Best forex brokers of 2017

Forex trading is becoming increasingly popular these days. Due to its high potential of profit margin, it fascinates traders from all around the world. Forex market is considered one of the best and largest markets with a daily transactional volume of about 5.3 trillion dollars. It can be accessed online 24/5. Traders can trade a range of assets in the forex market including metal, stocks, currencies, commodities, indices, and contract for differences (CFDs).

How to Get Started?

To start trading, you need to open an account with a Forex broker. Brokers provide a trading platform that connects to the forex world. Here we share an important piece of information concerning the selection of a forex brokers for opening an account. Traders often become victim of underrated forex brokers, don’t be one of them!

RANK
Broker
MINIMUM DEPOSIT
BONUS
Avg Spread
Pros
RATING
MORE INFO
Min Deposit :
$250
20%-40% up to £5,000 Bonus!
Avg Spread :
N/A
  • Unregulated
  • Big Payouts (95%)
  • Unique Trading Tools
9.8/10
Min Deposit :
$100
N/A
Avg Spread :
0.5pips
  • Mobile trading
  • Social Trading Allowed
  • Regulated Broker
9.3/10
Min Deposit :
$100
No bonuses awarded
Avg Spread :
0.5pips
  • Regulated Broker
  • Mobile Trading
  • Wide Asset Range
9/10
4
Min Deposit :
$250
N/A
Avg Spread :
N/A
  • Mobile Trading Available
  • Regulated Broker
  • Good Track Record
9/10
5
Min Deposit :
$1000
N/A
Avg Spread :
N/A
  • Free Software
  • Highly Accurate Signals
  • Uses Sound Indicators
9/10
6
Min Deposit :
$100
N/A
Avg Spread :
0.5pips
  • Mobile trading
  • Regulated Broker
  • Robust Forex Education
8.8/10
7
Min Deposit :
$200
This promotion is valid for new and existing clients on their first deposit during the promotion period only
Avg Spread :
1 pip
  • Automated Trading
  • Well Regulated
  • Mobile Trading
8.8/10
8
Min Deposit :
$500
N/A
Avg Spread :
0.5 pips
  • Proprietary platform
  • Regulated Broker
  • Numerous Assets to Trade
8.5/10
9
Min Deposit :
$250
No-deposit bonus
Avg Spread :
0.5pips
  • Regulated Broker
  • Mobile Trading
  • Compendium of forex training tools
8.2/10
10
Min Deposit :
$500
No-deposit bonus
Avg Spread :
0.5pips
  • Multiple regulation and licensing
  • Mobile trading
8/10

 

This, however, is not the only cause for what you need to take great caution before opening an account. Other factors such as trading platforms, type of accounts, trade execution and methodology are also very important. Moreover, the efficiency of deposits & withdrawals, educational resources for traders and customer support is equally crucial to look upon before you make your final decision. Let’s mention some tips that you can follow before you select the best Forex broker.

Importance of Regulation for Forex Markets

As forex trading involves huge financial volume, it must be governed by credible regulatory authorities. In past, many cases were reported where brokers went liquidated or bankrupt. As a result, people lost
their fortune. Bankruptcy of Alpari UK is one such example. Considering this scenario, authorities came up with an idea to incorporate regulatory bodies to supervise and monitor the entities entrusted with
the public money. This precaution was brought into place to protect the public interest and avoid financial irregularities.

FCA (Financial Conduct Authority) – Chief Regulator in the UK

Many countries around the world have formed regulatory bodies. Some popular regulatory bodies include but not limited to ASIC (Australian Securities and Investment Commission) in Australia, CySEC (Cyprus Securities and Exchange Commission) in Cyprus, NFA (National Future Association) in the USA etc.

In the UK, FCA was established in 2013. It was incorporated with a view to regulate entities dealing in finance and make market work under strict financial guidelines. It supervises more than 56000 financial companies.

Look For Regulation Of The Forex Broker

Opening an account with a Forex broker involves deposits of funds. As a trader, you seek maximum security for your investments. You, therefore, shouldn’t open an account with a below-average forex broker. Regulation of a forex broker ensures that your investment is in safe custody.

Since regulated forex brokers are monitored and supervised by their respective regulatory bodies, therefore, it is less likely for them to undergo suspicious activities. In short, regulated forex brokers have
a binding force by law to follow certain rules and operational procedures in place by concerned authorities.

On the other hand, unregulated forex brokers barely follow any rules. You may find them offering great deals and excellent services but as long as the forex brokers are unregulated, your investment is at
stake. The worst part is that you don’t have any legal backup. If you ever come across any dispute with an unregulated forex broker, you can’t even file your case against them.

Review the Trade Execution Methodology of Your Broker

This is important since the market is dominated by two main types of forex brokers namely market makers and electronic communication networks (ECN). Alternatively, they are also known as dealing desks or no dealing desks. Let’s review them individually.

Dealing Desks:
This kind of forex brokers bet against the success of their clients. As soon as a trader initiates the trade, it is intervened and reviewed by dealing desk brokers before it is placed in the market. In other words, this type of execution is known as delayed execution. This can also result in a loss of opportunity especially when the market is volatile. If you are a day trader, this type of broker probably won’t suit
you.

No dealing Desks: No dealing desk or electronic communication networks ECN charge their customers a fixed proportional commission on each transaction. They tend to be relatively transparent. All trades initiated by traders are directly passed to the market without any intervention. Trade execution is, therefore, quick as compared to the dealing desk brokers because it is passed to the market directly.
This is the reason why most traders prefer ECN brokers over market makers.

How To Open An Account

Once traders have chosen their desired forex broker, it is the time to open an account and get it verified. Traders need to visit broker’s official website and sign up. They may be asked to provide details such as name, email id, telephone number etc. on the registration page. After signing up successfully, you may be asked to fund your account. It makes sense, you can’t trade unless you have some funds available in your trading account.

Deposits and Withdrawals

Forex brokers offer a range of methods for deposits and withdrawals. Most common methods include Skrill, Debit card, Credit card, Netteller, Bank transfers, web money and other local payment methods. You need to let your broker know your preferred method and it is likely that you will be facilitated via the same.

To be able to withdraw money successfully, sometimes your broker asks you to prove your identity and address proof. This precautionary tool is in place to avoid any fake intruder from withdrawing unauthorized money and to meet certain anti-money laundering and anti-terrorist activities laws. You can use your national identity card, driving license, passport, or utility bills to confirm your identity and address.

Final Words

We carefully selected some forex brokers that are highly trusted among the forex community. If you are unable to review brokers based on above mentioned yardsticks, then simply choose our recommended forex brokers.

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