BRKV - It’s good to know that you are connecting to us through the phrase “perfect forex brokers for beginners” that you have been looking for recently. “Perfect one for beginners” instead of “the best brokers” shows that you know where you at and what the best thing for you is. Absolutely you have noticed that such brokers like ECN do not share the same goals with you as well. Regarding to these we can say that you take the trading career seriously. In order to reach this you might have studied about forex trading a lot. You should also prepare your mind that you will have to go along with different brokers upon different stages throughout your trading path. For each phase during the long way, there is only one particular broker satisfying your demands. Here are some perfect forex brokers for beginners recommended by us:
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1. Beginner’s confusions
One of the most common mistakes of new traders is believing that they need forex demo account to begin with. This is completely wrong and people should put it out of their mind immediately. I have to point this out once more in case you are totally new that Cent account is the most sufficient one for beginners as I stated in my article “Cent account is the best account for beginners”. As we all know that demo account is a very good one but it does bring nothing to newbie but bad effects.
As I said above if you are not an expert yet in this major, please do not ever consider ECN account. ECN is unstable with very high rate of slippages and gaps. The advice here is that do not put too much money in early stages because 9 out of 10 of newcomers will certainly have a loss.
50% to 100% is a common profit rate to most of traders, some even hit the point of 10,000% but I’m sure with you regarding my experience with big brokers that 99,9999999% of them will get nothing in the end or we can say they will lose everything. The rate which is over 10% is dangerous and traders probably have to return all the money back if they keep going with this rate. An ideal rate per month is 3% - 5%.
In addition, another frequent misunderstanding of beginners is that trading depends on the news and they must open positions within the news release time. In fact, traders on expert level do not do the same, they only take actions about 15 minutes before or after the release time instead.
2. Perfect brokers for beginners and the stereotypes
People usually say that you learn from loss and it’s true. When I put my very first step into forex, there was a thought stuck in my mind that my partner must be the best brokers ever. And I lost a huge amount of money just to realise that I was wrong. There is no trader called “ the best” but only “the most appropriate”. How to choose the one who fits you the most depends on different factors such as your trading plan, your country or language, your experience, etc. What you should aim to in this stage is not gaining but minimizing loss as much as possible.
3. What makes a perfect broker for beginners
As I have just stated, the main targets that all beginners should concentrate are learning and trying not to lose too much money. So their partner should share these qualifications below:
- Low deposit requirement
- Small trading lot
- Keep things simple
- Good local support
- Good training & coaching programs.
Low deposit: This factor distinguishes types of traders, what experts really concern about brokers are credit, trading cost, and the quotes quality while beginners do not have to worry about because there is no broker want to cheat such a small amount of depositing money. Brokers are going to offer you with the best because in this first stage they want you to trust them completely. The important lesson is that do not put more than $100 on depositing in the first 3 months so that you will not have to worry about the trading cost.
Why small trading lot could save you?: I do not want to keep repeating this not-so-interesting phrase but I have to remind you all once more that “95% of beginners will loose” and it may happen several times. Don’t be a daydreamer in such practical major like finance. To minimize your loss means to put money appropriately. In fact, 100,000 USD is the standard lot but in my opinion it’s too high for the newcomers. However, brokers with Micro accounts from XM can help you in this situation by opening positions even with only 0.00001 USD. In addition, Cent account by Exness or FBS is also a good consideration with the minimum lot trade from 0.001 USD only.
One month of practicing trading with Micro or Cent accounts costs you only $10. Moreover, you can deposit with any amount of money you want due to there is no minimum point for depositing.
Why simple is important?: Forex trading is a complex skills itself as well as the system behind. So keeping everything simple is a good strategy for beginners. For those who put their first step into Forex, brokers trading systems seem like a huge mess. My advices for beginners include:
- Go with a easy partner broker
- Web trading or web terminal before MT4/MT5
- Visa or Master should the first priority to deposit through due to the convenience rather than others payment methods.
Local support brokers are necessary: Why local but not anything else? Because local supporters speak your mother tongue. A supporter speaks the same language with you may help you to understand things easier and faster which also help to avoid lots of risks such as common problems such as login, installing MT4, 3D security of Credit Card, etc.
Reliable brokers: As mentioned before, the reliability of a broker is the first priority to experts but it does not matter that much to the newcomers. We must consider carefully before go along with any broker but in fact there is no one want your $10 deposit so if you are beginners, you do not have to concern about this factor. Just choose the broker who makes you feel comfortable and convenient until you have got all the experience or fund you need and you want to make a bigger step.
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Training & coaching programs: Another advantage that beginners may take from brokers is learning from their usual courses for their clients. Most of them may require you a big amount of deposit money but remember what I have told you. There are thousand of brokers out there always willing to help without that risks.
4. List of 3 brokers that beginners must know:
You do not have to concern about the reliability of XM and Exness because both of them are the biggest forex brokers. I also appreciate XM due to their allowance to open smaller positions (0.00001 USD) and their frequent training programs.
On the other hand, Exness also lets you to open small position from 0.0001 USD with their Cent accounts but what really makes them stand out from the rests are their support and payment systems. You can also see more information about Exness account here.
FBS is also a good choice with Cent accounts, good support as well as their payment system. However, their geographical range is quite limited within South East Asia countries such as Indonesia, Thailand and Vietnam.
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5. Demo contest - Yes or No?
This is a very popular question among new traders and most of them get it wrong. In fact, only professional traders or experts win. According to my recent research, Chinese as well as Thai and Indonesian had the highest rate of winning among all. The profitable rate of over 10,000% absolutely points out the true that they had the support of robots. You may get my idea now, do not waste your time on these because it might affect badly to your strategy. These contests focus on profit without risks while beginners need learning.
6. Welcome bonus – Good or Bad?
Actually this is not a concern that beginners should pay attention to. You can not say it is good when your broker offer you welcome bonus and vice versa. Even when you have a good amount of bonus it is withdrew with conditions such as certain deposit amount or number of Lot which is risky than anything else and usually lead you to big loss.
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7. Key points for beginners
Let’s sum everything up:
Go with Micro or Cent accounts.
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Keep the deposit amount under $100 in the first months.
Risk management skill may help you.
Never let high rate of profit commitment make you blind and throw all your money out of the window. Remember that high profit rate goes along with high risky rate. You might see people earn a bunch of money within months but I’m sure with you most of them will lose all later eventually.
No robot, please. Do not believe in advertising like getting hundreds percent of profit monthly with those bots. They actually work but only for professional trader because they know what they are aiming to and then customize the bots to fit their own strategies. In addition, they have to keep modifying them constantly. Keep doing things manually until you know exactly in which process you need support from machine.
Hey there, this is Fanara Filippo. I’m the author of this article and I’m currently collaborating with Brokerreview.net, or BRKV in short. My articles are mainly for forex traders from Thailand,
Indonesia, India, Bangladesh, and South Africa.