Are you beginner to trading, who looking for the most ideal forex brokers and recognized that the best forex broker not mean the most appropriate for beginning trader? If yes, this topic is for you. In the term of forex trading, seriously researching and seeking for a suitable broker is an important part whereas ECN Brokers is neither a good one for you. But, changing brokers would be a part of your trading path. Depends on your stage of trading path, there is a broker that meet your circumstance. For beginners, there is a list of best forex brokers.
- Beginners’ misunderstanding
Whereas it is believed that Forex demo account is an appropriate option for beginners, it is completely untruth. Cent account, which is explained and discussed in the Cent account article, is the beginners’ perfectly ideal account. For beginners, a demo account not only inapplicable, but it would cause adverse effects.
It is risky for beginner to start trading with ECN account due to its volatility. So it is better for beginners to avoid ECN account as it is only best for experts. Great slippages and gaps cause lost for 95% of beginning traders at the early stages. Surely you can get 50% to 100% profit, but the final win up to 10,000% of numbers of traders is 99.9999999% of them would lost all together. For most of small traders, a monthly profit rate from 3% to 5% is a great idea. Keeping higher than 10% profit rate will cause the loose.
The common thought of beginning traders which their opening positions would accord the moment the news released is properly wrong. Releasing time of the news is not trusted to be traded by entire experts. Their closing or opening positions decisions will be implemented before or after the news released respectively.
- Incorrect information about the flawless brokers for beginner traders
After some failures and losses as I started my first forex trading experiments, I recognised that I was wrong in terms of thinking that the top forex brokers are a must for starter trading. There is nothing called “Best” in the forex trading sphere. The only applicable term is “the most suitable”. Regarding to different aspects such as trading strategies, experiences, or countries trading conditions, you have your choice of brokers. The target for a starting stage is to learn and minimise the loss as 95% of beginner traders will lose.
- Beginners’ brokers standard of perfect
As targeting a learning experiment and minimising the losses explained previously, the beginners’ perfect brokers standards include:
– Low deposit requisite
– Acquiring small trading lot
– Good local support
– Reliable brokers
– Qualified training and coaching programs
While experts aware seriously of brokers; credit, trading cost and quotes quality, beginners are contrary due to their minor deposit funds. So, brokers do not want to defraud these beginners. In the early stage, beginner traders are fostered and brokers will give them the greatest trading environments. As the early stage (about 3 months) you don’t aware of trading cost due to small amount of trading transactions, a deposit of less than $100 is intensively recommended.
How important is a small trading lot?
Apologize for repeatedly recapping the negative statement that “95% beginners will lose”, I would like to save you with a sensible and practical manners. At first start, your open position should be as small as possible in which standard of 100,000 USD is too much. However, there are brokers, such as XM offers Micro accounts and Exness and FBS provide Cent accounts where you can trade with a minimum of 0.00001 Lot USD.
By practicing trading with Micro and Cent accounts, your deposit only need $10 and it is also able for withdrawal of win money. Furthermore, as minimum deposit requisite is unlimited, the deposit amount is your own decision.
How important of the easy for beginners?
The trading system along with forex itself are all complex. Hence, beginners would better to follow the ideal strategy is to make everything simple. Regarding to the complexity of majority of brokers’ trading systems, I recommend beginners that:
– Pick the simplest brokers
– Beginning trading with web trade/ web terminal. Do trade by MT4/MT5 later
– Start deposit by Visa/Master as it is the easiest payment method compare to others.
Brokers with good local support are essential for beginners
Local supporters must support you at your own language. As per complicated of forex trading, it causes silly matters such as login, installation of MT4, Credit Card’s 3D security, etc for beginners like I was. So you are. I highly recommend that enquiring supporters speaking your language would help process much easier and quicker.
Whereas the top requirement of experts is trusted brokers, it stands in fifth position for beginners. It is suggested that we should only trade with trusted brokers. But, in fact, beginner traders who top up ten dollar deposit do not need to aware about being cheated by brokers. So, as long as those brokers are simple, advantageous and easy, beginners can trade with them.
When the experience and knowledge increase thoroughly, a higher amount of investment should be trade with other highly ranked trusted brokers.
Qualified training and coaching programs
It is ideal to work with brokers providing regularly training program for their client, says weekly or monthly. However, if these brokers are not listed as trusted forex broker 2018, you should not deposit a large amount of money even they acquire you to.
With a small amount of deposit money and a registered account, you are able to learn about trading through training courses and then move to more reliable brokers.
- Top 3 brokers for beginners
As the highly ranked top forex brokers, XM and Exness are reliable and trusted brokers. XM is considered to be a slightly better option because of its acceptance of smaller opening position, in particular (0.00001 lot USD) and major training courses.
Exness, the largest retail forex broker, implements Cent account with an opening position as small as 0.00001 lot USD. You may have support and payment system advantages.
Although FBS provide Cent account with favourable support and payment systems, they just serve best in which countries they have offices. Southeast Asian nations are predominant, including Indonesia, Thailand, and Vietnam.
- Is it worth joining to practise for beginners with demo contest?
There is a fact that most of the winners of demo contests in which are widely thought for beginners’ practice are experts or masterly traders. After conducting demo contest winners research, I found out that the majority winners are Chinese, Thai and Indonesian traders with the profitable rate higher than 10,000%. It is said that the trading robots are used to win these demo contests. According to the fact that beginners could not win these demo contests as they cannot set a high profit rate, demo contests not only waste your time, they also influence your trading approach. The reason is that demo contest is set up base on the profit target and ignoring risks strategy while the regular trading is an opposite approach.
- Is welcome bonus a great deal for beginners?
Whether or not your brokers offer welcome bonus, it is all fine. As the matter of fact, even you win most of welcome bonus are hard to get. The following terms and conditions of welcome bonus have made them register simply and extremely challenging to withdraw. Broker usually set a required amount of deposit and number of traded lots for withdrawal. You are lost by trying to reach these terms and conditions.
- Recommendation for beginner traders
- Practising Micro/ Cent account
- Avoid higher than $100 deposit in the first month
Understanding risk management
It is an enticement in which a promised surprisingly high profit percentage with ten thousands of dollars deposits. To get that high profit rate is not inapplicable. However, keep in mind that the higher the profit is, the higher the risk is. My experience working for big brokers taught me this. Traders will sooner or later lose everything even they have won for months or some years.
Robot trading is only ideal for expert as they are able to customise the robot according to their trading strategies with frequent adjustment. However, robot cannot win forever. Rather than that, a promise of monthly hundreds percentage profit rate with a robot trading is unreasonable and a fraudulency. You will find out some mechanisation approaches that helpful in some stages of trading processes through your manual trading experience.