It shouldn’t be that hard to look for the best forex brokers available.

So, you have already done your homework in studying forex trading. You have tested and developed a trading strategy which you feel can be profitable when you apply it to you own trading of your very own live forex account. And most probably you have also done you own demo trading. Otherwise, how you have tested out your trading strategies if your haven’t practiced trading using a demo account, right?


And now, you are ready to choose the best forex brokers from which you shall choose where to open your real, live account.

Read on the list of 10 factors that you should consider when deciding on the best forex brokers you shall entrust you money with.

1.) Accreditation

Of course, forex trading is a form of investment. And any form of investment of this kind requires money. And obviously, if real money is involved, you should make sure that you are only dealing with the most trusted forex brokers to handle your investment.

How do you learn which are the best forex brokers with whom you can trust your money with?
Look for help from the government institutions tasked to regulate and oversee these investment brokers for you country. Depending on where you are, check if they are accredited with the FCM and the CFTC.

Another very useful tip that I can give you is to do some research on the organizations of these forex brokers and see which ones are the most recognized among its peers. There are even annual awards given out by these organizations. So, you can have a clearer idea of which ones are the most popular, and which are the best forex brokers as voted by the forex brokers themselves.

2.) Capitalization

Different forex brokers have different sizes according to their capitalization. Of course, you would want the best forex brokers who would stand the test of time and be stable enough no matter how the market moves.

And the way for you to measure the stability of a forex broker is to compare them through their capitalization. The bigger the capitalization, the more stable it is to support itself in this very risky and capital-dependent investment of forex trading.

3.) Spread

The spread is the difference between the buying and selling price in the forex broker’s price quote for you. It is in the spread where the forex brokers earn their income.

As you may probably already know, since forex brokers do not charge you with a commission explicitly everytime you trade, they earn from you through the spread. Therefore, those forex brokers who quote with large spreads usually earn more from you with every trade that you make.

Now, depending on your trading strategy, sometimes a pip or two difference in the price quote would not matter to you. But if you rely on a scalping strategy where one pip may spell the difference a a profit for many trades that you make, then you should seriously consider looking for the best forex brokers who can give you the lowest spreads for the currencies that you intend to trade.

4.) Minimum Capital Requirement

There are many different types of forex brokers for different types and sizes of forex investors. By sizes, I mean the amount of capitalization that a forex trader can invest. And equally, there are also different types of forex brokers catering to these different types of investors.

Some would accept small capitalization of as low as USD200. While there are others who require their investors to initially invest USD1,000 when opening an account with them. Depending on how much money you are willing to initially invest, you should try to find the matching forex broker who would be willing to accept your investment according to their minimum requirements.

5.) Account Types Offered

This one is closely related to the minimum capital requirement in the sense that small account capitalization usually can only be allowed to trade using a mini, or even a micro account.

USD1,000 may seem like a sufficient amount when traded using a mini account, or even a micro account. But when that USD1,000 is used for a standard account, the account does not seem to be sufficient enough anymore. The size of lots that would be used should determine if you account is still within the acceptable risks for every trade that you make.

So depending on your amount of capitalization you are willing to invest, make sure that the forex broker that you choose offers that suitable type of account for the size of your investment. Otherwise, you may just be exposing your investment to an unnecessary amount of risk.

6.) Methods of Deposit and Withdrawal

When starting out in forex trading, investors commonly just try to find out how it is to deposit money into their accounts when trying to open an account with a forex broker. After all, many of them might be too excited to just get it on with their trading.

But one common mistake that these forex investors make is not clearly finding out about the withdrawal of money from their accounts.

Assuming that they become successful with their forex trading, they only find out certain restriction about withdrawing money from their account once they are already in the process of doing so.

Some forex brokers may allow you to deposit and withdraw using a variety of methods – Paypal, direct deposit, wire transfer, check deposit. It is extremely important that you know these things before opening an account with any forex broker of your choice just to avoid any complications in the future, especially when you would already need the funds from your forex account.

7.) Trading Platform

While the Metatrader platform is probably the most popular type of trading platform which many of the best forex brokers use, it is not the only trading platform available.

This is an important factor that you should consider especially if you were trained in using trading robots which work only with specific trading platforms.

And even if you do not use trading robots for your trading, manually trading in a trading platform that you are not familiar with can pose some problems for you. So make sure that you are comfortable using the trading platform of the forex broker that you choose.

8.) Leverage

It is widely known that leverage is the factor which makes forex investments very lucrative since it multiplies the profits (also the losses) that you make with every trade that you make.

Again, depending on which country you are in, there may be certain restrictions as to the amount of leverage forex brokers are allowed to give to your account.

So, whether your broker is allowed to give you only a 50:1 or a 200:1 leverage, you must always take that into account as it can have an effect on the size of lots that you use in your trading.

9.) Execution

By execution, what we should look for are the best forex brokers who almost always execute your orders according to the price range that you have specified. Too much slippage, or too many unfilled orders should be a redflag that your forex broker is not really good in the execution of trade orders.

This is somewhat a tricky part of evaluating which are the best forex brokers that you should go for. For you may never know the quality of execution a forex broker provides to its clients until you are actually doing your live trading with them.

So how do you know which are the best forex brokers in terms of execution, even before you open a real, live account with them?

Simple. Read feedbacks from other forex traders. Read the various internet forums and learn what other forex traders have to say about the different forex brokers, especially regarding the execution of trades. This way, you do not have to learn these things the expensive way.

10.) Customer Support

We know that the forex market is a 24×5 global market. Transactions do not stop once it gets going at the start of the week. Therefore, it is not only important that you can trade anytime that the forex market is open. You should also be able to troubleshoot any problem arising whenever the market is open.

This is why the customer support service of the forex broker that you should choose is very important. The market never sleeps. And so do the opportunities that are present in the market. If a problem with your account ever happens, you should make sure that you can contact your forex broker immediately to resolve it. Otherwise, other opportunities for trading would just pass you by.

It is even best if you can get a hold of your forex broker’s support service thru phone so that problems can be solved a lot faster and feedback can be received immediately.

The above tips are just basic guidelines for anyone looking for the best forex brokers to handle their forex investments. Do your research. Get feedback from other forex investors. Read what others have to say regarding their experiences with the different forex brokers. Only then can you choose for yourself the best forex broker fit for you and your trading.

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