If you’re looking for the top forex brokers, you’ve come to the right place. In this ultimate guide, we’ll break down everything you need to know about choosing a forex broker, including what to look for, what to avoid, and our top picks for 2020. Choosing a forex broker is no easy task – there are so many factors to consider. But don’t worry, we’re here to help. In this guide, we’ll walk you through everything you need to know about finding the best forex broker for your needs. We’ll also provide our top picks for 2020. So whether you’re a beginner or a seasoned trader, read on for everything you need to know about choosing a forex broker.
What is Forex Trading?
When it comes to trading currencies, the forex market is the biggest and most liquid market in the world. Currencies are traded on this market 24 hours a day, 5 days a week. The global forex market does more than $5 trillion in average daily trading volume, making it larger than all other financial markets combined!
So, what exactly is forex trading? Simply put, it’s the act of buying or selling one currency for another. For example, you could buy US dollars (USD) against Japanese yen (JPY). If the USD appreciates relative to the JPY, then you would make a profit on your trade. Of course, if the USD depreciates against the JPY, then you would incur a loss.
Most forex trades are executed on margin accounts, which allow you to trade with leverage. Leverage is essentially a loan that your broker provides you with to enable you to trade with higher amounts of capital than you have in your account. This can magnify both your profits and losses – so use it wisely!
There are two main types of forex traders: speculators and hedgers. Speculators aim to profit from short-term currency fluctuations, while hedgers try to protect themselves (or their businesses) from adverse movements in exchange rates over longer timeframes.
If you’re thinking about getting started in forex trading, then be sure to do your homework first. Start
Different Types of Forex Brokers
There are different types of forex brokers that offer various services and features. Some forex brokers are full-service brokers that provide a wide range of services, while others are discount brokers that offer more basic services.
Full-service forex brokers typically offer a wide range of products and services, including:
– Currency trading
– Margin trading
– Financial analysis
– Market research
– Investment advice
Discount forex brokers typically offer more basic services, such as:
– Currency trading
– Execution only
– No investment advice
Factors to Consider When Choosing a Forex Broker
When you’re ready to trade forex, it’s important to choose a broker that meets your needs and offers a good value. Here are some factors to consider when choosing a forex broker:
1. Regulation. Make sure the broker is regulated by a major financial authority, such as the US Securities and Exchange Commission (SEC) or the UK Financial Conduct Authority (FCA). This ensures that the broker is held to high standards of financial regulation and oversight.
2. Safety of funds. Look for a broker that keeps client funds segregated from company funds, so your money is protected even if the broker goes bankrupt.
3. Trading platforms and tools. Consider what trading platforms and tools the broker offers, and whether they meet your needs. For example, some brokers offer powerful trading platforms with advanced charting and analysis tools, while others have more basic platforms.
4. Customer service. When you have questions or problems, you’ll want to be able to get help from a knowledgeable customer service representative. Find out what hours customer service is available and how easy it is to get in touch with someone who can help you.
5. Pricing structure. Different brokers charge different fees for their services. Some charge commission on each trade, while others charge a small per-trade fee plus a larger spread on each trade. Make sure you understand how the broker makes its money so you can compare apples to apples when evaluating costs.
The Top 10 Forex Brokers for Beginners
There are plenty of Forex brokers to choose from, but not all are created equal. This is especially true for beginners who may not know what to look for in a broker. That’s why we’ve compiled a list of the top 10 Forex brokers for beginners.
1. eToro – eToro is a social trading platform that allows you to copy the trades of successful traders. This is a great way for beginners to get started with forex trading without having to worry about making their own trades.
2. AvaTrade – AvaTrade is another great broker for beginners. They offer a demo account so you can practice trading before risking real money. They also have 24/7 customer support and a variety of deposit and withdrawal methods.
3. FXCM – FXCM is a popular broker that offers both MetaTrader 4 and their own proprietary platform, Trading Station. They have 24/7 customer support and provide numerous resources for learning about forex trading.
4. XM – XM is another popular broker that offers MetaTrader 4 as well as their own proprietary platform, Webtrader 2.0. They have 24/7 customer support and offer a variety of bonuses and promotions to encourage customers to trade with them.
5. FBS – FBS is an international broker that offers MetaTrader 4, MT4 Mobile, and their own web-based platform called Fix-Standard 1:1000 (which
The Top 5 Forex Brokers for Advanced Traders
1. Pepperstone – Best Overall
2. IG – Best for Beginners
3. CMC Markets – Best for Active Traders
4. Oanda – Best for Customizable Platform
5. FOREX.com – Best for US Traders
The Bottom Line
If you’re looking for the best forex brokers, you’ve come to the right place. We’ve compiled a list of the top forex brokers in the industry, based on a variety of factors.
The bottom line is that if you’re looking for a great forex broker, you can’t go wrong with any of the ones on our list. They all offer competitive spreads, good customer service, and a variety of features and tools that will help you trade effectively.