How to Choose a Forex Broker

how to choose a forex broker
1.
4.8 stars from 350 ratings

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Trade Nation is a truly Multi-Regulated Forex and CFD broker with offices located globally. They offer 24/5 support from market open to close.
CFD service. Your capital is at risk.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.
2.
4.7 stars from 509 ratings

Broker Verified

Markets.com provides a unique trading experience for forex and stock traders alike. They are a global multi-regulated CFD broker regulated in SA.
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
4.6 stars from 785 ratings

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AvaTrade is truly a global broker, regulated across 5 continents. Their Cryptocurrency markets are available for trading 24/7. Local support.
CFD service. Your capital is at risk.
71% of retail investor accounts lose money when trading CFDs with this provider.

The Forex market is so large that the prospect of having to scroll through all of the available brokers can be overwhelming. Choosing a forex broker to trade with can be a challenging job, particularly if you are unfamiliar with what to look for.

In this guide, we are going to discuss how to choose a forex broker by following six simple steps.

1. Regulations

The first and most important quality of a successful broker is a high standard of security. After all, you wouldn’t hand over thousands of dollars to someone who actually claims to be legitimate, would you?

Fortunately, assessing a forex broker’s reputation is not difficult. Regulatory bodies work all over the world to distinguish the honest from the deceptive.

The most reputable regulatory bodies are ASIC (Australian Securities and Investments Commission), FCA (Financial Conduct Authority), FSCA (Financial Sector and Conduct Authority), and CySEC (Cyprus Securities and Exchange Commission). Hence, you should choose a regulated Forex broker in order to start forex trading and keep your funds safe when trading the Forex market. FXCC Forex Broker and Plus500 (a multi-regulated CFD Broker) are examples of a CySEC regulated entities.

2. Transactions Cost

Whether you like it or not, you will still be exposed to transaction costs as a currency trader.

Any time you enter a trade, you’ll have to pay either a spread or a fee, so it’s only reasonable to look for the most cost-effective options.

You may need to make a trade-off between low transaction volume and a more dependable broker at times.

See if you need tight spreads for your trading style, and then consider your options. It all comes down to striking the right balance between security and transaction costs.

how to choose a forex broker, Businessman walking on abstract white and glowing arrows on concrete background. Different direction and success concept.

3. Trading platform

Most of the forex trading takes place on the brokers’ trading platform. This means that your broker’s trading platform must be user-friendly and secure.

Often check what a broker’s trading platform has to offer while looking for a broker.

Broker
Rating
Regulated
Bonus
Min. Deposit
Max. Leverage
1.
Trade Nation Broker Review
4.8 stars from 350 ratings

Broker Verified

FCA, FSCA, ASIC, SCB

N/A

USD 1

1:200

Review Sign up Sign up
CFD service. Your capital is at risk.
Financial spread trading comes with a high risk of losing money rapidly due to leverage. You should consider whether you understand how spread trading works and whether you can afford to take the high risk of losing your money.
2.
Markets.com Broker Review
4.7 stars from 509 ratings

Broker Verified

FCA, ASIC, CySEC, FSCA, BVIFSC

up to 25%

USD 100

1:300

Review Sign up Sign up
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
AvaTrade Broker Review
4.6 stars from 785 ratings

Broker Verified

FSCA, ASIC, B.V.I FSC, FSA

up to 20%

USD 100

1:400

Review Sign up Sign up
CFD service. Your capital is at risk.
71% of retail investor accounts lose money when trading CFDs with this provider.

4. Education

Look for a section on the website assigned to education, which includes webinars and tutorials on the fundamentals of forex markets, common currency pairs, and market forces that cause buying or selling pressure.

These articles should provide specific details on how central banks influence currency markets when they increase or lower interest rates and how traders should plan for these periodic events.

5. Execution

It is required that your broker fills your orders at the best possible price.

There is no reason for your broker to not fill you at, or very close to, the market price you see when you press the “buy” or “sell” button under normal market conditions.

6. Deposits and withdrawals

Good Forex brokers will make it simple for you to deposit funds and withdraw your profits.

7. Customer service

Since brokers aren’t flawless, you should choose one with whom you can easily communicate if problems arise.

Choosing a Forex Broker Summary

When looking for a Forex broker, take your time because a poor decision can be costly. Top brokers would have a wealth of capital, low trading fees, and access to the global interbank system.

Even if you open a small account in the hopes of turning it into a small fortune with your trading skills, they’ll treat your money with care.

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Trade Nation TN Logo

$1 Minimum Deposit

Trade Nation TN Logo

$1 Minimum Deposit

South Africa's Top 3 Brokers

Minimum
Deposit

USD1

Welcome Bonus

N/A

Minimum
Deposit

USD100

Welcome Bonus

25%

Minimum
Deposit

USD100

Welcome Bonus

20%

South Africa's Top 3 Brokers

Trade Nation TN Logo

Minimum Deposit

USD1

Max. Leverage

1:200

Welcome Bonus

N/A

Markets.com Logo

Minimum Deposit

USD100

Max. Leverage

1:300

Welcome Bonus

up to 25%

AvaTrade Logo

Minimum Deposit

USD100

Max. Leverage

1:400

Welcome Bonus

up to 20%