There are a lot of things that 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 the 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 at 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 that forex brokers have to provide to clients.
Everybody needs to get used to dealing interface before the 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 positions, 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 also open with a 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.
Biggest forex brokers usually ask for thousand as account opening amounts. On the other side, spread betting companies let you open accounts also with five hundred, but their service is limited.
Currently, some forex brokers let you start with $100 at the beginning. That is a good news when you are considering try-out at forex.
Minimum trade notional
Nobody at the 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 the right strategy and approach.
Often, tests are made with smaller notional trades. Forex starter should not risk ten thousand in a deal, and not in a test trade.
Finding a forex broker that has the lowest trade notional without fees is essential for the early stages of forex trading.
There is a big discussion on the market which is more suitable for beginners at the 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 deals, 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 lets them. Anything goes wrong, and 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 a 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
Now you probably expect a few names. Well, this is not an affiliate page.
This article gave you a few good points about what you should look for and what you should avoid. The conditions on the market are changing, and you have to do your search for best forex brokers for beginners at present.