Although it’s very hard to find the best forex brokers, there are ways to find the perfect brokers for beginners. In my opinion, the perfect broker is the person who meets a trader's needs and trading strategies. Besides, they should be reliable and offer good trading conditions. To choose the right broker, you need to understand about the forex market, know brokers and check their main factors. In this article, I will recommend several brokers that I think they are the best brokers for beginners, and then explain my reasons. These brokers are Exness, FBS and XM. Here’s everything that you need to know if you’re just starting out as a trader.
Why people are looking for the perfect brokers when starting trading
Forex trading can be very difficult and confusing for beginners. It’s estimated that about 95 percent of traders have lost all their money at the beginning. For this reason, new traders often choose demo accounts to experience and familiarize themselves with trading problems first. The process can take several weeks to months. If the beginners are ready for live trading, they can open real accounts. That sounds great to most of beginners. However, many traders think that practicing with demo accounts is not only ineffective but also time consuming. In reality, demo accounts are completely different from real accounts. And, trading with real accounts can be ten times more difficult. To experience real live trading, cent account is exactly the perfect choice for beginners. It sometimes doesn’t require minimum deposit. If you trade with Exness cent account, you can deposit as low as $1 or however much you want. Besides, you can receive real money if you win.
There are also some other accounts in forex trading, such as classic accounts, mini accounts and ECN accounts. Classic accounts and ECN accounts are commonly for professional traders. Many beginners don’t know and choose these accounts because they can get 50%, 100% or even 10,000% profit. But unfortunately, all of them lose all money later. Specifically, ECN accounts have high slippages and unstable quotes. So if you’re just starting out as a trader, keep away from these accounts.
For the above reasons, there are more people looking for the perfect brokers for beginners. They don’t find the best, but the perfect brokers that meet their experiences and their trading strategies.
How to choose the perfect brokers for beginners
Since scam brokers are everywhere, it’s quite difficult to find the perfect brokers. But, taking the few tips below can be very helpful for you.
Tip 1: Check minimum deposit
There are several factors that I highly recommend to consider before choosing a forex broker. These include high trading volume, good quotes quality and good trading costs. But for beginners, I think that minimum deposit is the most important thing to be checked first. Because brokers often require low deposit at the beginning, they will not cheat their traders. Instead, they will try to offer the best trading conditions to encourage beginners. So, I recommend you not pay high attention to the trading costs, but the minimum deposit. Personally, I think an amount of $100 deposit in 3 months is quite suitable for beginners.
Tip 2: Consider mini trading lots
As mentioned above, most traders lose all their money when starting. So, if you’re a beginner, you should choose to trade small lots. Lot size is generally about $100,000, which is too high. Being a new trader, you should choose brokers with micro accounts that require 0.0001 for each lot. These brokers are FBS and Exness. You can also open cent accounts which only require $10 for each month of practicing. In some brokers, they even allow you to deposit lower than $10 or how-ever much you want.
Tip 3: Find out about the trading systems
Beginners should choose brokers with good and convenient trading systems. Various payment options are good, but you should the easy ways at the beginning. For example, you can deposit by Visa/Master, and trade by web trade or web terminal.
Tip 4: Think about local support brokers
Beginners really need constant help and advice from brokers. So, consider trading with brokers that offer good local support. For instance, brokers with regional offices can help you solve trading problems faster. Brokers that assist you in your own language can be a great choice. And, consider brokers that provide 24/7 customer service. For Thai traders, these are 5 ฟอเร็กซ์โบรกเกอร์ที่ดีที่สุดในประเทศไทย 2561.
Tip 5: Consult reliable brokers with high ratings
The broker's credibility is the most important factor to consider when choosing a broker. But for beginners, I think it can be less vital. Because new traders deposit very low funds, brokers will not scam them. So during this stage, beginners can trade with any broker that they think they are good for their practicing. But if you’re looking for the perfect broker, you can check their regulations and ratings. Reliable brokers often have famous and trusted licenses, such as CySEC (Cyprus), FSA (Japan), ASIC (Australia), NFA, CFTC (United States) and FCA (United Kingdom). To know the broker's transparency, you can check their ratings by using the Internet. I knew some brokers with high ratings that can be suitable for beginners. They include Exness, XM.com, FxPro and Forex.com.
Tip 6: See what training and coaching programs are on offer
Last, the perfect broker should be the person that provides their traders with good training programs. These programs are very beneficial for beginners. You can register to learn and improve your trading experience. Some brokers may require deposit for these courses, but you should only choose reliable brokers.
Common questions to be asked when choosing the perfect brokers for beginners
- Who are the perfect brokers for beginners?
FBS.com, Exness.com and XM.com are top three perfect brokers for beginners. Exness is one of the biggest brokers that offers cent accounts with small trading lots. Besides, the broker has very good payment systems and great customer support. FBS is also a large broker with good support and payment systems. However, they only have regional offices in several countries, such as Vietnam, Thailand and Indonesia. XM, on the other hand, provides small trading positions and has many training programs.
- Is demo contest good for beginning traders?
As mentioned before, many beginners choose demo accounts for practicing. This can help you familiarize with many problems before starting real trade. However, trading with demo accounts is not as beneficial as many people think. Some traders, including professional ones even join demo contest and gain 10,000% profit. However, experts think that it’s not easy for beginners to get high profit. In fact, most of these traders lose all money later. And, demo contest can waste their time and affect their trading strategies.
Professional traders don’t pay attention to bonuses. But for beginners, bonuses can encourage them and help them save a little. So, it can be very good if the broker that you choose offer bonuses. But if they do not have these favors, it’s still ok because those brokers may retake your money in other ways. For example, they require higher deposit, or you have to trade enough number of lots.
- Is there any special advice for choosing the perfect brokers for beginners?
top 5 forex brokers in the world, check the six factors mentioned above. Because you’re just starting out as a trader, do not focus on profit. Instead, pay high attention to experience and solve trading problems. Plus, learn risk management if you don't want to lose your money. And, remember to choose brokers that require low deposit. Trade with cent accounts and do not use robot trading. I hope that all the above information can help you pick the perfect broker when starting trading.