Comparing Forex Brokers in 2017: Not As Easy As Before 

There’s an abundance of newcomer forex broker coming into the market with each passing year. 2017 is proving itself especially difficult to compare forex brokers in. Not only there are a lot more fx brokers than in previous years, the market has become more sophisticated. The trading conditions are better, the promotions are more attractive, and the vast majority of brokerages are compatible with most of the popular softwares.

Here are tips on how to make this research and comparison easier and more effective than ever before:

Compare many brokers

You can use comparison forex broker charts that put together a bit of information on a large number of brokerages, instead of doing your own research. Forex affiliation pays very well and informational sites such as this one have a very strong motive to put together comprehensive pieces.

Take everything with a grain of salt

Due to the above, you should be aware that informational sites have a strong motive to persuade you to use the brokers which are paying them most. This is why you should be reading the information meticulously and use your critical reading skills in place, to figure out whether it’s a sham or valuable information you are provided with. In addition to that, you should be avoiding sites that aren’t transparent about their business model and/or work with a very selected number of brokerages.

Know your own style of trading

Before you rush into comparing forex brokers, and let alone, choosing the one you would use, have a think with yourself on the type of trading you are going to conduct. Are you looking for a brokerage to avoid bank fees and plan on staying passive? Choose for a comparison based on the fees you will pay. Planning on exotic trades like Cryptocurrencies? Choose a comparison dedicated to that!

Don’t be tempted to bonuses

Although in certain situations trading bonuses could be a persuasive selling point, there’s more to it than meets the eye. I wouldn’t recommend anyone to base his choice of brokerage based on this factor.

Regulatory compliance

I think regulation of the forex industry is far from perfection. You hear ever too often about CySEC approved firms that have been marked as scam by the FPA – they are operating for years until CySEC eventually orders to shut them down (example).

Still, a forex firm which is not operating under any regulatory supervision is inherently more risky.

Social trading

Don’t forget to also compare social trading networks as a part of your research. If you have never considered social trading, this is definitely something you should consider. There is more and more evidence on the surface (especially with the social networks that have been running for a while like eToro) that you can be profitable in the long-term using the “follow trader” functionality. This is a seriously undervalued parameter when it comes to comparing forex brokers.

Cautious deposit or demo mode

When you have finally decided on a broker that seems apt for your requirements, don’t rush into depositing large quantities of money on the first go. It could be tempting, especially what’s leading you is the urge to gamble, but when you deposit large sums you are more committed towards one company. Trying the trading platform on demo mode or making a cautious $200 deposit would be a much better course of action that will give you the liberty to leave the platform without hesitation if you noticed any faults.

To summarise, a comparison of forex brokers goes beyond the realms of visiting several websites and reading several ads or promotional pieces written about the brokerage, it requires finding the right comparison charts online, being extra-careful when digesting the information, checking the adaptability to your trading style and social trading preferences, and making a cautious deposit eventually.

The article is contributed by: TheFXView

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