Are you looking to get into forex trading and need to find a broker? Maybe you're trying to figure out what a “No Dealing Desk” broker does differently from an ECN broker or whether one forex broker's trading platform is better than another. If so, Compare Forex Brokers is for you!
Forex trading has exploded in popularity over the last decade. Many new brokerages now compete for business alongside more established names like FXCM and Gain Capital. Consequently, both new and experienced forex traders now have to choose between a deluge of forex brokers. Each broker offers a trading platform with unique features and competitive spreads, and leverage amount to tempt the trader.
Compare Forex Brokers aims to cut through the information overload, which is especially helpful since when you're new to forex trading, you'll quickly realize the terminology is different from what you might be used to if you come from a stock investing background. The broker fees differ, as does the access to leverage and a whole host of other things; it can be a steep learning curve.
Compare Forex Brokers is a well-known review site, having established itself in 2014, initially serving the Australian market. Since then, they’ve expanded to cover brokers in Singapore, South Africa, Dubai, New Zealand, the UK, and Nigeria. Their reviews are in-depth and tend to be comparison reviews—comparing two or more brokers or reviews of individual brokers.
The reviews follow a similar format, with Compare Forex Brokers explaining the different types of accounts offered by the broker and highlighting the pros and cons of each. Some brokers try to cater to more advanced traders others might offer a choice of commission or spread-based accounts. There's a massive choice available, and there's no one-size-fits-all, which is why the guidance from Compare Forex Brokers can be a time saver.
One of the attractions of the forex market is the ability to trade with leverage. When the trader deposits a small amount of capital, the broker lends them a larger sum to buy or sell forex pairs. Explaining the broker's leverage rules and fees is one area that Compare Forex Brokers excels.
Regulatory bodies differ from country to country, and each will have its own rules as to how much leverage the broker can offer. Compare Forex Brokers does the leg work for the reader, highlighting which regulators govern the broker and how leverage differs from country to country, even for the same broker.
As well as leverage, the other key consideration is the fees for trading through the broker—how much will it cost. Once again, Compare Forex Brokers excels. Their reviews usually include spread tables that show the major forex pairs and the size of the spread. The spread is simply the difference between the Sell and Buy prices. The bigger the spread, the more expensive the broker is. Compare Forex Brokers has a neat tool that shows the spread for each currency pair, and while the competitors may not be part of the review, their spreads are also given.
It’s a helpful tool, and while it may not be entirely up to date, the data is usually no more than 3 or 4 weeks old, certainly good enough to get a feel for the broker's costs, especially against their alternatives.
Many brokers provide more than just forex trading, so it's not uncommon to see reviews on Compare Forex Brokers include CFDs. Like forex trading, Contracts for Difference is another type of leveraged trading allowing the trader to make a relatively small deposit with the broker in return for exposure to significant price movements.
By offering CFDs, brokers can provide traders with a broader range of products such as gold, silver, and stock indices. In some countries, traders can also trade CFDs on stocks, but typically the leverage offered isn’t as significant. Again, Compare Forex Brokers comes into its own by detailing the complete list of CFDs the broker provides. This is particularly helpful in their broker versus another broker reviews.
Other aspects of their reviews include examining the broker’s customer support, whether it’s online-only, or whether there’s a telephone you can call. Compare Forex Brokers also looks into other costs traders might be charged, such as withdrawal or non-activity fees.
Most of the time, traders are happy to compare brokers based purely on the spread differences or the amount of leverage offered and Compare Forex Brokers does this very well. However, for those wishing for a deeper understanding of the broker and the relative merits against other brokers, Compare Forex Brokers goes the extra mile. That said, a quick reality check.
Like all review sites, Compare Forex Brokers is a business and has costs that it pays for by being paid introducer fees by some of the brokers it reviews. When the review talks about ‘preferred’ brokers, the trader should read between the lines—Compare Forex Brokers is probably taking a commission. This doesn’t take anything away from the reviews themselves which remain balanced and extremely helpful but the trader should decide on which broker they trade through on their own merits.