If you are reading this article probably you are new to forex and you are in search of your first or second forex broker because you are disappointed with the first. There are a lot of websites showing different tables with digits that probably mean nothing to you. They are just data that shows hypothetical parameters in perfect conditions.
Unfortunately, the fx market is far from that perfect condition. A large amount of your trades will be opened, closed in large market movements which happen during the news. In such moments broker parameters are far beyond all that parameters shown in the tables. This parameter can't show you how will be your overall experience with support, or with the finance team. For example, your broker can have an awesome trading environment, but to be not regulated and dangerous. To help you with your choice we tried to make one complete review of the most popular Forex brokers in the industry.
Do you expect a strong dollar and a weak euro or do you know how the pound will be affected by Brexit? Then the Forex market is for you. You can trade all major currencies such as EUR/USD, GBP/USD, USD/JPY and also all the minors and crosses around the globe.
If you want to trade in the Forex market, you need to use a broker. The right choice can significantly increase your performance by minimizing transaction fees. There are also factors such as execution speed, platform type, and options.
Sometimes even the best broker is not suitable for a certain style of trading, so you will have to look for a broker knowing what you need. So when our team is looking for a broker, we take in mind several trader profiles - from the casual trade to an algo trader.
The transaction fees affect every trade, they stack up and after hundreds of trades, they make a huge difference:
Again the trading style is very important. If you make one buy&hold trade - spread, commissions, and slippage will not affect your trading and only swap matters.
But if you are an intraday trader and open and close many trades, then it the opposite - the swap is not important and the spread, commission, and slippage play a major role.
The trading platform is what connects you to your online broker. Every platform can offer different features, different views, indicators, charts, instruments for automation trading, alerts and so on.
Let's not forget that nowadays we have different Operation System, different devices who can do different things. The best thing is when a broker is offering several trading platforms so you can use the trading system that fulfills your needs the most.
But even if you need a specific sophisticated desktop platform you may need a simple mobile platform which you can use just to check things from your phone.
The bad choice of your broker could rollover your profitable strategy into losing one. You should choose the broker with relatively low costs – spreads, swaps, commission if there are any.
Also, the platform has to be good enough to allow you to place orders fast, support different orders and a rich amount of different trading instruments. If you are a fan of algorithmic trading, find a broker that supports such type of trading and has a good possibility for back-testing to develop a profitable system. If you are a manual trader and follow technical analysis, it is better if the platform supports a variety of indicators. For the trades that use fundamental analysis, the broker needs to have a big amount of data. Fast news announcement also is very important.
Depending on if the leverage is important for your strategy, check this too. According to the latest regulation in the European Union, there is an applied cap for the leverage for retail traders. There is a similar restriction in United States and Japan. If you search for higher leverage you should search between Australian brokers or some of the offshore brokers.
In the last place, but maybe one of the most important points when you choose a Forex broker is the regulation of it. The regulation protects you in case you do not agree with your broker for execution or any other problem you could complain to the regulator and it is important the strength of the regulation jurisdiction.