Some dishonest brokers are known to indulge in intimidating behaviors to make profits from their clients. This helps the traders to have a clear view of the market. Others also allow traders to install custom indicators to refine their trading process. Without SSL encryption, critical trader information can easily be stolen and used for malicious purposes. On the other hand, paid positive reviews will have a promotional tone that supports the reviewer through bonuses, commissions, or other monetary gains.
Benefits of Trading with our BO Indicator:
Without a forex broker, it would be hard for the trader to gain access to new markets. Another underlying course for traders to locate competent forex brokers is access to trading. Trading platforms are essential because they provide uniformity on trading access. Both buyers and sellers are virtually linked allowing them to transact businesses with ease.
Funds are safely deposited in running brokerage accounts where traders can easily access them when executing their trades. There are several factors that new and existing traders can use in order to distinguish genuine forex brokers from time wasters or misleading firms.
Depending on the country at which the forex broker is based, there are varying regulatory bodies that the trader will observe to ensure that the broker is accredited to run such kind of business. In the United Kingdom, all brokerage firms are required by the governing bodies to run segregated accounts. Regulation is important because it signifies the financial position of a broker and competence the firm holds into managing client funds.
Regulatory agencies are always on the frontline to ensure that forex brokerage firms are in line with these regulations by conducting regular checks. Regulation is also important in the sense that depending on your residence, there are brokers that you may not be eligible to use for trading. In the US, forex trading attracts strict regulation when compared to other parts of the world.
In the US, brokers are only permitted to provide a maximum leverage of In Europe, traders can receive There are also brokers that are licensed to provide their services on globally.
It would be wise to choose the one that fits your bill well in terms of leverage expectations and legal status as per your residence. Many practitioners in this career path are always prepared to work long hours to satisfy the big list of clientele and thus firms operating forex brokerage services are required to provide the same kind of customer service. Regardless of where a trader is reaching out from, he or she will have unlimited access in terms of talk time, live chat, efficient email response — among other customer based service techniques.
Any forex broker firm that prides with offering good service will be ahead on transparency. Several traders have had a hard time in the past dealing with organizations that had made some necessary features in the platform inaccessible or inactive.
For that reason, if the platform is not designed favoring the end user in terms of ease of use, it will affect the overall user experience hence rendering it unfit for use. In other words, the trading platform could be designed in such a way that it opens trades that would provide minimal profit margins to traders. This means that times when other competitor platforms are providing trades with higher profit margins, the platform would throttle any margin that exceeds a certain number. For this reason, the users need to be extra vigilant when deciding on the best forex broker platform.
The first step towards securing an online platform is through the use of a Secure Sockets Layer encryption, popularly known as the SSL. If you come around a brokerage platform that is not secured with this encryption, then run away from that platform as quick as you can.
Without SSL encryption, critical trader information can easily be stolen and used for malicious purposes. Some Forex brokers go a step further by providing a two-factor authentication process as a requirement for logging in.
This makes your account more difficult to hack by providing an extra layer of security. This is another important item that traders should look at when selecting their forex trading broker. Nearly all brokers provide traders with the opportunity to engage in trading via three platforms: The only notable difference is that several brokers provide their Forex trading service via the MT4 trading platform while a few provide the services via CTrader platforms.
Nonetheless, depending on which platform the broker has chosen to provide its services, there could be some key features unique to the platform. Others also allow traders to install custom indicators to refine their trading process.
You need to assess the trading methods allowed by the broker on the platform. One of the most important features to look at is whether the broker offers guaranteed stop loss execution.
The stop loss and take profit features are used by traders to mitigate trading losses while at the same time capitalizing on every bit of profit taking opportunity. However, when the market experiences high volatility periods, the gaps between quotations could be large with short periods of time thereby leading to huge losses.
The same thing goes for brokers that re-quote prices during high volatility trading sessions. In such cases, it is good to go for brokers that have stated clearly in their terms and conditions that there are no requotes.
This can prevent you from unnecessary losses as well as provide you with profitable opportunities. Another thing that traders should look at in this section is the negative balance protection feature. This feature protects traders from losing finances that are presently not in their trading accounts. Traders should also make sure that the type of broker they choose suits their trading needs. Some brokers are nothing more but market makers, which mean that they do not provide liquidity by linking client trades direct to the main forex trading market the interbank market where banks and corporate traders are involved.
These are the ones that link the clients to the interbank market. Others also offer trading access to the electronic trading network ECN where traders can see the best price offered at the moment as well as the buy and sell orders of other ECN participants. These are the two main market accessibility networks offered by brokers. Unlike conventional forms of investments, FX trading does not require a huge amount of investment, as FX brokers offer massive amounts of margin for traders to open large positions in the market with a relatively smaller trading capital.
Forex market has the distinction of being the only financial market in the world that operates around the clock for five days a week without any specified closing time. It is made possible due to the time difference between the various global financial centers, and the fact that at least one particular financial market remains open at a specific time of the day.
Therefore, traders can find plenty of trading opportunities during different market conditions, which allow them to choose a convenient time to trade according to their specific schedule. Forex trading seems to be an excellent option for investing your money without any major risks, apart from the losses that can be as significant as the gains.
The FX market allows you to choose your preferred financial asset from a wide range of financial instruments, which may also include commodities, shares, indices, and other CFDS, along with the wide array of major and minor currency pairs. You can start trading with small trading capital, trade the markets according to your schedule, and most importantly, you can trade from the convenience of your home or office without setting up any additional trading desks.
Then why is it that Forex trading has earned a moniker for being the riskiest and the most dangerous investment options of all time? After all, Forex trading is a business that is expected to follow all the rules and regulations that apply to all industries that deal directly or indirectly with consumers. Due to the rising number of financial scams and consumer abuses, different Governments from around the world have increased their regulatory oversight by introducing strict regulatory conditions for all financial companies.
Some countries such as the US have also gone to great lengths by changing several trading conditions in order to prevent brokers from exploiting their investors in any manner. In other regions such as Europe and Asia-Pacific, countries have created extensive regulatory frameworks to ensure that Forex brokers operate in a transparent manner and uphold the integrity of the financial markets. Here are some of the top reasons why you should trade with the best Forex brokers for ensuring a safe and secure trading environment:.
Therefore, as a trader, your top priority must be to conserve your funds against financial scams by choosing regulated Forex trading companies. A regulated firm not only secures your trading capital from illegal financial transactions, but most high-quality regulators from the US, EU, and Asia-Pacific have investor compensation funds that provide compensation to its investors if a broker winds up its business.
Some dishonest brokers are known to indulge in intimidating behaviors to make profits from their clients. A good amount of regulation is key to staying safe from all instances of consumer abuse and to enjoy a peaceful and enjoyable trading environment. For instance, spread betting and binary options trading are legal in the UK, while it is considered as an illegal financial product and subsequently banned in the US.
Some Forex brokers deliberately flout the rules by catering to traders without informing them about the legal aspects of a financial product. The best FX brokers that have proper authorizations and regulatory licenses will always ensure the legality of a product before offering it to their customers. These orders are either filled at the broker level through market maker protocols or taken up by the liquidity provider at the interbank prices through ECN or STP protocols.
Most of the established regulators have issued strict guidelines to its brokers to ensure that there is only a minimum amount of conflict of interest with their traders. Therefore, you should only choose reliable partners that are able to offer you the best market access that does not limit your trading freedom.
As a trader, you should have all information related to the trading conditions to prepare yourself for the best outcome in the markets. Hidden costs of trading and questionable margin strategies from the broker can put you out of the markets swiftly, which may be a huge hindrance to your trading strategies. Forex trading began as a relatively unregulated market that allowed several companies to take advantage of unsuspecting traders.
Until quite recently, it was incredibly difficult to find the best FX brokers from the overwhelming majority of companies that offered their services from different parts of the world. The lack of any serious regulatory oversight and the inability of traders to determine the quality of a Forex broker prevented investors from exercising due diligence while choosing a Forex trading company.
The relative lack of information from online media and misinterpretation of the facts by dishonest market elements also paved the way for countless financial scams that resulted in billions of dollars in losses for both small and large investors.
An unprecedented amount of unrealistic expectations from inexperienced traders has also rendered a certain measure of negative reputation for the Forex trading community as a whole. Several Forex brokers lured traders into the untold riches of the market by promising impossible returns from Forex trading through high leverage, only to profit from their losses time and again.
Other brokers simply sought to keep all the money to themselves by not honoring any withdrawal requests made by their clients, which creates tremendous psychological and financial hurdles for millions of Forex traders. Open Account Anyway Review. We compile a ton of Forex broker reviews by considering different parameters that contribute to a fair and reliable trading experience. As professional traders with many years of expertise in the market, we realize that no company is perfect and there can be shortcomings with every Forex broker that we review.
Even some of the best Forex brokers in the market can make terrible mistakes, which are simply considered as part and parcel of the financial markets. Nevertheless, our aim is to provide you a list of the top Forex brokers on the market that is guaranteed to keep your funds safe and offer you a favorable environment to enjoy profitable FX trading.
Here are our considerations while compiling the list of best FX brokers:. Some geographical locations are considered to be far superior to others, which makes sense due to the different regulatory guidelines imposed by various Governments.
Location and regulation go hand in hand with each other, especially when we consider the advantages of trading with a regulated broker that is supervised according to the best standards in regulation. Naturally, the top countries in our preferred list of geographic locations are also home to some of the most feared and respected regulatory organizations in the world, which further reinforces our belief in the effectiveness of these agencies in combating broker scams.
Although tax havens have a negative reputation in the industry, there are several FX brokers from these countries that offer high-quality services without inconveniencing their clients in any way. We believe that everyone should be able to access the market without being discriminated.
Several Forex brokers in the market specifically reserve their services for rich and wealthy investors. Although we do not find anything wrong with companies catering to an exclusive niche of traders, we try to concentrate on brokers that offer services on a global platform, where every classification of trader gets to choose a trading account that is well-suited to his or her trading requirements.
Brokers also categorize their financial products according to different account conditions, and we check all the fine aspects of a trading account before recommending them to traders. The cost of trading varies according to the type of protocol adopted by the broker, the kind of market access, and the trading features. We typically recommend ECN brokers that offer 0 pip spread guarantee along with the lowest commissions for cost-effective trading.
On the downside, a small movement in the opposite direction of a trade can induce a margin call, which is designed to protect both the broker and the trader from a negative balance. Platform performance and its reliability can mean a world of difference between winning and losing in the markets, which is why the top FX brokers always concentrate on providing the best trading interfaces to its clients.
From our extensive experience of dealing with various Forex brokers, we understand that the safety of funds and the speed of transactions are far important than other qualities of FX brokers.
Forex brokers that pay attention towards facilitating fast, smooth and secure payments are always considered to be more reliable than brokers that concentrate their efforts only on improving the FX trading environment. Modern-day consumers are wary of all business that involves financial transactions.
A significant majority of retail traders want the reassurance that they can contact the company representatives at any time of the day or night for any concerns, and they expect their broker to offer friendly and professional support to resolve their problems.
Most top regulators also provide support services to its investors in the form of Financial Ombudsman, arbitration, and the opportunity to be represented by a legal advisor for conflicts that reach the court. It is also safe to assume that the best FX broker in the market will always try to solve its differences with its client, rather than dragging their conflicts into a legal proceeding. Increased competition among brokers means that traders have far different options and are not at any discretion to choose a broker according to their merits alone.
Therefore, several top Forex brokers now offer attractive rewards such as signup bonus, deposit bonuses, loyalty programs, cash rebates, and free promotions to lure traders into their brokerage accounts.
We find and suggest the best broker forex that offers decent rewards and promotions without burdening the trader with impossible trading conditions. Most trusted Forex brokers. As traders, we have invested our money in various brokers over the years, and clearly, understand the benefits of comparing different brokers before finalizing a Forex trading company that can assure us of world-class brokerage services.