The foreign exchange market or forex market is the largest financial market in the world. It is a decentralized market where currencies are traded 24 hours a day, five days a week. To participate in the forex market, traders need to use a broker, which is a company that provides trading platforms, tools, and access to the market.
Choosing the best broker for forex trading can be challenging, especially for beginners. There are many factors to consider, such as regulation, trading conditions, fees, customer support, and trading platforms. In this article, we will discuss what the best broker for forex trading in 2016 is and why.
Regulation
One of the most important factors to consider when choosing a forex broker is regulation. The forex market is not regulated in all countries, which means that traders need to be careful when choosing a broker. A regulated broker is one that is licensed and supervised by a financial authority. This ensures that the broker is following the rules and regulations set by the authority, which provides traders with a higher level of protection.
In 2016, the best forex broker was one that was regulated by a reputable financial authority. The most respected financial authorities include the US Securities and Exchange Commission (SEC), the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC).
Trading Conditions
Another important factor to consider when choosing a forex broker is trading conditions. This includes the spreads, leverage, and minimum deposit. Spreads are the difference between the bid and ask price, and they can vary depending on the broker. Leverage is the amount of money that the broker lends to the trader to increase their buying power. Minimum deposit is the amount of money that traders need to deposit to open an account with the broker.
In 2016, the best forex broker was one that offered competitive trading conditions. This means that the broker had low spreads, high leverage, and a low minimum deposit. However, traders need to be careful when using leverage as it can increase their profits but also their losses.
Fees
Fees are another important factor to consider when choosing a forex broker. This includes commissions, swap rates, and withdrawal fees. Commissions are the fees that the broker charges for each trade. Swap rates are the fees that the broker charges for holding a position overnight. Withdrawal fees are the fees that the broker charges for withdrawing funds from the trading account.
In 2016, the best forex broker was one that had low fees. This means that the broker had low commissions, low swap rates, and low withdrawal fees. Traders need to be careful when choosing a broker as some brokers may have hidden fees that can eat into their profits.
Customer Support
Customer support is another important factor to consider when choosing a forex broker. This includes the availability of customer support, the quality of customer support, and the languages that customer support is available in. Traders need to be able to contact customer support when they have a problem or a question.
In 2016, the best forex broker was one that had excellent customer support. This means that the broker had 24/7 customer support, a fast response time, and support in multiple languages. Traders need to be careful when choosing a broker as some brokers may have poor customer support, which can lead to frustration and lost profits.
Trading Platforms
Trading platforms are the software that traders use to access the forex market. This includes desktop platforms, web-based platforms, and mobile platforms. Trading platforms should be easy to use, fast, and reliable. They should also have a wide range of tools and indicators that traders can use to analyze the market.
In 2016, the best forex broker was one that had a user-friendly trading platform. This means that the broker had a platform that was easy to use, fast, and reliable. The platform should also have a wide range of tools and indicators that traders can use to analyze the market.
Conclusion
In conclusion, the best broker for forex trading in 2016 was one that was regulated, offered competitive trading conditions, had low fees, had excellent customer support, and had a user-friendly trading platform. Traders need to be careful when choosing a broker as there are many factors to consider. It is important to do research and compare brokers before choosing one.
