Which is the best forex broker?
When looking for a Forex broker, you want to find one that has cheap spreads, fees and does not mess around with leverage so you end up getting closed out.
There are over 60,000 brokers globally. Most are unregulated and these should be treated with caution. If a Forex broker has no regulation it means they can pretty much get away with any bad behaviour including and up to not letting you withdraw your money. In other words, there are a lot of scammers out there.
If you want to trade Forex, cfd or stocks, you should choose a broker who is regulated. Most regulators mean that the broker has to adhere to a code of conduct and for european brokers, they also protected your deposit. FCA is up to £85,000 while CySec is £20,000.
There are regulators in places like St Vincent and Grenadines which do not offer deposit protection but they still have rules the brokers need to work within.
These later examples are known as off-shore regulated brokers. They offer benefits of much higher leverage than EU brokers as the EU regulator, ESMA clamped down on how much leverage an EU and UK person can get. In some cases its down as low as 1:2 on crypto but with an offshore broker the leverage can be as high as 1:1000 and more.
Our website https://www.wecomparebrokers.com contains many broker reviews, really indepth reviews as well as a broker finder by instruments and also a broker database which tells you if a broker has been reported to a regulator for bad behaviour.
The chart you see on this page below will give you a quick snapshot of which brokers provide what fees (accurate at time of production) https://www.wecomparebrokers.com/who-is-the-cheapest-broker-in-2020/
When choosing a broker, make sure to check what the withdrawal fees are and also keep a close check if their leverage rules change. Most brokers that are regulated in the EU offer a very fair service, there are some differeneces but these are usually down to how much of a spread they offer for different instruments. Also some (like IG) do not offer Crypo on a non leveraged basis so if you want to trade leveraged and non leveraged (1:1) then you probably need to have more than one account.
We recommend having more than one account so you can hedge you risk and go long and short on the same trade, most platforms do not allow this as they “net you off” so having two accounts open to operate a sensible hedge strategy is wise.