Your Definitive Guide To Finding The Best Forex Brokers In The Business
Forex trading has become a global investment phenomenon that takes the crown for being the most attractive and the riskiest financial markets of all time. Forex trading started gaining prominence during the internet revolution of the early 2000s, where a host of different online trading platforms became incredibly popular among the various classes of investors across the globe. Unlike conventional forms of investments, FX trading does not require a huge amount of investment, as FX brokers offer massive amounts of margin for traders to open large positions in the market with a relatively smaller trading capital.
- Best Forex Broker
- Regulated FX Brokers
- Our Criterias For Best FX Brokers
- FX Brokers Comparison List
- The Authenticity of FX Broker Reviews
- FX Brokers Platforms
- Top Regulatory Organizations
- Reviews Provided By FX Trading Sites
- Conflicts Between You and a Broker
- FX Promotions
- BestFxBrokers.com’s Mission
- Forex Financial Scams
Forex market has the distinction of being the only financial market in the world that operates around the clock for five days a week without any specified closing time. It is made possible due to the time difference between the various global financial centers, and the fact that at least one particular financial market remains open at a specific time of the day. Therefore, traders can find plenty of trading opportunities during different market conditions, which allow them to choose a convenient time to trade according to their specific schedule.
Forex trading seems to be an excellent option for investing your money without any major risks, apart from the losses that can be as significant as the gains. The FX market allows you to choose your preferred financial asset from a wide range of financial instruments, which may also include commodities, shares, indices, and other CFDS, along with the wide array of major and minor currency pairs. You can start trading with small trading capital, trade the markets according to your schedule, and most importantly, you can trade from the convenience of your home or office without setting up any additional trading desks. Then why is it that Forex trading has earned a moniker for being the riskiest and the most dangerous investment options of all time?
Recommended Forex Brokers
|XM||24-Hour Support8 Platforms||$5,000||FCA, CySec, ASIC||Excellent.||Open AccountReview|
|Avatrade||High quality educational materials Up to 400:1 leverage||Up to$15,000||CBI, ASIC, FSA||Excellent.||Open AccountReview|
|Plus500||Free demo account Up to 1:300 leverage||€25welcome bonus (T&Cs apply)||CySEC, ASIC, FCA||Very Good.||Open AccountYour capital is at riskReview|
|HYCM||Advanced charting and analysisSpreads from 1.5 pips||$5,000||FCA, CySEC, ASIC||Good.||Open AccountReview|
|Hotforex||1:1000 Account LeverageTrading Rebate Program||100%||CySEC||Very Good.||Open AccountReview|
|eToro||Islamic Friendly AccountsSocial Trading Network||15%||FCA, CySEC||Good.||Open AccountReview|
Why You Should Focus On Trading Only With The Best FX Brokers
The best FX brokers are the ones that work in the traders’ favor, rather than against it. After all, Forex trading is a business that is expected to follow all the rules and regulations that apply to all industries that deal directly or indirectly with consumers. Traders should consider a broker to be their partner in the Forex trading business, and a profitable trader can only be as successful as his broker allows him/her to be.
Due to the rising number of financial scams and consumer abuses, different Governments from around the world have increased their regulatory oversight by introducing strict regulatory conditions for all financial companies. Some countries such as the US have also gone to great lengths by changing several trading conditions in order to prevent brokers from exploiting their investors in any manner. In other regions such as Europe and Asia-Pacific, countries have created extensive regulatory frameworks to ensure that Forex brokers operate in a transparent manner and uphold the integrity of the financial markets.
Here are some of the top reasons why you should trade with the best Forex brokers for ensuring a safe and secure trading environment:
• Safety of Funds
Forex trading is a risky investment option, as the market has plenty of pitfalls that can wipe out your investments in a flash. Therefore, as a trader, your top priority must be to conserve your funds against financial scams by choosing regulated Forex trading companies. A regulated firm not only secures your trading capital from illegal financial transactions, but most high-quality regulators from the US, EU, and Asia-Pacific have investor compensation funds that provide compensation to its investors if a broker winds up its business.
• Protection Against Consumer Abuse
The best Forex broker aims to continually improve its customer service channels for ensuring that all traders are treated fairly and with respect. Some dishonest brokers are known to indulge in intimidating behaviors to make profits from their clients. A good amount of regulation is key to staying safe from all instances of consumer abuse and to enjoy a peaceful and enjoyable trading environment.
• Legality of Financial Instruments & Traded Markets
Forex Trading brokers offer several new and exotic financial instruments that may or may not be legal in certain countries. For instance, spread betting and binary options trading are legal in the UK, while it is considered as an illegal financial product and subsequently banned in the US. Some Forex brokers deliberately flout the rules by catering to traders without informing them about the legal aspects of a financial product. The best FX brokers that have proper authorizations and regulatory licenses will always ensure the legality of a product before offering it to their customers.
• Ethics & Conflict Of Interest
Forex trading includes trading the markets by providing a buy side and a sell side on a single currency pair, commodity, CFD, or ETF. These orders are either filled at the broker level through market maker protocols or taken up by the liquidity provider at the interbank prices through ECN or STP protocols. Most of the established regulators have issued strict guidelines to its brokers to ensure that there is only a minimum amount of conflict of interest with their traders. Therefore, you should only choose reliable partners that are able to offer you the best market access that does not limit your trading freedom.
• Transparent Trading Conditions
There are several trading costs and conditions associated with a Forex trading account, such as spreads, commission, leverage, SWAPs, lots, margin calls, and maximum orders. As a trader, you should have all information related to the trading conditions to prepare yourself for the best outcome in the markets. Hidden costs of trading and questionable margin strategies from the broker can put you out of the markets swiftly, which may be a huge hindrance to your trading strategies. Only trade with brokers that are honest about their trading conditions and if a broker doesn’t answer your queries correctly, stay away from them at all costs.
The Reason Behind The Rampant Forex Financial Scams
Forex trading began as a relatively unregulated market that allowed several companies to take advantage of unsuspecting traders. Until quite recently, it was incredibly difficult to find the best FX brokers from the overwhelming majority of companies that offered their services from different parts of the world. The lack of any serious regulatory oversight and the inability of traders to determine the quality of a Forex broker prevented investors from exercising due diligence while choosing a Forex trading company. The relative lack of information from online media and misinterpretation of the facts by dishonest market elements also paved the way for countless financial scams that resulted in billions of dollars in losses for both small and large investors.
An unprecedented amount of unrealistic expectations from inexperienced traders has also rendered a certain measure of negative reputation for the Forex trading community as a whole. Several Forex brokers lured traders into the untold riches of the market by promising impossible returns from Forex trading through high leverage, only to profit from their losses time and again. Other brokers simply sought to keep all the money to themselves by not honoring any withdrawal requests made by their clients, which creates tremendous psychological and financial hurdles for millions of Forex traders.
Bad Forex Brokers
|FBS||100% Deposit Bonus1:3000 Leverage||$123||IFSC||
|Open Account AnywayReview|
|FBS||100% Deposit Bonus1:400 Leverage||Up to50%||CySEC||
|Open Account AnywayReview|
How Do We Rate The Top Forex Brokers In The Financial Markets?
We compile a ton of Forex broker reviews by considering different parameters that contribute to a fair and reliable trading experience. As professional traders with many years of expertise in the market, we realize that no company is perfect and there can be shortcomings with every Forex broker that we review. Even some of the best Forex brokers in the market can make terrible mistakes, which are simply considered as part and parcel of the financial markets. Nevertheless, our aim is to provide you a list of the top Forex brokers on the market that is guaranteed to keep your funds safe and offer you a favorable environment to enjoy profitable FX trading. Here are our considerations while compiling the list of best FX brokers:
• Location & Regulation
Location plays a key part in determining the reputation, reliability, and authenticity of a Forex broker. Some geographical locations are considered to be far superior to others, which makes sense due to the different regulatory guidelines imposed by various Governments. Location and regulation go hand in hand with each other, especially when we consider the advantages of trading with a regulated broker that is supervised according to the best standards in regulation.
From our experience, we believe that Forex brokers from the US, the EU, Australia, Japan, Singapore, the Middle East, and South Africa offer better regulatory protection than the brokers that are located in the British Virgin Islands, Belize, or other tax havens. Naturally, the top countries in our preferred list of geographic locations are also home to some of the most feared and respected regulatory organizations in the world, which further reinforces our belief in the effectiveness of these agencies in combating broker scams. Although tax havens have a negative reputation in the industry, there are several FX brokers from these countries that offer high-quality services without inconveniencing their clients in any way.
• Type of Trading Accounts
Top rated Forex brokers make it a point to cater to small, medium, and large traders with equal priority, immaterial of their wealth or social status. We believe that everyone should be able to access the market without being discriminated. Several Forex brokers in the market specifically reserve their services for rich and wealthy investors. Although we do not find anything wrong with companies catering to an exclusive niche of traders, we try to concentrate on brokers that offer services on a global platform, where every classification of trader gets to choose a trading account that is well-suited to his or her trading requirements. Brokers also categorize their financial products according to different account conditions, and we check all the fine aspects of a trading account before recommending them to traders.
• Cost of Trading
The cost of trading can include all the financial aspects of opening a Forex brokerage account, which includes minimum deposit requirements, the spreads, the commissions, the SWAP rates, fees for depositing and withdrawing funds, and other costs for services associated with a trading account. The cost of trading varies according to the type of protocol adopted by the broker, the kind of market access, and the trading features. We typically recommend ECN brokers that offer 0 pip spread guarantee along with the lowest commissions for cost-effective trading.
• Leverage & Margin Requirements
Forex trading is a leveraged product, which is also one of the unique aspects of the business. Trading on a high leverage and low margin requirements can have devastating effects on a traders’ capital, which is why we don’t recommend using high leverage for all traders. Nevertheless, some brokers offer the option of trading from as low as $1, which requires a sufficient amount of leverage to open a position in the market. On the downside, a small movement in the opposite direction of a trade can induce a margin call, which is designed to protect both the broker and the trader from a negative balance.
• Platforms & Features
A Forex trading platform is the most important component that links a trader to the market. Platform performance and its reliability can mean a world of difference between winning and losing in the markets, which is why the top FX brokers always concentrate on providing the best trading interfaces to its clients. Some brokers offer proprietary trading platforms that are designed by the company’s in-house designers, while other brokers just choose to offer licensed versions of third-party trading platforms such as the MetaTrader and the cTrader.
• Deposit/Withdrawal Options & Speed Of Payments
Regulated Forex brokers are required to follow a broad range of anti-money laundering laws and other financing restrictions due to the inherent risks of overseas financial transactions. Regardless, we compare Forex brokers according to the different payment options, the minimum/maximum deposit and withdrawal conditions, the security of payment processors, and the speed by which the broker completes all inward and outward transactions. From our extensive experience of dealing with various Forex brokers, we understand that the safety of funds and the speed of transactions are far important than other qualities of FX brokers. Forex brokers that pay attention towards facilitating fast, smooth and secure payments are always considered to be more reliable than brokers that concentrate their efforts only on improving the FX trading environment.
• Customer Support
A broker can be the best FX trading company in the industry for its services, security of funds, and overall trading features, but a lackluster customer support department can make or break the company’s prospects of reaching the pinnacle of the Forex trading industry. Modern-day consumers are wary of all business that involves financial transactions. A significant majority of retail traders want the reassurance that they can contact the company representatives at any time of the day or night for any concerns, and they expect their broker to offer friendly and professional support to resolve their problems. Most top regulators also provide support services to its investors in the form of Financial Ombudsman, arbitration, and the opportunity to be represented by a legal advisor for conflicts that reach the court. It is also safe to assume that the best FX broker in the market will always try to solve its differences with its client, rather than dragging their conflicts into a legal proceeding.
• Rewards & Promotions
Forex trading has become highly competitive over the recent years, and we are witnessing a considerable rise in the number of Forex brokers. Increased competition among brokers means that traders have far different options and are not at any discretion to choose a broker according to their merits alone. Therefore, several top Forex brokers now offer attractive rewards such as signup bonus, deposit bonuses, loyalty programs, cash rebates, and free promotions to lure traders into their brokerage accounts. We find and suggest the best broker forex that offers decent rewards and promotions without burdening the trader with impossible trading conditions. If possible, we also recommend traders to stay away from some bonuses, especially due to the often unreasonable trading restrictions imposed on the client’s trading capital.
Browse Through Our Forex Brokers Comparison List For More In-Depth Information
At BestFXBrokers.com, we have created a thorough Forex brokers comparison list for our readers that contain all the vital information that are required for traders to make an educated decision. As traders, we have invested our money in various brokers over the years, and clearly, understand the benefits of comparing different brokers before finalizing a Forex trading company that can assure us of world-class brokerage services. The following Forex brokers list will provide you with all the necessary broker information such as regulatory status, minimum deposit option, type of trading accounts, maximum leverage, spreads, commissions, bonuses, payment methods, trading platforms, and other aspects of trading that might help you in choosing a high-quality FX broker.
Can I Trust Third-Party Forex Brokers Reviews?
It is common for internet users to find all types of reviews about different online products and services, which can have both positive and adverse effects on businesses and their consumers. Honest Forex brokers reviews are too rare, especially due to the wide-spread online media that allows anyone to post any kind of information without verifying the actual facts claimed in these reviews. For example, we have seen an alarming amount of negative reviews left by disgruntled traders, former employees, and dishonest competitors to tarnish the image of otherwise honest and reliable Forex brokers. In some cases, we have also witnessed competitors paying for negative reviews, while at the other end of the spectrum; several FX brokers also pay handsome amounts of money to their clients and other independent reviewers for leaving positive reviews.
It becomes extremely difficult for new traders to trust the online Forex broker reviews and even professional traders go through extensive trial and error to choose a broker that they can trust. Although there is a fair amount of mistrust among traders while going through a majority of online broker reviews, there are some genuine reviews left forward by actual clients and qualified reviewers, which should provide you with a clear picture about the authenticity of a Forex broker.
You can determine the authenticity of FX broker reviews by actually analyzing the tone of a review. If a review sounds over the board in its criticisms by pointing out trading errors or inconsequential faults, the chances are that they might be left by traders who have lost a lot of money due to no fault of the broker. Forex trading is risky, and some losing traders vent out their frustrations at the broker by leaving negative reviews. On the other hand, paid positive reviews will have a promotional tone that supports the reviewer through bonuses, commissions, or other monetary gains. These positive reviews are simply left by company employees, affiliates, or other independent reviewers at the request of a broker. As a trader, you should read through several different Forex trading companies’ reviews to carefully understand the authenticity of each customer testimonial. The more time you spent on analyzing the qualities of a company, the more chance you have in finding a reliable FX broker.
At BestFXBrokers.com, we always review Forex brokers according to a standard review format that attempts to uncover all the relevant facts of a broker, before recommending them to our readers. All the reviews are properly screened for any discrepancies, and we carefully cross reference all the facts before publishing the reviews on our website. We also try to provide all information as it is, whether positive or negative, as we believe it is our responsibility to our readers to state the facts in its accurate form.
Compare Forex Brokers According To Their Trading Platforms
One of the huge advantages of online Forex trading is the sheer number of FX trading platforms available to traders. You have the choice of trading with proprietary trading platforms or choose popular third-party trading platforms that are designed by dedicated platform designers. These independent platforms are licensed by brokers according to their trading products and their overall brokerage budget. Some mainstream brokers usually prefer to develop their own trading platform so as to offer custom-tailored services to its traders. These proprietary trading platforms may have advanced features and charting options, along with the opportunity to trade some exotic financial products and instruments that are usually not available with third-party Forex trading platforms.
Leading third-party service providers such as MetaQuotes and Spotware have also designed their own trading terminals that are sold to FX brokers under different commercial licenses. These trading platforms are designed to provide a uniform trading experience for investors and to help brokers eliminate the cost of designing and developing their own trading platforms. The concept of licensing third party platforms has led to an exponential rise in the number of brokers that offer their trading services through these interfaces.
Some of the most popular trading platforms in the industry include the MT4, the MT5, the cTrader, the ProTrader, the NinjaTrader, and the TradeStation. There are also other less popular trading interfaces such as the JForex, MarketsPulse, and the LMAX Exchange that are adopted by brokers due to their relatively low cost of licensing. Platforms are chosen for their reliability, market access protocols, ease of programming, EA support, latency, the speed of execution, and the number of financial instruments available for trading. Every platform in the market has its unique advantage over the others, but the MT4 platform continues to be the most popular trading platform for retail traders. The cTrader and the ProTrader are also gaining an incredible popularity among professional traders, mainly due to their direct market access protocols and advanced pricing model.
CFD Trading Platforms
|Avatrade||AvaTrader, AVAOptions, ZuluTrade, Mirror Trader||
|Plus500||Plus500 trading platform||
Your Capital is at Risk
Your capital is at risk
Our Preferred Regulatory Agencies That Regulate Forex Trading Companies
At BestFXBrokers.com, we give a huge priority to regulation, as we believe that regulated brokers are by far the most reliable and trusted Forex trading companies for keeping your trading capital secure. The regulation of a broker became an important aspect of investments after the enormous financial scams and broker irregularities during the period from 2000 to 2010. Today, investors from around the world can be assured of the fact that Governments from different countries have created excellent regulatory frameworks that are intended to protect investors from any malicious activities. Several Forex trading sites are dedicated to ensuring that all regulated brokers in the industry adhere to their respective licensing regulations, which add further confidence among investors.
We usually prefer to trade with brokers that are regulated by the top regulatory organizations in the world such as the CFTC, the NFA, the FCA, the CySEC, and the ASIC. These regulatory agencies have proved time, and again that proper regulation will not only protect investors against financial malpractices, but it can also help in maintaining the integrity of the markets through proper supervision. All of these regulators have several common traits that make them a notch above the other regulators in the market. European regulatory organizations such as the BaFin, CNMV, FCA, and the CySEC fall under the European MiFID derivatives that bind together all regulatory agencies for creating a uniform regulatory framework. European regulators also collaborate on different aspects of economic regulation to deal with broker scams and financial discrepancies, which have enabled investors from across Europe and the rest of the world to be assured of the effectiveness of the MiFID.
CFD Regulatory Bodies
|CySEC||CySEC||Republic of Cyprus||2001||XM Plus500|
|FCA||FCA||United Kingdom||2013||XM HYCM Plus500|
|ASIC||ASIC||Commonwealth of Australia||1998||XM Avatrade Plus500|
Should I Blindly Trust Recommendations Provided By Forex Trading Sites?
There are pros and cons to reviewing information offered by Forex trading sites, but there are genuine online resources that provide honest opinions through their Forex broker comparison lists. Some broker reviews might not paint the complete picture, while others are targeted at misleading clients just to make profits. On the other hand, you should consider these opinions as several high-quality review forums actually provide an excellent database of information to give you a better understanding of the Forex trading industry. You can go through multiple reviews and do your own research before making your decision based on your findings. In essence, instead of trusting any reviews blindly, you should also complement all the online information with research of your own to stay safe against broker scams.
What Do I Do If I Have Bad Experiences With Top Rated Forex Brokers?
Top Forex brokers rarely have any issues with its clients, but no company is immune from broker-related issues. There can be conflicts between a trader and the broker, which should be resolved mutually through arbitration. The best regulators also ensure that all client disputes shall be settled through mutual communication, or the investors have the option of contacting a Financial Ombudsman service or the court for a solution to a conflict. The benefit of trading with the best Forex broker is the fact that your rights as an investor are protected through excellent regulatory guidelines, which not only enable you to secure your money but also help you to enjoy a profitable trading career.
In case you are experiencing any troubles, the best course of action would be to send a formal written complaint to the concerned department at your Forex trading company. If for any reason, you are unable to receive a suitable response, you can also contact the regulator or other higher authorities for assistance. Finally, you may also post your grievances on public forums and Forex review websites to let others know about the problems that you have faced, which should also help other traders in the market to be careful against such instances in the future.
Do The Best Forex Trading Brokers Offer Bonuses & Other Trading Rewards?
It’s hard to find good quality trading bonuses, reward programs, or other types of promotions at top FX brokers, but some mainstream brokers may offer these types incentives for their clients as a part of their seasonal advertising campaigns. Forex brokers are also known to actively promote their services through affiliate programs, which promise to pay substantial rewards for every converted trader that deposits money into their trading account. These affiliates may also provide bonuses to traders in the form of cash rebates or other rewards for signing up.
Forex trading is different from other products such as binary options trading or spread betting. Binary options brokers usually provide a remarkable bonus system to entice traders into making a massive deposit. In most cases, Binary Options traders can avail up to 100% deposit bonuses that can be used for trading without any restrictions. Forex brokers do not offer these kinds of bonuses due to the investment-oriented nature of FX trading, and due to the numerous conflicts that may arise from providing the said bonuses.
However, trading bonuses can increase your account equity by as much as 100% in several cases, which can offer you a tremendous leeway to trade the markets according to your specific requirements. Average bonuses from mainstream brokers start from 5% of the trading capital, with several bonuses offering as much as 50% as a deposit bonus. Some brokers also offer the option of a no deposit bonus option, which allows traders to open an account and start trading without making an initial deposit. These no deposit FX bonuses can be anywhere from $5 to $500, but the bonus and the profits that you accumulate with these bonuses cannot be withdrawn, unless you make a deposit of your own. Therefore, there is no free money in Forex trading as advertised by some dubious companies in the Forex market.
We wouldn’t recommend signing up for bonuses or reward programs, especially due to the strict trading conditions that are imposed on your trading capital. It is imperative that you should understand all of the bonus terms and conditions before availing a bonus from your Forex broker.
- AvaTrade Review
- Country: Ireland
- Regulations: CBI, ASIC, FSA
- Up to $15,000
Your capital is at risk
How Can We Help You In Finding The Best Forex Broker?
At BestFxBrokers.com, we continually strive to offer you the best information in the industry by reviewing the top Forex brokers in the market and recommending the best Forex broker according to your trading needs. All of our recommended brokers are systematically evaluated for their efficiency, reliability, and trustworthiness before we give them our seal of approval. The best Forex brokers will not only work towards the improvement of their services, but they constantly redefine their product portfolio to keep abreast of the modern technologies in the retail trading market. We are usually the first of the Forex trading sites that embrace the challenge of understanding the minor differences in services rendered by a Forex trading company, which can make the ultimate difference between winning and losing in the markets. Make sure that you read through all of our resources, Forex brokers reviews, and Forex articles to get an excellent idea of how the markets work in the contemporary trading world.