How to test a binary options broker. Trusted Forex Brokers
You can learn about dozens of different forex dealers. Each of the reviews tried to do as objectively as possible. To prove it, we will tell you how to check a forex broker. We will give recommendations that we ourselves use when evaluating a dealer. After reading the article to the end, you will understand how to choose the right platform for work.
Company regulation
The first step is to check the honesty of the company. For this, look at the dealer's adjustment. We advise you to work exclusively with regulated companies, and licenses must be issued by reliable organizations.
The license of a proven regulator is the same piece of paper that an unknown office can draw. But getting it is much more difficult. To get into the register of such regulators as CySEC, FCA, BaFIN and other financial commissions and national banks different countries, DC must meet stringent requirements.
Full performance reporting authorized capital, storage own funds and customer deposits in different accounts are just some of the requirements. In addition, in order to obtain a license from a reliable European regulator, a company must register in that country. So, you will be more secure for the following reasons:
- The license of a reliable regulator inspires confidence among newcomers. Therefore, many DCs value it, therefore they do not try to deceive their customers.
- Entering a DC into the register of an organization is expensive. Therefore, it is not profitable for the company to deceive users with little capital.
- Regulators can not only revoke the license, but also impose fines and even start legal proceedings against the broker.
- Each controller has compensation fund, which is replenished by participating companies. If the broker deceived you or the dealer went bankrupt, you can contact the regulator and receive compensation.
Here are a few companies that have received licenses from reliable regulators:
- - Central Bank of the Russian Federation, National Bank of the Republic of Belarus;
- – CBR, CySEC;
- FxOpen - FCA, ASIC;
- Exness - CySEC, FCA.
Broker experience
The next tip for checking a broker is to look at the experience of the company. The longer the dealer provides services, the better for traders.
Brokers who have been working for 5, 10, 20 years on the market usually consistently pay out money to their clients, even if they partially or completely work according to the "kitchen" system, that is, they do not display their clients' transactions on the interbank market.
The fact is that experienced brokers have long developed their client base. Hundreds of thousands and millions of traders trade on their platform. And the more customers, the higher the company's turnover (and, accordingly, its profit). Since in the field of trading most users lose their money, a dealer with a large trade turnover it is not difficult to consistently pay out money to successful clients, there are still much fewer of them.
When choosing a broker, we recommend that you study in more detail dealers who have been on the market for more than 5 years. There are enough of them. , Robo Forex and InstaForex have been operating since 2008. And Forex Club in 2017 celebrated the 20th anniversary of its work. Each of these dealers is stable and regularly pays out money to their customers.
Read the reviews of traders
Traders do not like to share their trading strategies and talk about your income. But many willingly share their opinion about working with a particular dealer. There are plenty of popular trading forums, so you can easily find reviews of every well-known broker.
With little-known offices, the situation will be more difficult. But if you can not find reviews about the company, it is better not to contact it.
Another difficulty with reviews is that among all the comments there are a lot of custom ones. Moreover, both positive and negative reviews about the company can be paid. Here are some tips that will help you more objectively check a forex broker based on reviews:
- Look for comments only on thematic resources. They have more experienced traders, which can really tell whether it is worth working with a dealer or not.
- When looking for comments on the forums, pay less attention to posts whose authors have only recently registered or left only a few posts on the site. Most likely, these accounts were created to post a few bespoke reviews.
- Rely more on testimonials with evidence. It can be screenshots, videos. Even a convincingly composed text, alas, can turn out to be a fake. So the commentator can describe how the company quickly executes orders and pays out any money, but in practice, charts are drawn, transactions do not open for several seconds, and it is possible to withdraw no more than 1-2 times.
Explore the site for more details
Of course, you need to study the trading conditions. But not only. Read the user agreement, section "About the company". Find out where the dealer is registered and what obligations he must adhere to.
Chat with technical support. Firstly, you will be able to understand the professionalism of consultants and assess whether they can help if problems arise during the work. And, secondly, clarify information on regulation and registration. Sometimes the information on the site differs from that given by consultants.
Make a deposit
This is the surest way to check a broker, but it does not make sense to use it all the time.
Before investing in a new account on the broker's platform, make sure that the stated trading conditions suit you, and that feedback and regulation information have been studied. If the company suits you in all aspects, invest money, but only the amount that you are ready to lose.
Now you can evaluate the quality of execution, and if you still don’t lose all the money, evaluate the speed of withdrawal. If the opinion of the company does not change and it still suits you, you can invest more.
Site ratings
The last tip for today for checking a forex broker. Look for it in our ratings. We have created several tops in which we included the best dealers according to different criteria. The lists have already selected reliable and trusted companies with which you can start working right now.
The choice of a broker should be approached as responsibly as possible. No matter how profitable your strategy is, but if the company "draws" quotes, does not withdraw money, the terminal malfunctions, you will not be able to earn on BO. Today's material will be devoted entirely to how to check a broker.
Pre-registration check
Even before the registration stage on the site, you can check the company for honesty, for this:
- we study the presence of regulators, protection is not 100%, but better than nothing;
Check the blacklists on the website of the Federal Financial Markets Service, CySEC and other regulators. Many forge certificates, beginners are not particularly inclined to a deep analysis of the work of the broker, so the deception does not come up immediately.
- read the reviews of other traders. Of course, no one canceled the purchased reviews, but they are easy to distinguish from the general mass by the style of writing, they usually write the same thing, without any specifics;
- read the terms of the client agreement, at least in terms of depositing / withdrawing funds. Some offices have interesting restrictions, for example, may be prohibited trade that contains elements;
- pay attention to trading conditions.
This is a preliminary check of the broker. At this stage, all those who cause even the slightest doubt are eliminated.
We study quotes and the speed of execution of orders
No one will take you to the interbank market, customer transactions do not go beyond the company, but this is not a problem, the main thing is that the earnings are regularly paid. Another condition for earning is reliable quotes.
Liquidity providers are the same as forex firms, so in theory quotes must match. This can be easily checked by comparing the chart of your broker and, for example, .
The norm is the discrepancy in quotes in 4-5 decimal places. This is due to the fact that the data for different liquidity providers is still slightly different. In addition, companies receive information with a slight delay. The main thing is that there are no unexpected peaks on the chart that other sources do not have, if you see this, then your broker is cheating.
Only charts related to crypto-currencies and crypto-indices stand apart. Here the difference in price can reach a couple of tens of dollars. Depends on which crypto exchange quotes are used.
As for the term of execution of orders for the purchase of options, this criterion will be important for those who are actively trading at the time of the release of news of the first magnitude. At this time, the chart can cover a distance of tens of points in a few seconds, so the speed of execution of an order to buy an option comes out on top. During this time, there may be delays in execution of up to several seconds.
Convenience and speed of withdrawal
Another option is how to check a broker binary options on decency - try to withdraw money from the account. It is not necessary to close the account and withdraw all the money, try to do it with a small amount. Compare the timing of the withdrawal, whether they will put spokes in your wheels, it often happens that they promise to withdraw almost instantly, but in fact you have to wait almost 1-2 weeks.
And yet - everyone has a limitation regarding the withdrawal methods. The currency will be transferred only to those details from which the money went to your wallet. This is not a hoax, not a whim of the company, but a universally accepted practice.
If they start demanding additional documents, endlessly delay verification, refer to the workload of the financial department, etc., then you are simply led by the nose. Formally, the company can really request additional documents from you (there is such a clause in any client agreement), but in fact do this in order to delay the withdrawal process as much as possible.
The calculation is simple - the longer the withdrawal is delayed, the more likely it is that the trader will continue to trade and lose money. And there it will be possible with a clear conscience to cancel the application for withdrawal, then there will not be enough money in the account.
Conclusion
It is not difficult to check a binary options broker, beginners are just too in a hurry to start trading, therefore they often ignore this stage. The audit will allow you to find out if the company has weaknesses, and after that the trader will decide for himself whether he is ready to put up with the identified inconveniences.
If you choose proven companies from our best, then there will be no problems with trading. None of them allow themselves to cheat and deceive customers.
According to A. Elder, 3 criteria determine and lay the foundation for the success of a trader: knowledge and ability to apply technical analysis, money management and psychology when trading on the forex market. According to the MF, it is necessary to add the 4th criterion - the reliability of your forex broker, because. As the experience of more than a dozen students of the Masterforex-V Academy (who were not paid profit by numerous DCs) has shown, making money on Forex and getting it from a broker are two different things. Why do you need the first 3 criteria for successful trading by A. Elder if the broker does not pay you a profit? How to accurately choose a "reliable broker" forex?
Why are the standard criteria for choosing a forex broker - profanity and deceit?
In the literature and on Internet sites on this subject, you can find the following standard criteria for choosing a "reliable forex broker":
- long-term history of this broker (dealing center, bank) on the stock exchange and the forex market;
- broker license for this type of activity;
- availability of branches, incl. abroad;
- broker awards at prestigious exhibitions, competitions, high places in ratings and media reviews about him;
- positive feedback about work on forums, conferences, blogs, chats of forex traders;
- high places in "independent ratings" on the Internet of this broker;
- spread, leverage and amount currency pairs, by which you can work with this DC;
- a solid analytical base on the campaign website;
- fame and reliability of the bank in which the DC account is opened, etc.
Do you agree that these criteria will help you choose a "reliable broker"? Or did you feel that there was something “not right” here?
What are the disadvantages and deceit of the standard ratings of brokers and DCs?
Comments of Masterforex-V about "standard broker selection criteria":
1. Apply these criteria to any failed bank in the world during the 2008/2009 crisis, and you will understand the slyness of these "best broker" selection criteria. The fact is that each of the failed banks had a license from the National Bank, and numerous branches, and "a long-term impeccable reputation", and a huge staff of "competent employees", and a "solid analytical base", and "positive customer reviews".
What's the bottom line? Banks go bust, just like brokers go bust. I hope it is clear that the "standard criteria" of a "reliable broker" are compiled by analysts of the brokers themselves and will not be able to help you, as a trader, in choosing a reliable broker?
2. Why is the availability of licenses an insufficient condition for checking the reliability of both a broker and a bank? Because the withdrawal of a license from a broker is usually significantly late in relation to the first problems that traders of this broker have. For example, the company did not settle accounts with two of its traders - students of the Masterforex-V Academy in 2009, but lost their licenses... a year and a half later in July 2010 from Federal Service on the financial markets of Russia and in December 2010. from the regulator for work on financial markets Mauritius FSC (Broco's domicile), which revoked licenses and banned BroCo from operating.
Similar situations were with other DCs that did not pay profit to students of the Academy - DC, DC, DC, DC, etc.
3. "Everything flows, everything changes", said the ancients. Dealing is a business where, as elsewhere in the business environment, numerous components become different over time, therefore:
- the broker who yesterday was the best in terms of spread, commission, swaps, licenses... tomorrow may not return the profit and return the deposit successful trader. As a result, this fact will kill all other advantages of this broker;
- in the absence of data on the profit and loss of brokers, are you sure that if a DC has been on the market for 35 years, has all the licenses, an impeccable reputation, it will not go bankrupt in the 36th year? For example, as a well-known American brokerage company (1969-2005), whose last head, Philip Bennett, systematically forged financial documents reporting by hiding debts of the brokerage company in the amount of $430 million. financial statements? At the same time, if a trader demands a profit from a broker, the DC is not hiding, no, he responds ... threatens his former trader (details in the topic. Therefore, if you hope to sue a dishonest broker, get ready for the fact that he can sue you "for libel", "for market manipulation", "for fraud". Are you ready to fight him in a US court? Listening on a dozen forums controlled by a broker that "you are a fraudster, not a broker", about how you will be wanted by Interpol by a court decision in the United States, etc.
4. About "independent ratings" and "reviews of traders" on Internet sites and trading forums on the Internet. Are you sure that "positive reviews" about the work of DCs are written by traders? For 7 years of operation of the most popular trading forum Masterforex-V, 19 brokers received a warning "for spam" (rave reviews from 2 or more users from one IP about one (probably their own) DC, "accidentally" coinciding with negative reviews about their competitors).
How to get around the traps of many unscrupulous brokers, through one who call themselves "the world's leading brokers", without making a mistake in choosing their DC for working on Forex?
Why Masterforex-V Academy has its own rating of forex brokers?
Now you can easily find 30, 50 or even 100 Forex brokers, on whose website you can register and start working. But many of them are scams (scammers). When replenishing a deposit on such platforms, on the account you already see just numbers that will never turn back into money.
There are those who can pay small amounts. But as soon as you learn how to consistently trade in profit, you will quickly merge, and through no fault of your own.
You need to work only with a reliable company (thanks, Cap). But how to check a forex broker and determine if he can be trusted? We will talk about this today. We will give 5 tips that will help weed out scammers and choose the best dealer for yourself.
1. Ratings on the Anyforex website
For you, we have already prepared about 20 different tops (and there will be more). Each of them talked about the best dealers for certain qualities. Be sure to read the "" section. And that's why:
- Each dealer in the tops was chosen objectively. We do not promote any company just for our own benefit.
- In addition to reliable dealers, you can also choose a company based on certain qualities. For example, you can choose ;
- The list contains only reliable companies that meet all the criteria described below.
If you trust us, you can not read further advice. Do you want to be responsible for choosing a company? Then we recommend that you pay attention to the information that we will give below.
2. Experience
Let's just say that this is not a key factor. However, it certainly won't be redundant.
Many scammers quickly disappear or change the name and design of the site and enter the market already under the guise of a new office. If the company has been operating for less than 1-2 years, we recommend not registering on the site, much less depositing money.
Of course, there is a possibility that new company turns out to be honest. But why take the risk? Now there are enough companies that have been on the market for more than 10 years and have long proven their reliability.
Yes, you can stumble upon a dubious kitchen that has been operating for more than 5 years. Nevertheless, there are more scammers among young firms.
3. Regulation
The forex market is regulated much more seriously than the same binary options. Large dealers are looked after by state regulators in European countries, as well as Australia, Asia and sometimes the United States. Even the Central Bank of the Russian Federation is engaged in the regulation of forex dealers. By the way, we also have .
- FCA - UK;
- BaFIN - Germany;
- CySEC - Cyprus;
- CFTC - USA;
- ASIC - Australia;
- Central Bank of the Russian Federation - Russia;
- FinaCom is an international organization.
These are the main ones, but the list is incomplete. There are also reliable regulators from Asia and even offshore.
A license from a reliable regulator will not protect you from fraud if the broker decides to deceive you. But you can file a complaint, which will be considered and if the company's fault is proven, it will be punished, up to a fine and deprivation of a license, and you will receive a refund.
The maximum amount of payments from the regulator depends on the organization. For example, FinaCom can pay up to EUR 20,000 per complaint.
Licenses from reliable regulators are expensive. And hardly anyone would want to lose a document and reputation for the sake of deception for several hundred or even thousands of dollars. So choose a regulated dealer.
How to check a forex broker for the presence of a regulator? Usually all companies like to brag about their certificates, especially if they are issued by reliable organizations, so read more home page. If you don't find regulation information on the site, contact technical support (which we'll talk about later) to clarify this issue.
4. Reviews
It is not always possible to assess the reliability of a broker only from the information on its website. The surest way to test a forex broker is to fund your account, trade and try to withdraw profits. And what more amount deposit, the more accurately you can get a picture of the company.
But I don’t really want to constantly check companies and risk my own money.
They learn from their mistakes, they make a career from others. Mikhail Zhvanetsky.
It's one thing to lose money while learning to trade and gaining experience. Another is to give money to an incomprehensible office just to check its competence.
Read the reviews of traders. Study trading forums and blogs where already experienced speculators can advise which broker is worth working with and which one is not worthy of attention. From the reviews, you can also find out why the broker is attractive or how exactly users can suffer from its actions.
Do not forget that the network is full of customized reviews. With experience, learn to identify them immediately. In the meantime, give preference to comments with evidence of words: screenshots, videos, etc.
5. Detailed acquaintance with the site
Having studied in detail the site and the work of the broker, it is already possible to draw some conclusions about the company. For example, a broker has a Russian-language version of the site, but the translation is clumsy and incomplete. This may indicate that the company is not focused on providing the highest quality services to its traders.
First of all, pay attention not to the section with bonuses, but to the following elements of the site:
- Terms of use. Be sure to read it carefully. From the agreement, you will learn all the features of working on the broker's platform.
- Online chat (if any). Chat with support, evaluate the professionalism of consultants. Ask about trading conditions, regulation, company registration. If you notice inconsistencies in the answers or completely ignoring questions, this is also a bad sign.
Also, don't forget about the regulation and general condition of the site, including the design. Yes, the appearance of the site is also important. When we prepared reviews of forex brokers, we came across companies whose design has not been updated since the beginning of the 2000s. Disgusting design, incomprehensible interface and difficult navigation will interfere with your work. And if the company doesn't really care, is it worth working with?
These 5 factors will allow you to check the broker for suitability. We will not claim that you will weed out all dishonest dealers in this way, but there will be many more dishonest ones on your list of unequivocally reliable companies.
Which brokers bring transactions to the interbank market? This moment is very important when choosing a company with which you are going to work in the currency market.
In Forex terminology, an interbank is a worldwide network or system in which financial organizations and banks trade currencies with each other. This system, give a chance banking institutions and financial institutions maintain liquidity, as well as serve retail clients.
How to find out which brokers bring transactions to the interbank market or the market?
To find out which brokers bring transactions to the interbank market, you should pay attention to their technologies for providing quotes to clients. If we consider the issue globally, then all brokers according to technologies for providing quotes are divided into 2 subtypes:
- Dealing Desk (DD) brokers, otherwise -
- and those of interest to us: - .
Do market makers bring traders' deals to the interbank market?
So, market makers provide clients with "their" quotes. Here the system is such that the trader makes a request to open an order at the set price, and the broker forwards this request to his liquidity provider. Further, having received a response, the broker (Market maker) "tweaks" the received quotes with its own benefit and then sends them to clients.
Clients of such brokers do not receive real market prices, therefore they suffer from various manipulations.
As a rule, such brokers have fixed spreads, and your losses on transactions are direct income of the company. Conflict of interest on the face!
Why invest in Komodo cryptocurrency?
Do ECN brokers bring traders' transactions to the interbank market?
The second type of brokers (ECN brokers) use STP technology and provide clients with direct quotes from ECN platforms directly from liquidity providers. Here, the requests of traders fall into a kind of aggregator that selects the best way from the entire quote stream and then directly broadcasts it to the client.
The use of such technology enables the trader to receive the real market price.
Brokers that send transactions to the interbank market do not have requotes, that is, there is no delay in the execution of orders and various quotation manipulations are excluded. The earnings of such brokers are those charged from traders for making transactions. So how do you know which brokers bring transactions to the interbank market?
The main features of an ECN broker, that is, a broker that brings transactions to the market, include:
the possibility of gaining access to well-known ECN sites (IntegralFX, LavaFX, Currenex, 360T and others).Please note that today many dealers claim that they withdraw transactions on Currenex, but they do not provide access to the platform itself. If you notice this, then the broker is deceiving its clients.
the ability to observe Level II - the use of a window where absolutely everyone who participates in the system, starting from the largest financial companies and ending with ordinary traders; the ability to change the quote with your deal placed inside the spread, which will be visible to all clients of the broker; either before or after the transaction, you can see the counterparty.Some brokers that bring transactions to the interbank market give you access to ECN platforms through which you can trade, for example, with Bank of America, Duetsche Bank, UBS or Goldman Suchs. At the same time, all this is reflected in the quotes window (you can see which quote belongs to whom) and in the reporting;
no fixed spreads; broker income - commissions from client transactions.Let us remind you once again that when choosing a company, one of the most important stages is to find out if the broker brings transactions to the interbank market, because if you miss this moment, then in the future such a mistake will be very expensive. That is why we suggest that you familiarize yourself with the list, from which you will find out which brokers bring transactions to the market.
TOP 6: list of brokers bringing transactions to the interbank market
TOP 1: Alpari is a trusted broker working at the interbank level
Completes our list of brokers that take trades to open market by Alpari. This largest broker, which has been providing Internet trading services since 1998, uses two business models, Standard and ECN, depending on the type of account a trader uses.
Standard model - according to classic and cent accounts transactions on the interbank market are displayed on the general positions of all traders, and the clearing itself is carried out internally. For this reason, transactions are carried out according to the Instant Execution protocol, that is, at stream prices, and accordingly, a requote may occur.
As for ECN accounts, client requests are processed automatically and transactions are displayed on the interbank market without brokerage participation using the MetaTrader4 Bridge technology. In this case, transactions are executed at market prices (protocol Market execution), without requotes and instantly.
TOP 2: Amarkets company with a system for withdrawing transactions to the interbank market
The list of brokers that bring transactions to the interbank market also includes the Amarkets company, also known in Russia and the CIS countries under the AForex brand.
For clients, the company provides a wide range of different trading instruments, ranging from currency pairs to CFD contracts, commodities, bonds and stocks.
For successful trading, Amarkets broker offers clients everything they need, paying particular attention to the high speed of order execution, as well as the accuracy of quotes. All this is possible due to the fact that the company provides direct access to the interbank market and does not conflict with traders.
TOP 3: brokerage company - RoboForex
The first in our list of brokers that bring trades to the open market is RoboForex. In its activities, the broker uses the classic STP business model.
According to this model, the company acts as a kind of intermediary between clients and liquidity providers, receiving a part of the spread for this, therefore, it is not interested in conflict with its traders. On the contrary, it is beneficial for the broker when the client trades profitably and increases the volume of transactions.
TOP 4: broker FreshForex, with the withdrawal of transactions to the interbank level
The next company that is included in the list of brokers that bring transactions to the interbank market is FreshForex. There are no requirements on any of the broker's account types regarding minimum size depot. Orders are executed according to the Market Execution protocol, there is access to Swap Free accounts, and the use of trading robots is also allowed.
Thanks to the use of the Smart Bridge Technology mechanism (risk hedging) and NDD technology, all transactions of the company's clients are displayed on the interbank market. At the same time, transactions are brought to the market even those whose volume is from 0.01 lot. The result of all of the above is instant execution of your orders, no requotes and very low spreads.
TOP 5: broker - Opening and its features of bringing transactions to the market
This broker is part of the vast Otkritie financial group and, as of 2015, had a volume of client transactions in the amount of more than 18 trillion rubles.
It should be noted that the company has the highest AAA reliability rating and has the following advantages:
- starting deposit from 1,000 rubles;
- availability of a personal investment consultant;
- trading orders can be given over the phone;
- prompt receipt of information about the state of the market thanks to the news line "Interfax";
- instant execution of orders due to the withdrawal of the transaction on the interbank market and much more.
TOP 6: FxPro - STP broker that brings transactions to the interbank market
So, what other brokers bring client transactions to the interbank market? These companies include the broker FxPro, which serves clients from more than 150 countries around the world. With this broker, you can trade using 5 types of instruments - stocks, currencies, metals, spot indices and contracts for energy resources.
The significant advantages of the broker are instant execution of transactions, the ability to trade simultaneously on a large number of world markets, as well as high-quality communication with the company's server.
Why do brokers bring transactions to the interbank market?
Let's first analyze why it is necessary to bring transactions to the market at all. Let's start with the fact that the interbank level is needed in order to provide liquidity to transactions. If all transactions will be circulated only within a certain one, which is not engaged in either production or sales, then where will it get the funds to pay income to traders?
To put it simply, the interbank market is a connection between those who sell and buy currencies. Each of the participants in the interbank market has its own specific goals, and each of them receives its own benefit from the operations carried out.