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MISUNDERSTANDINGS OF BEGINNERS IN CHOOSING THE BEST FOREX BROKERS

More and more traders start their business in the forex market but there are also more cheatings in this fields. So traders tend to find the best forex brokers in 2018 to cooperate with. When the forex market continues to develop, brokers tend to find the most reliable brokers for their trading instead. Beginners should choose their own suitable broker in each stage of their path based on their trading strategy.

Firstly, I list down here top 3 best forex brokers for beginners

XM.com          : 9/10

Exness.com     : 9/10

FBS.com         : 8/10

 

  1. Misunderstandings of beginners:

As you know that beginners are just newcomers in this field so they have some questions and even misunderstandings on some aspects of the forex market.

  • Forex demo account: Many people think that a demo account is good for beginners but actually it is opposite. Brokers offer demo account with easy trading conditions which is different from real conditions so after trading with the demo account, beginners must spend time making acquainted with the real account. So I strongly recommend that beginner should start with Cent account at the beginning. One more notice for beginners is to stay away from ECN account which is only specially for beginners. Because there are a lot of slippages and gaps when trading with this account type.

MISUNDERSTANDINGS OF BEGINNERS IN CHOOSING THE BEST FOREX BROKERS

  • High profit rate: if any traders have the high-profit rate of 50-100%, it is certain that they will lose later. The higher the profit rate, the higher the risk. So beginners should keep the profit rate from 3 to 5% monthly, which is safer.
  • Time of closing/ opening positions: Beginners should not open position within the news release time. It is much better to open/ close position 15 minutes before/ after news release time.

 

  1. Standards of the best brokers for beginners:

Beginners just invest small fund at the beginning so they don’t need to care about trading cost, etc. The most important thing in this stage is to learn and minimize their losses. To be able to do it, beginners should choose for them the most suitable broker and below are standards for choosing the best brokers for beginners:

  • Low deposit requirement: There is not enough experience, knowledge and qualification so it is better for beginners to deposit small funds to avoid a big loss. So there is no broker who wants to cheat you. So I advise you to deposit less than $100 for this stage (3 months) to make acquainted with the environment first.
  • Small trading lot: To quickly make acquainted with the environment, beginners should open as many orders as possible to get experience. To adapt this beginners’ requirement, some broker offers Micro and Cent accounts for traders. With these accounts, beginners only spend $10 for a whole month of practicing. Moreover, you can withdraw the money if you win the trading.
  • XM offers Micro accounts with which traders can open positions as small as 0.00001 Lot USD.
  • Excess and FBS also have Cent accounts whose minimum lot trade is only 0.0001 Lot USD.
  • Easy: Forex market and trading system is very complicated in the world. So beginners should simplify everything for easy trading in the future. So I give advices for beginners as below:
  • Choose the easiest brokers.
  • Trading by web trade/ web terminal at the beginning. Trade MT4/ MT5 later.
  • Deposit by Visa/ Master at the beginning because it is much easier than other payment methods.
  • Local support: Brokers should provide supports such as native languages, local offices to quickly response customers’ concerns such as login, installing MT4, 3D security of Credit Card.
  • Trusted brokers: Experts and experienced traders often invest a large amount of money, so they want to find the trusted brokers. In contrast, beginners only deposit small funds so they can trade with any brokers as long as they are easy and convenient for those traders. When having enough qualification, knowledge and experience, they will invest bigger money. At that time, they will change to a more reliable broker.
  • Good training and coaching programs: Some brokers open some weekly and monthly training and coaching courses to attract more traders. And then they ask them to invest a large amount of money. So I recommend that beginners should register account, deposit a little money, learn and then change to better brokers after training courses.
  1. Whether demo contest and welcome bonus is good for beginners?

Demo contest: Most of traders think that demo contest is organized for beginners but most of winners are experts. The reason is that experts use robot trading to win the contest. To avoid waste of time, beginners should not take part in these contest because they don’t have high profit rate like experts.

Welcome bonus: Actually welcome bonus is very good for beginners but it have some difficulties to withdraw it as well. Some brokers have hard conditions like completing enough numbers of lots to allow you withdraw bonus and profit. But this conditions often lead to traders’ losses.

  1. List of 3 best forex brokers for beginners

XM.com          : 9/10

Exness.com     : 8.5/10

FBS.com         : 8/10

XM and Exness are in the top biggest forex brokers, so they are trusted brokers. XM is a little bit better because XM allow you to open smaller positions (0.00001 lot USD). They also open many helpful training programs for beginners as well.

Exness is the biggest retail forex broker. They have Cent account with which you can open as small position as 0.0001 USD. Their advantages are the support and payment systems.

FBS also have Cent account. Their support and payment systems are very good, but they only offer good services in countries where they have offices. Most of them are South East Asian countries such as: Indonesia, Thailand, and Vietnam.

CLICK HERE FOR THE BEST FOREX BROKERS IN ASIA.

 

  1. Helpful advices for beginners:
  • Trade with Micro/ Cent account to avoid big loss.
  • Don’t deposit more than $100 for the first month.
  • Learn and follow risk management.
  • Don’t believe in high percentage of profit. The higher the profit, the higher the risk. You may win in several months or a year but later you will lose everything.
  • Don’t use robot trading from experts. Because these robot is set up with experts’ trading strategy and must be adjusted frequently. So robot trading is not suitable with beginners’ trading. Beginners should wait until they have enough qualification to use robot trading.

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Updated: October 19, 2018 — 6:09 am
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