To help you find the best forex brokers for beginners in 2023, we first looked at 100 online brokers; then we checked and compared their fees, currency pair selection, charting tools, and educational materials.
The broker’s status as a well-regulated and highly trusted brand is the first and most important quality. The second step is to provide a user-friendly web-based platform with a differing choice of educational resources. The key fact is access to high-quality, actionable market research.
We spent far too much time opening demo accounts, navigating various forex platforms and mobile apps, conducting market research, testing website usability, and watching educational videos and webinars for our 6th annual review of forex and contract for difference (CFD) brokers.
What is forex trading?
Forex trading is the process of exchanging one currency for another, also known as buying or selling currency pairs, using the forex market’s current exchange rates. The forex market is the largest in the world, with nearly $6.59 trillion in currency traded per day on average.
What is a forex broker?
To place trades in foreign currencies, you use a forex broker (also known as a currency trading broker). When trading forex, you buy and sell currencies in pairs, such as “EUR / USD” (euro / US dollar). You open an account, deposit funds, and then use the trading platform of the broker to buy and sell currency on margin. The forex markets are open five days a week, 24 hours a day.
Our top 5 picks for the best forex brokers for beginners in 2023:
Here is a list of the best forex brokers for beginners.
- Exness – Most trusted and best for education
- AvaTrade – Outstanding educational resources
- Capital.com – Innovative educational app
- eToro – The most effective copy trading platform
- Plus500 – Overall winner in terms of usability.
- CMC Markets is the best online trading platform.
- TMGM – Comprehensive educational courses
What makes a top forex broker for beginners?
- First and main, reasonable forex fees.
- There are so many currency pairs.
- A great platform with advanced charting.
- Educational resources to help you learn the basics of trading.
If you are a beginner, ignore forex trading since forex products are complex and risky, and thus not suitable for everyone. You could easily lose all of your invested funds. If you’re not sure how forex trading works, check out our forex education articles.
If you are more comfortable with forex trading, we recommend that you also look at our overall list of the best forex brokers.
And now, let’s take a look at the top forex brokers for beginners in 2023, starting with the winner, Exness.
Is forex trading good for beginners?
Forex trading can be difficult and is not for everyone. The applicability of forex for you will be decided by your financial position, your goals, and the amount of investing experience you already have as a beginner.
Note: If you’re new to forex trading, start by learning about the risks involved. Before trading with real money, go over all of the educational materials provided by online forex brokers.
A free demo account allows you to experiment with the software. Many new traders begin with a small amount of money they can afford to lose in order to establish a consistent trading record.
Can I teach myself forex trading?
Yes, and the best forex brokers provide a variety of educational materials, such as articles and videos, to help you learn how to trade forex. While studying is not a guarantee of success, it is a required first step.
Exness’s simple platform design makes it ideal for learning the fundamentals. Some brokers, such as IG, even provide progress tracking and quizzes at the end of each course to assess your knowledge as you progress through the material.
How do I start trading forex?
Open a free demo account that lets you use the trading platform and learn how it works before depositing real money. After you learn the software and practise using the virtual account, you can open a live forex trading account and begin with an amount of capital that you can afford to lose.
Forex trading step by step
- To open a live account, only use regulated brokers.
- Explore free educational materials.
- Open a free demo account and get some practise in.
- Learn how to use trading software.
- Create a trading strategy.
- Make a small deposit of risk capital.
- Try to focus on managing percentage returns.
- Level only when you have a record of success.
Is forex trading profitable?
The large majority of traders are losers. To beat the odds and make money trading forex, you need to have a trading strategy that not only helps to identify trading opportunities (i.e., signals when to buy or sell) but also calculates the best trade size in regards to your balance. Besides, the target risk and profit levels should be predetermined using a stop-loss order and limit.
This way, you’ll know when to exit a trade, whether it’s a loss or a profit. Because all you need to do to be successful in trading is keep your average losses smaller than your average profit. That is more difficult than it sounds, but it is the key to making money trading forex.
How do I choose a forex broker?
Choosing a forex broker to trade with is not as difficult as a trader may believe, even if they are new to trading. Start by reading the list of important factors for traders below, then use the information to compare and choose a broker.
Read More; How To Choose The Right Forex Broker
- The first and most important step for new traders entering the market is to select a forex broker.
- When looking for a broker, there are several factors to consider, the most important of which are low spreads, a wide range of markets to trade in, a demo account, and resources to help traders improve their knowledge.
- When researching forex brokers, look for a reputable and regulated broker in the jurisdiction where the trading will take place.
What is the best broker for new forex traders?
Here’s a quick checklist to make sure the broker being researched has plenty of features that someone new to trading will benefit from.
- A free demo account and access to a trading platform like MT4
- Tutorials to help traders learn to use the trading platform
- Free educational content and events (including seminars and webinars) that will help build and develop trading knowledge
- Reliable customer support in the languages that you need
- self-service options so traders can manage their accounts, including deposits and withdrawals
- a range of trading tools, such as copy trading, and other indicators to help with basic market analysis.
How do I calculate forex trading costs?
Depending on the account type, there are three major factors to consider when calculating the cost of opening a forex trade:
- The spread (difference between the bid and ask price) can be calculated by looking at the broker’s pricing for the specific currency pair. Spreads are variable and can change abruptly, especially during times of high volatility.
- Commission charges by brokers are fixed and therefore easy to calculate. They are subject to change, but this is uncommon and will be communicated to clients in advance.
- Swap charges should also be considered for positions held overnight or for a prolonged period. If traders are trading a currency pair where the interest rate differential is significant and they are buying the low-yielding currency against the high-yielding currency, costs can add up quite quickly. Swaps are variable, so traders need to keep a close eye on them.
How do I know if my forex broker is regulated?
The majority of brokers will include regulatory information, risk disclaimers, and other information in the footer of their website and legal documents. When opening a trading account, it will also be stated on the application form. Traders can always check the regulator’s website to see if the broker is listed there to verify if the information provided is correct.
Assume a trader wants to confirm that Exness is regulated by the FCA. Exness FCA reference number (509746) is listed in the footer of the Exness website. Traders should then visit the FCA website and enter the reference number in their registry: https://register.fca.org.uk/s/. Users can find Exness listing in the directory by clicking on the search button.
Is $100 enough to start trading forex?
Yes, it is possible to open an account and start trading with only $100. However, be aware that the options available will be limited, and unless you trade recklessly or with high risk (which is not recommended, not least because it could help set bad habits), a trader’s returns will be limited. While a return of 2% on a single trade might sound like a great result, it may be less motivating once you realise it only resulted in a $2 gain.
While starting small can be a good way to learn the ropes without risking too much capital, there is always a danger that – unless traders are very disciplined – they’ll get carried away and start risking a larger percentage of their capital to maximise those returns.
Of course, the solution to this is not to deposit more funds if
- I’m not prepared for it.
- can not afford to lose them. Instead, consider going back to your demo account to keep testing your strategy until you feel comfortable.
Can I trade forex with $10?
In general, no, because even if most forex brokers allow you to trade micro-lots, $10 would barely cover the margin requirement alone, even if you had access to the highest leverage. Micro contracts and a low minimum deposit are features of the best forex broker for small accounts. Having said that, you must still consider having enough margin available to open each trade.
For example, a trader with at least $300 could open one micro lot at a time while still having enough available for higher margin requirements, such as those in Europe or the United States. Each pip is worth around 10 cents for every $1,000 of currency traded with a single micro-lot.
Which forex broker has the lowest minimum deposit?
There are several forex brokers that advertise a $1 minimum deposit, such as Exness (which is also our pick for the best forex trading platform technology), which means you can open a live account and deposit whatever amount you want to begin trading.
Keep in mind extra costs, such as wire transfer fees and other transfer-related costs, when deciding how much to start with — as well as the collateral (margin) you want to to use for your expected trade sizes.
Which forex brokers accept U.S. or non-U.S. clients?
Forex brokers who hold regulatory status in the U.S. can accept U.S.-based clients. Meanwhile, forex brokers who accept non-U.S. clients will usually need to hold licences in the countries where their clients reside.
For example, if you reside within the European Union, you will be able to open an account with an EU-regulated broker. If you live in a U.S. state, you will need to open an account with a U.S.-regulated broker. If you’re interested specifically in stock trading, read our guide to the best U.S. trading platforms for beginners.
The Best Forex Trading Platforms for Beginners
Here is a list of the best forex brokers for beginners.