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3 COMPULSORY STANDARDS TO IDENTIFY THE BEST FOREX BROKERS FOR YOU

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All traders need to find out a suitable broker to trade with. The fact that they will be very confused to choose the best forex brokers in the world 2018 among several brokers in the world. Thus, I will give some typical standards to evaluate a broker. I had many years of experience in partnering up with many brokers and I came to my conclusion to suggest some compulsory standards: credibility, trading cost, and customer services. Let’s get started:

– Exness: 9/10

– HotForex: 8.5/10

– XM: 8/10

– FBS: 7.5/10

– FxPro: 7/10

CREDIBILITY

Safety is always the primary concern when they start to trade. And regulation is a vital tool to determine the credibility of a broker. Of course regulations are licensed by trusted financial organizations around the world. They decide the standards, merits, conditions of a broker to make sure traders are safely protected.

If a broker has a lot of regulations from various organizations, it can’t be good at all. To be more specific, their spread will be higher. Their leverage will be lower. Their commission will be higher. This leads to the fact that that broker will become less competitive when compared to others. So a good regulation from a reliable organization is enough to rely on. Here is a list of regulations of the 5 brokers with famous and trusted regulations I mentioned above

Broker names Regulations
Exness CySEC, FCA
HotForex CySEC, FSCA, FCA
XM CySEC, FCA, ASIC
FBS CySEC, IFSC
FxPro CySEC, FCA, DFSA, FSB

TRADING COST

When the traders are satisfied with regulations, the second concern is their trading cost. Trading cost can be calculated from many different factors, but the most important ones are spread, commission, and minimum deposit rate.

Spread is the difference between the Ask price and the Bid price. This is the cost that you have to pay for the brokers in trading. Pip is the unit measurement of spread. If the spread is high, consequently, the trading cost is also high. For this reason, all traders would prefer to trade with the lowest spread brokers. Here is the spread of the 5 best forex brokers:

  • Exness: 0.7 pip
  • Hotforex: 1.1 pip
  • FBS: 1.1 pip
  • XM: 1.7 pip
  • FxPro: 1.7 pip

There are two types of accounts which are common in traders: Regular account and ECN account. ECN account’s spread is roughly zero. Therefore, the brokers have to charge commission instead of spread, because spread and commission are the main income of brokers. Here are the commissions charged by the top 5 ECN brokers:

  • Exness: $2.5
  • Hotforex: $6
  • FBS: $6
  • XM: $6
  • FxPro: $45

In addition, the minimum deposit for opening an account is required. New traders don’t want to put too much money into a broker because 90% of traders will lose at the first time. Professional traders attach great importance to this factor when they want to attract new brokers. Here is the minimum deposit rate of those brokers:

  • Exness: $1
  • FBS: $1
  • Hotforex: $5
  • XM: $5
  • FxPro: $500

CUSTOMER SERVICES

In a complicated world of forex, traders will need a lot of supports from brokers. Many problems will arise when they jump in trading.  That’s reason why customer service is available to help 24/7. Moreover, it’s better if they have local offices in targeted countries to have prompt and face to face support.

As you know, many Asian traders are not good at English, so it’s useful for a broker to support their customers in different languages, especially in English.

In addition, they need to work with local banks in native countries to minimize the transferring and withdrawing cost of traders.

From what I mentioned above, I list the top 5 best forex brokers, in which some typical standards are taken into serious consideration.

  • Exness: 9/10
  • HotForex: 8.5/10
  • XM: 8/10
  • FBS: 7.5/10
  • FxPro: 7/10

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