Brokers who offer a lot of bonuses are often the ones that are less reliable. The more profit you gain, the riskier you have get. From my own experience and several reliable sources, I will write a very brief article to help you choose the best forex brokers for yourself.
Table of Contents
Forex license
It is a very criterion as it shows capabilities, standards, and reputation of a broker. But having too many brokers is also not good, just look for brokers that have the most suitable license for you.
For example, a UK-based license wouldn’t be good for you if you are an Asian trader in Asian countries. Personally, I think a broker only has to acquire one of these licenses: CySEC, CFTC, NFA, ASIC, and FSA.
Moreover, having too many licenses only do more harms to brokers as they have to offer higher spread, less trading tools, lower leverage, and many other things. So only reliable is enough.
Because almost every international have more than one license so I don’t recommend a specific broker.
Brokers with the top customer service
I would say this is one of the most important criteria that many traders should look for when choosing a broker. Because without local support service, they would have slower responses and traders with bad English will also struggle a lot.
Exness, XM, FBS and FxPro are the four popular brokers that have excellent customer service. And I think Exness is the best out of these four with 24/7 support service.
Which brokers offer the best account types?
Big forex brokers usually ask you to deposit a high amount of money and that’s not really ideal for small traders as they only want low minimum deposit. For example, FXCM and Forex.com require traders to deposit at least $2,000 and $500 respectively.
– FBS requires $1 minimum deposit.
– Exness minimum deposit is $1.
– Hotforex minimum deposit is $5.
Which brokers have the lower transaction costs?
To compare the spread, I will use the most popular currency pair – EUR/USD
Exness’ spread is 1.1 pip.
XM and FXTM’s spread is 1.7 pips.
Hotforex’s spread is 1.1 pip.
Exness and Hot Forex are the two brokers with the lowest spreads here.
For commission, brokers generally don’t charge commissions for regular accounts, only ECN account. Because ECN account have zero spread so brokers have to get income from commission. Exness is currently offering the lowest commission cost for ECN account, only $2.5 for each lot.
Which brokers have the highest leverage?
This is the favorite tools of many traders. Brokers that have Japanese, US and British licenses usually have low leverages due to the rules of the licenses. Therefore, those brokers may not be as good as other brokers. Below are the brokers that offer the best leverages:
- Exness: Unlimited leverage. For accounts with less than $1,000 balance and over 5 lots finished, will have unlimited leverage. For accounts with more than $1,000 balance, the leverage will be 1:2000.
- FBS: 1:1000
- Hotforex: 1:1000
- XM: 1:888
Conclusion
I have ranked them based on the above standards
– Exness reviews: 9/10.
– HotForex reviews: 8/10.
– XM reviews: 8/10.
– FxPro reviews: 7.5/10.
I have made this list using my own experience that I got from trading with those brokers for a quite long time. From my experience, don’t choose the final broker yet. You should pick several brokers and trade with them for a few months before making the decisions because each of them has their own advantages and disadvantages. After understanding them, then pick the one that fits you the most.
