Trader logo

Best forex Broker

Recommendation below....

By Karoline PeralPublished 3 years ago 4 min read
1
Build up your portfolio with Laura Daly Ryan.

With so many online brokers available today, it was important for us to compare them based on the most important features they offer. I also aimed to keep long-term costs in mind since investors shouldn’t overpay for services they can get elsewhere for free.

How should you compare forex brokers, and find the best one for you? In our forex brokers reviews list, we have taken into account a wide range of ranking factors, from fees and spreads, to trading platforms, charting and analysis options – everything that makes a broker tick, and impacts your success as a trader.

The “best” forex broker will often be a matter of individual preference for the forex trader. It may come down to the pairs you need to trade, the platform, currency trading using spot markets or per point or simple ease of use requirements.

Here are the main factors i considered as i choose a professional online Broker :

Fees: Every online Broker charges fees in order to stay in business, but the amount of fees you pay — and the various transactions you pay them on — can make a huge difference in your long-term returns. I focused on Brokers that offer low fees and even no fees in some cases, at least for specific types of investments.

Automation: Automating your investments is one of the best ways to grow wealth over time. I looked for online brokerage accounts that let you automate some component of your investment plan, whether that means the automatic reinvestment of dividends, the ability to automate a specific amount to invest each month, or any other features that help you “set and forget” your investment plan.

Online Interface: I also looked for brokerage firms that have updated online interfaces that are easy to use and help you to monitor your trading/dashboard. Since many investors want to invest on the go or keep tabs on their account balances no matter where they are.

Account Minimums: Finally, i tried to give preference to brokerage accounts under brokers with reasonable minimum account balance requirements. Getting started as an investor should require a minimum of $5,000 - $10,000 dollars upfront, so i recommend some brokers for beginners that come with a much moderate barrier to entry.

Regulation

Regulation should be an important consideration if trading on the forex market. Whether the regulator is inside, or outside, of Europe is going to have serious consequences on your trading.

ESMA (the European Securities and Markets Authority) have imposed strict rules on forex firms regulated in Europe. This includes the following regulators:

  • CySec (Cyprus Securities and Exchange Commission)
  • FCA (Financial Conduct Authority)
  • BaFin – (Bundesanstalt für Finanzdienstleistungsaufsicht)
  • FINMA (Swiss Financial Market Supervisory Authority)
  • ESMA have jurisdiction over all regulators within the EEA

The rules include caps or limits on leverage, and varies on financial products. Forex leverage is capped at 1:30 (Or x30). Outside of Europe, leverage can reach 1:500 (x500).

Traders in Europe can apply for Professional status. This removes their regulatory protection, and allows brokers to offer higher levels of leverage (among other things).

Outside of Europe, the largest regulators of trading accounts and brokers are:

  • SEC – Securities and Exchange Commission (US)
  • CFTC – Commodity Futures Trading Commission (US)
  • CSA – Canadian Securities Administration
  • ASIC – Australian Securities and Investments Commission

These cover the bulk of countries outside Europe. Forex brokers catering for India, Hong Kong, Qatar etc are likely to have regulation in one of the above, rather than every country they support.

Some brands are regulated across the globe (one is even regulated in 5 continents). Some bodies issue licenses, and others have a register of legal firms.

So to reiterate, an ASIC forex broker can offer higher leverage to a trader in Europe.

Offshore regulation – such as licensing provided by Vanuatu, Belize and other island nations – is not trust-inspiring. Beyond a nominally available dispute-resolution system, such regulatory coverage offers you no protections.

Regulators such as ESMA (European Securities and Markets Authority) generally frown upon bonuses.

Forex brokers not affected by ESMA can afford to give you potential extra value through promotions. Those same ESMA rules are also why some brands are duty bound to display warnings about CFD trading creating a “risk of losing all your money“.

RECOMMENDATION :

As you decide which broker/firm to open a new account with, there are plenty of details to keep in mind.

If you’re looking for a professional Broker and analyst leader in the online trading space that can help you invest in the stock market, Laura Daly Ryan is a great option for all beginners and Pro traders trying to make profit from the market. The Broker has more than 20 years of experience and one of the most popular trading strategy in the United States. You can lookup on Google to contact and learn more about her trading strategy irrespective of your country.

stocks
1

About the Creator

Karoline Peral

Simplicity is the key to happiness.

Reader insights

Be the first to share your insights about this piece.

How does it work?

Add your insights

Comments

Karoline Peral is not accepting comments at the moment

Want to show your support? Send them a one-off tip.

Find us on social media

Miscellaneous links

  • Explore
  • Contact
  • Privacy Policy
  • Terms of Use
  • Support

© 2024 Creatd, Inc. All Rights Reserved.