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Selecting a Forex Broker

Forex Broker

Forex Brokers & Trading AccountsForex brokers are financial companies that provide access to the Foreign exchange market by linking retail and institutional capital and the network of banks that offer liquidity.

 

How to Choose a Forex BrokerHow to Choose a Forex Broker?

These are the key issues to keep in mind when choosing Forex brokers:

ENSURING THE SAFETY OF FUNDS

  • Is the Forex broker regulated by a trustable authority such as FCA UK, ASIC, or CySEC?
  • Is the Forex broker headquartered in a safe country?
  • Does the Forex broker operate for more than 3 years in the market?

FUNDING METHODS, TRADING PLATFORMS, AND ASSET INDEX

  • Are the available funding methods suitable to your needs (internet wallets, debit cards, etc.)?
  • Are the available platforms and asset indexes suitable to your needs (Forex pairs, Metals, Indices, Crypto, etc.)?

BE AWARE OF THE TRADING COST

  • What is the spread on liquid Forex assets such as EURUSD and GBSUD?
  • What are the trading commissions (if any)?
  • What are the overnight rates on the Forex pairs you will likely trade?
  • Are there any withdrawal fees and/or maintenance (inactive) fees?

 

Table: Compare Forex brokers and their trading terms

BROKER TRADING COMPANY ACCOUNTS MORE INFO

» IC MARKETS

ICMarkets is a regulated ECN Forex Broker based in Australia.

  • CFD PROVIDER
  • TIGHT SPREADS & FREE VPS
 US Residents: No
  • EURUSD Spread: 0.0 Pip
  • Commissions: $7.0 / full-traded lot
  • 60+ Forex pairs, cryptocurrencies, plus several indices and commodities
  • Cryptocurrencies

Online Since 2007
Licensed: FSA Seychelles

Client Bank Account Segregation: YES
  • Bonus on New Accounts: N/A
  • Min. Deposit: 200 USD
  • Methods: Cards | Wire | Skrill | Neteller | WebMoney
  • MetaTrader: MT4 | MT5 | cTrader
  • Auto-trading and Scalping: Allowed
  • Free VPS: YES
  • PAMM Accounts: NO

 

Not for European Traders:

» IC MARKETS

» REVIEW

 

» ROBOFOREX

RoboForex is a good choice for day-traders

  • ECN/STP FOREX BROKER
  • TIGHT SPREADS & FAST EXECUTION
 US Residents: No
  • EURUSD Spread: 1.3 Pip
  • Commissions: NO
  • 35+ Forex pairs plus several indices and commodities

Online Since 2009
Licensed: FSC 000138/7

Client Bank Account Segregation: YES
  • Bonus on New Accounts: Cash Bonus
  • Min. Deposit: 10 USD
  • Methods: Cards | Wire | Skrill | Neteller
  • AdvCash | PerfectMoney
  • MetaTrader: MT4 | MT5 | cTrader
  • Auto-trading and Scalping: Allowed
  • Free VPS: YES
  • PAMM Accounts: Social Trading only

WEBSITE:

» ROBOFOREX

 

Using the services of a Forex brokerCategories of trading fees when using the services of a Forex broker

 

Trading Spreads & Commissions

Some brokers charge only spreads, while others charge spreads and trading commissions. There are also zero-spread accounts that charge only commissions.

  • The spread is the difference between the ask and bid and it is measured in pips

  • A pip means Percentage In Points and represents the 1/100th of 1%. For example, when the EUR/USD Ask/Bid is 1.1700/1.1701, then the difference is 1 pip (0.0001)

  • Trading commissions are based on your volume and should be measured on a full-round lot basis. Usually, Forex brokers charge between $6 and $10 per full traded standard lot ($100,000)

SWAP Charges for Maintaining Positions Overnight

  • Positions kept overnight, become subject to overnight (SWAP) rates. This can be positive or negative for your account's balance.

Other Fees

  • Deposit/Withdrawal Fees

  • Maintenance/Inactive fess.

 

■ Selecting a Forex Broker

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