reliable enough to work with. Therefore, a broker doesn’t have to have too many regulations. One trusted regulation is enough.
Another factor that can guarantee the credibility of a broker is their trading volume. If the trading volume of the broker is high, it means that there are many people trading with that broker. Look at the monthly trading volume of my 5 best forex brokers:
One more thing is how popular that broker is. If the broker is famous, it means they are big and rich, which makes them more reliable. I have these results from Google Keyword Planner about the most popular forex brokers:
Lastly, you should know things about your brokers in the past. For example, how they react to a certain event or crisis previously. Have they ever been accused with scamming? Or you can check their transparency. When it comes to transparency, no broker can beat Exness. Exness even upload all of their financial reports on their website
Learn more about Exness here
It’s not easy to make money from trading forex, which we can all agree on, so we need to find brokers who require little cost to trade on their platforms. The trading cost is the total expense we calculate from two main factors, spread and commission, and others.
First, I will compare the spread of the 5 brokers I mentioned above. I can guarantee you that their spreads are among the best in the forex market. I will show you the spreads of the most popular currency pair, EURUSD. For more pairs, click the buttons next to the brokers.
So, you can see that Exness, HotForex, and XM are among the lowest spread brokers.
Then, I’ll compare their commissions. All of them are commission-free for their regular accounts. For the ECN accounts, the commission rates are different. They have to charge commission for ECN accounts because the spreads then are nearly zero.
|Exness commission||$2.5||More details|
|HotForex commission||$3||More details|
|FXTM commission||$2||More details|
At this point, you may think that “Hey, I also see many other brokers who have even lower spreads and commissions.” You are right. There are tons of brokers who offer lower, why do I choose these five? Like I have said earlier, the total trading cost you have to pay depends on various factors, which slippages.
Slippage refers to the difference between the expected price of a trade and the price at which the trade is actually executed. Slippage often occurs during periods of higher volatility when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade. Therefore, when you consider a broker, you should also pay attention to their slippage.
Exness guarantees that there is no slippage on their platforms. XM says it hardly happens. I have traded with all these three and here’s what I can say about it. All brokers have slippages. It’s a natural thing in forex trading. The important thing is how much the slippage is. Is it lower than other brokers (I think slippages that are lower than 100 pips is good enough)? How do brokers compensate their customers? I think Exness and XM are the brokers who can handle very well when it comes to slippages. Another thing I see that you really enjoy is bonus and rebate. Indeed they sound good in the beginning. But everything has two sides. If you’re not careful, bonus may be the bait of forex brokers to hook you. You can learn everything you need to know about bonus in my article
There are 3 levels we can use to rank trades, which are: beginners, normal traders, and professionals. So, a great broker is the one who can provide different types of account for all types of traders. The conditions of the accounts of the 5 brokers I chose are similar. They all have 3 classes of account for each targeted trader type: mini/micro accounts, regular accounts, and ECN accounts for each type respectively. You can check each broker’s account here:
Another factor you should know is the account’s leverage. Leverage is the tool that most traders in the world would love. Often, British, American, and Japanese licensed brokers offer low leverage because they have to comply with these licenses of these countries. So as I mentioned above, brokers with many licenses are often less competitive. Among prestigious international brokers, the following forex brokers have the best leverage:
The most popular thing we trade in the forex market is currency pairs. Currencies are quoted in pairs. For example, the most common currency pair, EURUSD, is the Euro versus US dollar pair. From the quote of this pair, we are able to identify the value of the Euro compared to the value of the USD. For example, the quote is EURUSD = 1.1346, which means you have to pay an amount of 1.1346 USD to buy 1 Euro. Each broker gets their quotes from different liquidity providers so you can understand that their quotes will be different as well. As traders, we should choose the brokers who can offer the best quotes. There are other factors such as requote, which you can find in this article Best no-requote brokers.
But one thing I would like to stress on is the trading platform of the broker. Currently, MT4 and MT5 are the two most popular trading platforms in the forex market. Every broker has those two trading platforms. However, their platforms are different in terms of execution speed and execution quality. These factors can affect your trading greatly.
For example, when you see good news and predict a good price, you log in to put in that price. However, there are many others who predict and log in as well, and the server is too weak so you order can’t be completed. Eventually, you miss a huge chance to make money. That’s why you need to do some tests first before trading with a broker. You can deposit a small amount of money into those brokers (like 10 or 20 dollars) and trade with them for at least a month. Also, try trading when there’s big news to see how their servers work and how much their slippages are. After testing by myself, I can give you 2 brokers that have very low slippage rates:
Forex trading is difficult. The best fx brokers must be able to support their customers at all time and in many different languages. Most brokers assist their clients via live chat or email. However, I think the most effective way is a face-to-face conversation. That means it is better if the broker has local offices in your country or region.
Exness seems to have the best support team. This broker has very strong sales, support, and marketing team who is always available to the local markets. Besides, their IB network is also very strong. Therefore, if you have any problems, just chat with them on the website, and you will get the response instantly. Moreover, Exness supports clients 24/7.
You can find the contacts of my best forex brokers in 2020 here:
Last but not least, the payment system. You may think it is insignificant at first, but only when you really trade with a broker can you see how important it is. Most of the brokers are foreign, so you need to transfer and withdraw money overseas. That’s when the bank charge you transaction fees. Making money from forex is hard enough and now the banks take some from it? I don’t think so.
For example, when you transfer money via VISA card, it costs you 3 to 5% of the amount you transfer. The best fx companies must have various payment methods that are not only free but also convenient. Moreover, it needs to be fast. I used to have to wait days and weeks to withdraw my profit from a broker, which is really frustrating.
In this field, Exness has no competitor. How can Exness be so fast? Because Exness has an automatic withdrawal system that has zero human intervention. The machines of course make it quickest possible. Moreover, Exness also offers many local payment systems that are very convenient. You can deposit just $1 from your phone and it will take only 30 seconds and there is no fee at all. Yet the most advanced that only Exness can offer is that you can deposit/withdraw even on weekends. This is why most of traders like Exness. Here is my ranking:
In the end, I think this is the most accurate rankings of my 5 best forex brokers:
These five best forex brokers here are just the most suitable brokers for the major of traders. If you are still skeptical, you can open an account at each of them (they require very low minimum deposit). You can trade with them for 1 or 2 months to see if they really suit your trading style. I believe that you won't be disappointed.