According to the developing speed of forex sector, forex brokers are risen more than ever before. This makes it hard for beginners to find and choose their perfect ones. Therefore, this article will provide some advices for beginners to choose the best forex brokers. Here is the list of best forex brokers, which especially suitable for beginners:
- Things that most beginners misunderstand
First, forex demo account is believed to be the most suitable for beginners. As it is mentioned in the following parts of this article, Cent account is the best account for beginners, not Demo account. Moreover, Demo account even affects badly to beginners.
ECN, known as the best account for experts, is not suitable for beginners as it is very volatile. With 95% of new traders losing money, it shows that there are lots of slippages and gaps. Actually, the acceptable profit rate for beginners is 3 to 5% though few of beginners could obtain 50 – 100% or even 10000% profit but will probably end up with nothing.
Second, beginners trade and make the decisions based on the news. Often, their positions are opened with the release time of the news, which is probably too late. Experts, on the other hand, get all the information needed for trading so that they can open their positions 15 minutes just before or after the news release time.
- Lack of knowledge about the perfect brokers.
It is believed that beginners should find the best forex brokers while joining into the market. In fact, there is no “best” brokers for all traders but it just has the “most suitable” for each. It also depends on the trading strategies, experiences and many trading conditions,…that beginners could find their most suitable. Further, as the losing rate is too high at this early stage, the main target is to have experiences and minimize the losses.
- How to choose the best forex brokers for beginners:
Followings are some standards for choosing the best brokers for beginners:
- Requiring low deposit
- Requiring small trading lot
- Easy and simple
- Having great local support.
- Trusted brokers
- Good training sessions.
Requiring low deposit:
A small amount of investment is needed at this stage for beginners as they only deposit small funds (normally less than $100 for 3 months). Therefore, it should be the brokers who offer great services and good trading conditions to work with.
Requiring small trading lot:
Some brokers require small trading lot like XM, Exness and FBS. Their lot trade is only 0.00001 USD and 0.0001 USD while the standard lot is 100,000 USD. This makes more convenient and easier for beginners as they are not advised to invest a huge amount of money. Micro account is used at XM, when Exness and FBS have Cent account which is also suitable for beginners. These accounts only require to deposit $10 for a month without any minimum amount.
Easy and simple:
Forex is so complicated that its system is hard to understand, too. Thus, to simplify things and start trading, these are some advices for beginners:
- Choose the brokers who offer friendly trading systems
- First, trade by web trade/ web terminal. Then, trade MT4/ MT5 later
- Use the easiest payment methods (Visa, Master,…) at the beginning
Having great local support:
It would be great to have supporter in your own countries so that they can help you with some operations such as login, installing MT4, 3D security of Credit Card,… As this is often the problem of most beginners, the guidance should be given for the new traders at this early stage.
It is only with experts who invest huge amounts of money that the brokers may want to cheat, while beginners with small funds should not be worried much about the credibility of brokers. Anyway, beginners are also advised to work with reliable brokers as they often offer great services with good supports.
Good training sessions:
Some of brokers have training sessions for their clients and customers to help them with their difficulties, provide more information and sometimes, ask for deposit.
- Top 3 best forex brokers for beginners
- XM.com: 9/10
- Exness.com: 9/10
- FBS.com: 8/10
As it shows, XM and Exness have the highest scores with a slight differences between them. XM offer the smaller positions (0.00001 lot USD) and better training programs so it gets the higher score. Whereas, Exness also allows the small position (0.0001 lot USD) with the great support and good payment systems. FBS support and payment systems are good, too, but it only offers great services in the countries where it has offices, which are mostly in South East Asia: Vietnam, Thailand, and Indonesia.
- Demo contest is for beginners?
In common, Demo contest is thought to be for beginners but the fact is that the winners are often the professional traders. They mainly come from China, Indonesia, and Thailand with the high rate of profit (more than 10000%) which are mostly by using robot trading. It might take a lot of time and cost to join and trade in these contests, so it is not recommended for beginners, whose main target is to minimize the damages and losses.
- Welcome bonus for beginners?
Welcome bonus is often hard to obtain, even if it can be withdrawn. In general, there are conditions for withdrawal which requires a certain amount of deposit and number of lots/ transactions, so it could cost more to obtain the welcome bonus and therefore, beginners should not be attracted to this.
- Suggestions for beginners
These following suggestions are commonly for beginners:
- Use Micro/Cent account
- Deposit less than $100 for the first month
- Learn how to manage risks and minimize the losses
The fact is that the higher the profit, the higher risks. Thus, remember not to be so greedy to gain the high profit which will probably cause many losses. In addition, do not use robot trading when it is not necessary. As this could be effective and suitable for experts who could adjust and customize these robot for their trading orders, beginners should not use this until they are skillful and understand explicitly the trading system.