The Forex exchange market is worth over USD5 trillion, and with this kind of money, it is one of the most interesting markets for brokers and traders alike. But what are Forex trading brokers and how are they regulated? Well, the currencies market is not a central market, with a single regulatory authority, such as a stock exchange market. In order to trade currencies, traders need to use a broker.
This is an intermediary between the buyer and the seller. But the broker is not just a simple intermediary. It doesn’t just facilitate buying and selling, but it offers a wide variety of tools for the trader – charts, analysis, news feeds, tutorials etc.
Best Forex Brokers
Different Forex Brokers offer different trading platforms. This is why it is important co check out their offers before you sign up with it. We prepared you the list of our recommended Forex brokers that we advise you to sign up with!
Forex Brokers: Rules
If we look at the list of Forex brokers, we will realize that this is not a short one. With the amounts traded each day, it was easy to assume that the number of brokers is quite big. So, what should we look for when choosing a broker? First of all, regulation: the reputable brokers are registered with regulating authorities from countries where they operate or they are headquartered: Financial Service Authority in the UK, US Commodity Futures Trading Commission etc.
Now, these regulatory authorities are not necessarily a guarantee for the broker, as it may register in a country that is very loose in regulating this field. So, you need to know where they are located and determine how strict the jurisdiction really is.
Brokers and Platforms
Once you did the research in terms of legitimacy of the business, you should look at the trading platform – how easy it is to use, how many tools it offers, how quickly you can put an order or stop a trade. If you need to look for a tab for a few minutes within a platform, then you don’t need to use it.
Trading sometimes does not have minutes go lose. This is why you may want to use a demo account first and see how the platform works if it is a user-friendly interface and if it has the tools you need. Forex Brokers list is a long one and each little detail moves one up or another down the top of best brokers.
Another point of interest is the minimum deposit brokers ask when you open a live account. And some focus on little deposits of up to USD 5, while others go big, with USD 1,000 or above. These mini accounts are designed exactly for traders who are at the beginning of their activity and are more of a teaching method than anything else. Best Forex brokers don’t always impose a big limit on these mini accounts.
Another important point is payment – credit cards, PayPal and such help traders start trading immediately. However, when it comes to withdrawing money, you need to know that a verification of identity is necessary in most cases. And talking about money, you should go to those brokers who are transparent and present the fees and taxes without any grey areas.
With CFD brokers one more thing is important: the technology. Some of them would use their own proprietary platform, while others focus on general platforms, developed by independent programmers, and used by a wide range of members of Forex community.
Forex Brokers Tutorials
MT 4 or 5 platforms are the most common with both brokers and traders and are quite advanced in terms of capabilities. And lastly, if you decide to enter this market, watch tutorials, read the financial news and take part in webinars. The more information you have, the better results you will get.