There are a lot of things which impact the future success of every forex trader. Strategy, adaptability, and forex broker service are between them. The difference between successful and unsuccessful forex trader sometimes depends just on little, on first sight, unimportant things. For example, spread on currency pair or availability of trailing stop-loss order at your broker dealing platform. The picking of right forex broker is not easy and a lot of things have to be considered. Best forex brokers for beginners are not the right ones for professionals and vice versa. Let us have a look what should forex broker provide to a starting forex trader.
Demo platform availability
Ninety-nine percent of beginners usually wants to practice at first without risking any money. Forex demo platform is a must what forex brokers have to provide to clients. Everybody needs to get used to dealing interface before a first real trade. Every forex broker platform looks different. Every trader needs to know which button does what, where to insert trade, how to check open position, where to make a chart analysis, where to find breaking news. Therefore look around for the longest trial period available on the market. The market average trial period is two weeks, but a lot of forex brokers will prolong it at request.
Minimum account size
Forex beginners should not start trading with all their disposable assets. Start just slowly with small amounts. Look for brokers who let you open also with the small amount of money. There is no need to look for the big shot at the start. Beginners should always keep in mind, that loss is more probable than gain. Therefore starting with tiny amounts is acceptable. Forex brokers usually ask for thousand as account opening amount. On other side spread betting companies let you open account also with five hundred, but their service is limited.
Minimum trade notional
Nobody at forex should expect that he will earn a million in the first trade. Beginners usually have to do a lot of testing and need some time to find right strategy and approach. Usually, tests are made with smaller notional trades. Forex starter should not risk ten thousand in a trade, and definitely not in a test trade. Finding a forex broker which has lowest trade notional without fees is important for early stages of forex trading.
There is a big discussion on the market what is more suitable for beginners at forex. Bigger or lower margins? Bigger margin means that you will make fewer trades, but you are safer in case of higher volatility. Lower margin lets you make a lot of trades, but in case of higher volatility, you are in danger to go bust.
In our opinion, the best forex brokers for beginners are the ones with bigger margins. Beginners are prone to many mistakes. One of them is opening as many positions as their account let them. Anything goes wrong, their account is usually wiped out. Bigger margins give forex beginners time to adapt. There is no hurry when learning how to trade forex.
Another sign of good forex broker is a wide range of orders. It is not about plain take-profit and stop-loss. It is about trailing stop-loss, conditional entry orders, linked series of orders. Some of them are used mainly by experienced traders, but for example trailing stop-loss is very useful also for beginners.
We discussed the spreads of forex brokers in our recent article, but we have to emphasize its importance for your success. In other words, the spread is your transaction cost. Lower transaction costs give you an edge in trading and sometimes when running tight strategy it will decide if you profit or lose in the forex trading.
Best forex brokers for beginners are …
Now you probably expect few names. Well, this is not an affiliate page. This article gave you a few good points what you should look for and what you should avoid. The conditions on the market are changing and you have to make your own search for best forex brokers for beginners at present time. Good luck.