FOREX.com is the best forex broker for beginners because of its user-friendly platform, educational resources, and excellent customer support. They offer a wide range of tools and tutorials to help beginners understand the complexities of forex trading.
A solid online forex broker can help you get started as a forex trader. Your broker will serve as your primary access point for the foreign exchange market. All the forex brokers on this list are regulated, offer user-friendly platforms, demo accounts, transparent costs and great customer support.
Quick Look: Best Forex Brokers for Beginners
- Best for Overall for Beginners (US & Int): FOREX.com
- Best for Simplified Trading Platform (US & Int): Trading.com
- Best for Ease-of-Use (US & Int): Plus500
- Best for No Commissions (US & Int): tastyfx
- Best for Educational Resources (Int Only): AvaTrade
- Best for Copy Trading (Int Only): eToro
Compare Forex Brokers
Best Forex Brokers for Beginners
Your ideal choice for a forex broker should be well-regulated in its local jurisdiction, accept clients from your country, have tight dealing spreads and a sufficient variety of currency pairs and other assets to suit your trading needs.
1. Best for Overall for Beginners: FOREX.com
- Best For:Earning Cashback on TradesVIEW PROS & CONS:securely through Forex.com's website
FOREX.com ranks No. 1 as our choice for the best forex broker for beginners in the U.S. The broker is strictly regulated by the NFA and CFTC, while its subsidiaries are overseen by 6 other major regulators around the world.
Why We Picked It: FOREX.com is widely regarded as the top forex broker for beginners due to its user-friendly platform, comprehensive educational resources, and 24/7 customer support. They offer a variety of tools and tutorials to help newcomers grasp the complexities of forex trading along with a 5% cashback deal for new account openings by U.S. residents. The round-the-clock customer service is especially valuable for beginners who might feel overwhelmed by the forex market.
2. Best for Simplified Trading Platform: Trading.com
- Best For:$100 Welcome BonusVIEW PROS & CONS:securely through Trading.com's website
Trading.com is becoming the go-to choice for forex traders seeking a straightforward yet effective trading platform. Tailored for modern traders, it has a user-friendly interface that streamlines trade executions, especially for those who prioritize simplicity over complex features.
Why We Picked It: Trading.com has highly competitive spreads, ensuring cost efficiency for users which is important for beginners. The platform has an attractive design, blog and video tutorials and is easy navigation providing a seamless trading experience. They also offer a $100 welcome bonus for new forex accounts opened by U.S. residents.
3. Best for Ease-of-Use: Plus500
- Best For:Forex and CFD Trading for Mobile UsersVIEW PROS & CONS:securely through Plus500 Forex's website
Plus500 has a user-friendly platform that is easy to navigate and understand, making it great for those who are new to trading in the forex market. Plus500 offers a demo account option so you can practice trading with virtual money before risking your own capital.
Why We Picked It: Plus500 has a wide range of educational resources and tools available for beginners, including tutorials, guides, and market analysis, to help you learn the basics of forex trading and make informed decisions.
4. Best for No Commissions: tastyfx
- Best For:$10,000 Funding BonusVIEW PROS & CONS:securely through tastyfx's website
tastyfx (formerly IG Markets) is a forex and CFD broker overseen by the CFTC and NFA, so it can accept U.S.-based clients. It’s also strictly regulated in the U.K. by the Financial Conduct Authority (FCA).
Why We Picked It: tastyfx provides an extensive range of educational materials in various formats, along with a dedicated mobile app for learning, called IG Academy. They are considered a highly trusted broker and take a heavy focus on ensuring a seamless trading experience for its users.
5. Best for a Educational Resources: AvaTrade
- Best For:Non U.S. Forex & CFD TradersVIEW PROS & CONS:securely through AvaTrade's website
AvaTrade is a forex trading platform that offers various features and tools for traders of all levels. The platform is recognized for its user-friendly interface and intuitive design, making it simple for beginners to navigate and execute trades. Unfortunately, AvaTrade does not accept U.S. forex traders.
Why We Picked It: When it comes to educational resources AvaTrade leads the way. They offer basic and advanced educational tool and resources helping international forex traders learn the ins and outs of the forex market.
6. Best for Copy Trading: eToro
eToro is a social trading platform and multi-asset investment broker. They lead the way in copy trading, which involves selecting an experienced trader whose trades you copy automatically in your own account. Keep in mind, eToro does not accept U.S. forex traders.
Why We Picked It: eToro specializes in social trading accessed via its CopyTrader tool and offers an excellent social trading network. This trading option seems ideal for beginners since you can sit back and let expert traders with a proven track record direct the trades in your account.
How to Choose a Forex Broker as a Beginner
Choosing a forex broker as a beginner can be a daunting task given the amount of options available. However, focusing on a few key factors can simplify the process and help you select a broker that suits your needs. Here’s a some guidelines to help you make an informed decision:
Regulation and Security
- Check broker regulation: Ensure the broker is regulated by a reputable financial authority such as the U.S. Commodity Futures Trading Commission (CFTC), the UK’s Financial Conduct Authority (FCA), or the Australian Securities and Investments Commission (ASIC). Regulation provides a level of security and oversight, protecting you from fraudulent practices.
- Verify credentials: Cross-check the broker’s regulatory credentials on the regulator’s official website that corresponds to the country you are trading from to confirm their authenticity.
Account Types and Minimum Deposits
- Account options: Look for brokers that offer a variety of account types to accommodate different trading styles and budgets, including demo accounts for practice and learning.
- Minimum deposit requirements: Choose a broker with a minimum deposit requirement that aligns with your budget. Many brokers offer accounts with low or no minimum deposit requirements, which is ideal for beginners.
Trading Platform and Tools
- Platform usability: The trading platform should be user-friendly, intuitive, and compatible with your preferred device (desktop, web, or mobile). Popular platforms like MetaTrader 4/5 or cTrader are widely recommended.
- Technical tools and features: Ensure the platform provides essential tools for technical analysis, charting capabilities, and automated trading options.
Costs and Fees
- Spreads and commissions: Compare the spreads (difference between bid and ask prices) and commission structures. Lower costs mean higher profitability, especially for beginners with smaller capital.
- Additional fees: Be aware of other potential fees such as withdrawal charges, inactivity fees, and overnight financing rates (swap rates).
Leverage and Margin Requirements
- Leverage options: Understand the leverage options offered by the broker and how they align with your risk tolerance. Higher leverage allows for larger trades with a smaller capital but increases the risk for loss.
- Margin requirements: Check the margin requirements to ensure you understand how much capital is needed to maintain your positions.
Customer Service and Support
- Availability and accessibility: Look for brokers that offer great customer support available through various channels (phone, chat, email) and during trading hours.
- Language and response time: Ensure customer support is available in your preferred language and check reviews for their response time and helpfulness.
Educational Resources
- Learning materials: A good broker for beginners should offer educational resources such as webinars, tutorials, articles, and demo accounts to help you learn and practice trading.
- Market analysis: Access to daily market analysis and insights can be beneficial for understanding market trends and making informed trading decisions.
Deposit and Withdrawal Options
- Convenience and flexibility: Check the deposit and withdrawal methods to ensure they are convenient and flexible for you. Look for options that are secure, low-cost, and easy to use.
- Processing time: Consider the processing time for deposits and withdrawals to avoid delays in funding your account or accessing your money.
Reputation and Reviews
- Broker reputation: Research the broker’s reputation through online reviews, forums, and trader communities. Look for consistent positive feedback and check for any major complaints or issues.
- Time in the market: Brokers with a longer track record in the market often have more reliability and stability.
Trading Instruments and Market Access
- Range of instruments: Ensure the broker offers a wide range of trading instruments, including major, minor, and exotic currency pairs, as well as other assets like commodities, indices, and cryptocurrencies if you plan to diversify.
- Market access: Confirm that the broker provides access to the markets you are interested in trading.
Additional Resources
- Demo trading: Before committing real money, use a demo account to practice trading and understand how the broker operates.
- Seek recommendations: Talk with experienced traders or financial advisors to get recommendations based on your needs and goals.
- Join forex communities: Engage with online forex communities and forums to learn from other traders’ experiences and insights.
With these guidelines in mind, you’ll be well-equipped to choose a forex broker that aligns with your trading goals and provides a solid foundation for your trading strategy.
Frequently Asked Questions
Can I trade forex with $10?
Yes, some online forex brokers will accept clients with a very low minimum deposit like $10 or even less.
What is a PIP?
An acronym for “percentage in point”, a pip is the traditional smallest change in a currency pair’s exchange rate. For most currency pairs, a movement of 1 pip is a 0.0001 change.
Can I trade forex without a broker?
Yes, you can trade in the over the counter (OTC) forex market with major financial institutions using credit lines if you are a high net worth individual or corporation, and you can even perform rudimentary forex trading via local cambios. If you’re a retail trader with a modest amount of risk capital to use as margin, you’ll need an online forex broker to trade currency pairs through.
Get a Forex Pro on Your Side
FOREX.com, registered with the Commodity Futures Trading Commission (CFTC), lets you trade a wide range of forex markets with low pricing and fast, quality execution on every trade.
You can also tap into:
- EUR/USD as low as 0.2 with fixed $5 commissions per 100,000
- Powerful, purpose-built currency trading platforms
- Monthly cash rebates of up to $9 per million dollars traded with FOREX.com’s Active Trader Program
Learn more about FOREX.com’s low pricing and how you can get started trading with FOREX.com.
About Luke Jacobi
Luke Jacobi is a distinguished professional known for his role as President at Benzinga, a renowned financial media outlet. With a background in business operations and management, Luke brings valuable expertise to his position, overseeing various aspects of Benzinga’s operations. His contributions play a crucial role in the company’s success, ensuring efficiency and effectiveness across different departments. Prior to his role at Benzinga, Luke has held positions that have honed his skills in leadership and strategic decision-making. With a keen understanding of the financial industry and a commitment to driving innovation, Luke continues to make significant contributions to Benzinga’s mission of providing high-quality financial news and analysis.