Beginners are the ones who are constantly being filled with unanswered questions about forex trading and that’s why finding the perfect broker is the most important thing that you could do as beginners. To answer some of your questions regarding this matter, this article will be about the criteria with which should you choose your broker and some of my professional advice.
- List of the best brokers for beginners
These are the brokers that I consider to be the current best for beginners’ needs. The perks of each broker are as follow:
XM offers the lowest requirement for opening a new trading position (0.00001 USD per lot). They also have amazing coaching services and other astounding benefits.
Exness has their own exclusive Cent Account which is the best type of account for beginners to start with.
FBS offers relatively the same kind of service as XM and Exness, however their targeted customer groups are mostly those from South East Asian countries such as Indonesia, Laos, Vietnam, and Thailand.
- The perfect broker
Now, the question to ask isn’t really who the best perfect broker out there is, but rather which one of them is the perfect broker for you. Your perfect broker is the one that’s suitable to your trading needs, your trading tactics and styles as well as your location. And since those conditions are varied from person to person, it’s hard to point out a perfect broker for everyone.
- Standards for choosing the perfect broker for you
As I have mentioned above, there’s a lot of things to consider when it comes to choosing a broker. To be more specific, here’s my own standards for choosing a broker:
– Low trading lot and deposit requirements
– Good training and coaching programs.
For me, trustworthy is the very first thing that I’d look for when I’m looking for a broker. Although for beginners, this might not seem to be that big of a deal since beginners’ main goal is to learn the way the market works, not to make profit by investing a lot of money like experienced traders.
Low trading lot and deposit requirements
This is an especially important standard that beginners should consider when first choosing a broker. Low trading lot and deposit requirements mean that you could save lots of money in the long run.
Good local support and training/coaching programs
Coaching program is offered by most big brokers to relieve the difficulty that most beginners face, that’s why it’s essential for beginners to find a broker that offers this program but not as mandatory since you can always learn by yourself. But still, it’s always better to have a broker that offers great service as well as coaching/training program so that you could learn quicker and more efficient.
- Should beginners get welcome bonus?
It goes without saying that a little bonus amount of money doesn’t always hurt. However, welcome bonus is known to come with strict withdrawing policies. Basically, you’d have to do a little bit of actual trading before being able to withdraw the bonus. After all, these policies serve as a mean to prevent potential bonus exploiters who exploit the bonus welcome to make a quick buck.
- Common misunderstandings and mistakes among beginners
Having browsed a lot of beginner guides out there as well as knowing many people who’re new to the whole forex trading thing, I notice that most of them started their trading career with demo accounts as a mean to learn quickly and more efficiently. I must say that this simply is not the case since demo account is advertised by brokers to have idea trading conditions which are simply non-existent in the real trading market. To learn the actual trading market, you’d need an account which is under the real trading conditions to better learn to minimize your trading costs and develop better trading tactics, which is why it’s in my professional opinion that beginners should choose the types of trading accounts such as Micro or Cent account in order to have a real perspective of the trading market.
One other thing that I’d like to say is that most beginners seem to have the wrong idea about their potential profit. Experienced, expert traders don’t get rich overnight and get huge profits all the time but they instead gain slow but stable profit. After all, traders are the one who often have to deal with large amount of money so it’s best that you should stay cautious to avoid huge losses.
- My personal advice
Use Micro/Cent account to trade
Deposit less than $100 for the first month
Do researches about risk-management.
When you’re just getting to know the trading market, the rational thing to do would be to start small by depositing no more than $100 and do your own researches about the ways to manage trading risks. These things might help in the long run as your funds are limited and you need to save as much money as possible.