It is important that forex traders, especially the new ones, work with professional forex brokers in order to achieve their financial goals. There are a number of brokers who provide online platforms for trading currencies to retail traders around the world. There are also different types of forex brokers. Therefore, identifying a best professional forex broker to work with could be a challenging task. The aim of this article is to provide some tips on how new as well as experienced forex traders can identify professional forex traders. Further, some information about a few of the professional brokers recommended by us is also included.
Regulated Forex Broker
Generally, regulated forex brokers are those who are serious about their business and professional in their approach. As they are always supervised by an authority that exercises control, they can be relied upon. Countries such as North America, Japan, Australia and Europe enforce the strictest controls. Therefore, it is a good idea to check out whether the forex broker that you are planning to work with is regulated or not.
|Broker||Min Deposit||Spread||Leverage||Regulation||Open Account|
|$100||From 0,2 Pips||1:200||FCA UK (#186171), CySEC (#259/14), CIMA (1442313) and DFSA (F000048)||Visit Broker|
|$1||From 0 Pips||3000:1||CySEC, IFSC||Visit Broker|
|$5||From 0.2 Pips||500:1||FSA (Saint Vincent and the Grenadines), FCA UK (#679306)||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|
|$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|
|$50||Starting 0 Pips||up to 400:1||FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA||Visit Broker|
|$100||Starting 0 Pips||up to 500:1||FCA UK, ASIC Australia, MAS Singapore||Visit Broker|
|$200||From 3 Pips||400:1||NFA, FCA, CySec||Visit Broker|
|$300||floating, from 0 pips||500:1||FCA UK reference number 579202||Visit Broker|
Preferably, it is better to work with ECN or Interbank forex brokers as they offer the lowest spreads or transaction costs and are more reliable and professional. These brokers do not trade against their clients. However, clients will have to invest large amounts of money to open accounts with ECN brokers. Market Makers, the other category of forex brokers, accept all kinds of clients. The spreads offered by them are higher. Forex traders who want to work with Market Makers can choose those that offer No Dealing Desk facility as they don’t requote the orders that you place.
Often, the best and professional forex brokers offer the lowest spreads. The spread is the difference between the bid and ask prices and is generally expressed in terms of pips. Online forex brokers make money from spreads and do not charge any other commission. These brokers offer fixed as well as variable spreads. Traders who want to trade news or be active during periods of low volatility in the currency market can opt for brokers who offer fixed spreads.
The ratio between the amount a client has and the capital that the broker makes available for trading is leverage. For example, a leverage of 100:1 indicates that for each 1$ of client’s capital the broker would lend $100 to carry out trades. High leverage increases the potential to make profits, but at the same time the potential for losing money is also higher. However, clients who have limited capital may require higher leverage so as to make any substantial profits.
Apart from the four key aspects discussed above, some of the other aspects that traders need to consider when looking for professional forex brokers include the following:
- Types of trading accounts offered by forex brokers: Sometimes brokers differentiate between standard and mini accounts. Starting capital for a mini account is low, but the trader will only have limited access to the platform, worse spreads, etc. In the case of standard accounts, deposits can be as high as $1,000.
- Traders must make full use of the demo accounts offered by professional forex brokers to test their trading strategies using virtual money. Demo accounts can help traders understand the problems associated with the trading platform of a broker.
- Traders should always choose a forex trading platform that offers features such as technical analysis tools, real-time forex charts and economic news.
Related Pages of Professional Forex Brokers
- Trusted Forex Brokers List
- Top Brokers to Trade Gold Online
- Top Bitcoin Brokers
- Why use Metatrader 4 Forex Brokers
- Best Online Stock Brokers
- Best Forex Trading Brokers 2019
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