The Forex market or currency market is massive with a daily turnover of $6.6 trillion according to the survey conducted by the Bank for International Settlements in 2019. Where does such a high Forex trading volume come from? It’s from different market players which consist of retail traders, banks, fund and wealth managers, and large financial institutions. Truly, the people who are playing in the Forex market are diverse.
Given that the FX market is gigantic, (in fact, it is the largest and most liquid financial markets in the world) a lot of Forex companies have already penetrated it, and many are still looking into trying their luck in the business. With a $6.6 trillion daily turnover, (yes, not just billion, but trillion! And it’s a daily turnover!) it’s only safe to think that opening a Forex brokerage could be logical and profitable.
Now you would probably ask, what is the main source of revenue of Forex companies? It’s through what we refer to as spread. In simplest terms, spread is the difference between the bid price and the ask price. For instance, in the EUR/USD currency pair with a bid and ask price of 1.1405/1.1407, the spread here is 2 pips. Spread is like the bread and butter of Forex brokerages.
Now for those looking to start trading currencies, especially with a tight budget, of course it’s a common practice to go for a Forex company that offers the lowest or tightest spreads possible. But how would you know which one has the lowest? It could be a daunting task to check the spreads of all the brokers available in the market today, so how can you make the process a little easier?
Well, luckily, you have come to the right spot. In this blog, we’re going to give you some tips on how and where you can compare spreads of Forex brokers.
Forex Broker Review Site Topbrokers.com
Most Forex traders find spreads to be one of the most important factors in the choice of a Forex broker to trade with. The lower the spreads, the better as this would mean a discount for every transaction they make. Now if you’re a newbie to the Forex industry, it would be a difficult task (and a huge waste of time!) to do a search on the internet about the spreads each FX broker offers. Luckily for you, we’re about to tell you a way that will make your selection process easier. And that’s by visiting top rated Forex broker review website topbrokers.com.
Topbrokers is your friendly online portal for Forex broker reviews. Basically, the website provides very detailed reviews of some of the most well-known brokers around the trading circle. Their review for each broker covers the broker’s history, trading conditions, execution time, payment options, trading platforms, and even its current Forex bonuses, promotions and contests! Topbrokers also gives you access to free well-researched news and analysis related to Forex, provided directly by brokers.
How to Compare Spreads Using Topbrokers?
Topbrokers has a feature in which you can compare two or more Forex brokers simultaneously. You can pick the brokers you want to compare and filter the details you want to see using its comparative and ranking table. The comparative table is such a valuable tool for having a handle of a Forex broker ‘s advantages over other brokers. That said, the table lets you see which brokers deliver the smallest and tightest spreads. Remember always that comparing brokers first before making a decision will be in your best interest , particularly if you’re a beginner.
Topbrokers has truly made it easier for traders to understand the offerings of Forex brokers available in the market today. It is constantly making updates to keep its users up-to-date on the latest about brokers. The Forex rating site is especially useful for comparing spreads as it will give you an idea how much you would be spending for every trade you make.
Topbrokers is not the only Forex broker review website available online. There’s actually a bunch of sites you can choose from, but Topbrokers pretty much has everything you will need.