Best Forex Brokers in Chile 2018
Are you a forex trader that engaged with a Chilean broker? Then you need to know which brokers to steer clear from and which to actively work with. We have compiled a list to help you decide. Our recommendations are objectively based on research and user feedback.
How to Choose a Forex Broker in Chile
General Regulation & Chilean Regulation
Forex brokers in Chile are regulated by Superintendencia de Valores y Seguros and the Chilean Central Bank. However, a comprehensive legal framework has not been set specifically for the forex realm so most of the regulations are applicable to brokers who offer only securities/stocks for trade.
Trading Platform & Software
While selecting the best broker for your trading needs, you need to already know what type of trading you will be doing. There are various questions that you need to ask yourself before making a final decision. For example, how is the platform designed and is it user-friendly? Due to the fact that the platform will basically be your workspace, you need to make sure that you are comfortable with it. Does it look good? Are you able to access all the assets you require? Does it have all the basic capabilities of a trading platform? What do additional functionalities the broker offer? Also, deciding if you will be a day trader or a swing trader is very important. In some cases, roll over fees might be quite significant especially if you plan on opening very big positions for a long time. Execution of orders is another very important thing to consider. Good brokers do not allow lag or give re-quotes to investors while they are trying to place trades. Slippage is sometimes unavoidable due to unfavorable market conditions but this should not be a common occurrence.
You also need to make sure the broker you choose has an appropriate trading platform for the device you intend on using. Download/access the trading platform and spend a couple of hours (or as long as it takes) learning how to use it so that you can find out if it is easy to use for you.
Commissions & Spreads
Commissions and spreads are the main ways that brokers make a good percentage of their money. For each trade you place, the broker earns some money. Collectively, the number of trades placed per day translates to a considerable profit. These fees should therefore not be too high to hinder the trader from making any profits, nor should they be too low such that the broker’s business is not profitable. A good practice to confirm if the spreads are within an acceptable value is to compare the asset’s prices listed by the broker, to those issued by financial market quote providers such as Reuters.
A good broker will offer their customers demo accounts and real accounts. The demo account may appear useless but this is, in fact, the classroom where most traders begin their trading careers. The simulation allows novice traders to learn how the market operates without having to face the risk of losing actual cash in the process. The demo account can also be used by experienced traders who are trying to come up with suitable trading strategies.
If you are a Spanish speaker and you prefer to use this language in official communication, it is imperative that you find out if the broker offers support in Spanish. Most brokers that target customers from all around the world will offer support in at least five languages.
Some brokers offer seminars for those clients who are able to attend physically and webinars for those who are far and perhaps can only log in online. This is a great advantage especially to new traders who are struggling to find their way in the trading world.
Although we may not recommend any particular broker, we will urge you to use the aforementioned checklist in order to arrive at the best broker. Of course, the most important item to consider is if the broker is operating legally in Chile and if it is regulated by the overall supervisory body. Failure to confirm this early enough may lead to loss of capital to fraudulent brokerage firms. The rest of the conditions mentioned above should follow in order to ensure that you have a smooth trading experience.
- New Zealand
- South Africa
- South Korea
- Hong Kong
- United Arab Emirates
- Russian Federation
List of Brokers
|BROKER||USER RATING||REGULATED BY||HEADQUARTERS||MIN. DEPOSIT||OFFICIAL SITE|
|ASIC, CySEC, FCA||Israel||$100||Open Account|
|ASIC, BVI, FSA(JP), FSB, MiFID||Ireland||$100||Open Account|
|ASIC, CySEC, FCA||Cyprus||$200||Open Account|
|CySEC, FSB||Cyprus||$100||Open Account|
|BaFin, FCA||United Kingdom||$300||Open Account|