How to find a good Forex broker?

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Unlike many other comparison sites, on this website I really do present you with the safest providers with the best conditions for traders. As a trader with many years of experience, I have tested many Forex brokers and still use some of them. A good provider should have certain characteristics that guarantee good and safe trading.

It is not uncommon to hear about cases of fraud on the internet. This is to be avoided with this comparison! In addition, as a trader you want to save fees, because the costs of trading naturally reduce the actual profits. The security of client funds is also a high priority. A regulation or licence, for example, is urgently needed for safe trading with European brokers. All these criteria and many more are included in the test. That is why I can present the best Forex brokers 2021 to you on this page.

These are the characteristics a good provider should have:

  •     Regulation and licence from an official financial supervisory authority.
  •     High security of client funds
  •     Good trading conditions and low fees
  •     Fast order execution
  •     No requotes (aborting the order)
  •     User-friendly and flexible trading platform
  •     Free demo account
  •     Professional support
  •     Fast deposit and withdrawal of client funds.

How does a Forex broker work?

A Forex broker is the intermediary between a client (trader) and the interbank market for currencies. In addition, the broker can lend capital to the trader so that he can trade with leverage. The broker's income is generated by the spread and the financing costs of the leveraged positions. There are 2 different models of brokers: market maker and ECN/NDD broker.

  •     Market Maker: This broker does not place the trader's orders from its personal area - https://exnesslatam.com/cuenta-estandar/ directly in the real interbank market. There is an internal matching system between the traders' positions. In addition, however, the broker can hedge on the real markets so that there are no distortions in the area of supply and demand. In most cases, this system is very opaque and only as a broker employee does one know the exact functions.
  •     ECN/NDD Broker: ECN means direct access to the interbank market through various liquidity providers. In most cases, these are large banks or very large Forex brokers. The provider puts the orders of the Forex traders directly through into the real market. So the clients get the direct and real market prices for the trade. In this model, there is no conflict of interest between trader and broker.

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Can I test a Forex broker?

Yes, almost all Forex brokers offer a free demo account. This is an account with virtual credit. You can test trading without the risk of losing your own capital. The conditions correspond to trading in a real money account.

What should I look for when choosing a Forex broker?

First of all, you should make sure that the broker is regulated and licensed. This is the most important criterion for choosing a broker. After that, you definitely need to look at the fee structure. No one wants to trade with an expensive broker. After that, the execution of trades should be tested. You can also create a free demo account for this. In addition, the support and service should be checked. Is it fast and can it help professionally or not? Finally, you should also look for hidden fees.