In the world of forex, the importance of a forex broker goes without saying since they serve as the primary access point when it comes to trading. Forex brokers facilitate the option for traders to get the opportunity to get the benefits of the banking network as well as purchasing and holding certain currency pairs. Despite there being many options to choose from, when it comes to evaluating the best forex brokers for beginners, there are three core characteristics that make them preferable: regulation, user-friendliness, and access to market research.
Below are some of the most popular forex brokers that are ideal for novice traders.
eToro
When it comes to copy trading, eToro surpasses other FX brokers thanks to its easy-to-use platform dedicated to copy trading. Copy-trading entails the idea of imitating the trades of professional traders by automatically incorporating them into individual accounts. Founded in 2007, eToro proves to be an exceptional social trading platform with the inclusion of the CopyTrader tool that allows using copy trading strategies. For this reason, eToro is one of the most preferred brokers among beginners.
Pros
- Regulated by multiple tier-1 and tier-2 jurisdiction
- User-friendly platform, ideal for beginners
- Top social copy trading platform
- Has access to over 3000 symbols
Cons
- Slightly more expensive than similar brokers
- Limited traditional research materials
IG Markets
Regulated by the FCA, CFTC, and NFA, IG Markets is among the most renowned brokers, preferred by both beginners and professionals alike. Traders can access over 17000 different assets, which include forex currencies, commodities, bonds equities, ETFs and more. The well-known multi-asset broker provides access to a broad trading package that includes research tools, educational instruments, and an array of tradable markets.
Pros
- IG is publicly listed on the London stock exchange and regulated by multiple regulatory bodies
- Access to a range of exceptional educational tools
- Intuitive web trading platform
Cons
- Pricier in terms of forex and CFD trading
Saxo Bank
Established in 1992, the Danish investment bank and multi-asset broker has been giving access to traders to excellent trading platform experience. With access to over 40000 securities, traders can choose from a range of tools, research options and premium features. Regulated by the FCA and FSA, Saxo Bank has traders in over 120 countries where they handle transactions worth million on a daily basis.
Pros
- Regulated by various regulatory bodies, Saxo Bank is low-risk for CFD and FX trading
- Has access to more than 40000 instruments
- Features a flagship platform called SaxoTraderGo offers a comprehensive platform for the traders
- Provides exceptional research facility with a broad product portfolio
Cons
- Minimum deposits are comparatively higher
- No live chat support
CMC Markets
Founded in 1989, CMC Markets is regulated by multiple regulatory bodies including FCA along with being listed on the UK stock exchange. The reputable broker has access to over 12000 tradable instruments, allowing traders the benefit of experiencing an excellent trading knowledge. With an easy account opening procedure, excellent educational instruments, prompt customer service, lower fees and more CMC Markets is preferred among most beginners.
Pros
- Lower fees in FX trading
- Intuitive web and mobile platform
- Access to sophisticated education and research tools
Cons
- Customer support is only available 24/5
Interactive Brokers
For active traders who intend to trade diverse markets and asset classes, Interactive Brokers is the right option for them. Traders can get access to lower transaction costs compared to similar brokers as well as the option to trade US-listed ETFs and equities as well as other investments like futures, options, and more. The flagship trading platform features by the brokerage are worth mentioning since it includes risk management tools, options analytics along with access to over 100 global markets. Traders can also get the benefit of real-time monitoring, streaming news as well as having customizable charts and access to market data.
Pros
- Provides a wide range of investment selection
- Supports more than 17000 mutual funds with no transaction fees
- Efficient research tools
Cons
- The website can be a little complex to navigate
- Complex structure in pricing
Conclusion
The journey of successful forex trading starts with choosing an FX broker that is reliable, effective, and goes along with your financial objectives. This is why conducting proper research is crucial when it comes to selecting the best forex broker especially if you are a beginner.