The best forex brokers for large accounts are not easy to find. In order to trade forex or any other financial market, you have to use a broker. There is simply no way around it. Many retail brokers allow those with small amounts of money to open small accounts or micro accounts. There is no shortage of market makers who offer such retail trading terms. But when it comes to choosing the best forex brokers for large account, it is another proposition entirely. What makes it even scarier is how easy it is for the brokers who have all the presentations of being the brokers for large accounts to get exposed by some market events.
For instance, one of the brokerages that went insolvent following the SNB-fuelled events of January 15, 2015 actually had accounts types which served those who could afford to deposit more than $100,000 into a trading account. Not many can stand the shock of having to wait for administration and liquidation to get back such huge sums of money. So choosing the best forex broker for large account is not something to be taken lightly. We need to identify the characteristics of the trusted forex brokers for large accounts and look at the parameters that traders with large amounts of capital can use in picking the best.
Recommended Forex Brokers of 2020
|Broker||Min Deposit||Spread||Leverage||Regulation||Open Account|
|$5||From 0.2 Pips||500:1||FSA (Saint Vincent and the Grenadines), CySEC||Visit Broker|
|$1||From 0 Pips||3000:1||CySEC, IFSC||Visit Broker|
|$5||From 0 Pips||500:1||ASIC, CySEC, FCA (UK), IFSC Belize||Visit Broker|
|$1||From 0 Pips||2000:1||FCA UK, CySEC, FSP, BaFin, CRFIN||Visit Broker|
|$50||Starting 0 Pips||up to 400:1||FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA||Visit Broker|
|$1||Fixed Spread From 3 Pips||Up to 1:1000||CBR, CySEC and FFMS||Visit Broker|
|$200||Starting 0 Pips||500:1||ASIC Australia, FCA UK||Visit Broker|
|$200||From 3 Pips||400:1||NFA, FCA, CySec||Visit Broker|
|$100||Starting 0 Pips||up to 500:1||FCA UK, ASIC Australia, MAS Singapore||Visit Broker|
Parameters for Choosing the Best Forex Brokers for Large Accounts
It is important to understand that not many traders who trade on their own have access to a large amount of money that is considered disposable enough to trade with. So if you are such a trader, understand your status: you are qualified to play in the big leagues. Big league traders have advantages that other smaller traders do not have. You can get access to the best platforms, the best tools and the best services. Brokers will also be willing to give you plenty of add-ons and benefits. So you need to maximize this opportunity fully so you get full value for money.
1) Account Type
The best forex brokers for large accounts must have separate account types and trading conditions for this purpose. Usually, forex brokers in this category set aside benefits and bonuses for traders with large capital that other traders do not get. So why settle for less when your money can give you more?
If there was any other time forex traders had to be very careful about regulation, it is when they have to open large accounts. The best forex broker for large account must be regulated. You simply cannot commit hundreds of thousands of dollars to an unregulated bucket shop of a broker. It is just too risky. Regulation mandates forex brokers to maintain certain standards set out by regulators to provide transparency and safety of funds. If a forex broker claims that they are regulated, do not take their word for it. You must identify the headquarters of the broker claiming to be one of the Trusted forex brokers for large accounts, then find out the regulator for the country where the broker’s HQ is domiciled. Next, go to the regulator’s website or put a call across to their regulatory department and find out directly if the broker in question is either regulated or in good standing. It does not stop there. You should also try to scour the internet for forums where traders who have used that broker before have given an account of their experiences. You will be surprised how little details that could save you hundreds of thousands of dollars or pounds will emerge from such due diligence checks.
Related : Regulated Forex Brokers
3) Platform Type
Trading conditions under forex brokers that work as market makers are not great for large account holders. The conditions are badly skewed against traders and plunging such huge funds into market maker platforms is an invitation to potential disaster. The platforms that suit holders of large accounts are direct market access (DMA) platforms, which provide direct interbank trading. What this means in plain language is that holders of large forex accounts can deal directly with the big banks and liquidity providers using ECN platforms. There is transparency and there are no funny price manipulations or requotes.
Alpari UK was regulated, offered an ECN/DMA platform for its large accountholders, and had a separate account type for traders with large accounts. So from all accounts, it was one of the best forex brokers for large accounts. But the company’s solvency was called to question when it was challenged with negative positions of its clients’ accounts during a massive slippage in mid-January 2015. This event exposed one major flaw: the company was not as capitalized as most people thought. Alpari UK was not the only brokerage challenged by the events of that week in January 2015, but the difference between it and other brokers that survived the SNB’s tsunami was that other firms were well capitalized and had better internal risk management controls.
Therefore, in addition to all that has been stated above, traders must be able to extend their due diligence checks to ascertain the financial state of the forex broker they want to open a large account with as well as what their risk mitigation strategies are.
5) Account Segregation
Earlier in this article, a mention was made about some of the benefits that the best forex brokers for large accounts offer their clients. One of these benefits is the ability of traders to withdraw their money directly from a segregated account as if they were doing this on a checking account. This feature is not always available on the platforms of the best forex brokers with large accounts, but this is an added advantage if your broker offers this.
One question some traders may ask is this: what if I started small and ended up with a large account? A particular trader in Africa grew his account from $3,000 to $75,000 in one year trading with a market maker. Not a small feat considering the conditions offered him. If you belong to the category of traders who are able to grow their money, you need to transit from a market maker to any of the best forex brokers for large accounts. This is the only way to guarantee that your funds do not outgrow the ability of your market maker to pay you as at when due.