With the forex world, there are many stages to go through before traders could be a master of this field. The very first step is important for every trader. Many traders think that they should start their business with the best broker. It is not quite right for this case because the best is not definitely fit for beginners. Actually, they have to review their trading plan, or their experience to decide on what brokers are the best brokers for beginners like them.
Some characteristics of the best brokers for starters
Starters just focus on practicing and learning so they review some matters that are important for this purpose: Those are about:
First, this is crucial for beginners because the possibility of loss is quite sure so trade with a little amount to restrict the loss. It is unnecessary to worry about trading cost when they just a tiny amount, about 100$ deposit for three-month trading.
The small trading lot is safe
Beginners should try Cent or Micro accounts to start because they often supply the trading lot of just 0.00001 USD like XM or 0.0001 USD like Exness or FBS. These brokers have no limit on the minimum amount for deposit and traders can make the deposit with any amount they want.
Easy to start trading
Of course, beginners know very little about the forex market; in order to trade safely and easily, traders prefer the simple process to open an account or trade with web trade or web terminal first. When they are experienced and qualified they can move to MT4 or MT5. In addition, to deposit quicker, traders deposit through Visa or Master cards that are the simplest ways for beginners.
On the way trading, beginner definitely confuses about a lot of problems about login or installing MT4, 3D security of Credit Card… That is when they need help the most from a helpful tool. Therefore, what brokers have local service to support them with their language can make them impressed.
It is actually not the matter to care too much about because beginners just start with 10 $ most so they are not threatened with the risks. Then they are more concerned about how convenient brokers are. Of course, after time when they realize which the most fitted brokers for them and when they trade with a bigger account they will focus more on the credibility of the brokers.
These programs may be very helpful for beginners to learn more skills in forex trading and brokers usually have these programs held monthly or weekly. They also want to have more clients by having traders open with their account. But it depends on whether they are reliable or not.
Some probably confusing concepts
There are some issues that cause beginners trouble if they do not know clearly about before they begin to trade.
Demo accounts are thought to be suitable for practicing but it is not right because they can cause more problems for beginners. Beginners would rather start Cen or Micro accounts that are safer.
Release time is not appropriate to open the position. Experts on forex trading have shared the experience that they often open or close the position when it is fifteen minutes before or after the release time. That means it is not good to open trading at the moment of news released.
Traders think that ECN brokers provide higher profit with 50%-100% or even higher but with these ECN brokers, beginners can lose more when they invest a lot after they win. And it is sure that 90% of the beginners will not win at the end. Therefore, the first step with little loss is more secure for you finance with the profit of 3%-5% in one month.
One more problem is that beginners ignore their trading strategies or their countries’ trading conditions. They believe the best forex brokers in 2018 can give the best experience but after losing for these best brokers they learn that they have to find a suitable broker, not the best one.
Are those demo contests for practicing?
The truth is that these contests offer a very interesting award and profit but it is not easy to get. Traders from China, Thailand or Indonesia have to use a robot to trade so that they can win the contest and get a benefit. The point is that it is not the normal way for beginners because they cannot handle the robot trading like the experts.
Are welcome bonuses important?
It is great if a broker offers welcome bonuses but it is still right if there are no bonuses at all because of that this kind of bonuses is not really taken by the winners. Brokers often ask traders to meet some conditions before they can use their own profit. Beginners can be exciting about the welcome bonuses that they are rush to open an account while they are not aware of the withdrawal conditions.
What are top forex brokers that meet most of the requirements for beginners?
Here is the list:
Among them, XM is a little bit better when they supple Micro account with the trading lot of only 0.00001 USD and they also have a lot of training sessions and after them, Exness is the biggest retailer for forex and with Cen accounts they require only 0.0001 Lot USD, the same with Cen account of FBS. However, XM is professional on payment system and local support. FBS still has that feature but their system is for domestic clients not for the outside clients.
Summary of important points:
– Open a deposit with only less than 100$ for one month
– Trade with Cen or Micro account
– Brokers that offer high profit can also cause more risks
– Robot trading may sound good but it is for professional traders. Beginners start with normal trading to make sure they learn enough then think about other helping tools if needed.