If you are new to the world of Forex trading or perhaps an experienced player who has hit a bit of a rough patch financially, you might find it helpful to reconsider your strategy in the game.
A big part of that strategy involves what broker you choose to get you into the game and equip you with the tools.
Choosing the right broker is not an exact science. While there are official ratings of brokers to consider how good their services are, what really matters is how well equipped they are to comply with your personal trading style. Before you take a look at the types of accounts on offer, bonuses, trading assets, platforms and so forth you need to find out it if the broker is licensed and regulated by a government agency. No matter how attractive the other features are, the lack of official regulation can make you a lot more vulnerable to being scammed.
Once you know the broker is legitimate, you can probe into its other features to find out how well it will stack up with your preferred financial strategies and devices. Here are our top candidates for you to consider as your ideal broker in Forex trading.
And now, onto our top three selections of the best Forex brokers you can trade with right now.
eToro is based in Limassol, Cyprus and was founded in 2007. It is licensed and regulated under the FCA, ASIC, CySEC and MiFID. It is currently home to world’s leading network in social trading. Traders are able to communicate and discuss different strategies and experiences.
The minimum initial deposit required to open an eToro account is $200 except in Middle Eastern countries where it is twice that amount. As ever with Forex brokers, it is important to consider the two main categories that make up the cost of trading: spreads and commissions. Apart from day traders all other traders also have to consider swap rates which refer to overnight charges. Fortunately, those rates are displayed on the official website. Maximum leverage stands at 1:30.
There is also a practice account available for the benefit of novice traders as well as a demo account with access to the social trading platform. However, trading profiles and activity is only accessible for real account holders.
Social networking has been majorly integrated into the online trading as of late and eToro has been quick to make good use of this rising trend by encouraging active communication between traders learn, invest and share knowledge of trading. The most successful traders are even featured on the landing page along with elementary details like their gain percentage, win ratio and number of copiers. This is no doubt, hugely beneficial for other traders.
A dynamic range of trading options are offered by eToro including assets in financial markets and commodities like precious metals and crude oil. Bitcoin has also been included as an option to trade in. However on eToro’s platform, it factors in as a stock rather than a currency and is traded as a CFD.
Founded in 2006, AvaTrade is one of the world’s leading Forex brokers with subsidiaries in Dublin, New York, Sydney, Tokyo, Milan and more. It is a regulated Forex broker under the Central Bank of Ireland, Australia’s ASIC, Japan’s FSC, the B.V.I Financial Services Commission and is licensed by the MiFID of the European Union.
Traders get just one account to trade with which requires a minimum initial deposit of $100. Leverage stands at 1:400. Beginning from 0.9 pips, both fixed and floating spreads are available by this broker, some of the most competent spreads anywhere.
AvaTrade is one of the pioneering brokers in implementing CFD trades and trading in digital currencies making Bitcoin accessible to retail traders. Their trading platform is user-friendly and available in English, French, Spanish, Portuguese, German, Italian, Chinese, Japanese, Taiwanese, Russian and Arabic.
The types of orders a trader can make on the AvaTrade platform include Entry Stops and Trailing Stops, Stop Loss orders, Limit orders, Entry Limits and Market orders. More advanced orders like IF Done orders and One Cancels Other orders can also be made.
Plus500UK is a broker based in the United Kingdom. Plus500UK Ltd authorized & regulated by the FCA (#509909). When it comes to spreads and commissions, this broker usually charges a floating spread. Luckily, Plus500 charges absolutely nothing on commissions.
Plus500 Disclaimer: 76.4% of retail CFD accounts lose money.
Plus500 offers a high quality CFD trading platform consisting of over 2000 instruments including around 50 ETFs, shares, indices, commodities and Forex pairs covering over 20 global markets. To activate an account requires a minimum initial deposit of $100.
This broker also offers some useful options for a trader’s risk management. Traders have the ability to manage their leverage by trading high, low or no leverage at all. They can also quote price levels for particular products as ‘Close at Profit’ or ‘Close at Loss’. It is a unique mechanism for risk management that is not offered by most other brokers. Also, you can activate price alerts to let you know when the market reaches a particular buy or sell price. Plus500 also offers a tool called trailing stop which is essentially seals profit for the trader and saving them the trouble of constantly monitoring a position and readjusting the stop price.
To get the hang of it, traders are entitled to using a demo account for an unlimited amount of time until they are ready for an active account. The trading platform itself is easily negotiable and available in 32 languages.
These are currently some of the most reputed and highly rated Forex brokers you can select right now, but of course, the really important thing to know about any of them is that they are compliant with your own personal tactics and strategies as a Forex trader.