The FX market has continued to flourish at the start of the new decade following its success over the last 10 years. This is partly due to its adoption in the forex trading market. Several online forex brokers now offer various currencies for trading on their platforms.
Forex was the first to be featured on top brokerage platforms but others have followed since. However, it is good to point out that not all forex brokerage platforms that offer forex trading are good.
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There are some key features that traders should look out for:
Features of a good currency trading forex broker
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The first thing that traders should look out for is whether the fx broker they are about to sign up with is properly regulated depending on their location/residence. It is important to make sure that your funds will be in safe hands once deposited with the broker.
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The next thing to check is the variety of currency pairs on offer. A high number would suggest that the platform has done well and over time made the decision to add more.
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Traders should also ensure that the broker provides tight spreads for long/short trading positions. Market prices tend to be very volatile and at times the price swings can be huge. Tight spreads can help reduce the risk of loss when the trade goes against you.
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Traders can also check to see if the forex broker provides traders with an opportunity to buy other assets like real crypto or real stocks. Currently, very few forex brokers have this option available. Social trading giant eToro is a notable option. This is the next frontier for currency trading via forex brokerage platforms, as up till now most brokerages have offered only CFD trading with no underlying assets available.
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Another thing that traders can look out for is an option to copy-trade other successful investors. Again, eToro leads in this case.
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Finally, traders should also look out to see if the forex broker provides traders with the opportunity to withdraw the actual profits using any local method that is used and common in their country.
Top currency-trading forex brokers
eToro: As mentioned repeatedly in the features above, eToro stands out as one of the most reputable forex brokerage platforms. It provides traders with the option to buy the actual stocks, commodities, currencies as well as trade short/long CFDs on stocks. Traders can also maximize their profit potential by using the currency copy trading feature.
Swissquote: Is one of the world’s leading forex brokers. It is regulated in all the leading markets in the world, which highlights its reputation as a top broker. It has several currencies available for trading via CFDs. It also allows traders to trade the underlying tokens directly.
XTB: This is another top broker in the online forex trading market. It is listed on Poland’s Warsaw stock exchange, which again creates a great deal of responsibility both to its customers and shareholders. This means that it is a highly regulated broker. XTB offers forex trading and stock and indices trading via CFDs with 16 digital currencies listed on the platform.
CMC Markets: This one of the UK’s leading forex and CFD trading broker. It was established in 1989 and has a reputable track record in the forex trading market. It is also listed on the London Stock Exchange, which again provides traders with assurance on the safety of their funds due to the extra regulation required for public companies.
IG Group: This is another UK-based forex broker with a great reputation earned over the years. Founded in 1974, it is one of the oldest forex trading brokers in the markets. It has survived several economic crashed over the years, which again showcases its reliability. Traders can trade among others, financial spread betting, currency CFDs, stock CFDs, Indices, and currencies.
Conclusion
In summary, every forex trader wants to get in the action in the forex trading market. This has prompted several forex brokers to offer currency trading either directly or via CFDs. Traders can now look at key features and reputation over the years to choose the one that suits their needs.
