As for choosing a Forex broker, banks have always seen by traders as the standard of reliability. Licenses and regulation do their job. Why traders trust banks more than conventional brokers? What banks are the leaders and outsiders in the rating of Forex brokers introduced by ?
Why do big-scale traders prefer banks?
According to Eugene Olkhovsky, ’s leading expert in financial markets form Canada, the Forex industry is not the place for ham-and-eggers. If you are not one of the leaders, you belong to outsiders. According to the expert, there are 5 major reasons why big-scale professional traders prefer banks to conventional brokers:
1. Frequent cases of non-payments of profit. Some conventional brokers and dealing centers refuse to withdraw the funds requested by their successful clients. You can hardly see this when trading with banks.
2. When becoming a client of a trusted bank, which is licensed by a major regulator, your trading capital is secure against scam.
3. Unlike most conventional dealing centers registered in offshore zones, banks are registered in the country they conduct their business in.
4. Banks have a wide range of liquidity suppliers.
5. Brand is another factor to consider. Banks vale their image and strive to be as client-oriented as possible to ensure long-term cooperation with their clients.
’s rating: Frontrunners and outsiders
’s rating of banks involved in the Forex trading industry clearly shows who is among the leaders and outsiders in the niche. The rating is unbiased. It is based on a number of independent factors (history, licenses, quality of services, spreads, number of offices etc). Another factor is that traders can vote for or against a certain broker (over 34 000 traders have already participated in the voting).
As we can see, the trinity of leaders is formed by 2 Swiss banks - MIG BANK and Dukascopy Bank SA – as well as an famous Asian international holding - HY Capital Markets – with offices in London and Dubai.
Pay attention to the gap between those 3 leaders and the rest of the banks participating in the rating.
The next group consists of mediocre brokers. Being a mediocre broker isn’t much better than being an outsider. Obviously, such brokers shouldn’t be avoided but they don’t have enough potential to become some of the best in the industry. These are CIM Bank, ACM, CitiFX Pro, UFXBank, Integral and Alpha Bank.
According to , they repeat the same mistakes over and over again. They don’t pay enough attention to their image, they don’t develop and introduce innovative solutions and products.
Saxo Bank stands out in a crowd. Despite its popularity in the USA and Western Europe as well as the massive PR campaign started in the Russian-speaking community, the real quality of dealing offered by this bank doesn’t correspond to its image created in mass media. As a result, there is a lot of negative feedback coming from Saxo Bank’s clients. Saxo Banks is not an outsider. However, it cannot definitely be one of the leading brokers in the industry.
And finally, the outsiders occupy the last standings in the rating. We cannot say they are well-known or reliable brokers.
Can the outsiders and the “mediocre” brokers improve their standings in the rating? Yes, they can. But it will require time and effort. It is about more efficient PR campaigns, higher-quality dealing, more positive feedback from clients, more innovative decisions.
Last year, the best banks in the Forex industry received awards. However, this year is considering the possibility of “awarding” the industry’s worst representatives in order to force them into improving their image.
Market Leader and would appreciate if you could participate in a survey. Please, visit the Academy’s forum for traders and investors and answer the following question:
Do you trust banks more than conventional brokers?
