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27 Jan 2016
Forex broker comparison
The first particular the answer to your successful trading is to choose a Forex broker. There are several questions that must be answered until you are able to decide responsibly. Brokers' revenue and available information is not going to facilitate this decision. Below you can find information on the basic issues you may encounter when selecting a Forex broker and the way to overcome those issues.

forex broker list
You cannot move forward without a Brokerage, and choosing the right one is essential and highly important. This is why why this topic is probably the most discussed throughout Forex forums.

Before starting trading Forex, you need to build an account with a broker. The broker is actually a mediator, individual or company that buys and sells orders based on the retailer. Brokers profit either from charging a charge for their services, or (which is more often) from the spread. Considering the huge number of brokers offering their services online, it's likely you could feel helpless and overloaded by a lot of information you may do not know what to do with. And it is challenging choose the right broker.

There are millions of brokers, from the solid and reliable ones towards the crooked and dishonest wanting to pluck their clients. You need to take a look on published references and adhere to the advices to protect you against the sophisticated marketing brainwashing. Broker is a necessary mediator between anyone with a market. Its main task is always to fulfill your orders to buy and sell a currency on the Forex market. Services, such as the fast change in money to him and back as well as a reliable platform should be standard of all brokers above the average.

When selecting parameter, it's appropriate to give preference to ones that are related to your style of trading (fees, spreads, etc.), as an alternative to peripheral ones like language support, assistance on the to buy and sell, etc.

Remember one thing - prior to starting your search, it is good to take note of the fact that terms like "best, cheapest, best, etc." make little if any sense in the industry of Fx brokers and usually, the real interest of brokers who use those terms is solely to let you trade currencies as frequently as is possible regardless of whether you earn or lose money.

Criteria for choosing a Forex broker

There are many criteria that are worth considering before you fill in the registration form which has a broker. Competition among Forex brokers is huge, which guarantees a neat potential for a good choice. It pays to accept the time to choose a broker that can best fit your needs and you will be able to use their services for your benefit.

Regulation and References

The first thing you may want to take a look at when selecting a Forex broker could be the issue of security. You need to find out if the selected broker is registered with any regulatory authority. In america, a broker should be registered as Futures Commission Merchant (FCM) with all the Commodity Future Trading Commission (CFTC) and should be a member of the National Futures Association (NFA). The two authorities - the CFTC and also the NFA are on the market so that you can protect the public against fraud, manipulation and illegal trading practices.

On websites of the National Futures Association's you can even examine the registration of an particular company or individual with all the CFTC and the NFA. Focus on that this company you choose has a clean regulatory records and solid financial background. And view out! It is not recommend using services of unregulated companies or individuals in any case.

Common foreign exchange controls include:

 Banning the application of foreign currency within the country
 Banning locals from possessing foreign exchange
 Restricting currency exchange to government-approved exchangers
 Fixed exchange rates
 Restrictions on the amount of currency which might be imported or exported

Forex controls are various forms of controls imposed by the government on the purchase/sale of foreign currencies by residents or about the purchase/sale of local currency by nonresidents. Just like depositing your money in a bank or standard bank, before you deposit having an on-line forex broker, it's important to comprehend which regulatory is going to be looking after your funds. In the usa, the National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC) are given the job of overseeing off-exchange foreign currency exchange broker transactions.

As a result, each forex company that is certainly in any way involved with US traders, or perhaps is located in the US, must be registered and licensed together with the NFA and CFTC. So, an advanced US resident looking to trade forex, you should definitely inquire about a prospective forex broker's regulation in the US before you decide to use their professional services.

Since the NFA/CFTC regulations regarding forex transactions are very stringent, only a minority of currency trading brokers are eligible to simply accept US forex traders.

In Europe, there exist a wide range of regulatory bodies tasked with overseeing forex transactions with on-line foreign exchange brokers depending on the country.

In england, the Financial Services Authority contains the mandate of regulating off-exchange forex exchange trading.

In France, the Autorit de Contrle Prudentiel with the Banque de Franceis responsible for "the licensing of French financial firms and monitoring compliance by entities be subject to its authority."

In Italy, the CONSOB (Commissione Nazionale per le Societ e la Borsa) describes itself because the competent authority for ensuring transparency, disclosure and compliance by securities market participants.

Other financial regulatory bodies exists for Denmark, the Netherlands, Switzerland, and also other European countries.

It's a good idea to snap minutes and question a forex trading brokers regulatory status prior to use their investment services. At night issue of financial regulation and supervision for on-line investors, you'll want to ensure that the trading platforms you have and the financial transfers you initiate when conducting your forex investing with on-line foreign exchange brokers are secure.

The other aspect of account safety is encryption, and the physical safety of your account data against theft. Firms like, and Finexo take great care about these aspects of safety, but additionally, there are many others that assume a proactive attitude to the crucial side of running a brokerage business. To aid our task, technologies like SSL-encryption are standard in the industry nowadays, and if you do not see them implemented, it's depart for better, more serious brokers.

Also, there are several sites on the Internet dealing with Forex and on these websites you will find references to several brokers from around the world. You might find references also here. The reputation among the clients is an important factor when deciding regarding the Forex broker. However, in the event you still want more in-depth reference so you resort to any discussion forum, always ask how the broker behaves in crisis situations, such as:

 Performance of market orders in the important announcement
 Stretching spreads
 Extraordinary market movements
 Communication in poorly filled orders, etc.

Communication with Customer

When searching for a good and reliable Brokerage for your trading, it is recommended find out how - and particularly how quickly and operatively - an agent can communicate with you. Check out all the options. This means that if the broker has the capacity to communicate by telephone, check it out. Test also how fast he responds to an e-mail, determine if he is using Skype or any other types of online communication on the Internet. Check the possibility of helpdesk. Each broker provides a solid chat today, so you should try also this manner of communication. But simultaneously, you should check who you are conversing with when using a helpdesk; if you are talking to someone competent and not to someone who will give you an e-mail to their technical department on every possible issue. And since the currency market is often a market that operates continuously, it's great to find out if the connection along with your broker can be fully guaranteed Round the clock.

Trading Platform

A fundamental part of the brokers' service is an investing platform on which it is possible to serve your account. Many brokers use platform called MetaTrader 4 (MT4), but many others also have their own platforms including graphs and charts. From your perspective of your comfort is important that the platform meets your requirements of control knowning that all functions are user-friendly.

You ought to have all the necessary information sold at every moment:

 List of the open positions
 List of one's closed positions
 Overview in the account usage for margin - in percentage, by way of example
 Statement of account
 Overview in the SWAP or premium fees

Try some different software and find out which suits you best. Confirm the reliability of the program by opening a demo account first. An inappropriate and badly selected program cost you not only time, but in addition money.

Information on what sorts of orders you can use together with your broker is also crucial. If you can open the same currency pair at two opposite positions simultaneously - i.e. one short and something long. Or if you can divide your situation so you can close 50 % of the position leave the second in trade. It appears these things are not important rather than worth the concern, however they are decisive when it comes to your satisfaction and it is important to include them within your decision-making process.

Guaranteed "STOP" and "LIMIT" Orders

Brokers are separated into several basic groups based on how they are dealing with your trades. Either they may be dealing with them of their own system or they are forwarding them to the interbank market in order to other market participants. The first ones are also referred to as "dealing desk" brokers, plus they do not guarantee the mentioned order, so in practice it appears that after you typing the order to sell or buy currency they're going to re-quote prices, or basically they're going to disallow entry for your price, or worse.

Fees, Spreads, Leverage

Sales fees otherwise known as spreads are one of the main sources of brokers income and their goal is obviously to get spread as high as possible. If we look at an example of EUR USD, where the spread is 2 pips and also the current BID costs are 1.2875 and the current ASK price is 1.2877, so you trade at the ASK BID, whilst the broker buys and will cost you a BID ASK. It's logical possesses its reason. Nevertheless, it remains hard work of brokers to offer the spread as high as possible; a lot of competition forces the crooks to narrow spreads. Let take a brief look at the usual spreads for individual currency pairs:

 EUR/USD 1-3 pips [excellent to great condition]
 GBP/USD 3-5 pips [excellent to good condition]
 CHF/USD 3-5 pips [excellent to good condition]
 EUR/JPY 3-5 pips [excellent to great condition]
 JPY/USD 2-4 pips [excellent to good condition]
 CAN/USD 4-6 pips [excellent to good condition]

Whatever is above this range, has to be taken with caution and care.

Leverage and Margin

Leverage is amongst the advantages of trading Forex. Nevertheless it can be a disadvantage for you personally if you understand it incorrectly. Leverage enables you to handle or control a bigger amount of currency. Quite simply, the greater the leverage, the less you need margin. But the leverage needs to be used wisely. Greater leverage could be of assistance, but you must be able to control it. Find out what options of leverage your broker offers. You should have also check the size of rollover fees, should you hold your positions overnight.


Slippage will be the difference between estimated transaction price as well as the actual entry price. You're able to do a test program utilizing your demo account which means you calculate how fast your Brokerage fills in your order when you have pushed the button to get or sell.

Computer and Mobile Equipment

Another element of decision-making is related to the technical aspect and is determined by the OS you have. Most platforms run smoothly on Windows, however if you are using a Mac, it will likely be a good idea to verify the possibility of using Mac with your broker. The same will cover using a mobile phones or smartphones.

Data and Currency Pairs Available

It would be very surprising if any of the brokers focusing on Forex charged data services. Today, forex has become so interesting that it must be standard to have all data, including graphs and charts with different indicators for free. However, you ought to at least verify these records. You should also verify the currency pairs that the broker is able to offer for you. Generally, a broker can still offer you the major currency pairs, but when you're interested in exotic pairs like USD CZK, follow through option before choosing your broker.

Mini Accounts, Micro Accounts, Minimum Deposit to start an Account

What is the minimum deposit for the getting an account is essential information for those with limited capital to open up an account or those that don't want to invest that much into trading currencies. The low limit is somewhere around $250 - $300. This opportunity is related to the use of mini and micro accounts. For mini accounts you might be operating with a standard large amount of 0.1 as well as micro accounts the typical lot is 0.01. In reality, this means that if you trade-in a micro account and open a job in the EUR USD, value of one pip for you is $0.1. The majority of the Forex brokers are trying to adjust to this trend and permit opening a standard micro account with a minimum deposit.


To summarize, it is important to point out that, such as everything that relates to trading, a choice of a broker is your personal decision. Do not leave this selection to anybody else because you will bear the obligation and the consequences of your decision, be it a doozy or a bad one. As well as if you don't feel comfortable with your broker or else you are not satisfied for any other reason, about to catch obliged to remain with him forever - a big change is possible at any time.

If your first selection of an agent isn't entirely appropriate, signing a binding agreement with the broker is not a marriage for life and it's also common for traders emigrate between brokers due to advantageous offer or need. Technically, it's very simple.


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