Top Rated Currency Brokers
Finding a forex currency broker can be a daunting task. At ForexCharts we strive to provide you with the most accurate and up to date information on foreign currency exchange brokers to aid you in your quest. The following foreign currency brokers are ranked by spreads, customer service, currency pairs offered and ease-of-use. Read detailed broker reviews by clicking the “Review” link in each row.
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In order to trade foreign currencies, you must be able to access the market, and in order to gain access, you must choose from reputable forex brokers that can support your personal trading style while also serving as your “unseen” business partner. Since you may never see your new business partner, your process for selection should entail a healthy dose of due diligence since money will be involved. Quick decisions are ill advised at this stage. Caution and skepticism will protect you in the long run.
What are the steps for choosing a currency broker?
Here is a brief list:
1) What kind of trader are you? A “day trader” may favor an “ECN” type of forex broker, such as XM, where fees and spreads are tight and “scalping” is allowed. If you are a “position trader”, then a “Market-Maker” type of foreign exchange broker, such as Markets.com or AvaTrade, may suit your needs;
2) Research the market by reading reviews, checking with trader message boards for complaints, and looking over each broker’s website. You want to validate that his reputation is sound and his systems are of high quality;
3) Here are the more important points to notice:
a. Is the broker in your country? It is best to begin with a broker that has a presence in your country of residence. You can then easily verify that it is regulated and has the proper credentials to operate.
b. How long have they been in business? Someone very new may still have problems to work out – better to go with experienced professionals;
c. What kind of support is provided? You will want to check their trading software and whether several forms of support are offered. For example, training tutorials, market commentary, responsive customer service, economic calendars, and news feeds are the basics;
d. Are they “24/7” or restricted to specific time zones?
e. Which currency pairs are offered and what are the average spreads?
f. Does the spread cover their commission and “leverage” or are there other hidden fees?
g. Are there special restrictions on deposits and withdrawals?
h. Make sure they offer a free “demo” account service. You will want to practice on their platform before ever putting real capital on the line.
4) At this point, you need to select a small group for further review and comparison. Compare applicable features and determine how each currency broker attempts to out do his fellow competitors;
5) Lastly, make your selection and open your “demo” account. Practice trading for a few days and validate that you are comfortable with the platform. If you are satisfied, then send along a small deposit of a few hundred dollars at the outset. Start trading with mini-lots to ensure that the “live” system resembles the “demo” test. There will be differences, but these should be slight. If all goes well, then increase your deposit and have at it!
The Internet has definitely revolutionized forex trading, but we rarely have a “face-to-face” meeting with our forex broker, our most important business partner in this field of endeavor. Invest the time up front in making a prudent choice, and it will pay dividends down the road. Start your research by reading our reviews in the top list above and visit the respective currency broker for more information.