After carefully researching about forex trading, you may realize that ECN brokers aren’t suitable for a beginner like you. It is time you started your trading career. If you are searching for perfect forex brokers for beginners, you are on right track. For each stage of trading path, there is only one type of broker that is suitable for you.
Here is list of best forex brokers for beginners.
XM reviews: 9/10
Exness reviews : 9/10
FBS reviews: 8/10
- Beginners’ misconceptions:
Firstly, even though most beginners believe that they should start their forex trading career with demo account, actually, demo account will not bring benefit to the beginners. As I’ve explained in the previous article, Cent account is the perfect choice for the beginners.
Secondly, if you are beginners, you shouldn’t trade with ECN brokers because ECN is very volatile and only suitable for experts. The beginners shouldn’t invest too much at early stage, because 95% of them are highly likely to lose money due to various slippages and gaps. Although there are many traders who can win even up to 10,000%, the fact is 99, 999999% of them will lose all money later. I used to work for a big broker so I can ensure that this data is trusted. The ideal profit rate that beginners should keep is about 3 to 5% monthly instead of over 10%.
Thirdly, the beginners are totally wrong to open positions within the news release time. In fact, all experts will close/open positions about 15 minutes before/after the release time.
- Misunderstandings about the perfect brokers for beginners
Most beginners will chose the best forex brokers to start their forex trading career. However, in the forex world, you should chose the brokers which are most suitable with your trading strategies, your experiences and trading conditions in your country. Your target at early stage is to learn and minimize your loss.
- Standards that the perfect brokers for beginners must have:
If you are beginners, you should do business with the brokers that satisfy all following criteria:
– Low deposit requirements.
– Small trading lot requirements.
– Good local support.
– Trusted brokers.
– Good training and coaching programs.
Unlike experts who carefully pay attention to broker’s credit, trading cost and brokers’ quotes quality, the beginners don’t 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?
I am sorry to repeat the negative fact that “95% beginners will lose” so many times, because I hope it will keep your feet on the ground. At the beginning, you should open positions as small as possible. The standard lot is $100,000 which is huge amount of money. However, you still can open positions as small as 0.00001 Lot USD with Micro account or 0.0001 Lot USD with Cent accounts. There are some brokers such as XM, Exness and FBS which offer Micro account and Cent account.
When you trade with Micro and Cent accounts, you only have to deposit $10 for a whole month of practicing. Besides, you also can withdraw your win money. Moreover, these accounts don’t require minimum deposit, so you can deposit whatever amount you want.
Why “Easiness” is important for beginners?
Forex trading system is quite complicated. Therefore, the good strategy can help beginner simplify everything. However, trading systems of some brokers are very complex, so my advice for Beginners are:
– 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, I also got some stupid problems such as: login, installing MT4, 3D security of Credit Card….I think you might get the same problems, so it’s much easier and faster if your supporters can speak your language.
For experts, reliability of the brokers are the most important, but for beginners, it ranks at that fifth position. Although, we always must trade with trusted brokers only, the beginners can trade with any brokers as long as they are convenient for those traders. The beginners only deposit ten dollars top, so they are worried about being cheated by any brokers.
When you have enough experiences and knowledge, you’ll want to invest bigger amount of money. Then, it is time you did business with other reliable brokers.
Good training and coaching programs
The best forex brokers for beginners provide weekly or monthly training program to their clients. These brokers are the best for the beginners. Most of these brokers will ask you to deposit big amount of money, but don’t do that if they aren’t in the list of trusted forex brokers 2018.
You can register 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 is a little bit better because XM allow you to open smaller positions (0.00001 lot USD). They also have 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 countries where they have offices. Most of them are South East Asian countries such as: Indonesia, Thailand, and Vietnam.
- Should beginners join demo contest for practicing?
Most of us think that Demo contests will help beginners practice trading, but all the demo contest winners are professional traders. I did a research about demo contest winners and I found out that most of the winners are Chinese, Thai and Indonesian. Their profitable rate are over 10,000%. That means 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. It may even affect to your trading strategy, because demo contest trading strategy which is focusing on profit and ignoring risks, is opposite to the normal trading strategy.
- Should beginners get welcome bonus?
If your brokers offer welcome bonus, it’s good, but if your brokers don’t offer that, it’s still good, because most welcome bonuses are not easy to get even when you win. 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. These conditions often lead to your loss.
- 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. Base on my experiences gained when working for a big broker, I share with you that 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 will customize these robots to follow their trading strategies, and they have to adjust them frequently. 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.
For readers in Thailand, this is ฟอเร็กซ์ โบรกเกอร์.