Choosing the Best Forex Brokers for beginners is a bit of a struggle because there are different types of brokers and account types in the market today.
Do not be confused, and we will help you step by step to find the best broker for your trading. First, let me explain what Forex and Forex brokers are to better understand.
What is Forex?
The foreign exchange market, also known as foreign exchange, is the world’s largest currency market for financial transactions. Exchange powerful currencies like EUR, USD, GBP, and more here. This process consists of banks, large corporations, and small members in each country. The average transaction value per day is around $3.8 trillion, and you can also make small or large transactions in any currency.
Today, many people are dealing with the Forex market and making easy money. You can also interact with the Forex market from home or at work at any time of the week. Before you start trading Forex, you should know how to use Forex, and you need to practice it well. If you want to get involved in Forex trading, you must find a Forex broker because you cannot trade directly on the Forex market.
I will explain what a forex broker is, how they will help you trade, and the best forex broker for beginners.
What is a Forex Broker?
As mentioned earlier, we cannot deal directly with the Forex market. Still, Forex brokers can step in directly and act as an intermediary for the Forex market and its clients. As technology has advanced, Forex brokers have access to electronic platforms that allow traders to buy and sell currencies.
Criteria for Choosing the Best Forex Broker
CFDs are complex instruments, so you need a good broker to trade them successfully. Many believe that the best forex brokers tend to focus on improving trading conditions to help traders make money, rather than focusing on short-term profits or paying more IB funds to attract clients. In my opinion, for a broker to qualify as the Best Forex Broker of 2020, it must meet these criteria:
How to Find the Best Forex Broker for Beginners?
Well, now you know the standard. But how do our top 10 best forex brokers meet these criteria? To learn more, keep reading:
The best forex brokers must have trusted regulations.
When you are involved in the foreign exchange market, you must know what foreign exchange regulations are. The foreign exchange market is currently the largest in the world. Therefore, scammers may wish to penetrate this market in search of prey. There are regulations in place to keep you safe. Large and trusted financial organizations are established to monitor this market. If brokers want to operate legally, they must meet the standards set by these organizations. Therefore, brokers with regulations are safer and more trustworthy forex brokers.
How many regulations are enough?
As you can see above, Exness has only two regulations, while SaxoBank has up to 6 regulations. So does this mean that SaxoBank is more reliable than Exness? Not at all. The truth is that the regulation of an organization can only monitor the operations of brokers in the country where the organization is located. For example, US regulations have no impact on the broker’s operations in Asia.
Therefore, if your country does not have any Forex regulations, you should choose a broker with top-tier regulations. One is enough. Why? Because to keep traders safe, regulations must limit several functions of the broker. These features present huge profit opportunities and risks. Therefore, if the broker has too many regulations, its services will no longer work in your favor. On the other hand, if your country has Forex regulations, it is best to work with a broker who can get them.
Transparency and Activities
How to define the transparency of a Forex broker? Transparency means brokers have nothing to hide from their clients. They want to showcase their merchants as much as possible. When it comes to transparency, no one can beat Exness. The broker uploads all of its business records and information on its website. Clients can check anything they want and see how the company has performed over the year. You can check here.
Another aspect determining a broker’s credibility is whether they have segregated accounts for their client’s money. This is mandatory for all brokers under the FCA.
Making money from Forex trading is never easy. Also, you have to pay for the broker’s services. As a result, all traders want to keep transaction costs as low as possible. A broker’s transaction costs are a combination of factors.
Best Forex Account Types
Every broker must offer three accounts for traders of all levels (beginners, experienced, experts). The three account types are always: Demo Account, Regular Account, and ECN Account. All ten brokers I have selected have these account types. If the broker does not have one of these accounts, it may not be a real broker.
Best ECN Broker
In addition to regular accounts, there are ECN accounts. Brokers that can provide real ECN accounts are often referred to as ECN brokers. ECN accounts are perfect for experts and professional traders. They trade large amounts of money every day, so they need an account with low prices, high security, low slippage, a great trading platform, and a fast payment system.
Best Social Trading Platform
A version of a trading platform is a social trading platform. Exness released its exclusive social trading platform earlier this year. I’ve been trying it for six months, and I must say, it’s really impressive. The Exness social trading platform allows you to copy the trades of the top forex traders these days for free. You can easily make money like a pro. Since Exness is one of the largest forex brokers, traders are focused on stable and long-term profits, not just some short-term goals to attract beginners. They are ranked according to different criteria, such as profit percentage, risk score, and commission.
Best online broker
In some countries with no local brokers, traders have to look for the best online forex brokers. When trading online with a foreign broker like this, traders primarily look for security. As I said before, security can be proven through foreign exchange regulations. Traders are now looking for low-cost, good normal trading conditions after a reliable Forex broker has proven their credibility.
The best forex broker should have the best payment system.
A fast and unlimited payment system is the best. We deserve to make profits and deposit funds quickly. I know some brokers will refuse our withdrawals when we withdraw too much money because they don’t have enough funds to withdraw money. And if they let you make money for too long, you could lose all of your money in forex trading. Therefore, do not trade with these brokers.