The Ultimate Forex Brokers Comparison Guide!

Top 5 Forex Brokers

*Per T&Cs

There is a long list of forex brokers, all of whom have different priorities and varying approaches that make online trading possible. If you need to compare forex brokers to find out which one is best for you, there are several things that you will need to know in advance. As there are many factors that are relevant when comparing forex brokers, we will look in this forex brokers comparison guide at the various aspects that should be considered when making your final choice.

Why is Forex Broker Comparison a Must For Any Trader?

You may wonder why it is so important to check out the various types of forex brokers, classify them in groups and then compare them – well, a forex broker comparison is essential for both beginners and experienced traders alike as comparison makes choosing a broker much more simple. While the internet can simplify our lives, allowing us to take part in all kinds of activities including trading, it can also cause all kinds of problems. Firstly, not all brokers are safe and secure and it is very possible to be scammed by an online broker, even if you are a talented and experienced investor. However, avoiding issues like scams and criminal behaviour in financial trading is not the only reason why you should take the time to carry out a Forex brokers comparison. Here are some of the other reasons:

Top Forex Brokers List
Rating Broker Bonus Validity Regulation More Information
9.9/10 XTrade 60% 30 days CySEC Read more about Xtrade
9.7/10 XM 100% 30 days CySEC Read more about XM
9.6/10 HotForex 100% 1 year CySEC Read more about HotForex
9.5/10 ITRADER Up to $30K per T&Cs 1 year CySEC Read more about ITRADER
9.5/10 Plus500 Up to $10,000 per T&Cs 1 year CySEC Read more about Plus500
9.4/10 HYCM $5000 60 days FCA Read more about HY Markets
9.4/10 FBS $123 Free 1 year IFSC Read more about FBS
9.3/10 Avatrade 40% 1 year MiFID Read more about Avatrade
9.2/10 ETX Capital $20 No Deposit 1 year FCA UK Read more about ETX Capital
9.2/10 Instaforex 250% 1 year FFMS Read more about Instaforex
9/10 easyMarkets $2000 1 year CySEC Read more about easyMarkets
8.8/10 eToro Up to $1000 1 year CySEC, FCA Read more about eToro
8.8/10 Trade.com N/A 1 year CySEC Read more about Trade.com
8.8/10 CM Trading 20% 1 year FSB Read more about CM Trading
5/10 UFX $50 FREE 1 year FCA Read more about UFX

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Forex Brokers Comparison By Type

The first step in evaluating the list of forex brokers is to ensure that you are aware of the various types of brokers available to you. Here are some of the major types of financial trading platform you will find:

XM Forex Broker

– Market maker
Also known as a dealing desk, this is the most popular and preferred broker type. A dealing desk Forex website is called a market maker because it has its own fixed spreads. This broker is also able to go above and beyond the general market price of a specific underlying asset. Another characteristic of these brokers is that they always perform the other side of the trader’s purchase in order to make a profit and make the financial transaction possible. Meanwhile, the market maker avoids risk by standing on both sides of the market before a trade is made. This is how the dealing desk actually makes its own profits to survive and exist.

– No dealing desk
Conversely, a no dealing desk Forex broker is one which always provides the most beneficial quotes, gained from numerous other quote providers. This is how the liquidity for the Forex broker becomes possible. The no dealing desk broker gets the best prices from among these providers, and although the spreads are usually low, they are never fixed and in the case of volatility they can often change their value suddenly according to the specific situation.

This abbreviation stands for Electronic Communication Network, a type of Forex broker which shows the current trades that other traders are executing on the site at the present time. Such a broker might appeal to a beginner, who is tired of learning theoretical facts about financial trading and who prefers to observe the practical actions of really experienced traders. Unfortunately, though, ECN is not the preferred choice of the biggest players in the financial market, who usually prefer either market makers or the next type of a Forex broker, an STP.

An STP is a Straight Through Processing broker – another mode of financial trading. Transactions are always computerised, which means that they are never postponed or delayed and mistakes are impossible. The best thing about an STP broker is that it comes with precise calculations and transactions. Commonly, an STP Forex broker will have the interbank market processing these transactions with no broker intervention involved.

Last, but not least, Multilateral Trading Facilities might be also called a type of a broker. This type of exchange activity however is not regulated at all – buyers and sellers work as a team, so that everybody can eventually make their own profit. What is also interesting about MTF is that the broker stands behind its own guarantees as to the best price, with the most beneficial spreads and secure transactions.

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What Else Matters for Forex Brokers Comparison?

XTrade Forex BrokerXTrade Forex Broker

Besides knowing the types of brokers available, it is also important to know how to judge them and to tell the difference between the bad and the good ones. Here, our Forex broker comparison guide helps you to determine the most important factors distinguishing brokers from each other.

– Origin and history
This category of distinguishing brokers is important for several reasons. Of course, the origin and the history of a broker helps us to see how reputable the company that owns the platform is, as well as how this broker has operated over the years and to determine whether it is experienced enough to offers us the best services. Meanwhile, the country where the broker is located matters due to restrictions placed on some traders as citizens of certain countries cannot use brokers from other specific nations.

– The platforms the brokers use
This is the factor that most experienced traders usually begin with. Whether the trader is looking for a browser based website, or he wants something more professional like software to install on his PC, the broker should must always be competitive and innovative, otherwise, they will lose their intended audience. Trading software today is also available for use on mobile devices, and it is likely that soon, we will all be able to trade on the go through simplified mobile trading apps.

– Features they provide
forex brokers comparisonForex broker comparison usually depends on the instruments available for trading, the asset types on offer and features for better financial trading (like signals and personal account managers, for example) that are provided, and some features really make a broker’s website stand out from the others. Bonuses may also be listed here as features, making a broker different or better than its competitors, and many traders compare and select brokers depending on which bonuses they supply. We suggest that you do not use the bonuses on offer as your main factor for comparing brokers. Some trading sites may offer excellent special promotions and offers but are otherwise best avoided.

Making a comparison of the various forex brokers available is absolutely essential for all traders. It helps traders to estimate where they currently are in their trading experience and to find out where they would like to be. Although the list of forex brokers is quite big, you have plenty of time to find out which is best for you. Good luck!

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