The ForexBrokers.com annual forex broker review (five 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.
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
- IG - Excellent education, most trusted
- eToro - Best trading platform for copy trading
- AvaTrade - Quality educational resources
- CMC Markets - Best web trading platform, excellent education
- XTB - Best customer service, great education
- OANDA - Quality research, user-friendly platform
Best for beginners overall
Plus500 is a trusted global brand that offers retail forex and CFD traders an easy-to-use platform and a thorough selection of tradeable instruments. While educational materials are limited, the Plus500 web-based trading platform is extremely user-friendly, making it excellent for beginner forex and CFD traders. Disclosure: being good for beginners does not mean it is easier to make money. Trading is risky.
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Excellent education, most trusted - Visit Site
Regulated and trusted across the globe, IG offers traders the ultimate package of excellent trading and research tools, industry-leading education, competitive pricing, and an extensive list of tradeable products. This fantastic all-round experience makes IG the best overall broker in 2021.
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Best trading platform for copy trading
eToro is excellent for social copy trading and cryptocurrency trading, and is our top pick for both categories in 2021. Furthermore, eToro offers a user-friendly web platform and mobile app that is great for casual investors, including beginners.
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Quality educational resources
AvaTrade is a trusted global brand best known for offering traders an extensive selection of trading platform options. Our testing found AvaTrade to be great for copy trading, competitive for mobile, mostly in line with the industry average for pricing and research, and a winner for investor education.
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Best web trading platform, excellent education
When it comes to education, CMC Markets competes with the best in the industry by offering forex and CFD traders a diverse selection of education in a variety of formats, including written articles, video updates, podcasts, and live webinars. Education aside, the CMC Markets Next Generation trading platform is fast, reliable, and comes packed with tools and features.
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Best customer service, great education
As a trusted multi-asset broker, XTB offers traders outstanding customer service and an excellent trading experience overall thanks to the xStation 5 trading platform. I was left impressed with XTB's education offering, thanks to its extensive written content and video materials. The only drawback is a lack of live webinars currently, although archived recordings are available.
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Quality research, user-friendly platform
As a trusted global brand, OANDA provides forex and CFD traders a limited offering of FX pairs and CFDs but stands out for its reputation and quality market research. OANDA's trading platform suite, fxTrade, is easy-to-use for new forex traders. OANDA provides a good balance of educational materials in both written and video formats, along with webinars conducted by its staff.
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Educational Materials 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 |
IG
Visit Site |
eToro | AvaTrade |
| Has Education - Forex | No | Yes | Yes | Yes |
| Has Education - CFDs | No | Yes | No | No |
| Client Webinars | No | Yes | Yes | Yes |
| Client Webinars (Archived) | No | Yes | No | Yes |
| Videos - Beginner Trading Videos | No | Yes | Yes | Yes |
| Videos - Advanced Trading Videos | No | Yes | Yes | Yes |
| Investor Dictionary (Glossary) | No | Yes | Yes | Yes |
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
- Plus500 - WebTrader
- IG - IG web platform
- eToro - eToro CopyTrader
- AvaTrade - AvaTrade WebTrader
- CMC Markets - Next Generation
- XTB - xStation 5
- OANDA - fxTrade
Read Next
- Best Forex Brokers for
- Best FX Brokers for Auto Trading
- Best MetaTrader Brokers
- How to Avoid Forex Scams
- Compare Forex Brokers
Methodology
For our 2021 Forex Broker Review we assessed, rated, and ranked 27 international forex brokers. Each broker was graded on 108 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.
