One of the first steps to getting started forex trading is to choose a reputable broker. As a beginner though, it’s not just about choosing a broker with a good reputation. You’ll also want a broker that has education feature, a good and easy to use interface and a low minimum deposit.
I’ve put together a few options that I think work really well for beginners. Make sure you let me know in the comments what brokers you think are best for beginners.
The best choice for beginner traders – eToro
My number one pick for beginners is eToro. Why? Because they offer some unique copy trading features that will help you learn about trading while hopefully reducing your risk. eToro’s copy trading feature allows you to automatically copy the trades of more experienced traders. Whenever a copied trader makes a trade, your account will make that trade to.
I started my forex trading journey by copy trading. It was a great way to learn why traders make their trades and taught me so much.
When you’re ready to make your own trades, eToro is also a great broker for doing this. They have an excellent web based interface and offer a huge range of currency pairs to trade. They also offer stock, cryptocurrency and commodity trading. So there is room to expand into other markets.
eToro’s minimum first time deposit is just $200. So for those looking to get started, you don’t need to risk a huge amount of capital. And eToro offers a virtual trading account for free as well. You can switch between your virtual and real account with a click and trade in both of them at the same time.
Overall eToro makes an excellent choice for beginners.
If you’re looking for a pure forex broker that offers tight spreads and really professional trading, then you should try XM. They offer trading through the Metatrader platform. For beginners I find MT4 (metatrader) to be overly complex and difficult to use. However, it is a powerful platform and is used by most professional forex traders.
There are lots of brokers that offer Metatrader trading. I chose XM because they have a low minimum deposit. They also are one of the few reputable brokers that offer a no deposit bonus for forex trading.
I’m including plus500 on this list due to their sheer popularity. They are a popular choice for first time traders. They do offer a fairly good web trader interface. It’s nowhere near as good as eToro’s, but it’s better then any metatrader interface.
Plus500 makes it easy to open and close trades. One option they are lacking is the ability to change leverage.
So there you have it, my top picks for beginners. If you’re new trading then highly recommend you start with eToro, simply because they have copy trading features. Forex trading is hard, and trying to go it alone, most people end up losing their money. Remember, if you are just starting out, always begin with a practice trading account. If you can’t make money with your practice account, you won’t be able to make money with a real account.