Comparing Forex Broker Accounts
Serious forex traders focus on a number of factors when comparing forex brokers including:
AxiTrader offer two accounts with the MT4 Pro Account being preferred for non-beginner trading as there are significant lower spreads which offsets the commissions charged. The section below compared the AxiTrader Pro Account to other professional forex broker accounts.
1) Who Offers The Best Commissions?
There are two types of forex brokers. The first are market makers which are similar to a bookmaker and will bet against any position you open. The second is called an ‘ECN forex broker’ which is when the forex broker allows you to place trades with other liquidity providers (such as bank and individuals). It’s this second type of broker which will often offer no margin on spreads but instead charge a flat commission on trades which we compare below.
An AxiTrader Pro account charges on a round trip so that is effectively this means two trades (for example from AUD to USD and then back to AUD). The exact commission is based on what the account currency base is and number of standard contracts. When a fraction of a contract occurs, a pro-rate basis is charged.
In simplistic terms, a standard 100k contact will have $3.50AUD per trade. Now compare this to:
– $3.50AUD per 100k traded for a Pepperstone Razor Account
– $3.50AUD per 100k traded for a IC Markets True ECN Account
– $3.50AUD per 100k traded for a GO Markets Pro Account
What the above highlights is that commissions are the same between most Australian regulated ECN forex broker accounts. Therefore, the factors below should be viewed more closely for comparison.
2) Which Broker Has The Best Leverage?
Leverage is critical when forex trading as currency movements are small relative to other financial products. Leverage amplifies these changes to make movements worthwhile when trading but significantly increases the risk. AxiTrader offers a leverage of 400:1. This means you can trade up to 400 time your deposit.
What the comparison above highlights is that Pepperstone and IC Markets are the leading ECN brokers for those looking to maximise their leverage at 500:1. GO Markets on the other hand has the poorest leverage of the ECN forex brokers compared at 300:1.
It should be noted that while AxiTrader doesn’t have the highest leverage, 400:1 is still globally a very high level and will suit most professional forex trading strategies.
3) What Is The Best Forex Trading Platform Offered?
Of the four ECN forex brokers compared, the following forex trading platform is offered:
– AxiTrader Pro Account = MetaTrader 4
– Pepperstone Razor Account = MetaTrader 4 or cTrader
– IC Markets True ECN Account = MetaTrader 4 or cTrader
– GO Markets Pro Account = MetaTrader
Like when it comes to commissions, trading platforms are relatively similar for ECN forex brokers. The reason for this is MetaTrader 4 is widely considered the best forex trading platform based on popularity, ease of use and execution speeds. The second best forex trading platform based on popularity is cTrader which is also offered by Pepperstone and IC Markets.
Effectively, if your like a majority of brokers and prefer MetaTrader 4 (MT4) which is also offered by CMC Markets and IG Markets, then all these ECN brokers are the same when it comes to platforms offered. It’s only if you prefer cTrader or another platform that you have used before that this should be a major factor.
4) Who Offers The Best Execution Speeds
Speed is a critical element when it comes to forex to ensure you get the price quoted. Slow execution speeds even with the best forex trading platform can cause slippage, leading losses to be greater than quoted, even when a ‘stop loss’ order is placed. The good news is that most ECN brokers generally have fast execution speeds with traders dealing directly with liquidity pools.
To maximise execution speeds there are a few features the ECN forex brokers promote:
– AxiTrader Pro Account = Free VPN to deal direct with USA servers
– Pepperstone Razor Account = Optical Fibre Cross-Connection to Equinix NY4 Facility
– IC Markets True ECN Account = Equinix NY4 Facility
– GO Markets Pro Account = GO MAXX VPS Virtual Server
Some brokers such as easyMarkets offered more advanced risk management tools. This can mean the risks associated with slippage don’t apply and therefore fast execution speed is not as important.
5) What Reputation Areas Should I Know?
The broker forex comparison on this page was only from the most well know and popular Australian forex brokers so ‘reputation’ shouldn’t be a factor. All brokers are also regulated by the Australian Securities Investments Commission ASIC. It’s important though to highlight a few features of AxiTrader.
Firstly, AxiTrader (parent company AxiCorp) is regulated in Australia and holds the licence AFSL number 318232. As part of this regulation, they hold all clients funds separately with an Australian financial institution. The company (AxiCorp Financial Services) is Australian owned and based in Sydney.
The company has also won a plethora of awards from best spreads, customer service to brand association with Trustworthiness as shown below.
AxiTrader offers 24 hours support during trading days and payment options ranging from Visa, Skrill, bPay to wire transfer.
AxiTrader Pro Account Conclusion
The AxiTrader Pro account is for serious traders looking for an ECN forex broker. Our comparison found the AxiTrader has low spreads and commissions that are on par with other ECN forex brokers and offers the best forex trading platform – MetaTrader 4. Their execution speeds are strong thank to their free VPN offering and fast ECN MT4 setup. The only negative is there slightly lower leverage of 400:1 compare to some others that offer 500:1. That said this is still a very high leverage level from an international standpoint. Overall, the strengths of AxiTrader combined with their reputation for ‘trustworthiness’ and customer service makes then a forex broker worth considering.
It’s important to seek independent personal financial advice to understand if currency trading is right for you. Understanding the risks of forex trading and any leveraged product is critical as losses may exceed a deposit made.