One of the best things that you should do when you’re just started trading is by choosing a broker that’s perfect for you and your needs. That’s why today, I’ll be writing this article to give you some of my experience over my years of trading with many different brokers. First off, here’s the 3 brokers that I consider to be the most popular and the most trustworthy brokers:
- Standards for choosing the perfect broker for you
To choose a broker, you need to follow a certain standard of your own or someone else’s. Here’s some of my own criteria and its explanations that you should take a look at to get a better understanding of brokers and forex trading:
– Low trading lot and deposit requirements
– Good training and coaching programs.
For experienced traders, trustworthy is among one of the most important aspect when it comes to choosing a broker. However, as for beginners, trustworthy might not be that important since they don’t invest that much money to be worrying about the potentiality of losing money.
Low trading lot and deposit requirements
Small trading lot and deposit requirement is essential for beginners as they need to practice trading as much as possible. That’s why I suggest that beginners should choose Micro or Cent account since with these accounts, you can have your trading positions to be as low as 0.0001 or 0.00001 USD. In other word, with Micro/Cent account, a $10 can last you for months and that’s rather neat for beginners.
Good local support and training/coaching programs
Local support and coaching program are extremely important for beginners since as beginners, you need all the help you can get to learn faster and more efficiently. It’s best that you should choose a broker that offer supports in your native language as well as good coaching/training program.
- A perfect broker for everyone
Is there really a perfect broker for everyone? Unfortunately, there isn’t one. One broker can be absolutely perfect for you, might be terrible for someone else halfway across the globe. After all, it all comes down to the factor of location, trading tactics and trading styles. However, you should always choose a broker that can best help you minimize your trading costs as well as help you learn efficiently and at the quickest rate.
- List of 3 best forex brokers for beginners
As I have mentioned earlier, these are the three brokers that I consider to be the most popular as well as the very best brokers for beginners there are. My reasons for claiming so are because:
XM has the lowest requirement for opening positions (0.00001 lot USD). They also offer their own coaching services and other benefits.
Exness has Cent account which allows you to trade at a much smaller rate and it also has the small requirement for opening positions which is only 0.0001 USD.
For more information, please refer to OUR EXNESS REVIEW
FBS service is kind of the same as the above mentioned two brokers. However, FBS is known for targeting mostly SEA countries such as Indonesia, Laos, Vietnam, and Thailand.
- Common misunderstandings and mistakes among beginners
There are lots of guides out there which recommend beginners to create demo account for the purpose of learning the way forex market works and get familiar with trading. It makes sense in theory, but in reality, demo account is just a way for brokers to lure you into forex trading without really understanding how forex trading should work since demo account is vastly different than the normal account types. In my experience, Cent account is much better since you only have to pay as little as $5/month in order to practice trading.
Another thing that I’d like to address is that most beginners seem to have the wrong idea of traders’ profit. Not all traders get rich overnight and get huge profit all the time like the way they advertised it in TV but instead, the real and experienced traders survive by making only 3% to 5% a month. It doesn’t seem like a lot, but traders are the one who often deal with large amount of money so it doesn’t hurt to be extra cautious.
- Should beginners get welcome bonus?
Welcome bonus is always a nice thing to have if you could get it. However, most big
brokers have rather strict policies regarding bonus withdrawal so you should always
make sure to check your broker’s withdrawing policies.
- My personal advice
Use Micro/Cent account to trade
Deposit no more than $100 for the first month
Learn about risk management
As I’ve mentioned above, Micro/Cent account is the better way for beginners to practice trading since they provide the same trading conditions as regular accounts but it give them the advantage of being able to trade at a much smaller rate.
And as a rule of thumb, beginners should always deposit no more than $100 for their first month of trading. That way, they won’t have to worry about losing too much money to the point of no return. Risk management is also an important thing to be taken into consideration since most experienced traders make most of their profit by being cautious and taking little to no risk.