Choosing the best Forex broker means a lot for your trading. I can’t say it is the most important thing, but it is definitely one of them. Your broker should provide you with the specific trading platform tools and maybe even analytics to make your Forex trading comfortable and profitable.
However, some brokers charge cosmic commissions and fees, some of them have too strict rules, some of them appear to be scam and steal your money.
I hope that my experience of choosing the best Forex broker will be useful for you. In the end, I’ll tell you my personal rating of online Forex brokers for day-trading.
Let’s begin with the most important factors to pay attention to while choosing a broker.
Note that Forex brokers that don’t have licenses are likely to be scammers. No one will ensure your funds, so they can just get the money and disappear. I recommend you working only with the regulated companies. You can find the information regarding that on their official websites, or ask brokers support whether they have a license. Many people say that a good broker needs to have the US or the UK license, but I personally don’t have such limits and work with both strictly regulated brokers and offshore ones. Traders often assume offshore brokers scam, but in fact, not all of them are intend to cheat you. I’ll tell you later what companies you can trust.
Company history and its policies
See how long the company is on the market already. If you start trading with a broker which is more than a couple of years old, chances for being scammed will be minimal. Scams usually don’t exist for a long time and they crash in 1-3 years. Check the terms and conditions of working with clients. They will show whether every client is valuable for them. If they have an office in your country, it is even better. But the last thing is not critical, it’s just for comfortability of your trading.
Range of assets offered
Even taking into account the fact that the majority of Forex traders work with majors, some people prefer trading exotic currency pairs or cryptocurrencies. You should check this to avoid situations when you choose a broker, open an account, and then find out that they don’t have the pair you need.
Various Forex trading platforms have different benefits. For me, the best one is MT4. It is classic, easy to understand, comfortable to work with, has many useful tools including free ones. Though, it is the matter of habit, so you can try several trading platforms such as MT5, Ninja Trader or ZuluTrade.
Forex research means
Check whether the broker of your choice offers ready-made analysis, forecasts and market overview. They can also provide you with research tools for performing fundamental and technical analysis. These things are essential for live trading.
Forex spreads and commissions
They can affect the currency trading greatly. Check if these conditions fit your trading plan. Calculate the costs you’ll need to spend for each trade. They should be low but be careful with zero spreads or no commissions, look for hidden fees and remember that companies that offer completely free trading are likely to be scams.
It depends on a broker, trading platform, and the quality of your Internet connection. Consequently, broker’s executions can depend on their liquidity provider. I advise you to choose a company that has some liquidity providers, as those that have none may be appear to be scams. Read Forex broker reviews and their official websites to make sure if they are not complete market makers and offer real quotes.
Though I’ve placed it near the end of my list, this point is the same important as the previous ones. Support team can help you with issues and make different ambiguous situations clear. For example, I faced such a situation some time before. I woke up and noticed that my stop losses didn’t work, and the trade ate a part of my funds. I contacted the support of my broker hoping that they would return my money back, as I had set stop losses for sure. They confessed that there was a problem with the server and I got my money back. But I’ve met lots of stories when people weren’t able to return funds due to the poor customer support.
Newbies have to find a Forex broker for both education and earning. That’s why it would be better to pick up one that will make the learning process easier and more understandable. The Forex market is not a piece of cake, but with the right attitude and set of resources trading Forex pairs and becoming the professional would be possible. Availability of social trading is a great plus.
These were the main points you have to bear in mind while choosing a broker for your needs.
As I’ve promised, here is my personal list of the best brokers that are very popular here in Malaysia.
I trade with them for more than 2 years. They are regulated and reliable. This company works on the market for already 5 years and I never had serious issues while trading with JustForex. Of course, there may be slippages sometimes, but the main causes for them are the Internet connection and issues from their liquidity providers, as I was told by the support team. They offered me an Islamic account after I confirmed my personal information.
I had a trading account with this broker some time before. Their conditions are similar to JustForex ones. Unfortunately, they had some license problems recently and told that they will limit their functioning in Malaysia. Anyway, if you’re not from my country, it wouldn’t be your headache.
This one is similar to others too, they offer nearly the same conditions including 1:3000 leverage and Islamic accounts. You can find reviews on the Internet about them and learn more about this broker, as I haven’t traded live, only demo.
Anyway, no matter which broker will you choose, I recommend you being careful on the market, always sticking to the trading plan, following the rules. I’m sure you’ll be profitable!