Are Small Brokers all Scams?
As a result of the popularity of forex trading on different platforms, thousands, if not millions of new traders are flocking the market. The forex brokers range from the highly reputable and regulated brokers to others who engage in questionable trades. Because of the disparities, people are always looking out for forex brokers that handle multiple accounts honorably.
The best brokers have reliable, fast and efficient order execution practices. On the other hand, unreliable brokers are guilty of fraud with some known to file for bankruptcy and others hiding millions of money in bad debt from clients and investors. The unruly brokers also fail to develop segregated accounts for their customers.
Because of these realities, you have to be careful when choosing forex brokers.
When choosing a trusted broker, you have to check out their regulation reputation, domicile and their source of funding. You also have to check out their trading platforms, support systems, execution of orders and spread margins.
You should be aware of outrageous marketing claims, excessive slippage on stops, unusual trading rules, and front-running orders. You should also consider their deposits and withdrawals, types of accounts used, and use of bonuses among others.
But just because a brokerage is not as popular, it doesn’t mean it’s a scam. Here are nine smaller brokerages & my honest ratings.
This forex broker founded in 2008 is one of the renowned global leaders in forex brokerage. It is regulated by CySEC, BaFin, CRFIN, Banque de France, CNMV, CONSOB, FI, and KNF. It has a monthly trading volume of 180 billion USD. As one of the leading players, EXNESS provides 0 percent commission on deposits and withdrawals. They offer tight spreads, and there are no hidden commissions charged. You can leverage up to 1:2000 and you get instant withdrawals.
EXNESS offers 24/7 technical support to its customers, and the customer service team is multilingual offering support in 13 languages.
EXNESS has access to a high position in the forex market, and it also enjoys free VPS hosting. It is available in the universal standard MT4 as well as MT5.
It is a top choice for most traders, and there are over 15,000 new accounts opened daily.
Through EXNESS, you get access to a demo account, an Islamic Account, and a Standard account. The applicable funding options include bank transfers, Neteller and Credit Cards. The major market instruments include energies, agriculturals, majors, and forex.
NeroTrade is one of the leading Forex Brokerage and investment companies specializing in global financial markets. You can trade in currencies, CFDs, commodities and stock indices. It is located in the Financial Services Centre Stoney Ground, St. Vincent, Kingstown, and the Grenadines.
Accounts: as a trader on NeroTrade, you get to trade through the mini account, Gold account, ECN or the platinum accounts, with deposit requirement of $500, $5000, $5000, and $50000 respectively. These accounts are suitable for newcomers, familiar traders, professional, and experienced forex traders.
Traders with ECN accounts are allowed to trade with Bitcoin pairs. Trading with Bitcoins gives you direct market access reserved for major liquidity providers – this is the prerequisite for trading this highly popular but volatile asset.
NeroTrade offers a demo account which offers an opportunity for financial trading in a risk-free environment. You will receive real-time updates as you experience world market volatility. Traders also get to test strategies using technical tools available to the seasoned traders.
Bonuses and promotions – NeroTrade currently offer a special 30 percent deposit bonuses for traders in the Russian ruble. They also have a refer-a-friend promo.
Ease of use: NeroTrade has a user-friendly website that is easy to navigate. It is available in Arabic, English, French, Portuguese, Italian, and Russian. The features have clear explanations. Trading runs through systems with cutting-edge technology, and you can see and share real-time trading decisions.
Deposits and withdrawals done via credit cards, QIWI, wire transfers, and CashU. Unfortunately, there have been scam reports and this broker isn’t regulated.
LiteForex Investments Ltd was founded in 2005 and it’s domiciled in Cyprus. It is under the regulation of CySEC meaning you can trade on the site without worry. They also feature a Marshall Islands branch though this is subjected to more flexible and a loose regulatory regime. It has been on the market for over 12 years.
Traders have access to ECN, Classic, and CENT accounts. LiteForex trades in different assets including crude oils, metals, cryptocurrencies, stock market indices as well as CFDs.
The brokerage company offers bonuses of up to 200 percent.
This forex broker is regulated and though the FPA Scam Finding against them dated September 17, 2013, got lifted with involved traders having received their funds.
OctaFX was formed in 2011, and it offers services to customers in more than 100 countries around the globe. The operations of OctaFX are regulated by the British Financial Conduct Authority (FCA). Unfortunately, US clients aren’t allowed to trade through the broker at the moment.
It is trustworthy since it operates in full compliance with the international regulatory standards and legislation. It also has a secondary license authorizing its operations. The license is from the International Business Companies Act from St. Vincent and Grenadine regulatory authorities. Because of its reliability, OctaFX received recognition for their achievements by the Global Banking & Finance. Since they started trading, the broker has received about ten nominations.
IFC Markets is one of the leading and regulated forex brokers in CFD and Forex markets. It is located in the British Virgin Islands and has been in operation from 2009. Through the years, IFC Markets has been working to offer the most innovative trading. It holds Indemnity Insurance with AIG Europe Limited. It offers demo accounts, different trading platforms, (and) visual educational materials. They don’t offer any bonuses and promotions.
Unfortunately, they have no known regulators. Since the forex broker is located in the British Virgin Islands, their operations aren’t trusted. The BVI is a tax haven whose general perception is negative.
Founded in 1998, Alpari is at the lead in online trades that relate to forex, spot metal, CFDs, and stocks. It started small, but it’s grown into one of the largest forex brokers online. It is registered in Belize and regulated by the Belize International Financial Services Commission as well as the Financial Services Authority of Saint Vincent and Grenadines. Alpari is also a member of the Financial Commission – an international dispute resolution organization in the forex trading industry.
Having been operational for about two decades now, it is reliable, honest and transparent. It has won several awards, and most recently it won the ‘Best Binary Options Broker’ for the year in 2015.
AxiTrader is an Australian ECN broker founded in 2008. It is under the regulation of ASIC. Thanks to its versatility, AxiTrader is the recipient of several International awards including, but not limited to the Best Financial Institution 2014. It accepts US clients through its subsidiary in the USA, AxeTrader USA.
Other than currencies, AxiTrader also offers trading options in gold, silver, oil, indices, and CFDs. While trading with AxiTrader, you only get access to two accounts, standard and Pro both of which operate on the MT4 platform.
AxiTrader opens five days a week, and it has a 24-hour customer service plus live chat. Customer service support is available in 6 languages across 12 countries.
Tradeview is a forex broker regulated by the Cayman Islands Monetary Authority, CIMA. CIMA oversees financial activity in fifth largest banking center in work and, it has more than 1.5 trillion in banking assets.
It has several types of brokers, a multi-account manager, and fund security. It features a secure banking system. Customer support is available in nine languages other than English making it easy for traders to communicate.
Unfortunately, customer support isn’t the best and the company has limited currencies and no indices.
Based in the United Arab Emirates, FxGlory is a leading international online broker regulated by the Department of Economic Development (DED) in Dubai.
FxGlory also has branches in Tbilisi, Georgia and Plovdiv City in Bulgaria.
It is one of the easiest platforms to trade on after you make your minimum requirement of $1. They offer the highest leverage on the market that stands at 1:3000.
All FxGlory accounts are swap-free and Sharia Compliant.
I hope this writeup helped you find the best broker for your needs.