WHAT TYPE OF FOREX BROKER CAN A BEGINNER CHOOSE?
In the forex market, traders have to overcome different phases of their trading career. In terms of each stage, traders have to trade with different forex brokers in order to make profits. When it comes to forex beginner, they need to opt for their suitable forex brokers. Therefore, choosing big and famous forex brokers may not be advantageous for them. In order to help them go for suitable forex brokers, I write this article with some certain criteria that traders should follow before deciding on their future brokers. After trading with different forex brokers, I will give you a list of what type of forex broker can a beginner choose. (Check here)
Something that beginners should focus on
For beginners, they often reckon that demo account is really helpful for them because they will not lose their money. However, it is not a good idea because demo account is not specially designed for beginners. In fact, you can win demo account easily but you can learn nothing from it. On the other side, experts tend to choose ECN account because of its benefits. However, beginners should not choose ECN account on account of its volatility. Most of forex beginners lose their money when they choose ECN account at the beginning. In forex market, trading in news releasing time cannot be a good time. It is advisable that traders should open/close positions after 15 minutes of the releasing time.
Standards of what type of forex broker can a beginner choose
It is obvious that when traders first come to forex market, they want to learn as many things as possible rather than making money. Here are some standards of best forex brokers for beginners in forex market.
- Low initial deposit
- Small number of trading lots
- Helpful local support
Low initial deposit
Experts, in fact, will pay closer attention to brokers’ reliability, trading cost, and quotes quality. On the other hand, forex beginners will deposit a small amount of money. Therefore, brokers do not want to scam those forex beginners. The only thing that they will do is to nurture those forex beginners by providing best forex trading conditions.
Small number of trading lots
In reality, more than 95% forex beginners tend to lose their money in the forex market. In my opinion, you’d better open many small positions at the beginning. The usual standard lot is $100,000, which is relatively high. If you have Micro accounts, you could open many small positions, which are around 0.00001 lot such as XM. Speaking of this, Exness and FBS also offer their customers Cent accounts whose minimum lot trade is only 0.0001 Lot USD. You only have to deposit $10 for the whole month if you choose Micro and Cent accounts. If you win your money, you can withdraw your money. In addition, you can deposit any amount of money because these accounts do not require a minimum deposit amount.
Helpful local support
In forex market, forex traders might not evade some difficulties in communicating with their brokers. Therefore, it would be better for them to have support from their brokers in terms of their native language. It is because the ultimate goal of all traders when they break into this market is to gain profits. That’s why they need to have a good insight into their brokers and forex market.