The question of finding a legitimate broker is far from easy even for an experienced trader who has changed more than a few companies in the past.
What is the case then for those who only recently matured and are ready to make money on the foreign exchange market?
Forex brokers are many, and each has its own peculiarity. Therefore, we will talk about what you should be paying attention to first, and which factors are there only for advertising's sake. In general, all brokers are divided into two large categories: those that bring customers to liquidity providers and receive a percentage of the transactions as profit, and those that trade inside their own "playground". In the second case, the interests of the broker and the trader are in direct confrontation with each other, so if you are in the search of long and profitable trade, you must choose a company from the first category. Therefore, the first thing you need to pay attention to is the quality and reliability of the broker, as well as his reputation.
The level of reliability is the main indicator of trust or, on the contrary, no confidence in a broker. Those companies whose work does not cause any complaints are always in the top of forex brokers ratings. Even if certain claims do arise targeted at these companies, they are resolved quickly and to the point. No one is immune from interruptions in communication and hacker attacks on servers, but these are isolated cases if the broker doesn't have security technology from the 2000s. Brokers that regularly practice such activities, and furthermore, allow them, only interfere with the work of their clients, which means that they deliberately force them to lose some (or even all) of the profits. Executing orders that were interfered with by a mere single point translates to some very serious earnings, or rather savings, for the broker in the long run.
At the same time, a company that keeps track of its reputation will demandingly select its clients based on certain criteria. A random person from the street just cannot open an account with certified and legitimate brokers. Scanning the passport, bills, verification by cell phone number are all means that you should expect to go through with a decent broker. This is done for the sake of your security first and foremost.
Opportunities and conditions offered by a broker should always coincide with your expectations from Forex trading. Even the best forex broker is useless if the trading strategy does not work towards making any profits at all, and the question is not even in the choice of specific indicators or advisers, but for example in not choosing the correct type of order processing. There are a total of two options for processing orders at a specific price specified by the trader (Instant Execution), or at the current market price (Market Execution). In the first case, if the price at the time of execution has changed, the trader will receive a requote system as a response. On the other hand, the absence of slippage and the accuracy of the price of execution are ideal conditions for scalping. In the second case, the order will be executed at the current market price, and according to the situation on the market, the spread will be calculated, from which the broker will already receive his commission for services. That is, since Market Execution cannot be predicted in advance, you will never be entirely sure what part of your profits will have to be given away as commission. Therefore, it is necessary to carefully examine the proposed trading conditions. The broker's fee can sometimes reach an astounding 60%, especially if you remain inattentive with your choice of account type.
A reliable broker always has good technical support. In order to see how much time is required for an ordinary user to solve a problem, you can go to the company's website, find the "questions and answers" section or something similar to it, and check out how in-depth you can get. In the event that your question remains unanswered, make sure to give them a call and see how they handle answering your questions live. Another useful aspect you should be looking out for - any additional software you are given at your disposal. For example, if you spend most of your time away from a stationary computer, then an application for mobile devices will be very useful. Having the luxury of monitoring the execution of transactions from anywhere in the world eliminates the need to constantly monitor every tick.
User ratings can usually be found on specialized sites or even on regular Forex forums. These ratings are based on experiences given by users of a company with which they had worked previously. Obviously, this is one of the biggest things you want to be paying attention to. User ratings are great for telling the big picture, as they come directly from someone in the same position as you.
Last but not least, the history of the company - the longer it is, the more reliable. This is by no means saying that any broker with less than a year on the market will be a worse option than a broker operating for more than a decade, it may be the complete opposite, but experience always helps. Choosing to cooperate with a new company, which has not seen any action really, traders put themselves under unnecessary risk. Too little time has passed to make it clear whether this broker is prone to fraudulent activities, or if it is indeed a young, legitimate, high-quality broker looking to prove itself.
As experience shows, if a brokerage company exists on the market for a long time and has not yet been closed or merged with another one, then there is every reason to believe that this broker will not only be honest, but also have more than enough experience to lead you on your journey to establishing a new stable flow of income.
FX Bullion review written by investing professionals. Updated for 2022. Everything in one place: pros and cons of fees, trading platform, and investor protection.
FX Billion is an intermediary that offers new tools for online Forex trading. It is an important platform for efficient trading. FX Billion covers everything. You can trade CFDs in forex, stocks, indices and cryptocurrencies. 5 types of assets, minimum trading value and up to 1: 500.
With FX Billion you can trade Bitcoins, Ethereum, Litecoin, Ripple and Bitcoin Cash.
FX Billion is known for its fantastic analytics content. You can count up to 44. For your convenience, you can analyze financial markets with graphs and technical indicators.
FX Bullion Account Types
FX offers a range of accounts for billions of budgets and business opportunities. There are Basic, Advanced, Premium, Diamond and Islamic accounts with different access points and options.
Updated for 2022 XM broker review. Everything in one place: pros and cons. Fees, trading platform, and investor protection. Written by investing professionals.
While XM Group provides the entire suite of MetaTrader platforms and over 1000 tradeable instruments, the broker provides a mediocre experience across the board and struggles to stack up against industry leaders
Founded in 2009, XM Group is regulated in two tier-1 jurisdictions and one tier-2 jurisdiction, making it a almost safe broker (average-risk) for trading forex and CFDs.
Pricing at XM Group varies by account type. Overall, the broker is not a stand out for low-cost trading when compared to pricing leaders.
Is XM Group Safe?
XM Group is considered averge-risk, with an overall Trust Score of 78 out of 100. XM Group is not publicly-traded and does not operate a bank.
XM Group is authorised by the following tier-1 regulators: Australian Securities & Investment Commission (ASIC) and, via its parent company’s other brand, with the Financial Conduct Authority (FCA).
AvaTrade analytics covers deep capitalization, leverage, deposit withdrawals and trader analysis.
AvaTrade is a broker with 200,000 customers worldwide.
AvaTrade keeps things simple with their accounts by offering only two account types to most traders. A standard account and a demo account. Standard accounts can be opened with as little as $100 using credit cards or with $500 via wire transfer.
In addition to the two standard accounts, Muslim traders are accommodated by offering ‘swap free accounts’ that operate in accordance to the Islamic Sharia Principle of interest free trading.
As well, professional traders can open up MAM accounts to easily manage several accounts for their clients. These types of accounts include the following features:
– Ability to create multiple sub trading groups
– All MT4 order types such as stops, limits and close are available
– Expert Advisors (EAs) compatible
– Minimum lot at 0.01 lots
– Multiple allocation parameters
– Order placements for unlimited client accounts
– Trade order placements from a master account