How To Find The Best Forex Brokers?

• It should be an approved regulated broker. Not only confirm it on their websites but check out the official government sites of each regulatory body.

o United States: NFA, CFTC

o Canada: CSA, BCSC, CIPF, OSC

o United Kingdom: FSA UK

o Switzerland: SFDF, ARIF, FINMA

o Sweden: Swedish FSA

o Denmark: Danish FSA

o Spain: CNMV

o Japan: FFAJ, FSA Japan

o Hong Kong: SFC

o Australia: ASIC

o Dubai: DMCC, DGCX, DFSA, ESCA

• More products on offer like Forex, cfds, bonds, commodities, stocks etc bigger the business – more the reliability!

• It should be at least 6-10 years old

• Do they follow Client Agreement where they offer the same conditions while real trading e.g. show 1 pip spread while in reality it is already 2 pips, allow scalping, while in reality – don’t. If you don’t read Client Agreement, but instead simply put a check box “I agree” in front of Terms and Conditions while applying for an account, you’re doing yourself no favor.

• Some good brokers

o Alpari UK

o FXCM

o FXPRO

o FXDD

o IBFX

o Forex

o Oanda

• Profitability rate – speaking of regulation, this is a rather new metric, that is only available to US brokers. Brokers are now required to post the profitability rate of their customers. A broker with a higher profitability rate likely works harder to make his traders succeed. This can be done in terms of education, support or anything else.

• Transparency – with the significant growth of Forex social networks, transparency isn’t only a nice buzzword. Is our potential broker available on social networks such as Currensee or FXBees? If so, it’s a good sign, that he has less to hide.

• Google Bad Reviews – positive reviews can be tricky thing, but look up for genuine negative ones – Google the broker’s name with words such as “sucks” or “withdrawal” to see if clients had troubles with the broker, especially in the sensitive field of withdrawing money. Too many genuine complaints mean trouble.

• Broker type – most brokers are market makers, meaning they create the market between their traders. This may easily lead to a conflict of interest between the broker and the trader, as the broker is also a participant in this market, and may bet against the trader. Opt for non dealing desk – NDD / ECN / STP brokers that generally send the orders to bigger institutions and just serve as mediator taking commissions.