To make a ranking of brokers, sites need to analyze different trading platforms and then give a final score for each one. The analysis of each provider is done taking into account various criteria — regulation, bonus system, etc. And all these facts are included in the reviews. They are a mini-assessment of the Forex broker. However, why should you care? And how can a review be useful for a trader?
Why is a Forex Review Essential?
Smart traders should do the following: they should get acquainted with the rating, select 10 brokers from the list and start reading feedback about them. This is the most optimal approach for finding the best trading platform. A lot of independent platforms review brokers so there will not be a lack of information to read.
Compiling your own rating is also a good idea. After reading a lot of feedback and comments, you will understand which of them offers the best no deposit bonuses or where the highest spreads are. Some traders, especially advanced ones, prefer to rank their brokers and do not trust rating sites.
What Should You Look for?
Usually, all reviews are similar to each other. Some of them are short, others are longer, but, in most cases, they provide similar information. The only difference between reviews might be their structure or length of text. The facts that are listed in any standard Forex broker review are as follows:
● Origin and company information
This section provides information about the company that owns a given broker, allowing you to quickly determine how good the broker’s reputation is. The history of the broker’s activity speaks of its experience. And we all know that the more experience a site has — regardless of the direction of its activity — the more reliable it is.
It is the most important factor for a trader to choose a broker. Being reliable means that the broker can protect the personal data of its clients from theft and ensure that financial transactions are processed accurately and on time.
It also means that you are not registered on the site that experienced traders consider a scammer and avoid completely. The reliability depends on one mandatory thing — official registration. If a broker does not have the appropriate license for its activities in the market, then it cannot be trustworthy in any way. But reliability can also be good or bad. Some brokers are registered in the market but are not very reliable. It depends on their regulators. Regulators are usually the same, and they are all appointed by the relevant state body and are official institutions. As an example of a good Forex regulator, we can mention CySEC – this is the Securities and Exchange Commission of the Republic of Cyprus.
● Trading platform
Any trader should pay attention to what software the broker uses. This factor is considered in any review you can find on the Internet. Sometimes you don’t even need to continue reading a review if it states that the broker is using software that you are very familiar with. Trading platforms such as MetaTrader and Webtrader are quite popular and reliable. Also, as additional information about the trading platform, some reviews provide data about the mobile trading service on the website, i.e., the availability of mobile applications or the official mobile version.
● Trading terminal functionality
This is the longest section of any review because it lists and describes all trading instruments and assets. It usually also contains spreads and payout ratios. If we talk about various services, some reviews also include information about the presence of a training centre, the provision of trading signals, as well as the possibility of hedging and scalping.
● Payment methods
They are closely related to your investment and profit. Investments are made by making deposits, and profits can be withdrawn to your bank account using the withdrawal procedure. Please note that most Forex brokers have their own specifications and requirements regarding deposits and withdrawals. Some of them even charge commissions for these transactions. For deposits, restrictions are typically imposed on the minimum size for each deposit. For the withdrawal of funds, brokers also set their own rules, and often, this is the minimum and maximum amount of a single withdrawal. There may also be restrictions on the frequency of withdrawals — once a week, twice a month, etc.
● Bonus system
It shows all current special offers of the trading platform. There are different types of bonuses, and the more of them are offered, the happier their audience is. But remember that the bonus system should not be the most important factor for you when choosing a broker. After all, the review provides you with many other significant factors that you should definitely consider when analyzing brokers.
Reading reviews of forex brokers may not be the most interesting thing to do, but be that as it may, you should do it. Reviews provide a complete picture of what you can expect and help shape your perspective on a particular broker. Therefore, read reviews regularly.