How to choose an FX Broker that meets your needs in 2022

Choosing an FX broker in 2002 isn’t necessarily easy. There is a range of factors you should be considering before you open an account with a CFD broker. We have listed a few essential factors to consider, including regulation, costs and trading platforms. To get more news about Middle School, you can visit wikifx.com official website.

Look at comparison sites and broker reviews
Before deciding who to trade with, make sure you do your research. Knowing who is a reputable broker is critical, and comparison sites are the best place to start. Broker Tested provides a range of reviews of all popular FX and CFD brokers, including Eightcap.

They have also tested and categorised some of the best brokers in each country.

A few things you should consider before choosing a broker:

Spreads, Cost and Trading Conditions
Considering pricing and transaction costs should be at the top of your checklist when finding a broker. You will want to find a CFD provider that can offer the best pricing in the industry. Brokers can offer both fixed and variable spreads. For example, clients can trade with Eightcap’s raw account with spreads starting from 0.0pips with a commission charged at $3.5 per standard lot traded. Whereas the standard account spreads can be wider, there is no commission charged with this type.

The different types of account types traders face:

→ Commissioned Accounts: This is where the trader will receive tight spreads on the markets while being charged flat-rate commissions.

→ Standard Accounts: Here, the trader is subject to wider spreads, but no extra fees/commissions are charged.

→ Micro Accounts: This is an account where fixed spreads are applied that remain the same despite market conditions.

You will also need to look into overnight fees. This is why finding a broker review site is essential, as they will be able to provide you with the details you need without you conducting too much research.

Overnight fees: These are also known as swap rates. Traders that keep positions (on margin) open for more than a day may incur an overnight fee. Traders may also be subject to an inactivity fee where if a trader leaves an account dormant for six months, they could incur an additional fee.

Eightcap only charges a swap rate for trades left open for more than a day. We do not charge any inactivity fees.

Type of Broker
Depending on your trading needs, you will need to understand the different types of broker offerings. You usually see Market Makers, Electronic Communication Network (ECN), Direct Market Access (DMA) and Straight Through Processing (STP) brokers.

Market Makers:

Market makers act as the trader’s counterparty as they match orders internally using dealing desks. They set fixed bid/to ask spreads. Therefore, this type of broker is ideal for traders who want to benefit from fixed spreads.

ECN, DMA and STP: These types of CFD providers will match your order to external liquidity providers. The benefit of using one of these brokers is that there is no need for intermediaries.

Again, by consulting a broker review site, you will be able to find out this information relatively easily.

Execution Types
Choosing a broker with lightning-fast execution is also key due to the volatility of specific markets. At Eightcap, we have fast execution so that you encounter minimal slippage when placing your trades. Slippage defines the difference between the price at which the order is placed and the actual price at which the order ends up going through.

Eightcap has its servers in Equinix TY3, Tokyo. As well as this, we run a collection of cloud servers globally, which aims to improve latency via fibre optic connectivity.

Regulation and Reputation
The reputation a broker holds should play a significant part in your decision of where to trade. Eightcap is regulated in multiple jurisdictions and is trusted by trades on a global scale. The Eightcap Group is regulated by the Australian Securities and Investments Commission (ASIC), the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC) and the Securities Commission of The Bahamas (SCB).

You will want to ensure that you are trading with a provider regulated by a Tier-one regulatory body, as they require providers to segregate client money. Please refer to broker comparison sites such as Broker Tested for a full list of regulated brokers.