FOREX (FOReign EXchange) is an over-the-counter foreign exchange market where virtual trade in world currencies is conducted. Dealing centers, or forex brokers, are intermediaries between buyers and sellers in the Forex market, which provide players with access to quotes, trading software, and leverage. There is a contract between the broker and the trader – usually in the form of a public offer, regulating their rights and obligations. Brokers earn receiving a percentage of transactions conducted through them. Forex brokers offer trading not only forex instruments, but also for precious metals, energy carriers, CFDs for stock indices and shares of the world’s largest companies. For example, FXGTrade has more than 100 different assets.
Forex brokers rating
A simple answer to the question, which forex broker is better, does not exist, but there are certain criteria that will help to make a choice. At the first stage it makes sense to get acquainted with the ratings of Forex brokers, which are regularly compiled by the largest analytical agencies. In addition, there are so-called user ratings, which are formed by voting (and they usually consist of large brokers like Alpari, 24Option or FXGTrade). For today it is possible to familiarize with a huge quantity of various ratings, we will consider the most known of them.
Ratings give some idea of the leaders of the Forex market, but experienced traders know that when choosing you need to focus on some specific criteria that can be assessed only when working with a particular broker. Here are the main of these criteria.
Reliability and security
An important characteristic of the reliability of a forex broker is the duration of its operation in the market, financial performance, availability of reliable liquidity providers, terms of withdrawal and storage of client’s money. In particular, clients’ funds must be kept in reliable banks separately from the company’s funds. As we can see, the professional ratings of stock market brokers give a very limited idea of forex brokers, because many global dealing centers are not in the jurisdiction, but nevertheless provide favorable conditions and quality service for trading Forex instruments.
The reputation of forex brokers is built primarily on the feedback of real users. To assess this criterion, the aforementioned user ratings can be useful.
Quality of work
As a rule, forex brokers offer one of two transaction processing technologies: Instant Execution or Market Execution. Instant Execution – this is the conduct of a transaction for a specified price. If the price has changed during the processing of the request, the transaction will not be executed. Market Execution is the execution of transactions at a price at the moment of execution. This technology of automatic transmission of requests and quotations refers to the NDD (Non Dealing Desk) system and ensures the rapid processing of requests, so that the difference between the given and the actual price was not noticeable. NDD guarantees a minimum of “slippage” and lightning fast execution. Choose a broker that allows you to work on both transaction processing technologies: Instant Execution and Market Execution.
As for largest companies working with your assets, you can choose by looking at the trading conditions because all of them are mostly reliable – FXG Trade, or STForex, or Alpari, or InstaForex.