Dragon Trader shares with Financial Investor Traders about the list of Top Forex Brokers (Largest & Best) by Organizations in the world ranked in Prestige, Largest Business Development, Brands No. 1
Main Criteria for Rating Forex Brokers
- Registered license
- Free Commissions & Spreads
- Trading Platforms & Tools
- Type of Forex Broker
- Education about forex trading and financial derivatives
- Types of Accounts
- Deposits and Withdrawals
- Customer service
- Member of the Finance Committee
- Social Network
- Broker website traffic and app downloads
- How many years has the broker been in business?
- Which model does the broker offer liquidity?
- Are corporate financial reporting data publicly available?
Types of Forex Brokers
- DD: Dealing Desk
- MM: Market Maker
- NDD: Non-Dealing Desk
- STP: Straight Through Processing
- ECN: Electronic Communications Networks
- STP + ECN
- DMA : Direct Market Access
Compare the pros and cons of ECN, STP, MM Forex Brokers?
Here's a comparison of the pros and cons of ECN, STP, and MM Forex Brokers:
| Feature | ECN (Electronic Communication Network) | STP (Straight Through Processing) | MM (Market Maker) |
|---|---|---|---|
| Transparency | High - Prices come directly from liquidity providers. | High - Similar to ECN, prices come from liquidity providers. | Low - Prices may not reflect the actual market. |
| Order Execution | Fast - Orders are matched directly with other market participants. | Fast - Orders are sent directly to liquidity providers. | Fast - Orders are executed against the broker's own quotes. |
| Spreads | Low - Typically tighter spreads due to direct market access. | Competitive - Spreads can be lower than MM but may vary. | Wider - Brokers profit from the spread between buy and sell prices. |
| Commissions | Yes - Brokers charge commissions per trade. | May or may not - Some STP brokers charge commissions. | No - Brokers earn money from the spread. |
| Minimum Deposit | High - May require a larger initial deposit. | Varies - Can be lower than ECN but depends on the broker. | Low - Often the most accessible option for beginners. |
| Account Options | Fewer - May offer limited account types. | Varies - Depends on the broker. | More - May offer a wider variety of account types. |
| Suitability | Experienced Traders - Ideal for those who value transparency and tight spreads. | Experienced/Active Traders - Good balance between transparency and cost. | Beginners - Easier to use, good for smaller accounts. |
Choosing the right broker depends on your trading style and priorities:
- Experienced traders seeking transparency and best execution: ECN or STP might be ideal.
- Beginners or those prioritizing ease of use: MM could be a good starting point.
Here are some other factors to consider:
- Regulation: Choose a broker regulated by a reputable authority.
- Trading Platform: Ensure the platform is user-friendly and has the features you need.
- Customer Support: Look for a broker with responsive and multilingual support.
- Trading Tools: Consider the tools offered (e.g., charts, indicators) that suit your strategy.
Remember:
- This is a general comparison, and specific details may vary between brokers.
- Forex trading carries inherent risks. Only invest what you can afford to lose.
Trading Platforms
MetaTrader 5: Multi-Asset Trading Platform #1 - Millions of traders and hundreds of brokers have chosen MetaTrader 5 for trading Forex and Financial Markets.
Licences, Regulation and Professional Memberships
- NFA - National Futures Association
- CFTC - Commodity Futures Trading Commission
- ASIC - Australian Securities and Investments Commission
- FCA - Financial Conduct Authority
- FSA - Financial Services Agency
- IIROC - Investment Industry Regulatory Organization of Canada
- FINMA - Swiss Financial Market Supervisory Authority
- MAS - Monetary Authority of Singapore
- CySec - Cyprus Securities and Exchange Commission
Top 10 Best Forex Brokers in the World
- IC Markets - Retail broker with the largest forex trading volume and lowest EURUSD spreads
- Saxo Bank - Professional Web Platform Broker and Highest Minimum Deposit
- IG - The world's largest multi-asset exchange
- Swissquote Bank - Europe's No.1 Professional Broker
- Interactive Brokers - The Professional's Gateway to the World's Markets.
- Dukascopy Bank - Best Broker Switzerland I ECN Broker
- FxPro - UK's #1 Online Forex Broker & Best Online Forex Trading Platform
- Exness - Trusted online trading Broker for beginners in Financial Markets
- Forex - The best forex broker in the Americas
- XTB - Leading European FX & CFDs brokerage Group
