Institutional brokers are the elite of the Forex industry. They provide a wide range of services, they are licensed by major regulators and provide high liquidity. These are the very brokers that big-scale investors as well as investment and hedge funds prefer to work with.
Who are the leaders and outsiders of ’s rating of institutional brokers?
Institutional Brokers
Institutional brokers do stand out in the crowd of other brokers. They are better in a number of aspects:
· Institutional brokers execute orders much faster
· Their spreads and commissions are lower
· They are more reliable (major licenses, image, brand etc.)
· Clients can be consulted by the leading experts of a given company
For decades, they cooperate with big-scale companies, thus improving their image, which they value a lot. The only drawback for individual investors is the high deposit requirement - $20.000-$50.000.
Nevertheless, most US and European traders prefer to work only with institutional traders.
In order to find out who are the leaders and outsiders, decided to conduct a survey by means of open internet voting.
Preliminary Results
The chart shows that the leader is HY Capital Markets, which is a part of Henyep Group (2 major banks in Dubai and London, an insurance and broking company). It has been providing broking services for all type of capital markets for over 30 years.
Alpari Limited is the runner-up. This is the only Russian broking company that can compete with major Western brands (SaxoBank, FOREX.com, FXCM, Dukascopy etc.) in this prestigious niche of the Forex industry.
FOREX.com (GAIN Capital - FOREX.com UK Limited) is number 3. The company has been in the industry since 1999. It has offices in the USA, Japan, the UK and Australia).
“Middle Class”
Now it is time to have a look at the brokers who occupy mediocre standings in the rating.
According to Eugene Olkhovsky, ’s leading expert in capital markets from Canada, this group of institutionary brokers is strong enough to deserve traders’ attention. However, they lack something and cannot be treated as some of the leaders in the industry.
FXCM (Forex Capital Markets Ltd.)
This company is number 4 in the rating. It has been in the industry since 2001. It has offices around the globe and is regulated by major watchdogs.
Dukascopy
This is a Swiss broker founded in 1998. Since 2004, the company provides services to financial communities. It has offices around the world as well.
Saxo Bank has been in the industry since 1992. This broking company is going to up and down in ’s ratings. Saxo Bank has offices in all the major financial centers around the globe.
The list of “middle class” institutional brokers also includes the following name:
· GFT (number 7);
· CitiFX Pro (8);
· FxPro Group Lt (9);
· MB Trading Futures (10).
Outsiders
As you can see, the list of outsiders is rather long. In this case, being an outsider is not equal to providing poor-quality services. More often than not, traders and investors are unfamiliar with these institutional brokers because they are either relatively young or do not pay enough attention to the promotion of their brands.
The list includes:
· FXDD
· Advanced Currency Markets (ACM)
· FXall
· CMS Forex
· ATC Brokers
· Interactive Brokers Group
· Varengold Bank
· Hotspot FX
· ECN BROKER
· IG Markets Ltd
Expert Opinion
As we can see, to be the leader, it is not sufficient to be a well-known brand. To stay on top, brokers should pay enough attention to their image, advertising campaigns, quality of services and a number of other aspects.
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 institutional brokers more than other types of brokers?
