Last update 2121.01.18
There are lots of different types of Forex Brokers offering similar services but with different rules and limits for fx traders. Then, searching on the internet, it’s not easy to find an article that clearly explains the real benefits of certain brokers for specific requirements. Thus, here we want to present the different types of forex brokers to help traders understand their differences and benefits.
What you can learn ahead 🎓
- Finding the best forex brokers
- How do forex brokers work
- Who regulates forex
- How to invest in forex with AI trading
- What are the best forex brokers to trade?
Finding the best forex brokers
If you Google “forex broker” or “forex trading broker” it will give you back around 5.570.000 results. So, the task of choosing one of them to start trading in the forex is not always easy. We evaluate some of the most relevant aspects of choosing one, as we are going to present.
In another article, we covered the top forex brokers in 2020 and their benefits. Click here to check them out and find the best broker for your needs.
How much you pay to trade forex?
Forex brokers make money in a variety of ways. It means that they usually charge the client spreads, trading commission, and other fees. Some forex brokers offer different types of prices, based on the type of trading account. For example, almost all Forex brokers provide a Premium trading account that offers raw spreads and commissions over traded lots. There are also standard trading accounts, which are an alternative for retail traders with small deposit accounts.
📌 Therefore, it is not easy to compare, because each broker uses different rules to charge customers. I tried to make them comparable by using the AUD/USD forex pair every time it was available as an example. Other times I used the average spread presented on the website.
How much risk do they allow in trading?
Other relevant information is leverage. Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, money is usually borrowed from a broker. Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up—and control—a huge amount of money. It means the amount of risk each broker allows you to take. The results of a position with 30:1 leverage is quite different from one with 500:1 leverage.
Margin-Based Leverage = Total Value of Transaction / Margin Required
For example, if you are required to deposit 1% of the total transaction value as margin and you intend to trade one standard lot of USD/EUR, which is equivalent to US$100,000, the margin required would be US$1,000. Thus, your margin-based leverage will be 100:1 (100,000/1,000). For a margin requirement of just 0.25%, the margin-based leverage will be 400:1, using the same formula.
What do regulators say about it?
We check if they are registered in the main forex regulatory agencies worldwide. Using, CFTC (forex regulator in the USA), ASIC search for Australia, FCA in the UK, and others when necessary. It is very important to safely invest your money because those agencies establish the best practices on forex trading services. They can mediate conflicts between brokers and traders if necessary.
It is also important because it exists a really big number of clones of registered companies. You must be aware: even on specialized websites, you may find some not totally accurate information.
Do they require Minimum investments?
Some of the Forex Brokers have a minimum amount to deposit before start trading. Others (a few) charge small withdraws.
I do not mean to be exhaustive, because there are lots of forex brokers, but I think you may have a good place to start trading. I covered the most award-winning brokers in the last years and tried to make them comparable.
The best way to trade forex
There are two ways to invest with our AI in forex:
1. Automated with AI-Trading. Check out the 3 steps to trade automated with our AI.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Automated AI trading benefits ✅
- Setup in 3 minutes.
- Totally hands-off, from anywhere.
- Invest from just $100.
- APY of 40% over the past 13 years*.
- Lightning-fast execution & no slippage.
- No commissions, no management fees.
- Portfolio with 40 different automatic strategies.
- No MT4/MT5 or other platforms required.
- Test with a risk-free practice account.
- Trading results directly on our dashboard.
Don’t you have a broker account yet? Our AI is integrated to trade automated with the broker FXCM. Click here to open an account.
2. Manually with AI forex signals.
Wiseinvest also provides AI forex signals that perfectly fit into MT4, MT5, and any trading platform. To trade with our AI forex signals, you must simply copy the data you receive from each real-time signal into any forex brokerage account of your choice.
There are five unique variables for each AI signal, and each must be copied exactly, to match the performance of the signal as close as possible.
Each AI forex signal alert consists of the following five data points:
- Symbol (forex pair)
- Direction (long or short)
- Position size (number of units or lots)
- Take profit (price level to exit with maximum gain)
- Stop loss (price level to exit with maximum loss)
Check out how to trade with our AI forex signals.
- Subscribe to a Wise-Plan.
- Open a Brokerage account. Check this article about the best forex Brokers.
- Set an amount and a position size on our Wiseinvest dashboard.
- Our AI will send you real-time trading alerts by email and Telegram.
- Copy the signals and paste them into your Brokerage account.
All forex signals are sent every time that our AI trading system identifies a new trading opportunity. Our trading strategies are developed on a variety of time frames such as 4 and 8 hours.
Wiseinvest AI forex signals are Market Orders and you do not need the entry price. You can copy each signal while it is available on our dashboard. We do this way to assure that traders will just place signals while they are good to be traded.
You can trade forex with our free forex signals clicking here, or with our Premium subscription that provides you unlimited AI signals and automated AI trading in partner brokers. Whether you are a beginner or a professional forex trader, our AI trading system can help you save time and improve your trading performance. Get started with free AI.
When investing through Wiseinvest automated AI trading or AI forex signals, you do not need to calculate pips and change the leverage in your forex broker account. Learn more about leverage in forex trading by clicking here.
What is the AI performance in forex trading?
The Win Rate of our AI varies according to the period and can reach up to 95%. The performance is based on the efficient frontier measurement metric, which means that our model is profitable whenever the Win Rate is greater than 60%. All strategies of our AI trading system seek stable returns and sufficient results to achieve an average return of 40% per year (APY), without the use of high leverages.
We understand that what matters in forex trading is the final result. Thus, the investor needs to consider that Win Rate is not always the best metric to measure performance in forex, as other signal providers disclose. For instance, out of 100 trades, only 1 trade may be enough loss to make the 99 trades not profitable. In this case, the Win Rate would be 99%, but the final result would be unfeasible (negative).
We focus on the return of 40% of APY and not just on Win Rate.
It is essential to observe that forex brokers may charge spreads, commissions, and overnight fees in your trading account, and these factors can affect the AI performance. You can check our forex trading track record to understand more about AI trading performance by clicking here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI forex signals or an automated AI trading account and deposit just $100 in the broker. It is also possible to test using a risk-free practice account with our AI trading system. However, to do efficient risk management in real accounts, we suggest you start at least $100. Notice that some forex brokers require different initial deposits to trade forex.
What is the trading strategy of our AI?
Our AI strategy is the combination of different AI trading systems, with more than 100 features, that define 40 different strategies which simultaneously consider: Quotes of the 28 forex symbols, Supports & Resistances in different time frames, Trends and Counter-trends, Cross-indicators, Index of each pair, Economic Calendar, Investors Sentiment.
Our AI analyzes those fundamental, technical, and sentiment factors that affect forex trading, and all criteria are evaluated in real-time using different weights. After completing the analysis, the choice of the signal emission strategy is made considering the increased likelihood of short-term profit and the amount available for investment.
Using technical analysis, our algorithm considers not only the patterns of various trends, including support and resistance levels and cross-indicators, but our AI is also able to create its own real-time index for each currency pair, which is used to identify what is the best direction and target.
In relation to fundamental analysis in forex, the AI makes a correlation within the economic calendar to find news data that can affect specific currency pairs.
- There are many Forex Brokers on the Internet, but if you want to trade automated with the Wiseinvest AI forex system, we suggest oanda.com.
- To trade with forex signals, we suggest the use of our AI forex signals solution on broker xtb.com.
- One of the most important pieces of information about the Forex Brokers are the minimum and average spread, commission and other costs involved you pay in each position.
- It is important to check the supportive tools offered, such as leverage and margin.
- Be careful about the ways to bring your money back to your pocket, some brokers can charge small withdraws or restrict the manners to do it.
The Forex Broker is your pathway to earnings. You need to choose wisely this very important service provider.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.