The correct way to compare Forex brokers is like this;
Here are 4 questions every trader should ask a broker before they start trading.
Does the broker have a license?
There are over one thousand forex currency brokers worldwide, however only 50 brokers actually have a license, see licensed brokers here. Trading with unlicensed brokers often leads to complaints about withdrawal problems, and other unethical behavior.
If you received an email about an auto trading signal software, and they recommend an unlicensed broker, don’t use it. You are better off comparing two legitimate brokers, that are licensed and provide trading signals to their investors, see here.
Does the broker offer trading signals?
Trading signals are very hot nowadays, due to the creation of auto trading robots. Most brokers provide their clients with trading signals. The worst trading signals are the ones that an analyst or broker tells clients over the phone.
The most successful traders create their own method for finding trade ideas. Traders should read about the various trading signals available here.
What are the returns offered?
Brokers love to boast about steady monthly returns, but in reality, most investors trading Forex or Crypto Currency CFD’s lose money.
When comparing brokers, it is important to make an apples to apples comparison. Choose what you are going to be trading, and then analyse the difference between the spreads at each broker.
How easy are withdrawals?
This issue is discussed in more details on our complaints page.
When comparing brokers, there is a simple test that an investor can do. You should pick up the phone and call your broker. Many times when dealing with a scam broker, the phone number will not work! That is how you know the broker is a bad broker.
If you get through to the broker, ask them how you can make a withdrawal and see what they say.
So Which Broker Should You Use?
Every trader has their own requirements for a broker, but the first place to start is with the top rated brokers, see here.