10 Best Forex Brokers for Beginners

Top and The Best forex brokers for beginnersAlthough there are thousands of forex brokers to choose from regardless of country, not all brokers are suitable for beginners. Beginners have special needs that must be met. For instance, a beginner is someone who is starting out learning about the forex market. As a result, the forex broker should offer supporting educational resources. Beginners also need to start trading with very little to low risk since the chances of loss are higher. As a result, they need brokers who accept small minimum deposits.

List of Top 10 Forex Brokers for Beginners

  • FBS $100 No-Deposit Bonus, 100% Deposit Bonus, Lucky T-shirt, iPhone 6s Plus
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    • Regulated by CySEC, IFSC (International Financial Services Commision) Belize
    • Spread From 0 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:3000
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    • Online Since 2011
    • Regulated by FSA (Saint Vincent and the Grenadines) and CySEC
    • Spread From 0.4 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:500
    • MetaTrader 4 Platform
    • Free Swap & Commission
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  • XM “50% +20% deposit bonus up to $5,000, Loyalty Program Bonus
    • Online Since 2009
    • Regulated by ASIC, CySEC, FCA (UK), IFSC
    • Spread From 1 Pips
    • 5 Digit (5 Decimal Pricing)
    • Leverage Up to 1:888
    • MetaTrader 4 & MT5 Platform
    • Free Swap & Commission
    Open Account

Beginners also need to test out everything there is to offer in regards to forex trading resources. Forex brokers offering a variety of trading tools come in handy in this respect. There are many other needs that beginners have, including the need for dedicated support staff to answer questions and offer instant guidance. Here’s an in-depth discussion of how to choose the best forex brokers for beginners.

Tips for choosing the best forex brokers for beginners

  1. Check if they are approved

The first, most important thing you should do before you select any forex broker is to check if the relevant regulator has approved them. This tip applies to every trader, whether you are a beginner or professional. If the broker in question is Australia-based, they should be regulated by the ASIC (Australian Securities & Investments Commission), if they are based in Germany, they should be regulated by BaFin. US-based forex brokers are regulated by the NFA (National Futures Association) & the CFTC (Commodity & Futures Trading Commission). Here’s a list of other major regulators in jurisdictions popular with forex brokers.

  • Cyprus: Cyprus Securities & Exchange Commission (CySec)
  • United Kingdom: Financial Conduct Authority (FCA)
  • Switzerland: FINMA (Swiss Financial Market Supervisory Authority
  • Austria: Financial Market Authority (FMA)
  • South Africa: FSB (Financial Services Board)
  • British Virgin Islands: Financial Services Commission (FSC)

Regulatory approval is crucial since it confirms that the forex broker you are dealing with has passed stringent requirements. The forex market is $5 trillion+ a day market. The lucrative nature of the market has attracted many unscrupulous players out to take advantage of unsuspecting traders, especially beginners. To avoid being a victim of a forex scam, you must check if a broker is approved before you open an account and deposit money with them.

Regulation closes all the “gaps” for exploitation, fraud among other common malpractices. For instance, a regulated forex broker can’t “vanish” with your deposit. Regulated brokers are also insured, making it possible to recover your deposit in case of eventualities like bankruptcy or electronic fraud. They are also monitored continuously to avoid practices such as market manipulation and conflict of interest.

Related: The Importance of Regulation in Forex Trading

Checking for regulation is easy. Such information is usually displayed clearly on the Homepage or About Us page of the broker’s website. It’s your duty to confirm if the regulatory details given i.e., registration number is legitimate.

  1. They must offer adequate educational resources?

As a beginner, you also need a forex broker that will help you become a better trader, and one of the best ways of doing that is being given access to the best forex market information and courses today. The forex broker you choose should have beginner tutorials that let you learn the basics of forex from terminologies to types of trading.

Although such information can be found online, it is usually scattered. Some online forex resources are also inaccurate. To avoid misinformation, you should get every learning resource possible from the broker you choose. You should have access to information on trading strategies, technical analysis, fundamental analysis, historical data on currency pairs, and more including webinars, training videos and podcasts with industry experts.

Learning is a critical part of becoming a profitable forex trader. If you start trading with a broker who doesn’t invest in your education, your chances of becoming profitable are very slim. In fact, brokers who don’t offer educational resource are simply setting beginner traders up for failure. Such brokers just care about making profits.

Important: Lookout for brokers who just offer basic information. Choose forex brokers who have invested heavily in making sure beginners have everything they need to advance.

  1. Check for practice accounts and micro live accounts

Forex brokers that are friendly to beginners must offer practice accounts. After going through the educational resources offered, you should be able to practice what you have learned using virtual money. The practice accounts on offer should match typical live trading circumstances in every way, including trading amounts, leverage, lot size, etc. The best forex brokers for beginners allow you to test trading strategies as if you were trading with real money. Avoid brokers who put unnecessary limitations on practice accounts i.e., in trade execution because you won’t get the “true feel” of the market.

When you are ready to trade with real money or open a live account, you should be allowed to trade with as little money as possible i.e., $50 and micro-lots to control risk. Although it takes time to make sizable profits when trading with small amounts and brokers also earn equally small commissions, the best forex brokers for beginners won’t mind empowering you and giving you all the time and resources you need to become a better trader gradually.

  1. The broker must be secure

Security is another critical factor when choosing a forex broker. Like regulatory approval, security is important for all kinds of traders, including beginners. It is particularly important for those starting out since secure brokers take proactive steps to ensure your funds and personal information is safe. There are several cases in the past of seasoned brokers being hacked. To avoid losing your personal data to identity thieves or losing your funds to fraudsters, the broker you choose must offer the highest internet security standards. For instance, they should use the best internet security firms and have SSL encryption to ensure any information transmitted via their platforms and website doesn’t get intercepted by third parties. 256-bit SSL encryption is adequate enough.

They should also offer additional safeguards such as two-factor authentication to ensure you have exclusive access to your accounts via all online trading platforms. A password is no longer enough today for beginners and experts, especially when accessing trading apps. Last, but not least, they should have a strict privacy policy that highlights the data they collect and the rules governing storage and handling of such data.

  1. They must have the best trading software/platforms

The software or trading platforms on offer also matters. The best forex brokers for beginners will offer the best platforms regardless of a trader’s expert levels. You shouldn’t be limited in any major way just because you are a beginner. You should access the best platforms and trading tools available. As a beginner, you’ll need clear charts, a variety of indicators including RSI and MACD. You’ll also need platform/s that have live stream news and a forex and/or economic calendar.

The platforms should also be easy to use i.e., you can buy and sell easily. The platforms should also have adequate trading resources like candlestick charts for identifying entry and exit positions easily. The best brokers for beginners also offer a variety of software/apps to choose from. Regardless of your OS or device, you should be able to trade with ease.

MetaTrader is the most popular forex trading platform globally. The forex broker you choose should be able to offer a custom version of the latest MetaTrader among other platforms/software/apps for mobile and web-based trading. It’s crucial to have continuous access to your trading a/c as a beginner regardless of your location so that you can keep watching the market and learning.

The broker should also offer new platform features like social trading with chatting or social platform features. As a beginner, it’s important to interact with other traders and see how they are trading. Besides currencies, you should also be able to trade many other financial instruments such as stocks, indices, commodities, ETFs, cryptocurrencies, etc. The forex market is affected by many other markets. The opportunities for making profits are limitless if you learn to trade other financial instruments besides currencies. The best brokers give beginners exposure to other markets and financial instruments.

  1. Low fees

As a beginner, the probability of losing money is high. Brokers who care about beginners are sensitive to this fact, which is why they have special fee structures. Before you know learn how to manage your account properly using risk management tools like stop-loss orders, you are bound to place many losing trades. Beginners also tend to trade more often, which translates to high commission fees. Strategies like scalping popular among beginners can be costly since every trade has a cost (spread). The importance of selecting a forex broker who charges beginners reasonable fees can’t be overlooked.

Tight spreads translate to lower costs for traders. The broker should also offer options such as fixed spreads to protect beginners from market fluctuations. You shouldn’t be charged a commission unless you are holding trades for prolonged periods i.e., over a week. Miscellaneous fees, if any, should be charged when it is absolutely necessary i.e., due to prolonged periods of inactivity and not on every deposit or withdrawal.

  1. Excellent customer support

Beginner traders also need forex brokers with good customer service. As you learn how to trade, you’ll need a lot of help setting up your account, understanding how to use different platforms, depositing and withdrawing money, among many other things. Although the best forex brokers for beginners have self-help guides and tutorials that come in handy when novice traders are stuck, live support comes in handy in solving problems in record time. Furthermore, traders rarely have the time to launch typical support tickets and wait for 24 hours for a response. Live chat is, therefore, a must.

Support staff should also be skilled and experienced enough to solve most problems immediately via tools like screen sharing. If you have a software error, they should be able to solve it remotely. If the broker is based in a foreign country, their support services should support multiple languages. The response time should also be above the industry average. Although live chat is supposed to be instant, some brokers are guilty of keeping traders in line for more than a few minutes. The best brokers will get you in front of a live support agent in seconds or 5 minutes at most.

  1. Check online customer reviews

Lastly, you need to check what other beginner traders are saying about a forex broker before you decide to use them. You can factor in all the above tips; however, the only sure way of finding out what it’s like to trade using a certain broker is to check the opinion of someone who has had a firsthand experience. However, before you do this, be wary of fake reviews online. Rogue forex brokers are guilty of posting fake reviews. As a result, you must ensure you are checking legitimate reviews from real traders first before you consider the content of the reviews.

One sure way of doing this is checking legitimate review websites like TrustPilot which post verified reviews only. You can also check for reviews in well-known forex forums. However, beware of the fact that most traders lose money and are bound to blame brokers. As a result, the number of negative reviews tends to be more in most cases, even if a broker is legitimate. Reviewing should, therefore, discount such bias. Most beginners will have something to complain about if they are losing money. You should differentiate between a biased negative review and a genuine one. All in all, the positive reviews should be more than the negative ones.

In a nutshell, finding the best forex brokers for beginners isn’t easy with the number of rogue brokers increasing by the day. Luckily, you have eight tips to guide you. If the forex broker in question is regulated and they have invested heavily in educational resources, you are one step closer to determining if they are great for beginners.

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