Factors to Consider When Choosing a Forex Broker

 Behind every successful forex trader, there is a good and honest forex broker. Many online forex brokers are competing for you to open a forex trading account with them. You'll probably see an excessive amount of online adverts from forex brokers if you visit any financial news website. In this post, we'll look at six factors to keep in mind as you select the best broker for you. We will also give you links to open accounts with our recommended brokers.

What is a Forex Trading Broker?

We must briefly outline the market in which brokers operate in order to comprehend what a broker is and what they perform.

The currency market is decentralized, so unlike, say, the New York Stock Exchange or the London Stock Exchange, there isn't just one exchange through which all transactions pass. The interbank system, a global network where financial institutions transact directly with one another, is the foundation upon which the FX market is based.

Retail traders must use a broker in order to access this network. Brokers provide services like leveraged trading and allow traders to buy and sell currency pairs. Brokers profit from the spread, which is the difference between the buy and sell prices, as well as other charges like commission.

Factors to Consider When choosing a Forex Trading Broker:

1. Regulation

It's crucial to trade with a qualified and authorized broker. At the most fundamental level, it provides traders with reassurance that there are standards in place and that if something goes wrong and the broker is unable to fix the problem on their own, there is a chance to go to a regulator to have the matter fairly resolved.

 A flashy website does not guarantee that a broker is an NFA member or under CFTC regulation. A broker will typically provide its NFA member number in the "About Us" section of its website. In addition, each country outside of the U.S. has its own regulatory body. Due to potential concerns regarding the safety of deposits and the integrity of the broker, accounts should only be opened with brokers that are duly regulated.

2. Customer service

It's possible for things to go wrong with any service, whether it's a platform outage, a price error, an erroneous account statement, or another technological problem. No broker is exempt from this, but as a trader, it's crucial to know that the broker can be reached, that they will be responsible, respond fast to problems and that they will behave fairly. It's also important to verify if the broker provides service in your native language.

3. Account Offered.

Different account options are offered by each forex broker. When evaluating broker features, keep the following factors in mind: leverage and margin; commissions and spread; minimum starting deposits; and ease of deposits and withdrawals.

4. Available Pairs to Trade.

Although there are many different currencies that can be traded, only a select number receive the majority of attention and, as a result, have the most liquidity. The key pairs also include USD/JPY and USD/CHF in addition to the previously mentioned EUR/USD and GBP/USD pairs. A broker may provide a huge range of forex pairs, but what matters most is that they provide the pairings that appeal to you as a trader.

5. Initial Deposit.

Most forex accounts can be opened with as little as a $5 initial investment. Leverage, of course, increases the buying power beyond the minimal deposit, which is one factor making forex trading appealing to novice investors and traders. Standard, mini, and micro accounts are available from many brokers, and the minimum initial deposit requirements vary.

6. Ease of Deposits and Withdrawals.

Each forex broker has unique funding and account withdrawal rules. Account holders may be able to fund their accounts online with a credit card, an ACH payment, PayPal, a wire transfer, a bank check, or a personal or business check, according to the broker. Checks or wire transfers can typically be used for withdrawals. Both services may incur a fee from the broker.

7. Reputation

Sometimes the only way to find out if a broker is the right one is to try them. However, doing a bit of research first certainly helps narrow the field.

Things like checking out reviews, discussions on trading forums, news releases, awards, and publicly listed financial information can very quickly help to build a profile about whether the chosen broker is trusted and worthy of your business.

Based on the above factors here are our Recommended Forex Trading Brokers.

1# Overall Best Broker: Deriv

Deriv is one of the world’s largest online brokers. They offer CFDs and other derivatives on forex, stocks & indices, cryptocurrencies, commodities, and derived to millions of registered users across the globe.

The company has low fees associated with deposits, withdrawals, and transactions initiated on your account. There is also a wide variety of withdrawal and deposit methods available. In addition to providing a user-friendly interface, Deriv also excels in terms of education. A wide range of educational resources is available - making it easier for the user to learn the basics of forex trading.

The minimum deposit with Deriv is just $5, which makes it great for people who want to give forex trading a try without investing a lot of money at first. There are 11 different base currencies supported by the Deriv trading platform, and you get access to a demo account.

Read the Steps to Open a Forex Trading Account with Deriv HERE

#2. Best Forex Trading Broker: Exness.

                                

Exness is another broker that has a positive reputation. The platform is somewhat different from more traditional trading systems. You can easily initiate trades through Exness, but this is generally not the main feature that attracts beginners. The copy trading function of Exness allows you to copy trades initiated by experts who already have proven their skills.

Exness is a good option for those who want to invest a certain amount and turn it into a passive income. By setting up automated trades, you can easily continue to make money while you sleep or when you do not have time to spend on the platform. In addition to forex trading opportunities, Exness also allows you to initiate trades on cryptocurrencies.

Visit and Open your Trading Account HERE

#3. Best Forex Trading Broker: XM

                          

XM Broker can be safely recommended to those who are interested in professional trading with high order processing speed and optimal level of commission. The first thing worth noting is that it has licenses of three leading regulators in the world simultaneously. These are ASIC (Australia), FCS (Belize), and CySEC (Cyprus).

The second moment is the types of accounts. The broker guarantees the same quality of execution for all types of accounts, which means a minimum of requotes, slippage, and instant overlap of orders with counterparty counter transactions. The level of leverage complies with European standards (including the MiFID directive that all CySEC licensees work in accordance with). 

Attractive trading conditions for novice traders are also worth noting. The minimum deposit is 5 US dollars; there is cent (micro) accounts with a lot equal to 1,000 units. Thanks to its elaborated service and high-tech platforms, XM Broker is rightfully one of the best companies.

Visit and open your XM Trading account HERE.

#4. Best Forex Trading Broker: FBS 

  The FBS brokerage company provides traders with several trading accounts to choose from: a free demo account and several types of real accounts with different conditions. This allows its clients to choose the best option based on the trading strategy and financial instrument, as well as individual requirements. The broker provides all traders with negative balance protection.

Considering all this, we can say that the FBS broker is suitable for both novice traders and professionals in foreign exchange trading. It should be noted that the company's support service works around the clock, 7 days a week, and you don't have to wait long for an answer. The broker's website is simple, you can understand it intuitively.

Visit and open your FBS Trading account HERE.