Which are the best forex brokers to choose? How to evaluate a broker? It is not about earning more profits in short-term or pay IB more money to get traders. It is to serve and focus on customers, bring value to them with high service quality and great conditions. This article will be showing some common criterias for the best forex brokers 2018.
The regulations
The first important thing to do when you choose a broker is to check their regulation. A broker with trusted license is often reliable and even, the license could indicate the capability and reputation of this broker. Some traders think the more licenses a broker has, the better it is but in fact, it is not true. A good broker only needs a regulation of the country that it mainly focuses on, which is enough. Following are some trusted regulations: ASIC, CySEC, FSA, CFTC, NFA, NFA. The disadvantage of having many licenses is that the broker will be restricted and has to follow many rules. In brief, one reliable regulation is enough.
The support team
Supporting is the key to improve the reputation and quality of a broker. Because customers always need instant help with timely response, it will be inconvenient if a broker could not afford it or bring the care so late. Moreover, the difference in languages makes it more difficult to communicate and solve the problem for traders.
The best forex brokers always bring the best care for their clients, such as Exness, FxPro, FBS and XM (the best forex brokers in Thailand). Among these brokers, Exness is exceptionally the best. It has great support team with instant and strong help. It provides a lot of languages with 24/7 online service. It also has strong IB network and many local offices.
The trading cost
There are spread and commission, which are counted into the cost of transaction.
Spread is the main income of regular accounts, while commission is mostly charge in ECN accounts. Because the most popular currency pair is EUR/USD, it is convenient to see this pair at some brokers as below:
Exness’ spread is 1.1 pips.
XM and FXTM’s spreads are 1.7 pips.
Hotforex’s spread is 1.1 pips.
Accordingly, the spreads of Exness, Hot Forex, and FBS are the lowest.
Commision, as mentioned above, is the main income of ECN accounts because the spread in this case is nearly zero. Among the brokers in the market, the commission of Exness is the lowest, which is only $2.5 for each lot. No other brokers can compete to Exness in this term.
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The leverage
A broker with high leverage always attracts many traders. However, brokers in America, Japan and England could not offer the high leverage because of the regulations in their countries. This is a reason which makes them not attractive to the traders. Below are the leverage of some forex brokers, which is the top highest:
- FBS: 1:1000
- Hotforex: 1:1000
- XM: 1:888
- Exness has the special leverage. It is up to unlimited for the account with less than $1000 and more than 5 lots traded. It is 1:2000 for the account with more than $1000.
The account
There are some best forex brokers with low minimum deposit requirements such as Exness, FBS and Hotforex, which are all suitable for small traders:
– Exness minimum deposit is $1.
– FBS minimum deposit is $1.
– Hotforex minimum deposit is $5.
On the other hand, big brokers are mostly for big traders as they often require a huge amount of deposit. For example, FXCM minimum deposit required is $2000, while Forex.com’ is $500.
Below are the top best forex brokers for your reference:
– Exness: 9/10.
– HotForex: 8/10.
– XM: 8/10.
– FxPro: 7.5/10.