THE 5 BEST FOREX BROKERS IN 2018

 

When joining forex trading for the first time, every trader wants to work with the best broker that can help them gain a large amount of profit. Nevertheless, they do not know the basic standards of a good broker. From my experience, I recognized that the fundamental standards of a high-quality broker consists of credibility, trading costs and customer service. Here is the list of the top 5 best brokers in the field:

Exness reviews: 9/10

– HotForex reviews: 8.5/10

– XM reviews: 8/10

– FBS reviews: 7.5/10

– FxPro reviews: 7/10

CREDIBILITY

In order to evaluate the reliability of a broker, traders must check its regulatory status first. To explain, regulations are licenses provided by financial organizations to keep the trading activities of brokers under supervision. Licenses are made to keep brokers under control, therefore the trading conditions of brokers are more or less also limited. Brokers that operate without licenses is extremely dangerous to the money of customers. A broker with many licenses are not any more reliable, it is just more restricted. For instance, brokers with multiple licenses might have high spread, low leverage and high commission fee – which is detrimental to the traders’ income. In conclusion, it is recommended that traders should look for brokers with one to two valid regulations. Below is the table that illustrates the regulations possessed by the top brokers:

Broker names Regulations
Exness CySEC, FCA
HotForex CySEC, FSCA, FCA
XM CySEC, FCA, ASIC
FBS CySEC, IFSC
FxPro CySEC, FCA, DFSA, FSB

TRADING COSTS

The trading fee has a direct impact of the profits that traders gain, therefore it should be checked carefully. Traders are advised to examine the spread fee, commission fee and deposit requirement.

First of all, spread fee is an important factor of the transaction fee. To explain, spread is the discrepancy of ASK price and BID price. Since high spread will result in high trading costs, traders should definitely avoid brokers with high spread rate. Following is the specific spread rate of the best forex brokers 2018:

  • Exness: 0.7 pip
  • Hotforex: 1.1 pip
  • FBS: 1.1 pip
  • XM: 1.7 pip
  • FxPro: 1.7 pip

Any traders should be familiar with regular account and ECN account, since these are the two main account types in forex trading. As for the ECN account, this account charges high commission to make up for the loss of spread rate (which is close to none). I have made the list of commission price of ECN account of each broker:

As for the final criteria – the minimum deposit requirement – this is a category that is always examined thoroughly by professional traders. Meanwhile, beginners are more likely to search for brokers that require a small amount of deposit since they are new to forex trading. Here is the deposit list of each broker:

  • Exness: $1
  • FBS: $1
  • Hotforex: $5
  • XM: $5
  • FxPro: $500

CUSTOMER SERVICES

Facing difficulties in forex trading is a normal thing, that is why brokers should be aware of this feature and establish a reliable support team. Personally, I have my faith in brokers that are available all the time and open local offices so that traders can have a face-to-face conversation with the support group. Moreover, brokers that provide support in local languages are also a big help to traders who are not fluent in English. If a broker can do that, it can easily become one of the best forex brokers in Thailand, Indonesia, Malaysia, Vietnam… Finally, traders should find brokers that provide local banking systems to lower their transaction costs.

Below is my rating for the customer service teams of these 5 brokers:

  • Exness: 9/10
  • HotForex: 8.5/10
  • XM: 8/10
  • FBS: 7.5/10
  • FxPro: 7/10