Finding a great broker is important when trading forex to increase your odds of winning and making an ongoing profit. Each broker has positives and negatives and you will need to be clear on what you are looking for before you start the task of sorting through the myriad of brokers all competing for your money. Below are latest tips for choosing best European Forex Brokers and Trading Platforms
Step 1: First establish what it is that you want from a broker. You should write down all of the things you are looking for and then consider looking at many different brokers before selecting no more than 5, and then break that down to 3, and then to 1.
Step 2: Next check their reputation on the Google or some other way to ensure they are a reputable dealer. Also, see if they are registered with a regulating body in European generally could be either CySEC -Cyprus, FCA -the UK, the BaFin for Germany, the CONSOB of Italy, CNMV of Spain, or the AMF of France. These regulatory bodies give you security and peace of mind when trading with that particular broker.
Top Forex Brokers Europe Regulated By FCA U.K.
Min Deposit: $100
Spread: From 0,2 Pips
Regulation: FCA UK (#186171), CySEC (#259/14)
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Min Deposit: $5
Spread: From 0.2 Pips
Regulation: FSA (Saint Vincent and the Grenadines), FCA UK (#679306)
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Min Deposit: $5
Spread: From 0 Pips
Regulation: ASIC, CySEC, FCA (UK), IFSC Belize
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Min Deposit: $1
Spread: From 0 Pips
Regulation: FCA UK, CySEC, FSP, BaFin, CRFIN
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Min Deposit: $1
Spread: Fixed Spread From 3 Pips
Leverage: Up to 1:1000
Regulation: CBR, CySEC and FFMS
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Min Deposit: $200
Spread: Starting 0 Pips
Regulation: ASIC Australia, FCA UK
Min Deposit: $300
Spread: floating, from 0 pips
Regulation: FCA UK reference number 579202
Min Deposit: $250
Spread: as low as 0.1 pips
Leverage: up to 400:1
Regulation: ASIC Australia and FCA UK
Min Deposit: €100
Spread: The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD)
Regulation: ASIC, CySEC, FCA (UK)
Min Deposit: $25
Spread: Starting 0 Pip
Regulation: FCA UK and FSA (Seychelles)
Step 3: Once you have your list broken down, look at what type of trading platform the broker offers, MT4, MT5, cTrader, Trade Station. The platform should be able to cover all the type of orders your strategy needs to place to be profitable.
Step 4: Money deposits and withdrawals is the next thing to check. Most brokers will allow you to wire or direct credit their parent account when funding a live account. Brokers are now also allowing credit card deposits and withdrawals which speeds up access to your money and the downtime waiting for your money to register in your account. Normally you should expect your money to appear within three working days and if your broker is slower consider changing.
Step 5: Spreads are the difference between the Bid and Ask or Sell and Buy prices and the smaller the spread is, the better it is for your trading account. When selecting a broker with better spreads look to the Major currency pairs as a gauge to whether they will pass. If the broker has spread on the Majors no more than 5 pips then that is acceptable. However, you can get spreads on the Majors as low as 1 pip.
Step 6: So we are happy so far but now comes the trading execution issue. It is imperative that when you press go, click the mouse to enter the trade that the platform immediately executes your order. It may seem fickle, but when trading a large account, an instant trade execution can mean a lot of gained or lost profit within milliseconds.
Step 7: No order rejection, that’s right your broker may or may not reject orders normally when the market volume rises, and the price range becomes more volatile. If you are getting order rejection you can lose a substantial amount of pips in the trade you are trying to execute. The best solution is to find a broker that doesn’t allow order rejection, if not then have many brokers and place the orders across different brokers simultaneously.
Step 8: Slippage is a definite no, no. If you find your orders are not being filled at a price, you have selected in your orders when you broker is using slippage. This normally occurs during times of market volatility, but this will also mean you lose pips in the trade. Your chosen broker shouldn’t allow slippage as it is counterproductive to you trading successfully.
Step 9: Margin. What amount of money does the broker require to be in your account to maintain an open position when trading Forex. This is kind of like a deposit which covers any current trade you may have entered. All brokers will initiate a margin call if your current account balance can no longer guarantee the open trade. When this happens your trade is closed out, and you lose the amount of money that the trade was in deficit by at closing.
Step 10: Last but not least check the leverage of your broker. Most brokers will offer leverage of at least 100:1 which equates to you trading one whole lot for every $1000 you have in your account. Some brokers will offer you up to 500:1 and you should avoid this kind of leverage as it would allow the beginner to risk far too much and this normally leads to account annihilation.
So that is the 10 steps:
- What are you looking for?
- The Brokers Reputation, Are they registered brokers?
- The brokers trading platform
- Setting up a real money account
- Broker Spreads
- Broker Order Execution
- Broker Order Rejection
- Broker Slippage
- Broker Margin
- Broker Leverage
Features Of Ideal European Forex Trading Platform
If you are new to online forex trading, opting for an online forex trading platform with an easy to understand user interface will help in your learning curve tremendously. In many good platforms, you will get charting software that would help you to analyze and time your trades properly. Some platforms offer a whole suite of features that might clutter the screen and confuse the newbie forex trader.
Regular Market Updates
Choosing a good online forex trading platform will also help you to keep a tab on various market trends and economic news. Since all current market updates will be available to you, you will no longer need to look to outside sources to gather the required information.
Forex Demo Account
It will take some time to get accustomed to the operations of your online forex trading platform. It would be wiser to open a forex demo account before you start using the real thing. A great feature is the ability to customize the setting of your forex demo account to be as realistic so that you will not face too many surprises when you start trading live.