Forex is a complicated sector, which makes it difficult to join and start working in this field. This article will help beginners, who are desired to join in forex market, choose the most suitable and best forex brokers. Below is the list top forex brokers for beginners for your reference:
- XM reviews: 9/10
- Exness reviews: 9/10
- FBS reviews: 8/10
- What do beginners misunderstand about the forex trading?
Most beginners believe that forex demo account is the best thing to start when they are joining into the forex market, which is probably wrong! As it is mentioned in the article, Cent account is the best account for beginners, whereas, demo account is not really significant, or even has poor effects.
Meanwhile, experts’ preferences are ECN accounts, which are more difficult to use and gets volatile easily. Beginners are not recommended to start working with ECN account due to a lot of slippages and gaps, which could make about 95% of beginning traders lose their money. Probably, the profits are from 50% to 100%, or even up to 10000%, but nearly 100% of beginners will lose all in the end according to the research results from many brokers. Thus, the advice is not to invest too much at this time, instead, try to keep the profit rate under 10% and in fact, 3 to 5% monthly is acceptable rate for beginners.
It is thought by the beginners that the positions should be opened within the news release time, which is absolutely wrong and often too late. Experts, whereas, get all the initial information so that they could make their decisions just a few minutes (15 minutes) before/ after the release time.
- The “most suitable” forex broker, not the “best”!
At the beginning, people are tend to search for the “best” forex brokers which are in the list of top best forex brokers in the world. After a few failures and losses, they started to think about the “most suitable” brokers for them, which match with their trading strategies, experiences, trading conditions in other countries,… As the losing rate is too high, the main target for this stage is to learn and minimize the losses.
- Which are the standards of the best forex brokers for beginners?
As the main target is to have experience and keep the losses minimal, here are some standards that could help choose the best brokers for beginners:
- Reliable brokers
- Requirements for deposit are low
- Requirements for trading lot are small
- Good training and coaching programs
- Easy and convenient
- Good local support
As usual, it is always supposed to be the reliable brokers that we should trade with, not only for experts but also beginners. Apparently, experts often choose the trusted brokers as their amount of investment is enormous and dramatic, yet, beginners only start with small amount of money, so they are not necessarily worried much about the credibility of these brokers. The advice for beginners is to trade with those who are easy and convenient to work.
Low deposit requirements:
As it is mentioned above, beginners are advised to start with a small amount of investment, which should be less than $100 (for 3 months). Brokers which allow the low deposit are attractive with beginners at this stage. They often provide the best trading conditions, friendly environments to keep the beginners work for a long time before they could invest more. Beginners are not worried about the trading cost as this is not substantial.
Small trading lot requirements:
The amount of investment for beginners should not be too big as the losing rate is dramatically high, as mentioned before. The most suitable accounts for this stage should allow you to open the smallest positions as possible. The standard lot is normally 100000 USD, which is too much, thus, there are some brokers offering low positions such as XM with just 0.00001 lot USD. Their accounts are called Micro accounts, meanwhile, Exness and FBS also have Cent accounts which offer the minimum lot trade only 0.0001 lot USD.
Trading with Micro and Cent accounts is believed to have many advantages as there are no minimum deposit requirements. It is only with $10 that we could deposit and practice trading for a month with the best brokers for beginners. Further, profit and winning money could be withdrawn easily.
Good local support:
There are some of brokers which offer weekly and monthly training session for their customers. This provides information about the forex market, trading skills, experiences,… and helps customers with their difficulties, which is significantly great. However, a few brokers may ask you to deposit big amount of investment, unless they are the trusted brokers, it is not recommended to follow their instruction. Briefly, these training courses help register account, deposit, give information and some skills that are probably needed in trading forex.
Easy and convenient:
Forex is supposed to be complicated and fluctuates strongly. Its trading system is even more complicated and difficult to understand clearly. Thus, the advice is to make things simpler and easier. This strategy, exceptionally, helps beginners minimize their damages and failures while learning and having experiences at the same time. Below are some suggestions:
- Choose the most simple forex brokers.
- At the beginning, trade by web trade/web terminal. Trade MT4/MT5 later.
- Deposit by Visa/ Master first as these are the most convenient payment methods.
Good local support
It would be better to have supporters who speak your native languages so that you can clearly understand forex trading system. As it is mentioned before, forex, itself, is a complicated sector with many operations that new traders, without guidance, can hardly accomplish. Operations such as logging in, installing MT4, 3D security of Credit card,… might be the problems for most beginners if they do not get any help from local supporters.
- Top 3 best forex brokers for beginners
According to researches and surveys, here is the top 3 best forex with the scores out of 10:
- com: 9/10
- com: 9/10
- com: 8/10
As it shows, XM and Exness are rated the highest with the scores 9/10 and 8.5/10, they are also in the top largest forex brokers. The reason why XM is slightly better than Exness is that XM allows to open smaller positions (0.00001 lot USD) and also has many training sessions.
Exness, however, is the biggest retail forex broker which has Cent account allowing to open a small position as 0.0001 USD. It has many advantages in support and payment systems, too.
FBS also has Cent account. It offers great support and good payment systems but mostly for the countries where it has offices. Its main serving countries are from South East Asia such as Vietnam, Indonesia, and Thailand.
- Demo contest for beginners: necessary or not?
It is supposed to be the beginners who should join Demo contests for practicing but in fact, it is not true. Most winners of the contests are professional investors and experts. Many researches have been done about these winners and these show that most of the winners come from China, Thailand and Indonesia with an enormous amount of profit. Their profitable rate is often more than 10000%. However, as mentioned above, these contests should be just for experts. Beginners might try, but not with a huge amount of investment as this can affect negatively to the trading strategy. Remember, main targets for beginners are to minimize the losses and having experiences, while demo contest trading strategy is to earn as many profits as possible.
- Welcome bonus for beginners?
As it is explained explicitly in the article about the welcome bonus, this kind of bonus is not often easy to obtain. By registering a new account, welcome bonus is given to new traders just for trading but not withdrawing. Even if it could be withdrawn, it is not easy and sometimes, costs more than the bonus value. Difficult conditions to withdraw bonus make traders deposit and trade more lots and transactions, which could lead to losses and high cost. Yet, it is better if brokers offer good welcome bonus and are reliable at the same time.
- Tips for beginners
Following are 3 main tips for beginners to start joining in forex market:
- Trade Micro or Cent account.
- Do not deposit more than $100 for the first month.
- Learn to manage risks and losses.
According to the common rule for investment, the higher profits, the higher risks. Beginners should not listen to the attractive offerings from brokers with the promise to gain very high percentage of profit. They might win for some months, but will probably lose everything in the end.
Do not use robot trading for these following reasons:
- Robot trading is only suitable for experts who can customize and adjust robot to follow their trading strategies in the right way.
- No robot could win forever
In short, let’s trade manually and use robot trading when you are aware of the needs for automation tools which could help you effectively.