How to select the best forex broker is a truly personal question and not one that can quickly be answered unless considering the specific trader’s personal needs.Everyone is looking for something slightly different when trying to settle on which forex broker to open an account with.
When it comes to selecting the best forex broker, just remember that everyone’s needs are slightly different and a one size fits all approach to reviewing them is never going to fully cut it. In saying that however, there are always a few key points that should be universally considered by traders when making that final choice. That’s where iReviewForexBrokers comes in! We have taken the key elements that all forex traders simply MUST consider when it comes to choosing the best broker, combined them through our proprietary formula and printed the results for the entire forex trading community to see and compare.
Just keep in mind that if your specific need isn’t considered within our review formula, then you aren’t going to get the results that you require. It would be like trying to push a square peg into a round hole. As this is the case, if you need anything further, please don’t hesitate to get in touch with us on social media using the buttons at the bottom of the page and we’ll do our best to come up with some answers that consider your specific needs.
The review process for forex brokers is actually very straightforward. As we are not affiliated with any single forex broker, we are able to give an accurate and most importantly unbiased forex broker reviews across the entire industry.
The way that we conduct our reviews is by breaking up the competition into categories and using our own proprietary formula to come up with a final ranking. Some of the categories or aspects that make up the best forex brokers are as follows:
– Security of funds
– Customer service
These of course are just a few of the categories considered. Keep reading to the bottom of the page where we delve into a little more detail around each of the points above.
Now, while we can’t delve into the technical aspects of how we review forex brokers, you can be assured that the formula that we use has been developed by experts on both the broker and most importantly, the trader side. It’s this mixture of forex broker and forex trader expertise that sets us apart from other review websites that are very focused on the opinions of brokers. This goes completely against what a forex broker review website is actually trying to achieve and by understanding this issue, we set ourselves apart.
The number one reason you should trade with a regulated forex broker is safety of deposited funds. When you are trading with a broker that is regulated in a reputable jurisdiction, you can be sure that your money is safe and secure. Regulators in Australia and the UK ensure that licensed brokers are solvent and are operating their business in a compliant and fair manner. Imagine depositing $10 000 of your hard earned money, trading it into $30 000 and then waking up morning to find your broker has declared bankruptcy.
Safety of funds doesn’t just cover issues of solvency though, unregulated brokers (and even poorly regulated ones) are renowned for making withdrawal processes difficult, blocking withdrawals, or cancelling profits. This is any trader’s worst nightmare: you have placed your trust in a broker, worked hard all year and then find they are just a polished scamming outfit setting out to rip people off.
Unregulated and poorly regulated brokers are also notorious for underhanded tactics and dirty tricks designed to stop you from being profitable in the first place. One example is delayed and rejected orders: unscrupulous brokers can delay the processing of your order in order to fill your trade at a worse price, or fill you at the original requested price, after the market has moved against you. Other brokers widen their spreads and manipulate their price feeds during times of high volatility. The aim here is to trigger clients stop losses that would otherwise have not been triggered, turning your otherwise winning trade into a loser. Becoming a profitable trader is hard enough without having your broker actively interfering in your trading activities. By carrying out ample research and due diligence when selecting a broker, and only trading with reputable brokers, regulated in regulated jurisdictions, you can avoid all these pitfalls and focus on what you are here to do: turn a profit.
Honed your skills on a free forex demo account and feel you are ready to make the transition to live trading with real money? There are a few things you should consider first.
Firstly, is the broker you are selecting a reputable brand? It is important to distinguish between a well known brand and a reputable brand here, as one does not necessarily equate to the other. Some of the most well known forex brokers actually have the worst reputations amongst the trading community. Reputable brokers are popular among the trading community and have a loyal niche following, they may not necessarily be the brands you see on TV or read about in the news, but they know they are doing and they do it well. On the other hand, if no one’s ever heard of a broker you’re looking at trading with, it’s probably a good idea to park your money somewhere else – no one wants to be a ginuea pig.
Is the broker you are looking at regulated and more importantly, regulated in a reputable jurisdiction? Or is it regulated in a known tax haven, jurisdiction with lax regulations or even unregulated? It is important to note that even if an unregulated broker has a good reputation amongst its clients, in the event something does go wrong, you will have very few avenues for recourse. We’ll discuss the importance of trading with a regulated broker in a little more detail further on.
Once you have found a reputable broker, regulated in a reputable jurisdiction such as the UK or Australia, there are a few more factors to consider. Does the broker offer competitive spreads and commission charges? Though a difference of a couple of points does not seem like much, these points add up to pips very quickly. If you are scalping you will need a low-spread true ECN broker, but even if you are trading a longer term strategy, do you really want to be paying more in fees and charges than you have to? The aim is to put your kids through college, not your broker’s!
Does the broker offer fee-free deposit and withdrawal options? You’d assume all brokers do, but many don’t and sometimes available options can depend on where you are located. For example a broker based in the UK might have fee free deposit and withdrawal options for residents of the UK, but if you live in Australia, you may have to withdraw via outdated and expensive options like Wire Deposit. Losing 5% at the point of deposit is not a great way to start off your forex trading career and withdrawal fees may deter you from making a withdrawal when you otherwise should.
What about support? Does the broker employ support staff 24/5 or only during local business hours? There is nothing worse than having to contact your broker regarding something urgent and finding there’s actually no one to talk to for half the day. Like deposit and withdrawal options, this is only usually a problem if you are trading with a broker based in another timezone. For example a broker based in the US may only offer support during US business hours, which really isn’t going to be that helpful for a trader based in Sydney, trading the Asian session.
The final thing you should consider is how much you are willing to invest on your initial deposit and what the brokers minimum is. Some brokers have very high minimum deposit requirements linked to their ECN accounts, we have seen brokers with ECN minimums upwards of $20 000 USD. The best ECN brokers will let you try out their services with as little as $500, and this is a much safer option for an initial deposit. Even if you are planning on investing $5 000 – $10 000 in the first week, it is a good idea to just deposit the minimum at first, do a few trades, make a withdrawal and get a feel for the broker’s product and service.