To find a best forex brokers is very hard for traders, especially beginners. But finding the perfect forex brokers is much harder. To get the perfect brokers, traders or especially beginners must research much about forex trading and brokers as well. Actually, traders cannot trade with only one broker in their forex path. Depending on their career path, they must change the suitable brokers who are suitable with their trading strategy. In this article, I’ll show you some mistakes and misunderstandings that beginners often cope with and help them understand and find the way to choose the perfect forex brokers.
Below is list of top 3 best forex brokers for beginners (click for details)
XM.com : 9/10
Exness.com : 9/10
FBS.com : 8/10
- Misunderstandings of beginners:
Many people misunderstand the definition of words “best” and “perfect” here, there is no exact definition of them. We just understand that the best forex broker here is the most suitable one for each trader depending on their trading strategy and conditions. Moreover, beginners also have some wrong thinking about forex demo account, good profit rate and news release time
- Forex demo account: Many people think that demo account is very good for beginners but it is completely opposite. Demo accounts is offered by brokers to attract more customer. So they often give easy trading conditions to let traders win the trading while real accounts have harder conditions so beginners must waste of time learn real trading conditions after experiencing demo account. Moreover, beginners also should stay away from ECN account because this kind of account which includes many slippages and gaps is just for experts only.
- High profit rate: the profit rate of 50 – 100% is very risky. Many traders absolutely win their trading but 99.9999% of them will lose later. My recommendation is that traders should keep the profit rate under 10% _ 3 to 5% monthly.
- Time of opening/ closing positions: according to expert’s opinion, beginners should not open positions within news release time, it is much better to open/close positions about 15 minutes before/ after the release time.
- Standards of perfect brokers for beginners:
Beginners just start their trading with small funds so they don’t care about trading cost as well. The most important things that they should focus in this stage are learning and minimizing their losses. Below are criteria that beginners should consider to choose a perfect broker:
- Low deposit requirement: Different from experts who care much about trading cost, brokers’ credit, quotes quality, trading beginners invest a small fund so they just want to find a broker who allows them to deposit as low as possible to avoid the big losses. I recommend that beginners should deposit less than $100 for this stage (within 3 months).
- Small trading lot: To follow the risk management, beginners should open positions as small as possible to avoid some losses at the beginning point. Many brokers offer Cent and Micro accounts for beginners’ practices. With these accounts, beginners just spend $10 to open orders within 1 – 3 months, there is no minimum deposit requirements as well. Moreover, beginners can withdraw that money if they win trading.
- XM offers Micro accounts which you can open positions as small as 0.00001 Lot USD.
- Exness and FBS also offer Cent accounts whose minimum lot trade is only 0.0001 Lot USD.
- Easy: As you know that forex market and the trading system are very complicated. Therefore the best strategy for beginner is to simplify everything. Below are my advices for you to proceed it:
- 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 is much easier than other payment methods.
- Good local support: Some brokers has many customers from many countries in the world so they often have local offices at these countries to quickly support their clients. Moreover, they also have some local support with native languages, which is more convenient for traders in login, installing MT4, 3D security of Credit Card.
- Trusted brokers: To experts with a large funds, they often care much about trusted brokers however beginners only invest small amount of money so they don’t care much about trusted brokers. They are able to trade with any brokers as long as they are easy and convenient for those traders. Until beginners have enough experience, knowledge and qualification, they will invest more money with another reliable broker.
- Good training and coaching programs: Many brokers have some training and coaching courses for beginners to attract more customers but after that they ask beginners to invest a large amount of money. So I recommend that they should create account to learn and practice first, then after the courses ended, beginners should stop to change to a better broker.
- Whether demo contest and welcome bonus is good for beginners?
Most of traders think that demo contests are organized for beginners but the real situation is opposite. Most of demo contest winner are experts from China, Thailand and Indonesia. The reason is that experts use robot trading to win demo contest. So beginners don’t have high chance to win this so don’t waste of your time to participate in these contests.
In addition, welcome bonus is also beginners’ concern. Actually welcome bonus does not affect much on beginners because this bonus is very little and there are hard conditions to withdraw this money. Brokers often ask traders to complete enough number of Lots to withdraw bonus, which leads to losses.
- Top 3 best forex brokers for beginners:
XM.com : 9/10
Exness.com : 8.5/10
FBS.com : 8/10
XM and Exness are in 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 offer Cent account with which you can open as small position as 0.0001 USD. They have good support and best payment systems as well.
FBS also has Cent account. Their support and payment systems are very good, but they offer good services in countries where they have offices only. Most of them are South East Asian countries such as: Indonesia, Thailand, and Vietnam.
- Helpful advices for beginners:
- Trade with Micro/ Cent account to avoid big loss.
- Don’t deposit more than $100 for the first month.
- Learn and follow risk management.
- Don’t believe in high percentage of profit. The higher the profit, the higher the risk.
- Don’t use robot trading from experts. Because these robot is set up with experts’ trading strategy and must be adjusted frequently. So robot trading is not suitable with beginners’ trading.