HOW TO CHOOSE THE PERFECT FOREX BROKERS FOR BEGINNERS?
Lots of newcomers have begun with the largest brokers and loss, most of them soon leave the currency market concluding that the foreign exchange world does not suit them. The best forex brokers for beginners are different from those for the experts, and the largest is not always the best option. There is a gap in knowledge and experience between new traders and the veteran, and such big brokers usually fit the professional and experts only.
Fortunately, multiple beginners did keep a firm grip on the situation, they accept the failure, research deep down further, and decide to change. In the world of forex, there is no exact definition of ‘the best’, you can only try the most suitable after a careful research, then practice, gain experience, figure out your strategy then win, or loss. This article is to give what beginners need to choose their best options. There are also recommendations and examples, from which you could understand, which makes things easier for a practical research.
Key components to find suitable brokers
For the purpose of practicing, minimizing losses and risk management are the most important for the all novice traders as the first step, which goes through all the sections as the key components.
The Cent Account is suitable to practice with good trading conditions: more stable spreads and swaps, no minimum deposit with free transactions, and a small number of trading lot requirements. Exness and FBS are two large brokers which offer the Cent Account, which is normally supported by small brokers. XM also has Micro Account with similar conditions. New traders can open as small as 1/100000 Lot USD with XM Micro Account or 1/10000 Lot USD with Exness and FBS Cent Account, where you can practice for a whole month with one $10 bill.
In addition, large brokers regularly offer only 2-3 accounts – Classic and ECN, and another Demo Account for practice. The Demo Account is another choice with demo money for practice. However, no pressure in forex trading usually leads to overconfidence and subjectiveness of newcomers. Besides, the other accounts demand a large amount of minimum deposit, and ECN accounts go with an especially high volatile exchange rate. The condition attracts professionals and experts but not new forex traders who need to form strong disciplines at the early stage. Thus, we strongly recommend Cent or Micro Accounts as best options for newcomers.
The reliability should be mentioned first, the experts’ concern is about the trustworthiness, regulation, finance report, and then the trading condition. Fortunately, as fresh traders who pay just $10 expense for ordinary practicing accounts, no brokers want to cheat you with a little deposit.
Regarding reliability, there are scam brokers besides the reliable ones. The reliable has the regulations with a long and clean history, which you can easily reach out on the internet. By contrast, the scam brokers, not easy to recognize in little time, normally cheat inexperienced traders by offering sounds Bonuses. There are no actual free bonuses, you have to deposit or open several trading positions as withdraw requirements.
Trading with reliable brokers could be a little bit harder at the start, but much easier later. Years of operations and standard finance report is worth trading with, when you are strong enough and ready for larger investment, try with them.
As the forex market grows, new traders appear every day, they seek lots of information with the immediate technical support. In the currency market of complex, hours of reading, question and answer on the internet would be tough and annoyed because of the language barrier. Many have given up for no language help which is now the competitive support between large brokers.
The regional support system is convenient for the direct services, and normally comes up with the local payment system which encourages traders to withdraw money in truth. Moreover, you can other traders at the local offices, where you can share and discuss face-to-face. It is more interesting than typing and reading on the computer screen all day.
Training or Education System
Strong brokers arrange proper training courses, from basic to advance, to support traders and keep them on sight. As mentioned earlier, disciplines are critical for all traders, and you could not do that without good learning materials. Many brokers require a considerable deposit for their training programs, yet there are also the training materials which are completely free, just register and verify then you can get the access. Emotional traders waste their money because of senseless reasons, don’t follow them.
Additionally, traders need the trading platform to proceed with exchanging currency. Different brokers provide different trading platforms, and the tutorial is significant getting used to various charts and graphs for beginners. Forex.com has strong e-learning system with various trading software created by many third-party companies – a large self-studying environment. Despite, choosing a simple platform to start with is more a prior for new forex traders. Our recommendation: web terminal, using credit for payment at the beginning for the simplistic and fit.
Note: Check the list of trusted forex brokers 2018 for free training system.
Practice risk management
Learn how to read the financial report as soon as you can, the outcome avails you more than words. In terms of business, understand commercial data will improve your ability to read the currency movement and understand most businesses financial status. It is fundamental for this stage of training risk management.
Avoid Demo Contest
Demo contests focus on virtual profit and taking gambles, which is more like for professionals to have fun than for new traders to practice. Research shows that most winners are Chinese, Thai, and Indonesian professionals who use trading robots. The profit rate could be over 10000%, don’t race with them.
No Trading Robot
Trading robots are useful for experts with deep knowledge and flexible trading plans. They can adjust the robot settings to match the game. No trading robot can win unendingly. Starters should start manually with basic tools and platforms to understand the forex market at the early stage, then risky later.
The list of best forex brokers for beginners
XM: Strong e-learning system with numerous international live seminars. Competitive Commissions and Fees, high spread on Micro and Standard accounts. Lots of Bonus and Promotion. Strong customer services with multiple-language online support 24/7.
Exness.com: Strong with updated news and analytic review, updated ‘library’ with basic learning content. Multi-language Website with a colorful and engaging user interface. 24/7 online support with a wide system of branch offices. Various account types with free transactions, a super low price for a trading lot.
FBS.com: Various options on accounts. Chat supports is available 24/7. Good Demo and Cent Accounts.