It isn’t easy to find the broker that suits you in all aspects, especially when choosing your first broker. You have to analyze dozens of resources and compare several parameters: from legal reliability, commission rates, execution speed to customer reviews. Today we focus on commission rates. So, here’s a list of 5 brokers for comfortable trading. For greater objectivity, we didn’t pick up the old famous companies, yet we analyzed relatively new market players that emerged less than five years ago. Very often young companies provide better conditions for new customers than famous old brokers with a strong brand name. So, here are young companies that yet already earned their reputation.
The main issue among many young companies is the limited list of available trading tools, while broker Bristol House Corporation offers to get everything in one place.
Although there is an opinion that a multi tool will never surpass a specialized tool (like a Swiss knife can never be compared with a chef’s knife or a carpenter’s saw), we’ll try to check if this statement is true for the world of trading.
Five companies are included in our sample: Bristol House Corporation (site: bristolcorp.com), TICKMILL (site: tickmill.com), FinmaxFX (site: finmaxfx.com), ARUM Capital (site: arumcapital.eu) and GERCHIK & CO (site: gerchikc.com). First, we compared the general trading conditions and the number of instruments provided. For convenience, we put all info in a table below.
|CFD American Region||+||–||+||–||+|
As you can see, the companies that recently entered the market already have a rather extensive list of available trading groups, but such a list doesn’t really reflect the number of trading instruments. So, for example, BHC offers 3,399 companies based all around the world and more than 600 ETFs. With such a set of tools, you can create a very diversified portfolio. FinmaxFX has only 303 companies from different countries. GERCHIK also has about 300 stocks, and, in addition, they are ordered by indices, which makes navigation very easy. In terms of navigation, BHC is slightly less user-friendly as a user needs to click multiple times on their website to see all 3000+ shares.
Now let’s get back to the commission rates. All brokers have not only spreads and swaps, but also top up/ withdrawal fee.
In the table below you can see spreads for the main groups of goods, according to data from official sites of the analyzed companies. For clarity, we use the average coefficients and/or compare specific values of the most popular pairs. For example, in the metal group, we compared the XAU/USD; in energy – Brent; in the FX market: GBP/USD, EUR/USD, USD/JPY and USD/CHF, and for the stock market we took two identical securities from the USA and Europe.
|CFD American Region||7.52||–||NS||–||3|
Based on the info provided in the table, there is no leader in all aspects, but it is worth highlighting FinmaxFX. They do not provide the contract specifications on the website; the only information available, “min 3 pts for each instrument”. I was advised to contact the manager for accurate information. In turn, to contact the manager, I would need to register on the website that means to agree to get thousands of calls – no, thank you, we know how this mechanism works. So, despite the massive list of available trading tools, the company seemes a bit of suspicious.
Let’s get back to the table. There is an important aspect we didn’t take into consideration so-called the markup, i.e. extra charge. So, for example, at GERCHIK it ranges from 0.7pts to 10pts. Depending on the instrument, it either is included in the spread or charged separately as a fixed sum for each transaction. Let’s have a look at ARUM and TICKMILL. For instance, the markup for gold is more than 10pts. In BHC, such a commission is already included in the spread and presented in the table.
As for the depositing and funds withdrawal, here all analyzed companies are close to each other, with up to 4% on top-up and up to 5% withdrawal, depending on the amount and the method of replenishment.
In terms of the number of tools available, here are to companies offering the same conditions: brokerBristol House Corporation and GERCHIK & CO.
As for GERCHIK & CO, the presence of ETFs is a significant advantage. This is a very interesting tool that can be included in the portfolio in terms of increased market volatility. The presence of a large number of company shares (more than 3,000) allows you to carry out the number of investment decisions that you won’t be able to make through the entire Moscow Exchange. We don’t consider FinmaxFX because of an insufficient amount of information on the website, although the number of instruments mentioned is impressive.
If to analyze commissions, BHC is more appealing (taking into account the markup from Gerchik).
And there is another important point when considering a company. The BHC website’s interface is not so user friendly as GERCHIK’s yet there is no extra information, no advertisement. At GERCHICK, the site is filled with Gerchik’s courses, his name and his face. In the end, it’s not quite clear if the company focuses on education or trading.
BHC does not have the lowest commission rates on the market. If you take specialized brokers, for example, PSB-Forex, then the Forex market commissions there will be much lower than any of the presented companies; however, there are only a few dozen currency pairs available – suitable for scalping, not for long-term investments. So, it turns out that Bristol House Corporation acts as an excellent multitool from Leatherman. Not the cheapest tool, but functional, understandable, reliable, without extra functionality; it does exactly what you need and what you have enough imagination for.