Finding the best broker is always in the mind of new traders, yet do they know what is needed for brokers to be called the “best”? When it comes to evaluating a new broker, there are certain standards to be followed: credibility, trading cost, and customer services. From my experience, I have narrowed down the list of 5 best brokers in the field:
– Exness reviews: 9/10
– HotForex reviews: 8.5/10
– XM reviews: 8/10
– FBS reviews: 7.5/10
– FxPro reviews: 7/10
CREDIBILITY
Before committing to a broker, a trader should check the reliability of the broker by analyzing its regulations. Basically, regulations are licenses provided by globally prestige financial organizations. These regulations will impose certain restrictions on the standards, merits, trading conditions to ensure the safety of traders. A broker with too many regulations from multiple organizations will be significantly restricted in terms of spread rate and leverage rate. Specifically, its spread rate would be higher than other brokers while the leverage will be lower. In addition, its commission rate will also increase. All these factors combined, traders will not receive any profit from trading with such a restricted broker. In short, one or two valid regulations should be enough to prove the transparency of a broker. Following is the list of 5 reliable brokers and their licenses:
| Broker names | Regulations |
| Exness | CySEC, FCA |
| HotForex | CySEC, FSCA, FCA |
| XM | CySEC, FCA, ASIC |
| FBS | CySEC, IFSC |
| FxPro | CySEC, FCA, DFSA, FSB |
TRADING COST
After checking the reliability of a broker, you would want to move on with its trading costs. The trading cost can be varied depends on many factors, but the basic ones are spread, commission and minimum deposit rate.
First of all, spread is the difference between the Ask and Bid price which is measured in pip. One feature that new traders should keep in mind is that a high spread rate will lead to high reading costs and vice versa. As a result, most traders would want to work with brokers that provide low spread rate. Below is the spread rate of each trustworthy broker:
- Exness: 0.7 pip
- Hotforex: 1.1 pip
- FBS: 1.1 pip
- XM: 1.7 pip
- FxPro: 1.7 pip
There are two main account types provided by most brokers: Regular accounts and ECN account. As for ECN account, its spread is close to none. As a result, brokers will charge the commission to make up for the loss of spread fee. To compare, I have summed up the list of commission rate of ECN account provided by the best forex brokers 2018:
- Exness: $2.5
- Hotforex: $6
- FBS: $6
- XM: $6
- FxPro: $45
Finally, traders will have to consider the minimum deposit requirement of each account type. Most new traders do not want to deposit a large amount of money in fear of losing them all. Meanwhile, professional brokers also pay attention to this detail when they check out a new broker. Here is the minimum deposit rate of each broker:
- Exness: $1
- FBS: $1
- Hotforex: $5
- XM: $5
- FxPro: $500
CUSTOMER SERVICES
Forex trading is undoubtedly a complicating field, where traders can easily stumble upon a new obstacle every day. Therefore, brokers should be able to provide constant support for their customers to ensure their trading performance. A good customer service should be available to their customers 24/7. Moreover, local offices are also a plus point since traders can have a face-to-face conversation with the support team. In addition, local language support is another extra point to help traders who are not fluent in English. Finally, brokers should partner with local banks to help traders minimize their trading costs.
Here is my evaluation in terms of customer service for the top 5 brokers:
- Exness: 9/10
- HotForex: 8.5/10
- XM: 8/10
- FBS: 7.5/10
- FxPro: 7/10
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