Best Forex Broker for Beginners

If you’re new to foreign currency trading, it may seem like a daunting task to find the best forex broker for beginners. But trading in the international currency market does not need to be that complicated—especially for beginners. 

These days numerous forex brokers allow you to trade currency with nothing more than a computer, internet connection, and an account. This makes it easy for beginners to get started. Before you begin trading, though, be sure to thoroughly research the different types of brokerages available. 

List of the 7 Best Forex Broker for Beginners

Plus500

Plus500 is a well-known digital CFD (Contract for Difference) trading system operating under Plus500 Limited, an investment group. The brokerage has been famous among electronic investors as a reputable and trustworthy broker since its establishment in 2008. Plus500 Limited is registered on LSE’s (London Stock Exchange) Main Market. This contributes to the firm’s image for financial stability.

Thanks to its reputation, Plus500 accepts investors from Australia and Europe. The firm is licensed in the United Kingdom, Australia, and Cyprus. As a result, customers may benefit from the protections and advantages of being covered by the Financial Services Compensation Scheme (FSCS). This also includes a rescue fund for traders known as the Investors Compensation Scheme.

Essential financial assets like forex, stocks, metals, and indices are available to traders with a Plus500 subscription. However, it is only possible to trade cryptocurrencies and options according to government regulations unique to a particular location.

Though Plus500 employs a customized trading platform, its Webtrader framework can meet the diverse demands of the broker’s worldwide customer because it is accessible in many versions.

Investors who want to operate the marketplaces using only their cellphones or portable devices can use a digital app of the trading system. The smartphone trading application is available for free installation for iOS and Android OS.

Plus500 accepts credit/debit cards. This may be a Visa or even a MasterCard). Third-party payment channels like PayPal and Skrill (Moneybookers) can also be used for funding and payouts. 

Deposits, as well as withdrawals, may both be made using the same ways. The waiting period for withdrawals is three business days.

Plus500’s customer care is accessible 24 hours a day, seven days a week, but only by emails or online chat. So, although their web page is accessible in 32 countries, there is no cell phone assistance.

Other features of Forex.com include:

• 1,200+ trading instruments.
• Specialized and Unique Plus500 Invest for CFD investors.
• $100 least deposit.
•  Zero commissions and withdrawal fees.

IG

IG Markets is a leading retail FX broker with excellent ratings. The Australian-based broker is one of the major brokerage firms, with licenses in the United Kingdom, South Africa, the United States, Australia, Singapore, UAE, and New Zealand. 

CFD investing is accessible in all countries, but investment in shares is only accessible in Australia and Britain. Spread betting is now available to UK customers.

The variety of investment products offered to IG market maker accounts is one of their most appealing aspects. IG offers one of the broadest selections of investing products among all platforms. IG provides 82 FX pairs and conventional alternatives such as metals, global indices, cryptos, and shares CFDs. Other instruments include unusual options not generally given by brokerages, such as treasuries, bond yields, ETFs, and industries.

Investors may use ProRealTime offered by IG Markets. The unique platform is one of the most powerful trading systems accessible for dedicated investors, in addition to the innovative, customized web-based trading system. 

IG’s software concentrates on reliability, efficiency, and better pricing. US traders are provided with a unique MT4 which comes with 18 add-ons, as well as Autochartist. The company also offers automated trading through MT4 and ProRealTime. Copy-trading functionality is also included in the MetaTrader 4.

There is a $10,000 training account available at IG Markets US. Interestingly, there seems to be no time restriction. Generally, simulated trading is devoid of real-world market knowledge, and using an excessive quantity of it makes it even more artificial.

ACH payments, Bank transfers, and card payments are the only payment methods offered by IG Markets. Of course, these are common means of transaction in the USA. However, many traders may still prefer to use third-party intermediaries. 

Between Monday through Friday, IG Markets (Australia) provides local customer support 24 hours. For traders located outside of Australia, the company can assist them with customer care. IG delivers customer service through the telephone, via email, and also their Twitter handle.

Some of IG Market’s significant benefits are as follows:

• Several trading platforms 
• 80+ currency pairs for trading. 
• Free Personalized IG academy app for new traders.
• $250 minimum deposit

eToro

eToro is a seasoned forex brokerage that began operations in 2007. The Israel-based firm started with the name RetailFX. eToro was one of the first to provide social trading. The headquarters of eToro is in Tel Aviv, a famous city in Israel. 

eToro is also based in the United Kingdom, Australia, and the United States. The Cyprus Securities and Exchange Commission (CySEC) oversees the operations of eToro EU.

The online forex broker has a wide range of assets for beginners. This includes over 2,000 instruments, a vast selection that you won’t find at many other Brokerage firms. eToro serves the Currency market, has expanded into the cryptocurrency markets, and offers commodity variety.

The unique web trader interface that eToro provides investors is something that the company is quite passionate about. On the platform, traders will find eToro’s CopyPortfolios and CopyTrader. These two custom-made features are the company’s primary social trading features.

Investors on eToro can use a variety of funding and withdrawal options. Money transfers and card (credit or debit) payments are two standard modes accepted by eToro. Third-party channels include Neteller, PayPal, Webmoney, Skrill, Yandex, Rapid Transfer, China UnionPay, etc.

The majority of eToro’s help is provided via its Support Site. It has a FAQ page as well as the ability to create a support ticket. Customers may also contact eToro immediately or use the live chat feature, accessible 24 hours a day, five days a week, as is the business norm.

The following are some of the eToro’s key features:

• There are no commissions on investment CFDs.
• The required minimum investment is $50.
• Virtual asset perception predictor based on Twitter
• Functional social trading features.

AvaTrade

AvaTrade is a well-known Currency trading and CFD brokerage firm that was started in 2006. The firm has a long history of being one of the original prominent financial services companies in the consumer Forex/CFD market.

The firm currently has operations from Japan to Australia, Ireland, and even the British Virgin Islands. Traders from other locations in Africa and America also enjoy the services of AvaTrade. The firm is among the most prominent global and most reputable web brokerages, accepting customers from all over the globe and trading assets in several denominations.

AvaTrade offers 55 distinct Fx major, minor, as well as some exotic pairs. There are 17 commodities CFDs, 20 equities, 14 coins, and Financial derivatives on 500 various equity securities available to its clients.

All AvaTrade’s customers employ only the MT4 and MT5 platforms. However, options traders with an Options Account are provided with the Ava Options interface.

MetaTrader 4 is compatible with all operating systems and may be accessed by tablet, smartphone, app, or online. Many customers believe that the applications operate more smoothly on a Computer or laptop than the online version.

AvaTrade provides several deposit alternatives to its customers. Investors can finance their wallets using bank cards like VISA and MasterCard. It is also possible to use bank wire transfers and various e-wallets, including Paypal, Skrill, and NETELLER, to fund an AvaTrade account. Investors can make withdrawals using the same ways they used to deposit them. Requests for leaves may take close to 5 working days to complete.

The company’s customer service desk is operational throughout trading hours on typical weekdays: in other words, if the Fx marketplace is active, so is service’s assistance. Dealers can reach out to personnel in several sectors throughout the globe by email or phone number. There is also an online chat option.

Critical features of AvaTrade include:

• 50+ currency pairs
• Licenses from 5 continents
• A personalized trading academy is known as Sharp Trader.
• $100 minimum initial deposit.

CMC Markets

CMC Markets is a renowned digital financial trading firm that provides spread betting and contract for difference (CFDs) on vital worldwide markets. It now has 80,000 registered customers, hundreds of assets, and a 64.5 million yearly volume of transactions.

The company was established in 1989. Today, CMC is one of the leading forex brokers, with approximately 9,500 CFDs assets ranging from fx to indices, stocks, and virtual currencies. As one of the biggest in the brokerage world, CMC Markets serves investors in the United Kingdom, Australia, Singapore, New Zealand, and Canada.

Clients can use the Mt4 trading platform to carry out trades. However, the company has a personalized platform known as the Next Generation. Australian traders use this platform to buy and sell shares.

The shares-trading platform is the most popular among CFD traders for different reasons. The graphing program (chart forum) is the product’s finest tool, with more than 115 analytical signals, 70 trend analyses, and 12 designed chart styles.

A CMC brokerage firm’s demo account is also available for new users and traders. The majority of platform evaluations for the trial profile are good. About £10,000 in demo currency is available to you.

You can start actual trading by depositing at least $1. Transactions may be made with any significant visa or MasterCard debit card. They allow deposits in ten different currencies. You can also make real-time wire transactions.

Nevertheless, you may well be forced to send over individual ID accurate and timely financial information to comply with international banking legislation. Withdrawal applications will not be handled without these papers.

CMC Markets’ customer support team has been equipped to deal with financial questions and technical difficulties, such as if you’ve misplaced your trade pin. They’ll even guide you in the direction of brokerage firm training and other helpful learning tools. The online chat feature is available both within the software and via the firm’s site.

Other features of CMC Markets include:

• 9500+ financial assets
• $1 least deposit.
• Margin below 3.34%.
• Customized trading platforms on mobile or desktop devices.

XTB

Thanks to its offices in Poland & London, XTB (X-Trade Brokers) is open to all traders in Europe and the UK. The firm started operations in 2004. Today, it is one of Europe’s biggest stock-exchange registered brokers, with offices in 13 countries. This includes Germany, France, and other countries.

The UK FCA (Financial Conduct Authority ) and related laws provide security to clients in the United Kingdom. Business standards require XTB to maintain customer money separate from corporate assets in different accounts.

Contracts for Difference (CFDs) tradable on XTB includes 3900 equities and ETFs. Twenty-two metals, 42 indexes, 25 cryptos, plus 49 forex pairings are available through XTB. In addition, the firm’s commodities offering includes over 7800 cash shares (i.e., these are not leveraged) and 150 ETFs.

XTB utilizes xStation5, a trading platform recognized as a product selection, and has won several accolades for overall trade openness, real-time reportage, implementation speeds, and a comprehensive charting bundle. 

XTB does not impose any deposit requirements. Digital wallets like Paypal and Skrill, on the other hand, charge 2% of the funds deposited.

Several electronic accounts, such as Paypal & Skrill, are allowed for adding funds to trade accounts. Also, official channels used include bank transfers and credit/debit payments. If you demand a withdrawal some minutes before 1 pm (GMT), it will be handled the same day. If you submit your application after 1 pm, it will be dealt with the next working day. Transactions in Pounds, Euros, and HUF are all allowed

Skilled customer care representatives are ready via cellphone, email, and online chat 24/5. Customers are also allocated an investment advisor who will help them deal with all account-related issues.

Here are some key features of XTB:

• Comprehensive education plan.
• Customized xStation 5 platform
• No minimum deposit.
• 2200+ tradable assets

OANDA

OANDA is an innovation-driven financial services company located in the USA. The company was formed in 1996 with the notion that the online world would open up the industry and provide all traders with equal information accessibility and investing.

Being a US-based broker, OANDA is licensed by the US CFTC (Commodity Futures Trading Commission). The brokerage company also has the authorization of regulatory bodies in Canada and the UK. 

Brokerage OANDA is a pioneer in financial data, providing an extensive variety of securities, covering Forex & CFD online trading. Around 100 instruments, featuring currency pairings, indexes, metals, securities and commodities, financial derivatives, and crude oil.

As a cornerstone, OANDA uses a customized platform called Oanda Trade. The platform is categorized as “simple to use operating features” and has earned several accolades and the respect of many top traders.

Mobile Trading Apps, Web Trading, and Desktop Trading are all supported by OANDA’s network, with Web Trading being accessible from any browser. The FxTrade sample account from OANDA may be used as much as a user wants to fine-tune his approach and gain confidence.

Users have virtually all the same capabilities as live customer accounts after receiving your trial login information. Their sample account, financed with simulated funds, is an excellent method to familiarize yourself with market circumstances and evaluate OANDA as a possible broker.

Oanda has no account or deposit fees. In addition, the charge for dormancy is modest. With bank card payments (credit/debit cards), you can remove funds for free. However, bank transfers or PayPal transactions are expensive.

Contacting Oanda’s customer service team is possible through email at any time, except during holiday market hours. Additionally, during trade sessions, live cast chat or phone assistance is accessible. Regarding their mobile number in local areas, go to their leading site.

Other features of OANDA include:

• Easy account opening.
• No minimum deposit is required.
• Regulated from different parts of the world.
• Easy access to historical exchange rates.

What is a Forex Broker for Beginners?

Forex brokers for beginners are tailored to help new traders get ahead in Forex without losing so many funds. In Forex, which includes all foreign exchange trades, the likelihood of loss is high. It is a volatile market and consequently more volatile than stock trading. If you’re new to investing in foreign exchange, it can be not very clear. 

Several brokers offer forex trading, but many have very different ways to access this market. There are some things that every forex trader needs to know to choose the best broker.

What is Forex?

In currency trading, currency pairs include currency symbols from all over the world. US dollar currency is always the currency of the USD, but others include CAD, EUR, JPY, and GBP. 

In Forex, currency pairs are combined to make more complex trades. International factors such as a government’s trade balance have a significant impact on market prices, which can shift based on various currencies, interest rates, and other international matters. 

Backtesting to Find a Forex Broker

Backtesting is one of the most critical aspects of successful investing. It allows you to simulate your proposed market strategy to test your strategy’s accuracy and potential profitability. It differs from forwarding testing because forward testing will enable you to test specific trades that you place in the real world. 

It uses historical data — either specific trade data or historical price data — and then compares this with forward-testing to give you an idea of how accurate this method would be in your actual trading practice. Backtesting and forward testing are used for several different forex trading strategies, especially for automated trading systems.

How to Choose The Best Forex Broker

You can generally tell if a broker is good or not by the fees they charge. Trustworthy brokers will have low commission rates so you can trade more currency with your money.

You should also evaluate how stable the foreign currency market is in general before deciding which platform to trade through. With these tips, you can choose the right broker for your needs and start making money in no time!

1) Look for brokers with low spreads and commissions; trade with them instead of pursuing less competitive brokers.

Before you begin trading, be sure to research the different types of brokerages available thoroughly. You can generally tell if a broker is good or not by the fees they charge. In addition, look for brokers that offer competitive spreads and low commissions. Trusted brokers should have low spreads and transaction costs for currency traders, especially those just starting out.

2) Make sure your broker offers a secure platform

Look for a company that has a good reputation and offers a secure platform for currency trading. Make sure your private information remains safe and secure at all times by choosing a trustworthy brokerage to trade with—a brokerage that offers encryption software and uses SSL technology to keep all personal data protected from others.

3) Look for a broker that offers a variety of currency pairs

If you’re interested in day trading, you’ll need to choose a broker that offers enough currency pairs for you to trade on. However, if you’re simply interested in investing for the long term, then one or two pairs may be enough. To ensure your needs are met, make sure you evaluate how many currency pairs the broker has before signing up.

4) Look for a broker that is regulated

In the US, the Commodity Futures Trading Commission licenses brokerage firms. In addition, many countries have their national futures or exchange regulator. In both scenarios, you need to make sure your selected forex broker is licensed and regulated by the appropriate government agency. 

The CFTC and other regulators lookout for market integrity—the integrity of the market itself—and ensure all financial instruments and trades are legitimate and transparent. The best forex trading platform for beginners should be fully licensed and meet all requirements as governed by local or international regulation and maintain legal compliance as required by law.

5) Look for a broker that offers margin trading options

If you want today trade instead of invest long term, look for a firm that offers margin trading. This allows you to extend your investment capital by using leverage. Using leverage multiplies your potential profit and losses. So, if the currency goes in the direction you want it to, you can make more money than usual. 

When you use leverage, and the right currency pair reverses direction, your account could be wiped out in a matter of minutes or hours—leaving nothing but losses in its wake. The risk of margin trading is high. But, the returns can be even higher if you know what you’re doing.

6) Assess the broker’s customer service options

A trustworthy broker will offer you telephone customer service at all times—24 hours per day—to ensure your needs are always met. You should also choose a company who offers live chat customer support and email access through their website. This gives you several options for contacting customer service representatives, making it easy to solve problems quickly and efficiently without delay or frustration.

Forex Tips for Beginners

Forex has resulted in significant misfortunes for several novice and ill-disciplined investors. You don’t have to be a loser. Use these forex trading guidelines to prevent mistakes and increase their efficiency in the fx market.

Understand your needs and goals

Before you start trading Forex, you should clarify what your needs and goals are. Will you trade short-term or long-term? Do you want to maximize potential gains or minimize potential losses? What do you plan on spending from your investment capital? These are some questions that a successful trader must answer first.

Be realistic

Because you are risking actual money when you enter into forex trades, you should be more conservative than when playing with simulated or “paper” currency trades or gambling at casinos or on sports betting sites. To trade the forex market without risking your hard-earned savings, you should have some funds to cover you for some months.

Limit your losses

There is never a rule that says you must close a trade again. It is okay to close a trade at a loss if it means that you will avoid incurring even more significant losses later on.

Pick a good leverage ratio

The leverage ratio is the amount of money the forex broker will lend you following your deposit. It is generally expressed as a multiple. Choosing the right leverage ratio is important because each trade has typically a fixed stop loss and fixed take profit level—the bigger your leverage, the greater your potential profits but also potential losses. You should choose leverage that will be able to accommodate both your trading goals and risk tolerance.

Never trust guaranteed returns.

No one can guarantee profits because no one can guarantee there won’t be changes in the market. If someone guarantees you’ll make a huge amount of money, chances are it’s either a scam or you are being offered an illegal scheme that is gambling which will never be profitable.

Do not fall prey to emotional trading.

Forex trading has a lot of ups and downs, just like any other form of investing. Do not let your hopes and fears make you make impulsive decisions.

Concentrate on a single currency pair.

Whichever currency you are starting with, it is best that you first concentrate on just one or two pairs of currencies. If you are beginning with the EURUSD, only trade smaller time frames for an easy entry and exit. Some of the forex trading platforms available on the internet will automatically limit your orders based on your account type or leverage ratio.

Understand how to use charts

For some beginners, studying charts can be confusing at first, especially if they are unaware of what they are looking at. Luckily, there are many good resources online that can help beginners learn how to read forex charts correctly or even design their charting system or indicator.

Educate yourself

There are loads of sources of information on forex trading all over the internet. Go through as many as possible before actually investing in Forex to get a clear picture of what it is really about and how to avoid scams and deceitful brokers.

Conclusion

Forex is a highly volatile market and can be very rewarding, but it is not easy to trade successfully. You must choose the best forex broker for beginners before you venture into trading fully. Also, use the right tools and techniques to maximize your profits and minimize your losses. 

You must develop a trading strategy around sound financial theory, employ technical analysis when necessary, and use fundamentals when possible. Understand your risk tolerance and know how much money you can afford to lose. Interestingly, a good forex broker for beginners will provide all you need to succeed.

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