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  • by Sophie Robinson
  • Feb 03, 2022
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Which Broker is the best for Forex

trading? [Top 3 Forex Brokers in Romania]

 

Contents

  • How to Find the Best Forex Brokers? (Few tips to find the best broker for you)
  • Forex Trading Platform (MetaTrader 4, MetaTrader 5) 
  • Is it important for brokers to be regulated?
  • Top 3 Forex Brokers in Romania (main aspects that you should know of it)
  • Do Forex brokers lose money?
  • 5 Reasons Why 80% of Traders Lose Money

 

How to Find the Best Forex Brokers?

 

Nowadays there are too many brokers in the marketplace. You should attentively investigate what opportunities they can offer you because choosing the wrong broker can cost you a lot.

How to Find the Best Forex Brokers?

 

In this part, we will give you some crucial aspects that you should point out while choosing your broker.

●     Reliability

This and reputation is one of the first things you should check. Do not limit your research to one website. Check as many pages as you can. Keep in mind that a complaint that someone lost money it’s not enough, because 90% of traders lose money at one point.

But complaints about the inability to withdraw money are a good reason to avoid the organization.

●     Low Spreads

So what is a spread? If we take the Bid and Ask prices of a currency pair or another asset and calculate the difference between them, we get the spread. If the spread offered by a Forex broker is very high, you should beware. Many brokers simply earn at your expense by offering you high spreads. It is better to work with a broker with low spreads.

●     Licence

You should explore the documents that justify the broker´s reliability. The first thing you should check is the availability of the license.

●     Fast execution

If you want to trade in a highly volatile market like Forex, your chosen broker must be able to respond quickly to your orders and execute trades as efficiently and promptly as possible. Delays in this kind of trading can cause a lot of problems.

●     Demo account

If you are a beginner it’s a good idea to try first at demo trading and partially upgrade to a real account. This is the best way to learn about the Forex market, thus you will form your trading strategy.

Free training is a nice bonus if you are a beginner.

We also advise you to talk to your broker’s support team before you open an account. If they provide a quick answer it’s a positive factor, this way you will know that your possible problems will be solved fastly.

 

Forex Trading Platforms

A trading platform is an indispensable intermediary between the trader and the relevant financial market, so finding a suitable trading platform is a high priority.

One of the most popular trading platforms is MetaTrader, but some traders are a little bit confused as to which one to choose because there are two versions, 4 and 5.

 

Many people mistakenly believe that MetaTrader5 is an updated version of the previous platform. But there are important differences between them. MT4 is designed for foreign exchange trading, MT5 is a universal product that works with both, currencies and the stock market.

The trading terminals have mobile counterparts with functionality almost identical to the original full PC package. The ability to trade without being tied to a specific location is very convenient. Such applications have been developed for the two most popular operating systems – Android and IOS.

It is difficult to decide right now whether to choose MetaTrader 4 or 5. It is best governed by your personal preferences, although more and more brokers are opting for MT5, leaving no alternative.

 

Is it important for brokers to be regulated?

When dealing with a forex broker it is very important to consider the Forex regulation. You should ensure that there is sufficient security and comfort for both the forex broker and the traders.

One of the most important criteria is how the forex broker is regulated and in which country. Not all countries regulate forex trading in the same way. There are different particularities for registration.

Is it important for forex brokers to be regulated?

 

Forex brokers registered in jurisdictions with no real regulator can cause traders to lose money as they are essentially unaccountable to anyone. In addition to this, many unregulated forex brokers fail to take basic measures to protect client funds.

Regulators usually require a broker to keep client funds separate from company funds to prevent company losses from affecting their clients´ funds or paying company operating costs.

In addition, many regulators require a compensation fund in case a broker goes bankrupt.

Traders are strongly advised to only work with companies that are regulated by reputable jurisdictions.

The main regulator to European Union and European Economic Area countries is MiFID.

When forex brokers claim to be regulated by the EU, it means that they are regulated in a country that has agreed with MiFID.

Romanian Forex brokers are regulated by Romanian National Securities Commission.

 

NOTE: Even with the most reliable Forex brokers you can lose money if you don’t use a strategy and do not follow the risk management. At the same time, unlicensed organizations can also be quite reliable - Alpari is an example.

 

Top 3 Forex Brokers in Romania (Main features you should know)

The “top lists” usually include brokers with the following features:

  • A great experience in the market
  • High profitability
  • Safety for traders
  • User-friendly interface, quality platforms to execute the transactions, etc.
  • Low entry minimum and no hidden fees 
  • License from the financial regulators

 

Here are the Top 3 Best Forex Brokers and Traders:

 

1.    FXCC

a.    Trade on MetaTrader4

b.    Available on Windows, Mac OS, IOS, or Android

c.     Min. spread 0.0pips

d.    No minimum deposit

 

2.    AVATRADE

a.    Trade on MetaTrader. Avatrade also offers its platforms AvaTrade WebTrader and AvaTradeGO.

b.    Available on Windows, Mac OS, IOS, or Android

c.     Min. Spread 0.6pips

d.    Min. deposit 100$

 

3.    XM Group

a.    Trade on MetaTrade4, MetaTrade5, XM Web Trader

b.    Available on Windows, Mac OS, IOS, or Android

c.     Min. Spread 1pips

d.    Min. deposit 5$

 

You can find more information about other brokers on "Compare your Forex Broker in Romania".

 

Do Forex Brokers lose money?

This is one of the most popular questions among beginners. This depends on what type of broker you are dealing with.

The majority of brokers earn money on commissions and fees. This way brokers always make money, without depending if the trade was profitable or not because the broker is not the counterparty. The broker is just facilitating the trade and is not affected by your profit or loss.

But some brokers are not limited to commissions, they start to trade against their clients, and here is where they can lose money. Instead of charging the broker's fee, they act as a counterparty.

 

5 Reasons Why Traders Lose Money

According to various sources, up to 80% of traders have lost their deposit or part of it at least once during forex trading.

We will explain to you why this happens.

 

Reason nº1: Lack of knowledge

Why traders lose money? Lack of knowledge

 

Gaps in education in trading are a common cause of failure. Knowledge is a key factor, even if you are interested in copying other traders.

There are a lot of free and paid online courses and literature for beginning traders. You must always continue studying even though you already have enough knowledge. New algorithms, indicators, and analyses of results of popular strategies appear on the Forex market all the time.

 

Reason nº2: The Lack of understanding of the charts

It is important to learn at least basic chart indicators. Charts are necessary in order to build your trading plan based on trends and patterns.

Why traders lose money? Lack of understanding the charts

 

You can learn technical analysis by studying the recommendations of professionals. By following the analysis of professionals, it is easier to learn to use the same indicators to form your own plan and strategy.

 

Reason nº3: Ignoring the news

Trading blindly often becomes a reason for losing.

Keeping track of everything at once is not easy. The people who do the daily fundamental analysis most often are those who trade all day, spending 8-12 hours, of which at least a couple of hours are spent studying economic news.

For success, you must combine technical and fundamental analysis.

 

Reason nº4: The inability to manage the risks

The forex market is very volatile and beginners often do not know how to manage the risks. Even the most insignificant, as it may seem, the news may abruptly change the price of currency pairs.

Why traders lose money? The inability to manage the risks

 

Reason nº5: Lack of Experience

It's a banality we started with and will end with. But you can't do without it - only experience will turn your knowledge into intuitive and automatic decisions when you're confident in every move.

Why traders lose money? Lack of Experience

The most important rule is not to invest big sums until you are confident in your own trading system.

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