Although there may be numerous guides to choose a forex broker, confusions are inevitable because of the huge number of brokers operate internationally. So, what to look for in a forex broker for beginners?
One of the many things novice traders may get confused about is the topic on what kind of broker is best for them. Although there may be numerous guides to choose forex broker, confusions are inevitable because of the huge number of brokers operate internationally. So, what to look for in a forex broker for beginners?
1. Low Initial Deposit
There are some who said that if you want to succeed then start big. If you ever heard of it, just ignore it. It is true that bigger capital can give you higher power in the market, but it is less likely to increase your trading profitability.
In fact, if you fail to manage an account with small capital, then you will likely lose an account with bigger capital. Therefore, it is better for novice traders to start with small capital and choose brokers that allow a small initial deposit. How low?
Right now, there are even brokers that put no minimal limit for the initial deposit, which means you can start with just a couple of dollars. Still, in order for you to learn money management properly, I would advise a figure around 50-100 USD if you start with a mini account.
2. Demo Trading Account
At first glance, you may think that all forex brokers served demo trading accounts aside from live accounts. But actually, some brokers only made demo account available for a limited time; or else, the demo account only available for one trading platform and not on others.
You should know that although practice trading with Metatrader4 can establish your basic trading knowledge and skills, if later you want to trade with other kinds of platforms, then you should practice trading in that platform as well.
Getting used to a certain kind of trading platform can take some time, although it may not as long as the time you will need to learn to trade. For this reason, it is better to choose a broker that provides an unlimited forex demo account.
3. Simple Registration
Registering with a broker usually needs several steps that depend on the broker's policy. Beginners usually prefer to trade with a broker that doesn't bother them with complex registration steps or complicated verifications at the beginning of the process.
After all, they would try to trade in the demo accounts first before getting into deep with the broker. The more simple the registration steps, the better it is for beginners.
To open an account with a broker, the main steps should consist only of applying basic data (email address, password, phone number, country of residence, etc.) and email or phone verification. Any more than that would be quite unfriendly for beginners.
4. Educational Video or Webinars
In this cyber era, accesses to learn forex trading is abundant. There are many forex-related websites that provide sufficient information and guidance and even mock schools to turn novices into experts.
However, rather than reading, oftentimes it is easier to learn from seeing; or in this case, watching educational videos.
But the actual purpose of choosing brokers who provide educational videos is not this; it is to measure the broker's commitment to see their clients succeeding.
It may be too simplistic, but this method can filter out would-be scams as well because scams are more likely to tempt new traders with astronomical profit instead of realistic warning about the asset's risky nature and train traders to master forex trading.
5. Margin Call Feature
Traders may be able to limit losses with the use of stop loss facilities, but there will be times when stop loss is not yet placed or for some reason you choose to trade without it, in which cases it will be good for you if your broker has incorporated margin call feature.
Some may consider it an unnecessary burden to watch out for margin call aside from the overall balance, but for beginners, practice trading in a tight situation is better. Moreover, margin call may be your additional barrier before a total loss attack.
6. Responsive Customer Services
Responsive customer services are absolutely necessary for beginners. When you start trading, you will find many confusing terms, either in trading activities itself and in navigating your trading account.
Because of this, responsive customer service must be one of your priorities in choosing a forex broker. Even for experienced traders, good customer service is always welcome. Or else, you will be caught in a labyrinth and end up losing money.
7. Negative Balance Protection
One of the most frequently asked questions among beginner traders is is it possible for us to owe money to our broker if we suffer losses beyond our account balance?
Sadly we have to answer that with Yes, it is possible. Some brokers will even chase you to get your money in these cases. But don't worry, you do not always have to pay them back, and some other brokers even have negative balance protection in place.
Negative balance protection refers to the broker's commitment to pardon the negative balance that occurs on market failures. Market failures that inflict major damages are rare, but not without precedence.
If you are a beginner, it can hit you hard. That's why forex brokers with negative balance protection are eventually important for most traders.
8. Licenses
The license does not mean that a broker will never cheat you or get into insolvency, but having a license or registered under the umbrella of a bonafide authority is a hallmark of a bonafide broker. At least, it shows their goodwill to protect consumer interest.
In this matter, you should know that not all authorities created equal. At the forefront of the industry, there are US NFA and CFTC, UK FCA, Japan JFSA, and Australian ASIC. European regulators that are linked under MiFID (Markets in Financial Instruments Directive) such as Cyprus CySEC should be quite secure as well.
See also: List of CySEC Regulated Forex Brokers
So, What Brokers Are Good for Beginners?
Those eight points concluded my advice on what kind of broker a beginner should look for. It is good if you choose a broker by thinking about which broker will match your chosen trading strategy, but it is better if you choose a broker by considering your status as a beginner first.
Thus, those are some features you should look for. You may think that you will retain your first trading account forever.
However, as your knowledge and skills grow, you probably will look for other brokers with more desirable features than what you thought you need in the beginning.
Considering those features, which are the most suitable forex broker for beginners? Here is some you can consider. Each of them at least fulfills two-thirds of the criteria:
FBS
FBS seems to fulfill nearly all the criteria of being the best broker for beginners mentioned above. Firstly, FBS is a multilicensed broker, holding five different regulatory licenses: ASIC, CySEC, FSCA, IFSC, and FCA. This extensive regulation provides a strong foundation of trustworthiness. Additionally, FBS boasts highly responsive customer service, with an impressive 80% client retention rate year after year.
FBS sets an initial deposit requirement of only $1, catering to traders with varying capital levels. Alongside its three other account types (Cent, Standard, and Pro), FBS offers a demo account to facilitate practice and learning. For those transitioning to live trading, the provision of stop-out and negative balance protection features acts as a safeguard against margin calls.
On a daily basis, FBS conducts free webinars featuring experienced and professional traders as speakers, offering valuable insights to its clients. The process of opening an account with FBS is straightforward and efficient, resulting in a daily average of 7,000 new accounts being created on their platform.
In summary, FBS appears to align remarkably well with the outlined criteria for an ideal broker for beginners, making it a compelling choice for traders seeking a supportive and user-friendly trading environment.
Since 2009, the action of FBS Holding Inc. or known as FBS in the world of forex trading has been recognized by various international institutions. With clients reaching 14 million as of 2019, FBS has received the title of Most Transparent Forex Broker 2018, Best Investor Education 2017, Best Customer Service Broker Asia 2016, IB FX Program, and many others.
FBS is regulated by FSC Belize and CySEC Cyprus. This broker has been trusted by millions of traders and 370 thousand partners from various countries. Based on their data, FBS garners about 7,000 new traders and partner accounts every day. And, 80% of the clients stay in the FBS for a long time. No wonder the broker is growing rapidly due to the incredible growth in the number of clients.
Trading products offered by FBS range from forex, CFD, precious metal, and stock. For forex trading, CySEC-regulated FBS offers leverage up to 1:30 on Cent and Standard Accounts. Clients who want to try higher leverage than that can alternatively register an account under FBS Belize.
FBS spread begins from 0.5 pips for Pro account type and from 0.7 pips for Standard and Cent accounts. On a standard account, volume orders can be made from 0.01 to 500 lots. Therefore, this account is recommended for experienced traders.
Whereas on Cent Accounts, volume orders can be carried out with a maximum of 500 cent lots or the equivalent of 5 standard lots. Cent Accounts involve a different level of risk. FBS recommends Cent Accounts for beginner traders. All account types support the following trading instruments: 36 Forex pairs, 8 metals, 3 energies, 11 indices, 127 stocks, 5 crypto pairs.
Before plunging into the real forex market, traders can practice with FBS Demo Account which consists of two types, i.e Standard and Cent.
FBS uses the MetaTrader 4 and MetaTrader 5 platforms. They offer them on Windows and Mac as well as Android and iOS mobile. These platforms provide a trading experience at traders' fingertips, allowing traders to progress as a trader anywhere at any time.
MetaTrader platforms also have a variety of mainstay features, including the possibility to create, buy, and use expert advisors (EA) and scripts, One-click trading and embedded news, technical analysis tools, the possibility to copy deals from other traders, hedging positions, and VPS service support.
Another advantage provided by FBS is a deposit bonus of 100% for clients who fulfill certain requirements. The process of FSCing and withdrawing funds can be run easily and quickly. Based on clients' testimonies, each process usually takes no more than 3-4 hours, except on holidays.
Traders also have the opportunity to develop a side business when trading with FBS, namely as an Introducing Broker (IB) or Affiliate. The FBS partnership system provides partner commissions that are already in 3 level positions. Only by introducing new clients to FBS according to certain procedures, traders can earn extra income.
Traders will also get trading education experience at FBS. They have prepared a comprehensive forex course. The course consists of 4 levels: beginner, elementary, intermediate, and experienced. Traders can take courses that will turn them from newbies to professionals. All materials are well-structured. Besides, FBS provides various forex analyzes, webinars, forex news, and daily market analysis that can be accessed easily on their site.
Traders can access the FBS website with many language choices. Of course, this will increasingly provide comfort for traders. Available languages include English, Italian, French, Portuguese, Indonesian, Spanish, and others. Live chat support is also provided 24 hours 7 days a week.
In conclusion, FBS is a widely known broker among retail traders around the world. It continually grows to become a preferred broker because of flexible trading conditions that enable its clients to trade with various instruments, low deposit, and other trading advantages.
Exness
Exness is known as a renowned global broker with extensive experience, having been in operation since 2008. In terms of licensing, this broker holds numerous licenses from regulators worldwide, such as FSA (Seychelles), CBCS (Curacao), FSC (BVI), FSCA (South Africa), CMA (Kenya), FCA, CySEC (Cyprus), and ESMA.
The minimum deposit required to start trading with Exness is also quite affordable, although slightly higher than FBS, at $10. To facilitate novice traders, Exness offers a demo account and features like negative balance protection, which can safeguard you from margin calls.
The account opening process at Exness is relatively instant, taking only a few minutes. Exness also provides a mobile app for on-the-go trading. When it comes to educational and research materials, Exness provides excellent in-house content for its clients.
If you encounter any difficulties, you can directly contact Exness' customer support. Exness' customer support is available in 15 languages, including English, French, Korean, Arabic, and more.
Unfortunately, the response is in the form of a bot, not a direct human, so it may not be very helpful if the topic you're inquiring about is not included in the available automated options.
The choice of broker is adjusted to the needs of each trader. If you are a trader who only needs a basic platform and trading features with the best attributes, then Exness can be your best choice.
Exness covers its lack of feature variations with other advantages like low spreads starting from only 0.1 pip. This is very suitable for traders who use scalping strategies (Scalper). Spreads on major pairs in certain account types can also be as low as 0.0 pip, depending on market conditions.
Not only that, but traders can also enjoy other advantages such as automatic fund withdrawals. Exness processes the majority of client withdrawals instantly, without manual checks; however, withdrawals may be subject tos depending on the payment provider or method of choice.
The safety of traders' funds is also guaranteed as Exness is one of the European-based STP/ECN brokers. Exness's ability to become an official partner of the Real Madrid soccer team for 3 years, starting July 2017, also provides evidence that the company has high solidity.
Deposits and withdrawals may be made 24 hours a day, 7 days a week. However, it is important to note that the company shall not be liable fors in processing deposits and withdrawals if suchs are caused by the payment system.
Traders do not need to worry about transaction fees when depositing and withdrawing. Exness doesn't charge any transaction fees to traders even though some charges may be incurred depending on the payment provider of choice. A variety of payment methods are provided for traders, including Wire Transfer, Bank Card, Neteller, Skrill, and many others.
The financial reports and metrics on the Exness website are audited quarterly by Deloitte, one of the four largest public accounting firms globally.
Moreover, Exness is one of the mote transparent brokers in the online trading industry. Traders can find out all information about this company on the website, such as trading volume, number of active clients, client deposits, company funds, and many more.
The platforms provided by Exness vary in MetaTrader 4, MetaTrader 5, Web, and Mobile platforms. This makes it easy for traders when trading on Exness, as they can also access Exness platforms anywhere and anytime.
Over the years, Exness has developed into a broker that attracts traders. Trader's trust is further enhanced by its compliance with financial regulations like the FCA and CySEC.
One measure of client confidence can be put on the trading volume. By December 2018, their clients' monthly trading volume reached USD348.4 billion and active traders around the world surpassed 50,342.
Through the program offered by Exness, traders also have the opportunity to earn extra income by becoming their partners. From the Introducing Broker (IB) program, partners can earn up to 33% spread commission from every new client that registers with them.
Additional income can also be obtained from Exness Partners. Traders can get a spread commission of up to 25% per transaction made by traders who register through an affiliate link.
When trading with Exness, clients can also make use of its free VPS hosting services. A VPS (Virtual Private Server) offers increased reliability and stability for traders as they can maintain their trades and expert advisors without interruption in the event of unexpected technical issues, such as internet or electricity downtime.
From the review above, it can be concluded that Exness is a favorite broker for traders because of low spreads and flexible account types. This condition is very suitable for traders with limited funds but is in need of more opportunities to get maximum profit. This broker is also well known for its maximum support on both new and existing partners.
XM
Not only Exness but also XM, holds numerous licenses from regulators, including FCA, CySEC, BaFin, CNMV, FSP (New Zealand), ASIC, CONSOB (Italy), IFSC (Belize), and ESMA.
Thanks to its CySEC license, you can enjoy the negative balance protection feature offered by XM. You also don't need to worry about margin calls because XM can protect your balance up to 20,000 euros.
XM is a broker worth considering, especially if you're a novice trader. This is because the minimum deposit required to start trading with XM is very low, only $5.
From the account creation process to deposits and withdrawals, XM offers a quick and easy experience. Additionally, XM provides unlimited demo accounts for all its clients.
Moreover, this broker is particularly committed to hosting regular webinars conducted by experts. XM also excel in their global expansion efforts, ensuring support for clients through various language options, not just on their website but also in customer service. Don't hesitate to reach out to their customer support because they respond quickly and are helpful.
XM Group is a group of regulated brokers and it is owned by Trading Point Holdings Ltd. Entities under XM Group have significant experience as financial services providers worldwide.
Trading Point of Financial Instruments Ltd was established in 2009 with headquarters in Limassol, Cyprus, Trading Point of Financial Instruments Pty Ltd was established in 2015 with headquarters in Sydney, Australia, XM Global Limited was established in 2017 with headquarters in Belize and Trading Point MENA Limited was established in 2019 with headquarters in Dubai.
XM Group is regulated by the CySEC (Cyprus Securities and Exchange Commission) - Trading Point of Financial Instruments Ltd, FSC (Financial Services Commission) – XM Global Limited, the ASIC (Australian Securities and Investments Commission) - Trading Point of Financial Instruments Pty Ltd and DFSA (Dubai Financial Services Authority) - Trading Point MENA Limited.
XM is one of the more experienced brokers in the world of online forex trading today. Since its founding, the broker has experienced a lot of changes, including the addition of the Ultra-Low Account and EN Live Edu that is instructed by 16 global experts.
In terms of trading instruments, XM is a well-known diverse class assets provider, varying from Forex, Crypto, Stock CFDs, Turbo Stocks, Commodities, Equity Indices, Precious Metals, Energies, & Shares. XM prides itself to be the ideal broker in trading execution, offering a stat of 99.35% orders to be executed in less than 1 second. Trading in XM would be also provided with a strict no requotes policy, no virtual dealer plug-in, no rejection of orders, real-time market execution, and the choice for traders to place orders online or by phone.
Spreads on all majors can reach as low as 0.6 pips in Ultra-Low Account, while spreads on other accounts usually start from 1 pip.
To protect the client's fund in the event of extreme volatility, XM presents each account type with Negative Balance Protection. Minimum deposit of $5 applies to Standard, Micro, and also Ultra-Low Accounts. Traders who open accounts in XM are enabled a condition similar to a Cent Account environment in the Micro Account, in which the Contract Size for every lot is only 1,000 units. If it is applied with the smallest lot size in the MetaTrader platform which amounts to 0.01, it means that traders can go as small as 10 units per trade.
For the deposit, XM applies zero-fee deposits in most of its available payment methods. Traders can choose to fund or withdraw their accounts via wire transfer, credit card, as well as the most favorable e-payment choices like Skrill, Neteller, and FasaPay.
To give their clients the best experiment in trading, XM has given access to both MT4 and MT5 platforms, each is available for more than 6 display formats (PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android, and Android Tablet).
All in all, there is no doubt that XM has gone global with its deep commitment to providing services in more than 30 different languages across the world. Aside from easing traders' experience with mainstream trading platforms and high-quality trading execution, XM is open to various types of traders, from small capital traders to the more experienced ones with big deposits at the ready. Traders are even provided with a Cent Trading environment should they choose to register under Micro Account.
For their global approach, XM has ensured that traders from various countries could access their service easily. This results in the provision of different domains specified for traders in certain jurisdictions. For example, traders from Indonesia could access XM via this link.
OctaFX
Another recommended broker for novice traders is OctaFX. This broker is licensed by CySEC and has been in operation since 2011, with headquarters in Saint Vincent and the Grenadines and Nigeria.
In terms of deposits, the minimum deposit required to start trading with OctaFX is relatively higher compared to the brokers mentioned above, reaching $25.
However, OctaFX offers excellent demo accounts. In fact, they host a forex demo competition where you can test your trading skills by competing with other traders.
Another reason why this broker is suitable for beginners is that it also provides negative balance protection, a margin call feature, and many deposit bonuses. Their customer service via live chat responds directly, not through a bot, which is a plus point.
Unfortunately, OctaFX does not offer specific webinars or training for beginners. They only provide educational content in the form of articles. However, they do offer a Telegram group that provides news and analytics related to forex trading.
FXTM
FXTM is a broker regulated by the FCA of the UK, CySEC, FSCA, FSC Mauritius, and CMA of Kenya. FXTM was initially launched in 2011 with a unique vision to provide unparalleled and superior trading conditions.
Opening an account with FXTM also grants access to advanced educational resources and sophisticated trading tools in the forex industry. Trading with FXTM is beginner-friendly as the minimum deposit required is only $10.
FXTM also provides webinars and educational videos that can be accessed for free. Unfortunately, FXTM does not offer negative balance protection, and their customer support is limited to virtual agents, which may not be very helpful.
FXTM was initially launched in 2011 with a unique vision to provide unparalleled superior trading conditions. Opening an account in FXTM would also bring about access to advanced education and sophisticated trading tools in the forex industry.
Now, FXTM is registered under the Financial Conduct Authority of the UK with the number 600475. The company is also regulated by the Cyprus Securities and Exchange Commission with CIF license number 185/12, and is licensed by the Financial Sector Conduct Authority (FSCA) of South Africa, with FSP No. 46614
FXTM has 1 million registered accounts with more traders joining every day. The company continually tries to improve their performance and have got many awards such as Best Trading Experience 2019 by World Finance Awards, Best Online Forex Trading Company Nigeria 2018 by International Finance Awards, Reputable Investor Education Forex Broker Award 2018 by Hexun.com, Forex Brand Of The Year China 2018 by Fxeye.Com, and many more.
As a responsible broker, they determine leverage (expressed as a ratio of transaction size relative to trader's buying power) according to the trader's level of knowledge and experience in trading, which is evaluated by the Appropriateness Assessment. The company also enables trading with leverage up to 1:1000.
As for spreads, FXTM offers low spreads starting from 0.1 pip, so traders can withdraw profits at the start of trading. The company, which has headquarters in several countries, uses No Dealing Desk (NDD) technology and partners with credible liquidity providers to provide the best bid and ask prices.
For beginners, there is an automatic trading facility called algorithmic trading provided. When trading in FXTM, traders can develop their trading strategy or adopt other traders' strategies. Furthermore, the strategy is applied to automated trading systems, such as Expert Advisors. The purpose of this system is traders do not have to worry about losing opportunities while not observing the market so that profits can still be earned.
Three types of ECN accounts use the MT4 and MT5 trading platforms. There are also mobile and Tablet Apps trading platforms. Aside of providing many account variants, FXTM goes above and beyond to ensure that their client receives excellent support that they deserve, making their trading experience optimal and user-friendly.
FXTM also provides a diverse range of products. In addition to over 50 currency pairs, they provide gold, silver, CFD on commodity futures (oil), CFD on ETFs, and indices.
Education about the basic concepts of the forex industry is also accessible in this broker. Traders can read all the concepts provided in the form of e-books, video tutorials, articles, webinars, and forex seminars. There are 17 languages provided on the FXTM website to make it easier for traders to learn about forex.
Traders are also given various choices for payment methods, including Credit Cards (Visa, Mastercard, Maestro) and E-Wallet (Neteller, Skrill, Western Union). For withdrawing funds, traders are not charged a fee with a length of 2 hours to 2 days. Traders can live chat to ask further questions and contact the admin via email. There is also a question and answer page about forex trading on FXTM.
OANDA
Last but not least, there's OANDA, which is also highly recommended for beginners. This veteran broker holds numerous licenses, including CFTC/NFA, FCA, FSA (Japan), FSC (BVI), Kanto Local Finance Bureau (Japan), MFSA, MAS, and ASIC.
OANDA is recommended because it imposes no minimum deposit requirement, meaning you can start with just $0, which is the lowest among the brokers mentioned above. OANDA also offers negative balance protection and a margin call feature.
In addition, the broker dedicated a whole learning section for newbies who just started familiarizing themselves with their services. There is especially "the classroom" feature that provides insights from their professional trading instructors via premium webinars. Clients need to open a live trading account with OANDA to access the sessions.
One significant drawback of OANDA is that they don't have a live chat customer support feature. So, if you encounter any issues or problems, you'll have to handle them on your own. This limitation can certainly have a significant impact.
Traders looking for brokers with accurate precision, OANDA can be an option. That is because OANDA is a broker that provides quotes with 5-digit accuracy and active price movements that follow market developments. Order execution speed is also faster in this broker.
It provides benefits for novice traders, as they can trade with smaller volumes using the calculation system based on currency value, unlike other brokers adopting the lot system.
Founded in 1996, OANDA was built by Dr. Michael Stumm who is a lecturer in Computer Engineering at the University of Toronto, Canada, along with his colleague, Dr. Richard Olsen of The Olsen Ltd., which is one of the leading econometric research institutes. They have a head office in San Francisco, United States.
OANDA branch offices can be found everywhere. Some of these offices are located in the United Kingdom, Singapore, Japan, and Canada. With this number of offices spread, OANDA has increasingly attracted the attention of clients worldwide.
OANDA's company is registered under several well-known jurisdictions in financial trading. They are regulated by CFTC and NFA in the US, FCA in the UK, ASIC in Australia, and many others. Traders do not need to worry anymore about security when trading in OANDA. However, these advantages make trading rules at OANDA more stringent compared to other brokers.
For example, OANDA only allows maximum leverage of 1:20, because the rules in the US and Japan do not allow leverage above that. Besides, the registration procedure is more complex due to various additional requirements that are not submitted by other forex brokers. On top of that, hedging is not allowed in one trading account as the client must open an additional account to hedge.
Nevertheless, OANDA is known for being a leading broker with many advantages offered. OANDA faces increased market risk during periods of price volatility, such as economic and political news announcements. When market spreads increase or decrease, their pricing engine widens or narrows spreads accordingly. That way, traders can get the latest conditions from price movements in the market more quickly.
Prices move very fast in the market. Especially when news releases have a large impact on market volatility. This condition is often exploited by brokers to take advantage of clients with Requotes. However, traders do not need to worry about additional costs when trading with OANDA.
The company never withdraws Requotes so traders can get maximum profit. When traders are unavailable to monitor open positions, they can set take profit orders to lock in profits and Stop Loss orders to help protect against further losses.
As an experienced and well-known online forex broker, OANDA is committed to maintain an efficient trading environment that reduces latency and provid tools to help clients manage the degree of acceptable slippage.
With a fast & reliable trading platform by OANDA, clients' trades are executed in 0.012 seconds. This suits traders who choose brokers based on execution speed.
Because of this exceptional execution service, it is not surprising that OANDA won many awards, including the winner of the world's Best Retail FX Platform at the prestigious e-FX awards. The broker is also voted number 1 for Consistency of filling trades at quoted prices, Execution speed, and Reliability of platforms.
There is no minimum deposit or minimum balance required to open an OANDA account. Deposit and withdrawal can be done easily. OANDA provides a variety of payment method facilities, including Paypal, Wire Transfer, Credit Card, and Debit. Traders can adjust it to the region where they live.
OANDA provides more than 100 trading instruments, including 71 currency pairs, 16 indices, 8 commodities (Brent Crude Oil, Copper, Corn, Natural Gas, Soybeans, Sugar, etc.), 6 Bonds, and 23 Metals.
The fxTrade and MetaTrader platform are available at OANDA. These platforms can be used for Desktop and Mobile. Another plus is they have an OANDA Technical Analysis that exists in collaboration with a technical analysis provider called Autochartist.
With these platforms, clients can monitor price movements easier and automatically recognize patterns created on charts, as well as receive alerts when the awaited patterns appear. Access to this technology can be enjoyed free of charge.
In conclusion, OANDA is an ideal broker for traders in need of fast execution backed by many years of experience. The company is also a good alternative for those looking for a well-regulated broker with flexible trading and deposit conditions.
Of course, this is just a raw suggestion. Considering the huge number of brokers out there, there are definitely many others. Take your time and choose carefully. The first step toward success in forex trading is choosing the right broker for you. Also, make sure to avoid scams by recognizing forex broker frauds.
14 Comments
Nov 5 2021
When I began trading, it is very difficult to identify the best broker. What I do first is start to build my own trading strategy. So in this case, I have already know what is my needs for trading. Many traders prefer low commission, tight spreads, instant execution in addition to other amazing trading services. I highly recommend Oanda broker, as I have great experience with them.
Dec 15 2021
Pablo: Just like you, when I first started trading a few years ago I had a hard time choosing the best broker. But, my friend said, the most important thing is that you know your trading style and how much money you are risking.
After long seeking, I have decided to pick one broker that most suits me best. It's a XM broker. They provide the best features for me.
Jan 5 2023
Thank you for sharing your experience. I think I will try every broker with demo account to find which broker that can suitable for me. because I read your readon to trade with the brokers is different and also all of the traders have different trading style and broker's feature also different between each other.
Apr 11 2022
Is it true that the trading conditions on demo account are very different with the real one? But why do people always say that conditions are made the same between the two?
Apr 13 2022
Joshua Collins: Indeed different, but not much different.
Dec 3 2022
Joshua Collin: If you setting the amount and leverage used in the demo account different with your real condition, you will very different between demo and real trading. So it can be said that trading conditions are naturally different from real trading. But if you use the demo account and trade the demo under the same conditions as the real condition, i.e. same money and leverage, it will be the same as the real trade. Was the account demo different from the actual trading? Of course! The only difference is the spreads or commissions you don't pay on the demo account, but when trading on live trading you have to pay commissions or spreads. Otherwise it is the same as the demo account and uses the live charts used by the Market FX Realtime Server.
Jan 5 2023
Apr 12 2022
The "Negative Balance Protector" feature in my opinion is such a waste. Indirectly, it makes traders not have a sense of losing money completely. It is better for new traders not to choose this feature. Later you will feel unwary and too complacent so you are not careful with your money.
Jan 5 2023
I disagree. Negative Balance Protector can prevent traders from going into debt with their broker. This way, traders can avoid situations where they go into debt or lose more money than they have deposited. Protecting traders' free money is also very important for brokers. Tools for negative balance protection are Margin Call and Stop His Loss. If the broker has to pay the trader's debt first, imagine that the broker's finances will also be ruined. Hence a win-win solution for both traders and brokers
Apr 18 2022
Advice for new traders, the technical matters presented in this article deserve attention. But don't get carried away just by considering things like this. There are many other important things to know about technical trading. Be diligent in learning the demo account.
Jan 5 2023
A friend advised me to use a cent account instead of a demo account. What's the difference anyway? And this is suitable for beginners like me. Is it possible to create a live account as some brokers have a hard time finding cent accounts? About demo accounts which brokers above have demo accounts? Thanks in advance
Jan 5 2023
Jan 10 2024
According to the article, negative balance protection involves a broker's promise to forgive any negative balance resulting from market failures. While significant market failures are infrequent, they are not unheard of.
I'm curious about the specific market failures that have occurred in the forex industry. Are there any notable instances from the past? Additionally, how did traders cope with negative balances during these market failures in the past? I'm hoping to get more insights into this. Thanks!
Jan 13 2024
Let me answer your question! Market failures in forex can arise from unexpected events like extreme volatility, rapid price movements, or gaps in liquidity. These events may lead to situations where executed trades occur at prices significantly different from the expected or set levels.
Historically, there have been instances of market failures, often associated with major economic events, geopolitical crises, or sudden shifts in market sentiment. For example, the Swiss Franc (CHF) experienced a drastic appreciation in January 2015 when the Swiss National Bank unexpectedly removed its currency peg, causing significant market turmoil. During such events, traders may face challenges, and negative balances can occur if trades are executed at prices far from the expected levels. In cases where brokers offer negative balance protection, they commit to absorbing these losses, ensuring that traders don't owe more than their account balance.