Which Forex Broker Fits The Bill?

Forex trading carries a fair amount of investment risk, just like equities, bonds and commodities investing. However, with the right broker, you can eliminate most of the headaches associated with forex trading, especially for beginners.

Forex trading can seem risky for inexperienced traders because of the rapid fashion in which trades are executed and the high leverages that could see you lose more than your initial investment.

Working with an excellent broker would not only help you minimize forex investing risks, but also maximum returns.

Which broker fits the bill?

The broker you work with can play a major role in determining whether you succeed or fail in your forex investing. As such, you should select your broker carefully. Keep in mind that there is a wide variety of forex brokers and they appeal to different groups of traders. Some would be great for pro traders while some would be great for beginners.

If you are selecting forex brokers, some of the factors you would want to consider include the trading tools the broker offers, their leverage, a number of currencies pairs available for trading and costs of trading.

As for cost, forex brokers can charge commissions or bake their charges in spreads, while others combine spread and commission.

Industry regulation

Given the ongoing global crackdown on forex and binary options brokers, something equally important to take into consideration is whether or not the broker is regulated.

Demo account

If you’re new to forex trading, you should choose a broker that offers a trial or demo account. Many brokers offer demo accounts for new traders, allowing them to test the waters before they start investing real money. In addition to demo accounts, other forex brokers offer welcome and no-deposit bonus to new clients, allowing them to trade with real money without risking their own funds until they are comfortable to put in their money.

While some brokers restrict withdrawal of the bonus they deposit in your new account once verified by phone, almost all of them allow you to withdraw the profits you make trading with their bonus money. However, withdrawal usually requires that you make a certain number of trades or reach a certain level of earnings before you can cash out your profits.

Best brokers for pro traders and beginners

The forex brokers below tend to stand out from their peers because they offer a combination of large currency selection, strong trading platform, reasonable costs and education and support.

TD Ameritrade: This is one of the prominent forex brokers. It charges commissions and its spread markups are dependent on the currencies being traded. The minimum account requirement is $2,000 and maximum leverage is 50:1. You can trade more than 100 currency pairs on TD Ameritrade.

Oanda: This is another prominent forex broker. The broker’s costs to traders are in the spread markup and it boasts one of the lowest spreads. There are no minimum account requirements and you can trade more than 90 currency pairs on the platform.

FXCM: The forex broker offers three accounts type, with the minimum requiring $50 initial deposit. Beginners on the platform pay trading costs through commissions and spread markup depending on the accounts they operate. The leverage on FXCM is 50:1 and you can access up to 39 currency pairs to trade.

Forex.com: The minimum account requirement on Forex.com is $250, you can trade 52 currency pairs and the costs are in the form of spread markups.

In Latin America where forex trading is just beginning to take roots, brokers are initially concerning themselves with trader education so that they prepare investor for what they can expect in trading currencies. In the area of providing forex trading platform that combines a significant amount of the educational offers, Forex.com and FXCM stand out from the crowd.