How to Choose Trusted Forex Brokers in 2020

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The foreign exchange market or simply forex is the world’s largest capital market, with an average daily trading volume of more than $5 trillion. It involves trading of currencies whereby the participants make profit by taking advantage of the ever-fluctuating value of world currencies. However, as one might expect with such a large and volatile market, the potential to make lots of money comes along with the risk of making devastating losses if you don’t carefully apply the right money management techniques.

Whether you’re a beginner or an expert forex trader, you need the support of a competent and trustworthy broker in order to succeed in forex trading. A broker acts like a middleman that connects you to the forex market by providing you with a platform where you can buy and sell currencies. In other words, your broker is like your business partner, which make them a vital part of your trading career. As such, it’s imperative that before opening an FX trading account, you carefully evaluate and select the best brokerage company in order to maximize your returns over the long term.

Choosing a Trusted Forex Broker in 2020

Most Trusted Forex Brokers 2020

If you’re serious about starting forex trading business in 2020, here are a few factors to help you find the right broker for you.

1. Fund Safety and Regulatory Compliance

It’s no secret that forex is a lucrative business. This explains the rising number of forex brokers being established to get a slice of the pie. While this may be a good thing for forex traders as it widens their option, it also increases the risk of losing their money to fraudsters. There have been many cases of traders losing their hard-earned money to scammers calling themselves brokers. This makes it quite necessary to diligently screen any online forex broker before opening an account with them. Check to ensure the broker is regulated and licensed by an official regulatory body with high standards. Most developed countries have their regulatory agencies whose mandate is to license, control and oversee forex brokers to ensure they comply with the stringent guidelines and standards put in place. Regulation also ensures that brokers are financially stable, have segregated accounts for their clients, and charge them reasonable commissions. All regulated forex brokers are required to include licensing information on their websites to make it easy for their clients to recognize them.

List of 10 Regulated Forex Brokers

BrokerInfoBonusOpen Account
new logo FBS Markets inc Min Deposit: $1
Spread: From 0 Pips
Leverage: 3000:1
Regulation: CySEC, IFSC
$100 No-Deposit Bonus, 100% Deposit BonusVisit Broker
OCTAFX forex broker Min Deposit: $5
Spread: From 0.2 Pips
Leverage: 500:1
Regulation: FSA (Saint Vincent and the Grenadines), CySEC
50% Deposit Bonus, Real contest 1st prize Luxury car BMW X5 M, Copy trading, Trade&Win.Visit Broker
xm best forex broker Min Deposit: $5
Spread: From 0 Pips
Leverage: 500:1
Regulation: ASIC, CySEC, FCA (UK), IFSC Belize
“50% +20% deposit bonus up to $5,000, Loyalty Program BonusVisit Broker
exness forex broker review Min Deposit: $1
Spread: From 0 Pips
Leverage: 2000:1
Regulation: FCA UK, CySEC, FSP, BaFin, CRFIN
35% of the account DepositVisit Broker
Forex.com Gain Capital review USA Min Deposit: $50
Spread: Starting 0 Pips
Leverage: up to 400:1
Regulation: FCA UK, NFA, CFTC, ASIC, IIROC, FSA, CIMA
Visit Broker
No Deposit Bonus Instaforex Broker Min Deposit: $1
Spread: Fixed Spread From 3 Pips
Leverage: Up to 1:1000
Regulation: CBR, CySEC and FFMS
30% Forex Deposit bonusVisit Broker
Pepperstone review best forex broker in Australia Min Deposit: $200
Spread: Starting 0 Pips
Leverage: 500:1
Regulation: ASIC Australia, FCA UK
Visit Broker
iq option best binary options brokers Min Deposit: $10
Spread:
Leverage:
Regulation: CySEC
-Visit Broker
etoro best forex broker USA Min Deposit: $200
Spread: From 3 Pips
Leverage: 400:1
Regulation: NFA, FCA, CySec
Visit Broker
City Index forex broker Min Deposit: $100
Spread: Starting 0 Pips
Leverage: up to 500:1
Regulation: FCA UK, ASIC Australia, MAS Singapore
Visit Broker

2. Data Security

The second consideration for choosing a trusted forex broker 2020 is data security. Opening a forex trading account requires you to submit a large amount of financial and personal information, including copies of identification card or passport, bank account information, and sometimes a utility bill to prove your address.

If a broker has weak Internet security, hackers could access your account, steal your confidential information, and subject you to identity theft. They could also make away with your funds and impede your trading. As such, you need to thoroughly review a broker’s internet security measures to ensure your personal information is safe.

You’ll also want to ensure that your broker has partnered with a reputable Internet security agency and uses advanced and secure encryption, such as SSL ( Secure Sockets Layer), to prevent third parties from accessing your personal information. Another security feature used by some brokers to protect your data is two-factor authentication, which requires you to input your username, password and a one-time authentication code to access your account.

3. Trading Platform

The third primary consideration when choosing a forex broker is the forex platforms they offer. This is the gateway to the market. A trading platform connects you to the market by allowing you to open and close a trade. As such, you need to choose a broker with an intuitive and easy to use platform. The software should be able to execute deals fast and efficiently enough to allow you to react quickly to market changes.

While some FX brokers use their own custom software, many of them use the most popular online forex platform which has become the industry standard: MT4 or MetaTrader 4.

Some of the reasons why the MT4 trading platform has become so popular is its extreme flexibility in programmability as well as its ease of customization. This platform also comes with a wide range of backtesting and charting tools and allows users to execute their trades in real-time.

Another beneficial feature of the MT4 trading platform is that it allows you to fully or partially automated your trading by programming expert advisors. These are programs that can be integrated in your trading account to determine trading opportunities, place orders and even execute transactions. You can use MT4 platform on your Windows computer or mobile device.

Most people today want the convenience of trading using their mobile phones. The good news is most platforms today, including the MT4, are compatible with mobile operating systems such as android and iOS. This allows you to trade forex anytime and anywhere with your mobile.

4. Customer support

Another essential factor to check with a forex broker is their customer support. Does your potential broker offer prompt and reliable customer support? Do they offer several channels of contact them, such as email, live chat, and the telephone? Are they available 24/7, as forex market works 24 hours a day? Do they offer multilingual customer service? Your answer to all the above questions should be ‘yes’.

Forex trading comes with a lot of challenges which do not only involve the trading platform but also your trading experience. Some of the issues you could experience include difficulty funding your account, difficulty placing orders and executing them, or difficulties in withdrawing your money. When such issues happen, it’s vitally important to have someone you can contact to solve your issues.

Brokers also give customer support by providing a FAQ page on their platform, that will provide their clients with answers for the basic questions they may have.

If you can’t find the solution to your problem on this page, then you should be able to contact your broker via telephone, live chat or email to get a quick solution.

5. Trading Costs

Forex brokers usually make money through commissions and spreads. Before committing to a certain broker, you should find out how much you’ll be charged for your trading. Beware of brokers that claim they do not charge commissions but instead have wider spreads – this is just a gimmick to lure you into their trap. Also notes the most reputable broker may have high spreads but offer excellent platforms and customer support while some may charge low commission but offer poor service. Another thing to consider is whether the broker offers variable or fixed spreads. Each of the types has its pros and cons, so weigh them to ensure you pick the right brokerage company that helps you meet your trading goals.

The Final Word

Trading the forex market can be both a challenging and rewarding experience. To maximize your returns and minimize your challenges, choose a reliable and trustworthy broker that will help you meet your trading goals. Hopefully, the above factors will help you find the right broker for you.

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