Each trader must overcome different stages of their career in trading. They are beginners, professionals, and experts. In each of these stages, traders will have to choose different forex brokers because traders will have different targets, strategies as well as ways of thinking. Hence, even the top global brokers may not still the most suitable brokers for beginners. This article aims to review some of the brokers that I think suit beginners the most and some advice for beginners to start their trading careers.
Below is the list of the best brokers for beginners:
- XM: 9/10
- Exness: 8.5/10
- FBS: 8/10
Some notices that beginners should know
Beginners generally believe that the best option is to trade with a demo account, but I think that is wrong because the demo account will not work for beginners and it can even bad for you. For the demo account, brokers will give you better trading conditions that are not even realistic. Even if you win trading with demo accounts, you still don’t gain anything knowledge from it. The real trading conditions are much different.
ECN account is the best choice just for experts. If you are new, then don’t think about trading with the best ECN brokers 2018 because it’s volatile. There are many slippages and gaps. The majority of new traders will lose their investment, so it is better to just invest a small amount of money first.
New traders also think that they should trade when there is news because it will help them win a lot but again, it is wrong. Most the trading experts don’t trade when in the time the news release. They will close and open positions about 15 minutes before and also after the release time.
- Perfect broker’ standards for beginners
As I have just mentioned, beginners should aim for getting as much knowledge as possible along with minimizing their loss, so the best brokers for them should have these standards:
- Good local support
- Small requirements for trading lot
- A low requirement for minimum deposit
For trading experts, they pay a lot of attention to credit of brokers, trading cost and also quotes quality of broker, but it is different for beginners because they only put a small amount of money so brokers don’t really want to cheat them for just small money. In this beginner stage, brokers only want to nurture them with the best trading conditions. I strongly recommend you as new traders to only deposit less than $100 for the beginner stage (around 3 months), because they should only trade with a small fund, so you will not have to care about the trading cost.
Small trading lot required
I don’t want to remind the negative fact that ‘95% of new traders will lose” but I want to remind you to calm yourself. At the early stage, you should just open as small positions as possible. The standard lot is 100,000 USD which is too much but there are some brokers that offer Micro accounts which allow you to open positions with the lowest amount of 0.00001 Lot USD such as XM. FBS and Exness also offer Cent account with minimum lot trade of 0.0001 Lot USD. When you trade with Cent and Micro accounts, you should only put $10 for practicing for one month and you can even withdraw your profit. Moreover, there are no minimum deposit requirements for these accounts so you can deposit as low as you want.
Good local support
What I mean by local support is that brokers can support you in your native languages. Forex trading is a very complex matter. I also faced some stupid issues like login, 3D security of Credit Card or installing MT4 and etc … so I think you may encounter the same problems as well, so with local supports, it will be much better and much more convenient for you.
- 3 best forex brokers for beginners
Exness and XM are the top largest brokers so they are really reliable. XM can be slightly better as it allows you to open a smaller position at 0.00001 Lot USD. They also offer a lot of trading programs.
Exness is currently the largest retail broker. They not only offer Cent account which allows you to open small position of 0.0001 USD but also very good support and payment systems.
FBS also offers Cent account along with good support and payment systems as well. But those are only available in countries where they locate their offices and most of them are in South East Asian countries like Thailand, Indonesia, and Vietnam.
Click here for the best forex brokers in Thailand.