Beginners are those who start their trading at the first time without any experience and knowledge about forex. What they find here is not the best forex brokers, they find the perfect ones for their own trading. They research much information about brokers and which brokers they should cooperate at each trading stage. It also depends on their trading strategies as well. Below list includes top three best forex brokers for beginners’ reference:
XM.com : 9/10
Exness.com : 9/10
FBS.com : 8/10
Down below is my advices and explanation for some mistakes and misunderstandings of beginners at their first approach on forex. Hope that it will support much for them.
- Beginners’ misunderstandings on demo account, high profit rate and news release time
- Demo account: many beginners believe that trading with demo forex account at their first order is very good for them to practice and make acquainted with forex market however it is opposite. If you use demo account with easy trading conditions which is different from the real condition of real account. You must waste time practicing again with real account. So I recommend that beginners should trade with Cent account at the first trading. Many people suggest beginners to use ECN account. But you should know that ECN account is especially for experts only. There are many slippages and gaps so 95% beginners will lose their money so beginners should stay away ECN account.
- Profit rate: if the profit rate is too high, the risks exist as well. Many traders win even up to 10,000% but 99.99% of them will lose later. With long years of working with many big brokers, I recommend that beginners should keep their profit rate at 3 to 5% monthly.
- News release time: together with expert’s experience, I suggested that beginners should open/close positions about 15 minutes before/ after the news release time.
- Standards of the perfect brokers for beginners:
Choosing a best forex broker is good for beginners but if the most suitable forex broker is much better. Because choosing a broker include traders’ trading strategies, experiences, and country trading conditions. So beginners should learn more and minimize their loss at the first stage. Below are standards of a perfect brokers for your consideration:
- Low deposit requirements: experts or experienced traders often care about brokers’ credit, trading cost and quote quality. In contrast, beginners don’t need to care about them, they just care the low deposit. Because they just invest small money so no one wants to cheat them. Brokers often offer the good trading conditions to traders. So I advised you to deposit less than $100 for this stage (within 3 months) because you trade a little of money and you don’t need to care about trading cost.
- Small trading lot: Because of high risk for beginners, they should open positions as small as possible to avoid any big loss. Many brokers offer Micro accounts which you can open as small as 0.00001Lot USD such as XM. Other brokers also provide Cent accounts whose minimum lot trade is only 0.0001 Lot USD such as FBS and Exness. When you trade with Micro and Cent account, you can deposit any amount you want because there is no minimum deposit requirements. So beginners just spend $10 for practicing within one month.
- Easy: Forex market and the trading system is becoming more complicated nowadays so if beginners want to survive in this field, they should simplify everything. Below is my advices for beginners:
- Choose the easiest brokers;
- Trading by web trade/ web terminal at the beginning. Trade MT4/MT5 later.
- Deposit by Visa/ Master at the beginning, because it is much easier than other payment methods.
- Local supports: Brokers will have their own customer of many countries in the world while traders are very serious with their business so they often have some questions for brokers to clearly understand about brokers. So brokers should create some local offices in these countries with their native languages to easily support their customers.
- Trusted brokers: Actually experts put the trusted brokers at the first position when they choose a best broker. But beginners just deposit a small money for their trading so no brokers want to cheat them so they don’t care much about trusted brokers. They can trade with any brokers as long as they are easy and convenient for those traders. When they have enough knowledge, experience and qualification, they want to invest a bigger amount of money, they will consider to change to the reliable brokers.
- Good training and coaching programs: Some brokers open some weekly and monthly training for their clients. So beginners should register one account to experience, learn and experience and then change to better brokers after the training course ended.
- Whether demo contest is good for beginners or not?
Many beginners think that demo contest is organized for them but the answer is “no”. Most of demo contest’s winners are experienced traders only. Most of them come from China, Thailand and Indonesia. They use robot trading to win demo contests. That is the reason why beginners don’t have high profit rate to win the contest. Moreover, demo contest trading strategy is focusing on profit and ignoring risks, which is opposite to the normal trading strategy. So beginners don’t waste time taking part in these demo contests.
- Welcome bonus is good for beginners:
Welcome bonus is very good for beginner but if brokers don’t provide it, it does not affect much on traders. Because it is very hard to withdraw this bonus. Brokers often have conditions to withdraw such as requirement of completing enough number of lots, which often lead to loss.
- Top 3 best forex brokers for beginners:
XM.com : 9/10
Exness.com : 8.5/10
FBS.com : 8/10
XM and Exness are in the top biggest forex brokers, so they are trusted brokers. XM is a little bit better because XM allow traders to open smaller positions (0.00001 lot USD). They also offer many training programs to help traders practice.
Exness is the biggest retail forex broker. They have Cent account with which you can open as small position as 0.0001 USD. 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 local offices. Most of them are South East Asian countries such as: Indonesia, Thailand, and Vietnam.
- Some advices for beginners:
- Trade with Micro/ Cent account to avoid big loss.
- Don’t deposit more than $100 for the first month.
- Learn and follow risk management.
- Don’t believe in high percentage of profit. The higher the profit, the higher the risk.
- Don’t use robot trading from experts.