If you’re reading this article, I’d like to congratulate you on choosing the right path to start your trading career. You must have done quite a lot of researches already but you can feel rest assured now as I’m confident that this article is definitely the right guide for you. To start off, here’s our list of the best forex brokers for beginners.
First, I would like to share with you the misunderstandings of beginners.
Usually, beginners think that forex demo account is the best one for them. But in fact, demo account won’t work for beginners, and even has negative effects.
As beginners, you should keep away from ECN account as it’s only good for experts. It is very volatile, which means it has many slippages and gaps.
Research shows that 95% of beginners will lose money if they invest too much at the early stage. They may get 50-100% profit, and even up to 10,000%, but 99.9999999% of them lose all afterwards. Thus, I advise you should only keep your profit rate from 3 to 5% per month.
Some beginners think that trading on the news means that they should open positions within the news release time. But in fact, the best time for opening positions is 15 minutes before or after the release time.
Second, let learn about wrong knowledge traders get regards best brokers for beginners.
Honestly, I used to think that I had to trade with the best forex brokers, but after many losses, I realized that I was wrong. There is no definition of “best” but “the most suitable” in the forex trading world. Which brokers is appropriate for you will depend on your trading strategies, your experience and your country’s trading conditions.
Third, I will show you the criteria of best brokers for beginners.
Actually, there are many standards of best brokers. However, in this category, I just mention six most important standards of them.
Low deposit requirements:
As you are beginners who only deposit small funds, no brokers want to cheat you. Instead, they will nurture you, so they will give you best trading conditions. In this case, you shouldn’t deposit more than $100 as you only trade a little amount of money, so you don’t need to care about the trading cost.
Small trading lot requirements:
At first, because of less experience, you should open small positions. Some brokers like XM, Exness and FBS have Micro accounts and Cent accounts whose minimum trading lot is only 0.0001 Lot USD. With these accounts, you can deposit whatever you want as there are no minimum deposit requirements.
As some brokers’ trading systems are complicated, here I give you some advices to deal with them.
Choosing the easiest brokers
Trading by web trade or web terminal at the beginning, then changing into MT4 or MT5
Depositing by Visa or Master at the beginning
Good local support:
I used to get some problems in terms of login, installing MT4 and 3D security of Credit Card, etc. when I first traded. Therefore, I suppose it will be easier and quicker if your supporters can speak your native language.
This criterion is not very important to beginners as they only deposit small amount of money; they hence can trade with any brokers they like. However, when they get enough experience and knowledge, they will want to invest bigger amount of money. At that time, this criterion will be very significant and necessary to them.
Good trading and coaching programs:
Some brokers offer weekly or monthly training programs for clients. They usually ask you to deposit big amount of money. You shouldn’t do that unless they are in the list of TRUSTED FOREX BROKERS IN 2018.
Four, I will give you the list of three best forex brokers for beginners.
XM is a little bit better than Exness as it allows you to open smaller positions (0.00001 lot USD) and has many training programs.
Exness is the largest retail forex broker. It has cent account which you can open as small position as 0.0001 USD. Its advantages are the support and payment systems.
FBS also has cent account as well as good support and payment systems. But it only offers good services in countries where it has offices.
Fifth, let find out whether or not beginners should join demo contest for practicing.
Usually, we think that demo contests are for beginners to practice. However, all demo contest winners are professional traders. Most of them are Chinese, Thai and Indonesian. Their profitable rates are 10,000%. That means they are using robot trading to win demo contests.
As beginners, you cannot win such high profitable rates. They will waste your time and affect your trading strategy as they focus on profit and ignoring risks.
Final, the last thing I would like to share is my advices for beginners.
Trading with Micro or Cent account
Depositing less than $100 for the first month
Learning risk management
Not using robot trading. It’s only suitable for experts as they know how to customize the robots to follow their trading strategies.
Not falling if someone asks you to deposit thousands of dollars and promises the profit rate up to hundreds percent per month. That’s because the higher the profit is, the higher the risk will be.
In conclusion, understanding all about best brokers for beginners is not an easy thing. It requires time, patience and some other factors. But with my short article, I hope it can help you, at some levels, dig in much deeper with the awareness of best brokers for beginners.