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How to Choose a Forex Broker for Beginners?

All Forex brokers offer different conditions. There are many conditions but there are certain conditions that are important and must be taken into consideration when a trader takes the first steps in the world of trading on the Forex Market. When starting, the Forex trader’s minimum deposit and cent account are more important than other conditions such as the ability to scalp or the number of CFD assets for trading.

Choosing a Forex Broker – the Main Principles for Beginners:

Do not rush the decision.

The forex market is not an area where success can be achieved without prior preparation. Take the necessary time to carefully study the conditions of Forex brokers, focusing on those parameters that are more important for you.

Start with what you can afford.

In any case, you will have to build on your current restrictions - financial and technical. For example, if you cannot afford to risk a deposit of $500, then it is obvious that you will have to narrow the circle of Forex brokers to those whose minimum deposit suits you (for example, $10).

Choose among rating leaders.

There are hundreds of Forex brokers, but it does not make sense for a beginner to analyze each - it will take months. Moreover, a detailed analysis has already been done for you on our website. All you need to do is to study the current list of TOP-10 best Forex brokers for beginners, which we made for you, and from this rating understand which broker from the selected ten will be better for you to work with.

Top 5 criteria for choosing a Forex broker

Top 5 criteria for choosing a Forex broker

We have compiled a list of the best Forex Brokers for beginners based on the reliability and convenience to make it easy for traders who are starting in the Forex Market.

What is a reliable broker? For a broker to be classified as reliable we look at the length of time the broker has operated on the market, the required experience is at least 3-5 years, a well-known name and carries out activities based on their license issued by a regulator which is either a local regular in their country of operation or international.

A reliable Forex broker will give a beginner trader the confidence by offering the support that is necessary at the initial stage.

When you choose a broker from our top Forex brokers, you can be sure that you are choosing one of the best. Many brokers do not display the transactions of its traders on the Forex Market. Using a broker that does not offer favorable conditions you will not make a successful trade.

And now let’s have a look at other criteria
important for beginners.

Trading Terms

Many consider this criterion to be key, and it makes sense. Trading terms are a correlation of opportunities and limitations that you will get when working with this particular Forex broker. The first criterion is the minimum deposit.

For a beginner in the Forex market, you will look to register with brokers who offer favorable conditions for beginners and not those oriented to professional traders who have years of experience. You can identify this by the initial deposit. For example, AAATrade (minimum deposit $500), Swissquote Bank (minimum deposit $1000), LBLV (minimum deposit $5000).

Trading terms

The second criterion is the available types of accounts. The more they have, the better it is, but again, a beginner doesn’t need every type of account. Let’s briefly analyze the most popular types of accounts.

1

Classic (or standard) account.

It is the most common type of account. It features a minimum lot of 0.01 and a fixed spread, which makes it easy to calculate price targets. It is optimal for intraday trading and trading on daily charts, but scalpers do not choose such accounts, because when trading in an active market there is a slight delay in the execution of orders.

2

Cent account.

The point is that in this type of accounts all payments are made not in dollars, but cents. That is, a deposit of $20 will be displayed on the account as 2000¢. Technically, a cent account in its features is no different from the classical one, you simply make bids, not in dollars, but cents. Why would you do this? Just to try your hand with real money on a real interbank bank without risking large amounts of money. Professionals also use cent accounts to evaluate their strategies.

3

Demo-account.

For a beginner, the availability of such accounts with a Forex broker is a mandatory criterion. Because, before entering the interbank market, you need to understand the basic mechanisms of the terminal’s operation - both technical and strategic. Demo accounts are identical to real ones in everything, they even have real quotes. But you are trading virtual money, that is, you are not risking anything. This is the best option for training.

4

ECN-account.

Almost all Forex brokers have such accounts, but they are not for beginners, because here you need to have some experience and a good understanding of the nuances of the foreign exchange market. Such accounts are characterized by an unfixed, but lower spread, as well as transaction fees. Execution of orders is faster than in the classic ones, but there are slippages in the active market. This is an option for scalpers.

5

Swap-free accounts.

As the name implies, these accounts do not have swaps, in other words, commissions for transferring the transaction to the next day. Unlike ECN accounts designed for short-term transactions, swap-free accounts are suitable for traders whose positions are open for several weeks.

PAMM-accounts can be categorized separately. This is when you invest your money in someone else’s account and receive a percentage of the earnings of this trader. That is, you do not trade or make any decision on your own. Such accounts are called investment accounts, and they are also quite good for beginners.

Forex Broker User Reviews — Broker’s Reputation

Once you have completed your research and analysis of the broker's conditions, we recommend that you take the time to read the reviews of traders who have either used or are currently using the broker to learn about their experience with the broker and say about them. Because even under the most ideal and favorable conditions, working with a Forex broker can be uncomfortable: for example, it has an uncomfortable trading terminal, it delays the execution of orders a bit, technical support is available only at certain hours and slowly responds to calls.

The total of negative points can easily level all the technical advantages of working with a broker. And in order not to waste time on companies that you still have to refuse to cooperate with anyway, you need to study feedback about them.

Broker’s reputation

Pay attention!

It is important for you as a beginner trader to know that the reviews published on the official website of a Forex broker may not be an accurate representation of all customer feedback as broker sites do not publish negative feedback so you will be reviewing information that may be misleading. Although the reviews that are published are authentic user feedback, they just do not include negative feedback. On the other hand, if you read negative feedback on other sites, these need to be treated with the same rule as above, because very often they are written by competitors. The best way is to study the feedback on the Forex broker dossier on our website since we do not have censorship and we have been collecting feedback, while being neutral, for more than 10 years. Here you will find feedback on any broker in the market to provide you with the whole picture.

Speed of Deposits / Withdraw of Funds

Speed of Deposits / Withdraw of Funds and Availability of Commissions

Among beginners, only few consider the speed of depositing/withdrawing funds. Meanwhile, this indicator is critically significant. For example, if you see a good moment for a large bid, and you need to deposit into your account quickly. You will need a broker with fast transaction capability. And if certain broker card replenishment takes 2-5 working days, you may not have time to invest as you wanted.

The process could also operate in the opposite direction — you have a large amount on your account, and you need it. But the transfer lasts several days or even weeks. For example, with RoboForex it takes up to 15 days with a dollar card. That is, you can wait for withdrawal for 2 weeks, so you have to calculate in advance the time when to withdraw money, so as not to be left without cash. And this complicates life a lot because it limits you in conducting transactions.

Pay attention!

It is important to know that even the best Forex Brokers do not have companies that make instant deposits/withdrawals to bank accounts and cards. Nevertheless, the timing of different brokers can vary significantly - keep this in mind.

And another detail - as a rule, electronic transfer methods (WebMoney, PayPal, Neteller, Skrill etc.) are performed instantly, and this is, if not a panacea, then a good solution in terms of the efficiency of the turnover of funds (however, sometimes the lack of reliability of virtual wallets can be a significant minus).

With the size of the commission, everything is simple - the lower it is, the better for the trader. The average fee for a bank transfer is about 2% (for example, Instaforex). Plastic cards can have up to 2.5% (like Forex4you). And if you withdraw, say, $10, such a commission is really insignificant. But when it comes to hundreds and thousands of dollars, counting literally every cent is not fanaticism, but a rational approach that will help to eliminate unnecessary expenses.

Please note that in this case, as in the case of depositing/withdrawing, working with electronic systems is more profitable. But sometimes it’s more profitable to deposit funds one way and withdraw funds in another. An example of this is the FxPro company, where withdrawal to PayPal takes place without commission, but deposit has a commission of 2.7%. But the deposit from the Skrill system doesn’t have any commission.

Replenishment and withdrawal of funds

Special Loyalty Programs or Bonuses

Many beginners here make a critical mistake, believing that it makes sense to focus solely on the long-term advantages of working with the platform, and one-time bonuses are just a way for Forex broker to attract new customers. It is foolish to deny that in a sense it is so, but often the bonuses of Forex brokers are not just significant, but largely determining.

Here are several examples:

Logo FreshForex

FreshForex gives a no deposit bonus of $2020 for beginners to trade for 7 days. Moreover, the profit from these bonus funds is available for withdrawal. You must admit, it is difficult to come up with a better start.

Logo Weltrade

With a total replenishment of $2500 with a perfect trading volume of 250 lots, Weltrade gives an unthinkable bonus - $1400 or iPhone 11 Pro Max.

Additional bonuses can be obtained if you register with a Forex broker through Traders Union. In this case, you will also receive broker bonuses, and the Traders Union will also give you its bonuses. This is the return of a part of the spread for each transaction (even loss-making one).

Customer Support Speed

Customer support service (often called technical support) is a special department of a broker company that advises traders on various issues. It seems to many that this is not so important - how quickly the support service will answer you.

This is a significant indicator when considering the Forex broker, especially for beginner traders. Because at first you will have many new issues every day, and you require a good responsive support team. For example, you never worked in auto trading programs or worked, but in classic ones like ZuluTrade or Mirror Trader. And your current broker does not have its software for copying transactions, and all the functionality is implemented through a standard MT4 or MT5 terminal.

Customer Support Speed

To avoid this issue contact the customer support service and specify, for example, how to correctly copy transactions through the proposed terminal. This is a good way to determine the speed of their support team.

This may also apply to the withdrawal process when the withdrawal is delayed. Support can help speed up the process if there is any unexpected problem. But if they have a slow response time, this negates all the advantages of working with this broker.

10 Best Online Brokers for Beginners

Below you will find a table compiled by the Traders Union’s specialists based on an analysis of key indicators of Forex brokers, which are critical for beginner traders. It presents the most popular brokers among beginner traders.

Broker Minimum deposit Types of accounts
for beginners
Additional payment
from Traders Union
Admiral Markets UK $1 Demo-account, Zero 25% of the broker's net profit
XM Broker $5 Micro-account, Demo-account $8 per lot
FXCM $50 Demo-account, Mini-account 1 pip per 1 lot
FXTM $10 Demo-account, Cent from $5 per lot
FxPro $100 Demo-account $4.8 rebate per 1 standard lot
AVATrade $100 Demo-account $10 per 1 lot
InstaForex $1 Cent-account, Demo-account 2 pips per 1 lot
Tickmill $100 Demo-account from $2 per lot
Roboforex $10 Demo-account, cent account 40% of the broker’s profit
IC Markets $200 Demo-account $2 per 1 lot

Comparison of Brokers for Beginners and Large Investors

Broker for beginner Broker for a large investor
A minimum deposit of $1–200 Minimum deposit from $200–1000
Demo- and cent accounts available Many types of accounts, including Pro options
Additional bonuses for first registration, first deposit, etc. Bonuses are designed for experienced players (large deposit replenishment, a large number of possible trading lots, etc.)
The broker provides free courses on basics of Forex trading The broker provides advanced courses, not always free

Forex brokers strive to cater to beginners and professional traders to ensure that trading is profitable for everyone. After all, it is beneficial for the broker to attract newcomers and retain these traders as regular customers. This is also beneficial for the trader to trade on the site of a particular broker and be comfortable.

Features of Good Brokers for Beginners

Advantages Disadvantages
Minimum entry threshold - you do not risk large sums
Significant financial bonuses at the initial stage
Extensive training opportunities (demo accounts, micro accounts, cent accounts)
Free tutorials
Additional features to facilitate earnings (PAMM accounts, auto trading, etc.)
For professionals with extensive experience, account types may not be flexible enough to implement subtle authoring strategies

All Forex brokers from our Top 10 List of Brokers for Beginners have these advantages. Traders can choose to work with these brokers when starting out but also as more experience is gained and develop into professional traders. Brokers are also constantly evolving, offering more and more beneficial opportunities.

Traders’ Reviews about Top Forex Brokers for Beginners

In this block, you can find real reviews of beginner traders who worked with Forex brokers that were chosen from our Top 10 List of Brokers for Beginners. The list of feedback and reviews is regularly updated to include the latest reviews.

I've been using FxPro for about a year now. Registering and setting up an account was easy. Deposits and withdrawals are always on time. I am using MT4 with my account. Overall, I have a seamless and functional experience with FxPro, which suits me perfectly. FxPro is one of the most reliable and stable brokers in my opinion. They meet all my basic requirements and they never let me down. Highly recommend FxPro!

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beginner trader, Toledo

I had heard about FxPro and decided to give them a try. I have to admit that at first, I was worried about opening an account here. After a few months of successful trading, I took my profit in just a couple of days! I was amazed because in my experience no other broker has ever withdrawn so quickly. Maybe one day I will find another broker with better conditions or service, but at the moment they impressed me.

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trader, Madison

A great broker with a good reputation. Terms of trade are some of the best at the market. You have a chance to trade on the exchange in a heartbeat. I would like to highlight one of the shortcomings, but, to be honest, there are no significant cons. I can’t say anything bad. I think that the main advantage of XM Broker over other companies is its impeccable reputation. I have carefully studied the conditions, and from the technical point of view, everything works clearly. Technical support is always available on the site in live chat. In Live chat you can solve almost any difficult problem. There is no reason to argue with a good broker, they know their business well, and there are practically no failures. Great company for investing! If you are diligent and with a wealth of a knowledge and you know how to trade, then this company is suitable for you. Well, I have never had any problems; I always withdraw all the money I need without any problems. As I was assured in the customer support department, any problem can be solved, so everything is splendid.

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trader, Ibadan

It’s a wonderful broker. I haven’t had any problems with it. There were no refusals, they always politely communicated. I work with them and I am satisfied. This broker does not require large investments and at the same time creates a normal working environment. The platform is user friendly and there are no major differences from the previous version. So, those who worked on MT4 will not notice any special changes. If there are bugs or technical problems, technical support quickly fixes them. I have not yet found negative reviews and it makes me really happy because I became their client. I decided to engage in trading and I hope for fruitful cooperation with this company.

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trader, Agra

I recently began trading here, and so far everything suits me. There were no problems with replenishing the account. FXTM provides a variety of deposit and withdrawal options. Replenishments are instant, except for cryptocurrency, where you have to wait up to 24 hours. There are no commissions for depositing funds, which makes me happy. Withdrawing money is also fast. ForexTime promises to send money to the card within 24 hours, but in reality, everything happens faster than that. On Skrill, my money comes instantly. I didn't like the fact that when you deposit/withdraw funds by bank transfer you need to wait from 3 to 5 business days.

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beginner trader, Bangalore

All reviews about TOP 10

It is always better for beginners to choose Forex brokers with minimum deposits, micro and cent accounts, as well as bonus programs designed specifically for beginners. In addition, it is recommended to register with brokers not independently, but through Traders Union. On the one hand, this is additional earnings (return of spread), on the other hand, free help of experienced lawyers in controversial situations.

Robert Cleese, Traders Union’s analyst trader

Author of the Review

Flynn Simpson
Flynn Simpson
Independent Analyst Trader
  • In 2004, Flynngraduated from the National Research University Higher School of Economics, specialization - state and municipal administration.
  • From 2008 to 2012, he worked as a junior analyst trader in the American broker company TD Ameritrade.
  • In 2012 he commenced as a Senior Freelance Analyst Trader at Interactive Brokers, a well-established international broker company.
  • Currently, he is an independent analyst and trader for the Traders Union Association with well over 18 years’ experience trading in the Forex market.

FAQ Regarding the Best Broker for Beginners

What is the difference between beginner brokers and professional brokers?

Forex brokers for beginners offer beneficial starting bonuses, small deposit and training accounts. This allows you to start earning with minimal risk.

How do I choose a Forex broker for a beginner trader?

It is important to consider the account deposit, types of accounts, and other trading tools. Read the feedback of traders, compare conditions among brokers. We have also done this for you and have made available the list of Top 10 brokers for beginners to save you time.

Can I continue working with my beginner broker as I move forward, evolve, and gain experience as a professional trader?

Yes, you can continue working with the broker of your choice. Forex brokers are interested in offering favorable conditions to both beginners and professionals. And working with one broker over a period of time is convenient and beneficial.

Can I choose a broker that is not on your list?

You can, but we do not recommend it, as our list is derived from information from experienced traders and analysts. If you do decide to work with an alternative broker, be sure to first check the blacklist of Forex brokers.