You have found the best place for investors and day traders to research Forex, Crypto, Stock and CFD brokers. New and Experienced Investors in Forex and Crypto Currencies, will find updated and accurate reviews of the best brokers for trading Forex.
The Best Forex Brokers
It is a known fact that there are more than 1,000 Forex brokers to choose from, and only a handful of them are actually legitimate, licensed financial institutions. The risk of opening a trading account with a scam broker is very high.
Depending on which country you live in, determines which broker is the best one for you. When we research and compare brokers, the way to determine the legitimacy of the broker, is by their regulatory status. Meaning, does the broker have a valid forex brokers license.
Forex Brokers in the United Kingdom must have a license from the FCA,while brokers in Australia, must be licensed by ASIC. It is important that you always verify and confirm with your local government licensing website, that the broker has a valid license.
The purpose of an “Expert Advisor”, trading robot, or automated trading software, is to act like a computerized money manager.
There are hundreds of automated trading apps and robots. Most of the “secret systems” you hear about from Facebook ads, are actually elaborate scams to steal your money. To properly compare a trading signals service or trading robot, a trader must first be able to test out the service. Many signal services force you to deposit money into your trading account before letting you see the software and signals.
No matter how much you believe in the software, you must be sure you are only using a legal and regulated Forex broker.
Compare Forex Brokers
When you are comparing an online broker, here are the important things to check for;
- Does the broker have a license?
- What are the spread they offer, and which assets are available.
- Is the trading platform user friendly?
- Is the Brokers customer service friendly or pushy?
Many traders make the mistake of opening an account with a broker that was recommended to them by an infomercial type advertisement they saw. There are many untrustworthy brokers, that use clever marketing gimmicks and fake trading robots to lure unsuspecting investors. Make sure you do your homework, and verify that your broker has an active license from your local governments financial regulator.
Forex Brokers Software
There are many different trading platforms that Forex brokers use besides the standard Meta Trader 4 or MT5. Every CFD broker also makes available to their investors a web based trading platform. There are a handful of brokers that offer their own custom trading platform.
Either the trading platform is developed by the broker, or the broker uses a “white label” software from a company like TraderSoft, Scipio, Panda, AirSoft, TradeSmarter or Tradologic.
Broker Process – Deposit & Withdrawal
The withdrawal of funds from your trading account at a broker is not something that usually comes to mind when you start investing. It is only after profits / losses are made, that an investors begins the withdrawal process.
Most brokers are pretty good at processing an investors withdrawal request, but occasionally there are problems.
In recent years, brokers have changed their “on-boarding” process, to ensure, that before you deposit money, they have all the relevant information needed to process your withdrawal.
KYC (Know Your Customer) laws made it, that all regulated brokers must verify your identity before accepting your deposit. This has caused many new investors to think twice before opening a trading account, because the process it more difficult.
Brokers that do not verify your information before you deposit, will require you to verify your info, when you want to make a withdrawal.
Withdrawal Time Frames
According to a circular released by CySEC in 2016, the broker must process your withdrawal request the same day you make the request.
In case of a positive cash balance in the retail client’s trading account, CIFs must process the client’s request to withdraw funds on the same day that the request to withdraw funds was made, or the next working day if the client’s request is received outside of normal trading hours.CySEC Circular C168
Withdrawals are always processed as a “refund”. If the investor made a deposit via a credit card, then the withdrawal will go back to the same credit card.
If the money was deposited via Swift / Wire Transfer, the money should be returned to the same bank account. Depending on the country you live in, it can take between 1 – 4 business days for the transfer to happen.
There are many reasons why your are having problems withdrawing your money from a broker.
If your broker is licensed and regulated, here are some common problems that may prevent your withdrawal request from being processed.
- Missing information on your account profile
- Wrong bank information details (international routing number)
- Outdated personal identification documents
If your broker is offshore and not regulated, then there is a high chance you are dealing with a scam, and your hopes of withdrawing your money is very low.
Offshore brokers do not follow the law, and use many tricks to scam people out of there money. They make false promises of high returns, and use many excuses when you try to withdraw your money.