What standards should the best forex brokers have? Are there many differences from the regular brokers in the market? After reading this, you will understand more about the best brokers and also how to choose for your own.
The best forex brokers have the reliable regulations
Regulation is an important part of forex market that shows the legalization and reputation of a broker. However, a broker having more licenses is not actually better than that which has just one regulation. Conversely, it makes more limits and requirements to the brokers with many regulations. A broker should need only one trusted license of the countries where it mainly works, which is enough. Following are the reliable regulations: ASIC, CySEC, FSA, CFTC, NFA, NFA. The truth is that brokers who have many licenses could only offer low leverage but high spread, fewer trading tools and high deposit required,… In short, one reliable license is enough to work.
The best forex brokers have the best customer service
The availability of the support team is a factor to evaluate the broker’s quality of service. Because most brokers don’t have local offices to help their clients, there is pending time to solve the problem of customers. Moreover, most clients are not good at English, they could not understand and work well with the support team.
These are the top supportive forex brokers: Exness, FxPro, FBS and XM. Especially Exness which has the best customer service, it provides the great support to their clients. It supports many languages with 24/7 online service, which is very convenient for clients. Exness also has strong IB network with many collaborators.
The best forex brokers have the lowest trading cost
We are talking about spread and commission of each forex broker in the market.
For spread, we will compare the EUR/USD spread as it is the most common currency pair:
Exness account’s spread is 1.1 pips.
XM and FXTM’s spreads are 1.7 pips.
Hotforex’s spread is 1.1 pips.
As we can see, the spreads of Exness, Hot Forex, and FBS are the lowest.
For commission, it is charged for ECN account because those brokers don’t charge commission for regular accounts. In fact, commission is the main income of ECN accounts since the spread of ECN is nearly zero.
Accordingly, Exness has the lowest commission when it only costs $2.5 for each lot, which is the lowest rate that no one can offer.
The best forex brokers have the highest leverage
High leverage is always attractive to most traders in the market. Nevertheless, US, British or Japanese brokers could not take advantage of this due to the special conditions of their countries, which makes them less competitive. For your consideration, these are some brokers with the best leverage:
- FBS: 1:1000
- Hotforex: 1:1000
- XM: 1:888
- Exness: 1:2000 when the account is over $1000, unlimited when the account is under $1000 with over 5 lots traded
The best forex brokers have the best account type
There are suitable accounts for both small traders and big ones. For small traders, there are some brokers such as Exness, FBS and Hotforex. While Exness minimum deposit and FBS’ minimum deposit is $1, Hotforex’s is $5.
You should try and trade with the top best forex brokers for a few months, then choose the most suitable of yours. There is not such the best forex broker because each one has their own advantage and disadvantage. These are the top forex brokers that are highly advised for traders:
– Exness: 9/10.
– HotForex: 8/10.
– XM: 8/10.
– FxPro: 7.5/10.