Best Forex Account for Beginners

Best Forex Account For Beginners

Best Forex Account For Beginners Comparison Table
Online BrokerMinimum DepositOnline Trading PlatformsKey Account Features
$29
Minimum Deposit
Trading Platform
Online Trading Platform
CFD Account: Trade Size As Low As 0.01 Standard Lots, Fixed Spreads On Some Major Pairs, 150+ Forex Pairs, Low Minimum Deposit
Key Account Features
$5
Minimum Deposit
MT4, MT5
Trading Platforms
Micro Account: Trade Size As Low As 0.0001 Standard Lots, $5 Minimum Deposit
Key Account Features
$50
Minimum Deposit
MT4, Advanced Platform, Web Trader
Trading Platforms
Major Forex Broker, Trade Size As Low As 0.01 Standard Lots, $50 Minimum Deposit, 90+ Forex Pairs
Key Account Features
$100
Minimum Deposit
MT4, MT5, R Trader
Trading Platforms
Cent Account: Trade Size As Low As 0.0001 Standard Lots
Key Account Features
$10
Minimum Deposit
MT4, MT5
Trading Platform
Cent Account: Trade Size As Low As 0.0001 Standard Lots, Low Minimum Deposit
Key Account Features
$10
Minimum Deposit
Trading Platform
Online Trading Platform
Basic Account: $1 Minimum Order Size, $10 Minimum Deposit
Key Features

Forex Accounts For Beginners

This page lists a number of potential choices of Forex accounts for beginners in the table above, then attempts to pick a best Forex account for beginners, based on the observations made in the following article.

The beginner trader is by definition inexperienced in trading. What this can mean is that the beginner trader may have a tendency to make errors, including ones related to placing a trade. While the beginner trader should study before starting to trade, there is a difference between doing this and trading by oneself.

The definition of a more experienced trader is arguably one who can trade comfortably by themselves. The best Forex account for beginners is a demo account, as this is a way to become familiar with the online trading platform and to practice trading, without risking any real money (the demo account uses virtual funds, which is not real money and cannot be withdrawn).

However the problem with a demo account, is that the sums in it tend to be larger than those used by the trader, though some brokers let the trader set smaller sizes. This means that the trader may trade in a way different from the way the way they will trade with real money in their account. For example, position sizes can be larger and there will be more room in the account for trades to retrace, that is move against the traded direction, which is to be expected.

Then there is the difference in mindset between trading on a demo account risking no money and trading on a real account and risking real money. What may tend to happen is that the trader trades in a textbook way on the demo account and then finds it very hard to do this on the real account and trades without caution or too cautiously. This problem does not necessarily fade with experience either, though the trader may find workarounds for this.

So what the trader can do is start trading on a real account with small trade sizes, having practised on a demo account. The amount of capital needed to open a position is based on a number of factors, including the value of the traded market, the leverage used and the trade size. Increasing leverage increases risk (meaning it may defeat the purpose to be able to trade effectively simply to use high leverage), therefore the trader may want to limit the leverage used.

Forex is a market which can be traded from the very small trade size to large, simply by increasing the lot size (the Forex trade size) and the number of lots traded. However for many Forex brokers the lowest trade size is a micro lot. A standard micro lot is a 1/100th of a standard Forex lot. Thus the trade size is 0.01 standard lots. However the beginner trader may wish to go lower than this. To do so, they may use a cent account. This is a MT4 or MT5 account which is set by the broker to be denominated in cents (instead of dollars). Therefore a micro lot on a cent account is 0.0001 standard lots (1/100th of a standard micro lot). However while MT4 and MT5 can be used by beginners, and are arguably a good way to start trading Forex, the trader may wish to trade on a platform which is designed to be used by the beginner trader, which is to say a clear, easy to use platform.

Thus the potential requirement are a broker which lets the trader trade with small order sizes, offers Forex, has an approachable trading platform suited to beginners and lets the trader trade with a small account size (i.e. has a small minimum deposit). There are a number of possibilities and indeed some factors may be less important than others. For example, the trader may wish to trade with a larger account size, and perhaps trade on micro lots initially. Or the trader may wish to trade on MT4 or MT5 (MT5 is the successor to MT4). The table above lists a number of these possibilities.

Best Forex Account For Beginners

Given the caveats noted above, this site will attempt to pick a best Forex account for beginners. The pick is IQ Option's Basic account. IQ Option has a distinctive platform which aims to make the trading experience more obvious and user friendly. It has a low minimum deposit of $10. It does not use micro lots, what this broker does is set a minimum order size of $1. This means that the trader can trade with a smaller account size and position sizes. The trader may increase trade sizes as they become more proficient.

IQ Option has a relatively large number of Forex Pairs in total offered, with 85+. There is also a range of other markets to trade, including Cryptocurrency CFDs and Stocks CFDs. However as noted above, the best Forex account is arguably a demo account and the trader can switch from demo to real account on the platform at any time (the demo account does not expire).

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