Overview: Forex Trading For Beginners & How to Find the Best Forex Trading Platforms & Best Forex Brokers
For those looking to get into high-risk investments that reap very high rewards, forex trading may be just the right investment. Here at AdvisoryHQ, we’ve noticed a growing interest in forex trading reviews and the best forex trading platform for newcomers.
To help you avoid many of the biggest pitfalls associated with choosing the best forex brokers and getting started with forex trading platforms, we’ve compiled this extensive review of forex trading for beginners.
Some of the most asked questions from possible investors that we’ve come across are:
- Who are the top forex brokers?
- How do I choose the best forex broker?
- What are the best forex trading platforms?
- Where can I find a comprehensive forex broker comparison and forex trading reviews?
With so much varying and contradicting information available online, finding unbiased forex trading reviews on the best forex brokers and forex trading platforms can be incredibly difficult, if not impossible.
Our goal is to explain forex trading for beginners in an easy-to-understand and non-threatening way.
With our complete guideline on the best forex trading platforms, we’ll compare forex brokers, forex trading companies, and forex brokers ratings to help you choose the best forex broker to invest your money properly.
Forex trading is a very risky investment choice, so before you plunge into it, it helps to be aware of all forex trading reviews and forex broker reviews.
What Is Forex Trading?
For the newcomer on the scene, the idea of forex trading companies can be an entirely foreign concept.
Image Source: Best Forex Brokers
Below we’ll get into forex trading for beginners, helping to explain what exactly forex trading is and why you might find yourself interested in investing with forex trading companies.
Forex Trading for Beginners
Let’s get into forex trading for beginners by explaining what forex trading is and why people invest into it.
The forex market is one of the leading and most liquid trading markets in the world. In the forex trading market, companies, banks, governments, investors, and traders all come together to speculate on the value of different foreign currencies to make a profit.
For example, if you think the Great British pound is going to rise against the U.S. dollar, you would then want to purchase the GBP/USD currency pair for a low price and then hope to sell it for more later to make a profit.
However, if the U.S. dollar strengthens over the Great British pound, then you will ultimately lose money.
With the advancement of the internet, individual consumers have begun to get more involved in forex trading platforms, causing it to expand greatly and provide even larger profit sums.
Benefits of Forex Trading for Beginners
There are many benefits of forex trading for beginners. Forex trading platforms are the largest in the world, meaning that there is room to make a large profit.
You can trade whenever you’d like, as the forex market is open 24 hours a day, 5 days a week. Once you’ve funded your forex trading platforms account (hopefully with the best forex broker), you can instantly begin focusing on currency pairs and start trading.
Forex trading for beginners only requires a laptop with access to the internet. With fewer currencies and stocks to keep up with, the ease of using the best forex trading platforms brings in individual investors.
One of the most important aspects to keep in mind in the case of forex trading for beginners is that finding the best forex brokers is essential to proper investing.
Unlike other trading venues, there is no central marketplace with forex trading platforms. Instead, you are relying solely on the top forex brokers to quote you on the different currency pairs.
How to Find the Best Forex Brokers & Best Forex Trading Platforms
Taking time out to research the top forex brokers is an essential aspect of forex trading for beginners. With no central marketplace, your choice in the top forex broker is a vital one.
The best forex brokers will conduct trading activity properly and within regulatory compliances. Since forex trading platform marketplaces are continuing to grow, the number of forex trading companies also begins to grow.
With so many forex trading companies to choose from, it can be very easy to fall into the hands of a less than reputable choice.
Below we’ll discuss what to look for in the best forex broker based on forex broker reviews. This forex broker comparison guide will allow you to compare forex brokers to make the best investment choice with your money.
Forex trading companies with the best forex brokers rating will all have a few things in common that separate them from less then reliable choices.
Top Forex Brokers: Forex Broker Reviews to Consider for Choosing the Best Forex Broker
Regulatory Compliance by Government Oversight
It is crucial information of forex trading for beginners to be aware of these self-regulated and government-regulated bodies. The NFA and CFTC work together to help you feel that you are trading with a top forex broker.
The NFA is industry-wide and works to create rules, programs, and services to help regulate forex trading platforms and make sure that traders and investors feel protected.
The CFTC is a U.S.-specific independent government agency whose efforts include protecting market users from fraud, abusive practices, and manipulation from forex trading companies.
The best forex brokers will state their affiliation with the NFA and CFTC on their “about us” section on their website, along with their NFA member number.
Sticking with forex trading companies that are under regulation is a great step of forex trading for beginners.
Looking into the detailed specificities of opening up an account is a great way to weed out less than desirable candidates on your search for the best forex broker.
Forex trading companies all offer different account details. The initial deposit must be greatly considered as some of the best forex brokers allow new accounts to be funded by an amount as small as $50.
The ease with which you can deposit and access your money is also to be greatly considered. With a top forex broker, you’ll be able to fund your account several ways, such as PayPal, personal checking accounts, wire transfers, or credit card.
Finally, forex trading companies make their money through commissions and spreads on your trades. The best forex brokers have tighter spreads as opposed to wider ones, as wider spreads make it more difficult to build a profit.
Currency Pairs Offered
When you take the time out to compare forex brokers, you’ll notice a considerable trend among the best forex brokers. A forex brokers rating can be greatly affected by the kinds of currency pairs they offer.
In the case of forex trading for beginners, forex trading companies that offer major currency pairs should suffice for trading at the start.
Major currency pairs are the most traded worldwide and include currencies from developed economies such as the United States, Japan, Europe, Canada, and Australia.
Outside of forex trading for beginners, top forex brokers will also have cross-country currency pair features. This is a great element for individuals who keep tabs on more than one country’s economy and wish to trade among them.
Forex broker reviews often take note of the availability of currency pairs that traders are genuinely interested in. Often, the best forex broker is the one that offers the most extensive currencies to trade with.
Source: Cross-Country Currency Pair
In many forex broker comparison guides, users have offered forex broker reviews regarding customer service and availability.
A forex broker’s rating can greatly suffer if their customer service was less than stellar.
The best forex brokers offer multiple channels through which you can reach them. A top forex broker will offer email, live chat, and phone support services where you can contact them for questions, comments, and concerns.
Best Forex Trading Platforms
One of the main features that you should keep in mind when choosing the best forex broker is the forex trading platforms the broker utilizes. The best forex brokers offer the best forex trading platforms.
Forex trading platforms are software programs that are provided by the broker to the investor.
The best forex trading platforms are easy to use, aesthetically appealing, and also offer specialized tools and analysis capabilities.
A major quality of the best forex trading platforms, according to many forex broker reviews, is one with clearly designed “buy” and “sell” buttons.
Image Source: Forex Trading Demo
However, the best forex trading platform is dependent on the types of features that you as an investor are looking for.
In terms of forex trading for beginners, many of the top forex brokers offer demo accounts where you can try out their forex trading platforms for free.
Popular Article: Motif Investing Review – All You Need to Know Before Using Motif
The Top 3 Best Forex Brokers and Best Forex Trading Platforms
Although there are many forex trading companies to choose from, according to many forex trading reviews, it is difficult to always find regulated forex trading companies.
Below, we’ve compiled the three best forex brokers that are especially great in terms of forex trading for beginners. Each one is a top forex broker with incredible forex broker reviews.
One of the best forex brokers in terms of forex brokers’ ratings and forex broker reviews is TD Ameritrade.
Image Source: TD Ameritrade
TD Ameritrade is a great forex trading for beginners platform, as they offer no account minimum and 24/7-phone support. TD Ameritrade has one of the best forex trading platforms since acquiring thinkorswim.
The thinkorswim platform is one of the most advanced, allowing investors to trade forex, stocks, futures, and options in one account.
TD Ameritrade offers a wide selection of investment possibilities, research and trading tools to utilize, and the choice between their acquired thinkorswim platform and their Trade Architect platform.
In a forex broker comparison, TD Ameritrade stands out among the rest as one of the top forex brokers.
Image Source: Forex.com
Forex trading reviews have all taken notice of how convenient the customization is, making it easy to place all of the displays, tools, and reports exactly where you’d like them to be.
The smartphone addicts out there will be pleased to know that Forex.com is a top forex broker choice for mobile usage. Their mobile app is available for iPad, Android, and iPhone use and was designed to offer users the same great usage as the full version.
Forex trading reviews have also mentioned the remarkable education videos available on the Forex.com app.
Overall, Forex.com is a top forex broker for users who value customization and mobile app solutions.
Image Source: MB Trading
MB Trading is a top forex broker choice for both forex trading for beginners and those that are much more advanced.
When you compare forex brokers, you’ll find that MB Trading offers one of the biggest selections in terms of forex trading platforms.
In fact, MB Trading has been called the best forex trading platform by various forex broker reviews.
The web-based platforms are great for forex trading for beginners, as you can access them through any web surfing browser.
For those who are more advanced traders or hope to be, MB Trading also offers the Lightwave platform that allows users to trade outside of the forex marketplace.
With the Lightwave platform you can also trade stocks, futures, and options all from your one account.
All of the forex trading platforms from MB Trading are highly customizable and offer users powerful diagnostic tools to help improve their trading.
MB Trading truly stands out as one of the best forex trading platforms.
Conclusion: Forex Trading For Beginners
As you can see, the forex trading marketplace is a high-risk investment that offers high rewards as well as big losses.
Forex trading for beginners involves getting acquainted with the forex marketplace and understanding how forex trading companies work.
Discovering the best forex brokers involves finding forex trading companies that follow regulations, offer users great customer service, a wide selection of currency pairs to choose from, and reasonable account details.
The best forex broker will adhere to many of these considerations and more.
As far as finding the best forex trading platforms, advanced analytical tools, ease of carrying out trade, and educational resources should all be areas that the forex trading platforms do extremely well in.
With all of this information now readily available to you, you can now find the best forex broker and best forex trading platform for your needs and begin trading in the forex marketplace.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.