The Forex industry went through many changes in 2017, most of all in the EU, where the markets in financial instruments directive (MiFID) produced the MiFID II that made transparency mandatory as well as canceling out bonus incentive programs that many Forex brokers would employ to attract traders. Another change was the regulation of leverage where only a 1:50 minimum is allowed. This has led many Forex sites to sit in unregulated areas and has led to these brokers to maintain their unregulated services for customers that are used to “bells and whistles” rather than solid trading reliability and security.
Another addition to complicating the Forex market, even more, is the introduction of cryptocurrencies, especially all the CCEX’s that are popping up, providing cryptocurrency and Forex trading platforms. The attraction of CC’s is such that many speculators are seeking out platforms that provide Forex with CC to enhance their portfolios and take an even bigger gamble when adding CC’s to the trading arena.
It is no secret that the blockchain technology breakthrough revolutionized the internet industry. The original blockchain concept was devised as a transaction security program aimed at replacing centralized currencies. The bitcoin became a hit overnight, but not due to the bitcoins popularity, but rather due to the adoption of the blockchain as a perfect security system for internet transactions. This led to Ethereum, which is an evolved blockchain, which allows for even more application variants to be developed using the original technology concept; it is a public ledger system to anonymize and secure transactions.
There is no doubt that the blockchain and Ethereum based technologies will continue to evolve and proliferate, together with them, cryptocurrencies will multiply in number and force central banks and regulators to adopt them into the working frameworks. It might take another 5 years, but we will see the gradual integration of the CC into regulated systems. The biggest issue with CC is AML, anti-money laundering. Anonymity is great, but not when it is perverted for terrorism, drugs, and human trafficking. This is the biggest issue that governments have with the blockchain.
I think that the top forex brokers in 2018 will come from the more solid and conservative firms. Brokers that provide solid service have a good financial backbone, offer full transparency, and enable trading without gimmicks and “smart” fees. I also expect that the top forex brokers will be those that provide the most comprehensive trading platforms with a selection of bots that enables different algorithmic trading.
I also expect that traders will prefer Forex that provides analytically and intelligence in the form of social services, giving traders greater insights into market trends. There are also multi-asset clouds that enable traders to access to different markets from one point; this is an added advantage for traders seeking a wider trading mix.
I attach a link that gives a list of the top forex brokers 2018. This is a comprehensive list, and any trader will find the right match that suits their specific needs in this list They are also secure and proven sites.
A word on Binary Options
The binary options market is nearly dead; this is due to the unethical nature of how they were marketed and due to many traders basically tipping the scales of trading to the broker’s advantage and not keeping the trade free of bias. Binary options still remain, but less attractive as people realize that the hi-lo game is not really productive and is more like a casino then currency speculation.
Forex Expectations in 2018
The continuous regulation and transparency rules as set by MiFID II will lead to a standardized monitoring system that will set a new common language for all the Forex market. This standardization will lead to consolidation of services, and the so-called punter sites will slowly disappear. Regulation is sometimes important, and “decentralization” and “democratization” are both words being used to negate the importance of standardization and regulation. A regulated market means that there is less chance of misuse by unscrupulous brokers. I will give you an example, imagine that taxis had no regulations, most people would pick the cheapest taxi to ride in. However, the cheaper you go, the more unsafe the vehicle as well as the driver. When there is regulation, there is transparency, safety and price maintenance.
Bottom line: I see 2018 as another year where:
- Cryptocurrency will greatly impact Forex.
- Forex regulation will lead to greater transparency
- Shady Forex characters will be pushed to the fringes
- Larger more secure and safe brokerage houses will consolidate trading markets
- Bots will evolve as AI is introduced to manage empathic patterns in market movements
- The top forex brokers in 2018 will be those that provide great customer service on comprehensive trading platforms.
Top Forex Brokers List for 2018
A full description of each one can be found at fxdailyreport.com
- HYCM: Min Deposit: $100
Spread: From 1,5 Pips
Regulation: FCA UK (#186171), CySEC (#259/14)
Bonus: 25% Welcome Bonus up to $5,000
- FBS: Min Deposit: $1
Spread: From 0 Pips
Regulation: CySEC, IFSC
Bonus: $123 No-Deposit Bonus, 100% Deposit Bonus, Lucky T-shirt, iPhone 6s Plus
- DXM: Min Deposit: $5
Spread: From 1 Pips
Regulation: ASIC, CySEC, FCA (UK), BaFin, CNMV
Bonus: 15% Welcome Bonus, Loyalty Program Bonus
- Pepperstone: Min Deposit: $200
Spread: Starting 0 Pips
Regulation: ASIC Australia
- FXOPen: Min Deposit: $300
Spread: floating, from 0 pips
Regulation: FCA UK reference number 579202
- OctaFX: Min Deposit: $5
Spread: From 0.2 Pips
Regulation: FSA (Saint Vincent and the Grenadines), FCA UK (#679306)
Bonus: 50% Deposit Bonus
- Plus500: Min Deposit: €100
Spread: The Spread can be as low as 0.01%” (0.01% = spread for EUR/USD)
Regulation: ASIC, CySEC, FCA (UK)
- Ava Trade: Min Deposit: $100
Spread: Starting From 0.9 pips
Regulation: MIFID, FSB & ASIC
- ETX: Min Deposit: $100
Spread: From 0.7 pips
Regulation: FCA UK reference number 124721
- Instaforex: Min Deposit: $1
Spread: Fixed Spread From 3 Pips
Leverage: Up to 1:1000
Regulation: CBR, CySEC and FFMS
Bonus: 30% Forex Deposit bonus
- EToro: Min Deposit: $200
Spread: From 3 Pips
Regulation: NFA, CySec