When choosing a forex broker, a trader has many different options. On our website your will find 12 forex brokers, and the list is constantly increasing. There are forex brokerages from all around the world. A new trader might find such a wide variety very confusing when trying to select a good forex broker.We are asked daily by clients, what each broker's strengths and weaknesses are. So here are some important distinctions between different brokers:
1. Is the broker a Market Maker or an STP broker. Market makers usually provide fixed spreads, guaranteed stops and limit orders. Whereas the STP(Straight through processing) broker provides transparent pricing, the price you see is what you get from the interbank market(of course plus a small markup). The STP model can't guarantee any stop loss, nor can it provide fixed spreads. Spreads are variable and in most circumstances lower than the MM brokers.
2. What platforms does the broker offer? Many traders are familiar with the MT4 trading platform, so a broker that provides it is a must. All of our partner forex brokers offer the MT4 platform. If you're a client who needs mobile trading support, then your choice is more limited, not all brokers provide smart phone trading platforms.
3. Trading spreads, and leverage. Spreads could be a very important factor for any trader; however with the introduction of Forex Rebates we've been able to help all traders reduce their trading costs. These days most of our broker partners' spreads are comparable when you factor in the forex rebates we pay you. To give you an example Tadawul FX, offers spreads at 2-3 pips for EUR/USD(depending on account type), however factoring in the 0.85 pips rebate we provide for Tadawul accounts net spread goes down to 1.15-2.15 for EUR/USD. Leverage is somewhat a less imprtant factor for most traders. Generally most brokers will provide leverage greated than 200:1, up to 500:1. Some brokers however are limited to 100:1.
4. Account currency. All brokers offer different account currency options. Every broker will offer USD deposits as a standard, but other currencies vary. Most brokers will offer the majour currencies, such as EUR, GBP, JPY and maybe CHF. Others will only offer USD, EUR and JPY. All brokers are different so if you're looking for a specific account currency, check out our forex broker comparison table.
5. Funds Safety. This could be the most important factor for many traders. Is a broker a member of an investor compensation fund? Is the broker holding account deposits in segregated bank accounts? Is the broker regulated by a financial regulator? All of the brokers you will find on fxrebategurus.com meet at least one of the criteria specified.
6. Forex Community reviews. Reviews by the forex community are crucial in selecting a forex broker. Before opening an account we highly recommend reading what others have to say about the broker you've selected. A great source for reviews is forexpeacearmy.com, we provide a link on each of our partner brokers to their forex peace army page where you can read other traders' reviews of the forex broker
