If you want to choose perfect forex brokers for beginners, you must learn and carry out a lot of research about forex trading. Because forex trading is a complicated progress, if you want have a lot of profit, you are really serious about it.
And if you have a good broker, your chance of success will become bigger. Sometimes, for each stage of trading path, there is only one type of broker suitable for you, you’ll have to change many brokers. From my research and experience, here is my list of best forex brokers for beginners.
XM.com: 9/10
Exness.com: 9/10
FBS.com: 8/10
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Misunderstandings of beginners
It’s wrong for beginners to think that forex demo account is the best for them. Sometimes, a demo account won’t work for beginners and it even has a lot of negative effects. Here is my advice.
Cent account is the perfect account for beginners. 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. 95% beginners will lose money, so don’t invest too much at the early stage.
At first you can get 50% – 100% of profit. Many traders can win up to up to 10,000%, but 99.9999999% of them will lose all later. Most small traders will lose if they keep the profit rate over 10%. Actually, 3 to 5% of profit rate is very good every month.
If beginners made their own decision on trading when the news was released, 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.
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Wrong knowledge about the perfect brokers for beginners
There is bad fact in forex trading. There are no any definitions of “best”. Instead, we have definition “the most suitable”. If you have a lot of trading strategies, experience, or trading conditions, you can base on them to choose a suitable broker. 95% of beginners will lose, so your target for this stage is learning and minimizing your loss.
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List of 3 best forex brokers for beginners
Again, this is my list based on my experience, research and feedback. And I will explain them in details.
XM.com: 9/10
Exness.com: 8.5/10
FBS.com: 8/10
XM and Exness are in the top of biggest forex brokers, so they are trusted brokers. XM is a little bit better because XM allows you to open smaller positions (0.00001 lot USD). They also have many good training programs.
Exness is the biggest retail forex broker. They have Cent account which you can open as small position as 0.0001 USD. They have good support and payment systems.
FBS also has 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.
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Standards of the perfect brokers for beginners
At this stage, beginners will mainly focus on practicing and minimizing their loss, so their standards are different from other traders. These are several criteria as follows:
– Low deposit requirements.
– Small trading lot requirements.
– Easy to trade.
– Good local support.
– Reliable brokers.
– Good training and coaching programs.
Low deposit:
Brokers will not cheat beginners. In this stage, beginners just deposit a small amount of money. The broker’s purpose is to improve and develop them, so they will give the best trading conditions. For beginners, they should deposit less than $100 for this stage (3 months), because they only trade a little amount of money, so they also don’t need to care about the trading cost.
Why small trading lot is the most important?
I hope you will never give up when you know this negative fact “95% beginners will lose”. At the beginning, you should open positions as small as possible. The standard lot is 100,000 USD.
Some brokers have Micro accounts 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.
An advantage of trading with Micro and Cent accounts is you only have to deposit $10 for a whole month of practicing, and you also can withdraw your winning money. Moreover, there are no minimum deposit requirements, so you can deposit whatever amount you want.
Why “Easy” is important for beginners?
Forex and its trading system are themselves complicated. Therefore, the good strategy for beginners is simplifying everything. For beginners, we need a simple and easy system, so simplifying everything is a good point.
My advice for beginners are:
– Choose the easiest brokers.
– Trading by web trade/web terminal in the beginning. Trade MT4/MT5 later.
– Deposit by Visa/Master in the beginning, because it’s much easier than other payment methods.
Beginners need good local support brokers
Many problems will arise for beginners. It’s hard for them if they don’t understand the necessary information. Because the content/information is written in foreign languages. It’s better if there are any local support brokers. They will help beginners understand everything involved in forex immediately.
Reliable brokers
For beginners, the most important element doesn’t really focus on reliable brokers. It’s simpler. They can trade with any brokers as long as they are easy and convenient for those traders because they just deposit 10 dollars at first. No brokers want to cheat them.
When you have enough experience and knowledge, you’ll want to invest bigger amount of money. Then, let’s change to other reliable brokers.
Good training and coaching programs
It’s a good thing for beginners if there are weekly or monthly training programs. These brokers who hold those training programs are the best for beginners. Most of them will ask you to deposit big amount of money, but don’t pay any money if they aren’t in the list of the best forex brokers in 2018.
5. My advice for beginners
Please keep my advice in mind, it’s worthy of your reference.
Trade Micro/Cent account.
Don’t deposit more than $100 for the first month.
Learn risk management with care
If you are asked to deposit tens of thousands of dollars and promised a high percentage of profit, please don’t do that. The common principle is the higher the profit, the higher the risk. If you’re lucky to get that profit, it’s never easy to withdraw without a lot of complicated conditions. They might win in some months or even some years, but eventually, they will lose everything.
It’s bad to use robot trading. If you are sold a trading robot and promised a high percentage every month, please don’t place your confidence in them. Let’s trade manually until you realized that you need some automatic tools to help you with some parts of your trading processes.
Robot trading is only good for experts, because they will know how to customize these robots to follow their trading strategies, and they have to adjust them frequently to reach their targets.