Looking for the Best Forex Brokers? Why Not Read Some Forex Broker Reviews?
Spend a few minutes doing a quick search, using your favorite browser, for online broker reviews, and you’ll be amazed at the number of hits you get. There are so many it seems like everyone has some kind of opinion, on every Forex broker and trading platform available. Why are there so many? And is there a difference between a review and a forum? Let’s be honest here and let you know the truth about the reason for a Forex broker review. Basically, most are written with one purpose, and that is to get readers to click on a link, and start trading with a particular Forex broker, and to generate an income for that particular broker. But that doesn’t mean much of what you read is rubbish, because that wouldn’t be good business sense. Any short term gain would quickly be outweighed over the long term, if all the reviews contained misleading or false information.
Forums, on the other hand, usually contain comments from real customers, and can be a very valid source for due diligence, particularly if a particular broker seems to have a lot of very similar comments. You should always read comments with a touch of scepticism as what may seem like knowledgeable and informed comments can be completely the opposite. While it may not be deliberate, it is nevertheless not right. You would be better to stick with reading a trader’s experience of a particular site, rather than comments saying who the site is owned by and that you simply shouldn’t use it. If things don’t look or feel right it is always advisable to perform your own checks, because some forum posts are written by bad losers, or those who haven’t read a broker’s terms and conditions carefully enough and have had their fingers burnt.
The most important things to look out for in a Forex broker review
Some of the better Forex broker and trading platform reviews are really rather long, but don’t let that put you off reading them, as far more effort will have gone into researching and writing them than most of the short ones. However, a word of warning is required here because some can be very long winded and are really just a page full of generic sound bites. Look out for those that keep on prompting you to sign up with a particular broker and steer clear of them at all costs. They really aren’t worth more than a minute of your time. You must know the kind of thing we’re referring to: ‘x’ is a great broker, and it’s time to open an account right now because there is blah, blah, blah waiting to be added to your new account. Get the picture? You can be sure there won’t be much useful information contained within such online Forex broker reviews.
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We have to say that there are a number of great Forex brokers, and many of the services offered are much the same. But the best Forex broker reviews will go into more detail about the company behind the name. It will explain what kind of security measures are in place, whether the broker is licensed and regulated by a well-known regulatory body. Which are very important factors to consider when choosing the right Forex broker and trading platform. Of course, it’s entirely up to you if you choose to trade with a broker that doesn’t follow any particular rules. And we’re not saying you should avoid them at all costs. But should you have any kind of problem be aware that an unregulated broker won’t be as able to return your cash, or help in resolving any issues.
A good online Forex broker and trading platform review will share the good and bad points
It’s important to find reviews that share all pertinent information about a particular broker and trading platform. And that includes not just the good points but the bad ones too. You may find that some of the reviews you read are very engaging, witty, and a really good read, but did you actually learn anything valuable? There are bound to be some brokers and trading platforms that are so good there is very little negativity about the service or performance. But if the review is lacking information about cost, withdrawals, and licenses, this should raise your suspicions, and you should be asking yourself why it’s been left out. A good Forex broker review will be a good read, but it will certainly cover all the important facts that many like to hide in the ‘small print’. We agree that terms and conditions can be rather boring, and sometimes downright confusing. But one of the purposes of a review is to decipher the jargon and put it in a language understandable by all. There will often be news about bonuses and promotions, but the best reviews will look into the offers more closely, and sometimes even dull the shine of what may seem like amazing displays of generosity.
There are a number of comparison sites, much like this one, and they are a great way to keep up with what is happening in the industry. If you’re a keen Forex trader it is very easy to get stuck using the same old broker, or to never try a new trading platform. We have to agree this is a very safe option, but think what you might be missing out on by staying with what you know. The Forex industry, along with many other forms of financial investment such as binary options, is very competitive, and new brokers and trading platforms are entering the market on a regular basis. And when something new comes along there are often a number of interesting offers that are designed to entice you. How will you know about them if you never look elsewhere? We appreciate that reading all the gumph can be rather tiresome, as it often means reading the same thing over and over again. However, if you find a comparison site you like then stick with it, and we hope we’ll be the one you add to your favorites. Technology is always changing and new ideas are waiting to be made more mainstream, and there are often things that make certain brokers or trading platforms stand out from the crowd. It’s good to keep your finger on the pulse, and the best review sites will help you do that effortlessly.
So you should now have an idea of the value to be had from reading Forex broker reviews as well as reviews regarding the various trading platforms. So what other useful information have we got to share?
Tips on finding the best Forex brokers
Finding the best Forex brokers can be a time consuming task. But we hope by now that you’ve realized we can help you. There are hundreds of online brokerage firms to choose from, all eager for you to open an account. So make sure you spend some time reading our honest and upfront Forex broker reviews, as well as those we write on various trading platforms, and you should find the choice a much easier one to make.
So what sort of qualities should you be looking for in the best Forex brokerage firms? Possibly the most important are the ability to offer fast executions, a reliable trading platform, and a trustworthy broker who will ensure your funds are kept safe and secure at all times. Other things that you might find attractive are welcome bonuses, mobile trading and possibly SMS alerts.
The bottom line is that you want a broker who can be trusted to handle your money, as well as your trades, so you can get on with studying the markets, listening to the latest financial news, and the general day to day business of Forex trading, without any worries.
Let’s look at some of the criteria in a little more detail. To help you in your search for the top Forex brokers.
Regulated equates to reputable – A reputable Forex broker will make sure they take all the necessary steps to ensure they receive a license from one of the main regulatory agencies operating in their home country. They may even go to the trouble of being regulated by more than one country. A broker who is licensed and regulated is much more secure. All their operations are overseen by an independent authority who will have your best interests in mind and be aiming to keep the business honest and transparent.
Where a broker is located can make a difference too, as some countries have a far better regulatory regime than others. One of the best locations is certainly the UK, as London is the center of the foreign exchange business. Up until the middle of the last century, as much as half of the world’s foreign exchange business was conducted using pounds sterling. Nowadays, it still plays a significant part, but the figure has dropped to 41%. However, that is still greater than that of the US which stands at only 19%. Choosing to trade with a reputable UK based or regulated broker makes good sense. The regulatory body in the UK is the FCA (Financial Conduct Authority), which is one of the world’s strictest regulatory bodies
Security of personal data is of paramount importance – Whether you’re buying goods from an online store, ordering and paying for a service, or trading on the Forex market, a certain amount of your personal information will be stored online. Imagine what could happen if that personal information fell into the wrong hands. Therefore, we’d advise you to put data security high in your list of priorities. And choose a broker that encrypts all data entered into their online forms. Preferably using industry standard SSL-encryption or better.
Competitive dealing spreads – Day trading strategies often become unsuccessful in the long run, especially if an account doesn’t have access to dealing spreads that are competitive. We should by now know what a spread is but let’s recap for those who may have forgotten. A spread is the difference between the bid price and the offer price for a particular currency pair. With major currencies and crosses the ideal spread should be no more than five pips. For minor crosses and exotic currencies it may be a little wider.
How much the brokerage service will cost you – Brokers don’t just charge for their services by way of the spread. Some also charge a commission or fee per transaction. These extra charges are sometimes calculated on a per transaction basis, or per volume dealt. There may also be a number of other additional charges, such as those for making a withdrawal or deposit. Check the small print of the broker’s website to ensure you have all the information.
Different types of orders – Most brokers offer their traders the more common types of order such as market, stop, and limit orders. Some also offer additional order types such as OCO (one-cancels-the-other) and trailing stops. These are more specialized and may not suit everyone, but if they fit in with your own trading plan, make sure the broker you choose supports them.
Currency pairs on offer – The more currency pairs available, the more opportunities for making a profit. So make sure the broker you’re considering offers all the pairs you might be interested in trading. You may also want a broker that offers access to precious metals such as gold and silver, as well as oil.
Minimum deposit requirement – If you’re only interested in opening a demo or practice account this won’t make a lot of difference. But should you decide you want to trade with real money, the initial deposit requirement will be important. You may be interested to learn that the more you deposit, the more features you’ll have access to and the tighter your dealing spreads will become.
Leverage – This relates to the position you can control, according to funds allocated to it. Some brokers offer a leverage rate of 500:1. Which means you are able to control a trading position of $50,000 with just $100 in your trading account. But we should also point out that using leverage to increase a trading position can result in larger gains, but can also result in larger losses. And it is important to use leverage wisely and not trade more than you can afford to lose.