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How to Choose the Best Forex Broker: FXCM and Oanda
Investigating the best currency brokers is absolutely critical to your success with the foreign exchange market. Only the best currency brokers will have low spreads, allow flexibility in your positions, fast response time, and most importantly support a strong foreign exchange platform. There are many forex brokers out there today, but there are only a few that are considered reputable and have consistently good ratings. Of all currency brokers, the top two in existence today are FXCM and Oanda. Both of them have pros and cons depending on trading style.
Your forex platform will be your best friend while trading. It needs to respond quickly to your needs and have robust charting features that you can easily customize and follow. Both FXCM and Oanda support the use of MetaTrader, which is the most popular forex trading software. FXCM and Oanda also have their own trading platforms. FXCM needs to be installed on a specific computer, and Oanda has a purely online platform that is launched from their website.
Oanda allows more flexibility than FXCM in opening new positions, and virtually any type of trade can be input if necessary. This allows more advanced methods of training with Oanda, but it also means that FXCM may be more suited to beginners because it controls their trading on some level. Both Oanda and FXCM allow you to open an account with very little initial investment, but small accounts may be more successful on Oanda because you can make very small trades. FXCM has a lower limit on how small the trades can be.
Spreads are critical when considering which forex broker to commit to, so it's a good idea to look at all forex brokers and compare the spreads of the pairs that you want to trade. Ultimately, forex spreads may be the deciding factor on which broker you consider. Historically, Oanda and FXCM have both had very low spreads. For rare currencies, Oanda may have more available pairs than FXCM.
Ultimately, the best forex broker is dependent on what is best for you and your strategy. You'll need to consider which pairs you want to trade, what the spreads are, and how the trading platform is set up. Since all reputable forex brokers allow demo accounts, the best plan of attack is to simulate trades on several major forex brokers and see which broker feels the most natural and responsive to you. You can visit http://www.forexcharts.net/currency-brokers.html to see which broker best fits your trading needs.