The ForexBrokers.com annual forex broker review (four years running) is the most cited in the industry. With over 50,000 words of research across the site, we spend hundreds of hours testing forex brokers each year. How we test.
The best forex brokers for beginners offer three essential benefits. The first, and most important, they are a regulated and trusted brand that offers a user-friendly web-based platform. Second, they provide a strong variety of educational resources. Third, they provide access to quality market research.
In our review of forex and CFD broker offerings, we spent endless hours opening demo accounts, navigating forex platforms, conducting market research, testing website usability, as well as watching educational videos and webinars.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 65-82% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
What is Forex Trading?
Forex trading is the process of exchanging one currency for another, known as buying or selling currency pairs, based on prevailing exchange rates from the forex market. The forex market is the largest global market, with nearly $6.59 trillion in currency traded on average, per day, as of April 2019.
What is a Forex Broker?
When it comes to trading foreign currency, you use a forex broker, also known as a currency trading broker, to place your trades. When you trade forex, you buy or sell in currency pairs, e.g. "EUR / USD" (Euro / U.S. Dollar). You open an account, deposit funds, then use the broker's trading platform to buy and sell currency using margin. The forex markets are open 24 hours a day, five days a week.
To learn more about the basics of trading forex, we recommend the School of Pipsology alongside the NFA's Trading Forex booklet.
The Best Forex Brokers for Beginners
Here's a summary of the best forex brokers for beginner forex traders.
- Plus500 - Best for beginners overall
- Markets.com - Easy-to-use platform, expensive
- eToro - Best trading platform for copy trading
- Saxo Bank - Excellent platform, high minimum deposit
- easyMarkets - Unique (but pricey) trade protection tools
- Admiral Markets - Best forex education variety
- City Index - Great all-round offering
Best for beginners overall
The Plus500 web-based trading platform is extremely user-friendly, making it excellent for beginner forex and CFD traders. Beginners aside, the Plus500 platform offers only basic features and, overall, lacks in depth when it comes to trading tools and research.
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Easy-to-use platform, expensive
Thanks to its web-based MarketsX platform, Markets.com is easy to use and new trader friendly. However, Markets.com is pricey and lacks the feature-rich trading tools required to compete with the best trading platforms. Read full review
Best trading platform for copy trading
eToro is a winner in 2020 for its easy-to-use copy-trading platform where traders can copy the trades of other users across over 1,900 instruments, including CFDs on popular cryptocurrencies. The one downside of eToro is pricing; otherwise, eToro delivers.
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Excellent platform, high minimum deposit
For traders that can afford the USD 10,000 minimum deposit (GBP 500 for the UK), Saxo Bank offers competitive pricing, excellent trading platforms, brilliant research, reliable customer service, and over 40,000 instruments to trade. )
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Unique (but pricey) trade protection tools
easyMarkets is best known for its proprietary web-based platform that is easy to use and offers two beginner-friendly features: dealCancellation and Freeze Rate. Low-points in the easyMarkets lineup include a lack of forex market research tools, a limited offering of just 168 tradeable instruments, and a mediocre mobile app.
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Beginner Forex Features Comparison
Taken from our forex broker comparison tool, here's a comparison of the education features for the best forex brokers for beginners.
| Feature | Plus500 | Markets.com | eToro | Saxo Bank |
| Has Education - Forex | No | No | Yes | Yes |
| Has Education - CFDs | No | No | No | Yes |
| Client Webinars | No | Yes | Yes | Yes |
| Client Webinars (Archived) | No | No | No | Yes |
| Videos - Beginner Trading Videos | No | Yes | Yes | Yes |
| Videos - Advanced Trading Videos | No | Yes | Yes | Yes |
| Investor Dictionary (Glossary) | No | No | Yes | Yes |
| Education |
How much money do you need to trade forex?
While some forex brokers do not require a minimum deposit to start trading forex, most do. Unless opening a demo account, which uses virtual money to practice, most forex brokers require a minimum deposit of between $100 - $250 to start trading.
What are the most popular currency pairs?
The seven most frequently traded currency pairs (also known as the “Majors”) are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD, and USD/CAD. Approximately 85% of all forex trades take place across these seven pairs.
Can you get rich by trading forex?
While some forex traders will be able to get rich trading forex, the vast majority will not. Forex trading is risky. Historically speaking, several hedge fund managers have been able to get rich trading forex. For example, George Soros made over £1 billion in profit by short selling the sterling in 1992.
How do I start trading forex?
First, it is important to practice. Start by opening a demo account so you can get used to the trading platform and tools. Reading books is also important to learn how to conduct market research and perform technical analysis. Then, when ready, open an account, fund it, and start trading.
How do I choose a Forex Broker?
To select a forex broker, start by looking for brokers that are regulated in your country. Next, read full length forex reviews to assess the trading costs, tools, research capabilities, customer service, and other features of each forex broker. Finally, compare your top two choices side-by-side to decide on a winner.
Which forex brokers accept US or non-US clients?
Forex brokers who hold regulatory status in the US can accept US-based clients. Meanwhile, forex brokers who accept non-US clients will usually need to hold licenses in the countries where their clients reside.
For example, if you reside within the European Union (EU), you will be able to open an account with an EU-regulated broker. In contrast, if you live in a US state, you will need to open an account with a US-regulated broker.
The Best Forex Trading Platforms for Beginners
Here's a summary of the best forex trading platforms for beginners.
- Plus500 - Plus500 WebTrader
- Markets.com - MarketsX
- eToro - eToro
- Saxo Bank - SaxoTraderGO
- easyMarkets - easyMarkets web platform
- Admiral Markets - MetaTrader suite
- City Index - City Index Web Trader
Read Next
- Best Forex Brokers for 2020
- Best FX Brokers for Auto Trading 2020
- Best MetaTrader Brokers 2020
- How to Avoid Forex Scams
- Compare Forex Brokers
New! Ask our experts a question! Whether you are in university or a seasoned trader, we are here to help. Email us your broker specific question and we will respond within one business day. It is our satisfaction guarantee.
Methodology
For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers. Each broker was graded on 105 different variables and, in total, over 50,000 words of research were produced.
While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.
All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 1% each year, providing site visitors quality data they can trust. Learn more about how we test.
Forex Risk Disclaimer
"There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." Learn more.
