Forex Trading A Beginner's Guide

Forex is a portmanteau for foreign exchange. Foreign exchange is the process of converting one currency into another currency for various reasons, usually for trade, trade or tourism. According to the Bank for International Settlements (global banks for national central banks), there are more than $ 4 trillion in daily forex trading volume.

After an agreement at Bretton Woods in 1971, more major currencies were left floating freely with each other. The value of individual currencies varies, which has led to the need for services and foreign exchange trading. Commercial and investment banks do most of the trading on the foreign exchange market on behalf of their clients, but there are also speculative opportunities to trade one currency with another for professional and individual investors.

Forex as a Hedge

Companies that do business abroad are at risk due to fluctuations in currency values when they buy or sell goods and services outside their domestic market. The foreign exchange market provides a way to protect currency risk by setting the value at which transactions will be completed.

To achieve this, a trader can buy or sell currency on the forward market or swap in advance, which locks the exchange rate. For example, imagine a company plans to sell U.S. blenders. in Europe when the exchange rate between the euro and the dollar (EUR / USD) is € 1 to $ 1 at parity.

The cost of making a blender is $ 100, and the US company plans to sell it for € 150 - which competes with other blenders made in Europe. If this plan is successful, the company will make a profit of $ 50 because the EUR / USD exchange rate is even. Unfortunately, the USD starts to rise in value against the euro until the EUR / USD exchange rate is 0.80, which means it now costs $ 0.80 to buy € 1.00.

The problem facing companies is that, while still costing $ 100 to make a blender, companies can only sell products at a competitive price of € 150, which when translated back into dollars is only $ 120 (€ 150 X .80 = $ 120). A stronger dollar generates much smaller profits than expected.

Blender companies can reduce this risk by shortening the euro and buying USD when they are at parity. That way, if the dollar rises in value, profit from trade will offset the reduced profit from blender sales. If USD falls in value, a more favorable exchange rate will increase profits from blender sales, which offsets losses in trade.

This kind of hedging can be done in the currency futures market. The advantage for traders is that futures contracts are standardized and cleared by the central authority. However, currency futures may be less liquid than advanced markets, which are decentralized and exist in systems between banks throughout the world.

Forex as speculation

Factors such as interest rates, trade flows, tourism, economic strength and geopolitical risk affect currency supply and demand, which creates daily volatility in the forex market. There are opportunities to profit from changes that can increase or decrease the value of one currency compared to other currencies. The estimate that one currency will weaken is basically the same as assuming that another currency in the pair will strengthen because the currency is traded as a pair.

Imagine a trader who expects rising interest rates in the US compared to Australia while the exchange rate between two currencies (AUD / USD) is 0.80 (it takes $ 0.80 USD to buy $ 1.00 AUD). Traders believe that higher interest rates in the US will increase demand for USD, and therefore the exchange rate of AUD / USD will go down because it will require less, a stronger USD to buy AUD.

Assume that the trader is correct and the interest rate rises, which decreases the exchange rate of AUD / USD to, 50. This means that $ 50 USD is needed to buy $ 1.00 AUD. If an investor shortens the AUD and buys USD, he will benefit from changes in his value.

Currency as an Asset Class

There are two different features for currencies as asset classes: 

• You can get an interest rate difference between the two currencies.
• You can profit from changes in exchange rates.

An investor can take advantage of the difference between two interest rates in two different countries by buying a currency with a higher interest rate and abbreviating a currency with a lower interest rate. Before the 2008 financial crisis, it was very common to shorten the Japanese yen (JPY) and buy the British pound (GBP) because the interest rate differential was very large. This strategy is sometimes referred to as a "carry trade."

Why We Can Exchange Currencies

Trading currencies is very difficult for individual investors before the internet. Most currency traders are large multinational companies, hedging funds or high-value individuals because forex trading requires a lot of capital. With help from the internet, the retail market aimed at individual traders has emerged, providing easy access to the foreign exchange market, either through their own banks or brokers that create secondary markets. Most online brokers or dealers offer very high leverage to individual traders who can control large trades with a small account balance.

Risk of Forex Trading

Currency trading can be risky and complicated. The interbank market has various levels of regulation, and foreign exchange instruments are not standardized. In some parts of the world, forex trading is almost completely unregulated.

The interbank market consists of trading banks with each other throughout the world. Banks themselves must determine and accept state risks and credit risks, and they have established internal processes to keep themselves as safe as possible. Regulations like this are industries that are applied to protect every participating bank.

Because markets are made by each participating bank providing offers and offers for a particular currency, the market pricing mechanism is based on supply and demand. Because there is a large trade flow in the system, it is difficult for rogue traders to influence currency prices. This system helps create transparency in the market for investors with access to interbank transactions.

Most small retail traders trade with relatively small and semi-regulated forex brokers / dealers, who can (and sometimes do) quote prices and even trade with their own customers. Depending on where the dealer is, there may be some government and industry regulations, but that protection is not consistent throughout the world.

Most retail investors must spend time investigating forex dealers to find out whether it is regulated in the US or the US (dealers in the US and the US have more supervision) or in countries with weak rules and supervision. It is also a good idea to find out what type of account protection is available in the event of a market crisis, or if the dealer becomes bankrupt.

Pros and Challenges of Forex Trading

Pro: The forex market is the largest in terms of daily trading volume in the world and therefore offers the most liquidity. This makes it easy to enter and exit positions in one of the major currencies in a split second for small distributions in most market conditions.

Challenges: Banks, brokers and dealers in the forex market allow a high amount of leverage, which means that traders can control large positions with relatively little money. Leverage in the range of 100: 1 is a high ratio but not infrequently in forex. Traders must understand the use of leverage and risk introduced by leverage in the account. The extreme amount of leverage has caused many dealers to go bankrupt unexpectedly.

Pros: The forex market is traded 24 hours a day, five days a week - starting every day in Australia and ending in New York. The main centers are Sydney, Hong Kong, Singapore, Tokyo, Frankfurt, Paris, London and New York.

Challenges: Trading currencies productively requires an understanding of fundamentals and economic indicators. Currency traders need to have a big picture of the economies of various countries and their relevance to understanding the fundamentals that drive currency values.

The Bottom Line

For traders - especially those with limited funds - daily trading or small amounts of swing trading are easier on the forex market than other markets. For those who have a long-term horizon and larger funds, long-term fundamental trade or carry trade can be profitable. Focusing on understanding macroeconomic fundamentals that drive currency values and experience with technical analysis will help new forex traders become more profitable.

How to Choose a Forex Broker?
TopAsiaFx.com helps you compare and choose your preferred Forex Broker. We suggest keeping the following checklist in mind when making your decision:

• Is the Forex Broker regulated?
• Account Details: Ideally, your broker should offer either a selection of account types or some element of customizability. Competitive spreads and easy deposits/withdrawals are good indicators too.
• Number of Currency Pairs offered: The variety of currency pairs on offer, as well as the quantity, should be considered (the more of both, the better).
• Availability of Customer Service.
• Quality of the Trading Platform: look for a platform that is easy to use, straightforward and offers a collection of technical and analytical tools to enhance your trading experience.

Rank	Broker Name	Special Offer	Minimum Deposit	Spread	User Score	Maximum Leverage	Regulation	Start Trading
1	NordFX	55% Deposit Bonus	$10	0.0 Pips	96	1:1000	VFSC	Open Account
2	SGT Markets	Refer a friend $10	$500	0.0	95	1:400	IFSC	Open Account
3	OctaFX	50% Deposit Bonus	$100	0.4	94	1:500	IBC	Open Account
4	Exness	No	$1	0.1	93	1:2000	FCA,CySEC,IBC	Open Account
5	IC Markets	No	$200	0.0	92	1:500	ASIC	Open Account
6	Tickmill	$30 Welcome  Account	$100	0.0	91	1:500	FSA,FCA	Open Account
7	Axiory	$50 Deposit Bonus	$200	0.0	90	1:400	IFSC	Open Account
8	Justforex	100% Deposit Bonus	$1	0.0	89	1:3000	IFSC	Open Account
9	ThinkMarkets	No	$250	0.4	88	1:400	ASIC,FCA	Open Account
10	XM	$30 Welcome Account	$5	0.0	87	1:888	ASIC,FCA,IFSC	Open Account
11	FBS	$50 Welcome Account	$1	0.0	86	1:3000	IFSC	Open Account
12	HotForex	No	$5	0.0	85	1:1000	INC	Open Account

How Leverage Is Used In Forex Trading

Leverage is widely used in all global markets, not only to obtain physical assets such as real estate or cars but also to trade financial assets such as equity and foreign exchange or foreign exchange.

Forex trading by retail investors has grown significantly in recent years, thanks to the rise of online trading platforms and the availability of cheap credit. The use of leverage in trade is often equated with a double-edged sword because it increases profits and losses. This is very relevant in the case of forex trading, where a high level of leverage is the norm. The examples in the next section illustrate how leverage increases returns for profitable and unprofitable trade.

Example of Forex Leverage

Let's assume that you are a U.S. based investor. and have an account with an online forex broker. Your broker provides the maximum leverage allowed in the US on a major currency pair of 50: 1, which means that for every dollar you install, you can trade $ 50 of the major currency. You place $ 5,000 as a margin, which is a guarantee or equity in your trading account. This implies that you can initially place a maximum of $ 250,000 ($ 5,000 x 50) in a currency trading position. This amount will obviously fluctuate depending on the profit or loss you make (note: this and the example below are gross commissions, interest, and other fees). 

Example 1: Long USD / Short Euro. Number of trades = EUR 100,000

Assume you start the trade above when the exchange rate is EUR 1 = USD 1.3600 (EUR / USD = 1.36), because you are bearish on the European currency and expect to decline in the near future.

Leverage: Your leverage in this trade is more than 27: 1 (USD 136,000 / USD 5,000 = 27.2).

Pip Value: Because the euro is quoted to four places after the decimal, each "pip" or base point in euros equals 1/100 of 1% or 0.01% of the amount traded from the base currency. The value of each pip is expressed in USD, because this is a counter currency or quote currency. In this case, based on the number of currencies traded € 100,000, each pip is worth $ 10. (If the amount traded is € 1 million versus USD, each pip will be worth $ 100.)

Stop-loss: When you test conditions related to forex trading, you set a tight stop-loss of 50 pips on your long USD / short EUR position. This means that if stop-loss is triggered, your maximum loss is $ 500.

Profit / Loss: Fortunately, you have beginner luck and the euro falls to the level of EUR 1 = USD 1.3400 in a few days after you start trading. You close the position with a profit of 200 pips (1.3600 - 1.3400), which translates to USD 2,000 (200 pips x USD 10 per pip).

Forex Mathematics: In conventional terms, you sell a short of € 100,000 and receive $ 136,000 in your opening trade. When you close a trade, you buy back the euro that you shorted at a cheaper rate of 1.3400, paying $ 134,000 to € 100,000. The $ 2,000 difference represents your gross profit.

Leverage Effect: By using leverage, you can generate a 40% return on your initial investment of $ 5,000. What if you only trade $ 5,000 without using leverage? If so, you will only shorten the euro equivalent to $ 5,000 or € 3,676.47 (USD 5,000 / 1.3600). This much smaller number of transactions means that each pip is only worth USD 0.36764. Closing the short euro position at 1.3400 will produce a gross profit of USD 73.53 (200 pips x USD 0.36764 per pip). Using leverage thus increases your return exactly 27.2 times (USD 2,000 / USD 73.53), or the amount of leverage used in trading.

Example 2: Short USD / Long Japanese Yen. Number of trades = USD 200,000

The 40% profit on your first forex leveraged trade has made you want to do more trading. You turn your attention to the Japanese yen (JPY), which trades at 85 to USD (USD / JPY = 85). You expect the yen to strengthen versus the USD, so you start a short USD / long yen position in the amount of USD 200,000. The success of your first trade has made you willing to trade in larger amounts because you now have a margin of USD 7,000 in your account. Even though this is far greater than your first trade, you get the convenience of the fact that you are still in the maximum amount that you can trade (based on 50: 1 leverage) of USD 350,000.

Leverage: Your leverage ratio for this trade is 28.57 (USD 200,000 / USD 7,000).

Pip Value: Yen is quoted to two places after the decimal, so each pip in this trade is worth 1% of the base currency expressed in the quote currency, or 2,000 yen.

Stop-loss: You set a stop-loss on this trade at the level of JPY 87 to USD, because the yen is quite volatile and you don't want your position to be stopped by random noise.

Remember, you are a long yen and a short USD, so ideally you want the yen to appreciate versus USD, which means you can close your short USD position with a smaller yen and pocket the difference. But if your stop-loss is triggered, your losses will be very large: 200 pips x 2,000 yen per pip = JPY 400,000 / 87 = USD 4,597.70.

Profit / Loss: Unfortunately, reports of a new stimulus package launched by the Japanese government caused the yen to weaken rapidly, and your stop-loss was triggered the day after you trade long JPY. Your loss, in this case, is USD4,597.70 as explained previously.

Forex Mathematics: Conventionally, mathematics looks like this:

Opening position: Short USD 200,000 @ USD 1 = JPY 85, e.g. + JPY 17 million

Closing position: Triggers stop-loss results in short positions of USD 200,000 covered @ USD 1 = JPY 87, e.g. - JPY 17.4 million

The difference of JPY 400,000 is your net loss, which with an exchange rate of 87, managed to become USD4,497.70.

Leverage Effect: In this case, using leverage increases your losses, which amounts to around 65.7% of your total margin of USD 7,000. What if you only shorten USD 7,000 versus yen (@ USD1 = JPY 85) without using leverage? This smaller number of transactions means that each pip is only worth JPY 70. A stop-loss triggered at 87 will result in a loss of JPY 14,000 (200 pips x JPY 70 per pip). Using leverage thus increases your losses exactly 28.57 times (JPY 400,000 / JPY 14,000), or the amount of leverage used in trading.

Tips When Using Leverage in Forex Trading

While the prospect of making large profits without losing too much of your own money may be tempting, always remember that too high a level of leverage can cause you to lose your clothes and more. Some security precautions used by professional traders can help reduce the inherent risk of foreign exchange trading: 

• Close Your Losses. If you hope to make a big profit someday, you must first learn how to keep your losses small. Close your losses to manageable levels before they disappear and drastically erode your equity.

• Strategic Stop Use. Strategic stops are very important on the 24-hour forex market, where you can sleep and wake up the next day to find out that your position has been affected by movements of several hundred pips. Stop can be used not only to ensure that losses are limited but also to protect profits.

• Don't handle it. Don't try to get out of the losing position by doubling or leveling it. The biggest trading loss had occurred because a rogue trader was stuck in his weapon and continued to add to the losing position until it became so big, it had to be canceled with a big loss. The merchant's view may ultimately be true, but it is generally too late to make up for the situation. It's far better to cut your losses and keep your account alive to trade on another day, rather than being left hoping for a miracle that won't happen that will reverse the big losses.

• Use Leverage that matches your level of comfort. Leverage 50: 1 means that a 2% adverse step can erase all your equity or margin. If you are a relatively cautious investor or trader, use the lower level of leverage that you like, maybe 5: 1 or 10: 1.

The Bottom Line

While the high level of leverage inherent in foreign exchange trading increases returns and risks, our example shows that by using several precautions used by professional traders, you can help reduce these risks and increase your chances of increasing returns.

How to Choose a Forex Broker?
TopAsiaFx.com helps you compare and choose your preferred Forex Broker. We suggest keeping the following checklist in mind when making your decision:

• Is the Forex Broker regulated?
• Account Details: Ideally, your broker should offer either a selection of account types or some element of customizability. Competitive spreads and easy deposits/withdrawals are good indicators too.
• Number of Currency Pairs offered: The variety of currency pairs on offer, as well as the quantity, should be considered (the more of both, the better).
• Availability of Customer Service.
• Quality of the Trading Platform: look for a platform that is easy to use, straightforward and offers a collection of technical and analytical tools to enhance your trading experience.

Rank	Broker Name	Special Offer	Minimum Deposit	Spread	User Score	Maximum Leverage	Regulation	Start Trading
1	NordFX	55% Deposit Bonus	$10	0.0 Pips	96	1:1000	VFSC	Open Account
2	SGT Markets	Refer a friend $10	$500	0.0	95	1:400	IFSC	Open Account
3	OctaFX	50% Deposit Bonus	$100	0.4	94	1:500	IBC	Open Account
4	Exness	No	$1	0.1	93	1:2000	FCA,CySEC,IBC	Open Account
5	IC Markets	No	$200	0.0	92	1:500	ASIC	Open Account
6	Tickmill	$30 Welcome  Account	$100	0.0	91	1:500	FSA,FCA	Open Account
7	Axiory	$50 Deposit Bonus	$200	0.0	90	1:400	IFSC	Open Account
8	Justforex	100% Deposit Bonus	$1	0.0	89	1:3000	IFSC	Open Account
9	ThinkMarkets	No	$250	0.4	88	1:400	ASIC,FCA	Open Account
10	XM	$30 Welcome Account	$5	0.0	87	1:888	ASIC,FCA,IFSC	Open Account
11	FBS	$50 Welcome Account	$1	0.0	86	1:3000	IFSC	Open Account
12	HotForex	No	$5	0.0	85	1:1000	INC	Open Account

How To Trade Forex On News Releases

One of the big advantages of currency trading is that the forex market is open 24 hours a day, five days a week (from Sunday, 5 P. M. EST to Friday, 4 P. M. EST). Economic data tends to be one of the most important catalysts for short-term movements in any market, but this is especially true in the currency market, which not only responds to U.S. economic news but also news from around the world.

With at least eight major currencies available for trading in most currency brokers and more than 17 derivatives, there are always some economic data scheduled to be released that traders can use to inform them of the positions they take. In general, no fewer than seven data sheets are released every day from the eight major currencies or countries that are most followed. So for those who choose to trade news, there are many opportunities. Here, we see when economic news releases are released, which are most relevant to forex traders (FX) and how traders can act on the data that drives this market.

Which currency should you focus on?

These are eight major currencies:

1. US Dollar (USD)

2. Euro (EUR)

3. British pound (GBP)

4. Japanese Yen (JPY)

5. Swiss franc (CHF)

6. Canadian Dollar (CAD)

7. Australian Dollar (AUD)

8. New Zealand Dollars (NZD)

And this is just an example of some of the more liquid derivatives based on the currency above:

1. EUR / USD

2. USD / JPY

3. AUD / USD

4. GBP / JPY

5. EUR / CHF

6. CHF / JPY

As you can see from this list, the currencies that we can trade easily reach the globe. This means that you can choose your own currency and economic release for your attention. However, as a general rule, because the US dollar is on the "other side" of 90% of all currency trading, the release of the US economy tends to have the most tangible impact on the market.

Trade news is harder than it sounds. Not only are consensus figures reported important, but also whisper numbers (unofficial and unpublished estimates) and revisions. Also, some releases are more important than others; this can be measured in terms of the significance of the country that released the data and the importance of the release in relation to other parts of the data released at the same time.

When is Press Release Published?

Figure 1 lists the estimated time (EST) where the most important economic releases for each of the following countries are published. This is also the time when you have to pay extra attention to the market if you plan to release the news.

Country	Currency	Time (EST)
U.S.	USD	8:30 to 10 a.m.
Japan	JPY	6:50 to 11:30 p.m.
Canada	CAD	7 to 8:30 a.m.
U.K.	GBP	2 to 4:30 a.m.
Italy	EUR	3:45 to 5 a.m.
Germany	EUR	2 to 6 a.m.
France	EUR	2:45 to 4 a.m.
Switzerland	CHF	1:45 to 5:30 a.m.
New Zealand	NZD	4:45 to 9 p.m.
Australia	AUD	5:30 to 7:30 p.m.

Figure 1: The time when various countries release important economic news

What Are the Key Releases?

When exchanging news, you have to know which release is actually expected that week. Second, it is important for you to know which data is important. In general, this is the most important economic release for any country:

1. Interest rate decision

2. Retail sales

3. Inflation (consumer prices or producer prices)

4. Unemployment

5. Industrial production

6. Business sentiment survey

7. Survey of consumer confidence

8. Trade balance

9. Survey of the manufacturing sector

Depending on current economic conditions, the relative importance of this release may change. For example, unemployment may be more important this month than trade decisions or interest rates. Therefore, it is important to stay aware of what the market is currently focusing on.

How long does the effect last?

According to a study by Martin D. D. Evans and Richard K. Lyons published in the Journal of International Money and Finance (2004), markets can still absorb or react to hours of news releases, if not days, after they are released. The study found that the effects on returns generally occur on the first or second day, but the impact seems to last until the fourth day. The impact on the order flow, on the other hand, is still very pronounced on the third day and can be observed on the fourth day.

How Do I Trade News?

The most common way to trade news is to look for a period of consolidation in front of a large number and only trade fugitives behind the numbers. This can be done on a short-term basis in one day (intraday) and daily. Let's look at the table in Figure 2 as an example. After a weak figure in September, the market held its breath in front of the October figures, which will be released to the public in November.

In the 17 hours before release, EUR / USD was limited in a tight 30-pip trading range. (Pip is a measure of the smallest change in a currency pair on the foreign exchange market. Since most major currency pairs are priced up to four decimal places, the smallest change is from the last decimal point.) A big opportunity to trade a breakout, mainly because of the possible sharp move this is very high.

Figure 2: This graph illustrates market uncertainties leading to October non-farm payroll figures, released in early November. Pay attention to the increase in volatility that occurred after the news was worse than expected.

Source: eSignal

We mentioned earlier that trade news is more difficult than you think. Why? The main reason is volatility. You can make the right move but it is finally stopped or the market may not have the momentum to maintain it.

Let's look at the table in Figure 3 for an example. This chart shows the activity after the release that is the same as shown in Figure 2, but at a different time frame to show how difficult trade news releases. On November 4, 2005, the market expected 120,000 jobs to be added to the U.S. economy, but instead, only 56,000 jobs were added. This sharp disappointment caused a sell-off of around 60 pips in the dollar against the euro in the first 25 minutes after the release.

However, the momentum of the dollar's rise was so strong that profits quickly reversed, and an hour later, EUR / USD had broken the previous low and actually reached a 1.5-year low against the dollar. A lot of opportunities for traders to breakout but the bullish momentum in the dollar is so strong that the number of poor payrolls fails to place a sustainable dent in the currency rally. One thing you must remember is that, behind good numbers, strong steps must also see strong extensions.

Figure 3: This intraday chart shows that, while worse-than-expected non-agricultural figures send the EUR / USD level up for a short period of time, the strong momentum of the US dollar is able to take control and push the dollar higher. Keep in mind that when the EUR / USD exchange rate falls, the US dollar will rise, and vice versa.

Source: eSignal

Can I avoid being exposed to Volatility When Trading News?

The answer to catching a breakout in volatility without having to face the risk of reversal is to trade the SPOT FX option. A number of different FX brokers offer a variety of exotic options. Exotic options generally have a barrier level and will be advantageous or unfavorable based on whether the barrier level is violated. Payments are predetermined and premiums or option prices are based on payments. The following are the most popular types of exotic options to use to trade news releases: 

• Two touch option
• One-touch option
• Options without double touch

The double touch option has two barrier levels. One level must be violated before it expires so that the option becomes profitable and for the buyer to receive payment. If no barrier level is broken before it expires, the expiration option is worthless. A double-tap option is a perfect option for trading news releases because this is a pure non-directional breakout game. As long as the limit level is violated - even if the price reverses later - the payment is made.

The one-touch option has only one level barrier, which generally makes it a little cheaper than the one-touch double option. The same criteria apply - payments are only made if the barrier is violated before it expires. This is a good option to buy if you really have a view on whether the amount will be stronger or weaker than market consensus estimates.

The double no-touch option is the opposite of the dual one-touch option. There are two barrier levels, but in this case, the barrier level cannot be broken before it expires - if not, option payments are not made. This option is great for news traders who think that an economic release will not cause a real escape in the currency pair and that it will continue to trade around.

SPOT FX options are a viable alternative for those who don't care to get whipsaw on the market with undue volatility before they actually see spot prices moving in the direction they want.

The Bottom Line

As we have seen, currency markets are very vulnerable to short-term movements caused by the release of economic news from the US and around the world. If you want to trade news successfully on the FX market, the main consideration to remember is knowing which releases are expected when, which are most important given the current economic conditions and, of course, how to trade based on this market transfer data. A variety of exotic options are available for traders who want to catch escape in volatility without having to face the risk of reversal. Do research and stay on top of economic news and you can get results.

How to Choose a Forex Broker?
TopAsiaFx.com helps you compare and choose your preferred Forex Broker. We suggest keeping the following checklist in mind when making your decision:

• Is the Forex Broker regulated?
• Account Details: Ideally, your broker should offer either a selection of account types or some element of customizability. Competitive spreads and easy deposits/withdrawals are good indicators too.
• Number of Currency Pairs offered: The variety of currency pairs on offer, as well as the quantity, should be considered (the more of both, the better).
• Availability of Customer Service.
• Quality of the Trading Platform: look for a platform that is easy to use, straightforward and offers a collection of technical and analytical tools to enhance your trading experience.

Rank	Broker Name	Special Offer	Minimum Deposit	Spread	User Score	Maximum Leverage	Regulation	Start Trading
1	NordFX	55% Deposit Bonus	$10	0.0 Pips	96	1:1000	VFSC	Open Account
2	SGT Markets	Refer a friend $10	$500	0.0	95	1:400	IFSC	Open Account
3	OctaFX	50% Deposit Bonus	$100	0.4	94	1:500	IBC	Open Account
4	Exness	No	$1	0.1	93	1:2000	FCA,CySEC,IBC	Open Account
5	IC Markets	No	$200	0.0	92	1:500	ASIC	Open Account
6	Tickmill	$30 Welcome  Account	$100	0.0	91	1:500	FSA,FCA	Open Account
7	Axiory	$50 Deposit Bonus	$200	0.0	90	1:400	IFSC	Open Account
8	Justforex	100% Deposit Bonus	$1	0.0	89	1:3000	IFSC	Open Account
9	ThinkMarkets	No	$250	0.4	88	1:400	ASIC,FCA	Open Account
10	XM	$30 Welcome Account	$5	0.0	87	1:888	ASIC,FCA,IFSC	Open Account
11	FBS	$50 Welcome Account	$1	0.0	86	1:3000	IFSC	Open Account
12	HotForex	No	$5	0.0	85	1:1000	INC	Open Account