Most new forex traders still consider the top largest brokers as the best forex brokers for beginners, however, the largest is not always the best. There is a gap in knowledge and experience between new traders and the veteran, but such big brokers are usually the playground for professional and experts only. In addition, the largest forex brokers are large, but it does not mean they are everywhere. Lots of newcomers have tried with the ‘best’ and loss, find no support from the ‘best’, they soon conclude that foreign exchange does not suit them.
On the contrary, many new traders keep a firm grip on the situation and decide to research further, and to change. In the world of forex, there is no definition as ‘the best’, you can only try to find your most suitable then practice and earn experience, figure out your strategy then gain and loss. This article is to provide what beginners need to find their brokers fit. We also give some recommendation and examples, from which the starters could understand, which makes things easier for practical research.
Key components to find suitable brokers
To prepare your best for the future career as a professional forex trader and minimize losses at the early stage, the following points are worth noting down to begin your research:
In general, large brokers frequently open 2-3 accounts including Classic and ECN accounts as regular. Both require a considerable amount of minimum deposit, and it’s worth noting that ECN has a high volatile exchange rate. The conditions are attractive, but for professionals and experts, not for new forex traders who need weeks and months to form tight disciplines which are essentially important in the currency market. As novice traders, avoid ECN accounts, or you risk both your time and money.
In trading currency, starters should start with the Cent Account with a stable trading condition, no minimum deposit and a small trading lot requirements. Exness and FBS, two large brokers, also offer the Cent Account, which is normally supported by small brokers; XM also has its Micro Account with similar trading conditions. The fresh traders can open positions as small as 1/100000 Lot USD with XM Micro Account and 1/10000 Lot USD with Exness and FBS Cent Account, which means you can practice for a whole month with just $10 deposit.
The Demo Account is another choice with more stable fluctuation and virtual money for practice. However, this less pressure trading condition unintentionally harms the new traders with overconfident and subjective judgments. Thus, we strongly recommend Cent or Micro Accounts as best options for newcomers.
There are many scam brokers besides the reliable brokers, but to reveal a scam broker takes time while your money might evaporate already. The reliable brokers have not only regulation but also long history without scam reports, easy to find out. The scam brokers usually come up with catchy Welcome Bonus to hook up the inexperienced traders. Don’t blindfold yourself by the fame and sounds profit, it is simple to register for Welcome Bonuses but difficult to withdraw. You must deposit or open with a fixed number of trading positions as withdraw conditions, there are no actual freebies in common. However, trading with reliable brokers would properly work with years of operations and standard finance report, it could be a little bit harder at the start, but much easier later, no doubt.
From another aspect, the experts’ concern is about the credit, trading cost, and quotes quality, the new traders are different. Fortunately, if you spend just $10 deposit with the typical practicing account, you needn’t care about the trading cost, and no brokers want to cheat traders with little deposit. When you are strong enough and ready for larger investment, trade with the largest brokers.
In brief, good support consists of the language support and a wide system of local offices. As the forex market grows, new traders come every day from all corners, they seek lots of information with the immediate technical support. In the currency market of complex, hours of reading, question and answer on the internet would be tough and annoyed because of the language barrier, many have given up for no language support.
Local support is also important for direct services with more reliability. Local support normally goes with local payment system which helps traders withdraw money faster and safer. More than that, you can find other local traders to share and discuss, which is obviously more interesting than typing on the computer screen for days.
Training or Education System
As mentioned above, tight disciplines are critically important for all traders to form the risk management as an instinct. Emotional traders often throw away the bet for unreasonable reasons, don’t follow them. Strong brokers provide strong e-learning system with visual training material, from basic to advance, as a method to help and also to keep new traders. The training materials are completely free, you need just to register and verify to access.
Furthermore, on your career path, you have many chances to change between brokers, and each broker usually offers the specific trading platform with unique software and tools to comfort traders. Therefore, the tutorial is clearly necessary getting used to various charts and graphs for beginners. Forex.com has strong e-learning system, the broker also provide diverse trading platforms created by numerous third-party companies – a good self-studying environment for starters.
Practice risk management
Learn reading finance report as soon as possible, it’s worth your time and effort, and the result benefits you more than you wish. In terms of economics, understand financial data will help you decrypt the currency flow and figure out the brokers’ financial status. It is essential for this stage of learning risk management. For example, many new traders mistake that trading should be open based on the news release time means, but it is wrong. The professionals open or close positions about 15 minutes before or after the release time.
Don’t fall with promising profit
There were traders did win a hundred times their deposit, but lost almost later. The higher the risk, the more profit, and vice versa. You can keep your profit rate over 10%, but it is still easy to lose. Keep it at 3-5% monthly is the magic number. Especially with novice traders, keep the low deposit for the first three months with the best brokers for beginners. My advice: $100 for this stage. Most beginners lose their trading fund at the early stage, so don’t invest too much at that moment.
No Trading Robot
Trading robots are suitable for experts with broad knowledge and flexible trading strategies. They can adjust the robot custom to fit the plan. Moreover, you need to pay for a trading robot which cannot win forever. New traders should start manually with basic tools and platforms to understand the forex market at the early stage, then risky later.
Avoid Demo Contest
Demo contests focus on profit and taking a gamble, which is contrary to classic trading strategy. Research shows that most winners are Chinese, Thai, and Indonesian professionals using a trading robot. The profit rate is over 10000%. It is more like for a professional to have fun than for new traders to practice.
Choose the simple brokers
In this modern time, the foreign exchange market has become more complicated with more trading tools, regulation, terms and conditions, etc. Therefore, choosing a simple platform and payment method are also important for new traders. Our recommendation: trading on the web terminal, using credit for payment at the beginning for the simplest and most convenient.
The list of best forex brokers for beginners
XM reviews: Strong e-learning system with adaptable trading platforms. Multiple-language services support 24/7 online. Super small trading lot with an ultra-low spread. Official sponsor of Usain Bolt.
Exness reviews: Strong updated news and financial review on currency pairs. Multi-language Website with friendly UI and 24/7 online support, wide system of local offices. Multiple account types and execution method with free transactions, the super low trading lot. Official sponsor of Real Madrid, and Cristiano Ronaldo as an individual.
FBS reviews: Supports with various accounts. Chat supports is available 24/7. Good Demo and Cent Accounts. Most of the target countries are in the Asia region.