This article will show the Top 5 best forex brokers 2024. The broker is the intermediary between you and the market because the foreign exchange broker provides trading services for those who want to buy or sell specific assets. The best forex brokers usually provide a trading platform to perform transactions online. Easy Trading Tips has compared the best forex trading platform with a selection of the top 5 best forex brokers.
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| No. | Broker | Headquarters | Founded | Regulated by | Minimum Deposit | EUR/USD Spread | Official Sites |
|---|---|---|---|---|---|---|---|
1. | Australia | 2017 | ASIC, CySec, FSA | $200 | 0.0 Pips | ||
2. | Cyprus | 2010 | CySEC, FSC, FSB, FCA, BaFin | $0 | 0.0 Pips | ||
3. |  | Cyprus | 2010 | CySEC, IFSC, FCA UK, BaFin, CONSOB, AMF/ACPR | $10 | 0.2 Pips | |
4. |  | Cyprus | 2008 | FCA, CySEC, FSCA, FSA(SC) | $10 | 0.1 Pips | |
5. |  | UK | 2011 | CySEC | $25 | 0.2 Pips |
There are thousands of foreign exchange brokers around the world. Therefore, for beginners, it is difficult to determine which forex broker is most suitable for forex trading. Choosing the best forex broker is one of the most critical decisions because you are an investor and you will invest your own funds.
In order to conduct transactions in a more secure manner, it is important to have a reliable broker service. Therefore, choosing a reliable broker will bring profits in foreign exchange transactions. Before choosing any forex broker, here are some of the most important factors to remember.
We recommend that you only select forex brokers that are regulated by leading regulatory bodies such as Commodity Futures Trading Commission (CFTC), Financial Conduct Authority (FCA), National Futures Association (NFA), etc. These regulators will establish rules to protect traders and investors. Therefore, a regulated broker is more reliable than an unregulated broker.
Nowadays, there are many scams on the foreign exchange trading website. A professional and colorful website does not guarantee that the broker is trusted. If you are looking for the best forex broker, you must choose those forex brokers authorized and regulated by leading regulators.
The online trading platform should be simple and easy to operate. The best forex brokers provide you with a good choice of trading platforms from the list of trading platforms. This is because some traders prefer to use desktop computers for trading, while some traders prefer to use their tablets or smartphones for trading.
A poorly designed trading platform may cause you to increase your position instead of closing it. Or, when you really want to go short, it may put you in a long position. Therefore, it is important that the trading software should be simple and easy to enter and exit trades without any difficulties on all devices.
Ensure that forex brokers provide you with a reliable trading platform, such as the MetaTrader 4 platform, Meta Trader 5, or Sirix WebTrader. It should also have a range of technical analysis and fundamental analysis tools.
All forex brokers make money through commissions and spreads. Brokers who do not charge commissions can collect commissions with a wider spread. They make a big difference between the bid and ask prices of currency pairs. However, many brokers advertise that they do not charge any commission, but they make money with wider spreads.
For example, the EUR/USD currency pair has a bid price of 1.1285 and an ask price of 1.1295. In this example, the spread is ask – bid = 1.1295 – 1.1285 = 5 pips which is very high for this major currency pair. If your forex broker charges a wider spread, then, it is more difficult to make a profit from forex trading. For major currency pairs like EUR/USD, GBP/USD, USD/JPY the spread should be less than 1 pip without commission.
The leverage provided by a forex broker varies from one broker to another. If the leverage is high, then forex traders can use their investments to make money. However, under high leverage, risk losses are also higher. Therefore, you should choose the best forex brokers that can provide you leverage according to your trading style. If you choose a highly leveraged forex broker, then you should follow appropriate risk management strategies, such as stop loss and profit targets.
Some common leverage provided by foreign exchange brokers are 1:10, 1:25, 1:50, 1:100, 1:200, 1:500 and 1:1000. If your broker provides you with a leverage of 1:100, your initial margin will be 100 times smaller than your contract size. This is an example of leverage: Suppose your foreign exchange transaction capital is $5,00 and the transaction leverage is 1:100. Based on this leverage, your trading funds have increased by 100 times, which means you have 5,00 x 100 = 50,000 to trade.
For example, the current exchange rate of the AUD/USD currency pair is 0.6950, and you want to open a mini lot position (10,000 units). If our leverage ratio is 1:100, the margin required for such orders is $10,000/100 = 100 USD.
Some best forex brokers offer a large number of account packages for their traders. If you’re new to the forex trading platform and or just trying out a new forex broker, you should have a range of trading accounts to choose from. Some brokers offer demo accounts & a real account with very low minimum deposits with attractive bonuses, so if you are totally new in forex trading, then you should start with a demo account or real account with a minimum deposit.
The trading account can also vary depending on the type of spread. Some forex trading accounts have fixed spreads, while other trading accounts have fluctuated spreads. Or they can be commission-based accounts. Typically, a trading account set up for an experienced trader is a True ECN type account that allows the account to access the original spread provided by the liquidity provider.
Some best forex brokers offer their trading platform with a very small initial deposit, even as low as $5. The minimum deposit option is maybe the best choice for new traders. Many forex brokers offer standard, mini, and micro trading accounts with varying initial deposit requirements.
Every forex broker has its own deposit policy. Some brokers facilitate their clients to fund their trading accounts through local bank deposits and support multiple payment methods. Therefore, it is important to choose brokers who offer many convenient deposit options.
Another factor you must consider is the withdrawal option. All forex brokers in this industry have their own withdrawal policies. Some brokers may help their trader to withdraw profits through local banks, as well as other withdrawal methods, such as credit cards, MasterCard, PayPal, Skrill, etc.
The forex trading industry is the industry where 24-hours forex traders are actively involved in trading activities. Therefore, 24-hour customer support is required. Best forex brokers provide responsive support to their traders. If the customer support service of the broker you are planning to trade with is not good enough, you can lose your money.
Check the methods available to contact the support team, for example. Live chat, localized phone number, email. Also, check the response time of your customer support representative. Another factor that is often overlooked when reviewing a broker’s customer support service is whether the broker provides you with a localized or toll-free support number. The reason is quite obvious because the phone bill you charge when you call the support line is easy to increase.
When you start to join with forex brokers, you need to provide some essential personal details during the process of registration and deposit the fund, such as master cards, credit cards, bank details, passport information, and other important details. If the internet connections website of the forex broker is not well-secured, your personal information may be hacked and some unauthorized transfers may happen from your accounts. Therefore, security is more important in online trading.
The best forex brokers may bring you a high return on investment. On this website, you can find reviews and guides of the top 5 best forex brokers. Our purpose is to advise you to choose the top-rated forex broker for forex trading. You can use free demo accounts to test these foreign exchange trading platforms.
