In this first point, we take you by the hands and show you a general overview of the broker’s trading conditions and their general product offerings. And more importantly; we look at the trading costs.
Spreads and commissions incur the most expenses in a trader’s day to day trading activities. The cost of trading is usually the trader’s most important factor in determining whether or not to trade with a broker. Needless to say, lower commissions and narrower spreads are better. It is also important to ascertain beforehand whether to choose the fixed or floating spread option of your broker. Fixed spreads are often higher than the typical value of floating spreads, but floating spreads usually widen significantly during new sessions and other periods of high market volatility. Most brokers are market markets and offer only spreads, however ECN brokers charge commissions. You can check our forex broker commission comparison to get the broker with the lowest commission. You can also read our lowest spread forex broker comparison so that you can select the best offers.
We look into the general tradable instruments that your prospective broker offers. We will also state whether these options are available for all traders based on account type and location or not. For example, OANDA limits the tradable products of US clients to forex only and FXCM does not make all instruments available on its mini account.
When it comes to tradable FX instruments, City Index leads this category; traders have the opportunity of trading up to 84 currency pairs on their platform irrespective of the account type. FxPro is also an excellent broker offering close to 70 currency pairs.