The most important criteria in the forex broker test
The trade offer in focus
The trade offer of a forex broker – especially the number of tradable currency pairs – is particularly interesting for traders. The most popular pairs, the so-called majors, include currencies that are traded against the US dollar. They are especially popular with newcomers, as they are very liquid and usually associated with low trading fees. But experienced traders don‘t want to miss minors and exotics. Therefore, not only the number of foreign currencies should play a role in the decision for or against a broker.
Minors and exotics
The commercial activity of minors and exotics in the market is much lower, they can be a challenge even for experienced traders. The number of exotics varies among individual brokers. If you are looking for a broker with a broad trading range, it is advisable to take a closer look at the minors and exotics. For traders who do not necessarily want to commit to a financial instrument, some Forex brokers have other trading options available beside currency trading, such as the CFDs or classical stock trading.
- The number of tradable currency pairs is an important aspect in comparison.
- The range of majors, minors and exotics is particularly enlightening.
- Other trading options, like CFD or stock trading, may be interesting.
The conditions: trading costs and possible fees
A broker comparison offers the opportunity to estimate the trading costs of individual providers at a glance. The spreads provide information about fees incurred. Usually the major spreads are specified in pips. In order to get a comprehensive overview, it is advisable to also look at the spreads of the minor and exotics. Possible additional costs shouldn‘t be underestimated. While the trading account is often free of charge, many brokers charge fees for inactivity over a period of time. Further costs may arise for real-time prices, add-ons for trading platforms or, depending on the payment method, also for deposits and withdrawals or for a certain number of payments per month.
In addition to trading costs and possible fees, leverage is an important aspect in a Forex broker comparison. By leverage you can move more capital than what is available in the trading account. Some brokers stagger the leverage on invested capital. Particularly high levers are more interesting for experienced traders. So while leveraging is definitely an interesting point, it does not necessarily dictate your individual needs.
- Get an initial overview of the costs using the majors, minor and exotic spreads.
- Keep in mind possible fees for additional services as well as deposits and withdrawals.
- For more experienced traders, leverage can also be an important factor.
The selection of account models in a Forex Broker Comparison
The account at a forex broker should be tailored to the needs of the trader. This applies to possible fees as well as minimum deposits and benefits. More and more brokers offer you the choice between accounts for beginners, advanced or VIPs. Often accounts vary in terms of deposit levels, but support and trading platforms may vary as well. The trading volume can also determine the account type, so that traders might begin with a starter account and be upgraded by volume to another account. Sometimes you can immediately opt for a higher account. When comparing brokers the following questions should be in taken into consideration: What services do I get with each account? How do accounts differ? Are there business offers?
Account opening fees
With some providers opening a trading account is free, others require a deposit amount in the four-digit range. The minimum deposit with Forex brokers varies, but is usually relatively low. Especially for traders who have no previous experience in foreign exchange trading or have a limited budget, the minimum deposit can be decisive. Therefore, it plays a significant role in a Forex broker comparison.
- Check if a broker offers different accounts for different levels of experience.
- Compare the services offered by the accounts..
- Account opening fees are particularly relevant – does the broker require a minimum deposit and does this correspond to your budget?
Trading platforms and apps for mobile trading
The trading platform is the basis for trading. An optimal platform has an intuitive user interface and is easy to operate. Specially developed software solutions are often available depending on the broker. But many providers rely on existing ones like MetaTrader 4. In a Forex Broker comparison, the following aspects are interesting in terms of the trading platform:
- Selection of trading platforms
- Structure and handling of trading platforms
- Extras and tools
- Mobile trading via apps for smartphones and tablets.
Experience shows that many brokers provide multiple trading platforms. The structure of the platform is important and a customizable interface is particularly advantageous. When comparing trading platforms, the focus should be on indicators and trading systems offered. When creating a strategy, indicators are indispensable. The more support the platform offers, the better you can focus on actual trading. Also, opportunities for trading to go have become a must in order to be flexible at any time. Apps for smartphones and tablets should be designed effectively. A clear structure with an overview of the current trades is particularly helpful.
- Which trading platforms are available? Tip: MetaTrader 4 is especially popular.
- Structure and options of the trading platform should convince.
- Apps for mobile trading are indispensable.
User-friendliness of the website
Only a broker who can convince with a user-friendly and attractive website can prevail as best Forex provider, since this is the virtual business card and crucial for a first impression. When comparing providers, you should check first that the complete website can be called up in a language you can understand. This is sometimes found only at a second glance. Some brokers have an English language website, but it is often possible to set the language to your preference. Make sure that the translation is complete and easy to understand. Another important factor is the navigation – it should be sensible and guide you through the offer quickly. The one-click variety is particularly popular, because everything about the broker‘s offer can be found immediately. Make sure that the following information is complete:
- Contact options
- Cost models and fees
- Offer for Forex trading
- Information about the accounts
- Terms of Service
Information about the broker himself or a FAQ area may be helpful, too.
- The website should be available in a language that you understand.
- Is all relevant information, such as the GTC, available and easily found?
- Pay attention to easy handling, clear design and transparency.
Customer Support – Contact and Competence
In the course of your Forex experience you may find that trading, payout, or trading platform issues arise. Therefore, we place great value on the contact options and the quality of customer service when evaluating a provider. Many brokers provide a live chat; besides, you can usually reach the support via hotlines, e-mail or contact form. In any case you should be able to contact a member of staff free of charge. Equally important is which languages the support team speaks. Quite often the support staff are English speaking, but many brokers also offer other languages. In addition to conventional support, some brokers also provide a VIP service. Depending on your account or status, for example, you may even get a personal account manager at some providers.
Competence, accessibility and response time at a glance
There isn‘t always round-the-clock care, but you should have a contact person at the most important times. Of course, the competence of the support is crucial. Only a provider who can answer questions professionally is awarded best forex broker in the area of service and support. Besides, you should not have to wait longer than 24 hours for a written response.
- Make sure customer support speaks your language.
- Check which contact options are available and whether any costs – such as for hotlines – arise.
- Don‘t hesitate to contact the support once in a trial and to make sure that you receive competent, friendly answers.
Payment methods and conditions for deposits and withdrawals
Since you have to deposit money into your trading account before you can start trading and, in case of success, you also want to transfer the profit to your private bank account, you should scrutinize the possible payment methods. Most Forex brokers offer the following:
- Credit card
- Bank transfer
- Online payment services such as Neteller or Skrill
The credit card is still a popular means of payment, since transactions are uncomplicated and processed within the shortest time possible. The transfer, in turn, is considered very secure, but order processing usually takes several days. Meanwhile, many brokers also allow deposits and withdrawals through online payment services such as Skrill, Neteller and PayPal. These payment methods are popular because transactions are very fast.
When evaluating a broker, however, you should also consider possible fees and limits. It may well be that payouts, for example, are only possible starting from a certain amount. Some providers allow only a certain number of payments per month, so each additional transfer comes with fees. Also find out about the ways in which the payment can be made: Many brokers allow withdrawals only the way the deposits are made.
- Make sure your desired payment method is available.
- Ask about possible fees for deposits and withdrawals.
- Familiarize yourself with the terms of payment and any limits.
Additional offers can be crucial in a Forex broker comparison
Many brokers offer valuable additional offers to their customers – starting with education and training. Only providers who have well-developed education and training offers deserve the award of best Forex broker for beginners. But even experienced dealers benefit from offers such as webinars or video tutorials. Some brokers even offer seminars, while others limit themselves to a blog with tips or a kind of trading academy. Also useful are offers such as an economic calendar or market analysis tools.
Forex demo account – useful for beginners and experienced traders alike
If you have no previous Forex experience, you should ideally look for a broker with a Forex demo account. Newcomers have the opportunity to get to know the platform and make their first trades without investing their own money. Often it‘s possible to use the demo account not only parallel to, but before opening a trading account. But even when already registered with a broker, you can use the demo account, especially if it is available indefinitely, to optimize your trading or to test a new strategy.
- Find out about additional offers, such as training opportunities.
- At best, tools for market analysis should be available.
- Especially newcomers should choose a broker providing a demo account.
Security, regulation and deposit insurance
Regulation and deposit insurance are important issues, even if they are no guarantee that you get a reputable Forex broker. It is not possible to exclude Forex fraud in trading, but you can be sure that regulated providers are licensed to offer their services on the market. The authorities responsible check the brokers' work at regular intervals. To make sure that a broker is really regulated, you can look up the directory of the authority specified on the broker‘s website and examine the licensing or possible stock market quotations among other things. You should also inform yourself about the amount of the deposit insurance. It offers additional protection and secures client funds in the event of bankruptcy up to a certain amount.
If you are worried about Forex fraud with regard to the data submitted, you might check some issues here. In a provider comparison provider, you should make sure that the data transfer is encrypted. By choosing a secure password, you can also contribute to data security yourself.
- Check the regulation and find out about the amount of the deposit guarantee.
- Data security (SSL encryption, secure login data, etc.) plays a significant role.
- There is no guarantee of integrity, but licenses, stock market quotes and regulation are important clues.
Trade press opinions and awards
Trade press information about a broker is helpful in the assessment. Forums, on the other hand, are less recommendable: positive opinions might be generated against payment, while negative contributions could be based on frustration due to personal misjudgements in trading. Well-known brokers who have been on the market for some time or who have already received awards such as „Best Forex Provider“ are often mentioned in the press. Many brokers link to media coverage on their website. Take advantage of this opportunity and gain an overview of the current media career.
Even if a broker has been awarded best Forex provider in the past, it is worthwhile to see if there are certifications or similar. Awards are important to a broker to build trust with the customer. Various magazines subject brokers to a test. They repeatedly give titles and awards for Forex trading. The platforms, the support or security are regularly scrutinized as well. Therefore, various awards may be a good guide to better assess the broker. Since most brokers are proud of them, you can usually find the awards listed on the website.
- Study opinions from the trade press.
- Articles and reviews about a broker can be enlightening.
- Possible awards of a broker are also valuable information.
The foreign exchange market – one of the largest markets with steady development
The Forex market is considered to be particularly liquid, is one of the largest markets and continues to grow steadily. The daily trading volume is large, and forecasts predict a strong development for the foreign exchange market. Therefore it is hardly surprising that trading in currency pairs has been profitable for traders for years – and at the same time, the number of brokers trading from home is steadily increasing. For many investors, there is no doubt that it is particularly interesting to be able to quickly generate high income if successful. The trading itself is easy to understand: a trader estimates whether the prices of selected currency pairs will rise or fall and then opens a trade. Nevertheless, the risk of losing the capital invested should not be underestimated in trading.
Assessment of further development
The growing interest is beneficial to the market. Added to this are cryptocurrencies, which shape the Forex trade slowly but steadily. Exotics and Minors become more important as well. The increasingly diverse trading opportunities on the platforms appeal to beginners and experienced traders alike. For this reason it can be assumed that liquidity on the foreign exchange market will continue to increase in future.
Using the Forex broker comparison to find the right provider
A valid Forex broker test is based on various criteria, because in order to lay the foundations for Forex trading, you need a reliable broker that suits your individual requirements. In addition to financial aspects such as minimum deposit, trading costs and possible additional fees, the trade offer is crucial. It is advisable not to focus solely on the number of tradable currency pairs, but also to include exotics and minorities. A look beyond the proverbial box cannot hurt either – the trading of stocks or cryptocurrencies could also be considered. On AskTraders you can use a comparison for other products, too, such as the crypto broker comparison.
Once you have found a broker convincing you with the trade offer, you can use other criteria such as additional offers, market analysis options or support to find out if the provider really suits you. Our objective reports on individual Forex brokers are based on the criteria mentioned here and help you to obtain a comprehensive overview of the current offer on the market. Take advantage of our reviews and do not hesitate to use offers like a Forex demo account with a broker to get an even closer overview and decide who you think is the best forex broker.