Choosing a broker is an important and sometimes very difficult question, not only for beginners but also for professionals of Forex. Between Forex brokers, a large-scale competition is observed, and they offer a variety of opportunities and benefits. There are several key points, such as regulation, market capitalization, customer support, structure of charges and fees, account types, additional services packages, principles of leverage calculation and margin calls. These parameters speak in favor of reliability and competence of the company. However, the critical moment when choosing a Forex broker for a beginner is to identify the parameters of interest particular for you.
As for beginners, the most important criterion of choosing a broker, which should be taken into consideration, is provision of comfortable environment for learning and gaining practical experience of trading in the financial markets with minimal losses by the company, i.e.:
- Demo and cent accounts availability;
- Minimum lot amount;
- Limits on minimum deposit;
- Learning the trade;
- Availability of educational materials about Forex trading on the company’s website.
Market analysis suggests that the majority of Forex brokers – dealing centers try to simplify the access to trade for beginners, as much as possible. Everything is done to ensure that trade in the Forex market looked simple, and each beginner could try everything at once, without large investments and extensive training.
Any customer of a Forex broker can open a demo account for learning and practicing and use it for practically unlimited period of time. The only difference of Forex demo account from the actual conditions is that the account is registered in virtual money, as in a computer game. At this time, a new trader receives actual quotes of real Forex market, and all operations of purchase/sale of currencies are performed just like on a standard account. At the first stage, you are provided with possibilities to learn how to work in the trading platform, to build figures of technical analysis, indicators, to get used to the charts, to study the market behavior, to test trading strategies – and all above freely and without risking real money.
You can start to trade on the Forex market using a cent account. The main difference between such accounts and ordinary accounts – the ability to execute very small transactions having a miserable deposit of $ 1-2. Cent account allows you to get the sense of excitement and risk games for real money without risking too much. The trader’s training on the cent account will be more efficient and faster.
Speaking about the special conditions offered to new players by brokers, the reference should be made to starting rates for beginners. The broker can establish commission payment only for a profitable trade.
Recommended: Forex brokers with micro accounts rating
The Internet is trying to obtain capitalization on the popularity of Forex market and offers beginners to buy different training courses. Initially, all this is not absolutely necessary, as there are opportunities of free Forex training for beginners. Basic knowledge, principles, terms, concepts, trading tactics, techniques of market analysis, indicators and much more can be explored on Forex sites. Many companies post video lessons of good quality on their sites and provide video webinars on Forex trading.
It is rather difficult for a new Forex trader to navigate in the nuances of the currency market. Therefore, it is better to choose a reputable broker, the terms of which are quite understandable for you. Reputation for such broker is the most valuable asset. Among the reputable brokers offering appropriate conditions for beginners, in our view, the following companies should be mentioned:
1. Alpari Company. Forex micro account nano.mt4 is suitable for beginners, minimum lot is 0,0001, there are no minimum limits on the deposit. There is also the possibility to trade on a demo account. Alpari offers training in the Higher school of trading, format of getting knowledge – resident and online courses. At the website of the Company introductory articles about Forex, list of recommended literature, as well as the glossary of terms are represented.
2. Forex4you Company. This broker can be mentioned among the best cent brokers, because here you can start trading on cent accounts with s wide variety of tools, Instant execution (on Cent Lite and Cent) and Market Execution (on Cent NDD), minimum transaction amount is 0,01 cent lot, you can deposit your account starting at 2 cents. However, the Company does not provide training, but there are interesting materials for beginners – glossary of terms, introduction, bibliography, posted on the site.
3. ForexClub Company. You are welcome to study trading at the Academy of investments and trading from ForexClub. The Company organizes online seminars, besides personal consultations are available. On the Company’s website the recommended literature is specified, as well as introductory articles, dedicated to Forex. Despite this, ForexClub has no cent accounts. The only thing that can attract beginners – that is trading account StartFX (on the same name platform). There is no spread for negative transactions.
Recommended: Best Forex broker in Europe
Professional broker, who has earned great reputation, allows beginners to trade with fairly small lots. In this case the trader will have the minimum spread with a small commission and fast execution without slippage. This will increase profitability and the chances of staying in the market and earning money. Start your trading in Forex with the best!