There are a lot of things that first-time forex traders have to learn before actually make their first move in the market. One of the most popular questions I received these days is What brokers we should trade through. In my recent article, I have shared with you the standards to identify a prestigious broker. In that post, I also mentioned several times that we should choose a broker that in the top largest brokers.
So today, I’m going into details on how to rank brokers and the benefits of working with the top largest brokers. Keep it in mind that I don’t have 100% data to rank brokers, the ranking below is the results of months that I spent on collecting, gathering, analyzing information as well as. You sure can consult some others online lists, but remember that not every online ranking is accurate. For example, some pages that I have gone through rank Hotforex, ICmarket, FBS, or FXTM in Top 5 brokers in the world, which is nearly impossible since these brokers are still new in the market and they only target at some countries in South East Asia and Africa.
CLICK TO SEE TOP 5 LARGEST BROKER IN THE WORLD 2018
- com with $395 Billions/ month
- com with $320 Billions/ month
- com with $300 Billions/ month
- Saxo Bank with $300 Billions/ month
- FXCM with $220 Billions/ month
(Note: This ranking is based on the trading volume each month in the forex market, so some big brokers who have low trading volume won’t be in this ranking.)
So, as you can see from the ranking above, what I use to rank these brokers is their trading volume. To see a broker’s financial health as well as their reliability in the market, we use trading volume. If a broker has a low trading volume, it’s reflected that the company lacks of confidence and the company’s credibility is not high.
On the other hand, if a broker has a high trading volume, that means they have a lot of customers and they’re trusted by a lot of traders. In the market, there are 2 kinds of brokers: the first one is the kind of brokers who publish all their financial reports online such as Exness; the second type are those brokers who keep their reports confidential.
We can easily search and go through the financial reports of the first type brokers online, but we can only trust those reports when they’re audited by the top 4 audit companies. For the second type of brokers, we collect their statistic online through trusted sources like newspapers, statistic forums and financial news.
Moreover, there are some brokers like Forex.com and Saxo Bank who have really high total trading volume but low forex trading volume ( Forex’s total trading volume is $500 billions/ month and its forex trading volume is $300 billions/ month while Saxo Bank’s trading volume is $600 billions/ month, Saxo Bank’s forex trading volume is $300 billions/ month). That’s because they’re diversified companies. In my opinion, I advise you to work with a broker whose reports are public due to their transparency.
There are a lot of benefits trading through a broker that is in the top largest brokers. The most outstanding benefit is the safeness. The biggest problem that any traders want to avoid is scam brokers. It’s still a challenging problem to tell scam brokers apart from the beginning. When we first deposit our money, we often follow risk management strictly so we usually win. Then we start to deposit riskier and this often leads to a loss.
Taking advantages of this human behavior, scam brokers usually act normal at first, then when we deposit a lot, they started to cheat us. Scam broker’s tricks are so sophisticated that even experienced traders have to take a long time as well as money to realize that they’re scammed. To avoid this, I recommend beginners trading through a broker that in top5. Large brokers (especially those in the top 5) usually work very hard to protect their reputations, as any scam activities can be uploaded to the internet and ruin their name in the market.
Most brokers in the ranking above are from US/ EU. If you’re in these regions, don’t hesitate to pick one. But, if you’re in another region, there are a few more things you need to consider before coming to a decision. You have to consider whether your country’s regulation granted them or not, how their payment system works, do they have local support or not. If you’re living and working in Asia, I highly recommend you to open an Exness account. Their payment system is my favorite payment system of all time.
It’s super fast with no limitation while it’s 100% free. They also have several offices in China, Indonesia, Thailand, Singapore, Malaysia, Cyprus, South Africa, India and Dubai, which can offer traders direct supports. If you’re not living in those countries, you can receive their online support 24/7, which is very convenient since you can chat with them online or just leave your phone number and they’ll instantly contact you.
If you’re a US citizen, go ahead and choose Forex.com as they’re the leader in US’s forex market and they have high prestige. What about living in Africa or the EU? Saxo Bank and Exness are 2 best choices for you.
Thank you for spending your precious time reading my article and I hope you find this article helpful!