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Top Regulated Forex Brokers
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Top Regulated Forex Brokers
Your first step in seeking the best Forex brokers is to restrict your shortlist to include only the brokers you feel comfortable trusting as a custodian of your money. Ideally, you should only be looking at regulated Forex brokers, and it is advisable to consider the stronger financial centers such as brokers regulated in the U.S.A.., brokers regulated in Cyprus or brokers regulated in the U.K . Consider also whether you would be in a stronger position choosing a Forex broker regulated in the same country in which you live.To get more news about best forex brokers in the world, you can visit wikifx.com official website.
Your second priority should be determining whether a broker gives value for money to its customers in return for the services it provides.Below is a list of the factors worth using to assess any Forex broker.
Broker Regulation & Reputation - A quick google search can determine if a broker has ever been fined by their regulator for a breach of rules, and which rules were breached. Are they a public company? Does their financial position look healthy? Have they been in business a long time?
Minimum Deposit – Most brokers require minimum deposits to open a real money account, usually at affordable amounts. Some brokers ask for higher minimum deposits for their accounts with the best trading conditions. Typically, the more you can deposit up to $10,000, the better the trading conditions (including fees) you will be able to access.
Fees - The most important fees charged by brokers are spreads and commissions applied to every trade you make, but there are other, more hidden fees as well, such as swaps (overnight financing) inactivity fees, and withdrawal fees.
Trading Conditions - A good Forex broker should offer consistently good liquidity and smooth execution without requotes or slippage, which are the mainstays of smooth trading conditions.
Choice of Markets - Will you be able to trade everything you want? If you are only interested in the major Forex currency pairs, that will be easy, but if you really want to trade individual stocks and shares, or the less common commodity offerings, you will find that not all brokers offer them, although most offer some of them wrapped as CFDs.
Does the Broker Suit My Trading Style? - Some brokers offer better conditions for longer-term traders than short-term traders, or vice versa. This is because short-term traders will pay nearly all their trading costs in spreads, while longer-term traders will likely pay more in overnight financing fees (also known as swaps).
Suitable Account Types – Traders with smaller deposits may want a micro account, where position sizes as low as 0.01 lots (1 micro-lot) can be traded.
Ease of Deposits and Withdrawals - A broker that will not speedily send you funds which you have requested and are in your account, raises a big red flag, and is to be avoided at all costs.
Execution Method - Forex brokers typically advertise themselves as one of the following:ECN brokers, STP brokers, or market-makers. Some brokers claim they are a hybrid of two of these. Some traders are very keen to deposit with ECN brokers because they think the cost of trading will be less or that this model makes the broker more honest somehow. The truth is more complicated: each execution method has both potential advantages and disadvantages.
Choice of Trading Platforms - The best Forex trading platforms are widely held to be MetaTrader 4 and cTrader, although many brokers have their own unique proprietary platforms that are arguably as good. MetaTrader 5 is usually seen as acceptable and eay to use too.
Demo Account – Almost all brokers offer one, and any broker which does not should be questioned.
Maximum Leverage – If you want higher leverage than 30:1 on Forex currency pairs, you will need to find a broker regulated somewhere that allows a higher maximum leverage.
Order execution types - There are two especially worth checking which can be especially useful for some trading styles: trailing stop, and OCO (“one order cancels the other”).