Making money from the comfort of your own home or from your mobile phone while having a nice cup of coffee sounds like a dream come true for most people. For that precise reason Forex trading has been gaining traction among people of all statures. It is not reserved just for rich or highly knowledgeable: everyone can trade currencies on Forex and, with just a little education, they can expect to make a nice income.
This is, of course, in theory. The reality is that, while there is definitely money to be made with Forex, there are many factors one needs to take into consideration before their investments start paying off dividends. If you expect or been told that Forex market will simply make money for you without any real involvement on your part, you’ve been lied to – plain and simple.
On the other hand, those ready to apply some time and brain power to figuring out how it all works stand a good chance to significantly boost their income. This website is here to help you do exactly that, through Forex broker reviews, top Forex brokers suggestions, strategy guides and advice, and much more.
Forex Trading 101: Where Does the Appeal Come From?
Those completely new to Forex trading are probably unclear about the whole concept of currencies market. How does one make money selling and buying money? For someone who hasn’t been involved with Forex market before, this can be somewhat confusing idea.
Currency pairs are the foundation of trading via Forex brokers. When we talk about currency pairs, we are referring to two currencies like USD and EUR or Pounds and EUR, etc. There is no one centralized place where currency exchanges take place, but everything happens using Internet networks of traders.
As a trader, you are looking to buy a particular currency, say USD, at a certain EUR price and then sell it at some point in the future in such a way as to make a profit. A change in currency is referred to as a pip among Forex traders. A pip is the smallest unite of change in currency, usually 1/100th of the basis point. The basis point, or BPS, on the other hand, represents 1/100th of 1%, so one USD pip would be $0.0001.
Top Forex Brokers
|Rating||Broker||Bonus||Regulator||Open Account||Read Review|
|xtrade||$20 Free||CYSEC||Open Account||Read Review|
|xm||$5000||CYSEC||Open Account||Read Review|
|HYCM||$5000||FSA||Open Account||Read Review|
|avatrade||40%||MIFID||Open Account||Read Review|
|instaforex||250%||FFMS||Open Account||Read Review|
|eToro||UP TO $1000||CYSEC, FCA||Open Account||Read Review|
|CM Trading||Up to $1000||FSB||Open Account||Read Review|
|easy Markets||Up to $2000||CySEC||Open Account||Read Review|
|FBS||100% Bonus||IFSC||Open Account||Read Review|
|Forex4you||25% Bonus||FCA, FSCS||Open Account||Read Review|
|Freshforex||Up to $5 000||CRFIN||Open Account||Read Review|
|Hotforex||100% Bonus||CySEC||Open Account||Read Review|
|Ironfx||Up to $10,000||CySEC,FCA, ASIC||Open Account||Read Review|
|Octafx||Up to 50%||FCA||Open Account||Read Review|
|Plus500||$50||FCA, ASIC, CySEC||Open Account||Read Review|
|UFX||$50||CYSEC, MIFID||Open Account||Read Review|
|XCFD||$50||CYSEC, MIFID||Open Account||Read Review|
Importance of Choosing the Best Forex Brokers
In order to trade currencies on the Forex Market, you will need a reliable broker. This is not the activity you can do on your own, because you need an intermediary who keeps track of currency changes, handles the purchases and sales, and more.
The Forex market is open around the clock because as soon as one market shuts down for the day (for example in the US), a new one opens up (in Japan). That means that you can trade whenever it fits your schedule the best, be it during a day or during a night.
With the market being highly accessible to everyone, without requiring highly specialized knowledge present in, say, stock trading, anyone can pick one of the top Forex brokers to deposit their money and start trading in the matter of minutes. The best among the best will give their traders a lot of necessary tools to help you make the profit.
Relying on the Forex broker comparison you can find on this site, you will be able to find such brokers. Given choice, you should never entrust your money with someone who is likely not to have your best interest at heart. Top Forex brokers are there for their clients in every sense of the word, from providing nice bonus offers and important info, to helpful customer support available around the clock.
Forex Market Facts: What You Need to Know
We’ve already mentioned pips as the basic units of trading in the Forex world. When traders speak about their profits or losses for the day, they will usually express these in terms of pips. While you may start trading as high as you want right off the bat, it is usually a good idea for novice traders to start small.
This holds true even if you have a big bankroll at your disposal. As someone new to the market, you are more likely to make a costly mistake or few, leading to unnecessary loss of funds. Make some small trades at first to see how things work and to feel the market’s pulse. Once you get familiar with everything, there will be plenty of time to go for bigger trades.
Another thing you should get straight right on the start is that you shouldn’t expect huge profits. While some Forex brokers will promise huge returns, these promises do not hold water, especially for novice traders. In fact, at the very onset, you should probably be happy if you are not trading with a loss or are making a small profit.
Things will improve with time, as you become more accustomed to market movements and get better at predicting future possibilities. Once you’ve become a proper Forex trader, you will see a significant increase in your gains. That said, you shouldn’t expect to get rich over night. Forex trading business is the long term game in which those who put in the most effort achieve the best results. It is not a get rich quick scheme, even though some sites make it sound like it is.
Top Forex Brokers Are Heavily Regulated
When picking a Forex broker to handle your business, you need to be very careful about avoiding those who are in it just to scam you, take your money, and run. One of the crucial aspects we look into when making our Forex broker reviews is the regulation.
There are numerous local organizations that deal with the regulation of Forex brokers and most of them are country specific. There is the FCA in the United Kingdom, CySEC in Cyprus, Australia’s ASIC, and some others. These regulators take care that all Forex brokers approved and licensed by them do things “by the book,” ensuring financial safety of their customers and safeguarding the market from false promotions and scammers.
When looking for the best Forex brokers to sign up with, you need to find the ones regulated by these well-reputed regulatory bodies. In some instances, you will even find certain operators in our Forex broker reviews who have been granted an operational license by two or three of these organizations. With these brokers, you can rest assured your money is in good hands, because there is no way they would be able to sidetrack and trick several regulators.
Other Criteria for Selecting the Best Forex Brokers
The regulation is of the utmost importance, but it is only the first step on your path of finding a reliable broker that will help you become a successful Forex trader. There are quite a few things that we look into when rating the brokers recommended on our site and these are the things that every trader needs to be aware of.
– Demo Account
While some of the best Forex brokers out there do not actually offer a free demo account – and this is not necessarily something you should hold against them – if you are a novice trader, make sure to find a broker that offers this option.
The Forex market can be quite overwhelming for newcomers and without a demo account, you will be forced to spend your own money trying to get a hang of things. While this may not be an issue for everyone making their first steps, if you don’t have the money to splash around, look for a Forex broker that gives you a chance to check out the market and their software risk-free.
You should, of course, understand that trading with “play money” is not the same like the real thing and be prepared for some serious adjustments once you switch to real money trading. Still, going into the battle with some idea of how things work should give you a nice head start.
– Knowledge Base
Going hand in hand with a Demo account is a free knowledge base. Although Forex market may seem relatively simple to handle, the reality is somewhat different. You will need to absorb certain knowledge before you can start trading successfully.
While we provide a lot of valuable advice on this site and there are plenty of resource around the web, top Forex brokers make sure you have an easy and simple access to required information. They will make sure to provide you with written guides, videos, and webinars to get you started and help you develop your skills further.
Remember, the best Forex brokers out there actually want you to make money and they will provide you with a lot of learning materials to help you achieve that goal. Some of this knowledge will prove invaluable to you when you eventually start trading, so make sure to take full advantage of these free resources.
– Deposits & Withdrawals
Since Forex market is a money game, banking, i.e. deposits and withdrawals, play a crucial role for your success. A top Forex broker will always ensure its clients have numerous banking methods available to them for both, funding their accounts and taking out their profits. Apart from the number of methods, these transactions need to be seamless and fast.
The speed of transactions is especially important for withdrawals. When dealing with some shadier Forex brokers, you will often encounter many difficulties when you decide to cash out the profit or your entire bankroll. While the deposit went through without issues, you are faced with one obstacle after another when requesting your money.
No reputable broker will try to give you a runaround like this. If they start refusing the documents you sent to confirm your identity, talk about delays in payments, or come up with other reasons why they cannot pay you, the odds are you’ve run into a rogue Forex broker. Sometimes there will be legitimate reasons why your money cannot be dispatched promptly, but for the most part, excuses and accusations are a very bad sign.
Stick to top Forex brokers who honor their promises and make sure your profit gets to you in a timely manner and without unnecessary frustrations. The money in your Forex trading account belongs to you and you alone and, barring really special circumstances, you should be able to get it back promptly, without excuses or delays.
Talking about money and banking, it is also worth mentioning that many brokers will offer you bonuses as incentives to get in the game, so to speak. While some of these offers are very attractive, always make sure to read the fine print and fully understand the bonus rules. Even the best Forex brokers may sometimes have bonus rules that simply don’t correspond well with your trading habits, so you may be better off without a bonus altogether.
One thing we haven’t discussed so far is the concept of the leverage. This is one of the more important concepts in the Forex market, so you need to understand it for what it is. The leverage is, in fact, a loan that is provided to you by your Forex broker. While it is a nice thing to use to gain some extra profit, and some of the top Forex brokers may offer the leverage as high as 200:1, there are also things to be cautious about.
When using leverage, you are trading with someone else’s money, which means, if you lost, you now owe that money to your broker. While currency changes are usually very small and you don’t stand to lose big on any particular trade, if you are using a big leverage, you could still end up owing a decent chunk of cash.
For example, using 200:1 leverage, you would only need $500 to trade $100,000 worth of currency. This sounds great in theory, but if there is an unfavorable change of, say, 1%, you will lose your 500 and be on the line for another $1,000.
Thread lightly when taking advantage of the leverage.
– Trading Platforms & Currency Pairs
A trading platform provided by your broker is your essential tool in the Forex market. Through this platform, all trades are made and you can keep track of your transactions, progress of your trades, get informed about latest relevant developments, etc.
Depending on your experience levels, you should look for a platform that provides both, a simple, user-friendly interface, and variety of options to help you place your trades and manage your risks. This, combined with a reliable and fast server making sure your placements go through, is something you must require as a trader and shouldn’t settle for anything less.
On top of all this, you also want to join a Forex broker that makes the platform available via numerous devices. Make sure to find an operator that allows access via the site directly, so that you can access the backend even when you are away from your own computer where you have the platform installed. Also, you will want to have an access to your account via different mobile devices, like phones and tablets powered by various operating systems (iOS, Android, Windows).
Finally, availability of currency pairs plays a significant role, especially for more experienced traders. Most brokers will offer standard pairs (EUR/USD, GBP/EUR, etc.), but top Forex brokers will go out of their way to make sure their clients have access to minor and “exotic” pairs.
Even if this doesn’t seem that relevant to you as a novice trader, you should still check out our Forex broker reviews and find the ones that offer a wider trading scope. If, at any point, you decide it is time to test your skills with some minor currency pairs, why should you be denied the option?
– Customer Support
The last item on the list when looking for a top Forex broker is their customer support system. New and experienced traders alike will, from time to time, run into an obstacle they simply cannot get around on their own. Be it a banking issue, an account problem, or something else, you want to have someone to turn to with your question and get a prompt and satisfactory answer.
We always test the customer support for responsiveness and expertise. They need to be available 24/7 (or close to that) and have answers to your questions readily available. This means that top Forex brokers will make sure to educate their customer support staff so that no clients’ query is too difficult to answer.
On top of their expertise, they also need to be kind and patient, since you are a paying customer after all. Rude customer support is usually a sign of a bad Forex broker that simply doesn’t care enough to make sure their customers are treated the way they fully deserve.
Understanding Different Account Types Offered by Top Forex Brokers
When first registering with a Forex broker, you will usually notice there are different account types available. Although we always try to explain these in particular Forex broker reviews, these are some general guidelines that should help you find your way around and find the best fits for what you are after.
Demo accounts have already been discussed. These are meant for new traders to make their first steps, but can also be useful to more experienced ones if they are making a transition to a different platform they are not used to. Sometimes these come free of charge, while other brokers only make them available with Standard accounts or better.
Standard accounts are the best fit for a large majority of traders. These come with a mandatory deposit that can range anywhere between $1 to $1,000. The usual minimum amount is $100. With it, you will be given full access to learning resources, most currency pairs, and standard leverage (around 1:50 with most brokers).
VIP or advanced accounts are for experienced traders who make big trades. These accounts usually come with deposits of $5,000+ and entail everything available via the Standard account, plus more currency spreads, better leverage, and often a personal account manager to assist you with your trades.
Top Forex brokers make this distinction between the accounts so that you can pick the one that suits your needs the best. Additionally, it is only natural that they cannot give the same amount of attention and care to all traders and that “big players” get special perks. That said, a good broker will always take care of your needs, even if you are only a small-time trader.
Conclusion: Pick Only Top Forex Brokers When Trading
This article and our Forex broker reviews should help you in your quest for the best Forex brokers out there. As mentioned before, never settle for less than that simply because you don’t have to. Ask for the best service, good banking options, and quick withdrawals because you are entitled to them as a customer.
A good way to start the selection process is looking into regulation. Top Forex brokers will always be regulated by a reputable regulatory agency and will proudly display the fact on their official website. You can always check this information further by visiting the respective regulator.
Other than this, make sure that your Forex broker offers good and always available customer service accessible via different communication channels. If you happen to run into problems, you want to be sure there is someone you can turn to and who will help you on the spot.
With the wealth of information and reviews available on this site, you should have no problems locating the best Forex brokers out there and determining if they offer what you need. Remember, novice traders will have different requirements than someone highly experienced on the market, so make sure that your broker is the best fit for your needs.
Try to stay informed as much as possible, be responsible with your money, and don’t rush into trades based on your instinct alone. Just like when selecting your Forex broker, a methodical approach to the market will work heavily to your advantage.