What Do The Best Broker Forex Traders Recommend?

Finding the best broker Forex traders use most often in not a difficult task.  There are many articles online that talk about how to select a good broker.  There are ratings given to brokers that come from collecting the opinions of active traders around the world.  To be included on the internet’s best online forex brokers list there are three main criteria.  They must supply information about themselves including not only their full name and address but information about which agency regulates them, their minimum account size, minimum trade size, date their company was started, when they started trading on the Forex, the platform they use, typical spread on majors and the maximum leverage they allow.  The second requirement is that they must show proof that they are regulated by at least on government agency that regulates forex trading.  They must not have ever been sanctioned either.  The third requirement is that they must also be in the top 25 firms based on rating and popularity ranks.

The criteria for being listed in the top firms based on ratings is that actual traders must give the highest rates based on their actual experience.  These rates are collected and adjusted to give a weighted average to the numbers.  The scores range between 1 and 10 with 10 obviously being the best.

The popularity ranking is determined by the level of traffic to a website and the number of trader rankings.  These are good indicators because it shows that traders are voting with their money.  The ratings and popularity rankings are then combined to come up with with a final number.  Currently the top ranked broker scores around 8.6 out of 10.

Logically, the best broker forex traders strive for is one that helps them make profits.  There are two types of brokers.  One type consists of the market makers.  These brokers actually “make the market.” They take the opposite position that you are take.  Due to the fact that this may bring a conflict of interest into play, this may not be the best avenue to take.  Many people do use market makers though so this is just a point to consider.  The other type of broker is the electronic communications networks(ECN).  The ECN matches trades between buyers and sellers. making their money by charging a small commission.  They are not trading against you.

In choosing the best broker forex traders often choose a broker that has no vested interest in the outcome of the transaction.  They work with firms that allow them to use demo accounts to get the feel of trading for a period of time before they beginning trading in the real market.  Doing this will give you an indication of how the broker will interact and benefit your trading activities.

Beware of the brokers advertising promises of making easy profits and becoming wealthy in a short period of time.  These are scams.  Making money trading currencies is a complex and difficult task.  It is a high risk undertaking so don’t buy into claims that it is simply a click away.  If it was as easy as the ads claim everybody would be doing it.  Everybody would be wealthy.  To make money over the long term in currency trading you must educate yourself enough so that you make your own trading decisions and use the broker’s resources to compliment your own.

Accessibility is an important trait of a good broker.  Without it you will fail.  Good brokers realize that quick responses to traders are essential for their long term profitability.  You also want to find a broker that will work with you as a partner not an adversary.  The best broker forex traders can find is one that will take a long term view of their relationship with you rather than viewing you as the next victim.  A broker that treats you with respect is a gold mine.

In conclusion, the most important traits to look for in a broker are honesty, integrity and a thorough understanding of the markets.  With these characteristics a trusting relationship with traders can be built and maintain for many years.  This is the best broker forex traders could ask for.

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