How to choose the best brokers for beginners
Posted: Oct 29, 2018
Choosing the best brokers for beginners is different from making a list of the best or reliable ones. I know it could be confusing for all of you, the amateurs but I am sharing the best I could understand about forex market and my experience, I hope it helps somehow in choosing the best brokers for you at first steps into the market.
At first, I need you, the beginners, to know exactly what you are looking for from a broker for yourself. Some acts will be out of your expectation. Some points are supposed mistaken for a long time. Some could lead you the answer why you couldn’t win for a long time.
1. The most suitable, not the best@
Trading in forex is like other business, and you choose the most suitable trade partner. For beginners, I advise you not to select the ECN. ECN may give you the lowest spread, or they offer the most attractive bonuses, but the policy is usually unsustainable. Because of too many slippages and gaps, ECN is favorite of experts, and too much for newbies.
In general, the best or the largest brokers will be for experts who want to invest for a long time. However, you just started, so find who offer the best terms for you such as low deposit, easy trading procedure…The other factors such as reputation or scale should be left behind.
2. Cent or Micro accounts, not demo accounts.
Almost all brokers at the moment offer traders to do with both options: demo or real accounts. Demo accounts seem quite a convenience for new traders because you do not trade and lose in real. However, it turns out to be a bad thing for people who are inexperienced. My advice is to do with Cent or Micro account.
Demo accounts are like a plotted scenario for you to practice. The environment is way not as realistic as to what happens in the market. So when you come to real trade after too much time with the demo, you might get overloaded. Same with demo contest, winners are usually experts, and they join the contests just for fun. You might think that they are beginners like you and you got chances, too. However, I would like to tell you it’s nearly out of reach.@
Cent accounts or Micro accounts provides you trade at actual, but much lower investment than others, thus, your loss goes to the bottom. For example, you have a real account with 50USD of investment at first (the lowest deposit offered by FBS) why you can do the same thing with cent account with only 1 USD deposit (in Exness). With cent accounts, you can start to trade with 0.0001 USD lot, and your profit is allowed to withdraw. XM provides the same program, but its micro account with 0.0001USD lot.
3. Suitable terms, not best bonuses.
Welcome bonuses sound good to beginning while you are not ready to throw much money in the first lot. However, welcome bonuses are not to withdraw, and they usually come with a tight set of terms. Traders typically lose more than gain while following the terms.
As a consequence, I suggest you choose brokers who provide you terms for your good. If the brokers launch welcome bonuses, it should be a plus point.
Some terms you might need to consider when you first enter the field are:
a. Low deposit requirements.
To minimize your loss, reduce your investment. Take bonuses if available. You wouldn’t know what is waiting for you at first so don’t spend much money in any brokers at first, no matter how trustworthy they are.
Many brokers welcome beginners by shallow deposit. Terms are easy for the first stage, too (usually three months). After you find out if their policy and system appear compatible with your trading style, you can decide to move on or change to another.
b. Small trading lot requirements.
Requirements for trading cost are huge for beginners. While a standard for a transaction is 100,000 USD, you can start with cent accounts or Micro accounts with the only 0.0001USD. 95% of beginners lose at first lot, so do not risk too much. You might be lucky and win a lot, but the gamble will end up losing everything.
Find brokers with the most straightforward system and payment. Trust me. You cannot handle too many rules and guide no matter how well prepared you are. Troubles come at first with account creation, log-in operation and tons of trading guides. Thus, to simplify your job, pick brokers with easy instructions.
d. Good local support.
For troubles or misunderstanding you may get from the start, local supporters are the first to look at. Exness or XM seem the best to trade with but if there’re no staffs available to help you, do not trade with them. Moreover, staffs should speak your language and brokers have offices in your place. For those, you can approach to the best assistance.
I would like to recommend some brokers such as Exness which verifies its website in 18 languages and English and Chinese support in 24/7.
e. Trusted brokers.
Credibility is the first to think if you want to trade in the long term. However, if you are beginners, suitable conditions are the best. You might switch into many brokers before deciding the final one. Credibility is an optional factor.
f. Excellent training and coaching programs.
Some brokers may offer you training programs if you are beginners. However, it is another bonus if you find brokers with all of those requirements.
After all, I conclude the three best brokers in 2018 for beginners as below
Xm beats Exness in the list because, for me, XM is launching a cheaper lot (only 0.00001USD) for its micro account while Exness provides 0.0001 USD.
FBS offers cent account too. In additions, its offices are available in many Asia countries such as Indonesia, Thailand, and Vietnam. I think it’s a good point as it can approach a big market.
Finally, I have some advice to tell all beginners who want to give forex a try.
Firstly, you should do anything to minimize your loss. Forex is a new industry to everyone, even experts and it changes every day. Thus, do not invest too much, I know that no pain no gain but do not rush. 10% or 5% profit a month is also good.
Secondly, trade with Cent account. Demo accounts appear no suitable for beginners, Cent accounts give you the most realistic experience with the least loss.
Thirdly, to switch to other brokers at any time you want, choose brokers with easy terms and best policy for your first stage. You are not going to find the most suitable at first pick so leave yourself experience everything you could. But first make sure to minimize loss.
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