Choosing the right broker (counterparty) for your forex trades is not easy, but we’re here to help.
It can be a little confusing what exactly makes a broker a forex broker. Some of the big names in the brokerage industry like Interactive Brokers and Saxo Bank, which are known primarily as stockbrokers, also offer forex trading.
Forex brokers usually specialize in forex trading, but that doesn’t necessarily mean they are any better or worse than the above mentioned brokers or other big market players that also offer stocks.
The broker in question needs to be checked individually, and you should also take into account your personal needs. A good example for this is the availability of various currency pairs. For example, a lot of brokers don’t offer the USD/INR currency pair, which might be super important for you but not to others.
However, the most important factors are the safety and background of the broker, its fee structures, and the account types offered (e.g. can you open it in your home currency?). Check also whether the broker provides great desktop and mobile platforms, or any advanced charting tools.
Negative balance protection is offered by most forex and CFD brokers in Australia, Europe and the UK.
We’ve compiled a list of the highest rated forex brokers that we keep up to date.
Don’t forget that all the brokers that you find on BrokerChooser are regulated by at least one top-tier authority. Why do we emphasize safety and choosing a reliable broker so much?
The vast majority of currency transactions are conducted on OTC (over-the-counter) markets. Unlike, for example, the trading of stocks on the NYSE, trading currencies on an OTC market is not regulated by an exchange.
That's why you need to assess how safe your counterparty (your forex broker) is. When you travel abroad to an exotic country and you need to change some money, you would probably go to a bank branch instead of a money changer on the street, right? This way you can minimize your counterparty risk. You have to do the same when you select your online broker for trading forex.