Forex trading can be very rewarding, if you do it right. How do you do it right? By being disciplined, by sticking to your trading plan, and by using the right broker. Not just any broker but a top forex broker.
After practicing with a demo account and backtesting your strategy, it is now time to get a real account and start making money. You must choose a broker that has your best interests at heart, a broker that is regulated and has a track record of reliability.
Here we will be sharing a list of top forex brokers to help you achieve success in your trading career.
When choosing a broker, there are some key factors you must first consider. Factors like the trading fees, regulating body, reliability, customer service, trading resources available, and so on. We will go over the key factors now.
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Qualities of Top Forex Brokers
Trade Execution
What you want is a broker that fills your orders as quickly as possible. This way your orders get filled at the exact price you want.
Regulation
To put this plainly, stay away from non-regulated brokers. Regulated brokers are secure because if any issues arise, the regulating body will take up the case and get you your money.
Tight Spread
Go for a broker that offers tight spreads and charges little commission. The trading fees make a significant impact on your bottom line especially as a new trader.
Customer Service
You need a broker that is available 24/7 to reply to your queries. Top forex brokers have excellent customer service and are always willing to help their clients iron out any kinks.
Markets offered
As a beginner, you probably won’t be trading so many instruments in various markets. However, as time goes on, you will want to diversify into other markets. Choosing a broker that allows you to trade as many instruments as possible is key.
Types of Top Forex Brokers
In general, forex brokers can be grouped into 2 broad categories; a dealing desk broker, and a non-dealing desk broker. Non-dealing desk brokers can further be divided into straight-through processing (STP) brokers and Electronic Communication Networks (ECN) brokers.
Dealing Desk Brokers (Market Makers)
Market makers are brokers that trade against you. This means that if you place a buy, they place a sell. If you place a sell, they place a buy. If you lose, they win. Despite how this may sound, market makers are not ‘bad guys’. In fact, opening a forex account with a market maker is sometimes beneficial to beginner traders.
Non-Dealing Desk Brokers
Straight Through Processing. This type of broker routes your orders to liquidity providers who are connected to the interbank market. These brokers make money by increasing the spread a little bit.
Electronic Communication Network
This type of broker sends your orders directly to the ECN, where it can be filled by other players in the ECN. ECN brokers make money by charging you are commission.
These 3 types of brokers all have their advantages and disadvantages. We will help you sort out the best from the rest. Check out our top list of forex brokers.
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Risk Warning: "Between 74-89% of retail investor accounts lose money when trading CFDs.You should consider whether you can afford to take the high risk of losing your money. "Trading Forex on leverage carries a high level of risk of loss to your capital. You should start trading only if you are aware of this risk. Therefore you should not invest money that you cannot afford to lose. All contents on this site is for informational purposes only and does not constitute financial advice.