THE BEST FOREX BROKERS FOR BEGINNERS IN 2020
BRKV - New traders are the ones who face the most difficulties so they really need the best forex brokers for beginners. To know whether a broker is suitable for starters, we have to understand what do traders need at the early stages. New traders would want low trading cost, good customer support, and reliablity. Those are the most important aspects of a suitable forex broker for beginners.
Here is list of best forex brokers for beginners:
Who are beginner forex traders?
There are two types of beginner forex traders: the no-idea and the know-a-little. The no-idea is people who heard of forex trading from their friends or acquaintants or people online. They heard of great profits and found this market really interesting. And they are ready to pour any amount of money they have into this office. On the other hand, the know-a-little is someone who actually know about this market and start learning about it. They just begin forex trading so they are really beginner forex traders.
Misunderstandings of beginners
Beginners believe that forex demo account is the best for them, but that’s wrong. As I’ve explained in the article Cent account is best account for beginners, Cent account is the best account for beginners. Demo account won’t work for beginners and it even has negative effects.
ECN account is the best account for experts. If you are beginners, please keep away from ECN, because ECN is very volatile. There are a lot of slippages and gaps. Beginners like you should just look for the best forex broker for small accounts.
95% beginners will lose money, so don’t invest too much at the early stage.
You can get 50% - 100% profit. Yes, there are many traders win even up to 10,000%, but 99% of them will lose all later. I used to work for a big broker, and I’m sure about this data. Most small traders will lose if they keep the profit rate over 10%. Actually, 3 to 5% monthly is a good profit rate.
Beginners think trading based on the news means that they should open positions within the news release time, but it's wrong. All experts don't trade in news release time. They will close/open positions about 15 minutes before/after the release time.
Wrong knowledge about the best forex brokers for beginners
When I first jumped into the forex trading world, I thought I must trade with the best brokers, but after some losses, I knew I was wrong. In the forex world, there isn’t the definition of “best”. There is only “the most suitable”. Choosing a broker will depend on your trading strategies, your experiences, or your countries trading conditions... 95% beginners will lose, so your target for this stage is learning and minimizing your loss.
Standards of the best forex brokers for beginners
BRKV - As I’ve just mentioned above, beginners’ targets for this stage are learning 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 brokers’ credit, trading cost, and brokers’ quotes quality, but beginners are different, because they only deposit small funds so there are no brokers that want to cheat them. In this stage, brokers want to nurture them, so they 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 important?
I am sorry to repeat the negative fact that “95% beginners will lose” so many times, because I hope it will keep your feet on the ground. At the beginning, you should open positions as small as possible. The standard lot is 100,000 USD. It’s too much, but some brokers have Micro accounts which you can open positions as small as 0.00001 Lot USD such as XM. Exness and HotForex also have Cent accounts whose minimum lot trade is only 0.0001 Lot USD.
When you trade with Micro and Cent accounts, you only have to deposit $10 for a whole month of practicing, and you also can withdraw your win money. Moreover, for these accounts, there are no minimum deposit requirements, so, you can deposit whatever amount you want. If you don't have any money, try demo account. It is a free way for you to practice trading forex.
Why “Easy” is important for beginners?
Not only Forex itself is complicated but the trading system is also. Therefore, the good strategy for beginners is simplifying everything. Some brokers trading systems are very complex, so my advice for beginners are:
- Choose the easiest brokers. They usually have the best trading system for beginners.
- Trading by web trade/web terminal at the beginning. Trade MT4/MT5 later.
- Deposit by Visa/Master at the beginning, because it’s much easier than other payment methods.
Beginners need good local support brokers
Local support means supporters must speak your native language. Forex trading is very complicated. For me, at the beginning, I also got some stupid problems such as: login, installing MT4, 3D security of Credit Card... and I think you might get the same problems, so it’s much easier and faster if your supporters can speak your language.
For experts, trusted brokers is 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 isn’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.
When you have enough experiences and knowledge, you’ll want to invest bigger amount of money. Then, let’s change to other reliable brokers.
Good training and educational programs
Some brokers have weekly or monthly training program for their clients. These brokers are the best for you. Most of them will ask you to deposit big amount of money, but don’t do that if they aren’t in the list of trusted forex brokers 2020.
You can register account, deposit a little money, learn and then change to better brokers after the training courses.
List of 3 best forex brokers for beginners
- XM.com: 9/10
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- Exness.com: 8.5/10
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- HotForex.com: 8/10
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XM and Exness are in the top biggest forex brokers, so they are trusted brokers. 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 account with which you can open as small position as 0.0001 USD. Their advantages are the support and payment systems.
HotForex 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.
The best trading platforms for beginners
When you first enter the forex market, there are many different trading platforms for you to choose. From self-designed platforms to universal ones, it's obvious that traders do not lack of options. So, the question now is: what is the most suitable platform for beginners? Well, self-designed platforms of brokers are usually very simple, elegant, and easy to use. However, when a broker invests a great amount of money in designing its own platform, the trading fees of that broker are usually enormous. Beginners should not waste that much money to trade at early stages.
That brings us back to the common platform, like MT4 or MT5. These platforms are the most used in the market, so it is cheap to use. Although it may not seem as modern as other self-designed platforms, it is definitely not hard to learn how to use. All the 3 brokers we recommend use the MetaTrader platform:
- XM: both MT4 and MT5
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- Exness: both MT4 and MT5
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- HotForex: both MT4 and MT5
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Best trading apps for beginners
When everyone has a smartphone nowadays, trading app has become a common thing in the market. With the help of trading apps, traders can make their trades way easier and faster than before. Especially for beginners, trading apps can help them get more accurate signals, faster updates on the market, and better chart analysis. There are some common trading apps in the community of traders that we would like to introduce you to:
- For chart analysis, you can try out NetDania Forex, Trade Optimizer, or FX360.
- For forex learning and signals, you can try out BabyPips or FX Trader Magazine.
- For technical indicators, the most common ones are FX Trend Radar, FX Breakout Radar, or Radar Retracement FX.
- For forex trading time, you can try Forex Hours or iEconcal.
Should beginners join demo contest for practicing?
Most of us think Demo contests are for beginners practicing, but all the demo contest winners are professional traders. I did a research about demo contest winners. Most of the winners are Chinese, Thai and Indonesian. Their profitable rate are over 10,000%. That means most of them are using robot trading to win demo contests.
Of course, beginners cannot get high profit rate like them, so don’t dream that you can win demo contests. They’ll just waste your time. It may even affect to your trading strategy, because demo contest trading strategy is focusing on profit and ignoring risks, which is opposite to the normal trading strategy.
Should beginners get welcome bonus?
If your brokers offer welcome bonus, it’s good, but if your brokers don’t offer that, it’s still good, because most welcome bonuses are not easy to get even when you win. It’s easy to register welcome bonuses but it’s very difficult to withdraw. Brokers often have conditions to withdraw like you must deposit and trade enough number of Lots. These conditions often lead to your loss.
Check out the best welcome bonus now.
Trading strategies for beginners
As the market begins to trend up, this trend is expected to continue. And vice versa, when a downward trend is established, prices will continue to be expected to decline in the next session.
As such, the trading strategy will stem from "Buy when prices rise and sell when prices fall." This is the opposite of normal, Buy low sell high.
Investors following this strategy will find a way to buy when they find prices rising and retain assets in the hope that prices will continue to rise even higher. On the contrary, investors will attempt to short-sell this type of asset if the price has decreased and hope the price will continue to decline in the future.
Advices for Beginners in forex market
- Trade Micro/Cent account.
- Don’t deposit more than $100 for the first month.
- Learn risk management.
- If someone ask you to deposit tens of thousands of dollar and promise you very high percentage of profit. Don’t fall for that. It’s easy to get that profit rate but the higher the profit, the higher the risk. I used to work for a big broker and I know this. They might win in some months or even some years, but eventually, they will lose everything.
- Don’t use robot trading. If someone sells you a trading robot and promises you profit rate up to hundreds percent monthly. Don’t trust them. Robot trading is only suitable for experts, because they will customize these robots to follow their trading strategies, and they have to adjust them frequently. There is no robot that can win forever. Let’s trade manually until you recognize that you need some automation tools to help you with some parts of your trading processes.
Forex learning sites for beginners
ForexFactory: this is the largest forum of forex investment today, here you not only consider the share from the great traders but also update a lot of information, economic calendar, hot news. about financial markets.
- TradingView: Already a trader, it is impossible not to know Tradingview. These not only provide you with trading tools similar to MT4, but also contain lots of other useful information. Especially, TradingView supports 18 different languages.
- MyFxbook: is simply a free trading diary page for Trader. This is the largest trading diary in the world where everyone can read it, so it is extremely helpful for traders.
- MQL5: a community service of MetaQuotes (the father of MT4 and MT5 software), which is considered as a provider of countless trading signals you can refer to in two forms: free signals and signals. paid sign. Even if you can afford it, you can come up here to sell signals to other investors.
- Investing: this is one of the major financial websites worldwide providing readers with a lot of news about different fields. In addition, there are expert analytics to help you better understand the current financial situation.
- BRKV Forex: the site provides a lot of useful knowledge about forex. If you are good at English, Thai, Chinese, Vietnamese, or Arabic, you probably don't need to study anywhere far. Make BRKV Forex your "teacher".
Forex trading may seem terrifying at the start, but if you stick to the right brokers like we said, and follow the advices we gave, you are good to go. Remember, just have discipline, follow the rules, and choose the best forex brokers for beginners, you will soon succeed in forex trading.