AvaTrade was founded in in Dublin, Ireland. They enjoy an extremely high and strong level of regulation, making them a favorite for traders who are extremely nervous about the security of their deposit, which in Ireland can be protected by a strong investor deposit protection provision.
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In addition to their longevity and safe reputation, clients know that through AvaTrade they have access to a broad range of asset classes through which diversification can be achieved successfully: AvaTrade offers trading in over 55 different Forex currency pairs, 17 commodities, 20 equity indices, 14 cryptocurrencies, plus 66 individual stocks and shares. Even better, and unusually, 2 bonds and 6 ETFs are also on the menu. The diversity offered here stands out.
Whether you are located within the European Union or not, all branches of AvaTrade will offer you negative balance protection, above and beyond what is mandated by the law. This means that under no circumstances will any client of AvaTrade ever be held liable by the firm for an amount larger than their deposit.
Well-regulated globally, with the Bank of Ireland, the primary regulator. Low leverage for retail traders. Low minimum deposit and in-depth educational tools. High quarterly inactivity fee. Wide asset choice across seven sectors. Unacceptable cost for AvaProtect.
Superior mobile trading platform. Australian regulators are much more relaxed about leverage than their counterparts in the U. For most traders, the standout unique selling point of this broker lies in the incredibly wide range of tradable assets offered, providing an opportunity to trade over ten thousand individual stocks and shares.
These go beyond the typical U. Also, over 60 Forex pairs and crosses, 11 equity indices, the major commodities, and 5 cryptocurrencies including Bitcoin are also on the menu here. Traders can scalp and hedge at this broker, whose fast ECN execution speed makes it a natural home for scalpers. Clients may choose between the MetaTrader 4 and MetaTrader 5 platforms, and shares can be traded through the IRESS trading platform which includes access to level 2 exchange data.
Best CFD Trading Brokers
BlackBull Markets is a relative newcomer as a Forex broker, being founded in in New Zealand, which along with Australia, has become something of a haven for exciting Forex brokerages. Like many antipodean brokerage houses, BlackBull Markets is an ECN broker, offering raw spreads and competitive commissions. New Zealand. BlackBull Markets offers a relatively tight range of tradable assets: 27 Forex currency pairs and crosses, gold, silver, crude oil, natural gas, and 6 major equity indices.
That should not worry the average trader who is more concerned to have a normal range of markets to trade without being overly worried about diversification. BlackBull Markets impresses through a kind of quiet confidence — they do not make extravagant claims, they simply focus on providing the basics required for ECN trading well and at a reasonable cost. Read full review. Squared Financial ,. They examined the most well-established brokerages offering trading in individual stocks, and gave most weight in their assessments of each concerning cost of trading, reliability of execution, and internal and regulatory client protection , while also giving some weight to additional features offered by each broker, mostly concerning ease of use and customer service.
We ranked more than Forex brokers.
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Each broker was graded on at least 50 different variables and, in total, over , words of research were produced. Let us be clear — opening an account and making a deposit at a Forex broker is something you should take seriously. You are putting some of your capital in the hands of a company, and in return, you should expect them to provide the tools you need. The more money you deposit as a percentage of your net liquid worth, the more careful you need to be.
You should also expect that your deposit and profits will be kept in safe custody, and you want to know that that you will be able to make a speedy withdrawal. Our first concern in reviewing a broker is the integrity of the firm , the soundness of their business practices, and the quality of the regulatory framework which they work under.
After all, if you find a broker is not to your liking, there is little damage done if you are able to close your account. Our second priority is determining whether a broker gives value for money to its customers in return for the services it provides.
This is measured mostly by the cost of trading, in spreads , commissions, overnight swap rates and other incidental fees. Of course, generally, the more money you deposit, the more you can expect from your broker in return. After dealing with bread and butter issues, our Forex broker reviews assess how each broker measures up in terms of the range of assets offered for trading, maximum leverage offered to traders, spread and commission models available e.
A good Forex broker should offer consistently good liquidity and smooth execution, which are the mainstays of smooth trading conditions. This is because trading is easiest in such conditions, and loss causing events such as slippage less likely. Liquidity can of course shorten at certain times of the day, making spreads wider at certain time. No broker can be expected to provide narrow spreads just before a major news announcement.
Yet generally, entering and exiting trades should be easy, without any glitches or platform freezes.
Probably the most important factor here is, will you be able to trade everything you want to trade? If you are only interested in the major Forex currency pairs, that will be easy, but if you really want to trade individual stocks and shares, or say, the less common commodity offerings, you will find that not all brokers offer them, although most offer some of them wrapped as CFDs. There is nothing wrong with being diversified, but you should keep in mind that the cost of trading such relative rarities tends to be higher than the cost of trading Forex. Also, you might consider opening accounts with two different brokers, as you could find that there is not one perfect solution but there might be two.
This means that depending upon where you live and what nationality you have, you may not be able to access certain brokers.
Why Compare CFD Brokers
A good Forex broker you also must be affordable. If there is really nothing between your shortlisted brokers, and one has a nicer trading platform, or offers some better minor condition somewhere, then why not let that break the tie? Remember, it is easier to get used to a trading platform you do not initially like, than it is to get used to a broker who gives you a bad overall deal. Unfortunately, many new traders get hung up on small things like trading platforms and bonuses.
These are relatively unimportant.
Almost every Forex broker offers their own mobile trading app. This can be useful if you intend to ever trade using a handheld device. Deposits and withdrawals are usually nothing to worry about, except in a few rare cases. A broker that will not speedily send you funds which you have requested and are in your account, raises a big red flag, and is to be avoided at all cost. Deposits are made speedily almost everywhere, for obvious reasons. Occasionally, you may wish to use a payment method which a broker will not accept, for some reason.
You will have to find another payment method or another broker which accepts your preferred payment method in such a case.
Best Forex Brokers: Top 5 FX Trading Platforms of 2021
Examine the reputations of the brokers making your shortlist, one by one. A quick google search can determine if they have ever been fined by their regulator for a breach of rules , and which rules were breached. Are they a public company? Does their financial position look healthy? Have they been in business a long time? There are plenty of newer Forex brokers which are perfectly sound but using longevity can be an effective rule of thumb.
Your first step in seeking the best Forex brokers is to restrict your search to include only the brokers you feel comfortable trusting as a custodian of your money. Ideally, you should only be looking at regulated Forex brokers , and it is advisable strongly consider the stronger financial centers such as brokers regulated in the U. Consider also whether you would be in a stronger position choosing a Forex broker regulated in the same country in which you live : in the event of any dispute with them, you could be better placed to pursue it more effectively.
Alternatively, you could focus on the offshore center which has the strongest relations with your country of residence — for example if you live in the European Union, you might find it easiest to choose a Forex broker in Cyprus, another E. However, in the case of a problem or emergency, you will want to know that at least a fairly competent customer support team is there ready and able to help you. It could be a good idea to give them a call if you can find any question with your demo account, just to test out how good your potential broker is in this department.
This really is not important, because the internet is full of free Forex education anyway , so you do not need to worry about getting it from your broker. Worry about their trading fees, execution, reliability, and regulation instead. Many brokers offer very low-quality educational materials as a sales gimmick. With many brokers, you will be able to get an account registered and opened, ready to receive your deposit, within a day of submitting your online account-opening form. To some extent, this will depend upon which regulatory regime the broker is subject to, and which country you, the client, is resident in.
Check the minimum deposit each potential broker requires from you in order to open your account. Deciding how much money you should deposit with a Forex broker is also important. Not only should you only deposit funds which you can afford to lose , it is also worth considering whether all the funds you can afford to lose should be in the custody of only one broker.
You could consider splitting the amount in half and opening accounts with two different brokers , for example, as an effective way to limit your overall risk as a trader. There can also be other valid reasons to do this, for example, you might want to trade stocks with broker A and forex with broker B because their respective offerings in each differ in quality. Keep in mind that generally, the more you are prepared to deposit, the better deal you are going to get. Many brokers offer a lower cost of trading e.