So, you’re about to embark on the world of Forex Trading and you’re looking for the best forex brokers and the best resources for beginners, right?
We know very well what it means, we have been there.
In this post I didn’t (purposely) insert dozens of brokers or sites.
You don’t need it.
The best strategy to effectively start (and continue) is to keep everything as simple as possible and stay focused on a few items at a time (or just one, even better).
“Simplicity” is the key word.
Few sites, few resources, few choices, but of course, they are only among the best possible.
And hey… don’t forget we have our own Forex Market guide for beginners, that will explain with super easy words how this market works. Check it out.
(This post is part of the best fx broker series)
Table of contents
Best Forex Broker and Trading Platforms for Beginners 2020
The first thing you need is a good Forex Broker. Among our personal list of the best forex trading platforms for beginners we have.
Best Online Forex Trading Sites and Resources for Beginners
Now that you have an account to work with, you need only one more thing, the most important one actually being a beginner.
You need information, and you need top quality.
You won’t find anywhere else on the web with a better beginners course than the BabyPips one, called School of Pipsology.
Here you can find everything from the very basics, from what Forex is and how it works, to some really advanced strategies and concepts. All this, accompanied by quizzes to test your progress in your studying.
If you want a summarized version of the first part of the School of Pipsology, you can consult our guide How Forex market works.
The Forex market is part of a much larger and complex world, the world of financial markets in general.
On your long journey, you will definitely come across terms and concepts you don’t know the meaning or the function of.
Don’t worry, Investopedia has ALL the answers to your doubts. You will see what we mean when you use Google to search for information and you always find Investopedia among the first positions.
The experience of participating in a Forum is a very important helping hand in your path of growth, from beginner to expert.
In a forum you can find the stories, strategies, tricks, advice and, in general, the direct experience of traders who started just like you, as beginners.
The ForexFactory Forum is definitely the biggest and most populated one in the world of Forex. Here you can really find some great resources. Sign up and utilize it as much as possible.
Choosing a forex broker for beginners: 5 tips
Armed with all the best information and training, here are five final tips to remember when choosing your first forex broker:
1. Demo account service
Opening a demo account is the best way to get a true feel for both a broker and the trading platform. It is completely no risk practice with virtual funds only, though demo accounts function just like the real thing so it is ideal.
For a complete forex beginner, look for a broker with an unlimited demo account to give you the most practice time. If you are feeling confident, then 30-90 days may be fine. When you feel you have the hang of it, you can open a real account, but remember that opening a demo account does not oblige or tie you to that broker in any way.
2. Low minimum deposit
Typically, the standard minimum deposit with many top forex brokers is $200. With that said, the market is very competitive so you can now find some brokers as above, with no minimum deposit at all, or one that is very low. This means, lower risk for you and is something you should be on the lookout for.
3. Risk Management services and tools
One of the key things you want to make sure of as a forex trader, is that you are protected. As a new trader, you may not know all the points about each regulation yet. You should know though that things like negative balance protection, segregated funds, and margin stop losses, are all positive features for your protection. These are all mandatory within Europe and the UK thanks to ESMA regulations. Outside these areas though, be sure to research the regulator of your broker first.
4. Education section
We never stop learning. Especially if you are new to forex trading, make sure you find a top broker with a great educational infrastructure, and be sure to use it. This means taking the lessons, watching the videos, attending the webinars, and everything they offer. Learn about the platforms too as this can stand you in good stead for the future with many brokers using the same trusted trading platforms like MT4, MT5, and cTrader.
5. User friendliness
Nobody likes a complicated layout when they are learning something new. Look for a broker that makes the process easy to understand and as user-friendly as possible. eToro, their site, and proprietary platform is a good example of one that is very good in this respect.
Not feeling confident? Try CopyTrading!
If you still have not built the confidence, or maybe you just want to save time, or sit back and let others do the trading. In that case, why not try copy trading? This allows you to literally copy the trades of others and earn or lose depending on the profit and loss of that person.
There are a variety of ways to copy trade, they may be built into the broker platforms like eToro, or could be offered by third-party brokers like Zulutrade. They are one of the best copy trading platforms around.
You can open an account with them and connect it with your regular broker account to start copying other traders as long as you have a balance of at least $100. As you will have seen above, Zulutrade has connections to many of the top forex brokers if copy trading is more your style.
Did you know that thanks to Social Trading you don't have to be a Trader to earn like one? OPEN AN ZULUTRADE ACCOUNT AND TRY!
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