Are you looking for a forex broker list and reviews? If you want to earn from forex trading, you need an online broker. As a forex trader, you may have specific needs related to broker regulation, account types, features, trading platform, etc. Understanding your investment goal and styles would help you select the best broker.
Each year, we gather and list here all forex brokers with brand information. Here are our findings for 2021.
So, you can guess there are over thousands of brokers in the FX market, and it is really difficult to select one for beginners. Here are some key points that will help you to choose the one.
Types of Broker
The first step of choosing a broker. There are mainly two types of the broker:
- Dealing Desk Broker
- Non-Dealing Desk Broker
A dealing desk broker is basically a market maker. They make money from the spread and provides liquidity to their clients.
The Non-Dealing Desk broker allows their clients to trade directly with the interbank rates. It can be further divided into two categories:
- Straight Through Processing (STP) and
- Electronic Communication Networks (ECN)
STP stands for Straight Through Processing. An STP broker provides directly to liquidity providers for execution. There is no conflict of interest of an STP broker.
STP stands for electronic communications networks. An ECN broker provides direct access to other participants in equity and currency markets. The participants could be hedge funds, retail traders, banks, and even other brokers.
Why Company Regulation and Authority is important?
Regulation is the most crucial factor in choosing a forex broker. It helps to understand their legality and service.
There are many regulatory provides regulations. The most common and powerful authorities are:
Australia: Australian Securities and Investment Commission (ASIC)
Belize: International Financial Services Commission (IFSC)
British Virgin Islands: BVI Financial Services Commission (FSC of BVI)
Cyprus: Cyprus Securities and Exchange Commission (CySEC)
Germany: Federal Financial Supervisory Authority (BaFin)
Seychelles: Seychelles Financial Services Authority (FSA Seychelles)
St. Vincent and the Grenadines: The Financial Services Authority
United Kingdom: UK Financial Services Authority (FSA UK), The Financial Conduct Authority (FCA)
United States: Commodities and Futures Trading Commission (CFTC), Financial Industry Regulatory Authority (FINRA), National Futures Association (NFA), US Securities and Exchanges Commission (U.S. SEC), Chicago Board of Trade (CBOT), Securities Investor Protection Corporation (SIPC)
Trading Account features
The account comes with the trading platform. The most common trading platforms are MT4 and MT5. Most of the time, all accounts don’t offer both platforms.
Also, the account needs to different for both experienced and novice traders.
Each broker has different account offerings. Here are some common things to consider when choosing a broker: minimum deposit, margin, commission, leverage, spread, deposit and withdrawal method, and terms.
Trading Currency pairs
The quotation of two different currencies is known as a currency pair. There are over 140 currency pairs in the market to trade. In the FX market, the currency pairs are divided into major, cross, and exotic pairs.
A broker may offer a vast selection of pairs, including all types of pairs, but the most important factor is that they might interest you as a trader.
Deposit and Withdrawal Options
It is always good to have a varied choice of a wide range of payment options. When you are looking to select a forex broker, make sure the broker has good options that easier for you. The most common payment methods traders enjoy bank transfers, master cards, debit cards or credit cards, and online banking.
A lot of brokers support e-wallet such as Skrill, Netteller, PayPal, WebMoney, etc. Also, important to check the transfer fee and processing timeframes. We suggest going for a company that offers negative balance protection.
The payment options in this industry are country-specific to provide the best services for different jurisdictions.
Education is Important Factor
Educational tools, resources, and materials are important for learning, helping traders select a good broker. Many companies share lucrative education for their clients.
Learn the basic things is essential for every trader and a proper understanding of trading terminology is important to be a successful trader.
Forex Bonus, Promotions and Contests
Sometimes bonuses and promotions are a key factor in choosing a broker. These days, brokers offer simple terms and conditions and have attractive bonuses to provide free trading opportunities, funds boosting offers, contests, etc.
Usually, all brokers designed promotions for all traders' levels with consideration of investment funds, skill & knowledge of trading, frequency of trading, jurisdictions availability, etc. Many companies are offering amazing bonuses, such as RoboForex and XM.
Quality Client support
Not only client support, the quality of client support is important. Many brokers don’t offer phone or live chat support; they have too many FAQ answers that are filtering and getting specific problem solutions sometimes tricky.
The good company offers 24/5 and 24/7 client support. Many brokers offer multiple languages, multiple office support, and country specific phone support.
The ideal broker has good information on their website to cover common issues. The information needs to be appropriately explained to solve a problem by a trader at once.
Though the FAQ section provides direct solutions to problems, it helps to get ideas and basic supports. Besides, the FAQ section needs a professional team to assist its clients at any time is a critical problem.
Compunction via the various channels is a plus point such as phone, email, skype, social, WhatsApp, live chat, website contact form, etc.
We suggest checking the trader's support at the early stages. In this case, the demo account helps a lot.