After thoroughly researching into forex trading, you will realize that ECN brokers aren’t suitable for a beginner like you. There is only one type of broker that is suitable for you on each stage of trading paths.
Here is list of best forex brokers for beginners.
- The beginners’ fallacy:
Firstly, even though most beginners believe that demo account is perfect choice for them, actually, demo account will not bring benefits to the beginners. In the previous article, I have explained why the beginners should open Cent accounts to start their forex trading career.
Secondly, ECN is very volatile, so it is not suitable for the beginners. There is a startling fact that 95% of the beginners will lose money due to various slippages and gaps. Therefore, they shouldn’t invest too much at early stage. The ideal profit rate that beginners should keep is about 3 to 5% monthly instead of over 10%.
Thirdly, the beginners shouldn’t open positions within the news release time. In fact, 15 minutes before/after the release time is perfect time to open positions.
- The beginners’ misconceptions about the perfect brokers:
Most beginners want to trade with best forex brokers, but they should choose the brokers which are most suitable with their trading strategies, experiences and trading conditions in their country. Their target at early stage is to learn and minimize loss.
- The standards of perfect forex brokers for beginners:
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.
The beginners don’t have to care much about trading cost because they only trade with little money. 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 open positions as small as possible. The standard lot is $100,000 which is huge amount of money for the beginners. However, you still 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. You can find Micro account and Cent account at XM, Exness and FBS.
Why “Simple trading system” is important for beginners?
Forex trading system is quite complicated, so the beginner should trade with the brokers 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. At the beginning, you may got some stupid problems such as: login, installing MT4, 3D security of Credit Card… It is important that your supporters can explain the problem to you in your mother tongue.
Although forex traders must 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, you can invest bigger amount of money and do business with other reliable brokers.
Good training and coaching programs
Some brokers will offer weekly or monthly training program to their clients. These brokers are the best for the beginners. You can register an account to learn about forex trading and then change to better brokers after the training courses.
- List of 3 best forex brokers for beginners
XM and Exness are the top biggest forex brokers, so they are trusted brokers. XM can provide you with 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. Their advantages are the support and payment systems.
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.
- Why the beginners should not join demo contest?
According to the research I have done, all the demo contest winners are professional Chinese, Thai and Indonesian traders. Their profitable rates are over 10,000 because most of them are using robot trading to win demo contests.
Obviously, beginners cannot get high profit rate like these winners, so you had better not dream of winning demo contests. They’ll just waste your time. 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.
- Should beginners get welcome bonus?
It’s easy to register welcome bonuses but it’s very difficult to withdraw. If you want to withdraw, you will be required to deposit and trade enough number of Lots by brokers. Sadly, these conditions often make you lose money.
- 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. Don’t be deceived by that promise. 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, because they 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.