What makes a Forex broker ‘the best’ for you? – Part 1
The ‘best’ way to begin to explain this is by understanding what ‘best’ means to people. Everyone has different tastes and preferences so everyone tends to lean towards their own preference which in the end defines what ‘best’ means for them.
Some people look for the cheapest Forex broker. The reason for that could be because of their financial circumstance. They haven’t got much money so the best option for them is to find a Forex broker that offers low spreads and low or no commission. This way their money can go further.
One thing we must bear in mind however is that a lot of companies that offer unbelievably low spreads are not regulated by the appropriate financial authority. You may find that the majority of them are not based in countries such as the UK, US, Australia or anywhere in Europe. Instead they are based in countries where they get big tax reliefs and above everything, they are not easily reachable. That is, you cannot just go to their head office because it is in another country and they have no representation in your own country. They are simply given the go ahead to operate under no regulation where they can do what they want. Be careful with these. If you are looking for a regulated Forex broker then ensure you get one that operates in the UK, US, Europe, Australia and New Zealand.
Another trader’s ‘best’ Forex broker is the one that provides none or the least amount of re-quotes. Re-quotes are basically provided when a Forex broker cannot fill at the quoted price so instead they make you another offer at a different price. For example, if you want to sell at 1.45000 the broker will not execute that trade but instead say that they can only sell at 1.44995. This obviously eats into your profit and it can be one of the most annoying factors of Forex trading. Historically, this may have been an issue for a segmented group of traders so they do not care how much trading will cost, they simply want a trading platform where they are never re-quoted. Unfortunately, if you are a new trader and are not aware of Forex brokers that guarantee no re-quotes then it could be the case of trying a few out to see if they suffer from this.
Another group of traders may define Forex brokers as ‘the best’ only if they provide instant execution. They could trade lower time frames so instant diving ‘in and out’ of the market is crucial to them. Any delays could cost them money. While traders wait for the trade to fill the market will still be moving - it does not wait for the broker to make their mind up. This movement in prices while traders wait is called slippage and this is why they have to provide a re-quote.
Some trading platforms suffer from a ‘lag’ or ‘delay’ because their servers cannot handle the amount of orders or it could simply be that they are providing prices as a result of slippage that they cannot get from their Interbank market. Whatever the reason is, these traders do not want to lose money because their Forex broker cannot handle the amount of business they are receiving or because they are trying to fool everyone. They do not want to worry about any of this so they tend to go to a Forex broker that is renowned for having instant execution.
To find the best one for you please visit our Forex brokers list/table.