Every beginner who first trade in the forex market all wants to make sure that they can start with the best broker. With two- year trade experience I have had when trading with various forex brokers, I think it would be helpful for beginner traders if I share with you my acquaintance. In my point of view, it is hard to say which one is the best, but I can make a comparison between different criteria so you could make a decision on the one will be the most suitable for your trading plan and needs.
In my opinion, the best forex brokers in 2018 would deliver to their traders good trading conditions, best tools, and great support. Additionally, their reputation and security should also be considered before you do the first trading. I will choose some giants in the Asian forex market to make the comparison namely Exness, FxPro, Hot Forex, XM and FBS etc.
- Low Spread
The best forex brokers in 2018 usually don’t charge commission on the regular account, so the spread is their main income. Spread is defined as the difference between the ask price and the purchasing price. Traders, of course, love the best forex brokers in 2018 who offer low spread. Exness, FBS or Hot Forex are the ones who offer low spread which is around 1.1 pip for the most common currency pair- EUR/USD.
- Low Commission
Besides from regular account, we also have ECN account, it is an account for professional and big traders. Since the spread for ECN account is almost none, therefore commission is usually charged by most of the brokers. The lowest commission charge is Exness, who only charge 2.5 USD for each lot traded.
- Minimum Deposit
It will be so risky for a new trader to deposit a large amount of money when starting. However, this risk does not appear to experienced traders, so they usually partner with big brokers such as FXCM or Forex.com who require a lot of minimum deposit, $2000 and $500 orderly. In contrast, smaller traders often choose to work with Exness and FBS (at least $1 deposit) or Hot Forex ($5) because they only demand a little for the minimum deposit.
- High Leverage
Generally speaking, Western brokers in countries like the United States, United Kingdom or Japan could not offer the traders low leverage because they are prohibited by the government law. Meanwhile, Asian brokers are not controlled by this law, hence they could offer their customers very high leverage. Henceforth, Asian traders really benefit a lot more than Western ones when we talking about leverage. Here are some examples:
- Exness: For accounts with less than $1000 and having traded more than 5 lots, the leverage is unlimited. For accounts with over $1000, it is up to 1:2000.
- Hot Forex: up to 1:1000.
- FBS: up to 1:1000.
- XM: up to 1:888.
- Trading Volume
In my opinion, in order for new traders to search for a reliable broker, they should not forget to look at that broker’s trading volume. It is because the trading volume of a broker is positively related to the traders’ believe putting on that broker. If there are approximately millions or thousands of traders choose to believe in that broker and doing the transaction with that one, so why don’t we? Here are the monthly trading volume of some big forex brokers.
- Exness: $323 billion a month.
- Hot Forex: $280 billion a month.
- Forex.com: $185 billion a month.
- FXCM: $108 billion a month.
You and I could clearly see that Exness is the most preferable broker choosing many traders per month.
Even when a reputation of a broker is judged based on many aspects, I will only choose the most three important ones that you should prioritize when evaluating a broker’s reputation.
On one hand, licenses from such popular agencies in the forex market like ASIC (Australia), CySEC (Cyprus), FSA (Japan), CFTC (United States), NFA (also the United States), and FCA (United Kingdom) always make the best forex brokers in 2018 becoming reliable. On the other hand, those licenses will prevent the best forex brokers in 2018 from offering traders best trading conditions such as low spread, high leverage, low commission, as they have to pay an amount of fee to those agencies.
Similar to licenses, the best forex brokers in 2018 that are audited by big accounting firms namely Deloitte, PWC, EY and KPMG, are really reliable regarding the approval from those audited companies about the accuracy and transparency of those brokers. Speaking of transparency, you should go to a broker that has a high transparency value. Currently, I consider Exness and FxPro are top two reliable brokers because of the public all their financial reports and information on their websites. Moreover, Exness also demonstrated the position their bank account is to everyone.
Similar to the trading volume, the frequency of people searching for a broker indicates how trustworthy that broker’s performance is. Since the more people searching for them, the more professional their performances are. Here are some brokers that are most searched online, the result is collected from Google Keyword Planner.
- XM: 40,000 search monthly.
- Exness: 36,000 search monthly.
- FBS: 30,000 search monthly
- Withdrawal time
Traders always pay attention to the withdrawal time of a broker. From my observation, when we trade with national brokers, the withdrawal time might be shorter but it is also more risky. On contrary, international brokers take a longer time (sometimes up to hours) for a trader to withdraw or transfer money but they are more reliable, therefore you need to find a trader has the shortest withdrawal time so you can follow your plan strictly. I would recommend a star in this field to you, Exness is a broker who has the shortest withdrawal time since all of the work is done spontaneously by the system so the tasks are performed within milliseconds.
- Customer care
Last but not least, a good customer service also demonstrated how thoughtful a broker is because the forex market is tough and complicated so people always in need for pieces of advice and instructions, especially the beginners. Additional not everyone could speak English fluently, especially for Asian traders, so the best forex brokers in 2018 should be available 24/7 not only to answer the questions but also can support them in different languages. Famous and big brokers like Exness, FBS, FxPro and XM all provide satisfied customer service (24/7 availability and multiple languages) for their clients.
Making a decision on a broker that will be suitable to your conditions and strategy is not an easy task and it is very important when you first doing the trade. After reading this article, I hope you will know what criteria should be considered when you come to a new broker. Almost all favourable brokers are the same, however, each of them have their unique key feature. Hence it is your choice to pick up the best one for you.