Tips for Selecting a Forex Broker
The total turnover in the Forex market in 2020 is estimated at more than $ 5 trillion. There are many broker companies working in this segment, helping both beginners and experienced traders to trade on the exchange.
Profitability and usability of Forex trading depend not only on the luck and skill of the trader, but also on which broker he works with. The brand of the Forex broker, its commission, the procedure for depositing and withdrawing funds – this is what customers pay attention to first of all.
High competition in the Forex broker segment allows any trader to choose exactly what they need. The TopBrokers.com service will help you find the best company and trade profitably in the foreign exchange markets. The site features more than 130 Forex brokers from around the world, which are ranked by 10 criteria. Below the functionality of the TopBrokers.com service will be considered in more detail.
How to work with TopBrokers.com?
On the main page of TopBrokers.com service there is a table where all Forex brokers placed on the site are indicated:
As can be seen from the screenshot above, each Forex broker is evaluated by 10 positions:
- Founded – the year the trading platform was founded (as a rule, brokers with a long history have a recognizable brand and a good reputation in the market, which guarantees their reliability);
- Regulated – regulatory authorities in which the Forex broker received a license. It is better to choose those sites that have been licensed by the Commodity Futures Trading Commission (СFTC), Financial Conduct Authority (FCA) or Swiss Financial Market Supervisory Authority – these regulators impose the most stringent requirements on brokers and best protect the interests of traders;
- Reviews – this column contains links to pages where TopBrokers.com users leave feedback on the work of each Forex broker;
- Payment Systems – here it is indicated by which payment systems trading platforms accept and pay funds;
- Broker Type – using this criterion, you can divide all Forex brokers represented on the site into five categories:
- MM (Market Maker);
- NDD (No Dealing Desk);
- ECN (Electronic Communication Network);
- STP (Straight-Through Processing);
- DMA (Direct Market Access).
The best option for a trader is to use the services of NDD, ECN or STP brokers. Such a choice will make it possible to trade on the real interbank market, and not with the platform itself, as is the case with MarketMaker brokers;
- Minimal Deposit – here it is indicated what minimum amount of topping up the broker accepts. TopBrokers.com presents sites with a variety of minimum deposits – from $ 0 to $ 10,000;
- Maximum Leverage – shows the size of the maximum “leverage” available to the user. The range is from 1:30 to 1: 5000. There are brokers for both cautious customers and experienced traders who are used to trading with the maximum Leverage;
- Live (Average) Spread – a column for one of the most important characteristics of the Forex broker – spread. TopBrokers.com pays special attention to this indicator. Numbers for more than 50 currency pairs are available, and for convenience, you can display spreads for 10 currency pairs on the screen right away:
Please note that TopBrokers.com shows both the current and the average spread over the past period of time (from 5 minutes to 30 days). The minimum spread among all trading platforms presented on TopBrokers.com – 0.2 – is the smallest among all Forex brokers in the world;
- Deposit Bonus – if the Forex broker gives customers a deposit bonus, then this gift is necessarily mentioned in this column. To find out the detailed conditions for receiving the bonus, you need to click on the number – a hint will appear on the top that says what needs to be done to increase the deposit;
- Account – the final column, which provides links for registering accounts with Forex brokers. For sites that support demo accounts, there are two buttons: Real – for an account with trading for real money, Demo – for a trial account.
Useful Options TopBrokers.com
The TopBrokers.com platform offers several useful features for its customers.
#1. Comparison of specific brokers
If the user wants to compare some of the brokers most interesting to him, he can click on the “Add brokers for comparison” button. It is located on top of the main table and helps to select two, three or more among the variety of trading platforms for a more thorough study.
#2. Getting a detailed report
If the information presented in the table was not enough, we recommend that you enter the name of any broker in the “Quick Broker Search” field and click on “Search”. A detailed report will appear on the screen: