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Top Best Forex Brokers for Beginners

Forex is the marketing term for currency trading. The best forex brokers for beginners should make it easier to make money without having a great deal of experience in the way the market works. This is necessary because even though forex is a widely popular way of making money, the beginner forex trader is more likely to lose his money than he is to make any profits at all from the markets.

The forex market is full of dangers including flash crashes, unexpected news events, market reversals and so on. The last thing a trader needs- especially a new trader is a cheating or manipulative broker, who is trying to cheat him by taking advantage of his lack of experience, and then taking his money.

In this post we highlight some of the best forex brokers for beginner traders. These are brokers that offer capital protection, traders’ educational courses, and trading interfaces that offer the benefit of second guessing a trade before it is placed, so that the new forex trader does not lose his money.

Best Forex Traders For Beginners

1.  Plus500

Plus500 is a global fintech firm providing online forex trading services. This company is a trusted name in the forex industry; it was established in 2008, and is listed on the London Stock Exchange as Plus. The company also has subsidiaries in Cyprus, Australia, Israel, Seychelles, Singapore, Bulgaria, and the United States.  With Plus 500 you can trade contracts for difference (CFDs), with more than 2,500 instruments.

Plus500 is one of the best forex brokers for new traders because it offers an easy-to-use trading platform, and it is also very easy to navigate through the CFD instruments. Plus500 is not like those brokers that bombard users with difficult to understand trading software interface; with this broker you get a very easy to use platform, and you also get very good educational materials, including videos to help you gradually master the art of trading.

The company warns that 75% of traders lose their money.

2.  eToro

eToro is a great forex broker for beginners; they are the first to prove that you don’t need to be an advanced trader to make money from the markets. Etoro was founded in 2007, in Israel, and has spread its wings into Cyprus, the United Kingdom, the United States, and Australia.

This company invented social trading; they allow you to copy the trades of accomplished traders, and so make money even as a complete novice. A further advantage of etoro is that while you are making money, you can also learn from the trades of the professionals you are copying, and add that to the educational materials offered by the company.

The company warns that 67% of retail investor accounts lose money.

3.  OANDA

OANDA was founded in 1995. Over the years this company has gained the trust of traders from all over the world, as a global brand that is trustworthy as regards providing quality forex brokerage services. OANDA is a very good broker for beginners because it has a great trading interface, has plenty of traders educational materials, and selects its trading instruments so as not to inundate new traders with too many instruments that will ultimately lead to confusion.

The company warns that 76.6% of retail investor accounts lose money.

4.  IG

IG is a trading company based in the United Kingdom, this company has been in operation since 1974, and is regulated by the FCA which is the financial authority in the UK. This is a trusted name in forex trading, and is publicly traded on the FTSE 200 index.

This trading platform offers excellent education, and enjoys the trust of users from all over the world. IG is a great beginner forex broker because it offers excellent trading and research tools, great educational materials to help you learn more, and then the prices are very low. You will also enjoy several tradable assets.

The company warns that 70% of retail investor accounts lose money.

5.  AvaTrade

AvaTrade was founded in 2006, and has its head-office in Dublin, Ireland. The company is a trusted brand with customers from over 100 countries. New traders can enjoy great services such as copy trading- which allows you to benefit from the experience of senior traders.

Another talking point of this company is that they give you an extensive selection of trading platform options: mobile apps, web platform, web based applications etc. you will also find a vast array of tradable assets, and educational materials.

The company warns that 71% of retail investor accounts lose money.

6.  CMC Markets

CMC Markets was founded in 1989. This is a UK-based financial services company that has offices in Sydney and Singapore. This is a great forex broker because they stand out when it comes to trader education; fresh traders can benefit immensely from the educational materials offered by the company.

When it comes to education, you will get plenty of including written articles, video updates, podcasts, and live webinars to help you get a better understanding of the forex market.

Their trading platform is also smooth and easy to understand. All round this is a great platform for beginner forex traders. The company warns that 69% of retail investor accounts lose money.

7.  XTB

XTB was founded in 2002. This is a trusted forex broker that offers an array of assets. The broker is also great for its outstanding customer service, and impressive trading platform called the xStation 5. Best of all there is a lot of effort put into the educational materials it offers. There is plenty of learning through videos and articles that can help you become a good forex trader.

The company warns that 73% of retail investor accounts lose money.

Should Beginners Trade Forex?

Perhaps before looking for the best brokers for beginners it is important to first decide whether or not beginners should be trading forex to start with. In truth, forex trading can be a complicated business.

In fact, experienced traders can lose several hundreds of thousands of dollars with short periods of time. One can therefore infer that the risk is greatly multiplied with novice traders who do not have the benefit of experience.

Most brokers who offer trading services to novices do so with the knowledge that there is an 85% chance that the traders will lose their money. Sometimes these funds are lost to the brokers.

A beginner trader can only hope to be successful in the forex market by first boosting his knowledge and understanding of the intricacies of the market, before attempting to profit from price movements.

This can be done by first reading up as much as you can about forex trading, and also about price movements. There is no shortage of articles to read, and videos to watch. You can select any of the brokers highlighted above in order to profit from their trader educational materials.

After that, the next step is to start practicing what you have learnt. You can do that at no personal cost by signing up for a demo account with any of the brokers mentioned above.

This will help you put into practice the trading style and system that you have learnt, and also understand how the trading software works. It is recommended that you trade demo for at least one year, in which you should be consistently profitable. After that you can go ahead to commit your funds.

Please ensure that you replicate or stay as closely to the conditions of your demo trading conditions as possible when you start real trading. This will greatly reduce the chances of you losing your money. However, please be informed that it is almost impossible to completely eliminate the chances of losing your money.

Conclusion:

Please keep a realistic view of trading; do not fall for the numerous stories of people who have become overnight millionaires by trading forex. Many savvy traders have been known to lose all their money to the markets, and so the possibility of losing your money as a new forex trader is quite high.

You can make money while you learn by using any of the social trading platforms mentioned here; you can copy the trades of accomplished traders- learning from them, and making money at the same time.

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