With hundreds of forex brokers to choose from, it can be overwhelming for beginners looking to get started.
As a novice, there are a few key things to look out for in a broker:
- Regulated & well-established – you need to choose a platform that’s safe. If a broker has been around for 10-20 years, and is regulated by someone like the Financial Conduct Authority, you should be in good hands.
- Unlimited demo account – You don’t want to be rushed to open a live account by having a time-limited demo account. All of the brokers in this article offer unlimited live accounts, allowing you to get comfortable with their platform in a demo account without risking real money.
- Minimum deposit – As a novice, you probably won’t want to deposit a large amount of money straight away. As such, you should look for a brokerage that allows you to start by depositing whatever amount you’re comfortable with. We’ve listed each broker’s min. deposit below.
- Mini/Micro accounts – If you want to make small trades you may want to trade in mini lots (10,000 units of base currency) or micro lots (1,000 units of base currency) instead of standard lots (100,000 units of base currency). As such, you’ll need to check that the brokerage offers a mini account or micro account.
While fees and spreads are important to consider, these should be secondary to finding a broker that is reputable and offers the right account type for you. Below are some brokerage accounts to consider.
5 Forex Brokers for Beginners
AvaTrade was established in 2006 and is thought to be one of the largest online Forex brokers in the world today. Forex, CFDs and stocks are all available to trade.
AvaTrade is regulated by MiFID and the Central Bank of Ireland (as well as other governmental bodies). A distinct feature of this broker is that a selection of venerable trading platforms is offered (including MetaTrader 4).
Thus, the beginner will be able to determine which is the most appropriate for his or her unique needs. It should also be noted that all of these platforms are available; the type or size of the account is not relevant. A truly massive educational centre is also found directly within the site. This section will include helpful tools such as:
- Video tutorials
- Trading guides
- Live market updates
- Economic calendars
In many ways, this section is ideal for those who require an in-depth look at the industry before committing to any single position. The levels of customer support are also excellent. Live chat, telephone and email are provided and AvaTrade caters to nearly 20 different languages. This support is available 24 hours a day.
For more information, you can read our in-depth AvaTrade review here.
eToro is an excellent platform for those who are just entering into the fluid Forex markets. Their “no-frills” concept attracts traders of all skill levels and three different trading systems can be used. However, a distinctive feature of eToro is known as their “OpenBook” system.
This is much like a social media site embedded within the portal itself. Beginners have the possibility to follow professionals in a real-time scenario. By understanding when certain trades should be executed (and when they should be avoided), a great deal of second-hand knowledge can be gained. There are few other brokers which offer this level of feedback. Finally, the customer services which are supplied are quite robust. These include live chat support, email and a series of dedicated phone numbers. Multilingual representatives are available (19 different languages are currently offered).
For more information, you can read our in-depth eToro review here.
If you’re looking for something more professional, ETX Capital are a very reputable broker regulated by the Financial Conduct Authority in the UK. Having been in business for over 10 years, ETX Capital are well-established and provide great support for their clients.
Their platform is very easy to use, however it’s not quite as modern or ‘social’ as eToro’s. If you’re looking for something a bit closer to what a professional trader might use, ETX Capital are a good option to consider and they offer a free demo account that you can practice with.
As the name suggests, this is an excellent all-around trading resource for those who are learning the intricacies of the Forex market.
Commodities, indices and stocks can all be accessed while an impressive number of currency pairs are available. However, one of the most interesting windfalls of Markets.com is that a wide variety of information is always updated. This includes market analyses, current news, how-to videos and commentaries from professionals in the industry. This is quite beneficial, for the trader would otherwise be forced to follow multiple news sources (potentially missing out on a winning position). Customer support is provided in more than 15 languages and as there are office located around the world, this service operates 24 hours a day and seven days a week.
One of the primary benefits of XM.com is that its “Micro” trading account is perfectly suited for those who are making a foray into this changeable marketplace. A minimum deposit of only five dollars is necessary to begin trading. Also, a software package known as MetaTrader 4 is utilised with XM. This is one of the most user-friendly and accurate systems currently available; a valuable asset to be enjoyed by the novice.
Should one first wish to try XM out before making a financial commitment, a demo account can be opened which will contain $100,000 dollars of “virtual” money. XM is regulated by BaFIN, the Financial Conduct Authority and CySEC (the Cyprus financial authorities). Therefore, security and transparency are never issues.
For more information, you can read our in-depth XM Review here.
These are a handful of what many consider to be the best Forex brokers for those who are just entering into the industry. Each will provide the clarity and insight which are necessary to make the best decisions at the most appropriate times. With the addition of valuable educational materials and even social media systems, beginners are now able to take advantage of the wide range of services which are offered. Indeed, becoming a lucrative Forex trader has never been easier.