Choosing the Best Forex Broker for Beginners in Forex Trading

Forex currency trading can be a challenge for newbies.

The top four things to look for when choosing the best broker to start with in the forex market are explained below.

Registration History and

No trader wants to be a victim of “forex frauds”. You should check if the broker is registered by a regulating authority. Find out if your broker has been registered by a forex regulating authority, such as the NFA (National Futures Association), if they are based in America or the Commodities Futures Trading Commission (CFTC) if they’re based in Britain.

You should check the past of forex brokers. Most brokers who are successful have already earned the trust and confidence from their clients. You can find out about this broker by searching online in discussion forums.

Spreads that are Reasonable:

You do not have to pay anything for the services of your broker when you start trading. Spreads are used as compensation. Your forex broker collects spreads whether you are in profit or loss. The spreads can be 10 pips high or as low as 2 pips, depending on your broker. It is important to verify if the forex broker you are using has large Spreads for their clients’ accounts. A perfect forex broker should use Spreads that are 2pips or less.

The trading platform is simple:

Many brokers are complex and have many trading instruments. Beginners are often confused by this because they don’t know how and where to begin. To make the execution of orders simple, fast and clean, it is recommended to select brokers that have a simplified trading platform. I have written a review on how to select a forex brokerage with a straightforward trading platform.

Practice Makes Perfect:

You shouldn’t jump straight into real-time trading as a forex beginner to reduce the chance of your losing money. To see how well you can perform in real-time trading, it is important to do some practice. You should choose a broker who offers virtual money in your account for demo trading. Most brokers allow demo trading, but some do not provide enough funds for traders to practice.