A forex broker is the key figure on the foreign exchange market. These are the companies facilitating currency exchange transactions for both retail and institutional traders. Choosing the best broker can take a little of your time if you browse our list of the top companies. Our website contains the reviews of top online brokerages combined with detailed side-by-side comparison of the features of the specific FX broker. The highest ranking in our ratings is based on the whole array of factors with reliability, reputation and online trading experience valued most.
|FINMA, ARIF||$5000||Dukascopy Bank|
|NFA(US), CFTC(US)||$400||MB Trading|
|Hellenic Capital Markets Committee(Greece)||$300||AAAFX|
All forex broker reviews
Before you start foreign exchange trading you should decided which broker is good for you to open a live account with. Reading the reviews based on our own experience trading with any given broker as well as other forex traders’ you should be able to choose which brokers provide the best conditions to serve you as a reliable partner facilitating your online currency exchange transactions.
Online currency trading contains an inherent high risk of your losing your capital. The same is true for trading other markets such as the stock market as well. So if you are just learning how to trade it is recommended before depositing your hard-earned cash into the live account to first open a demo-account to practice and see how your trading system works. After you see positive results and you make a decision to trade live opening a micro or mini account with a reputable company seems like a non-brainer.
With time the way people trade has changed. The trading technolgies have not stood still. Today just one broker can provide you with different ways you trade forex. This all depends on your needs and size of capital you are ready to deposit into your trading account. Let’s compare them a little.
Market-makers and dealing desks
This dealing desk (marketmaker ) type of a brokerage is highly not recommended to trade forex for the long-term trading career. In a few words they not only earn money by getting your spread but are practicing such things and requotes, stop hunting not to make it hard for you to trade well and leave your deposit to themselves because they actually hardly ever get your $100 or $500 to the interbank market but rather run it inside their orderbook. These types of companies are often the synonims of small offshore dealers offering high leverage and huge bonuses that are unregulated. They are called market-makers because they make the “market” for traders. When the trader wants to sell the dealer buys from him or buy – then the market-maker sells to him.
With NDD you are connected you with one of liquidity providers (banks, other big FX brokers) they have agreements with that offers the best price for your order. With No Dealing desk your oder does not do through the dealing desk thus there is no conflict of interests between you and your forex broker.
ECN brokers allow all forex market participants to interact with each others orders. Every client can act as a liquidity provider for other traders. This way banks, hedge funds, other big players and individual traders can see the market depth and compete for the best bids and offers in the Electronic communication network. ECNs are the ones that provide the provide the lowest spreads. ECN is often used in combination with STP acronym meaing straight-through processing – ECN/STP – which basicly means the broker automaticly send traders’ orders to its liquidity providers matching the best price that was chosen by the system.
To get more information and tips read our Forex Guide articles.