If you choose the right broker, online Forex trading is easy for beginners. As a beginner trader, the first thing to do is choose the best Forex broker.
Many people fall for the traps of scam brokers who only want to take their money. It is crucial to know how to identify the best broker for beginners in order to avoid falling for scammers. This guide will help you choose the right Forex broker and how to avoid scammers. We will also share some of the most trusted Forex brokers with you.
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How to find the best forex broker?
A number of important characteristics make Forex brokers best for beginners: high-quality regulation, low fees, and extensive market experience. All else is secondary.
You can also see our independent Forex broker rating with real reviews by traders.
For beginners, regulation of the top Forex broker best forex brokers for beginners
When choosing a broker, the first thing to consider is how they will regulate it. Forex trading is a risky financial activity. Financial regulators license the best Forex brokers. You can replenish your account safely with large amounts if brokers are licensed by financial regulators. This will ensure that your funds are safe and also allow you to return your funds in the event of bankruptcy.
A state structure is in place to monitor the activities of Forex brokers in countries with developed economies. These are the major Forex regulators and financial regulators in the world.
Australia – Australian Securities and Investment Commission
United States of America – Commodity Futures Trading Commission, (CFTC);
United Kingdom – Financial Regulatory and Supervisory Authority, (FCA);
Cyprus – Cyprus Securities and Exchange Commission.
Forex brokers offer spreads and commissions for beginners
For his mediation services between interbank market traders and traders, each broker charges his clients a fee. Some brokers charge a fixed commission, while others charge a spread.
What is a spread?
You may have noticed that the price of a Forex currency pair is different for short and long positions. Spread is a term used to describe this phenomenon.
Imagine opening a position to purchase EURUSD at 1.1245 USD per EUR. Your broker will charge 1.1246 USD for 1 EUR if the EURUSD spread is one pip.
You now know that the lower your spread, the more you will pay per trade. You will be best served by a broker with a low spread, especially when dealing in major Forex currency pairs.