It is obvious that every tradesman prefers working with the best forex brokers in the market. But the Forex trading is not that easy to understand, and usually, we put so much money and our luck in investments. Therefore, selecting the right brokerage to invest is one of the most important things you need to do carefully before making your gamble.
For novices, they normally go on the internet and search for the greatest brokers. In fact, they will surely find out several intermediaries all around the world, do some transactions and quickly move to other brokers. What is the reason they are doing this? It is because nothing is flawless, and no broker in real life can absolutely serve all your requirements. There are some brokerages are suitable for newcomers not experienced ones, some are fine for short-term investment, not a long-term investment, and some are nice for Asian, not American.
You might be a little confused and some questions might occur
- What standards that the greatest brokers must have?
- Choosing between Dealing Desk or Non-dealing Desk intermediaries?
- What account types to trade? ECN account or Micro account or normal accounts?
- Who is better? The US, UK or Cyprus brokerages?
This review will surface the most important features and benefits of selecting one Forex broker over another, and therefore, aid you to choose the greatest broker that suits you.
But remember, the finest brokerages will vary between each country you are living in. Hence, it is not easy to point out which intermediary is the best. Luckily, there are standards that are the same to judge a broker and are recommended to use while choosing a broker.
Brokers need to be trustful
It is clear that the more reliable a broker has, the more chance it will get customers. In order to make the right decision when selecting an intermediary, we ought to use these features to check if they are trustworthy or not:
- Regulations that they are based on
- The past activities of the broker
- The scale
- The workplaces
- Established time
- Account types they provide
First things first, we have to consider the regulations that a brokerage is following since it is the significant element to define a broker’s trustfulness. There are many reliable financial agencies provide regulations to intermediaries in countries that they are operating whether those brokerages can response their criteria. We can list out some most popular rules such as the IFSC CySEC, FSB, or FCA…
Now you know these regulations, we will continue with broker’s past activities to examine whether they had good reviews or bad reviews due to the lie or anything of the sort. Using these reports, it is easier to know the way an intermediary deal with those accidents and how they tackled the issues can demonstrate their characteristics.
This is the list of top trustworthy Forex intermediaries:
- Exness: 9/10.
- HotForex: 8,5/10.
- FBS: 8/10.
The small trading fee is needed
After that, the second thing you need to focus on is the trading cost that the brokerage offers. It is very important in your business, you don’t want to waste too much money on them. The cost consists of some most vital factors: spread, slippage and swap, commission and minimum deposit rate.
Spread is the first concern, it is defined as the difference between the Ask price and the Bid price, commonly measured in pip. Clearly, the smaller the spread is, the smaller the cost. Basically, all traders want the spread to be as low as possible, that means brokers should give out the lowest spread as possible. We can call them wide spread or tight spread depended on the cost. For instance, we consider 10 pips is a large spread, in the meantime, the spread of 0.2 pips, we call it small spread. Of course, intermediaries have the right to change their spread since it is one of the most crucial gains of them. We have two types of brokerages nowadays, they are the dealing desk and the non-dealing desk. For type one, the main profit is from the spread.
Now, we continue with the second type of brokers. They give out the accurate quotes that liquidity givers grant them. Normally, the spread of these brokers is almost zero. It is why they must charge traders with the commission. Just like spread, the commission also differs from each intermediary, and you should choose the lowest commission brokerage in order to gain more profit.
Finally, we will see how the swaps affect the overall dealing cost in the Forex market. It is defined as the discrepancy among the value we want from a trade and the value we gain from the real trade. It occurs usually when there is an unstable situation to the market or when the daily news happen. It is managed by the brokerages, hence, if you are looking for a brokerage, be careful with the swaps.
This is the 3 brokers with the smallest trading fee:
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Trading conditions must be considered
Leverage is usually used as a trading tactic of the use of the fund you lend to take more income that you might get after a successful trade. Normally, it is the device of an intermediary that is preferred by a tradesman. In reality, the leverage is always high because the account’s leverage is finer if it is higher. Bear in mind that you can’t use leverage to measure your success. It is no more than an instrument to rise your gain.
Now, brokerages with the highest leverage:
- Exness: No limitation
- HotForex: 1:1000
- FBS: 1:1000
They need to have the greatest support team
Every single customer demands a lot of support from brokers since forex is like any other field, very complex. Traders could get into any difficulty when trading. Hence, a great broker is the one who is willing to resolve the problem of their clients at any time possible. To call themselves the finest brokers, they must have an assistance team that works at any time the clients need. Plus, it is better to have nearby departments in countries so as to aid traders in a more effective way, not just through a phone call or answer emails. In addition, cooperating with regional banks in some nations will be a good idea to make the transfer process faster and the withdraw cost lower. At last, there would be some buyers who don’t know much English. It is needed that the broker is able to help their clients in various languages. You can click here for the best brokers in Thailand: โบรกเกอร์ forex ที่ดีที่สุด.
The easiest way to aid clients that all brokerages are using is using real chat. You only have to go to their site and you could contact them right at your home. Plus, some big intermediaries provide phone call assistance. It is not so hard to find the number on their website and take advantage. A nice brokerage needs to have all of those services.