The Forex industry is a highly competitive and volatile one and hence a lot of thought and research must go into choosing the best Forex broker. A perfect comparison is the best way by which you can achieve this as it helps you to understand the working style and rules of each broker. Comparing brokers must be your top priority before trading and a wrong decision here can break you even before you start out.
Each broker has a specific trading style and this is what you must try to understand while doing a broker comparison. Apart from this, there are several other criteria too that goes into choosing the best Forex broker. These include deciding on your investment objectives, level of experience of the trader as well as the broker and risk appetite. It is important that the trading style of your broker matches your own; only then will you be able to work as a team and thereby reap in the benefits. Some of the top names among Forex brokers include 4XP, Go Markets, Forex Metal, UWC, InstaForex and PFG Best. If you are looking for experience, then the oldest players in this industry are ForInvest Group, Mandus Invest SA, MIG Bank, CMC Markets, North Finance, ACM and Real Trade Group. Some of the other big names in the broking industry include Dukascopy, Easy Forex, FXOpen, Nord FX, FBS, Finexo, FXcast, Oanda, Alpari and Finotec.
There are many online websites that you could use for this comparison. These sites compare brokers using several categories like most experienced, ECN brokers, NFA regulated brokers and Scalper friendly brokers. Different lists are created depending on the criteria used for comparison but you must keep in mind that none of these lists are fool proof. So instead of blindly trusting these, use the list as a base and then carry out your own research to find the best Forex broker of your choice.
The other criteria that must be looked into includes the commission, minimum deposit and maximum leverage. There is no point in choosing a broker who demands a high commission if you are new to the market and just starting out. In this case, you need a broker who is more experienced and can teach you the nuances of the game but requires only a small amount as deposit and commission. As you gain experience, then you can choose the bigger broking companies which may demand high commission fees but are big players in the foreign exchange market.
It is also important that you hire a broker who is regulated as the foreign exchange market is highly unregulated. The respected regulatory bodies include National Futures Association (NFA), Financial Services Authority, Association Romande Des Intermediares Financiers and Securities and Futures Commission. The best Forex broker must also be chosen based on whether they are well-capitalized and insures the customer funds. Both these criteria can be of great help in the long run especially if you run into a tight spot at any time of the trade.