When looking for the best Forex broker for beginners, you need to consider three main factors, which are highlighted below:
- Find out if the broker is regulated and if it is a trusted brand with user-friendly web-based platform.
- Find out if the broker offers several educational tools and resources to help the trader makes better trading decisions.
- Find out also if the broker offers easy access to top-quality market research.
Forex Brokers for Beginners
We took our time to research various CFD and Forex brokers by carrying out the following activities.
- Attending their webinars
- Opening demo accounts with them
- Watching educational videos
- Testing the usability of their websites
- Conducting market research
- Navigating Forex platforms
The information obtained helped us to determine the best set of brokers for Forex trading for beginners.
CFD is complex and there is a high risk of losing your investment consequent of leverage. Studies show that 65% to 82% of retail investors lose their money to CFD trading. Before you venture into CFD trading, it is very important to first determine if you can live with the risk of losing your money and to also find out how it works.
What is Forex trading?
Forex trading has to do with the process involved in currency exchange from one form to another. It is also called buying and selling of currency pairs with the buyer or seller making profit from the exchange rate that prevailed at that particular moment in time. Studies show that the Forex market is the largest global market and records average of $6.59 trillion traded daily as of April 2019.
What is a Forex broker?
A Forex broker offers the platform where you can place your trade in Forex. You need to first open an account with the Forex broker and deposit funds. You can then use the trading platform of the broker for buying and selling currency with margin. Forex market is open 24/5.
To learn about Forex trading for beginners, you need to know about reliable Forex brokers. The best ones are highlighted below:
- Saxo Bank
- Admiral Markets
- City Index
It is a web-based trading platform and it is user-friendly. It is, therefore, one of the best for a beginner in CFD and Forex trading. You can only find basic features on the platform, however. You will, therefore, not find in-depth research and trading tools on the platform.
It offers a web-based MarketsX platform and the platform is very easy to use. New users will, therefore, not have a problem using it. It is, however, expensive and there are also few trading tools available to traders.
This online casino platform is one of the best to consider for Forex trading for beginners. The platform won an award in 2020 because it is easy to use and offers copy-trading service too enable traders copy other traders. It offers more than 1,900 instruments, including CFDs on all the popular cryptocurrencies. However, the Forex broker is expensive. Be that as it may, it is reliable.
It is for traders that can afford up to $10,000 as a minimum deposit. However, UK traders can deposit only GBP 500 as a minimum deposit. The pricing is competitive and the trading platforms are excellent. Customer service is reliable and it also offers brilliant research services. The traders can access more than 40,000 instruments. Studies show that up too 72%B of all retail investors lose their money.
This platform offers a proprietary web-based platform and it is very easy to use. Forex beginners will find this platform to be reliable and some of its outstanding features are Freeze rate and deal Cancellation. However, the Forex broker offers only 168 instruments and the Forex market research tools are limited. The mobile app is also poor. Studies revealed that up to 73% of retail investors lose their money.
How much money do you need to trade Forex?
Some Forex brokers do not have any specific minimum deposit for the trader to start, but some do. Most of the Forex brokers accepting South African traders a minimum deposit between $100 and $250 to start trading.
What are the most popular Forex currency pairs?
The most popular of all Forex currency pairs are:
Studies show that these currency pairs are involved in up to 85% of all Forex trades.
Can you get rich by trading Forex?
Some Forex traders can get rich by trading Forex, but the majority of Forex brokers do not make profit at all. This is to say that Forex trading is highly risky. Studies show that many of those involved in hedge fund management have been able to make a lot of money from trading Forex. A very good example is George Soros that made GBP 1 billion from Forex trading in 1992.
How do I start trading Forex?
Forex trading is very easy to practice. You can start off with a demo account and this will help you to learn how to use the tools and trading platform. You can also learn about Forex trading by reading Forex-related books. It will enlighten you on how to carry out market research and technical analysis. You can then open a live account and fund it to start trading.
How to choose a Forex broker
You should mainly focus on Forex brokers that are regulated in your country. As a South African trader, you should look for Forex brokers regulated by the FSCA. Do not forget to read reviews about the Forex broker and this will help to access their reliability and inform you about their customer service, research capabilities, tools, trading cost and several other factors.
The best of the Forex trading platforms for a beginner
When looking for brokers for Forex trading for beginners, you can choose any of the ones highlighted below:
- City Index
- Admiral Markets
- Saxo Bank
While carrying out a research of best Forex brokers for 2020, we carried out in-depth assessment, rating and ranking of up to 30 international Forex brokers. Each of the brokers we assessed was rated based on 105 variables and we collected more than 50,000 words of research.
We encouraged the various Forex brokers to participate, but we also allowed them to make up their minds on whether or not to participate. We allowed each of the brokers to carry out an in-depth data profile ad also provide executive time for a meeting for annual update.
We properly checked all the data submitted by each of the brokers to ensure that they are accurate. Conclusively, the rigorous validation process we took the data collected through yielded an error rate not up to 1% per annum. This means that those who use the results of our data to make decisions about the right Forex broker to register with will have access to reliable information.
While it is possible to make a lot of money by trading Forex, you need to understand Forex trading is a very risky endeavor; this means you can make money or record losses. You can, however, be a more profitable trader if you take the instructions provided here very seriously.