I feel very happy when I heard that some traders are looking for the best brokers for beginners because they don’t find that the best forex brokers are not good enough for them. Like I said a lot of articles before, ECN accounts are not good for new traders. In your trading path, there will be various stages. Each stage inquires the best brokers for you. When you advance to a higher stage, you will need to have a different broker that suits your trading strategies at that stage.
I list down below three best brokers for your reference:
- Beginners’ misunderstandings:
You may have heard people say that the demo account is good for beginners. Actually it is not true. Demo account is not a good idea for beginners. Also, it has a lot of negative effects. In my opinion, Cent account is the most suitable account for new traders.
If you are a beginner in forex trading, don’t think about ECN account due to the fact that it is for experts or professional traders only. ECN accounts have many slippages and gaps. Moreover, you shouldn’t put too much money when you start trading for the first time because only 5% of new traders can keep their money. With many years of working with the top 5 forex brokers in the world and researching their data, most beginners lose their money if they have the profit rate over 10%. They should only have the profit rate from 3% to 5% a month.
All experts don’t often trade within the news release time, but they will close/ open about 15 minutes before/ after the release time. It is also an experience for beginners.
- Wrong knowledge about the perfect brokers for beginners:
When I started my first trading, I traded with best forex brokers, which I thought are the best for me but I lost everything at that time. Then I realize there is no thing “the best”. In the forex market, there is only “the most suitable broker”. So if you want to choose the most suitable brokers, you should have a clear trading strategies, know your situations and your country’s trading conditions. Since you are still a beginner, you must spend time learning as much as possible.
- Standards of the perfect brokers for beginners:
- Low-deposit: not like experts who mind about brokers’ credit, trading cost and brokers’ quotes, beginners only deposit a small number of deposit so there is no brokers wanting to cheat you. Brokers want to have as many traders as possible so they will present the best trading conditions. So I highly recommend you to deposit less than $100 for this stage (3 months) since you just trade a little money so you don’t need to care about the trading cost.
- Small trading lot requirements: As I said before, I lost all of my money at the beginning, so my advice is that you should deposit as little as possible to avoid any big loss. You can find that there are some brokers with Micro accounts or Cent account. With this, you can open positions as small as 0.00001 Lot USD. The ones worth mentioning are XM, Exness and FBS. Moreover, when you trade with Cent and Micro accounts, you only need to deposit $10 for practicing and you can even withdraw the money if you win.
- Easy: The field of forex trading are very difficult. Simplify everything. The below is my advices:
- Choose the easiest brokers.
- Trading by web trade/ web terminal from the start. Trade MT4/MT5 later.
- Deposit or withdraw by Visa/ Master cards because they are simpler than other payment methods.
- Good local-support: Local maintain here means that the follower must use traders’ native language. As you know that beginner would meet some difficulties during process of login, installing MT4, 3D security of Credit Card, etc. The best brokers for beginners should have their support teams using native language of targeted countries.
- Trusted brokers: Experts and professional traders find reliability of the brokers very important. This factor is only ranked fifth for beginners. Beginners only deposit a little amount of money so no brokers want to cheat them. You just need to find brokers that are easy and convenient. When you have gained enough knowledge about forex trading, invest your money to a more reliable broker.
- Good training and coaching programs: There are brokers offering training courses every week or every month. This is very beneficial for beginners.
- Top 3 best forex brokers for beginners:
XM reviews: 9/10
Exness reviews: 8.5/10
FBS reviews: 8/10
XM and Exness are not only two of the largest forex brokers but they are also reliable. XM is actually better than Exness because they can let traders open smaller positions (0.00001 lot USD) and have a lots helpful training courses.
On the other hand, Exness is the biggest retail forex broker yet still have Cent account for new traders like us. You can open positions as small as 0.0001 USD with this account. Exness also have one of the best local support services and payment systems.
FBS also have Cent account. They do have great local customer service and good payment systems too. However, there supported countries are limited to Southeast Asian countries, where they have established local offices such as Indonesia, Thailand and Vietnam.
- Should beginners join demo contest for practicing?
We all assume that demo contest is created for beginners. However, the winners of these competitions are always experts. Most of them used robot to trade in demo contest. Their profitable rate is up to 10,000%. On the contrary, beginners will never have the same profit rate as experts so don’t waste time on demo contests.
- Whether beginners should get welcome bonus?
Welcome bonus is good for all traders but brokers without welcome bonus doesn’t mean they are bad brokers. Some brokers make it very difficult to withdraw the bonus and the profit made from it. Sometimes, the bonus is very little but you have deposit and complete enough number of Lots to withdraw it. And eventually after times, you will lose all.
- Advices for Beginners:
If you are a new trader, you should:
- Trade Micro/ Cent account.
- Don’t deposit more than $100 for the first month.
- Learn risk management.