This article, with information from reliable sources and my own experiences, can give you a good understanding of the best forex brokers and choose one for yourself.
Why are licenses so important?
Because traders can see the brokers’ reputation, capabilities and also standards. But you have to also consider brokers with the most suitable licenses, not the one with the highest number of licenses. For example, Asian traders should only look for brokers with Asian-based licenses because those licenses can protect them, other licenses can’t. For me, I would recommend brokers to only acquire 1 of these licenses: NFA, CFTC, FSA, ASIC, and CySEC.
Another disadvantage of having many licenses is that brokers may have to comply with the rules and offers things like lower leverage, high spread and also less trading tools etc… So, I wouldn’t recommend having more than one reliable license.
Most of the international brokers acquire more than one license so I will not recommend any broker in this aspect.
Which brokers have the top customer care
This is one of the most important standards you should look for in a broker. Because without a good customer care, you will face a lot of problems in trading. For example, you may have slower responses from brokers. Moreover, if you are not good at English, you will struggle to communicate with the brokers.
Brokers that are doing an excellent job in customer care and Exness, FBS, XM and FxPro. And the best so far is Exness, with 24/7 customer care.
Which brokers currently have lower fees for transactions?
I will use the most popular currency pair – EUR/USD to compare the spreads of some notable brokers.
Hotforex’s spread is 1.1 pip
Exness’ spread is 1.1 pip
XM and FXTM’s spread is 1.7 pips
You can clearly that with 1.1 pip, Exnes and Hotforex’s spreads are the lowest.
In terms of commission, because brokers charge commission for ECN accounts because its spread is almost zero, not like regular accounts. So they have to get income from commission for ECN accounts.
With onl $2.5 for each lot, Exness is currently leading in the commission rate among the top 5 ECN brokers.
Which brokers currently have the best leverages?
Almost every trader love to have the best leverage. But many brokers have to offer low leverage due to the rules of the licenses they acquired which make them less attractive to traders. Some of the brokers that are currently offering the best leverages:
– FBS: 1:1000
– Exness: Unlimited Leverage with several condition.
Accounts (higher $1,000 balance) get a leverage of 1:2000.
Accounts (lower than $1,000 balance and 5 lots finished) get unlimited leverage.
– Hotforex: 1:1000
– XM: 1:888
Which brokers currently have the best types of account
You may need to pay a large sum of money when trading with some big brokers. For example, the minimum deposit requirements of Forex.com and FXCM are $500 and $2,000 respectively. It is not suitable for small traders as they can’t afford to pay that much.
– Hotforex requires $5 minimum deposit
– Exness has no minimum deposit.
– FBS requires 1$ minimum deposit.
I have ranked the top 4 brokers based on the criteria I have just discussed.
– Exness reviews: 9/10.
– HotForex reviews: 8/10.
– XM reviews: 8/10.
– FxPro reviews: 7.5/10.
This is just my personal list of the best brokers, it is subject to my own trading experiences. Each broker has their own advantages so I would say you should trade with two or more best brokers and choose which one is the most profitable for you and offer you a good trading experience.