If you are searching for the phrase “best brokers for beginners”, then you must have recognized that the best forex brokers might not be suitable for you. This is quite a good thing. In addition, you must have also known that the same fact applies to ECN brokers.
If you have done all of the above, it means that you are serious about your trading career as you must have researched quite a bit into forex trading. In your trading path, you will have to change from one broker to another for so many times. For each stage of the trading path, there is only one type of broker that is the best for you! Thus, in this stage, you should only look for the best brokers for beginners.
Here is a list of the best brokers for beginners.
- com: 9/10
- com: 9/10
- com: 8/10
- Beginners’ common misunderstandings:
Most beginners believe that a forex demo account is the best, but that is a misunderstanding. As I’ve explained in detail before, Cent account is simply the best account for any beginner. Demo accounts usually don’t help beginners. In fact, they even have some negative effects.
ECN account is the best account for the experts. Thus, if you are a beginner, please keep away from the best ECN brokers, as it is very volatile. There are a lot of slippages and gaps that 95% of beginners will lose their hard-earned money. Thus, please don’t invest so much in the early stage.
There still is a chance that you can get a 50% – 100% profit. There are traders who win even up to 10,000%, but 99.9999999% of them will lose all of their money later down the line. I used to work for a big broker, so I’m quite sure about this data. A large chunk of the small traders will lose if they keep their profit rate over 10%. Actually, 3 to 5% monthly is a quite good profit rate.
Beginners usually believe trading based on the news means that they should open positions within the time that the news release. However, that is a misconception. Almost all experts never trade in the news release time. They will close/open positions in a 15 minutes time frame before/after the release time of the news.
- Wrong knowledge about the best brokers for beginners
When I make contact with the forex trading world for the first time, I thought I must trade with the best forex brokers available, but after many losses, I realized I was wrong. In the forex world, there isn’t the definition of “best”. There is only “the most suitable”. Choosing the best broker will depend on your trading strategies, your experiences, or your countries trading conditions… 95% of beginners will lose, so your target for this stage is learning and minimizing your loss and find out the single best brokers for beginners in general.
- Standards of the best brokers for beginners
As I’ve just mentioned above, beginners’ targets for this stage are learning from and minimizing their losses, so the standards for the best brokers for beginners are:
– Low deposit requirements.
– Small trading lot requirements.
– Good local support.
– Trusted brokers.
– Good training and coaching programs.
For experts, they strongly care about their brokers’ credit, trading cost, and the brokers’ quotes quality, but beginners are different as they only deposit small funds. Thus, there are no brokers that want to cheat them. In this stage, best brokers for beginners want to nurture them, so they will give them the best trading conditions. I strongly advise you to deposit less than $100 for this stage (3 months), because you only trade a little amount of money, so you also don’t need to care about the trading cost.
Why small trading lot is the most important?
I apologize for repeating the fact that “95% of beginners will lose money” so many times. This is because I hope it will keep your feet on the ground. In the beginning, you should open your positions as small as possible. The standard lot is 100,000 USD. It’s too much for most of the beginners, but some brokers have Micro accounts in which you can open positions as small as 0.00001 Lot USD such as XM. Exness and FBS also have Cent accounts whose minimum lot trade is only 0.0001 Lot USD. Thus, they are currently my personal choices for the best brokers for beginners.
When you trade with Micro and Cent accounts, you only have to deposit $10 for a whole month of practice, and you also can withdraw your win money. Furthermore, for these accounts, there is no minimum deposit requirement. Consequently, you can deposit whatever amount that you want. This is one of the more important qualities for the best brokers for beginners.
Why is “Easy” important for beginners?
Not only Forex itself is complicated but the trading system is also quite hard to master. Therefore, the good strategy for beginners is to simplify everything. Some brokers’ trading systems are quite complex, so my pieces of advice for Beginners are:
– Choose the easiest brokers.
– First trade by web trade/web terminal at the beginning. Trade MT4/MT5 later.
– Deposit by Visa/Master Card at the beginning, because it’s much easier than all the other payment methods.
Beginners need good local support brokers
Local support means the supporters must speak your native language. Forex trading is really complicated. For me in the beginning, I got some stupid problems like login, installing MT4, 3D security of Credit Card… and I believe you might get the same problems. Thus, it’s much easier and faster if your supporters can speak your language. All in all, the best brokers for beginners should have good local support brokers.
For experts, trusted brokers are the most important, but for beginners, it ranks at that fifth position. Actually, we always must trade with trusted brokers only, but for beginners, they only deposit ten dollars top, so there aren’t any brokers that want to cheat them, so, they can trade with any brokers as long as they are easy and convenient for those traders. Thus, trust does not have any impact on the best brokers for beginners.
When you have enough experiences and knowledge, you will want to invest a bigger amount of money. Only then should you change to other reliable brokers.
Good training and coaching programs
Some brokers have a weekly or monthly training program for their clients. These brokers are simply the best brokers for beginners. Most of them will first ask you to deposit a big amount of money, but don’t do that if they aren’t in the list of trusted forex brokers 2018.
You can register an account, deposit a little money, learn and then change to better brokers after the training courses.
- List of 3 best brokers for beginners
- com: 9/10
- com: 8.5/10
- com: 8/10
XM and Exness are among the top biggest forex brokers, so they are trusted brokers, that makes them even more appealing as the best brokers for beginners. 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 have Cent accounts which you can open a small position as 0.0001 USD with. Their advantages are the support and payment systems.
FBS also have Cent account. Their support and payment systems are very good, but they only offer good services in countries where they have offices. Most of them are South East Asian countries such as Indonesia, Thailand, and Vietnam.
These are, in my personal opinion, the best brokers for beginners
- Should the beginners join demo contest for practicing?
Most of us think Demo contests are for beginners to practice, but almost all the demo contest winners are professionals. I did research about some demo contest winners. Most of them are Chinese, Thai and Indonesian. Their profitable rates are usually over 10,000%. That means most of these guys are using the robot trading tactics to win the demo contests. Thus, the best brokers for beginners don’t necessarily need to have demo contests.
Of course, beginners cannot get a high-profit rate like them, so never dream that you can win demo contests. They are only going to just waste your time. It may even affect your newly established trading strategy because most demo contest trading strategies focus on profit and ignore risks, which is opposite to any normal trading strategy.
- Should the beginners get a welcome bonus?
If your brokers offer you a welcome bonus, it’s good, but if your brokers don’t offer that, it’s still good, because most welcome bonuses are not that easy to get even when you win. It’s easy to register for the welcome bonuses but it’s really difficult to withdraw. Brokers often have conditions to withdraw this type of money such as you must deposit and trade enough number of Lots. These conditions often lead to your loss. So brokers that don’t offer welcome bonuses can still be best brokers for beginners.
- Bits of Advice for Beginners:
Trade in Micro/Cent accounts only.
Don’t deposit any amount more than $100 in your very first month.
Learn how to manage risk properly.
If someone asks you to deposit tens of thousands of dollar and promise you a really high percentage of profit margin. You should never fall for that. It’s obviously easy to get that profit rate. However, the higher the profit becomes, the higher the risk will get. This statement was the most useful thing I learned from my time working for a big broker. You might win in some months or even some years, but eventually, you will lose everything.
Don’t use any type of robot trading. If someone sell you a trading robot and promises you that your profit rate will go up to hundreds of percents monthly, you should be suspicious. best brokers for beginners will never do anything like that. Robot trading is only suitable for the experts, because they can and will customize these robots to follow their already established trading strategies, and they have to frequently adjust them. There is no robot that is able to win forever. Please start trading manually and continue doing so until you recognize that you are in need of some automation tools to help you with parts of your trading processes.
For Thai forex traders, these are ฟอเร็กซ์ โบรกเกอร์.