Who is the best forex broker in the world presently?
Nowadays, the forex market is becoming more and more popular than ever and everyone is looking for the best forex broker. Everyday...
Nowadays, the forex market is becoming more and more popular than ever and everyone is looking for the best forex broker. Everyday there are a large number of traders exchanging from all over the world. As a consequence, there are so many organizations that offer forex services, which are named forex brokers, arised daily. For beginners, choosing a great broker to start trading might be quite a problem. That’s why today I’ll make a comparison among some well-known brokers and rank them based on 8 different categories so you can decide which one is the top broker in 2018. One thing to bear in mind is that, this article is intended for Asian traders.
How can we assess a broker? The answer is the way they treat their traders. A good broker to cooperate with must give their traders high-quality trading conditions as well as customer services. Furthermore, transparency and security is a requirement. Finally, they have to guarantee the long-term profit for the traders. Never get deluded by the bonuses or promotions from small brokers. You must be aware that you can’t make any profit right away in the tricky forex market. It takes lots of time, effort, and strategy. That’s why the best brokers often offer little bonus for traders. Additionally, trading with small brokers may get you into more risks because they are less safe and professional.
Hopefully, after this article, you can make a good choice of a broker that suits your conditions and trading tactics most. (Or you can go here to find out the 5 best forex broker in present)
It is of great importance for a forex broker to get license from a trustworthy organization. The license is the evidence that the broker has satisfactory standards, reputation, and capability. There are some popular and trusted certificates such as ASIC (Australia), CySEC (Cyprus), FSA (Japan), CFTC (United States), NFA (also United States), and FCA (United Kingdom). A license is capable of guaranteeing the safety of traders but remember that it can only be used in some areas. For instance, a broker that has the FCA certificate cannot protect their clients in Japan. Therefore, being regulated by many doesn’t make that broker better. However, it’s always better to ensure that your broker has license than none.
On the other hand, a license will limit many things for a broker. They will have to offer higher spread, lower leverage, less trading tools, and higher minimum deposit... This clearly proves that having many licenses is not good at all. One credible certificate is enough.
Because almost every big broker owns at least one reliable license, I can’t say which one is better in this category. But there is one point you need to know, those organizations only grant license to large international brokers, so don’t trade with small, unpopular ones.
2. TRANSPARENCY & SECURITY
It is necessary to know as much as possible about your broker. The forex market is a complicated place. There are scammers anywhere on the internet, so it’s best that you choose a broker that is clear to you about their financial reports and performances. So far, only two brokers can show their customers everything about them, which are Exness and FxPro. You can easily view their financial reports or other information right on their website. Exness even exposes more of their transparency to an absolutely whole new level when they reveal their total financial fund in the bank. At the present, their fund is 4 times more than the deposit of their clients so there is no point to worry about losing your money in case of technical problems or crisis while trading with Exness. Besides, most brokers promise to make up for their clients in case unexpected problems occurs. One more thing to note is that you should also check the audit of your broker to make sure that their account is carefully inspected every year.
3. TRADING VOLUME
Why is it important to review the trading volume of a broker? It’s very simple for a reason. The more traders comes to work with that broker, the more trusted they are. So, if traders from around the world choose to trust them, why shouldn’t we?
So here are some of the monthly trading volume of big forex brokers.
Exness: $323 billion per month.
Hot Forex: $280 billion per month.
Forex.com: $185 billion per month.
FXCM: $108 billion per month.
From the statistics above, we can see that Exness has the most trading volume. Does this mean it is the best forex broker in the world market? Let’s find out in the next criteria
4. CUSTOMER SERVICE
The forex field is surely not a piece of cake to us all, so the broker’s customer service is really vital. New traders constantly need support and instructions. A great broker is one that is always available and can help customers with anything. Moreover, language is also the key. Not all traders are good at English or can fully understand it, so it’s better for a broker to be able to help customers in different languages. There are some big brokers that have excellent customer care (24/7 service, multiple languages) like Exness, FBS, FxPro, and XM.
5. COST & FEE
When it comes to cost and fee, that means the spread and commission that a broker gets from their traders. Obviously, no traders want to be charged too much when trading so it is advisable that forex brokers keep their spread and commission as low as possible. For the most popular currency pair, which is EUR/USD, some big brokers’ spread is as low as 1.1 pip, like Exness, Hot Forex, and FBS. XM and FXTM’s spread is a little bit higher, 1.7 pip.
Most brokers don’t charge any commission for the normal accounts. But when it comes to ECN account, the spread is almost none, so they have to charge commission (For the best ECN broker, click here). Exness is presently the leading broker in this aspect. They charge only $2.5 for each lot, which is the lowest price of all.
6. WITHDRAWAL/TRANSFER SYSTEM
Withdrawal time is always of great concern to any trader. For local brokers, the time is shorter but they are not reliable. When trading with overseas brokers, it is safer but the withdrawal process may take you excessively long time. What you need is to find a trader that is the fastest so that you can continue with your trading strategy. From my own experience, I recommend Exness since they have all this work done automatically, thus the time to perform these kinds of tasks is only millisecond. When it comes to withdrawal or transfer time, Exness has no competitor in this field.
Apparently, all traders like brokers with high leverage. The higher, the better. Nonetheless, forex brokers in Japan, United States or United Kingdom have to offer low leverage since they are strictly controlled by these countries, just as I mentioned above. As a matter of fact, traders mostly don’t choose to cooperate with brokers with too many licenses. Here are some brokers with the 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.
These may be considered the best forex brokers to trade with in terms of leverage.
8. MINIMUM DEPOSIT
This field is of great importance when you are just a small or even a beginning trader. As a newbie, you surely don’t want to invest too much money in your account because 90% of new traders will lose all their money in the beginning. Brokers that offer accounts which only require a small deposit is definitely the better choice for you. Here are some:
Exness: only $1.
FBS: only $1.
Hot Forex: $5.
I hope this article can help you decide which broker is the most suitable for you. Of course, each broker has their own strength and weakness. It is you who decide who to go with. If you are just a beginners in the forex market, you can read this article to know what type of account is the most suitable for you.
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