The Forex Chronicles

Forex Brokers

It can be a daunting task trying to decide which forex broker to sign up with because there are simply too many to choose from.

So in this article I want to feature a select list of brokers that are ideal for both beginners and experienced traders alike, and discuss some of the key factors that you should take into consideration when choosing a forex broker.

FXTM (Forex Time)

FXTM LogoForex Time, also referred to as FXTM, is a global fast-growing forex broker that is regulated in Europe, South Africa and the UK by the CySEC, FSCA and FCA regulatory bodies respectively.

They launched in 2011, but it is only in recent years that they have started to establish themselves as a leading name in the industry after picking up numerous awards.

FXTM offer a range of standard and ECN accounts to suit all types of traders, with the ECN accounts offering spreads as tight as 0.1 pips. Trade execution is instant regardless of which account you choose, and leverage is available up to 1:1000 (for non-EU traders only).

You can choose to trade currencies, metals, commodities, cryptocurrencies and up to 180 US shares via CFDs, and they now offer their own copy trading program – FXTM Invest – that enables you to follow other traders signals automatically and receive a share of their profits, or offer your own signals and earn extra revenue if you are a profitable trader yourself.

So when you consider that FXTM is a fully regulated global broker that offers a wide choice of accounts, a range of different markets to trade, tight spreads, instant execution and the potential to earn extra revenue through an integrated copy trading program, it is easy to see why they have won so many rewards.

  • Headquarters – Cyprus
  • Founded – 2011
  • Regulation – CySEC, FSCA and FCA
  • Leverage – up to 1:1000 (restrictions apply for EU traders)
  • Instruments – forex, commodities, cryptocurrencies, indices and options
  • Charting Software – MT4 and MT5
  • Registered Accounts – > 1,000,000
  • Bonus – deposit bonuses and switching bonus
  • Payment Methods – credit/debit card, e-wallets, bank wire transfers and local payment solutions
  • Minimum Deposit – $5 (for Cent account)
  • Demo Account – free $1,000,000 demo account
  • Mobile Apps – iOS, Android

→ Click here to open a trading account with FXTM

EasyMarkets

EasyMarkets LogoEasyMarkets (formerly Easy Forex) is a well-established company regulated by CySEC in Europe and ASIC in the Asian Pacific Region that has won numerous awards since they launched back in 2001.

As well as being a traditional forex broker, they have recently expanded their operations to include CFDs and vanilla options, as well as cryptocurrency trading.

The key benefits of this particular broker is that they segregate client funds and were one of the first brokers to offer negative account protection.

In addition, they also have a deal cancellation feature that enables you to cancel a trade up to 60 minutes after opening a position, and offer fixed spreads, free guaranteed stop losses and a generous bonus scheme for new clients.

  • Headquarters – Cyprus
  • Founded – 2001
  • Regulation – CySEC and ASIC
  • Leverage – up to 1:400 (restrictions apply for EU traders)
  • Instruments – forex, commodities, cryptocurrencies, indices and options
  • Charting Software – MT4 and easyMarkets platform
  • Registered Accounts – > 40,000 active traders
  • Bonus – 50% or up to $2000 tradable bonus based on first time deposit
  • Payment Methods – credit/debit card, online banking, e-wallet and bank wire transfer
  • Minimum Deposit – $100
  • Demo Account – free
  • Mobile Apps – iOS, Android

→ Click here to open a trading account with EasyMarkets

Markets.com

Markets.com LogoMarkets.com is a global forex and CFD provider that is operated by STA Global Investments Pty Ltd, who themselves are owned by TradeTech Markets Ltd, a subsidiary of the FTSE 250-listed company Playtech PLC.

They are regulated by CySEC in Europe and FSB in South Africa, and with over 5 million registered accounts, they have really grown in popularity in recent years.

With more than 2200 different markets available to trade, including cryptocurrencies, a top quality trading platform, reasonable spreads and a collection of educational resources, this is a good choice for both beginners and seasoned traders, particularly those who are interested in trading CFDs.

  • Headquarters – Cyprus
  • Founded – 2008
  • Regulation – CySEC and FSB
  • Leverage – up to 1:300 (restrictions apply for EU traders)
  • Instruments – forex, stocks, indices, commodities and cryptocurrencies
  • Charting Software – MT4 and MT5
  • Registered Accounts – > 5 million
  • Bonus – weekly rebates
  • Payment Methods – visa, mastercard, maestro, fast bank transfer, paypal, skrill, neteller, wire transfer
  • Minimum Deposit – $100
  • Demo Account – free unlimited
  • Mobile Apps – iOS, Android

→ Click here to open a trading account with Markets.com

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

AAAFX

AAAFX LogoAAAFX is a Greece-based company that is regulated in the EU by the HCMC, and although they are not necessarily one of the most well-known forex and CFD brokers, they are ideal if you are looking to copy trade other signal providers because they are fully integrated with ZuluTrade.

You can choose to open either a classic account, which enables you to trade currencies, metals, commodities, indices and cryptocurrencies manually and copy trade other signal providers on the ZuluTrade platform at no extra cost, or a profit sharing account, which is designed to be used exclusively for copy trading other ZuluTrade signal providers.

  • Headquarters – Greece
  • Founded – 2008
  • Regulation – HCMC
  • Leverage – up to 1:30
  • Instruments – forex, metals, commodities, indices and cryptocurrencies
  • Charting Software – MT4
  • Registered Accounts – unknown
  • Bonus – none
  • Payment Methods – credit/debit/pre-paid cards, wire transfer, bitcoin, skrill, neteller
  • Minimum Deposit – $300
  • Demo Account – free 14-day MT4 demo account
  • Mobile Apps – iOS, Android

→ Click here to open a trading account with AAAFX

These are some of the forex brokers that are currently recommended, but if you are still unsure about which one you should open an account with, here are some of the main factors to consider when choosing a forex broker:

Regulation

One of the first things you should do is to check that a broker is fully regulated by a reputable governing body to ensure that they are fair and honest, and can be trusted to look after your money and pay you back when you want to withdraw. So a Europe-based broker should be regulated by CySEC or HCMC, for example, and a UK-based broker should be regulated by the FCA.

Account Type

You will generally find that brokers will often provide you with a choice of different accounts. Some of the larger companies will offer ECN accounts, which offer tight spreads and are more suitable for well-capitalized experienced traders, whilst others will offer standard and micro accounts that are more suitable for beginners because they have a lower minimum deposit and smaller trade sizes.

Instruments

If you only intend to trade currency pairs, then a standard forex broker will generally suffice, however if you would like to apply your strategies to other markets as well, then you may want to look for one that offers trading on metals, commodities, stocks, indices and cryptocurrencies via CFDs.

Spreads

If you are trading the daily, weekly or monthly charts, then the spreads (and commissions) won’t really matter too much because they will generally be covered many times over by your profits, if you are successful. However if you are placing multiple trades per day or even several trades per week, then these trading costs will really start to eat into your profits. Therefore it is always beneficial to look for a company that offers ECN accounts, or offers low spreads on their standard accounts.

Leverage

The new ESMA regulations prevent brokers from offering leverage in excess of 1:30 to Europe-based traders, so this is no longer an important factor if you reside in Europe. However if you are based in a country that has no such restrictions, you can still find brokers that will offer a lot more leverage than this if this is something that you require.

Charting Software / Trading Platforms

You will generally find that some charting packages will be more useful than others because they will be easier to use and will offer a lot more indicators and customization. Most of the top brokers will provide you with the Metatrader 4 (MT4) or MetaTrader 5 (MT5) platform, which are perfectly fine but both look a little dated now. A lot of traders would prefer to be given access to TradingView or the ProRealTime platform, for instance, when they join a broker, both of which are very user friendly and feature-rich. The brokers that offer very basic charts or their own in-house charting software are generally best avoided.

Demo Accounts

A lot of traders don’t really want to open a live trading account and start trading right away because they want to practice trading with pretend money first of all and don’t want to actually risk their own money. Therefore it is always a good idea to find a broker that offers a free demo or practice account, and preferably one that doesn’t have any time restrictions.

Deposits / Withdrawals

If you have limited funds to start trading forex, then you should look for a forex broker that has a low minimum deposit. Most non-ECN accounts will have a minimum deposit of between $100 and $300, which is enough to get started. In addition, it is also worth looking at the range of deposit and withdrawal options that are available because some will only offer credit card, debit card and bank transfers, whilst others will allow you to make deposits and withdrawals using Paypal, Skrill, Neteller and even Bitcoin, for example.

Execution / Performance

It can be incredibly frustrating when you find a perfect set-up and enter a trade (or want to close a profitable trade), only to find that it gets rejected because the platform is too slow to execute the transaction or the platform suffers downtime at the critical moment, for example. Therefore you should always choose a broker that is known to have a reliable trading platform.

Customer Service

There will often be occasions when you have problems depositing or withdrawing money, or have issues with a particular trade, for example. Therefore you ideally want to find a broker that has a live chat function where you can talk to someone instantly, rather than a basic email service where you may have to wait several hours for a response.

Mobile Apps

There was a time when the vast majority of currency traders traded the markets of a desktop computer or laptop. However nowadays there are a growing number of traders who want to monitor their positions and potentially open and close trades on the move using their phone or tablet devices. So it is always a real bonus if a broker has their own mobile apps that you can use on your favorite device.

Bonuses

There are now some restrictions about offering bonuses to new clients, especially in Europe, and I wouldn’t necessarily recommend that you join a broker just because they offer a generous first time deposit bonus, but you may still want to see if there is any bonus available when opening a new account.

Educational Material

Seasoned traders don’t really require a lot of educational material and resources because they will generally know how to trade and know how to use the various charting platforms. However if you are new to currency trading, you may want to look for a broker that offers a number of educational videos to help you learn how to use their platform and understand how the markets work.

Copy Trading

The concept of social / copy trading has really grown in popularity in recent years, and as a result of this, a number of companies have set up their own integrated copy trading program where traders can automatically copy trade the signals of other profitable traders. Therefore this feature could be a key requirement for anyone who is struggling to make money from their own trading strategies.

Negative Account Protection

In the past a lot of brokers didn’t offer any kind of protection in the event that you blow up your account and go into the red with one or two disastrous trades. Nowadays most brokers are required by law to offer negative account protection, but you should still check to make sure this is offered by your chosen broker just to be on the safe side.

Segregated Accounts

Similar to the previous point, a lot of brokers are required by their regulatory body to use segregated accounts to protect their clients deposits in case they go bankrupt, or engage in dishonest or fraudulent behaviour, but once again you should always check that a company follows this practice for your own protection.