ALPARI – Has been in the forex business longer than many of the other choices out there. They have built a solid reputation and have added a US division. They offer CFD trading and have provided historical 1 minute forex data since 2001 to their customers.
Please feel free to comment below about your personal experiences with any of the brokers we have reviewed.
Company Headquarters: Russia and UK
Metatrader Trading Platform: YES
ECN Broker: NO
Minimum Lot Size: $10,000
Leverage Offered: 1:100
Spreads on the Majors: 2-4
Regulated By: FSA
(Glossary of the following terms are at the bottom of the review)
Company Headquarters – This is the location that the Forex Broker has setup and registered their business. This can have implications on deposit currencies allowed, how funds are held and withdrawn, as well as regulating agencies that can monitor their business.
Metatrader Trading Platform – This is the platform that is necessary to participate in automated trading with Expert Advisors. If you plan to trade and EA you must be sure you select a broker that supports it.
ECN Broker – There has been a large increase recently in the offering of ECN Forex trading. This is the ability to trade outside a single brokers price feed. There are many advantages and disadvantages to trading with an ECN broker. You can read more about ECN Brokers in a previous article here.
Minimum Lot Size – In Forex trading leverage is always used. Therefore, position sizing is generally larger than a customers whole account balance. The term Lot is used to describe the size of the trade. A Standard Lot generally refers to $100,000 and is given a number value of 1. A Mini Lot is $10,000 in size and is given a number value of .10 A Micro Lot is $1,000 in size and is given a number value of .01 A Nano Lott is $100 in size and is generally only offered by brokers that offer specific mini accounts. Keep in mind some brokers offer mini trading accounts and the number value for a mini lot becomes 1 and a micro .10
Leverage Offered - Since Forex currency prices change at just fractions of a percentage each day it would not be very exciting to trade without leverage. Brokers offer up to 500 times leverage to allow traders to make larger profits from the small currency price moves.
Spreads on the Majors - The Spread refers to the difference between the Bid and Ask price on the Major currency pairs. The Major pairs are EUR/USD, USD/JPY, USD/CHF. And GBP/USD.
Regulated By – the Securities and Exchange Commission tightly regulates The US Stock market. In the Forex broker there are many different regulating bodies of different strengths and weaknesses. Many brokers are regulated by different governing bodies and some are not regulated at all.