I will use my own experience and also information from other reliable sources to write a guide for you to choose the best forex brokers.
Why is license important for brokers?
Because it shows the reputation, standards and also capabilities of the brokers that have it. But it doesn’t mean that having a lot of brokers indicating they are good brokers. For example, if you are trading in Asian countries, then even a broker with 100 US & UK based licenses wouldn’t help you anything, you need a broker with the Asian-based license. I would say a broker only needs to get one of these five forex licenses: CFTC, NFA, ASIC, FSA, and CFTC.
Brokers will have to follow more rules when having a lot of licenses, including offering less trading tools, lower leverage, high spread, and many other things. So, just one reliable license is better.
Most international brokers have over one license so I won’t recommend any particular broker in this aspect.
Which brokers offer the lowest transaction fees
Brokers usually don’t charge traders commission for regular accounts. Only traders with ECN accounts are charged commission because ECN account’s spread is nearly zero so the top 5 ECN brokers have to get income from charging commission.
The lowest commission rate is 2.5$ which Exness is charging its trader.
In terms of spread, Hot Forex and Exness are two brokers that offer the lower spreads for the most popular currency pair – EUR/USD
Hotforex’s spread is 1.1 pip
XM and FXTM’s spread is 1.7 pips
Exness’ spread is 1.1 pip
Brokers with the best customer support
Don’t disregard the importance of good customer support when you choose a broker. Because without good customer support, you may have to wait a long time to get a response from brokers, and in the complex trading world, you would need a lot of support. Moreover, traders with bad English will also struggle if there is no support in their language.
Exness, FxPro, FBS and XM are the four broker I believe have the best customer support. I would say Exness is the best among these four with 24/7 customer support.
Which brokers offer the best leverage?
A lot of traders love this tool a lot. The requirements of many British, US and Japanese licenses are offering low leverage so brokers who have those have to follow it. And that makes them less competitive compared to other brokers. These are some of the best leverages:
- Exness: Unlimited Leverage with several conditions.
Exness accounts (more than $1,000 balance) get a leverage of 1:2000. Accounts (more than $1,000 balance and 5 lots finished) get unlimited leverage.
– FBS: 1:1000
– Hotforex: 1:1000
– XM: 1:888
Which brokers offer the best types of account
Some major brokers’ minimum deposit may be very high to small traders who can only afford to deposit a small amount of money. For instances, FXCM and Forex.com’s minimum deposit requirements are $2,000 and $500 respectively.
– Exness does not have a minimum deposit.
– FBS requires traders to deposit a minimum amount of 1 dollar.
– Hotforex minimum deposit is $5.
This is my own list of the best brokers using information above
– Exness: 9/10.
– HotForex: 8/10.
– XM: 8/10.
– FxPro: 7.5/10.
This is only a list that I made using experiences I got from trading for many years. My last recommendation for you is trading with some brokers before choosing a final one. Because each of the brokers has their own strengths and weaknesses. Therefore, you should trade with a few to choose the most suitable broker for you.