Based on my own experience, this article will outline the features and characteristics of the best forex brokers 2018. I have been working in this forex market for 2 years and have been trading with different brokers. It’s not a very long time, but not a short time. Personally, I want to share with new traders about my knowledge, understanding, and experience about this field.
From my point of view, good forex brokers are the ones who offer great customer service, good tools, and favored trading conditions. Besides, their security, transparency, and reputation are vital elements to pay attention to. I will pick some familiar forex brokers in the Asian market to explain their features and characteristics. These brokers include Exness, FxPro, Hot Forex, XM, and FBS.
The reputation of a forex broker depends on many things. I only love to trade with a broker that guarantees three following elements.
A broker with trusted license
As I observe, good and reliable brokers often own trusted licenses. These licenses should be certified by well-known and reliable organizations. They can be FSA (Japan), CySEC (Cyprus), ASIC (Australia), NFA (United States), CFTC (United States), and FCA (United Kingdom). A license can present the standards, capabilities, and reputation of a broker. However, it can limit a trader’s benefits because that broker has to pay a fee to the regulation organizations.
Good Trading Volume
The number of traders who have been trading with a broker is referred to as the trading volume. To my mind, good forex brokers often have high trading volume. The higher their trading volume is, the more trusted they are. Personally, I only trust the largest forex brokers with millions or thousands of traders. They are Exness, Forex.com, and FXCM. Here are their monthly trading volume.
FXCM: $108 billion per month
Forex.com: $185 billion per month
Hot Forex: $280 billion per month
Exness: $323 billion per month
Low Minimum Deposit
Beginners love brokers with low minimum deposit. Because new traders often lose all their money when starting, they don’t want to deposit too much. Top forex brokers with the low minimum deposit for small traders are Hot Forex ($5) and Exness and FBS (only $1 minimum). But for experienced traders, they can be well-informed about this market and they love earning more. Therefore, they choose big brokers with higher minimum deposit, such as FXCM ($2000) or Forex.com ($500).
Brokers benefit from spreads and commissions. These things can vary, depending on the type of your account. There are many different account types in the forex market. Regular accounts often have no commission. But for ECN accounts, because there is no spread offered, traders have to pay commission. Big and professional traders often prefer to use ECN accounts. As I see it, Exness is one of the top forex brokers that charge very low commission. For each lot traded, I have to pay only 2.5 USD.
As I mentioned before, some brokers charge very low or even no commission. They make money through wide spreads, instead. This is the gap between the selling price and the buy price. The higher the broker’s spread is, the more money they make. So, trade with brokers that offer low spread. I consider that Exness, FBS and Hot Forex are top forex brokers in this field. They provide their traders with a spread of around 1.1 pip for EURUSD.
From where I stand, top forex brokers often offer high leverage. However, leverage can be affected by different factors, such as licenses. In this field, Western traders can be at a disadvantage compared with Asian traders. Because brokers in the Western areas are strictly regulated in their terrorisms, they can provide high leverage. In the meantime, Asian brokers offer high leverage since the strict regulations are not applied there. Here are some big Asian brokers with very good leverage.
FBS: up to 1:1000
Hot Forex: up to 1:1000
XM: up to 1:888
Exness: unlimited (for a trader with less than $1000 in their account and over 5 lots of trading)/ 1:2000 (for accounts with more than $1000).
Fast Withdrawal and Transfer
Personally, I pay high attention to transfer and withdrawal system. Here, I will compare domestic brokers and international brokers. Domestic brokers are not as reliable as international brokers. However, they can provide with faster withdrawal and transfer time. Meanwhile, foreign brokers are safer and more secure, but their withdrawal and transfer process can take a really long time. In this field, I highly appreciate Exness. They are the fastest among top forex brokers with good trading policies. Because the withdrawal and transfer system of Exness is automatic, their trading process takes the only millisecond.
Good Customer Support
No matter who you are- a new or experienced trader, you always need advice and support from your broker. In my view, what a broker provides and how they take care of their clients can affect the trading results. In term of customer service, I highly recommend some good forex brokers, such as Exness, FBS, FxPro and XM (the best forex brokers in Thailand). They have 24/7 customer service and assist their clients in multiple languages.
The forex market is considered as the confusing and difficult world, especially for beginners. There are numerous forex brokers in that world, and scams are everywhere. I hope that several features and characteristics of the top forex brokers mentioned above can be useful for you. If you’re just starting out as a trader, I advise that you should pick a broker that meets your trading strategy and needs.