The forex market is becoming well-known these days. The high frequency of exchanging shows the rapid demands of traders around the world. In the consequence that, forex services are being offered by many companies called forex brokers, which founded daily. However, it seems a bit hard for beginners who want to start trading. But don’t be too much worried, I am going to show you the comparison of some reliable brokers and put them into 8 different criterion so that you can end up with your own decision of the top broker in 2019. But be noticed that this article is prepared for Asian traders.
What is your way to value a broker? I would highly recommend that you have to look at the way they treat their traders. The excellent trading conditions and good customer services has always been the first priority when a trader considers their broker. Besides that, being transparent and safe is a plus either. Less priority but not less important is the long-term profit. Small brokers often offer their customers bonuses or promotions but that could be a trap. In other words, reliable broker offer smaller bonuses but less risky. You have to be a wise traders, don’t get your eyes covered with short-term profits.
1. REGULATION
Having a license from a famous and trusted organization expresses the reputation, standards and capability for a forex broker. A license has the ability to show the credibility of a broker and ensure the safe for traders. There are some reliable certificates such as ASIC (Australia), CySEC (Cyprus), FSA (Japan), CFTC (United States), NFA (also United States), and FCA (United Kingdom) but remember, these are territorial. If a broker has FCA, that broker could not be able to protect their traders in Asia. By mean, a broker that has a lot of certificates doesn’t gain a broker more credibility. But one is better than none, still a broker obsesses a license rather than nothing.
There are many limitations having a license for most of brokers. Having a license means they have to offer higher spread, lower leverage, less trading tools, and higher minimum deposit which proves the result that it’s good for the trader but not for the brokers.
So to wrap this category up, I would say that having a license makes an organization more trusted. At least each must have one as their asset. So what should we do traders? Have a deal with worldwide organization rather than a small one. The choice is yours, make it smart.
2. TRANSPARENCY & SECURITY
Getting to know clear about your broker is the first action every traders should take when consider one in this overloaded and complicated trading market. Scammers are always willing to attack you. It’s recommended that you should not put a broker into your chosen list unless they are transparent of their financial and performance. My experience is just with Exness and FxPro. It can be found on their websites the reports or related information. More than that, Exness even shows how much they have in the bank. With this point, traders can take a light breath dealing with Exness since they have 4 times the deposit of their clients. Keep in mind that brokers compensate clients if there are some problems during the trade. It’s also a need to check the audit of your broker.
3. TRADING VOLUME
Why’s checking the trading volume of a broker important? Obviously, only if more people would choose that broker to trade, that broker becomes trusted as it should be. Billions of people are using them, showed surprising numbers.
Exness: $323 billion per month.
Hot Forex: $280 billion per month.
Forex.com: $185 billion per month.
FXCM: $108 billion per month.
4. CUSTOMER SERVICE
It seems to be a bit challenging for everyone to get familiar with the forex field. Fortunately, every broker provides a customer service to ensure best quality of serving. It’s considered that an effective broker has to be available at all time and support needy customers. The brokers tend to simplify the language as much as they can because they understand that not all the traders are good at English Some of the brokers offering 24/7 service and multiple languages I know are Exness, FBS, FxPro and XM.
5. COST & FEE
The spread and the commission is also a problem that traders usually concern when they make a deal. By means, if the trade and commission are too high, the rate to succeed is low and vice versa. To avoid that, brokers tend to charge their clients as low as possible. For the most popular currency pair, which is EUR/USD, some big brokers’ spread is as low as 1.1pip, like Exness, Hot Forex, and FBS. XM and FXTM’s is a little higher - 1.7 pip.
For the regular accounts most brokers don’t charge any commission even when it comes to ECN account, the spread turns to none, that leads to the rise of charging commission. Exness, in my experience, is the leading broker of this field; they charge only $2.5 for each lot, which is the lowest price of all. Learn more about ECN brokers here.
6. WITHDRAWAL/TRANSFER SYSTEM
One of the traders’ concern is the withdrawal time. For internal brokers, the time is shorter but however, not reliable. It’s safer when trading with overseas brokers but in fact, it’s going to take a longer time. The best solution I would highly recommend that to find a trader providing fastest so that you can follow your trading strategy. I couldn’t deny the high competitive efficiency doing this task. They transfer all of the needed task to machines so the time to perform these takes tremendously short.
7. LEVERAGE
What trader could refuse a broker with high leverage? But the sad news is, most of the forex brokers in Japan, United States or United Kingdom have to offer low leverage due to their strict regulations in their countries. For that reason, traders usually don’t prefer brokers with too many licenses. Here are some brokers with best leverage:
Exness: For accounts with less than $1000 and having traded more than 5 lots, the leverage is unlimited. For accounts with over $1000, it is 1:2000 top.
Hot Forex: 1:1000 top.
FBS: 1:1000 top.
XM: 1:888 top.
8. MINIMUM DEPOSIT
One certain thing to tell that you probably don’t want to spend too much money in an account when you start a deal as a small or a beginning trader. It’s common that 90% of new traders will lose all their money at the very first deals. In this case, you might think of brokers that offer account with low deposit. Here are some of my suggestions:
Exness: only $1.
FBS: only $1.
Hot Forex: $5.
To wrap this up, I hope that you can end up with your decision considering which broker is the most suits you. Needless to say, the choice is still yours.
