I bet all traders want to trade with the best brokers. But not all of them can choose the best one on their own. They have to evaluate a broker using several standards. After many years spending on trading with a lot of brokers, I have finalized my set of standards to three: credibility, trading cost, and customer service. Here are top 5 brokers from my set of standards:
- Exness reviews: 9/10
- HotForex reviews: 8.5/10
- XM reviews: 8/10
- FBS reviews: 7.5/10
- FxPro reviews: 7/10
CREDIBILITY
All traders have to know if the broker is trustworthy or not before they start trading with it. And regulation is always one of the best way to do it because regulations are always provided by trusted organisations. They will decide the standards, conditions and merits of brokers that have their regulations so that they can protect traders. However, having a lot of regulations will just drag the brokers down because it will affect their trading conditions. To be more specific, they will have to offer higher spread, higher commission rate but lower leverage. Therefore, I would say 1 or 2 regulations are the best for them. Below are the regulations that the best 5 brokers above chose.
|
Broker names |
Regulations |
|
Exness |
CySEC, FCA |
|
HotForex |
CySEC, FSCA, FCA |
|
XM |
CySEC, FCA, ASIC |
|
FBS |
CySEC, IFSC |
|
FxPro |
CySEC, FCA, DFSA, FSB |
TRADING COST
When you finish checking the reliability of a broker, the next step should be checking the brokers’ trading cost. You can calculate it using many different factors, but spread, commission rate and minimum deposit rate are the most common ones.
Spread can be identified as the difference between the Bid price and the Ask price. It is the most common cost that you will be charged when trading. It is mostly measured in pip. If the spread of a broker is high, it means the trading cost will be high too. That is why lowest spread broker is always favorite brokers of many traders. The spread of my top 5 brokers are as follows:
- Exness: 0.7 pip
- Hotforex: 1.1 pip
- FBS: 1.1 pip
- XM: 1.7 pip
- FxPro: 1.7 pip
Generally there are two types of account offered by brokers: Regular account and ECN account. The spread charged for ECN account is almost zero. Instead of spread, brokers will charge commission because their sources of income are commission and spread. The commission rate my top forex brokers on the list are charging:
- Exness: $2.5
- Hotforex: $6
- FBS: $6
- XM: $6
- FxPro: $45
The last factor, minimum deposit, is required for traders when they open new accounts. Traders who are new generally want to invest just very little money because they are aware of the fact that they are likely to lose it all. Many experienced traders are also interested in this because they want to test new brokers. Below are the minimum deposit that the top 5 brokers in my above list are requiring:
- Exness: $1
- FBS: $1
- Hotforex: $5
- XM: $5
- FxPro: $500
CUSTOMER SERVICES
It is a very important factor as traders always need plenty of help because I and many traders find that forex trading is a massively complicated thing. Therefore, brokers need to offer traders a very active customer service. Moreover, they should also offer face-to-face support with local offices in countries they are targeting. Moreover, Asian traders are usually pretty bad at English so it is better to offer them support in their local languages as well. Finally, brokers should cooperate with local banks to minimize the transfer and withdrawing fees for their traders. Here are the top 5 brokers that I think offer the best customer service:
- Exness: 9/10
- HotForex: 8.5/10
- XM: 8/10
- FBS: 7.5/10
- FxPro: 7/10
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