The Forex Market is the best place for those who want to make a profit, but it requires the traders to be dedicated and in complete control of their emotions. Many people see the forex market as a gold mine and decide to become forex traders almost immediately. Experienced forex brokers understand this temptation very well, and therefore, try to offer all kinds of promotions to these newbies.
You need to know that your chosen Forex broker is also your trading partner in the forex market. If you choose the wrong broker, you would set yourself up for a lot of troubles down the road.
Before we get to all the requirements of trading Forex, first we need to understand what a Forex broker is. Forex brokers own a small amount of currencies in the forex market. These brokers have access to the forex market, this advantage will also be granted to currency traders who decide to become their clients. In other words, they act as an intermediary between retail traders and the forex market.
The Importance of Choosing the Right Forex Trading broker
As previously mentioned, forex brokers play an important role in your daily trading activities. They provide a link between you and the forex market, facilitate your transactions, and keep your money safe.
Therefore, you should carefully evaluate the broker of your choice in terms of reliability, technical support, and offered security for your assets. Choosing the wrong forex broker can hurt your trading.
Basic Factors in the Best Forex Brokers
How do you know that a particular forex broker is right for your needs? What are the signs? Is your current broker the best? To know the correct answer to these questions, you need to look at the important factors that make a forex broker the best in the FX industry.
There are three important elements that you need to consider carefully before making a decision. And if you already have a forex broker, evaluate these basic elements to make sure that you have made the right choice.
The three important elements are History, Services, and Facilities.
✅ Origin
The history of the forex broker should be examined with great care in many respects as follows:
Licensing
Forex trading is free and decentralized. You can trade at any time and from anywhere through online brokers and marketplaces. The fact that anyone can sign up as a trader or a trading broker makes the FX Market a risky trading environment.
You can trust a forex broker that is licensed by a reputable authority. It is, therefore, necessary to check the broker's website to see if it is regulated by an official regulator such as the CySEC of Cyprus, FCA of the UK, ASIC of Australia, or IFSC of Belize depending on the broker location.
It is of the utmost importance to have a licensed Forex broker as your partner because it is the link between you and the market. Moreover, authorized forex firms will ensure and keep their clients’ assets in segregated accounts. This will reduce the chances of fraudulent activities, and in the event of bankruptcy, you will not lose all of your money.
Authorized forex brokers are listed on the regulators’ websites and must display their regulators’ logos on their official websites.
History, Fame, and Recognition
After making sure that your forex broker is licensed, the next step is to dig deeper into its history and popularity. It is better to choose a forex broker with a long history in the field, sufficient capital, and a brand that stands out in the industry. It is also crucial for your broker to be based in highly respected countries such as Cyprus, the United Kingdom, and Australia where strict forex regulations are enforced. These forex brokers will offer the most favorable financial transactions to their clients because they consider their own interests and protect their reputation at the same time.
There are many small and unpopular forex brokers with little capital that you should avoid at all costs.
You need to know when the broker was founded, how big it is, and where its offices are located. Moreover, inquire whether it interacts with its clients, or has received any international awards for its services. Another thing that you need to look at is the level of transparency the broker provides such as the details of the management teams and executives. All of these factors are important to ensure that your forex broker is honest, trustworthy and one of the best.
✅ Services
After making sure that your forex broker is licensed and has a long history in the field, it is time to try its services.
Security and Protection
Your forex broker plays an important role in keeping your money safe. So, you need to choose a forex broker that protects and ensures the security of your funds. Authorized forex firms are obligated to keep their clients’ funds in segregated accounts and separate from their own.
A licensed forex broker keeps your money safer even in the event of bankruptcy or the broker’s inability to meet its obligations because your assets will have insurance.
For example, in the jurisdiction of the CySEC, brokers will have insurance contracts with the ICF (Investor Compensation Fund) for their clients' funds up to €20,000, and members of the FSCS (Financial Services Compensation Scheme) under the FCA will guarantee their clients' funds up to £85,000.
Unconditional help
The forex market is fast-moving and very volatile. The fact that the FX market is open 24 hours a day makes it even harder to do business. To become a successful trader, you need to move in the direction of the market and not lag. This can be achieved with the help of a capable broker to seamlessly connect you to the market.
Your forex broker must be able to provide you with unconditional support such as:
• Easy communication and availability at all hours without delay
• Easy to reach through e-mail, phone, live chat, etc.
• Knowledgeable support staff to answer your questions and requests politely and professionally
• Solve all your forex related issues quickly and skillfully
There are also forex brokers that provide special personal assistance to each client in case they need immediate special assistance. Most forex brokers also provide multilingual support services to their clients.
You must understand that the best forex brokers are willing to do everything in their power to support their clients. That is why support is one of the necessary factors to consider before choosing your forex broker.
✅ Facilities
When you finish investigating the history of the broker and its services, it is time to test its ability to provide. You need to make sure the broker can give you the facilities that you require in your trades. Check the following items:
1. Low trading costs
Forex brokers charge spreads (fees) on their clients' trades in exchange for the services they provide. You should inquire about the types and amounts of spreads offered by the broker to find the ones that best suit your trading strategies. And it is preferable if you choose a forex broker that offers the lowest spread because in this way you will reduce your costs of trading and at the same time will increase your chances of making more profits. The spreads are offered either as fixed or floating depending on the broker and account type.
Fixed spreads remain the same throughout the trades; however, they are often offered higher than their floating counterparts. Fixed spread accounts are suitable for beginners as well as long-term investors.
Floating spreads, generally provided in electronic communication networks, change constantly based on the market. They can reach a value as low as 0 when the market is calm and increase during volatility. If you carry out your trades based on short-term strategies, then the forex brokers that offer low floating spreads will suit you perfectly.
2. A large number of leverages
Having high leverage means high returns, so if you are an experienced trader, you should find a forex broker that offers high leverage. Conversely, if you are a new trader, do not be deceived by the higher leverage. Remember, even if the expected returns are high, you can still lose a lot of money if your trades are unsuccessful.
Therefore, make sure that you are proficient enough to use the high leverage of your broker, and if you are not, your forex broker should warn you to stay away from the high leverage until you have enough experience to handle it.
It is also preferable to use a forex broker that offers a variety of leverage in case you need to challenge yourself with a high level of risk.
3. Multiple Accounts and Trading Conditions
There are different types of accounts to choose from, depending on your trading ability, namely Micro, Cent, Standard, ECN, and Demo (training account).
New traders usually start with Forex Micro accounts due to their small lot sizes, while expert traders go with Standard accounts for large trading volumes.
In contrast, those who like to make quick profits (short term traders) prefer ECN forex accounts because they can directly trade in the market with low and floating spreads.
No matter what type of trader you are, just make sure your broker offers an account that suits your needs and interests.
4. High Order Execution Speed
Many traders lose their trades simply because of their forex brokers’ frozen servers or slow execution speed. This issue could complicate your trading endeavor and turn it into a nightmare.
The leading brokers in the market may have their own pricing system, but if they do not execute the orders fast and at the right moment, their fixed prices will not matter. Therefore, if you prefer a fast-moving trading style, you'd better work with ECN-type forex brokers that provide real-time execution systems.
5. User-friendly Trading Tools and Platforms
Easy-to-use and reliable trading tools and platforms are required so that you can perform your trading activities more easily. Therefore, your forex broker should be able to offer such tools to enable you to access the market via popular platforms such as MetaTrader 4 on the web, desktop or mobile applications.
You may also want to look for features such as one-click trading, managing stop losses, or different types of orders to carry out your trades more appropriately.
6. Fast Deposit and Withdrawal Methods
There are many fast and safe ways to make deposits or withdraw money. You can choose credit cards (Visa, MasterCard, Amex, etc.) or online payment systems, such as Skrill, Neteller, WebMoney, Perfect Money and Bitcoin. Electronic payment systems are now more preferred because they process financial transactions faster than wire transfers.
If you choose a broker that has a representative office in your country, you may be able to use certain financing methods via your local banks.
7. Various Educational Tools
The forex market is constantly changing and there are no strategies that can work all the time. That is why trading education benefits both new and expert traders. It stands to reason that all traders, regardless of their level of experience, educate themselves according to future trends as a way to avoid unnecessary losses.
Good education enables you to gain active knowledge and sharpen your trading skills to keep pace with the ever-changing forex market. Furthermore, educational programs such as live forex seminars, daily market analysis, forecasts, trading tools, and forex related articles could broaden your horizon. Make sure to choose a broker that pays attention to improving your trading knowledge and skills.
In conclusion, choosing the right forex broker as a partner is an important step that should not be taken lightly. Remember that the best forex brokers are dedicated to meeting your needs and requirements.
In the list below, review the ratings of the best forex brokers in the UAE. Make sure you know your style and trading needs so you can find the best forex broker!
You need to know that your chosen Forex broker is also your trading partner in the forex market. If you choose the wrong broker, you would set yourself up for a lot of troubles down the road.
Before we get to all the requirements of trading Forex, first we need to understand what a Forex broker is. Forex brokers own a small amount of currencies in the forex market. These brokers have access to the forex market, this advantage will also be granted to currency traders who decide to become their clients. In other words, they act as an intermediary between retail traders and the forex market.
The Importance of Choosing the Right Forex Trading broker
As previously mentioned, forex brokers play an important role in your daily trading activities. They provide a link between you and the forex market, facilitate your transactions, and keep your money safe.
Therefore, you should carefully evaluate the broker of your choice in terms of reliability, technical support, and offered security for your assets. Choosing the wrong forex broker can hurt your trading.
Basic Factors in the Best Forex Brokers
How do you know that a particular forex broker is right for your needs? What are the signs? Is your current broker the best? To know the correct answer to these questions, you need to look at the important factors that make a forex broker the best in the FX industry.
There are three important elements that you need to consider carefully before making a decision. And if you already have a forex broker, evaluate these basic elements to make sure that you have made the right choice.
The three important elements are History, Services, and Facilities.
✅ Origin
The history of the forex broker should be examined with great care in many respects as follows:
Licensing
Forex trading is free and decentralized. You can trade at any time and from anywhere through online brokers and marketplaces. The fact that anyone can sign up as a trader or a trading broker makes the FX Market a risky trading environment.
You can trust a forex broker that is licensed by a reputable authority. It is, therefore, necessary to check the broker's website to see if it is regulated by an official regulator such as the CySEC of Cyprus, FCA of the UK, ASIC of Australia, or IFSC of Belize depending on the broker location.
It is of the utmost importance to have a licensed Forex broker as your partner because it is the link between you and the market. Moreover, authorized forex firms will ensure and keep their clients’ assets in segregated accounts. This will reduce the chances of fraudulent activities, and in the event of bankruptcy, you will not lose all of your money.
Authorized forex brokers are listed on the regulators’ websites and must display their regulators’ logos on their official websites.
History, Fame, and Recognition
After making sure that your forex broker is licensed, the next step is to dig deeper into its history and popularity. It is better to choose a forex broker with a long history in the field, sufficient capital, and a brand that stands out in the industry. It is also crucial for your broker to be based in highly respected countries such as Cyprus, the United Kingdom, and Australia where strict forex regulations are enforced. These forex brokers will offer the most favorable financial transactions to their clients because they consider their own interests and protect their reputation at the same time.
There are many small and unpopular forex brokers with little capital that you should avoid at all costs.
You need to know when the broker was founded, how big it is, and where its offices are located. Moreover, inquire whether it interacts with its clients, or has received any international awards for its services. Another thing that you need to look at is the level of transparency the broker provides such as the details of the management teams and executives. All of these factors are important to ensure that your forex broker is honest, trustworthy and one of the best.
✅ Services
After making sure that your forex broker is licensed and has a long history in the field, it is time to try its services.
Security and Protection
Your forex broker plays an important role in keeping your money safe. So, you need to choose a forex broker that protects and ensures the security of your funds. Authorized forex firms are obligated to keep their clients’ funds in segregated accounts and separate from their own.
A licensed forex broker keeps your money safer even in the event of bankruptcy or the broker’s inability to meet its obligations because your assets will have insurance.
For example, in the jurisdiction of the CySEC, brokers will have insurance contracts with the ICF (Investor Compensation Fund) for their clients' funds up to €20,000, and members of the FSCS (Financial Services Compensation Scheme) under the FCA will guarantee their clients' funds up to £85,000.
Unconditional help
The forex market is fast-moving and very volatile. The fact that the FX market is open 24 hours a day makes it even harder to do business. To become a successful trader, you need to move in the direction of the market and not lag. This can be achieved with the help of a capable broker to seamlessly connect you to the market.
Your forex broker must be able to provide you with unconditional support such as:
• Easy communication and availability at all hours without delay
• Easy to reach through e-mail, phone, live chat, etc.
• Knowledgeable support staff to answer your questions and requests politely and professionally
• Solve all your forex related issues quickly and skillfully
There are also forex brokers that provide special personal assistance to each client in case they need immediate special assistance. Most forex brokers also provide multilingual support services to their clients.
You must understand that the best forex brokers are willing to do everything in their power to support their clients. That is why support is one of the necessary factors to consider before choosing your forex broker.
✅ Facilities
When you finish investigating the history of the broker and its services, it is time to test its ability to provide. You need to make sure the broker can give you the facilities that you require in your trades. Check the following items:
1. Low trading costs
Forex brokers charge spreads (fees) on their clients' trades in exchange for the services they provide. You should inquire about the types and amounts of spreads offered by the broker to find the ones that best suit your trading strategies. And it is preferable if you choose a forex broker that offers the lowest spread because in this way you will reduce your costs of trading and at the same time will increase your chances of making more profits. The spreads are offered either as fixed or floating depending on the broker and account type.
Fixed spreads remain the same throughout the trades; however, they are often offered higher than their floating counterparts. Fixed spread accounts are suitable for beginners as well as long-term investors.
Floating spreads, generally provided in electronic communication networks, change constantly based on the market. They can reach a value as low as 0 when the market is calm and increase during volatility. If you carry out your trades based on short-term strategies, then the forex brokers that offer low floating spreads will suit you perfectly.
2. A large number of leverages
Having high leverage means high returns, so if you are an experienced trader, you should find a forex broker that offers high leverage. Conversely, if you are a new trader, do not be deceived by the higher leverage. Remember, even if the expected returns are high, you can still lose a lot of money if your trades are unsuccessful.
Therefore, make sure that you are proficient enough to use the high leverage of your broker, and if you are not, your forex broker should warn you to stay away from the high leverage until you have enough experience to handle it.
It is also preferable to use a forex broker that offers a variety of leverage in case you need to challenge yourself with a high level of risk.
3. Multiple Accounts and Trading Conditions
There are different types of accounts to choose from, depending on your trading ability, namely Micro, Cent, Standard, ECN, and Demo (training account).
New traders usually start with Forex Micro accounts due to their small lot sizes, while expert traders go with Standard accounts for large trading volumes.
In contrast, those who like to make quick profits (short term traders) prefer ECN forex accounts because they can directly trade in the market with low and floating spreads.
No matter what type of trader you are, just make sure your broker offers an account that suits your needs and interests.
4. High Order Execution Speed
Many traders lose their trades simply because of their forex brokers’ frozen servers or slow execution speed. This issue could complicate your trading endeavor and turn it into a nightmare.
The leading brokers in the market may have their own pricing system, but if they do not execute the orders fast and at the right moment, their fixed prices will not matter. Therefore, if you prefer a fast-moving trading style, you'd better work with ECN-type forex brokers that provide real-time execution systems.
5. User-friendly Trading Tools and Platforms
Easy-to-use and reliable trading tools and platforms are required so that you can perform your trading activities more easily. Therefore, your forex broker should be able to offer such tools to enable you to access the market via popular platforms such as MetaTrader 4 on the web, desktop or mobile applications.
You may also want to look for features such as one-click trading, managing stop losses, or different types of orders to carry out your trades more appropriately.
6. Fast Deposit and Withdrawal Methods
There are many fast and safe ways to make deposits or withdraw money. You can choose credit cards (Visa, MasterCard, Amex, etc.) or online payment systems, such as Skrill, Neteller, WebMoney, Perfect Money and Bitcoin. Electronic payment systems are now more preferred because they process financial transactions faster than wire transfers.
If you choose a broker that has a representative office in your country, you may be able to use certain financing methods via your local banks.
7. Various Educational Tools
The forex market is constantly changing and there are no strategies that can work all the time. That is why trading education benefits both new and expert traders. It stands to reason that all traders, regardless of their level of experience, educate themselves according to future trends as a way to avoid unnecessary losses.
Good education enables you to gain active knowledge and sharpen your trading skills to keep pace with the ever-changing forex market. Furthermore, educational programs such as live forex seminars, daily market analysis, forecasts, trading tools, and forex related articles could broaden your horizon. Make sure to choose a broker that pays attention to improving your trading knowledge and skills.
In conclusion, choosing the right forex broker as a partner is an important step that should not be taken lightly. Remember that the best forex brokers are dedicated to meeting your needs and requirements.
In the list below, review the ratings of the best forex brokers in the UAE. Make sure you know your style and trading needs so you can find the best forex broker!
