Best Forex Broker
If you would like to get started with Forex trading in 2016 and are keen to find out who are the best Forex brokers, then the good news is you’ve stumbled upon the right article.
The Forex trading market is highly competitive industry and many online brokers are constantly competing to offer the best spreads and sign-up bonuses to encourage Forex traders to join. As a new trader, or a trader looking to move to a new broker, you will quickly find yourself inundated with a seemingly endless selection of Forex brokers to choose from.
To help remove any confusion and allow you to quickly find the best Forex broker for 2016, we have identified the most popular broker for our visitors as:
Why people choose ETX Capital
- Tight spreads
- *No deposit/withdrawal fees (except for withdrawals under £100)
- Offers various platforms including MT4 and ETX TraderPro
- Regulated by the Financial Conduct Authority
- Offers Forex, CFDs, Binary, Spread Betting, Equities, Commodities and Indices
- Wide range of instruments to trade
If you are still not sure on how to choose the best broker for you, we cover in-depth, the 12 factors that you should consider before choosing a broker.
The 12 Factors to Consider When Choosing the Best Forex Broker For You
The Forex Market is the largest market in the world in terms of volume with over 4 trillion dollars exchanged daily. With the popularity of currency trading their is a plethora of online platforms, a large number of sites which now offer this service. However, not all are equal and there are some which will provide the user with more amenities than others. So, it is wise to have a look at a handful of the most important metrics to consider when choosing an online Forex broker.
Choosing the right forex trading platform can be a difficult choice with a such a large number of brokers and different trading platforms to choose from we have taken into account the most important factors to consider when deciding on the best forex account for you.
It is first important to mention that the site in question needs to offer adequate levels of security. This will generally be classified by the term SSL encryption. SSL is an acronym for Secure Sockets Layer. All technical jargon aside, this is the same encryption software which banks and other financial institutions employ. If this is not clearly seen (normally at the bottom of the homepage), it is best to avoid the site.
2. Customer Support
Of course, this is another general concern which should be addressed. The best sites will offer numerous avenues of support including telephone, email and live chat. This is critical if the user has any questions or there appears to be a discrepancy in the services offered. As with the security features mentioned previously, shoddy or insufficient customer support is the hallmark of a less-than-trustworthy platform.
3. Regulatory Bodies
Before we even consider featuring a broker in our list we make sure to check they are regulated, however their regulatory status can always change so it is always pays to check their current regulatory status.The online Forex broker needs to be registered with the proper regulatory body. This will naturally differ from location to location. For example, sites within the United States are governed by the National Futures Association (NFA) while also registered with the U.S Commodity Futures Trading Commission (CFTC). In the United Kingdom, the platform must offer evidence that it is approved by the Financial Conduct Authority. This body was formerly known as the Financial Services Authority (FSA). Note that this oversight refers to the country where the broker is based.
4. Trading Spreads
One of the most critical determinants of profit revolves around the amount of commission that the broker will charge per trade. This is often referred to in units known as pips. Note that this spread will vary between brokers. As a rule of thumb, lower pips will equate to less commissions taken out during each trade. Still, other brokers could choose to charge no pip-based commission and instead make a profit when trading wider spreads. It is also worthwhile noting that a sign of a good broker is one which will display extremely tight spreads when dealing with common pairs such as the dollar/euro or the pound/euro.
5. Initial Deposit Amounts
One of the main attractive characteristics of Forex trading is that traders will normally not be required to place a great deal of money down to open an account (in contrast to a commodities position such as gold). Some online brokers will offer entrance for as low as fifty dollars. Another sign of a reputable platform is one which will provide numerous entry levels based upon the needs of the trader.
6. Account Flexibility
One should also be able to open up an account in relation to the amounts that they wish to trade. While often called by different names, standard options will normally include such terms as:
7. Regular Discounts
One of the bonuses which a good site will display is the ability of frequent traders to enjoy discounts such as a tighter spread (as in the case of spread betting). This will equate to a potentially higher profit margin. Although such an amenity may fall under the “VIP” category, most respectable portables will offer this as a standard feature.
If you are looking for the best forex bonuses, check out our list of the top forex broker bonuses and promotions for 2016.
8. Means of Depositing and Withdrawing Funds
The larger and trusted sites will provide the trader with numerous methods to make a deposit or withdrawal. The most common are credit cards, ACH payments, PayPal or a direct bank transfer. However, it is also important to realise that some platforms will charge a withdrawal fee. This can eat into one’s profits and needs to be taken into consideration. Any site which does not provide flexible payment options or methods which are unknown should be avoided. A security risk may indeed be present.
9. Currency Pairs
It only stands to reason that a respected site will provide the user with a great number of pairs to choose from. While standard pairs such as the dollar/euro are of course present, others including the dollar/franc or the dollar/yen should also be covered. The reason for this is that a larger number of pairs will help one to diversify a portfolio and avoid volatility within a certain currency.
10. The Trading Platform
In terms of functionality, the type of visual platform employed is of the utmost importance. There are a few questions that need to be addressed. How easy is it to track pairs in a real-time scenario? Are the account balance and any profits / losses visible within the main portal? How often is the site updated? Are “buy” and “sell” options clearly marked? The user must be completely comfortable with all aspects of navigation. Otherwise, an incorrect trade could be made or an opportunity may be missed.
11. Demo Account?
Good online brokers will offer the user a demo account. This will require no deposit and while it can only be used for a predetermined amount of time, demo accounts will enable a potential trader to understand the workings of the site in question. Brokers which do not provide such an opportunity should be approached with caution.
12. Trader Interaction
One of the best aspects of many of the top-rated sites is that they will enable traders to interact with one another. Not only is this an excellent way to meet like-minded people, but a great deal of advice can be gleaned from professionals in the industry. This is another feature which is becoming increasingly common in the larger sites.
These are some of the most important variables to keep in mind when choosing an online Forex broker. While no single metric will define a good platform, each should be considered with the others. The end result will be the ability to encounter the best site designed around your unique needs.