BRKV - After thoroughly researching into forex trading, you may realize that it is time you searched for the perfect forex brokers for the beginner like you. Obviously, ECN brokers are not suitable for the beginners. So, how to find out the perfect forex brokers for the beginners. Let’s read through this article.
Here is list of best forex brokers for beginners.
- XM.com: 9/10
- Exness.com: 9/10
- FBS.com: 8/10
1. The beginners’ misconceptions:
Firstly, most beginners think that that demo account will help them practice trading, but, actually, demo account will not bring benefits to them. In the previous article, I have explained why Cent account is the perfect choice for the beginners.
Secondly, ECN brokers are favorable only to the experts, so the beginners shouldn’t trade with this type of broker. In fact, 95% of the beginners will lose money due to various slippages and gaps. As a result, they shouldn’t spend too much money investing in forex trading at early stage. The beginners should keep the profit rate at about 3 to 5% per month instead of over 10%.
Thirdly, the mistake that all beginners make is to open positions within the news release time. However, they should open/ close positions 15 minutes before/after the release.
2. The beginners’ misunderstandings about the perfect brokers:
Most beginners want to trade with best forex brokers. However, as mentioned above, there is only one type of broker that is the most suitable for the traders on each stage of trading. To find out the most suitable forex brokers, the beginners must take their trading strategies, experiences and trading conditions in their country into consideration. The target of the beginners at early stage is to learn and minimize loss.
3. The criteria to decide whether a forex broker is suitable with the beginners or not:
The beginners should do business with the brokers that can satisfy all following criteria:
- Low deposit requirements.
- Small trading lot requirements.
- Good local support.
- Trusted brokers.
- Good training and coaching programs.
In the early stage, the beginners will be offered the best trading conditions by the brokers. I strongly advise you to deposit less than $100 for the first three months. No brokers will cheat you, because you only deposit small funds.
Why small trading lot is the most important?
At the beginning, you should keep positions as small as possible. You can open positions as small as 0.00001 Lot USD with Micro account or 0.0001 Lot USD with Cent accounts. Besides, these accounts don’t require minimum deposit, so you can deposit whatever amount you want. Additionally, you still can withdraw your win money. The beginners can open Micro account and Cent account at XM, Exness and FBS.
Why “Simple trading system” is important for beginners?
To develop in a complicated trading system like forex market, the beginner should choose the broker which have simple trading system. The beginners should:
- Choose the easiest brokers.
- Trading by web trade/web terminal at the beginning. Trade MT4/MT5 later.
- Deposit by Visa/Master at the beginning, because it’s much easier than other payment methods.
Beginners need good local support brokers
Local support means supporters must speak your native language. Forex trading is very complicated. As a result, you are highly likely to get into troubles such as: login, installing MT4, 3D security of Credit Card… It is important that your supporters explain the problems to you in your mother tongue.
Although forex traders are advised to trade with trusted brokers only, the beginners can trade with any brokers provided that they are convenient for those traders. No brokers will cheat the beginners, because their deposits are just small funds, about $10.
After gaining enough experiences and knowledge, the beginners can invest bigger amount of money and trade with reliable brokers.
Good training and coaching programs
For the beginners, weekly or monthly training program which are offered by some brokers are essential. The beginner can register an account to learn about forex trading and then change to better brokers after the training courses.
Read more : FOREX BONUSES – HOW MUCH ARE YOU AWARE OF THEM?
4. List of 3 best forex brokers for beginners
- XM.com: 9/10
- Exness.com: 8.5/10
- FBS.com: 8/10
XM and Exness are the top biggest forex brokers, so they are trusted brokers. XM can offer their clients smaller positions (0.00001 lot USD) and many training programs.
Exness is the biggest retail forex broker. They have Cent account with which you can open as small position as 0.0001 USD. Exness’ support and payment systems are highly appreciated.
FBS also has Cent account. Their support and payment systems are very good, but they only offer good services in South East Asian countries such as: Indonesia, Thailand, and Vietnam where they open their offices.
5. Why is demo contest not beneficial to the beginner?
In fact, all the demo contest winners are professional Chinese, Thai and Indonesian traders whose profitable rate are over 10,000%. To win demo contest, most of them are using robot trading. Obviously, beginners cannot get high profit rate like these winners, so you had better not dream of winning demo contests.
For the beginners, the demo contest is just time-consuming. Additionally, demo contest trading strategy which is focusing on profit and ignoring risks, is opposite to the normal trading strategy, so demo contest cannot help you to practice trading.
6. Should beginners get welcome bonus?
It’s easy to register welcome bonuses but it’s very difficult to withdraw. If you want to withdraw, the brokers will require you to deposit and trade enough number of Lots. Sadly, these conditions often make you lose money.
7. Advices for Beginners:
- Trade Micro/Cent account.
- Don’t deposit more than $100 for the first month.
- Learn risk management.
If someone ask you to deposit tens of thousands of dollar and promise that you will get very high percentage of profit. That is a trap. Even though it’s easy to get that profit rate, but the higher the profit, the higher the risk. The beginners might win in some months or even some years, but eventually, they will lose everything.
Don’t use robot trading. If someone sell you a trading robot and ensure that you can get profit rate up to hundreds percent monthly. Don’t trust them. Robot trading is only suitable for experts. To win, the experts have to frequently customize these robots to follow their trading strategies. There is no robot that can win forever. Let’s trade manually until you recognize that you need some automatic tools to help you with some parts of your trading processes.
Hey there, this is Fanara Filippo. I'm the author of this article and i'm currently collaborating with Brokerreview.net, or BRKV in short. My articles are mainly for forex traders from Thailand, Indonesia, India, Bangladesh, and South Africa.