Forex Trading Guide for Beginners

Most traders begin their careers with the single goal of finding a good trading strategy. While that is a good place to start, it’s not the only thing you should look at when learning forex trading. Before you think about a good trading strategy and account, you need to know how to choose a reliable forex broker who will give you fair and honest services.

For two main reasons, a good forex broker is the most important thing for beginner traders. First, a good forex broker will have an educational resource like a trading platform that will help you learn the basics of trading and what to expect from each step along the way. Second, a good forex broker will take care of problems that could otherwise slow down your progress as a trader or even stop you from making any progress at all. If you are looking for the best forex brokers for beginners, there are many good resources out there. A simple google search will reveal many lists of ranked brokers as well as forums where people discuss their experiences with different brokers.

Basically, there are many forex brokers willing to welcome you and provide you will the necessary resources you need to begin trading. This is why it is crucial to know what exactly you want. Are you looking for the cheapest forex broker? Do you want the best day trading forex broker? Or are you looking for a forex broker with the highest leverage? This article will help you find the best forex broker depending on what you want. We will simply provide you with a list of the best forex brokers available and name what they are best for to make your work easier. Read on to gain more insight.

Picking the best forex broker for a beginner is no easy task. This is because not all forex brokers are created equally. Some are meant for advanced traders, and others for stock trading. Here are some of the best online forex brokers for beginners you should consider using;

If you are a beginner forex trader, eToro is one of the best forex brokers you should consider using. One thing that makes it great for beginners is the demo account, which allows you to familiarize yourself with the market before you begin trading on the platform. The broker will provide you with $100,000 virtual money that will enable you to learn how to make profits in the forex market.

eToro platform has gained its reputation for being the best for copy trading. Copy trading is basically where you automatically copy the trades of experienced traders to your account. This allows you to learn different and proven forex strategies that will make you forex profits. Another great thing with the eToro platform is it provides educational resources to beginners to help them begin their journey successfully. However, if you want to learn more about forex trading, consider using Audacity Capital. The platform provides the necessary resources and funding to shape your trading future. 

Minimum Deposit: $50

• It has a user-friendly interface
• Copy-trading allows you to learn better forex strategies
• You can trade in different markets

• Lack of automated strategies
• It only has basic forex education

IC Markets is among the best forex brokers with MT4 platform beginners can use. In fact, it is the number one MetaTrader broker for 2022 and still the best for beginners to use for forex trade. The IC Markets is regulated by the ECN broker and provide a conducive environment for all forex trading beginners. However, they expect you to educate yourself as they do not provide analysis and education material to improve your trading skills.

The good news is that IC Markets has an extensive education hub that is free to use and provides different forex topics. That is, from forex basics, fundamental analysis, technical analysis, and risk management to trading strategies. The broker also offers a demo account, which makes it a great trading platform for beginners.

Minimum Deposit: $200

• cTrader and MetaTrader are available on mobile, desktop, and web
• It has a huge library
• Great automated copy trading strategy available

• The minimum deposit may not be too friendly to some beginner traders

IG Markets is not only known for CDF trading. It is also best for education. If you are looking for reliability and the best forex resources in one broker, look no further than IG Markets broker. The platform provides good courses, regardless of your trading experience, which is why it is best for both beginner and advanced traders.

IG Markets also allows clients to trade cryptocurrencies, indices, and forex pairs. The best part is that it has a strong customer support system that runs 24/7, allowing clients to get help whenever needed.

Minimum Deposit: $250

• It provides better market analysis
• It is one of the most trusted forex brokers
• It has more than 17,000 different instruments/assets

• Its minimum deposit is high

According to many sources, Forex.com broker is the best in US beginners can use to start trading in the forex market. Opening an account with this broker is much more affordable compared to other brokers. Therefore, if you want to start with low fees, consider signing up with Forex.com. Also, if you are a non-US resident, do not worry because you can still use the Forex.com platform through the MetaTrader suite.

The good thing about using this forex broker platform is that there is no inactivity or withdrawal fee required once you join the platform. All you need is to deposit the required fee and begin trading on the platform. However, there is one thing you should know about Forex.com. It has broad functionality, making it a little bit complex for some people.

This is why it comes with a powerful toolkit, a mobile app that instantly lets you get newsfeed and notifications. In fact, Forex.com is described to be one of the best online forex brokers for beginners due to its mobile version app. The app is well-customized and has several charting tools and recommendations, making it easier for you to understand your trades and the movement of the forex market.

The minimum Deposit Required is $50

• Affordable trading fees
• It has excellent trading education
• There are plenty of currency pairs available

• Non-user-friendly desktop platform

The CMC Markets is the best web trading platform you could ever find. It was founded in 1989 and is regulated by many top-tier authorities globally, including the Financial Conduct Authority (FCA) in the UK. CMC Markets also ranks on the London Stock Exchange, making it the best in UK beginners can use to trade forex and CFDs.

This broker also provided plenty of educational materials to help you begin your forex journey without worrying about the essential thing in the markets. Whether you are looking for podcasts, videos, or articles, CMC Markets forex broker will provide it all.

The minimum Deposit Required is $0.00.

• Low entry fee
• It comes with good mobile and web trading platforms
• It has excellent research materials for both beginner and advanced forex traders

• It offers customer service only 24/5
• Has fewer tradeable symbols

Beginner traders are always advised to take advantage of leverage to increase their returns. As much as this is the case, many beginner forex traders always find it challenging to find forex brokers with better leverage. While some traders prefer to use lower leverage, others are willing to invest using high leverage to get a huge return. If you are that type of trader, the HotForex trading platform is for you. It is one of the best high leverage forex brokers for beginners as they can get up to 1000:1 forex leverage.

The best part is that the broker offers a demo account that is funded with $100,000 in virtual funds to help you understand how to trade on the platform. HotForex broker also has negative balance protection, allowing you not to spend more than you had anticipated and end up with a negative balance.

It is also easy to join the platform, and you will get the necessary beginner training courses to help you get started on the platform. With HotForex broker, you can trade more than 50 currency pairs with any amount of leverage you wish to use.

Minimum Deposit: $5

• Low spreads and commissions
• It is well-regulated
• It offers copy trading

• Your account may be closed after thirty days of inactivity
• Services offered may be different depending on where you live

With an FXTM broker, you can get anything you want. If you are looking for copy trading services, high leverage trades or low entry fees, you will get it in FXTM. The broker is not only good for copy trading. It is also one of the best forex brokers for scalping beginners can use.

Scalp trading refers to the practice of making money on a stock by trading in and out of it. It is a form of low-volume, high-speed trading that involves rapidly placing and removing large quantities of orders in an attempt to capture small price differences.

The good thing is that you can learn how to scalp trade using FXTM trading guides, webinars and seminars. Another great thing about FXTM is that you can trade over 60 forex pairs and start with low fees. FXTM also supports MT4 and MT5 platforms, and you can get maximum leverage up to 2000:1.

The minimum Deposit Required is $10

• It offers high leverage
• The entry fee is low
• It has excellent forex education tools

• The broker closes on weekends (Saturday and Sunday)

One of the major challenges facing forex newbies is capital, which is why beginners usually go for high leverage brokers to earn reasonable returns. The problem with high leverage is that you could lose your account within seconds. The good news is that you can get a broker with the lowest entry charges and still trade without risking your account.

Oanda is the best cheapest forex broker beginners can use. This is because the broker does not impose minimum deposits on forex traders and allows low trade sizes. This makes it suitable for beginners looking to start with the lowest capital.

With Oanda, you can also open a demo account to familiarize yourself with the platform before you begin using real cash. The broker also offers 70 forex pairs, which improve the chances of winning and getting more forex trading opportunities.

Minimum Deposit: $0.00

• Trading fees are low
• It offers a user-friendly platform
• Sign up process is very straightforward

• FX and CFDs are the only instruments available

Above are some of the best forex brokers you can consider using when you are ready to start forex trading. To know which is suitable for you, you need to ask yourself what you are looking for. If you are looking for high leverage, pick those brokers offering high leverage. But if you are not satisfied with any of the above brokers. Audacity Capital is also suitable for beginners who are ready to trade.

The platform will fund your account and provide you with the best resources to improve your skill. The best part is that Audacity Capital splits profit equally, allowing you to earn better profits.

Federica D’Ambrosio is a Senior Trader and CFO at Audacity Capital. She graduated in Finance from Luiss University enhancing her knowledge on global markets completing a Master of Science at Fordham university in New York.