Best Forex Brokers in Colombia 2020

The forex market in Colombia was one of the best-received markets and as such is one of the fastest-growing segments in the financial sector. This means that there are hundreds of brokers to choose from. For a beginner, this can be quite intimidating, especially with so many brokers using lots of offers and promotions to attract customers. This article explores the very best brokers for Colombian traders.

The brokers below represent the best forex brokers for trading in Colombia.

XM

XM was founded in 2009 and is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC) and the International Financial Services Commission of Belize (IFSC). The broker offers more than 1,000+ tradable assets across Forex, Stocks, Commodities, Indices, Metals and Energies on the globally-recognised trading platforms MetaTrader 4 and MetaTrader 5 for PC, Mac, Web, iOS and Android systems.

XM offers features that are suitable for both the beginner and advanced trader with a very impressive research and education section, feature-rich with up to date articles, webinars, videos, platform tutorials and access to daily interactive live trading rooms. The broker also offers 10 different trading accounts globally, all with different features and benefits.

*Leverage depends on the financial instrument traded and on the client’s country of residence.

FP Markets

FP Markets was founded in 2005 and is regulated by the Australian Securities and Investments Commission (ASIC), offering segregation of client funds and top tier liquidity. FP Markets is a group of companies that includes First Prudential Markets Ltd which is authorised and regulated by the Cyprus Securities and Exchange Commission.

FP Markets also offers a range of education and market analysis resources through the Traders Hub which includes technical analysis and fundamental analysis articles and videos, as well as, trading ebooks and video tutorials. Users can access live support via telephone, email and live chat 24 hours a day, 5 days a week.

Plus500

Plus500 is a leading CFD trading platform with support for stocks, indices, cryptocurrencies, and Forex. This commission-free brokerage charges very low spread-rates and offers fast trades on a great platform. Plus500 supports complex trades, includes negative balance protection, and makes trading an educational and hopefully profitable venture.

You can start with a free demo account to test the platform and any trading strategy. Real money accounts offer leverage of up to 300:1. This broker is based in Israel and regulated by the Financial Conduct Authority (FCA) in the UK.

eToro

eToro is an online trading platform that was founded in 2007 by the Assia siblings and their friend David Ring in Tel Aviv, Israel. Formerly known as RetailFX, eToro is the pioneering online broker for social trading. Their Openbook social trading platform in fact changed the nature of the way beginner online traders can trade the financial markets. It made the markets accessible to everyone, no matter what their level of experience by creating a user-friendly environment and allowing traders to copy the trades of other traders’ strategies automatically.

General Regulation & Colombian Regulation

The most important thing to check is if the broker is regulated. Normally, it is not enough just to have any regulator, but to be regulated by the main and most trusted regulator in the country or region. In this case, brokers in Colombia need to have a license from the Ministry of Finance under the Financial Regulation and Financial Studies Unit (URF) which was established in 2013. Overall, it is important to find out if the broker is compliant with prevailing industry standards so that you are not disadvantaged when it comes to exploiting any fresh opportunities.

Trading Platform & Software

The trading platform is basically your workspace. Therefore it is of uttermost importance to make sure that you are satisfied with the platform and software that the broker is offering. The financial transaction aspect is also very important. This includes finding out if the broker has proper deposit and withdrawal systems, any fees and restrictions on transactions and also their spreads/commissions. The key things to look out for include how user-friendly the platform is, how many assets/instruments the broker offers and how quickly the broker executes your trade (both opening and closing). Look out for re-quotes and slippage of prices. The former is unacceptable as you may be forced to attempt executing a trade number of times before it is successful, while the latter should only be expected in times of extremely high volatility in the market.

 Commissions & Spreads

Lots of brokers often pass unnecessary costs to their employees. Be sure to compare the ask and bid prices of the listed assets to make sure they are not such a big difference between them. Some brokers will disadvantage investors by refusing to fill their orders in order to profit from their losses.

Account Types

Does the broker offer a demo account? This is very important not only to beginners who need to learn and experience the trading environment before using real money but also to experienced traders who want to simulate and test their trading strategies before applying them in real accounts. Some brokers offer extra benefits for customers who deposit a certain amount of money. If this suits your investment plan, then you can request for these options. If you are Muslim, you have the option of going with a broker that offers Islamic accounts.

Customer Service

Find out if the broker has proper customer support channels and if their response rate is acceptable as per your standards. How responsive is the customer service team in case you need to speak to them? Do they offer live chatting, how soon do they respond to emails, during what hours will they pick up your call and do they offer support in your preferred language? Some brokers even offer a dedicated line that customers can call in case of financial issue. You can be sure there is nothing more frustrating than being unable to get assistance especially when your financial investment is at stake.

Additional Services

Some brokers offer additional services such as periodic analysis, trading signals, investor education in the form of webinars, live trading rooms and even dedicated account managers who will be on hand to assist you in case you need any help.

Conclusion

There isn’t a single yardstick that can be used to recommend brokers to investors because every investor has their own unique individual goals to achieve. However, the above factors are the most important to consider while choosing the best broker for you. Additionally, as we had mentioned, it is good practice to skim through forex forums to see if any particular broker has attracted more complaints than others. Of course, you can’t please everyone and so there have to be a few disgruntled customers in every business. However, if you find a pattern, seek further clarification from the regulator or avoid the broker altogether.

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