Traders always have to look for the best broker to trade with. But the hard part is how to find the best ones?. They have to use many standards to evaluate brokers. With many years of experience in trading, I have come up with three important standards: trading cost, credibility and customer service. Look at this top 5 best brokers that I rank based on my standards:
- Exness reviews: 9/10
- HotForex reviews: 8.5/10
- XM reviews: 8/10
- FBS reviews: 7.5/10
- FxPro reviews: 7/10
CREDIBILITY
Knowing if a broker is reliable or not is really important for traders. And they should use regulations to do so because trustworthy organisations are the one provided those regulations. They will be the one set standards. Merits as well as conditions of a broker to ensure that all traders are well-protected. However, acquiring too many regulations can do more harm than good for brokers because their trading conditions may be affected by that. To be more specific, they will have to offer lower leverage along with higher commission rate and spread. Therefore, I would say only having less than 2 regulations is the best for brokers. Below are the regulations that my own top 5 brokers have:
|
Broker names |
Regulations |
|
Exness |
CySEC, FCA |
|
HotForex |
CySEC, FSCA, FCA |
|
XM |
CySEC, FCA, ASIC |
|
FBS |
CySEC, IFSC |
|
FxPro |
CySEC, FCA, DFSA, FSB |
TRADING COST
When you finish figuring out the reliability of a broker, you should then know what is it trading cost. You can do that from many different factors, but spread, commission rate, and minimum deposit rate are still the most important factors.
In case you don’t know about the spread, it is calculated as the difference between the Ask and the Bid price. And it is the most common trading cost that brokers will charge you. It is usually measured in pip. If a broker charges a high spread, then the trading cost will be high as well. That is why lowest brokers are always preferred by traders. My best forex brokers 2018 spreads are as follows:
- Exness: 0.7 pip
- Hotforex: 1.1 pip
- FBS: 1.1 pip
- XM: 1.7 pip
- FxPro: 1.7 pip
Regular accounts and ECN account are two type of accounts brokers usually offer. For ECN account, the spread is close to zero and brokers will charge commission instead because they mostly get income from spread and commission. Below is the list of commission rates that the 5 top brokers are charging for ECN accounts:
- Exness: $2.5
- Hotforex: $6
- FBS: $6
- XM: $6
- FxPro: $45
Brokers usually require minimum deposit when traders open new accounts. It is important for new traders because they only to put a small amount of money in a broker and they know that they are new to trading and will lose all of their investment at the early stage. Moreover, experienced traders also care about the minimum deposit as they may want to test new brokers. You can check out the minimum deposit requirements that the brokers on my list are requiring:
- Exness: $1
- FBS: $1
- Hotforex: $5
- XM: $5
- FxPro: $500
CUSTOMER SERVICE
Traders will probably have to seek a lot of support from brokers because most of the traders will find forex trading very complicated. Traders can face many difficulties throughout their trading careers. Therefore, good customer support is always important for any broker. Moreover, brokers are also highly recommended to open local offices in the countries they are targeting so that their traders will have the opportunity to access face-to-face support. In addition, English is always not the strength of Asian traders so supporting local languages is another big advantage. Finally, they also should seek cooperation with local banks in some countries in order to help traders to minimize their depositing and withdrawing cost.
With these factors, I have listed the top 5 in the customer service aspect as follows:
- Exness: 9/10
- HotForex: 8.5/10
- XM: 8/10
- FBS: 7.5/10
- FxPro: 7/10
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