If you thoroughly research into forex trading, you will find out that ECN brokers are not suitable for the beginners like you. You should know that on each stage of trading paths, there is only one perfect type of brokers for you. If you have difficulty in finding out the perfect brokers for the beginners, this article is definitely for you.
Here is list of best forex brokers for beginners (click here for details)
- The beginners’ misconceptions:
Most beginners assume that demo account can bring a lot of benefits to them. However, in fact, the beginners cannot learn much about forex trading when practicing with demo account. As I said before, Cent account is the perfect choice for the beginners.
The beginners shouldn’t trade with ECN brokers. Due to various slippages and gaps, 95% of the beginners. The beginners are advised not to spend too much money investing in forex trading at early stage. They should keep the profit rate at about 3 to 5% per month instead of over 10%.
The mistake that all beginners make is to open positions within the news release time. The fact is all experts only open/ close positions 15 minutes before/after the release.
- The beginners’ misunderstandings about the perfect brokers:
It is obvious that all beginners want to trade with best forex brokers. However, in forex trading, you cannot trade with only one broker for entire trading career. On each stage of trading, you must do business with different brokers. To choose the most suitable forex brokers, the beginners must take some factors like their trading strategies, experiences and trading conditions in their country into account. The target of the beginners at early stage is to learn and minimize loss.
- The standards that the beginners should know to find out the most suitable brokers:
The beginners should do business with the brokers that can satisfy all following criteria:
– Low deposit requirements.
– Small trading lot requirements.
– Good local support.
– Trusted brokers.
– Good training and coaching programs
In the early stage, the beginners will be offered the best trading conditions by the brokers. I will advise you to deposit less than $100 for the first three months. You don’t have to be worried about being cheated because there is no brokers will deceive you just to get small fund of deposit.
Why small trading lot is the most important?
It is important that you keep positions small at the beginning. You can open positions as small as 0.00001 Lot USD with Micro account or 0.0001 Lot USD with Cent accounts. Besides, these accounts don’t require minimum deposit, so you can deposit whatever amount you want. Additionally, you still can withdraw your win money. There are some brokers like XM, Exness and FBS which offer the beginners Micro account and Cent account.
Why “Simple trading system” is important for beginners?
To develop in a complicated trading system like forex market, the beginner should choose the broker which have simple trading system. The beginners should:
– 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’s much easier than other payment methods.
Local support brokers are essential for the beginners
Local support means supporters must speak your native language. Forex trading is very complicated. Consequently, you will get into some stupid troubles such as: login, installing MT4, 3D security of Credit Card… It is convenient that your supporters can explain the problems to you in your mother tongue.
Even though forex traders should do business with trusted brokers only, the beginners can trade with any brokers provided that they are convenient for those traders. No brokers will cheat the beginners, because their deposits are just small funds, about $10.
The beginners can invest bigger amount of money and trade with reliable brokers, after becoming experienced in forex trading.
Good training and coaching programs
The beginners should looking for the brokers which can provide weekly or monthly training program. The beginner can register an account to learn about forex trading and then change to better brokers after the training courses.
- List of 3 best forex brokers for beginners
XM and Exness are the top biggest forex brokers, so they are trusted brokers. XM can offer smaller positions (0.00001 lot USD) and many training programs to their clients.
Exness is the biggest retail forex broker. They have Cent account with which you can open as small position as 0.0001 USD. Exness’ support and payment systems are highly- quality.
FBS also has Cent account. Their support and payment systems are very good, but they only offer good services in South East Asian countries such as: Indonesia, Thailand, and Vietnam where they open their offices.
- Why is demo contest not good for the beginner?
According the research I have done, all the demo contest winners are professional Chinese, Thai and Indonesian traders whose profitable rate are over 10,000%. To win demo contest, most of them are using robot trading. Obviously, beginners cannot get high profit rate like these winners, so you had better not dream of winning demo contests.
Therefore, the demo contest is just time-consuming. Besides, demo contest trading strategy which is focusing on profit and ignoring risks, is opposite to the normal trading strategy, so demo contest cannot help you to practice trading.
- Should beginners get welcome bonus?
The beginners can easily register welcome bonuses but it’s very difficult for them to withdraw money. You only can get bonuses after depositing and trading enough number of Lots. Sadly, these conditions often make you lose money.
- Advices for Beginners:
Trade Micro/Cent account.
Don’t deposit more than $100 for the first month.
Learn risk management.
You shouldn’t deposit tens of thousands of dollar and believe that you can get very high percentage of profit. Even though it’s easy to get that profit rate, but the higher the profit, the higher the risk. The beginners might win in some months or even some years, but eventually, they will lose everything.
Don’t use robot trading. Robot trading is only suitable for experts. To win, the experts have to frequently customize these robots to follow their trading strategies. There is no robot that can win forever. Let’s trade manually until you recognize that you need some automatic tools to help you with some parts of your trading processes.