The forex brokers must have an independent trader rating of at least 6.8 based upon the data they have collected from individual forex traders from websites worldwide. The broker must also be one of the 50 most popular online forex brokers per their popularity rankings. we can see the entire popularity rankings and a detailed explanation of how they determine these rankings on their Most Popular Online Forex Brokers page.
Criteria for Inclusion on the Forex Brokers
Each forex broker on their Best Online Forex Brokers List must show solid evidence of being regulated by at least one legitimate government regulatory agency seeing the retail forex trade and must not have been approved in any way in the past by regulatory agencies.
Unlike brokers acting on other financial markets, Forex brokers are attached to banks or lending companies because they require large amounts of capital. Brokers need to be registered with a regulatory authority such as the Commodity Futures Trading Commission for US companies or the SFC – Securities and Futures Commission for Hong Kong.
If the broker is part of a large group of companies, you can be more confident since it will be watched by the group itself. Nevertheless, this is not a 100% proof strategy, as you all remember Refco, one of the largest Forex and commodity brokers in terms of capital, going into liquidation . So finding out how long the broker has been established on the Forex market constitute an important criterion. The longer the broker has been active on the market, the more chance you will have to gather feedback from traders who have used their services.
You can Choose a mini account if you are just starting on the Forex market. It is possible to use leverage higher than in a standard account but as we will see later, using leverage is not necessarily a wise move when starting trading on the Forex. The brokers’ comparative table allows you to quickly identify the brokers offering to open a mini account with them. Standard accounts are the real thing.
The minimum capital is higher than the mini account and the leverage is less important. The bank account where your money will be placed is also not to be neglected and it is advisable to choose a broker who uses a well-known and well established bank. Some brokers also offer the possibility to open an account in various currencies: euro, dollar, yen. Be aware if you decide to trade in a currency which is not that of your own country, you need to take into account the exchange rate between your national currency and the currency you decided to trade with.