Beginner Forex brokers are rare gems, luckily we have unearthed the Best Forex Brokers that have been custom-built around beginners, so you can win trades too.
The 4 Best Custom-Built Forex brokers in 2020
What is a Forex Broker?
Forex Brokers are brokerage companies that easily provide (beginner/advanced) forex traders with unlimited and 'free' access to their forex trading platform, which enables them to buy and sell Forex currencies, such as the USD, EUR, GBP and many more Forex pairs. Forex Brokers may also be named 'a retail forex broker' or 'foreign exchange currency trading broker'. Each Forex Broker will only deal with a very small percentage of the total forex traded volume, as there is such a large amount of volume not a single Forex broker would be able to process and hold funds so large.
The very Best and top rated Forex Brokers will obviously have a larger volume share of the Forex retail market.
Beginner/intermediate Forex Traders such as yourself, will utilise the Best Forex Brokers available to you (as shown above) to buy and sell currency pairs across a Brokers platform 24 hours a day, 5 days a week.
What is the difference between a Forex Broker and Trading Broker?
A Forex Broker is a Broker who enables you to trade currencies such as the Dollar USD, Euro EUR, Pound GBP and so many more. Forex is simply a shortened version of the world Foreign Exchange. So any broker that enables you to trade Forex is considered a Forex Broker however, those who class themselves as a prime Forex Broker choice are usually ones that hold many different currencies to trade, have low spreads/commissions on their currency trades, enable you to easily trade currencies without hassle and many more factors that are discussed in each of the forex Brokers reviews.
So any broker that allows you to trade Forex, is a Forex Broker. A Trading broker is simply a generic term that can be applied to all brokers. There are specialised brokers that only carry Forex pairs and a few other main assets, these are the best to use if you only want to trade Forex.
What makes a Great Forex/Trading Broker?
So what exactly makes one Forex Broker better than another Forex Broker? What specific attributes of a Forex Broker will help take your trading to a professional level?
The top 3 of the main attributes of a professional Forex Trader are as follows:
There are thousands of Forex brokers out there, a large proportion of them will be useless and not high enough standard for you to really earn the profit you are after. Luckily TradingCompared is here to show you exactly where you need to go to become a number one forex Trader in 2020.
Top 5 things to look out for are when choosing your first Forex Broker:
1. Ensure your Forex Broker is Always Regulated
Make sure that the Forex Broker is regulated in the country you are situated in. For instance if you are In the UK, then here are two regulatory organisations - the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA.) The logo for either of these should be displayed on the Forex Broker`s website for your security. All 6 of the Best Forex Brokers for Beginners we have shown you above are all highly regulated to the by the FCA and PRA - so you are definitely in safe hands.
2. Check The Forex Broker's Customer Agreement Policy
Find the Forex broker's customer agreement policy. This customer agreement policy will highlight all the things that you are agreeing to when becoming a standing customer with said Forex broker. The Best Forex Brokers will always point you to this when you first open an account with them, and you should make sure to read it so you don't get stuck out.
3. Forex Brokers Trading Tools, Forex Courses and Resources
Does the Forex Broker offer a Currency/country news service? Does the Forex Broker offer a heatmap? Does the Forex Broker off you extensive tools and research analytics based on fundamental and technical data?
You won't know for sure until you actually open an account or read it in one of our reviews. But it's always good to know before taking the time to open an account. What if the strategy you planned on using or will use in the future isn't an option as the tools on the Forex broker platform just aren't up to date and at the technical level they should be at? You're screwed.
Forex Brokers that have free tools and resources readily available for you as soon as you sign up is a great sign, it shows they want you to stay with them and will invest into their customers - which will improve your standard of trading with them in turn.
A perfect example of a Broker with this would be Etoro, Etoro is an amazing Forex Broker that has hundreds of tools, resources and analytics for you to choose from and utilise to maximise your trading returns and potential as a professional Forex Trader.
4. Customer Service
What is their customer service like? If there are several ways to contact the Forex broker, they are more likely to be a better broker as they are easily accessible for support. As a beginner, having chat/customer support from your Forex Broker is very much essential as you will have more than plenty enough of questions that will need to be answered and probably will be needed to be answered immediately. The Best Forex Brokers will always provide you with live chat support that is answered instantly upon your request - you really can't get a better service than that.
5. The Forex Brokers Deposit and withdrawal procedure
Check the deposit and withdrawal procedure. Every Forex broker will hold your funds for you and should allow you to instantly withdraw them whenever you need to. The Best Forex Broker such as BlackBullMarkets, as they have an easy to follow deposit and withdrawal procedure, which makes opening an account and starting to trade with them seamless. BlackBullMarkets is a prime Forex broker that is mostly suited to beginners who require a lot of support and focus. It's a smaller sized Forex breakage with a big heart and drive, you will be well looked after here.
What is the Actual Role of a Forex Broker?
Forex Brokers provide immediate access to currency pairs, enabling you to trade them at any time. Meaning you can buy and sell forex/currency pairs to make a profit.
The Best Forex Brokers will always stock the top major forex/currency pairs such as EUR/USD, GBP/USD, USD/JPY and many more. The minor and exotic forex pairs are also stocked by the best of the best Forex Brokers however when you're just starting to trade you will only ever need to use the major pairs as these are the least volatile and usually the cheapest to trade.
Forex Brokers make it possible for you to open and close trades of the same currency pairs and profit the difference. A percentage of your profit will go to the forex broker in terms of fees and costs (it's how Forex Brokers make their money and enable them to let you trade 24/5). This is why it's so very important to choose the least expensive and highly rated Forex Broker, so the minimal amount of profit is lost in commission/spread to your forex broker.
How Forex Brokers are Regulated and Why You Need a Regulated Forex Broker
The main two entities that regulate Forex Brokers are CTFC and the NFA, these groups are designed to eliminate any fraudulent practices.
The best forex broker for you is always going to be the one that is rated highly by forex comparison sites (such as TradingCompared), has relevant good comments made by existing customers and suits your time zone, currency, location, trading style and obviously is regulated to the highest degree required in your country.
Unregulated brokers can be scams designed to steal the most amount of money out of you as possible. Some scamming Forex brokers have been reported of literally taking money from clients accounts, locking clients out of their account, and much more. You must always use the Best Forex Broker that is regulated by the FCA, CTFC and NFA.
How to Get started in Forex Trading with a Forex Broker?
Most top rated Forex Brokers will always allow you to use a demo account before trading real money, you should use this demo account for at least the first 30 days, and when you feel ready you should start looking into a real money account and depositing your first amount of capital.
It is really straightforward and simple to open an account with a Forex Broker, and it's never been so easy before. Especially practice accounts - as no deposit or any card information is required. Simply sign up with your name and email and you're away, simply done.
When you are choosing your first Forex Broker, see which Forex broker best fits your individual trading/lifestyle. What do you want actually want to trade? Do you even want to trade Forex? Maybe Cryptocurrency would be a better option for you?
There is no single Best Forex Broker, each Forex Broker is completely different and there will always be one forex broker better than another in one way or another.
Scan over the reviews we have made for the above Best Forex Brokers, see which one feels right to you. At the end of the day, your first Forex broker will unlikely be your last, you won't realise what you want until you start, but you can always come back and pick another Forex Broker at any time.
Overview of Forex Brokers
A Forex Broker acts as a sort of middleman in the whole trading system. This middleman position is very important and is obviously crucially needed in order for retail traders such as yourself to trade Forex and currencies.
Forex Brokers come in many different variances, all differing to a certain end user. Each Forex Broker will offer you a range of Pro's and Con's (that we discuss in each review) as no single broker will be perfect for you, but one Forex Broker will ultimately be the best for you.
The Best Forex Brokers above are all highly regulated, respected and designed around new Forex trades in particular. These Forex brokers are all hyper-focused on new forex traders, they have made a Forex environment like no other, where you can truly blossom and develop your trading into perfection.
If you need more info on any of this then check out our Guides page where there are loads of free articles designed with you in mind. If that's not enough for you then you can get a lot of free and useful content from other places such as ForexFactory (which is a giant forum of traders who voice their opinions).
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