It will be great if you have chance to trade with the perfect forex brokers for beginners. Forex trading is very complicated. You need a suitable broker to teach you a lot. And you have to try your best. This means you are really serious about your trading career. Sometimes, in your trading path, you’ll have to change many brokers. For each stage of trading path, there is only one type of broker suitable for you!
From my experience and research, I believe that here is list of best forex brokers for beginners.
- Standards of the perfect brokers for beginners
For beginners, their targets for this stage are learning and minimizing their losses, so the standards for the perfect brokers are different from others. Here are some of them:
– Low deposit requirements.
– Small trading lot requirements.
– Easy to trade with.
– Good local support.
– Reliable brokers.
– Good training and coaching programs.
At the first stage, beginners just deposit a small fund to trade, so most of the brokers don’t want to cheat them. They just want to improve and develop beginners’ skills. They will give beginners the best trading forex conditions. You should deposit less than $100 for this stage (3 months), because you only trade a little amount of money, so you also don’t need to care about the trading cost.
Why small trading lot is the most important?
The negative fact that 95% beginners will lose at first. But you shouldn’t give it up. In the beginning, you should open positions as small as possible. The standard lot is 100,000 USD. It’s too much, but some brokers have Micro accounts which you can open positions as small as 0.00001 Lot USD such as XM. Exness and FBS also have Cent accounts whose minimum lot trade is only 0.0001 Lot USD.
When you trade with Micro and Cent accounts, you only have to deposit $10 for a whole month of practicing, and you also can withdraw your winning money. Moreover, for these accounts, there are no minimum deposit requirements, so, you can deposit any money you want.
Why “Easy” is important for beginners?
Forex itself is a complicated system. It’s important to simplify everything for beginners. To have the best ways, I strongly advise you to follow some steps:
– Choose the easiest brokers.
– Trade by web trade/web terminal in the beginning. Trade MT4/MT5 later.
– Deposit by Visa/Master in the beginning, because it’s much easier than other payment methods.
Beginners need good local support brokers
A lot of problems will arise when you’re in forex trading. For beginners, everything is new and strange, so they need to help a lot, especially in native languages. If a broker supports them with native language immediately, it’s a wonderful broker.
It’s very vital to trade with a reliable broker, but for beginners, they only deposit ten dollars at first, so there aren’t any brokers that want to cheat them, so they can trade with any brokers as long as they are convenient and simple.
When you have enough experience and knowledge, you’ll want to invest bigger amount of money. Then, let’s change to other reliable brokers.
Good training and coaching programs
It’s good if the training programs are held weekly or monthly for beginners. Some of them will ask you to deposit big amount of money, but don’t pay any money for them if they aren’t in the list of trusted forex brokers 2018.
You can register account, deposit a little money, learn and then change to better brokers after finishing the courses.
- Wrong knowledge about the perfect brokers for beginners
It’s hard to have an exact definition of “the best broker”. There is only “the most suitable broker”. If you want to have a suitable broker, it will depend your trading strategies, experience, or trading conditions… Always keep in mind that 95% beginners will lose, so your target for this stage is learning and minimizing your loss.
- Beginners’ misunderstandings
It’s wrong to think that forex demo account is the best for beginners. In fact, Demo account won’t work for beginners and it even has a lot of negative effects. My experience and research tell me that:
ECN account is the best account for experts. If you are a beginner, please pay no attention to ECN, because ECN is very volatile. There are a lot of slippages and gaps.
95% beginners will lose money, so don’t invest too much at the early stage. You can get 50% – 100% profit. You can win even up to 10,000%, but 99.9999999% but you will lose all later. The ideal profit rate for this stage is 3 to 5% every month.
- List of 3 best forex brokers for beginners
XM and Exness are in the top of biggest forex brokers, so they are trusted brokers. XM is a little bit better because XM allows you to open smaller positions (0.00001 lot USD). A lot of training programs are officially held.
Exness is the biggest retail forex broker. They have Cent account which you can open as small position as 0.0001 USD. They have the good support and payment systems.
FBS also has Cent account. Their support and payment systems are very good, but they only offer good services in countries where they have offices. Most of them are South East Asian countries such as: Indonesia, Thailand, and Vietnam.
- Some useful advice for Beginners
– Trade Micro/Cent account.
– Don’t deposit more than $100 for the first month.
– Learn risk management with care.
If you are asked to deposit tens of thousands of dollars and are promised a high rate of profit. Never believe in that. It’s easy to get that profit rate but the higher the profit, the higher the risk. You can win some months, or even some years, but in the end, you will lose everything.
It’s wrong to use robot trading. If you are sold a robot trading and are promised a profit rate of hundreds % a month. It must be a trap. Robot trading is only good for experts, because they will customize these robots to follow their strategies, and they have to adjust them frequently and logically. For beginners, it’s smart to trade manually until you recognize that you need some automatic tools to support your trading strategies.