Brokers by Type
New Brokers: Who Is the Most Reliable in the Forex Market?
The age of a broker is a key indicator of its reliability. Generally, the longer the experience, the lower the risk of fraud. However, there can be exceptions. There are forex scammers who have managed to stay afloat for decades by employing their own tricks. They offer traders high leverage and manipulate quotes, leading traders to deplete their accounts themselves.
Experienced brokers come with both advantages and disadvantages. Many of them have a large client base, which can slow down customer support response times. Customer support may even ignore traders with modest deposits, prioritizing those with substantial capital.
Experienced brokers can also be associated with outdated trading platforms and technology. They tend to lag behind the innovations of newer brokers.
For traders with significant capital, experienced brokers with a good reputation can be a suitable choice. However, newcomers taking their first steps might face difficulties. Established brokers often charge higher commissions as a fee for their reliability, which can make it harder for smaller traders to turn a profit.
Advantages of New Brokers
The category of new brokers includes those with 2-3 years of experience. They may not have a large client base yet, but they are generally more flexible compared to their more seasoned counterparts. Newcomers often go out of their way to accommodate traders.
The major advantage of new forex brokers is their eagerness to expand their client base. To achieve this, they offer favorable service conditions compared to more established brokers. This includes lower commissions, spreads, special promotions, and affiliate programs.
Most new brokers offer modern trading terminals that are well-suited for algorithmic trading strategies. These platforms are more adaptive and can accommodate new trading approaches and technologies.
While many experienced brokers still offer trading on the outdated MT4 platform, new entrants to the market often provide access to MT5. Despite being over a decade old, MT5 remains versatile and adaptive, allowing traders to participate in various markets.
Communication and Accessibility
New brokers often offer a wide range of communication options, including phone, email, chat, messengers, and social media platforms.
In contrast to experienced brokers, who may demand larger deposits, new forex brokers in 2022 are more lenient with deposit sizes. They are willing to accommodate traders who do not have thousands of dollars to invest.
These brokers are sometimes referred to as dealing desk brokers. They do not execute trades on the open market. While some view dealing desk execution negatively, it can still be reliable if the broker is licensed and well-regulated.
Our rating of new brokers is designed to help identify legitimate candidates and avoid scams. The list is continually updated and adjusted to provide a smoother trading experience.
Selecting a New Broker
There’s always a risk that a newcomer might falter. For instance, they might struggle with strong competition, fail to maintain quality customer support, worsen trading conditions, or engage in fraudulent activities. This is why it’s essential to start with a minimum deposit. This approach significantly reduces the associated risks.
Does the new broker offer a demo account? Make sure to test it thoroughly. If everything checks out, you can open a real account. Experiment with different strategies using a minimal deposit. This will help you understand the best liquidity and acceptable spreads in various market conditions.
Keep in mind that new brokers might face issues with market depth during significant price movements, causing spreads to widen. This could trigger stop-loss orders. Thus, it’s crucial to test the broker’s performance during large market movements.