The Best Forex Brokers for Beginners
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If you’re looking for the best forex trading platform to start trading with, you’re in the right place!
In this page about forex trading, you can find a list of trustable and regulated forex brokers. All suitable for whether you are a beginner or more experienced trader.
From this list you can choose the best trading platform to trade with.
All the best forex brokers for beginners listed in this page are fully regulated.
So you have no need to worry whether the broker is a scam or not, they are all legit platforms that are regulated by official monitoring authorities.
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There is a vast range of offers in the forex market, and whether you’re an expert trader or a novice, the most important thing is to find the top forex broker to achieve your goals!
So you need to read this if you are a beginner in forex trading!
We’ll explain to you the most important features the best trading platform and broker should have when you choose yours!
If you are from South Africa, please read our review of the best forex trading company in South Africa.
Best Forex Trading Platform for Beginners
This is a breakdown of the best foreign exchange brokers for you.
How to choose the best forex broker
First of all, we must clarify for all the beginners that a forex broker and a trading platform mean the same thing!
Today there is a number of trading platform offers and hundreds of different brokers to choose from. We have explained this on the homepage: https://tradingonlineguide.com.
But which one is the best forex broker for beginners? What should I look for?
There are a few features that every forex trader should look for before choosing his trading platform. Here are the most important ones:
- Availability in your Country
- Languages Available
- Responsive Trading Platform
- Support Service
- Deposit and Withdrawl methods
- Spread and Commissions
Let’s analyse each one of them to see what it means!
1- Does this forex broker accept people from my Country?
This is the most important step when deciding on a broker. In fact, a lot of them are based in Europe and just accept European clients. Then some are just for American forex beginners and finally there are also the best forex brokers in Australia which accept only Australian clients.
This is based on different government rules. Every country sets their own regulation rules for online trading.
Even in continents like Asia, some countries accept trading, and others not. For example in China there is a lot of regulation. So a lot of platforms are not valid there.
That’s why you must check if your broker is operating in your country.
There is also a lot of regulation in the USA. So normally American forex traders can just trade with American forex institutes.
If a person from the States opens a forex account with the wrong broker, nothing happens. The account will simply be frozen straight away. The user won’t even have the opportunity to make a deposit.
In case this happens, it’s very easy to open a new account with a U.S. Broker and to start trading with them.
One of the most important things to look for: is regulation!
Many people on the internet are asking if forex trading is a scam. This depends on the trading platform the trader picks.
In fact, the big difference in this market is between regulated and non-regulated forex brokers.
Regulated brokers are monitored by an official authority. They check that financial rules are followed, these rules are put in place to protect traders from fraud.
So non-regulated brokers, are not monitored and do not have a licence to operate. These are the ones you should avoid at all costs.
Each country has different regulation authorities. Let’s go through some now.
The most important regulation in the USA is CFTC. (Commodity Futures Trading Commission). In Canada the authority is the Investment Industry Regulatory Organization of Canada- (IIROC).
This means that American and Canadian traders should register to brokers that are regulated by CFTC or IIROC.
For the rest of the world, if a broker has the CySEC regulation, they are fully regulated. CySEC is based in Cyprus and monitors many European platforms.
However, they can accept forex clients from everywhere except the USA. This means that even a trader from New Zealand can open an account with a CySEC regulated broker.
Remember to only choose a regulated broker which has got its license from one or more international authorities. For example, the most trusted brokers have the Cysec regulation, plus another one.
Here are some of the most important ones to know.
Official Regulation Authorities
- Australia: Australian Securities and Investments Commission (ASIC)
- Canada: Investment Industry Regulatory Organization of Canada (IIROC)
- Cyprus: Cyprus Securities and Exchange Commission (Cysec)
- Germany: Bundesanstalt fur Finanzdienstleistungsaufsicht (BaFin)
- Ireland: Central Bank of Ireland (CBI)
- New Zealand: Financial Markets Authority
- Spain: Comisión Nacional del Mercado de Valores (CNMV)
- South Africa: Financial Sector Conduct Authority (FSCA)
- Sweden: Finansinspektionen (FI)
- Switzerland: (FINMA)
- UK: Financial Conduct Authority (FCA)
- USA: U.S. Commodity Futures Trading Commission (CFTC)
3- Forex Trading Platform Languages
In the past when the first trading platforms came out, there was just one language available: English.
Today the market has entered the multi-linguistic era. This means that most brokers have almost all the languages available.
This includes all the European languages, Russian and many Asian languages are available too.
Make sure you start trading with a forex trading platform in your language. This will help you to fully understand all the forex platform features. It also helps you to learn the indicators that are needed for your trading activity.
In fact, to be considered the top trading platform, a broker should offer as many languages as possible.
4- Responsive Trading Platform
How would you feel trading with a slow platform, or with one that’s not available all the time?
This could be a problem!
Most of the brokers offer a tool called Metatrader 4 for users to trade, some others have their own platform. In both cases, the main things a platform should have are: high speed and to be very responsive.
Another important factor to look at when choosing a forex broker is their App.
Every day people spend more time on their smartphone using Apps than in front of a computer. With busy lifestyles, being able to trade with an App makes things easier.
An App gives you the chance to trade every moment of the day. You can also keep an eye on your own investments with notifications.
Usually, for a broker to be considered as the best forex broker, it should have all the devices available and a well-working App.
5- Support Service
This is a very important service every trading platform must have.
In fact, the main way to communicate with the broker in case of questions is the support service.
Every trading platform has a support team behind it. They’re normally available 24/7 & ready to solve all your problems.
They are usually very responsive and within a few minutes you’ll have the answers you need.
There are different ways to get in contact. Either by email, phone or with a live chat service.
Languages are also a very important point. However, most brokers offer a support service in many different languages. For example, if a customer lives in France, they’ll be able to speak to the support team in French.
6- Deposit & Withdrawal Methods
To start trading, an important step is to make a deposit.
There are many ways to do it: credit/debit cards are the most common method. This is because it is the fastest way and the money will be in your account in a few minutes.
Bank wire transfer, is another option. It normally it takes from 3-4 working days before the money shows in your trading account.
For some countries, there’s the option to deposit using local banks and deposit systems.
Other options that can be used to make deposits include using prepaid cards and ‘online wallets’. When we say ‘online wallets’ this includes PayPal accounts and Moneybookers such as Skrill and Neteller.
The same story is for withdrawals. To withdraw money from your account, you can usually receive the funds back to the payment method you made the deposit with.
For example, if you deposited using a credit card, you can withdraw the money back to the original card. If you would like to receive the funds on another payment type, you must speak to the broker support team.
So withdrawals can be used to receive the money back to credit/debit cards, prepaid card, Moneybookers or via bank account.
It’s normal to receive the money within 4 working days for most of the forex platforms. Some of them charge a very small commission for every withdrawal, but this depends on the trading platform you choose.
All regulated brokers will let you withdraw your money.
7- Spread & Commissions
This is a very important point for every trader, because these represent the costs to pay for trading with a forex broker.
Each broker has different ways to charge its clients for their trading activity: spread or commissions.
The spread is the most common one. This represents the difference between the real price of an asset in the market and the price of the same asset in the trading platform.
Let’s see an example: EUR/USD in the real world is now at 1.17000 and by the broker the price is 1.17010. The difference between the two is the spread. In our case, the broker has a spread of 0.00010 which is 1 pip.
Usually, every forex broker applies a spread which ranges from 1 pip to a maximum 3 pips.
You can find a broker with a zero spread in the market. So they make their profit by adding a commission to every trade.
The commission can usually be from a few cents up to some dollars. It all depends on how long a position is kept open for. The longer it is, the more expensive it gets.
Beginners usually start trading on platforms with 0 commission and a low spread. More expert traders tend to go for the opposite scenario. In this case, the choice depends a lot on the trader’s goals and if they are beginners or have more experience.
Best Trading Platform for Beginners in USA
After Forex.com, another good broker option for people based in America, is eToro USA.
eToro is a well-known platform, however it was only open to user’s outside the U.S. Well this year that all changed with the launch of eToro USA, which is available to residents in America.
Currently the platform is available in over 39 States and the Northern Mariana and U.S. Minor Outlying Islands. However, the launch is still in its initial phase so it will be available in more States in the future.
The minimum deposit is just $50! This is a great price, especially for those who have more limited trading budgets.
One thing to know though is that currently the platform just offers cryptocurrency assets for trading and investment. So if you wish to trade Bitcoin or any other digital currency this could an interesting option.
Currently are no other financial instruments such as CFDs or Forex on offer. eToro USA has announced though that they’ll offer real stocks and shares later this year. And the popular social trading and CopyPortfolio options are also on their way.
So if you are based in the USA and are interested in trading crypto, eToro USA could be a good option for you. Here the eToro USA review.