If you want to take part in the forex trading market, you need to sign up with one of the best forex brokers on the market for 2016. For this you need to do a bit of research or look at sites like this one that offer useful information about various forex brokers. But firstly, let’s explain what the job of forex brokers is. They basically bring two parties together (the seller and the buyer) for a foreign exchange trade. There are no fees involved; the parties make money on the difference between the selling and buying price of two currencies.
But providing the prices and conducting transactions are not the only thing forex brokers do. They also provide help, give advice and boost your knowledge about forex trading. That’s why it’s important to find a trustworthy and reliable forex broker.
Furthermore, if you want to join the currency exchange trading market, you should be familiar how it works and what you need to do. There is risk involved, therefore, the market is not suitable for everybody. If you have already tried it, you likely have the skills to use forex successfully or at least you are familiar with the risk involved.
On the other hand, this market is currently more open towards new low volume investors. Despite the fact that the market is fueled mainly by volume investors, the low volume ones have plenty of opportunities as well. Earlier the min deposits for opening a trading account were in the thousands. Nowadays you can open an account with as little as $100. With low deposit amounts you can easily test your forex trading skills without risking big cash. With forex traders in mind, we give you a list of the best forex brokers in 2016 including details about what makes them the best of the best. Therefore, continue reading.
What Makes a Good Forex Broker?
A good forex broker is the one that offers attractive bonuses, training courses, support to its customers, a low spread, good leverage options, a user friendly platform and is part of a quality forex institution. The broker that you will choose will be using your money for trading and you will be playing for the service. So you must check if the broker is up to the job. Nowadays there are thousands of online forex brokers so it’s important to do a bit of research and check out several brokers.
If you are an experienced trader you will perhaps go with your own strategy, but novices are highly advanced to take advantage of the knowledge and experience of top brokers. They offer tutorials, bogs, tools, master classes and many other useful features you can use to familiarize with this type of trading. There are many forex broker reviews that compare various trading sites and give you more information about their trading features, accounts, bonuses and deals they offer. Joining a company without paying attention to what it offers might be a mistake you will perhaps live to 
regret.
That’s why you need to ask yourself several questions before registering an account with a forex broker. Is this type of trading allowed in your country? What are the currency pairs you can sell and buy? What trading platforms the broker offers and is any of them available on mobile? How can you make a deposit and cash out funds? What is the customer support available? What forex trading bonuses the broker offers? These are only several questions you need to ask yourself when you compare different forex brokers. Moreover, there are a couple of more criteria you need to consider when you value the best forex brokers. These include:
- Regulation
- Capitalization
- Different Platforms
- Brokerage and Payment Options
- Account Types
- Customer Support
- Other Services
Regulation
Check if the forex broker is regulated. If it is you will be protected in case of depute. In addition, you will be legally protected from fraud. It’s important for the broker to be regulated in a country with an already established legal framework which is strictly followed and effective. The country must also be stable because you might regret it a lot if this isn’t the case.
Capitalization
The broker’s capitalization is another criterion to consider. If a company has problems with their capital it will be risky to choose to trade with them. You can check this on the website of the Commodity Futures Trading Commission where you can learn more about the capital reserves of different forex brokers. A common benchmark most European counties as well as US are using with their own trading requirements is over $20 million capitalization.
Different Platforms
There are many trading platforms, but only a couple of them are the most popular. For example, most forex brokers use the MetaTrader platform and experienced traders are perhaps already familiar with it. With MetaTrader you have access to forex trading both on the web and on mobile. The platform has several features such as many free indicators and the possibility of importing trading robots.
In addition, there are also other trading platforms with more or less the same features such as ACT Forex including proprietary trading platforms. To choose the best one for you, make a forex broker comparison. It is also highly advisable to try out different demo accounts and experience for yourself what the platform has to offer. Afterwards you can decide whether or not to sign up with it.
Brokerage and Payment Options
There are two types of forex brokers- a market maker and an Electronic Communications Network broker- and each charge in its own manner. On one hand, market makers take a percentage of the spread associated with the buying and selling price. This spread constantly varies and some brokers manipulate with it for their own advantage. ECN brokers, on the other hand, often charge a fee for the transaction and don’t earn for the spread. Make sure to carefully read the terms and conditions of each broker including their contact details before signing up with a forex broker. In addition, check the movement agencies the broker is licensed and regulated by.
Furthermore, before choosing a broker, consider the payment methods as well as the associated fees and other charges. From our experience, we have noticed that funding an account is faster and easier compared to cashouts which take several days to compete. This depends both on the withdrawal method and on the broker. Also, if you are a day trader you don’t have to pay any interest rates because you won’t be holding your funds overnight. However, if you do this, you will need to pay a fee. Brokers may also charge other fees, for example for routing, wire transfers and margins.
Account Types
Top forex brokers offer several types of account. For instance, there are demo accounts, micro and mini accounts and standard accounts. The account types depend on the broker. Naturally, every brokerage lists the types of accounts it offers along with their benefits. Nevertheless, the main difference is in the spread which will differ based on the size of the trading transaction. In addition, big accounts also bring extras such as fee education and tutorials, regular news feeds and analysis. New traders should also consider signing up for a demo account so they can see how forex trading goes without the risk of losing their own money. Afterwards, they can switch to real money accounts.
Customer Support
What customer support a forex broker has is also important. You should be able to contact the support representatives whenever you need help or assistance. To learn more about the level of a company’s customer support read reviews or test it for yourself. In addition, it’s highly preferred that a broker has more options of contact such as telephone, fax, e-mail, live chat or some other method. It’s also preferable if a broker’s support can be contacted anytime of the day because you will never know when you will need help with something.
Other Services
Many forex brokers nowadays offer other extra services such as an educational center, news feeds, signals services and so on. These help in making a broker more attractive and popular among currency exchange traders. Many of these extra services allow you to use the knowledge and information available to make a strategy and trade with currency pairs regularly.
Conclusion
The important thing to consider when looking for the best forex brokers, despite all important selection criteria such as regulation, trading platforms and payment methods, is to choose a broker suitable for your trading style. Experienced traders don’t really like brokers that cater to novices and offer information such as an entire educational center with trading details. They often prefer simple and straightforward trading. Therefore, choose a company that you like. Alternatively, choose one of our recommended brokers for 2016. They will give you all the info you need to make a smart choice. In addition, you will have the opportunity to try out different platforms, bonuses, extra services, get trading practice etc. So go ahead and check them out.