A Guide To Evaluate The Best 5 Forex Brokers In 2018

Choosing the perfect broker is always the target of any traders, yet there are no official standards that help them define a good broker to work with. From my point of view, I concluded that a high-quality broker should be able to satisfy these criteria: credibility, trading costs, and customer service. In addition, I have also made a list of brokers that are regarded as the best forex brokers in the world 2018:

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

CREDIBILITY

Regulations should be the priority of standards that should be checked by traders. Basically, regulations are licenses that trusted financial organizations provide to brokers. These licenses are proofs of the fact that the trading activities of brokers are supervised carefully by these organizations. Therefore, brokers that operate without licenses impose a direct threat to the safety of their customers and should be avoided at all cost. On the other hand, traders should also avoid brokers that promote themselves to have numerous licenses since this feature will not have any positive impact on their trading profits. As a matter of fact, brokers with many licenses will be restricted significantly in terms of trading conditions, therefore they will not be able to provide traders with attractive conditions. In short, I firmly believe that one or two regulations are enough to prove the reliability of a broker. Here is the regulation that each broker in my list is regulated under:

Broker names

Regulations

Exness

CySEC, FCA

HotForex

CySEC, FSCA, FCA

XM

CySEC, FCA, ASIC

FBS

CySEC, IFSC

FxPro

CySEC, FCA, DFSA, FSB

TRADING COSTS

After checking the regulations, traders should move on with the fees of trading activities. The basic guideline of costs that should be checked are: spread, commission and minimum deposit amount.

Firstly, the spread fee is important because high spread fee will certainly result in high transaction costs. To explain, spread is the discrepancy between the ASK and the BID price and it is traditionally measured in pip currency. Most traders are advised to find brokers that provide low spread to lower their trading fees. Here is the spread fee of each broker in the previous list:

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

Moving on with the trading account, traders should be aware of the regular and ECN account already. As for the ECN account, its special feature is the zero spread rate, yet it charges a higher commission to make up for the lack of spread instead. Following is the commission rate of the top 5 ECN brokers:

  • Exness: $2.5
  • Hotforex: $6
  • FBS: $6
  • XM: $6
  • FxPro: $45

Last but not least, traders should also pay attention to the minimum deposit requirement. From my perspective, I think new traders should search for brokers that do not require a high amount of deposit since they might have a higher chance of losing their money. Here is the deposit requirement of each broker:

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

CUSTOMER SERVICES

A good broker should be aware that traders need constant help from their brokers to ensure their trading process and thereby establish a trustworthy customer service system. In my opinion, I have high values on brokers that have 24/7 support and provide local offices for help. Moreover, brokers can even go a step further by providing help in many different languages to help traders whose mother tongue are not English. Finally, traders should search for brokers with local banking options to lower their costs.

This is my personal evaluation for these brokers in terms of customer service:

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

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