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There are a couple of ways of making extra cash, and forex trading are at the top of the food chain, well, at least for some. As a beginner looking to grow their wealth in the forex market, you will be spoilt for choice, given the numerous forex brokers coming online.
It takes copious amounts of time to pick, test, and research the ocean of forex brokers, which is no fun. So, is there a way around it? Certainly, and that is the reason we are here.
To save you time, we have itemized some of the best forex trading platforms for beginners in the forex market. Your only task is to pick the ideal forex broker for your needs that is well-regulated and provides access to various educational resources and market research.
The right forex broker for you will be your main access point to foreign forex markets. And getting this right is the first step to successful trading.
What are Forex Brokers for Beginners
Forex brokers are a bridge between the individual trader and the forex market. The best forex brokers for beginners are typically designed to give beginner traders a soft landing. They are equipped with educational materials and quality research.
It also goes without saying that your ideal broker for beginners should be regulated. In addition, it should accept traders from your country. More importantly, you should go with a broker that has tight spreads and offers you a wide variety of trading instruments.
Here is a list of what we consider the best forex brokers for beginners.
Best Forex Brokers for Beginners
Your choice of an online forex broker will determine your success in the forex market. It is imperative you choose wisely. Here are a few of the best forex brokers for beginners we’ve picked just for you.
1. Plus500 – Best for their Friendly fees
Plus500 Ltd, registered and regulated in Cyprus, has various localized offices in major European countries. They are listed on the London Stock Exchange and are specifically popular with CFD traders in Europe and Asia.
They have a web-based trading platform, mobile trading apps, and desktop trading platform. Plus500 has various major currencies you can use as a base, making it more convenient. You can also take advantage of their minimum lot sizes of 0.005 as a beginner to learn the ropes.
Plus500 does not charge commissions or fees, and their spreads offers are lower than those of their counterparts in the market.
Pros:
- Various major currencies that you can use as a base
- Several funding options for your forex account
- Low minimum funding requirements
- User-friendly in-house trading platform
Cons:
- They do not offer the MT4 platform
2. IG – Best for safety of customer deposit
IG Markets complies with NFA and CFTC to accept clients in the US. It is also firmly regulated by the Financial Conduct Authority (FCA) in the UK. IG is one of the safest in the market and, therefore, the best forex brokers for beginners. Safety comes first in forex trading.
You can use IG to trade over 17000 CFD assets, including commodities, equities, forex currency pairs, exchange-traded funds (ETFs), bonds, and indices. You need a minimum of $250 to get started.
The United States users can go as far as 50:1 maximum leverage ratio.
Pros:
- Keeps client’s money in separate accounts from their own
- Supports MT4 and ProRealTime proprietary trading platforms
- The platform is easy to use
Cons:
- High fee to get started
3. eToro – Best for their Copy trading Feature
Cryptocurrency trading and social copy trading couldn’t be easier, thanks to eToro. Registered by U.S. Financial Crimes Enforcement Network (FinCEN) as a Money Services Business in the US, eToro accepts beginners from most states in the US. It submits to the UK regulations and is one of the best forex brokers for beginners UK.
Copy-trading involves automatically copying a professional trader’s trades to your account. eToro has a social trading network and an excellent copy trading tool that is ideal for beginners.
Copy trading is ideal for beginners since they can sit back and let the experts pull strings for them in the market. With eToro, you can trade in excess of 2000 different assets to spread your risks.
As one of the best forex brokers for beginners, eToro has a mobile and user-friendly platform for beginners and casual traders.
Pros:
- Accepts users from most US states
- Has a low minimum deposit of just $50
- User-Friendly platform and mobile app
Cons:
- It is not compatible with the popular MT4/5 platforms
4. Oanda – Best fot its long standing reputation
Oanda is one of the largest trading platforms and submits to the strict CFTC and NFA to accept users in the US. It is a trusted global brand that stands out for quality market research and reputation.
Oanda has different offices worldwide in Sydney, Singapore, Tokyo, and Toronto. Their website is presented in eight different languages.
You can trade over 70 currency pairs plus energy products, CFDs on metals, German, UK, and US government bonds. Maximum leverage ratios are 100:1 to Australian, 50:1 to the U.S, and 0:1 to EU users.
Oanda is user-friendly for folks with low-risk capital or beginners and has the right balance of educational materials. There is no minimum deposit for a live account.
The broker operates as a straight-through processing (STP) broker and an electronic communications network (ECN) to provide exceptional dealing spreads and fast execution.
Oanda supports third-party platforms such as MT4 and is available in a web-based and mobile platform with TradingView charts.
Pros:
- Adheres to strict regulations in the US and UK
- Available in eight different languages
- Appropriate for beginners
Cons:
- Customer support is not available throughout
- Does not have a banking and stock exchange background
5. Exness – Best for their competitive spreads
Exness is the best forex broker for beginners in South Africa. In November 2020, Exness had a trading volume of over 600 Billion USD, making them one of the largest brokers in terms of volume. They are highly regulated with CySEC, FCA, and FSCA and are considered safe for South African traders and others worldwide.
Their spreads are the most competitive, even with standard accounts. As per their contract specification, Exness also has one of the lowest spreads. They offer MT4 and the latest MT5 platform, which is a positive for traders of all levels.
You will find Exness has excellent account offerings to fit your budget and needs. Funding and withdrawal are quite convenient with them.
Pros:
- Very competitive spreads
- Highly regulated by top-tier regulators to ensure your safety
- Knowledgeable, friendly, and quick support
Cons:
- There are no bonus offers for South African users
How to Choose the Best Brokers
- Obviously, the best forex market brokers will depend on your goals, what you hope to achieve. At a minimum, the broker should be well-regulated in your country and by the top-tier regulators to safeguard against malpractices. Research the broker and identify any complaints against them. If they have been fined in the past for malpractice, it’s best to look elsewhere.
- The best forex broker for beginners should easily add funds and make withdrawals. Most platforms will show the time and method of making withdrawals on their website. Check this and compare with others, and choose the one that fits your needs most. Check how much the brokers will charge you for withdrawals. Some of them will charge you zero fees on deposits but exorbitantly on withdrawals.
- Track the fees that brokers charge through commission on trades, spreads, and rollover. Some brokers will charge extra for withdrawals and deposits, sometimes in the background.
- Order execution speed is critical in forex trading to avoid requotes and slippage. If you open and close a handful of positions daily, a forex trader with the best execution speed will come in handy. The best way to test a trader’s execution speed is to sign up for an account and place trades on the live platform. Some brokers will have different speeds on the live platform and the demo account. For some, the demo account is not the best representation of the live account. Sign on a low position and minimum funding and test the live account directly.
- It also helps if the trader has multi-device platforms. Most of the traders have a mobile and desktop app which makes trading convenient. If your preference is mobile trading, find out if the trader has an android version or the iOS version. Other great features that you should look out for include newsfeeds, alerts, and lightning-fast pick and close trades.
Parting Shot
The forex market is well developed, and some become rich trading. However, forex trading is a risky business, especially if you don’t have the patience for market research and choosing the right brokers and trading.
With skills, patience, good trading habits, and, of course, the best forex brokers for beginners, you can make good living trading forex and build your wealth.
FAQs
How do online forex brokers work?
The main work of online forex brokers is buying and selling currencies on behalf of the client. They are an independent entity that organizes and execute transactions across different asset classes on your behalf, and of course, at a commission.
How do online forex brokers make money?
Some forex brokers make money through the bid/ask prices charges, and others through commissions from every trade. The primary way for most of them is through a set fee per round turn and keeping the spread. Some scrupulous forex brokers will have hidden charges after saying they have commission-free trades.
What are the best online forex brokers for beginners
The best online forex brokers for novices boast particular features such as ease of use, excellent research and education resources, and good customer service. Our picks, such as eToro, are the best for copy trading, where beginners can copy from the experts. Others include Exness, Oanda, and IG with a user-friendly platform and resources.
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