What Makes A Great Forex Broker Review?
Traders won’t have much success trading if their Broker of choice doesn’t stack up in all the right areas. The lack of clear rules and regulation surrounding Forex trading creates not only great opportunities for broker and trader but also huge risks, especially for those who engage with shoddy brokers.To help traders, our team at Compare Forex Brokers have developed comprehensive forex broker comparison tables and detailed reviews. There are many things we have considered in our online resource from candid descriptions and features to the advantages and disadvantages of each forex broker.
We want traders to avoid the dark and sinister side of derivatives trading so we carefully choose and publish the most accurate information available regarding Forex providers. All brokers that feature on our website are highly reputable and are regulated nationally. We also try to differentiate between Forex brokers geared towards beginners, intermediate and experienced traders. In the table below you will notice a star rating based on the forex broker reviews we put together. For example, IC Markets received 3.5 stars based on 40 reviews while CMC Markets got a low 1.5 star review from 103 people. Pepperstone, our broker of choice, got 3.5 stars based on 92 reviews and GO Markets 2.5 stars based on the highest number of reviewers at 223. ThinkForex also achieved a 3.5 star score.
Our reviews are based on data obtained from within trading accounts and also from Forex broker websites. However, what determines a good or bad forex broker review and what affects that broker’s star rating?
How traders choose the best forex broker – important facts
Finding the best forex broker that suits one’s needs is not easy as it takes lots of research. Hundreds of online brokerage firms are now competing for customers and there are many companies, some reliable and others less so, that traders need to differentiate between. One of the ways to find out if the Forex company meets their needs is to find and read our online Forex broker reviews. It is one of the easiest ways to get all the useful information about a particular broker and whether it is recommended by experienced professionals or not.
What affects our reviews and how to get great forex broker reviews
Basically, traders want forex brokers who they can trust when it comes to their money. In any case, to make the process of finding a broker simpler, a review of a certain brokerage company covers most of the key points of comparison between forex brokers. Read on as we go through some of the criteria and opportunities that dictates the good or bad review a company gets.
Most reputable online forex brokers will submit to the regulation to one of the main financial regulatory agencies around the world. Some forex brokers are regulated in more than one country. It is this regulation that provides users the security of knowing that the forex broker is being monitored by the independent regulatory authority in order to protect users. All legitimate forex brokers in Australia must be registered within Australia which regulates forex trading in Australia.
When users submit and store their personal information on the Internet, the data may be illegally used against their will. Therefore, one of the priorities and why forex brokers receive a positive review is their user’s data security protection which is done by encrypting all data entered into online forms. Many forex companies use the standard SSL encryption, or better protection. The second key factor involves the secure storage of data, so that the data will not be lost in case of a server crash or other disaster. Many online forex brokers use the options of data duplication with a high level of security.
One of the factors that affects Forex broker reviews are spreads. Simply explained, the spread is the difference between the offer price for a particular currency pair and the bid price. The lower the spread or cut a Forex broker takes when providing currency pairs for buying or selling the better and the higher the review that broker will usually score.
Fees and Commissions
Many brokers are not satisfied only with dealing on their spreads. In this case, many charge a commission or a fee for each transaction. Additional fees may also be included in the withdrawal or deposit. The lower the commissions and fees for transactions are, the better the review is.
Many brokers require a deposit to open a demo account in order to start with forex trading. In many cases, the more money you invest, the more trading platforms are available to you. In most cases high minimum deposit are off putting to the beginners, therefore the minimum deposit greatly contributes to each review.
Having a variety of account types, from demo accounts for beginners and practice trading, to standard accounts and VIP accounts for moderate to larger deposits greatly affects great Forex broker reviews.
It refers to how many positions you can control with a certain amount of money for it. Forex brokers now offer a leverage rate as high as 500:1. This means that with a $ 100 investment you can control $50,000. Of course, this can result in larger gains, as well as larger losses, so every user needs to be familiar with this fact and to use leverage wisely.
It is important to have different trading platforms to suit the needs of different trading styles. Whether it’s a broker’s proprietary trading platform or an independent trading platform like MetaTrader 4 platform it’s necessary that the platform is easy to use and have all options user might need.
Having a strong customer support team greatly contributes to the positive grade in the review. It’s essential to have a highly professional and competent team that can be contacted over the phone, live-chat or an e-mail 24 hours a day, during weekdays when the markets are open.