Choosing the best forex brokers is difficult, not because it’s hard to find reliable brokers but to find one that fit your trading strategy. There are many risk as well as chances behind various options, but you still have to choose the first one to start. Especially with new traders who obsess with the illusion of great lose. For that reason, this article summarizes the basic steps in practical order to help the novice minimizing loss to pick up quality brokers.
Regulations are to verify brokers’ reliability and trading conditions by financial associations. More regulations mean more passports but also tighter the conditions for brokers. For example, the US and UK brokers hold countries’ licenses as well as many others, so lower the leverage which makes them less competitive. One license from trusted firms such as ASIC, FCA, CySEC, or NFA is adequate. For brokers work most in Asian regions, local regulations are better options.
Follow the registration and verification, traders need to choose an account. Different mind leads to various trading strategies in forex trading market, among both rookies and veteran, so the more the options the better. In general, there are Cent, Classic, and ECN accounts for beginners, the experienced, and experts respectively. Then, traders should check the requirement on minimum deposit. The higher the minimum, the more discourage to traders. Here are some easy examples:
- Exness – no minimum deposit requirement
- FBS – at least 1 dollar as the down payment
- HotForex – requires 5 dollars minimum deposit
Then the trading condition
You can find the information of transaction cost when choosing accounts. Transaction goes with you all along the way of trading. There are two kinds of transaction fees: spread and commission, and the smaller fee is clearly better for traders. Normally, you are offered high spread and low commission or vice versa. Exness is quite special with the free commission trading conditions besides the lowest spread on most of its accounts (only Exness ECN option has commision fee but zero Spread). As EUR/USD is the most trading-popular currency pair, its spread can be used to compare against brokers:
- Exness, Hotforex – 1.1 pips
- XM and FXTM – 1.7 pips
In the forex gambling, whatever win or lose, one always wants to win back or to win more. It’s not a bad decision, but only if with strict discipline and self-control. High leverage from brokers responds to your wish, even will a little fund. As mentioned above, some brokers limit the leverage. On the contrary, the international brokers offer the much competitive condition:
- Exness accounts – 1:Unlimited
- FBS, HotForex accounts – 1:1000
- XM accounts – 1 to 888
New traders cannot detect problems before getting trouble with it, and they until then try to find the emergency support from brokers. Reliable and powerful brokers have their support team incredibly strong. Keep your eyes on two objects: brokers’ online support and regional office system, which take a long time to build up, need both reputation and might. Quality online support usually has a significant number of flags to encounter language barriers 24/7. Message them then you could at least calm your panic.
Exness, FxPro, FBS, and XM satisfy all the standard requirement. They also have collaboration with numerous international banks to guarantee your money safe and easy withdrawals.
Attractive welcome forex bonuses and sounds promotions are the superficial benefits. traders should research carefully and focus highly on the core. The best ECN brokers never stop developing to serve clients with more practical for long-term profit. Stick with the railroads on the train to success. Have fund trading!