A lot of traders think that a big broker is better than a smaller one because a larger company has many advantages such as economies of scale, a better liquidity position and is the subject of higher scrutiny from the public and the regulators. While this basic assumption has some merit and best uk based forex broker some degree “bigger is better”, it is not a total correlation between size and quality of forex brokers.
If you want to find out which are the biggest forex companies in the world, you should continue reading this article. However, if you want to know which are the best forex brokers in the world when it comes to trading conditions and customer satisfaction, you should check our special forex brokers ranking. How to measure the biggest forex companies When it comes to measuring the size of a company, there are several criteria that are generally used. The most common criteria used in ranking companies by size are market capitalization, revenue and profits. Also, when it comes to financial companies such as banks or insurance companies, another way to measure size is by comparing the total assets under management. This would leave most forex brokers out of the ranking.
It is also important to note that market capitalization represents the value investors give to a specific company. A small but profitable company can have a higher market value than a large company unable to generate profits. Revenue – While ranking forex brokers by revenue will render more accurate results, this criteria is still far from being relevant in this particular case. A broker’s revenues will come from the commissions it charges and the spreads the traders have to pay.