Compare Forex Brokers

Compare Forex Brokers

How to compare and choose a Forex Broker

In your search for finding the right forex broker that suits your trading style, one of the obvious steps involved is to compare forex brokers from the short list of brokers that you already have. While the initial research into comparing forex brokers might have led you to a list of credible forex brokers to trade with, the next step will allow you to focus on the smaller details that can make a difference to your trading.

The short list from the forex broker comparison table can be from different set of parameters that you might have used and narrowed down your search for a forex broker to a select few. Finding the right forex broker from here onwards takes a more serious approach and requires making use of forex broker's comparison table. Using the forex broker comparison tool you can narrow down on a lot of other factors such as spreads, swap conditions, deposit or withdrawal fees, and other important criteria such as security of funds, regulation and so on (which you would have already done previously).

When it comes to spreads, make sure that you compare forex brokers, to keep an eye on the spreads during normal trading hours and during high impact news releases such as the monthly NFP report and so on. It is in your best interests to see how the brokers deal with spreads ahead of a big news event which as many of you know results in wider spreads. The question to ask is whether the spreads are reasonable. Some forex brokers tend to take advantage of these high impact news releases to widen their spreads, resulting in premature trigger of stop loss orders.

For swing trades, using the forex broker comparison tool, always check to see if the overnight swaps are competitive. When you leave your trade open over a period of time, chances are that the overnight spreads will eat into your profits. Not all forex brokers offer the same overnight swaps and this is something to bear in mind.

Assuming that all the forex brokers in your short list have all the prerequisites such as being licensed, regulated and so on, it all comes down to the finer details that show up from the forex broker comparison tool to achieve the best trading conditions for your trading journey.

While it might seem a bit arduous for searching for a forex broker, bear in mind that it is essential to do your due diligence before you commit your funds. Therefore it is always prudent to do a thorough analysis by comparing forex brokers to narrow down to the best forex broker that suits your trading style.