Forex Brokers for Beginners
МТ4 iPhone, МТ4 Android , МТ4 Windows Mobile, WebTrader, MetaTrader 4 (MT4), MetaTrader 5 (MT5)Open account
Demo accounts (with a time limit), Standard Accounts, Swap free accounts, Micro accounts
ASIC (Australia) license №443670 IFSC (Belize) license №000261/158 CySEC (Cyprus) license №120/10Open account
Metatrader 4/5, AvaTradeGo, AvaOptionsOpen account
Demo accounts (with a time limit), Standard Accounts, Segregated accounts
ASIC (Australia) license №No.406684, CBI (Ireland) license №No.C53877, FSA (Japan) license №No.1662, FFAJ (Japan) license №No.1574, ISA (Israel) license №514666577, FSCA (South Africa) №45984, B.V.I. FSC № SIBA/L/13/1049Open account
MetaTrader 4, MetaTrader 5, Ctrader, R trader, WebtraderOpen account
Unlimited Demo Accounts, Standard Accounts, ECN accounts, STP accounts, Cent accounts, Swap free accounts, VIP accounts, Micro accounts, Segregated accounts
RoboForex Ltd has a special brokerage license IFSC Belize "Trading in financial and commodity-based derivative instruments and other securities" under the number 000138/210.Open account
MetaTrader 4, MetaTrader 5, Meta Trader 4 Mobile, MetaTrader 5 Mobile, MetaTrader 4 MultiTerminalOpen account
Unlimited Demo Accounts, Standard Accounts, ECN accounts, Cent accounts, VIP accounts
IFSC (Belize) license №IFSC/60/301/TS/17 NAFD (Russia) FSA (Saint Vincent and the Grenadines) license №20389 IBC 2012 AFD (Russia)Open account
MetaTrader 4, MetaTrader 5, Meta Trader 4 Mobile, MetaTrader 5 Mobile, MetaTrader 4 MultiTerminal, Web Tarder, TickTraderOpen account
Unlimited Demo Accounts, Standard Accounts, Cent accounts, Swap free accounts, Segregated accounts
BVI FSC, License Number SIBA/L/14/1082, FSC Saint Vincent, Reg. Number IBC22945, Saint Vincent, IBC24321Open account
MetaTrader 4, MetaTrader 5, Meta Trader 4 Mobile, MetaTrader 5 MobileOpen account
Unlimited Demo Accounts, Standard Accounts, ECN accounts, Swap free accounts, VIP accounts
Services Authority of Saint Vincent and the Grenadines registered number 20623 IBC 2012Open account
MetaTrader 4, MetaTrader 5, cTraderOpen account
Demo accounts (with a time limit), Standard Accounts, ECN accounts, STP accounts, Cent accounts, Swap free accounts, Segregated accounts
Financial Services Commission (FSC) BVI, license registration number: SIBA/L/13/1063Open account
MetaTrader 4, MetaTrader 5, MetaTrader 4 mobile, MetaTrader 5 mobile, WebTraderOpen account
Demo accounts (with a time limit), Standard Accounts, Swap free accounts, VIP accounts, Segregated accounts
FCA - 186171; CYSEC - № 259/14; CIMA - 1442313. DFCA - F000048; Saint Vincent and the Grenadines - 25228 (IBC 2018)Open account
МТ4 iPhone, МТ4 Android, МТ4 Windows Mobile, WebTrader, MetaTrader 4 (MT4), MetaTrader 5 (MT5), МТ5 iPhone, МТ5 Android, МТ5 Windows MobileOpen account
Unlimited Demo accounts, Standard accounts, ECN accounts, Cent accounts, Free swap accounts, Micro accounts
CySec - 185/12, FSCA - FSP: 46614, FCA - 600475Open account
MetaTrader 4, MetaTrader 5Open account
Demo accounts (with a time limit), Standard Accounts, ECN accounts, Cent accounts, Swap free accounts, Micro accounts, Segregated accounts
FSA - SD025, CBCS - 0003LSI, FSC - SIBA/L/20/1133, FSC - GB20025294, FSCA - 51024, CySEC - 178/12, FCA - 730729Open account
Ever visualized a person going to sell a load of money at the market? You are not alone. The forex market is complex as it is risky, especially when you are a newbie. Forex exchange markets facilitate the buying and selling of foreign currency with no physical buildings, of course. Foreign Exchange markets, often denoted as Forex or FX, are markets for trading foreign currencies.
There are incomprehensible terms that would scare and put you off. What of terms like spot, lots, pips, spreads, leverage, Forex charts, and many more. As a beginner, you need to learn first the tricks and survival tactics of this venture. Forex trading is an area that requires emotional alignment, preparedness, focus, courage, and drive.
The following steps are necessary to kick-start your forex journey:
Forex requires specialized knowledge about the operation of forex charts and price movements. Several online courses teach one on the intrigue of forex trade. It is significant to understand the basics of forex before investing your money.
Research through the available online courses and get the best practices. Use demo accounts to get accustomed where possible. The demo account gives you a real-life feel of the trading platform. You can copy trade by imitating the tactics of experienced traders.
The challenge lies in identifying a qualified and genuine online trainer as you will find all manner of training offers from individuals out you cash in on your naivety.
2. Opening an Account With an Online Broker
After getting all the information n forex through learning, it is time to test the waters. Here is where you put to test your judgmental skills while staying alert for any eventualities. Always be on the lookout for tricks employed by fraudsters.
Checklist Before Opening an Online Brokerage Account
There are a host of brokers in the online market. It is difficult to get one that meets your needs if you do not know what to look for. To get the best brokers in the market, look at reviews from credible sources or websites.
- Ensure that the broker is certified and approved by regulatory authorities. Different jurisdictions have their regulatory bodies that oversee the activities of brokers in the forex markets; for example, in the USA, the Securities and Exchange Commission (SEC), together with Financial Industry Regulatory Authority (FINRA), regulates free trade and brokerage. Similarly, Financial Conduct Authority (FCA) is the regulating body in the UK.
- Safe and Secure Website: The broker must guarantee the safety of hour information, and the system is secure to prevent third-party aggression.
- Confirm that the broker is fully insured and deals with credible financial institutions.
- That the broker has mechanisms in place that protect clients’ funds in case of bankruptcy or insolvency.
- That the broker has 24-hour customer support.
- That the broker executes withdrawals and deposits within three working days.
Choosing the Right Forex Broker
Now that you have some little background and an online account, it’s time to get into some action. Like in any online business, scammers abound in this trade and choosing a trustworthy partner often poses a ton of challenges. The existence of a myriad of brokers with appealing offers adds a pile to the many challenges.
Below are the characteristics that define the best broker for beginners:
1. Trustworthy and Reliable
By opening a brokerage account on a particular platform, you bestow your trust in the broker that your money will be safe in their hands. It is fundamental to cash on the reliability and the track record of the broker. Unfortunately, you do not have the proper tools and expertise to review and determine the best forex brokers for beginners.
Nevertheless, our reviews ensure the forex-brokers for beginners that we recommend are registered with relevant authorities in their domicile localities. Naturally, you would need independent confirmation and verification to aid your decision-making making.
2. Initial Capital Requirements
An initial deposit requirement is meant to start you off and build your confidence in your journey. A serious broker would start you off with a high capital requirement to absorb volatility and maintain your trading continuity. High capitalization protects your account from being wiped out by fluctuations.
However, some brokers offer the lowest capitalization requirements and attract your interest because you want to start small. While the move is good because you are still testing waters, it has demerits because small amounts may not manage to withstand fluctuations.
But how does this help in identifying an experienced forex broker? The answer is obvious, the scammer does not care about your account but only entices you for any amount. A reliable broker takes care of your interests.
Spreads are ways through which brokers earn for their troubles, and the amount is payable whether you make profits or losses. A reliable broker does not widen the bid-ask spread but a spread that benefits you.
4. Ease of Transacting
A broker account allows for the withdrawal of your money and profits at any given time. Similarly, you can deposit funds and build your capital. It is the work of the broker to provide a seamless platform for the performance of these tasks.
In addition, the broker should facilitate your refunds and all the profits made in case you want to terminate the relationship. In this scenario, the broker is the custodian of your funds, and when it comes to withdrawals, a deposit of funds, and termination, the broker should ensure a smooth closure.
5. Leverage Ratios
Important aspects that should define your choice of a broker are the margins and leverage being applied. As a beginner, you would want low leverage as you learn the trade and begin to build confidence. Furthermore, the broker ought to gradually increase leverage as profits begin to manifest.
On the other hand, experienced traders leverage high based on their track records and experience. However, leverage is not the only determinant, as many tools are available in the market.
6. Trading Platform
Online trading platforms are the vehicles through which you can use to trade and store value for your investments. As such, you should ensure that the trading platform you are using is safe from human interference and manipulation.
The platform you choose must offer several options, tools, and indicators so that you can monitor its activities in real-time. Choose an easy-to-use platform that is reliable and free from connection problems. All the information you gathered during the demo trading should guide you in choosing a reliable provider.
7. Customer Experience
The core functions of a system cannot function well without adding the human face to it. At times software crashes, or you may experience delays with deposits and withdrawals. Here is when you seek the services of the customer personnel.
Before settling for a particular broker, it is prudent to appraise their reviews on customer experience. You will find valuable information from industry reviews, websites, or the media. A brokerage with bad reviews and many complaints is a red flag.
While on the facet of customer experience, the customer service personnel should be well versed in trading and sharp in market analysis. As a beginner, the customer service department would be resourceful to your many inquiries as you are going to rely on their expertise in your decisions.
Pour reviews on the best broker for beginners comes in handy to aid in the search for competent partners with great customer delight.
8. Brokerage Account
It is paramount that you carefully study the account package options offered by the broker. Some brokers offer several account options with unique features, while others provide one account with tailored features.
Whichever option you choose is not significant so long as it is flexible and can be tailored to suit your needs and levels of experience.
A good brokerage platform enables access to varieties of tradable currencies across the world. It offers you the opportunity to trade with currencies from the emerging to the established economies.
10. Buyer Beware
Forex trade demands greater focus and a sharp mind. There is no formula to smoke out the fraudsters who thrive on online scams. In a nutshell, it won’t hurt to instinctively take extra precautions no matter the amount of training you have gone through.
It is advisable to work only with licensed firms and get assurance that you are covered in case of the misdeeds of a broker. Your trading account can also be a subject of manipulation if you fail to beef up extra security. The use of two-factor authentications can help you secure your account and prevent fraudsters.
Our review is not complete without the mention of the regulating authorities that help you identify the genuineness of a broker, although they vary depending on your country and locality.
In the UK, forex brokers are regulated by the Financial Services Authority (FSA). FSA supervised and guarantees the security of investor funds should the broker become bankrupt.
The CFTC and NFA regulate forex brokers in the United States, while the Australian Securities and Investment Commission (ASIC) regulates forex trading in Australia.
Swiss Federal Banking Commission(SFBC) of Switzerland regulates the forex industry.
Your Final Submission
As a newbie to forex trade, you need to learn the tricks and survival tactics of the trade. Forex trading is an area that requires emotional alignment, preparedness, focus, courage, and drive. It is a risky venture with many players capitalizing on your naivety.
In this review, we have touched on the important aspects of choosing a broker and their characteristics. However, you will encounter challenges and tricks of fraudsters lurking around to defraud newcomers.
Our review touches on the important aspects of the trading structure, but the ultimate decision of whether to invest boils down to your risk appetite and leverage.