There are numerous brokers to choose from in the Forex trading world with each of these brokers having distinct attributes or benefits to offer their customers. However, this does not make every Forex broker suitable for beginners.
Selecting the best Forex broker requires extensive research and adequate knowledge of Forex market. Thus, a good Forex broker for beginners should provide educational resources to enlighten beginners on Forex.
As a beginner, you need to trade with regulated and reputable brokers that offer a user-friendly trading platform as well as a variety of educational resources.
This article would discuss factors to consider when choosing the best Forex brokers for beginners as well as top ten brokers beginners can choose from.
Here is a brief guideline to choose top forex brokers for beginners
It is very important for you to check if a broker is regulated by the regulating body in the country which it is domicile. For US based brokers they are regulated by the NFA (National Futures Association) as well as the CFTC (Commodity & Futures Trading Commission). There are other regulatory bodies such as CySec (Cyprus Securities & Exchange Commission) in Cyprus, FCA (Financial Conduct Authority) in the UK. Note that there are different regulatory bodies for different countries.
The Forex market is a large one, and that has given opportunities to mischievous individuals to try to cheat traders off their hard earned moneey. This is why we recommend regulated brokers to ensure your money is in safe hands. However, we can’t rule out the fact that there are brokers who are not regulated but have existed so faron good reputation.
Beginners need Forex brokers that will help them better at Forex trading. Hence, Forex brokers should give access to the best Forex market information, and provide beginners with tutorials that let them learn the basics of Forex.
Consequently, becoming a profitable Forex trader requires learning. Therefore, it is important for brokers to offer educational resources that are accurate. A beginner should be able to access information on fundamental analysis, technical analysis, trading strategies and training videos.
One of the factors to consider in choosing a Forex broker is the fees charged by the broker. As a beginner, it is advisable to choose a broker with low commission rate.
A broker with low fees would also offer such options as fixed spread to help protect beginners from the instability of the market.
Also, it is equally important to consider fees charged on deposit and withdrawal. There are several brokers that do not charge a fee on deposit and withdrawal. Such brokers are advisable to be considered by beginners.
Setting up account, navigating through trading platform, making deposits and withdrawals, etc. usually can be difficult for beginners and which is why superb customer support should be provided for beginners. In fact, some Forex brokers have provided tutorials that can help guide a beginner through some basic things on the platform. However, live support is important because even the experienced traders sometimes need customer support to help resolve issues.
An excellent customer support should have an accurate and timely response. Most traders love their complaints to be attended to almost immediately and this makes live chat important for any brokerplatform for prompt issue resolution.In addition, offshore broker’s support services should also support multiple languages for their customers.
For beginners, it is important to use brokers who have trading platforms that are easy to navigate. This implies that they must be able to trade conveniently without any complications. Also, the trading platform should have good trading tools because beginners do need to access charts and indicators to help guide their trade activities.
Consequently, it is important for Forex brokers to provide a trading platform that has a variety of software or apps to select from for the convenience of beginners. The forex broker also needs to ensure they add new platform features such as social trading as this helps beginners interact with experienced traders and learn from them.
NOTE: There are other minor factors to consider when selecting the best forex brokers for beginners and this includes:
Top Ten Forex Brokers Lists
Oanda is well known for its standard trading platforms and below-average trading costs. The company ensures to differentiate itself from other Forex brokers with its top-notch execution quality and accountability. It was one of the first companies that offered inclusive currency exchange information online. OANDA is considered safe because it has a long track record, discloses its financials regularly, and is also one of the brokers regulated by top-tier authorities. This implies that your money is safe with OANDA.
Oanda offers low fees and a great easy-to-use web trading platform. Oanda also has an easy account opening method that requires no minimum balance. Additionally, Oanda charges no withdrawal fees for the first transfer in a month while using debit cards then subsequent withdrawals with debit cards in a month costs $15.With Oanda, you have access to great charting tools with over 70 technical indicators.
FOREX.com is popularly known for its robust trading platform for both the beginner and the professional. It delivers a superb trading experience for Forex and CFDs traders in the US. Pricing at FOREX.com is convenient to understand and also offers tight spreads on cryptocurrency CFDs.
As a beginner, FOREX.com is an outstanding choice as it offers traders access to over 80 currency pairs with competitive spreads. The extensive education and research tools that provide free and informative forex trading courses at multiple skill levels is another reason for beginners and professional traders to love FOREX.com.
Fxchoice is an offshore broker that accepts US clients. It is popularly known for allowing best practices in their dealings which is why it is the best for US traders who would want to trade with offshore brokers. Fxchoice is a MetaTrader-only broker regulated by the International Financial Services Commission (IFSC) of Belize. It offers the popular MetaTrader 4 (MT4) and MetaTrader5 (MT5) platforms. FXchoice offers 50 instruments, which include 38 forex pairs, and CFDs on seven indices, two energy contracts, two metals, and bitcoin.
FxChoice also offers flexible leverage, fast execution, competitive spreads, and excellent customer service. They execute a trade every 4 seconds on average with daily transactions totaling over 15,000. Their dedicated support team who readily assists customers in their inquiries and proper solutions to technical issues has earned them awards for their friendly, efficient, and multi-lingual customer service.
Pepperstone is one of the few brokers that offer CFDs. It is an offshore broker established in 2010. It is regulated by two top-tier financial authorities, the UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC). They offer the MetaTrader 4, MetaTrader 5, MT Mobile, and cTrader trading currency top platform. They offer more than 60 currency pairs, cryptocurrencies, CFDs, gold, silver, and other commodities for either personal investment or trading options.
Pepperstone offers good leverage and two account types which offer competitive spreads. This broker provides for copy trading and has been identified to be the best in social copy trading.In addition, Pepperstone also has a range of research tools such as quality content videos to help guide traders who are new to Forex and other research tools for even the expert traders.
Founded in 2007 in Australia, this broker is regulated by the Australian Securities and Investments Commission (ASIC), the Seychelles Financial Services Authority (FSA) and the Cyprus Securities and Exchange Commission (CySEC).
ICmarket.com offers three primary types of trading account, with easy and quick account opening process.
Additionally, ICmarket offers the MT4 and MT5 and cTrader trading platforms. It offers over currency pairs, cryptocurrencies, stocks, futues, gold, silver, commodities and cfds for personal investment or trading options. The broker is designed for both beginners and expert traders. They offer additional trading features such as social trading integration with MYFXbook.
FBS stands for Financial Brokerage services. It is an Asian broker that has its offices around countries in Asia.FBS is regulated by the IFSC in Belize. It also operates in Europe and it is regulated by the Cyprus Securities and Exchange Commission (CySec). FBS is a broker that has received several awards and recognitions for its services. The broker also offers five different accounts that come with unique features and these accounts include Cent, Micro, Standard, Zero Spread, and ECN.
FBS offers 35 major, minor and exotic pairs and over 75 financial CFD instruments. The Cent and Micro accounts are available for beginners and they require a minimum deposit of $1. FBS also gives traders access to a wide range of research and educational tools via articles, Webinars, and TV.
This is a regulated broker that was established in 2010. ThinkMarkets offers the MT4 and MT5 trading currency platforms. They offer over 35 currency pairs, gold, silver, shares, commodities, indices, CFDs, and cryptocurrencies for personal investment and trading options. Similarly, ThinkMarkets offers competitive conditions of trading, fast execution, scalping, and hedging.
ThinkMarkets is regulated by FSP (Financial Services Providers) as well as the FSCLP(Financial Complaints Limited). Thus, they provide a secure trading opportunity to numerous traders all over the world.
This is a global broker that offers to trade in Forex, shares, indices, and commodities. The broker is an online trading brokerage based in the UK but has offices in other regions of the world. It is a No Dealing Desk Execution (NDD) model and it offers trading in a variety of instruments coupled with an easy trading experience.
Equity offers two types of accounts with a demo account available on each of the account types. They also give maximum leverage of 1:500 as well as charge a minimum deposit fee of $500. This broker offers over 60 forex currency pairs, shares, indices, commodities, oil, gold, and CFDs for personal investment and trading options.
Hycm which stands for Henyep Capital markets was established in 1977. It is regulated by the Financial Conduct Authority (FCA) in the UK, The Cayman Islands Monetary Authority (CIMA) and Dubai Financial Services Authority (DFSA). Hycm offers a total of about 347 tradable markets and the available markets vary according to account type. The broker also provides over 60 cryptocurrency CFD pairs. Hycm.com offers three account types which are Fixed, Raw, and Classic accounts.
This broker was founded in 2010 and is well known for having superb customer service which has made it receive numerous awards. Hotforex.com is regulated by St Vincent & the Grenadines regulatory authority, CySec in Cyprus as well as the FSC of the Republic of Mauritius.
Hotforex offers maximum leverage of 1:1000 and requires a minimum deposit of $5. It also has six different account types available for traders and pricing varies from one account type to the other. Hotforex offers over 45 currency pairs, cryptocurrencies including bitcoin, shares, bonds, indices, gold, silver, energies, commodities, and CFDs which are available on the MT4 and MT5 trading platforms.
For Forex beginners who are just starting their Forex journey, one of the factors to ensure a smooth Forex trading experience is choosing the right Forex broker. It is important among many other factors to consider the reputation of the broker, as most Forex brokers thrive on reputation.