Forex is an international electronic trading platform, which specializes in the purchase and sale of foreign currency. In 2020, it can be used by both major players in the foreign exchange market and private investors. Small traders are helped to get settled and start earning on Forex brokers.

Forex broker is a link between a trader and the market. He places a trader's request to buy or sell currency in the financial market FX Forex and receives commissions. The commission is formed based on the difference between the price of buying and selling currency - spread. Without brokerage services, a private trader cannot trade.

 

Top Forex brokers: how to choose the best

In 2019 - 2020, the most reliable brokerage companies with the best set of quality services are considered:

• FxPro;

• Alpari Limited;

• ALPARI LIMITED; LBLV;

• FXCM;

• XM, etc.

What criteria can traders professionals and private traders use to choose the broker:

• How long the broker has been providing services, what reputation has been earned (do not read reviews on the website of the broker itself, it can be a marketing trick);

• availability of licenses and regulators. The most reputable organizations that issue licenses are CySec (Cyprus), FINMA (Switzerland), ASIC (Australia). It should be noted that many states block or limit the work of Forex broker - Indonesia, Belgium, Malaysia, Israel, etc.;

• trading conditions;

• minimum deposit amount and demo account availability;

• variety of proposed payment systems for deposit and withdrawal;

• spread and swap size;

• choice of trading instruments - currency pairs, shares, futures, cryptocurrencies;

• reliability of software and trading terminals.

Some additional offers of brokerage firms, such as training, analytics, leverage and bonuses, are not critical in the choice of a broker. Such parameters are invented by marketers to attract new inexperienced clients.

How to start to cooperate with Forex brokers

After careful selection among the best brokerage companies, the trader joins the users of one of them. For this purpose, it is necessary:

1. register an account on the broker's website;

2. confirm your data and ability to pay with the provision of some documents;

3. create a deposit and transfer money there following the limits of the broker;

4. install software to monitor the currency exchange rate and generate purchase and sale orders. Most brokers provide the software for free;

5. send a request to the broker to place your funds on the exchange if the conditions for trading are right.

 

The broker places information about the purchase or sale of currency and carries out the transaction. The earned money, minus the broker's commission, goes to the trader's account.

To trade currency successfully and increase the margin of business on Forex, a private investor needs a broker — a reliable intermediary between the financial market and the trader. Choosing a broker is a responsible step. It is necessary to consider his reputation, the presence of regulators and license, fees and other trading conditions, software security and culture of interaction with the client.