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A trader's success depends largely on choosing the right Forex broker because of the terms of trade; the trading platform’s functional capabilities; and the growth potential of each of its clients depend on the broker. That is why it is important to start with a legitimate broker who has the most options and the best conditions that are suitable for you.
A Forex broker is an organization that has access to liquidity providers and executes the applications of its clients — the traders — in good faith. Simply put, this is an intermediary between you and international banks. As a private individual, you cannot work directly with liquidity providers, so all trading in the foreign exchange market must go through brokers.
After reviewing the Forex brokers in our list, you’ll see that brokers differ in dozens of parameters, like the minimum deposit; leverage; spread size; the trading platform, bonuses, etc. But the most important factor is the license. An unlicensed broker is operating illegally, full stop, because by law brokers must be licensed.
Cashback rate is 80% of a part of the spread
10TradeFx is owned and operated by Holiway Global Ltd that is duly authorized and regulated by a highly reliable regulator for non-bank financial services – the Seychelles Financial Services Authority, reg. no. SD040. 10TradeFx offers all the required tools to ensure an effective trading environment, in particular, multiple well-designed products and services.
Cashback rate is 80% of a part of the spread
AAATrade is duly authorized and regulated by the CySec (CIF license number 244/14). The company’s business activities are governed by MiFID II (Markets in Financial Instruments Directive). Furthermore, AAATrade is regulated by some of the most reliable EU regulatory bodies, for instance, the Federal Financial Supervisory Authority (BaFin) with ref. No. 45052), the Financial Conduct Authority (FCA) with ref. No. 659844, and the Comisión Nacional del Mercado de Valores (CNMV) with reg. No. 3846.
Cashback rate is 80% of a part of the spread
“AccentForex” — is the broker, that provides its clients with the conditions of comfortable work in the financial markets. The main advantage of this company — the high speed and the quality of orders execution, as well as the safety of all customers’ transactions.
Cashback rate is 80% of a part of the spread
“ActivTrades” — is the reliable broker in Forex-industry. This company provides its clients with the possibility to get the maximum profit thanks to the large amount of services and trading instruments.
Cashback rate is 80% of a part of the spread
ACY Securities is authorized and fully regulated by two relevant trustworthy regulatory bodies, in particular ASIC (reg. no. AFSL: 403863) and VFSC (reg. no. VFSC: 012868). The above regulators ensure the company fully meets applicable rules and standards. ACY Securities is a broker of choice for multiple Australian investors.
This page provides a list of active Forex brokers who are associated with the Traders Union. All of them are licensed companies.
A regulator is an independent organization that issues a broker a license for professional activity and it regulates the work of the Forex broker, ensuring its legitimacy and compliance with all applicable regulations. There are two types of regulators:
Local regulators license brokers in their state or country. In one respect it is worse to work with a local regulator because it applies narrow restrictions related only to local legislation. For instance, by the size of leverage (many professional traders, for example, take the size of the spread which may be 1:50 leverage, locally. This may be underestimated by local regulators.
At the same time, although international regulators are quoted higher in the world market, only a local broker in its country can objectively provide legal protection to a trader.
The license protects against fraud because to obtain a license, a Forex broker has to comply with specific regulations, such as:
submit a legally defined set of documents to the regulatory body;
make and maintain a significant cash deposit to the account of a special fund;
confirm with documents that there is a certain amount of money in the broker's account;
create the official website of the company, with the complete and current information about its Terms and Conditions.
Also, the Forex broker must conduct activities and provide services in strict compliance with the requirements of the regulator. Violations may lead to a suspension of the broker’s license; and often to the closure of a brokerage company. So, it is unprofitable and too risky to conduct a Forex business fraudulently. Moreover, the license number can be easily checked using the database of the regulator’s website. This thwarts players from using fake license numbers these days.
The year itself is beside the point, but the age of the Forex broker is important. We don’t recommend young companies for cooperation because, despite any other advantages, they simply do not have sufficient experience to resolve difficult situations, e.g., how best to trade during a global financial crisis.
Almost all the companies dominating in our rating have been operating on the Forex market for over 10 years. This evidences its high-reliability. Since it is believed that if a company has "lived" for at least 4-5 years and has been developing steadily, it means that everything is alright with its business processes and financial strategies. The longevity of the brokerage company in combination with the license demonstrates that you can trust it and that it has experience solving complex problems.
Of course, there are other indicators. For example, IC Markets has been at the top of all ratings for several years, although the company is much younger than the most leading players by age. Also, FxPro has been operating for more than 20 years, and it is one of the oldest players in the Forex market, with a good reputation, but this company often takes a lower place in the ratings.
One of the most important parameters is the reputation of the Forex broker as determined by reviews by other traders over the years.
In our list of the best Forex brokers for 2021, reputation is the main criterion because in other respects the characteristics of the top companies are very similar.
The peculiarity is that you need to evaluate such reviews within independent platforms, for example, on the Traders Union website. Because on its official website, the broker will never flaunt negative reviews (if any).
Do not conflate trading terms with trade tools. Tools as aforementioned are account types you can work with. Trading terms is a complex definition combining all the principal characteristics of a broker, determining the list of opportunities and limits for traders. Think of it as the broker’s Terms and Conditions.
The trading conditions of the Forex broker include the minimum deposit, leverage, spread, the ability to open a demo account, and a cent account. Such accounts are especially convenient for novice traders: for example, a cent account allows you to try out a strategy with real money, but without the risk of large financial losses.
Also, many Forex brokers from our list have a deposit and no deposit bonuses, loyalty bonuses, etc. There are other trading terms: accuracy of quotes, order execution mode, order volume, step, and others. It seems that there are a lot of characteristics, but they are all obvious and easily perceived when you start comparing brokers.
Most customers focus on international organizations as regulators and many players from our Forex Brokers List 2021 have such a license. This is a list of international regulatory agencies:
Belize International Financial Services Commission (IFSC);
Cyprus Securities and Exchange Commission (CySEC);
Mauritius Financial Services Commission (FSC);
UK Financial Regulatory Authority (FCA);
South Africa Financial Services Authority (FCSA);
Bahamas Securities Commission (SCB).
One more important point that many people forget about when choosing a Forex broker is the relevance of information about it. After all, Forex brokers do not mark time, they are constantly developing and sometimes changing their trading terms and even jurisdictions. That is why you need to have access to the newest data, and we are happy to collect it for you on our website.
The procedure to trade on the Forex exchange is as follows: First, you create an application; next, the broker redirects it to the quote provider; then it goes to the liquidity provider; and finally it proceeds onto the interbank market. The Interbank returns the results of the application to the broker; and he delivers them to you while taking a commission (direct or spread) in case of a successful application. Also, the broker transfers current quotes between the international market and the trader.
The particularity is that the Forex broker is not just an intermediary with complicated destinations. This is a legal entity, a professional player of the Forex exchange, which provides the trader with a guarantee that his applications will get to the interbank. A broker guarantees to the Interbank that applications are received from real persons. Moreover, since the broker's activities are licensed and regulated, he also determines the legality of all transactions.
The principal function of the Forex broker is to send the traders’ applications to the international exchange market. A related task is to help the trader make money, because the greater the profit of the trader, the greater the profit is for the broker via his percentage from each transaction.
That is why the best Forex brokers provide their clients with not only platforms and terminals for trading but also leverage and some bonuses. Also, brokers provide traders with up-to-date market analytics, tips, various analytical and even forecasting materials. He doesn’t do that out of kindness, but because it is beneficial for the broker to help you become a successful trader.
| The broker's tasks include: | |
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Executing trades in the Forex market while acting as an attorney/commission agent of his client (the trader); |
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Providing the client with detailed information on each transaction before its execution; |
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Maintaining all financial documentation and reporting, including the tax aspects; |
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Covering operations with securities in the framework of ensuring legislatively established transparency of his activities; |
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Predicting the success or failure of the customer's instructions. |
Unfortunately, fraud is still flourishing in the Forex market, even though the field is expertly regulated and there are fewer opportunities for fraudsters. Fraudulent brokers are often called Forex Scammers because such companies do not lead their traders to the international market, although they may claim the opposite.
Forex scammers encourage or trick a trader to trade with other traders and/or only with their platform. It is obvious that, unlike a real licensed broker, it is unprofitable for a Forex scammer if the broker wins. This is because its earnings are not based on a percentage of your transactions, but on every deposited dollar.
Even when working with a real broker only about 25% of traders eventually become successful. However, if a trader is dealing with forex-scammers the percentage drops to zero. It is impossible to win with a scammer because the Forex system exposes its own quotes. The table below shows the main differences between a reliable broker and a fraudster.
Acting under a regulator whose license number is registered in the regulator database
No license information or the information is false
Indicates current quotes of the international market
If you compare the numbers, you see the differences between the scammer’s numbers and the interbank quotes
Offers to work on official trading platforms (e.g., MT4 and MT5)
Forces you to work through its own platforms, which can contain spyware
Offers you a large number of trading tools, for example, 20–40 currency pairs
Can offer only a very few trading tools
Offers only standard terms (minimum deposit $1–10, leverage up to 1:1,000, etc.)
Promotes unrealistic, overly beneficial terms (e.g., leverage of 1:10,000 or colossal no deposit bonuses.
The official site was created years before or in the year of licensing
When checking through a special service, it is revealed that the site was created after the specified licensing period
Reviews by other traders are real, as evidenced by their ability to be found on independent websites
The reviews are self-made and, as a result, they are 95-100% positive and can only be found on the scammer’s website; but on independent websites, reviews reveal that the scammer is a fraud
The best broker can be chosen based on a consolidated Forex Brokers 2021 list. Such a list should contain up-to-date information updated on-line about trading terms and broker’s tools, which are recognized as the top ones based on trader reviews. Only this approach excludes subjective assessment and allows you to effectively compare Forex brokers by basic features significant for the trader. And for sure, this is the best defense against fraudulent schemes.
Antony Robertson
Traders Union Analyst
Unfortunately, you cannot trade on your own. According to international law, only a specialized organization licensed by one of the competent regulators can become a participant in the interbank foreign exchange market.
Fraudulent traders do not have an official regulator’s license (the license number may be verified on the off-site of the regulator). Fraudsters have few trading tools and unrealistic terms; their websites were created only recently; and there are no positive reviews on independent sites.
The best way is to use our Forex Brokers List 2021 because it shows the principal information on top brokers leading the ratings based on the traders’ reviews. Through a simple comparison, you can make an objective decision as to who will be the best partner for you to work with.
There are other options. You can register with a broker not directly but through the Traders Union association. In terms of trading, nothing will change for you in this case, but you will get additional financial bonuses, the possibility of additional earnings, relevant analytics, and legal support.