Forex trading has become increasingly popular in recent years, and as a result, there is a growing number of forex brokers to choose from. It can be challenging to find the best forex broker for your needs, but there are a few key factors to consider when making your decision. In this article, we will explore what makes a great forex broker and discuss the best forex brokers of 2016.
What to Look for in a Forex Broker
Before we dive into the best forex brokers of 2016, it is helpful to understand what makes a great forex broker. Here are a few key factors to consider:
Regulation: One of the most important factors to consider is whether the forex broker is regulated by a reputable regulatory body such as the Financial Conduct Authority (FCA) in the UK or the National Futures Association (NFA) in the US. Regulation ensures that the broker operates within certain guidelines and protects traders from fraudulent practices.
Trading Platform: The trading platform is the software that the forex broker provides for traders to execute trades. A great trading platform should be user-friendly, reliable, and offer a wide range of trading tools and indicators.
Spreads and Fees: Forex brokers make their money through spreads (the difference between the buy and sell price) and fees. Look for a forex broker with competitive spreads and low fees to save on transaction costs.
Customer Support: Inevitably, you will encounter issues or have questions when trading forex. A great forex broker should offer excellent customer support through multiple channels such as phone, email, and live chat.
Best Forex Brokers of 2016
Based on the factors above, here are the best forex brokers of 2016:
1. IG
IG is a UK-based forex broker that is regulated by the FCA. It offers a user-friendly trading platform, competitive spreads, and low fees. IG also offers a range of trading tools and research to help traders make informed decisions. Customer support is available 24/7 through phone, email, and live chat.
2. OANDA
OANDA is a US-based forex broker that is regulated by the NFA. It offers a powerful trading platform with a wide range of trading tools and indicators. OANDA also has competitive spreads and low fees, making it an excellent choice for cost-conscious traders. Customer support is available 24/7 through phone, email, and live chat.
3. Forex.com
Forex.com is a US-based forex broker that is regulated by the NFA. It offers a user-friendly trading platform with a range of trading tools and indicators. Forex.com also has competitive spreads and low fees, making it an excellent choice for cost-conscious traders. Customer support is available 24/7 through phone, email, and live chat.
4. Plus500
Plus500 is a UK-based forex broker that is regulated by the FCA. It offers a user-friendly trading platform with a range of trading tools and indicators. Plus500 also has competitive spreads and low fees, making it an excellent choice for cost-conscious traders. Customer support is available 24/7 through phone, email, and live chat.
5. eToro
eToro is a Cyprus-based forex broker that is regulated by CySEC. It offers a user-friendly trading platform that is great for beginners. eToro also offers social trading, where traders can copy the trades of successful traders. Customer support is available 24/7 through phone, email, and live chat.
Conclusion
Choosing the best forex broker for your needs can be a challenge, but by considering the factors above, you can make an informed decision. The forex brokers listed above are some of the best in the industry and offer competitive spreads, low fees, and excellent customer support. Make sure to do your research and choose the forex broker that is right for you.
