Best Forex Broker For Beginners - 2020 (Complete Guide)
Forex Trading is one of the most challenging and profitable investment ideas that are significantly increasing among forex traders and investors day by day in the world. Lots of forex brokers offer forex trading but finding the best forex broker is really hard. According to the statistics of Bank for International Settlements reports, globally traded in foreign exchange markets estimated $6.6 trillion per day in April 2020. In April 2016, it traded up to an average of $5.1 trillion per day.
Do you want to search the best forex broker for trading? OK, guys, you come in the right place. We did vast research about every forex broker's fees (including spreads and commissions), trading platforms, customer support, trading educations, currency research, Trading Instruments, trustworthiness, and more. Here included the top 10 best forex brokers with a complete guide (Updated-2020) for trading. We recommended the list to choose any of these for beginners and experienced forex traders who are looking for the best forex broker.
Top Forex Brokers List 2020 :
|Visit Broker||Rank||Broker Reviews||Location||Minimum Deposit Amount||Deposit Bonus||Payment System||Rating||Create an Account|
|9||Limassol, Cyprus CySEC (Cyprus)||Cent and Mini Account No Limit, Classic - $2,000 and ECN - $300||No Bonus||9.04||Real Account Demo Account|
|10||Maina Court, Plot 252, Herbert Macaulay Way, Abuja, Nigeria||$1.00||Depend on Promotion Offer||9.54||Real Account Demo Account|
|8||Level 34, One Canada Square, Canary Wharf, E14 5AA, London, United Kingdom||$1.00||No Bonus||9.73||Real Account Demo Account|
|6||16 St Clare Street, London, EC3N 1LQ,United Kingdom||$200||No Bonus||9.9||Real Account Demo Account|
|7||HF Markets (SV) Ltd. Suite 305, Griffith Corporate Centre, Beachmont, Kingstown||$100||100%||7.0||Real Account Demo Account|
|4||No.5 Cork Street, Belize City, Belize, C.A.||$5.00 for Standard and Micro accounts and $50.00 for Ultra Low accounts||15%||9.97||Real Account Demo Account|
|5||Level 10, 90 Arthur St, North Sydney, NSW 2060 (Australia)||$10||No Bonus||9.98||Real Account Demo Account|
|2||13-14 Basinghall str.,EC2V 5BQ(UK)||$100||No Bonus||9.99||Real Account Demo Account|
|3||Level 5, Exchange House, 10 Bridge St, Sydney NSW 2000 (Australia)||$100||No Bonus||9.99||Real Account Demo Account|
|1||Level 6 309, Kent Street Sydney, NSW 2000 (Australia)||$200||No Bonus||10.00||Real Account Demo Account|
|Rank||Broker Reviews||Location||Minimum Deposit Amount||Deposit Bonus||Rating|
Finding the Most Popular Forex Broker for Beginners
1. Trading Instruments
It is good to diversify. That means investing in several markets at once. We provide a wide range of instruments and markets. They include CFDs on commodities, cryptocurrency, stocks, indices, and ETFs.
The best forex broker companies in the world, try their best to make sure that they have as many instruments as possible, for their clients.
For a client, having access to many instruments allows you to diversify. More often than not, many traders lose their investments entirely because they did not expand their investments. Having your funds distributed to different trades in various markets will allow you the freedom to have the potential of making more profits and mitigating the acute effects of misfortune.
2. A Variety of Accounts
The best forex broker offers several account types for you to choose from. Accounts have different trading styles. Some have higher protections, better leverages, and spreads and different instruments.
As a trader, you must pick the right account for you. The accounts are usually created in a way that allows the traders to choose one that works for their particular style of trading. Your entire strategy is hinged on the account type.
With some accounts, your style of trading may not bear any fruits. To understand them, let us briefly look at what they are and what they entail.
- Micro/Mini Accounts- These types of accounts are suitable for traders with small amounts of capital. You can enter the market with a minimum deposit of $100 or less. The low entry barrier is a good thing, but once you are inside, you will be restricted to trading nano and micro-lots. It controls your risk levels and is perfect for beginners in trading
- Standard Accounts- Also called Classic, Intermediate and other names, this type of account has a minimum deposit of between $100 and $500. You can trade mini lots with it. Some rare accounts can allow you to trade standard lots. They are a broker’s regular offering.
- VIP/Professional Accounts- The name implies you need accreditation to enter, but that is not the case. They have a high minimum deposit of around $10,000 and allow you to trade standard lots. These accounts are usually ECN types. In Europe, the rules are a bit different and require documentation and credentials for you to get high leverages with these types of accounts.
Aside from these, we also have the demo accounts and the swap-free accounts.
We recommend forex reviews to search for a top forex brokers with the lowest spread. However, the brokers might advertise a low spread and not have it. In most markets, the aim for most traders is to look for the lowest spreads because they allow you to trade cheaply. That is why the best forex brokers offer low spreads.
The trader wants to have a profitable strategy that will allow them to lower the transaction costs, as much as possible. Since the spread is the difference between the bid and asks prices, standard accounts will try to charge as much as they can without oppressing the trader too much.
Just like you, the broker is trying to make money. As a trader, unless you have an ECN account, you cannot just buy or sell a currency. The broker delivers quotes from both sides of the market. The difference between the two prices is profit, and some of it has to go to the broker.
4. Optional Leverage
We trade the forex market on leverage. Often, the best forex broker offers leverage in different levels. It is up to you to know which level is suitable for you. Leverage is borrowed capital to increase the potential returns.
Typically, the leverage in forex exceeds the invested capital several times. Leverage sizes are not fixed in all companies and depend on the trading conditions provided by specific brokers. How does one know which is the perfect leverage? The most popular leverage is 1:100.
However, there is a problem with leverage if it is too high. Yes, you have the potential to make so much money. Yet, you also have the potential to make huge losses that will leave you gasping for breath.
The best thing to do is not rush into using too much leverage. If you can avoid it entirely and go for margins, you will be safer. The point is, to do only what you know you can do. Leverage should be provided so that when you know you are ready to use it, you can access it quickly and make money.
5. Order Execution
Low spreads are useful when you start with a broker. However, having your orders executed at the asking price is even better. In the forex market, we have two types. They are; Instant Execution and Market Execution. The top forex brokers provide this.
The difference between them breaks down like this:
- Execution takes 3-5 seconds
- You could get requites
- The execution is dependent on the market
- The access to the market is through a dealer
- The broker sets the price
- There is no opportunity to open the order at a better price
- The trading strategies, like hedging, scalping, news trading and the use of EAs is limited.
- Execution takes fractions of a second
- There are no requotes
- The execution is guaranteed
- You have direct access to the market
- The price is provided directly from the market
- There are opportunities to place an order at a better price
- There are no limits to strategies.
As you can see, there is no reason why you should not get to enjoy execution speeds that are high and have all the opportunities to place orders at a better price and trade with no limits to the strategies you can use.
6. Scalping Availability
The best fx broker does not have limits on trading styles. Scalping brokers do not set a minimum period to wait between the market price, the take-profit or the stop-loss. To make this more straightforward and easier to understand, scalping is a strategy that involves the skimming of small profits regularly by getting in and out of multiple positions quickly during a trading day.
In the forex exchange market, some of the brokers do not have provisions for that. For that reason, you should always check to see that this strategy is allowed before you sign up. There are several advantages for you when scalping is allowed.
Scalping is quite similar to day trading because you will open a position and then close it again during the current trading session, never carrying a position to the next session or overnight. In day trading, however, you may want to take a position once or twice or a little more than that per day.
Scalping has a frenetic feel to it because you will have to trade multiple times a day during a session. The average time of scalpers in a trade lasts about 5 to 30 minutes. Scalping requires the use of tick charts and one-minute charts.
As you will find out, you can make more money by using these strategies, after you are confident enough about how they work.
7. The Trading Platforms
You need to work with a broker with several platforms. Having these choices will allow you to pick something that you are comfortable with. Individual needs are a top priority for the top forex brokers. Platforms allow you to do more as a trader and the versatility is very important.
To get the full picture, let us look at some of the most well-known platforms used in forex trading and understand why they are well regarded.
- MetaTrader 4 from MetaQuotes
MetaTrader 4 (MT4) is a forex platform that was specifically designed for use in FX trading. Retail forex is not an old industry, and at the time it was breaking into the mainstream market, it did not have reliable third-party software available until MT4 arrived.
The platform is the most reliable and most well-known by many traders the world over. It is most likely the first one you will use in your foray into the world of forex.
- MetaTrader 5
The descendant of MT4, MT5 is the new update that will replace the predecessor. Also, from MetaQuotes, this program has proven to be even better than MT4, and the only reason why it has not yet been widely adopted is the fact that the differences are not very big. Some of the best forex brokers offer it in the market.
One of the most cited reasons to have it is that it is thought to be better and can handle more massive amounts of trading instruments without problems that sometimes make MT4 freeze. MT5 has a Supreme Edition Add-On that increases the functionality and takes it to new levels.
Spotware developed this platform for forex traders. It may not offer advanced charting and trading features, but it is similar to MT4 and 5. With cTrader, you cannot customize the indicators and have limitations when using third-party software.
cTrader is available in a web browser; it is seen as the pioneer into the realm of mobile apps, something that was not the norm until quite recently. This platform is available for Android and iOS devices only.
Since 2004, this platform has been around and is designed for active forex, stock and futures traders. It has advanced charting and automated strategy development and even simulations of traders. Those who want to execute from the platform must buy a lifetime license or lease the program quarterly.
The reason why MT4 and MT5 are so successful is that they are free to the trader, via the broker. With some of the brokers, additional trading tools like the Supreme MT5 Edition, come at no added cost.
Other programs include eSignal, IRESS and ProRealTime.
8. Regulation and Security
Read as many forex reviews about the top forex brokers as you can about a broker before you sign up with them. You need to find out if they are regulated or not. Knowing information like this will allow you to pick the right one. Choose the brokers with diversified European bank accounts especially.
You should always check to see that these major regulators regulate them:
- ASIC – Australian Securities and Investments Commission
- BaFIN – The Bundesanstalt für Finanzdienstleistungsaufsicht (Germany)
- CFTC – Commodities and Futures Trading Commission (United States)
- CySec – Cyprus Securities and Exchange Commission
- FCA – Financial Conduct Authority (United Kingdom)
- FFMS – Federal Financial Markets Service
- FINMA – Swiss Financial Market Supervisory Authority
- FMA – Financial Market Authority (Austria)
- FSA – Financial Services Agency
- FSB – Financial Services Board (South Africa)
- Financial Services Commission – BVI
- Financial Services Commission (FSC) – Mauritius
- IFSC – International Financial Services Commission
- FSP NZ – New Zealand Financial Service Provider
- ISA – Israel Securities Authority
- MFSA – Malta Financial Services Authority
- SEBI – Securities and Exchange Board of India
- VFSC – Vanuatu Financial Services Commission
- UAE – Abu Dhabi Central Bank
It is easy to do that as all you need to do is search for their name or their license number and see if the broker is ensured.
9. Customer Service and Education
Pick the best forex broker who will be there when there is a problem. They should be reachable 24/7. You need a reliable forex broker. Check out forex reviews to assess customer service. Many times, you will be faced with issues that you may not be able to deal with alone. That is when you will need the broker to be available with the answers you want.
Find the forex broker who has educational material in case you need to learn something. As always, never start trading until you learn everything. The forex market is nothing if not competitive. You would be surprised how many hopeful people join, only to realize that they do not have the forex education it takes. A lot is going on and staying on top of it is difficult.
Final Thought, All are excellent choices, and the most important decision is to choose the best forex broker where you want to trade. If you already decided on any of these, select to go to your winner and take the next step in your trading journey. If you need any help or any things that you want to tell, let’s know in the comments section.
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