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Best Forex Broker for Beginners

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If you’re new to forex, you may not know that the forex market is an over-the-counter market in which banks, brokers, institutions, investors, and traders buy and sell currencies. A 24-hour market, it functions five days a week.

Best Forex Brokers for Beginners:

Account Minimum
100 of your selected base currency
Pairs Offered
80+
Get started securely through FOREX.com’s website
Account Minimum
100 of your selected base currency
Pairs Offered
80+
1 Minute Review

FOREX.com is a one-stop-shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker. You can’t invest in the stock or bond market through your FOREX.com and you cannot open an account with tax advantages. The confusing pricing and margin structures may also be overwhelming for new forex traders.

Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders
Pros
  • Impressive, easy-to-navigate platform
  • Wide range of education and research tools
  • Access to over 80 currencies to buy and sell
  • Leverage available up to 50:1
Cons
  • Cannot buy and sell other securities (like stocks and bonds)
  • Confusing margin requirements that vary by currency
  • Limited customer support options
  • Cannot open an IRA or other retirement account
Commissions
$10 value per pip
Account Minimum
$0
Get started securely through IG Group’s website
Commissions
$10 value per pip
Account Minimum
$0
1 Minute Review

IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.  

Best For
  • New forex traders who are still learning the ropes
  • Traders who prefer a simple, clean interface
  • Forex traders who trade primarily on a tablet
Pros
  • Easy-to-navigate platform is easy for beginners to master
  • Mobile and tablet platforms offer full functionality of the desktop version
  • Margin rates are easy to understand and affordable
  • Access to over 80 currency pairs
Cons
  • U.S. traders can currently only trade forex
  • Customer service options are lacking
  • No 2-factor authentication on mobile
Account Minimum
$50 USD
Pairs Offered
47
Get started securely through eToro’s website
Account Minimum
$50 USD
Pairs Offered
47
1 Minute Review

Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).

eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.

Best For
  • International Forex/CFD Traders
  • New cryptocurrency traders looking for an easy-to-use platform
  • Traders who want to buy and sell cryptocurrencies on-the-go
Pros
  • Simple platform that is easy to master
  • CopyTrader feature that allows new traders to copy the same strategies used by professionals
  • Virtual dummy account that gives you $100,000 to practice trades
Cons
  • U.S. traders currently limited to cryptocurrencies
  • Only 15 major coins available to trade
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
Get started securely through HYCM’s website
Account Minimum
$100 USD (or equivalent)
Pairs Offered
69
1 Minute Review

HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.

HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service. 

Best For
  • Investors who want a customizable fee schedule
  • Traders comfortable using the MetaTrader platform
  • Islamic traders who need swap-free accounts that don’t build interest
Pros
  • Wide range of currency pairs available
  • Excellent selection of educational tools
  • $0 deposit and withdrawal fees
Cons
  • Not currently available to traders based in the U.S.
Account Minimum
100 EURO
Pairs Offered
50+
Get started securely through AvaTrade’s website
Account Minimum
100 EURO
Pairs Offered
50+
1 Minute Review

A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.

Best For
  • Beginners
  • Advanced traders
  • Traders looking for a well-diversified portfolio
Pros
  • Controlled by regulatory agencies of multiple countries
  • Choice offered in terms of trading platforms
  • Support available in 14 languages and trading platforms in 20 languages
  • Practice/demo account available for trying out
  • Breadth of trading assets
Cons
  • Does not accept customers from the U.S. as it isn’t regulated in the U.S.
  • Transferring funds to the account may take up to five days; withdrawals could take up to 10 days

What’s a Forex Broker?

A forex broker is an intermediary which facilitates buying and selling of currencies for a commission, or, in other words, executes orders on behalf of clients.

The broker supplies clients with information on the market price of a currency pair, finds a matching order to fulfill clients’ requests, sends the trading order to the market, and, after processing the order, gets back to the client with the status of the order.

Factors to Consider When Finding the Best Forex Broker

If you’re on the hunt for a forex broker, the options may be overwhelming. But, you should be able to narrow down your search based on the following.

  • Credibility/reputation: Fully check the broker’s credentials. Look for brokers listed under the National Futures Association and the U.S. Commodities Futures Trading Commission.
  • Trading platform: A user-friendly and simple trading platform is essential. Feature-rich platforms, while handy for an advanced trader, might be too much for a beginner.
  • Efficiency of execution: In order to ensure the best possible price for placed orders, execution, or the speed at which the orders are filled, should happen in nanoseconds, as forex moves are dynamic and volatile.
  • Customer service: A broker should be easy to contact and offer quick resolution of issues.
  • Affordable fees and commissions: In forex trading, fees and commissions will include a fixed spread, variable spread or a commission based on a percentage of the spread. Spread is the difference between the bid price (the price which the market is prepared to pay you for buying the currency) and the ask price (the price at which he is prepared to sell you the currency).

Best Forex Brokers

Based on these characteristics, the best forex brokers for beginners are below. Before you open an account, consider which features matter most to you as a currency trader.

Account Minimum
100 of your selected base currency
Pairs Offered
80+
Minimum Trade Size
$1,000
Spread
0.2 pips – 1.0 pips
Commisions
$0 – Variable starting at $60 per million traded depending on account
Best For
  • MetaTrader 4 users
  • Beginner forex traders
  • Active forex traders

1. Best overall: FOREX.com

The top honors for a well-rounded brokerage catering to the needs of a beginner goes to FOREX.com. This broker promises stability, security, and strength. It offers more than one trading platform, including an in-house option and also provides trading on desktop, web, and mobile.

You’ll be able to trade over 80+ currencies pairs through FOREX.com. Forex.com also offers expert market analysis and trade ideas and also offers cash rebates through its Active Trader program. Its $5,000, 30-day risk-free practice trading account is also an added attraction.

Read Benzinga’s full Forex.com Review

2. Best regulation: FOREX.com

FOREX.com, owned by Gain Capital Holdings, Inc. (NYSE: GCAP) is the best when it comes to regulation, as it is under the regulatory purview of multiple agencies (including overseas agencies). Quick notes:

  • Oanda is also regulated by both NFA and CFTC.
  • Interactive Brokers, another active forex trader, as well as Nadex, are regulated by the CFTC.
  • TD Ameritrade’s TD Ameritrade Futures and Forex is a member of the NFA.

The advantages of trading with a regulated broker include transparency of operations, compensation or insurance payout (in case the brokerage fails) and anti-money laundering guarantees.

However, most are unregulated. (FXCM claims that by being unregulated, it’s able to offer a wider and more diverse range of products and promotions demanded by its client base.)

3. Best for trading platform/ease of use: Forex.com

FOREX.com provides clients with advanced platforms such as Metatrader 4 and has an in-house platform called FOREXTrader. Forex.com also offers a web platform, desktop, and mobile app.

  • Ally Invest Forex offers ease of use and flexibility as well as a full suite of professional charting and order management tools.
  • On the contrary, trading platforms such as TD Ameritrade’s thinkorswim platform, which offers advanced charting and analysis tools, may not be best for forex newcomers.
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
Best For
  • Novice investors
  • Retirement savers
  • Day traders

4. Best for educational resources: Forex.com, Ally Invest & TD Ameritrade

TD Ameritrade’s thinkorswim platform offer educational materials, tutorials, real-time data, third-party research and more and therefore qualifies as the broker with the best educational resources.

TD Ameritrade also recently introduced its TD Ameritrade Network that live streams market analysis every day.  FOREX.com, with its videos, webinars, and guides, is a great bet as well. It even offers curated content based on the type of the investor you are, which is deduced based on a quiz.

Apart from providing content on trading fundamentals and technicals, it offers tutorials for its FOREX.com platform as well as the MetaTrader platform. Ally Invest is right on par in terms of the educational resources offered.

The firm offers excellent resources to help beginners understand forex trading. Some brokers offer a practice account to help beginners understand trading nuances. Forex.com and Ally Invest offer a $50,000 risk-free demo account, valid for 30 days.

Commissions
$5 per 100,000 base currency traded
Account Minimum
$0
Best For
  • New forex traders looking for an easy-to-use platform
  • Mobile traders who need a comprehensive on-the-go offering
  • Experienced forex traders who seek a wide selection of charting tools, indicators and currency pairs

5. Best for low fees: Oanda

A broker’s compensation is usually the spread between the bid and ask price. The dealer acting as principal in a transaction marks up the bid price, widening the bid-ask spread.

The difference between the market spread and the dealer’s marked-up spread is the profit, as the broker buys and sells from its inventory. Oanda scores over the rest in terms of the lowest spread. It also offers commission pricing, charging $50 per million units.

6. Best customer support: FOREX.com

Since forex is a five-day, 24/7 market, most forex brokers offer customer service from 5 p.m. ET Sunday to 5 p.m. ET Friday. However, FOREX.com’s customer support is available from 10 a.m. ET Sunday through 5 p.m. ET. Phone, live chat, and email support is available.

Commissions
$10 value per pip
Account Minimum
$0
Best For
  • New forex traders who are still learning the ropes
  • Traders who prefer a simple, clean interface
  • Forex traders who trade primarily on a tablet

7. Easiest to use: IG Group

IG group is one of the most respected names in forex trading. IG’s brokerage manages to distill a complex trading asset like forex into a easy-to-use platform. IG offers over 93 currency pairings to trade from, which is slightly more than competitor Forex.com.

If you are new to forex, but want to break learn how to trade it, IG may be your best bet to get you up to speed. IG’s platform comes with a wealth of educational materials . IG also has great 24/5 customer service which compliments the 24-hour nature of forex trading.

Final Thoughts

The time and resources you commit as you dive into the complex investing world calls for patience and study. As long as you have the resources to commit, and even when you do lose, it all teaches you how to be a better trader.

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