CFD and Forex Brokers – Choosing the Best Forex Broker
We walk you through choosing the best CFD and Forex broker for you.
With over $6 TRILLION in average daily trading volume, the forex market is the biggest and most liquid market in the world, with AdonFinance you will find the best CFD and Forex Broker who suit you.
Open 24/5, the forex market is a decentralised market for trading every single currency, against one another in pairs.
Would you like a piece of the action?
To actually trade forex with banks, hedge funds and other retail traders, you need a broker.
Choosing the right CFD and Forex broker is vital for your success and that’s where the team at AdonFinance comes in.
We’re here to walk you through the different characteristics of each and help you make a final decision on the best forex or CFD broker.
The first thing to look for when choosing the best CFD and Forex broker for you is to consider each broker’s list of markets they offer.
Do you have a trading strategy that focuses on a certain market or asset class?
Well, you’re going to need to pick a broker that allows you to trade it.
You will find these on each broker’s website.
Commonly under the following asset class subheadings:
- Forex: Currency pairs such as EUR/USD or GBP/JPY.
- Commodities: Resources such as Gold or Oil.
- Indices: Stock indexes such as the S&P 500 or the FTSE 100.
- Stocks: Individual company stocks such as AAPL or TSLA.
- Cryptocurrencies: Crypto markets such as BTC/USD or ETH/USD.
Forex and CFDs Trading Platforms
Next on your list of considerations when choosing the best CFD and FX broker for you, is the trading platforms that each has on offer.
This is going to be your portal to the markets.
The piece of software that you’ll be interacting with on a daily basis as a trader.
Some of the most popular trading platforms include:
- MetaTrader 4 (MT4): The most popular forex trading platform on the planet.
- MetaTrader 5 (MT5): The next generation forex trading platform from MetaQuotes.
- cTrader: Features a more sophisticated interface and more functionalities.
- Mobile/WebTrader: Always ensure your broker offers mobile apps and a browser-based interface. This ensures you can manage trades on the go.
Spreads and Commissions
Now you know the markets you’re going to trade and trading platform which you’re going to do it through.
Next, it’s time to take a look at each broker’s spreads.
The spread is the price difference between the forex broker’s sell price and the buys price.
It’s simply the fee you will pay your broker for executing the trade.
Depending on whether they run a market maker or ECN broker model, your spreads could be fixed, variable or include commissions.
Each has its pros and cons depending on the type of trader you are and your strategy used.
Deposits and Withdrawals
Consider each CFD and FX broker’s deposit and withdrawal methods that they offer to clients.
An often overlooked follow-on to your forex broker’s deposit and withdrawal methods are any fees associated with using them.
Always be careful because fees are often charged by banks or the online services themselves, not actually by your broker.
Some of the most popular account funding methods offered for deposits/withdrawals are:
- Bank transfer
- Credit/Debit card
Make sure you also consider each broker’s regulatory status, across trustworthy jurisdictions.
For a forex broker to maintain regulatory status in tier-1 countries, they must follow the regulator’s standards.
This is what makes them a safe choice.
- Having adequate funds on hand
- Segregating clients funds
- Protection if the broker becomes insolvent
The safest, most trustworthy brokers will most likely be regulated in the following countries:
- UK: The Financial Conduct Authority (FCA)
- Australia: Australian Securities and Investments Commission (ASIC)
- Europe: The Cyprus Securities and Exchange Commission (CySEC)
- USA: The Commodity Futures Trading Commission (CFTC)
It’s now become commonplace for better CFD and Forex brokers to include education or market analysis services to their clients.
Some educational and analysis content is accessed for free on the site.
While more valuable aspects are often client-only exclusives that require a live account to access.
Education and market analysis value-adds to look out for when choosing a broker:
- Trading education: Access to written course content directly from the broker’s site.
- Webinars: Live video presentations run by professional traders or brokers.
- Market analysis: Access to a daily technical and fundamental analysis published by the broker’s in-house analysts.
- Trading signals: Some brokers even offer free trading signals or calls.
A common misconception is that your broker is the enemy.
This is false, they don’t only make money when you lose.
In fact, it’s quite the opposite.
They will make money whether you win or lose, all by taking a cut of the spread.
For this reason, it’s actually in their best interests to help traders succeed as this means you’ll trade more volume on their platform.
Always keep an eye out for the brokers with excellent customer support.
This aligns the interests of both broker, and you as the trader.
While you don’t start trading forex thinking that you will have problems, it’s always good to have peace of mind.
You should feel comfortable with your broker’s support and know they’re there to help when you need them.
Open an account with the best broker for you
A good CFD and FX broker is vital for your success.
But choosing the best broker isn’t the same for every trader.
AdonFInance is here to help you make the decision that is right for you.
Within the table above, the AdonFinance team has compiled all the key information you need to choose the best CFD and FX broker for your specific needs.
You’re able to read detailed broker reviews and see our ratings at a glance.
Finally, we’ll even get you exclusive bonuses by opening an account using the green trade now buttons.