If you don’t know how to choose the best forex broker in the market, then you are in the right place. It is said that the best brokers should focus on their clients, trading cost, conditions. They should not consider the short-term profit or pay IB more money to get traders. This article will be showing some common standards to choose the best forex brokers.
They should have the best trading conditions:
Quotes:
When we trade forex, the most popular thing we trade is currency pairs. Currencies are quoted in pairs. For instance, the currency pair EUR/USD is the Euro vs. U.S. dollar pair. When we have the quote of this currency pair, we can determine the value of the Euro by comparing it to the value of the USD.
Base currency indicates the first currency in the pair, and quote currency indicates the second. So the quote shows you how many units you will need in quote currency to buy the quote currency.
For example, let’s look at the most popular currency pair in the forex market. Now the quote is EUR/USD = 1.1456. If you want to buy this currency pair, it means that you have to pay amount of approximately 1.14 USD to buy 1 Euro.
Each broker gets the quotes from different liquidity providers and obviously their quotes will be varied. So us traders should choose the brokers who can offer the best quotes.
Top 3 brokers with the best quotes:
- Exness
- XM
- FBS
Another aspect of quotes is requote. What is requote? Requote is a pop-up message on the trading screen. The message tells you that the market price has changed so your original ordered price is now different from the market price. Next, you will have to enter a new price within 3 to 5 seconds or your transaction is cancelled.
It often takes you awhile to get used to requotes and sometimes, they can even result in significant losses for traders due to the changes in the market. However, requote is considered to be normal in this market, mainly for experienced traders. Beginners or less experienced traders, meanwhile, understandably have troubles with requotes because they are not used to the constant changes in the market. The only way to get familiar with this is practicing trading.
Leverage:
Leverage is considered a trading strategy of using the money you borrow to multiply the profit that you may gain after a transaction. Leverage is the tool of a broker that is loved by most traders worldwide. A broker’s leverage should be high. I know some traders think that high leverage is riskier. Actually, there are the account’s leverage of a broker and the trading leverage. Anh we are talking about the account’s leverage, which the higher the better. Leverage is not the deciding factor for your success in trading. It is just a tool that help you increase the profit. The real deciding factors are your trading tactics, knowledge, and discipline. You can gain those all by practicing.
Brokers with the best leverage:
- Exness: Unlimited
- HotForex: 1:1000
- FBS: 1:1000
Trading platforms:
Currently, MT4 and MT5 are the two most popular trading platforms in the forex market. However, they are not perfect because they aren’t compatible with some operation systems such as Windows Vista and Windows XP, as well as some smart phones. That’s why some brokers have started to build their own trading platforms which can work with any operation system and any devices.
In conclusion, the top 3 brokers with the best trading conditions are:
- Exness.com
- HotForex.com
- FBS.com
Should the best forex brokers be dealing desk or non-dealing desk?
There are two types of forex brokers, which are dealing desk (or called market maker) and non-dealing desk (STP or ECN). The first type give you wide spreads (high) while the other gives you tight spreads (low). It's hard to judge which one is better. It's up to your trading strategies. We all think Dealing desk will trade against traders while Non-dealing desk brokers are the opposite. That's not true at all. When it comes to big Dealing desk brokers, they let the system operate automatically. So, in term of large scale, Dealing desk and Non-dealing desk brokers are not much of a different.
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