3 Best Forex Broker For Trading and Comparison Included

To have a good forex trading experience, you need to find the right best forex broker to avoid various potential legal problems. Make sure you check the legitimacy of the broker if it is registered and has permission from the commodity futures trading regulatory agency.

When choosing a safe and good forex broker, it is easy and difficult. Along with the development of the forex market, it is certain that the number of forex brokers is also increasing. You as an investor should analyze your investment objectives, fund amount, type of trade, time frame, strategy and also risk tolerance considerations.

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Forex brokers are intermediaries who help anyone to be able to carry out forex trading activities online. Because it plays an important role, traders have to choose the best forex broker. So that they also get quality service apart from avoiding fraudulent brokers.

Types Of Forex Brokers

Do you know how many forex brokers application there are in this world. According to a 2016 study by FinanceFeeds, there are at least 1,231 Metatrader-based forex brokers worldwide. The large number of forex brokers certainly makes traders confused to choose.

So be wise in choosing a forex broker and forex trading company. Remember, choose the best forex broker, and don't believe in ratings, awards etc. Unless the one providing the rating is a really reliable organization like Forbes, Fortune, INC, Barons, Deloitte.

Judging from how the system works, there are three types of forex brokers, namely Hybrid brokers, brokers with a Dealing Desk (DD) and without a Dealing Desk (NDD). Let's see the review below:

1. Hybrid Broker

The majority of the best forex brokers today belong to the Hybrid type. They operate all work systems, DD and NDD (STP/ECN). This is possible because one broker offers many types of trading accounts. Each type of account may operate a different system. Therefore, the trader should be more careful when opening an account with a broker.

For example, there is a Hybrid broker that offers three types of accounts, namely cent accounts, standard accounts, and ECN accounts. In this situation, it is predictable that hundred accounts use the DD (Instant Execution) system while standard accounts and ECN accounts use the NDD (Market Execution) system. Furthermore, standard accounts can operate the STP system, while ECN accounts use the ECN system.

Most of the best forex brokers today have been transparent about which operating systems they use and which liquidity providers they connect with. If the information is not yet available on the broker's official website, traders can ask the Customer Service directly.

Traders can ask through customer service whether the broker includes DD or NDD, whether the trading account is operated with instant execution or market execution, etc. One thing that traders should pay attention to is the license status of the forex broker.

2. Dealing Desk Broker (DD)

DD brokers work by placing themselves as counterparties to each trader's transactions and profiting from the spread. All trader orders will go to the broker's desk (Dealing Desk). This best DD forex broker can be said to create its own market.

They then act as sellers and buyers in the market. This system is actually common among banks and large liquidity providers, so its status remains legal. However, it will be a problem when the DD broker is not regulated by an official government agency.

Because they can be tempted to manipulate prices so that traders lose. Unregulated DD brokers who often manipulate prices are also known as “Bucket Shops”. A bona fide DD broker has several distinct advantages. Some of the features of this type of forex broker include:

  • Offers immediate action
  • Can provide trading accounts with very low minimum capital requirements
  • Can provide trading accounts with very low lot sizes such as nano accounts or cent accounts
  • Can provide various amazing facilities such as leverage up to 1:1000 or higher, fixed spread features, zero spread, and various attractive promotions.

The best DD forex brokers can be an option for traders, if they have been authorized by credible regulatory bodies, such as the US NFA / CFTC, UK FCA, Japan JFSA, and Australia ASIC. Poorly licensed DD brokers (Bucket Shop) can engineer prices, stop loss hunting, and the server crashes frequently.

Bucket Shop brokers are also likely to be absent from merchant withdrawal payments for various reasons, ranging from delaying payments by more than two weeks, cutting merchant profits, etc. At first, traders may be interested in signing up for a Bucket Shop broker due to the lure of lucrative bonuses.

3. No Dealing Desk Brokers (NDD)

As the name suggests, trader orders entering the NDD broker will not go to the desk of the best forex broker. Instead, it is distributed to other parties. The NDD type of forex broker works as an intermediary between traders and the interbank market network where forex trading takes place. NDD brokers usually do not place positions against traders.

So that their profits come mainly from markup spreads and trading commissions only. NDD brokers can be further classified into two based on how they transmit a trader's orders to other parties:

- STP Brokers

STP brokers transfer traders' orders to a “liquidity pool” which consists of many financial institutions that provide liquidity (such as international banks, Hedge Funds, Prime Brokers, etc.). Trader orders will be executed based on the best price position available in the “liquidity pool”.

- ECN Brokers

The ECN broker transmits traders' orders to the network of international banks and other liquidity providers it has built, so that traders' orders will be executed at the best prices appearing on the market.
At first glance, the two are similar.

However, ECN brokers are more transparent than STP brokers, as all ECN traders can directly see the buy and sell positions of other market players (also known as Depth of Market / DoM). Meanwhile, STP brokers cannot provide DoM display, so there are not a few Bucket Shop brokers under the guise of STP.

Best Forex Broker For Trade

Reliable forex brokers must be under strict rules as regulated by official and credible authorities. Apart from that, you can also consider the availability of the most popular trading platforms like MetaTrader4 and MetaTrader5. Here Narabasa.com summarizes forex brokers that are safe to use, as follows:

1. Best Forex Broker - TD Ameritrade

The first best forex broker is TD Ameritrade, this app offers equity, futures and forex instruments. Apart from that this platform forex broker is available in web, desktop and mobile versions. TD Ameritrade provides more than 70 currency pairs.

TD Ameritrade does not charge any commission, their income comes from spreads. The maximum margin is 50:1 for major pairs - such as USD, EUR and JPY and 20:1 for smaller pairs. Customers have access to chat rooms with 24/7 service support.

2. Interactive Brokers

The next best forex broker is Interactive. This forex trading platform provides detailed trading information for each currency pair in real time. There are 20 different order variation types, including touch limit, trailing stop limit, one cancel all and more.

In addition, Interactive Brokers offers more than 100 currency pairs. A commission is charged on each trade transaction, from 0.08 to 0.20 points based on the size of the trade. Margin requirements are set for each currency and range from 1:1 to 50:1.

3. Best Forex Broker - Ally Investment

The next best forex broker is Ally Invest. As a forex broker All Invest provides 3 platforms for forex trading. Ally Invest offers more than 80 currency pairs. Ally does not charge a commission on trading transactions. Ally's transaction income is earned through spreads.

The profit requirements vary by currency pair and vary from 1:1 to 50:1. The Ally Invest trading platform is available for desktop, web and mobile.

  • The web-based platform offers powerful technical and analytical analysis tools.
  • For desktop platforms fully customizable with one click trading.
  • The mobile app also features graphing features as well as real-time news and analysis.

The bottom line is clear, that the best forex brokers will have a good reputation in this sector of the industry, especially in the eyes of partners and traders. The easiest way to see a good reputation is by looking at customer reviews. One of the most popular customer review platforms or websites is Trustpilot.

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Through the website, you can see how much the forex broker is rated and how the customer gives an assessment. A high score and many positive reviews can indicate a good reputation. Ok, that's what Narabasa.com can review, hope it inspires. Thank you!

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