Best Forex Brokers For Beginners

Cheap Forex Platform With The Lowest Spreads = IC Markets

IC Markets is the cheapest forex broker for beginners with:

• The lowest spreads of any broker
• Low commissions of $3.50 per side
• No funding or withdrawal fees
• A free demo account for trading
• Australian and Europe regulation

Why IC Markets Is The Cheapest FX Broker

As well as a standard account type, the CFD broker offers an award-winning Raw Spread Account type. Similar to ECN brokers, IC Markets connects customers with top-tier liquidity sources such as banks and financial institutions, allowing retail investor accounts to access institutional grade spreads with no dealing desk (NDD) execution. Rather than wider no commission spreads, Raw Spread account holders gain access to ECN-like spreads as low as 0.0 pips while paying flat-rate commission fees based on volume.

Commission fees incurred by Raw Spread account holders are $3.50 per 100k traded or £2.50 per 100k if the base currency set is the pound. There are no deposit or withdrawal fees charged by IC Markets with a minimum deposit of $200 required to start trading.

Since the raw spread account doesn’t markup spreads the remaining difference between the ‘buy’ and ‘sell’ price of a currency pair like EUR/USD is set by the market. In the case of the IC Markets, their market size and access to liquidity pools have helped them achieve the lowest average spreads of any broker.

As shown below, IC Markets Raw Account spreads are incredibly competitive. The online broker offers the tightest spreads for major forex pairs such as:

• GBP/USD (Great British pound vs US dollar), with spreads averaging 0.40 pips
• EUR/GBP (Euro vs Great British pound), average spread 0.40 pips
• USD/SGD (US dollar vs Singapore dollar) average spreads 0.30 pips

IC Markets ECN Broker Spreads	EUR/USD GBP/USD EUR/GBP USD/SGD AUD/USD	EUR/USD GBP/USD EUR/GBP USD/SGD AUD/USD	EUR/USD GBP/USD EUR/GBP USD/SGD AUD/USD	EUR/USD GBP/USD EUR/GBP USD/SGD AUD/USD	EUR/USD GBP/USD EUR/GBP USD/SGD AUD/USD
	0.10	0.40	0.40	0.30	0.20
	0.10	0.20	0.40	1.30	0.20
	0.16	0.40	0.35	1.07	0.27
	0.20	0.50	0.40	1.50	0.20
	0.17	0.60	0.54	N/A	0.30
	0.20	0.60	0.50	10.00	0.40
	0.10	0.60	0.60	1.30	0.50
	0.40	0.70	0.60	3.00	0.70
	0.44	0.85	0.40	1.30	0.42

Data taken from broker website. Accurate as at 01/09/2020

Platforms Offered By IC Markets

Traders with IC Markets have the choice between MetaTrader 4, MetaTrader 5 or the cTrader trading platform. As an IC Markets customer, you can use the following trading tools to learn how to trade forex and develop trading strategies:

• A free demo account for virtual trading, allowing beginners to build confidence trading CFDs before using a live account
• Virtual private server (VPS) access for VIP traders
• Fast NDD order execution
• Advanced trading tools with a suite of plug-ins to enhance MetaTrader 4 (i.e. sentiment trader and correlation trader)
• Automated trading with Expert Advisors (MT4 and MT5) and cBots (cTrader)
• Third-party copy trading software such as Myfxbook and ZuluTrade

As well as low spreads and an excellent range of trading platforms for beginners IC Markets is seen as a trusted broker around the world. IC Markets Australian subsidy is regulated by ASIC (Australian Securities and Investments Commission, AFSL 335692), while European operations are overseen by CySEC (Cyprus Securities and Exchange Commission, Licence No 362/18).

Overall, if keeping trading costs to a minimum is your key objective when testing currency and CFD trading, then IC Markets is the recommended broker for you.

Full Review Of IC Markets >>Visit IC Markets >>

Pepperstone Is The Best MetaTrader 4 Broker

Pepperstone is an ASIC and FCA regulated broker that facilitates forex and CFD trading for traders around the world, and spread betting for UK traders. The top broker offers the MetaTrader 4 trading platform as well as ultra-tight spreads, fast execution and great market access.

MetaTrader 4 (MT4) is the most popular forex trading platform worldwide. An advantage for a beginner forex traders choosing MT4 is they can switch forex brokers if needed since most online brokers offer the platform. MT4 is hugely popular for a number of reasons, including the ability to copy-trade and purchase automated robots from the widest trading community for retail investor accounts.

Why Pepperstone Is The Best MT4 Broker For Beginner Traders

While Pepperstone customers can choose between MetaTrader 4, MetaTrader 5 and cTrader, MT4 is suitable for both beginner and experienced traders, with extensive financial instruments and automated trading tools available.

MT4 trading tools and features include:

• A customisable, user-friendly interface
• Charting tools with 85 inbuilt indicators
• Algorithmic trading via Expert Advisors (EAS, trading robots)
• Develop EAs using the MQL4 programming language or download from the huge MT4 community and marketplace
• Backtesting for EAs
• Autochartist, an automatic market scanner to detect trading opportunities
• Third-party account mirroring services for social trading (Myfxbook, ZuluTrade and Duplitrade)
• Limit and stop-loss order types
• Real-time news

As well as the comprehensive range of inbuilt trading tools, MetaTrader users can download an additional suite of Smart Trader Tools to enhance the MT4 platform. The package includes 28 additional technical indicators and Expert Advisors, designed to automate market research, analysis and trading.

No Dealing Desk Execution

With straight-through-processing (STP), Pepperstone sources liquidity from 22 top-tier providers, providing traders access to some of the best spreads available to retail investor accounts. Orders are executed with no dealing desk (NDD) and Equnix servers allow for fast execution speeds. As shown below, Pepperstone executes orders faster than competing online brokers, ensuring traders experience minimal slippage.

MT4 Education and Demo Accounts

As CFD and forex trading is complex and comes with a high risk of losing money, Pepperstone provides an excellent demo account and quality educational resources.

A comprehensive MetaTrader 4 course is available on Pepperstone’s website that is designed to help beginner traders learn their way around the trading platform. Those new to trading can learn about platform features, mobile trading, Expert Advisors, VPS and Smart Trader Tools in detail with the 11-part course.

Lastly, Pepperstone offers a demo account where traders can explore the MT4 platform and test trading strategies. $50,000 of virtual funds are provided with the trial account available for 30 days.

View Pepperstone Review >>Visit Pepperstone >>

Best Beginner Forex Broker = ThinkMarkets

There are six reasons why ThinkMarkets was rated the top forex broker for beginner traders:

1. $0 minimum deposit and no deposit fees
2. Negative Balance Protection
3. Low trading fees with spreads from 0.4 pips
4. Forex training and 24/5 customer support
5. Three leading trading platforms including MT4
6. Tier 1 regulation in the UK, Australia and SA

1) $0 Minimum Deposit Requirement for Standard Account Type

ThinkMarkets offers two forex trading accounts. The Standard account type is designed for beginner traders, with no commission fees and a $0 minimum deposit requirement. There are no funding costs with deposit methods such as wire transfer, debit card, Neteller, Skrill and credit card. In Australia Paypal and POLi can be used as payment methods, while in South Africa Zotapay Africa is available. As well as fee-free deposits, ThinkMarkets also charges no withdrawal fees.

2) Negative Balance Trader Protection

To help reduce the high risk that comes with forex and CFD trading, the online broker does not allow traders to lose more than they have deposited into their trading account. This is due to the broker providing customers with negative balance protection. Negative balance protection closes a trader’s open positions if their balance reaches $0. If additional losses occur due to high volatility in CFD and foreign exchange markets, the broker will pay out any negative balance. Most forex brokers do not offer this feature which gives peace of mind for traders using the ThinkMarkets platform.

3) Low Trading Fees With No Commissions

The ThinkMarkets standard account type is called a spread only account. This means that the forex broker makes their money primarily from the difference between the ‘ask’ and ‘sell’ price of any forex pair. The minimum spread is 0.4 pips and the average spread is 1.2 pips on the commonly traded major forex pairs.

For experienced traders wanting ECN-style pricing, a ThinkZero account type is available which offers tighter spreads while charging a flat rate commission fee. Although spreads are wider than a ThinkZero account type, standard account types are better suited for those new to trading as beginner traders can avoid complex commission fee calculations.

4) Forex Training and Customer Support

ThinkMarkets offers an online training course for beginner, intermediate and experienced traders. As well as weekly webinars and trading platform tutorials, there are also trading guides covering topics such as:

• Understanding Market Trends
• Support and Resistance
• Chart Patterns
• Introduction to Candlesticks
• Building a Watch List
• MT4 Tips and Tricks
• Introduction to Price Action

Customer service is available 24 hours a day, 5 days a week (weekdays) and is based out of the following locations:

• London, UK
• Melbourne, Australia
• Johannesburg, South Africa

There are also local numbers in Italy and Spain.

5) A Selection of the Best Forex Trading Platforms

ThinkMarkets customers can choose from MetaTrader 4 (MT4), MetaTrader 5 (MT5)  or the online brokers proprietary trading platform, ThinkTrader.

MetaTrader 4

MT4 is the most popular trading platform worldwide and is ideal for beginner forex traders. MT4 features include:

• Ultra-fast trade execution
• Automated trading: Algorithmic trading with Expert Advisors (EAs) and copy trading with Trading Signals
• Backtesting for Expert Advisors
• Multiple order types
• Autochartist

Autochartist is an excellent tool for beginner traders as the software automatically scans CFD and foreign exchange markets seeking trading opportunities that those new to trading may miss. Autochartist simplifies and automates technical analysis, allowing beginners to save time researching markets and conducting analysis.

MetaTrader 5

MetaTrader 5 offers certain improvements compared to MT4 including more timeframes, technical indicators, charts and pending order types, as well as improved backtesting, yet many features such as Autochartist and the platforms social trading tools remain the same. MT5 is better suited to trading CFDs as the platform provides access to a wider range of financial instruments including Share CFD and ETFs. MT4 and MT5 are available as the following trading apps:

• Desktop trading platform for Windows and Mac PCs
• Web platforms for online trading through any browser
• Tablet and mobile apps designed for iOS and Android devices

ThinkTrader

Lastly, the online brokers proprietary trading software is well-known for its user-friendly yet advanced charting tools. To trade forex via ThinkTrader, customers can choose between a desktop trading platform and trading apps compatible with both iOS and Android devices. ThinkTrader platform features include:

• Real-time market news and alerts
• Sophisticated technical analysis tools: 100 technical indicators, 40 objects, 12 timeframes and 10 charts
• Close all or multiple orders with one click
• Multi-device login between desktop, tablet and mobile apps
• Trend-risk scanner: Trading signals feature that automatically scans markets for trading opportunities
• Pending order types including limit and stop-loss orders
• A range of asset classes including forex, commodities, indices, shares and cryptocurrencies

6) Tier 1 Regulation

Beginner traders should only choose a broker that has tier 1 regulation. ThinkMarkets is overseen by three core financial authorities, with trading regulation varying between jurisdiction:

1. Australian Securities And Investment Commission (ASIC) in Australia – AFSL 424700
2. Financial Conduct Authority (FCA) in the United Kingdom – Licence Number 10537331
3. Financial Sector Conduct Authority (FSCA) in South Africa –  FSP No 49835

ThinkMarkets is the Best Online Broker Overall for Beginner Traders

ThinkMarkets is a top CFD broker ideal for novice traders with relatively low fees, top-tier regulation and strong trader protection. Customers can choose between three easy-to-use platforms being MT4, MT5 and the online brokers proprietary trading software, ThinkTrader. If beginner traders want to learn how to trade forex before using a live account with real money, ThinkMarkets offers a demo account.

Full ThinkMarkets Review >>Visit ThinkMarkets >>

Top Social Trading Platform = eToro

eToro is a pure social trading broker and platform that suits beginner traders wanting to spend as little time possible researching financial markets and developing trading strategies. eToro’s trading platform allows customers to copy the strategies of experienced investors while sharing ideas via newsfeeds and connecting with traders around the globe.

Social-Copy Trading with eToro’s CopyTrader

eToro clients can copy the trading strategies of experienced traders, known as Popular Investors. To find trading strategies to copy that suit your risk tolerance and investment objectives, traders can view a Popular Investors trading history, portfolio performance and location.

Social trading is a soft entry into currency trading for beginners as more experienced traders are conducting the fundamental and technical analysis for you. It can be an opportunity to learn from active traders who have vast experience trading financial instruments.

As well as forex pairs, eToro’s Popular Investors develop trading strategies that include Stocks, Commodities, ETFs, Indices and Cryptocurrencies such as Bitcoin.

CopyPortfolios

Rather than copying Popular Investors strategies eToro customers can also invest in CopyPortfolios that include a bundle of financial instruments. Two types of portfolios are available with the broker requiring an initial minimum deposit of $5000, yet traders face no portfolio management fees.

• Top Trader Portfolios: A bundle of trading strategies developed by eToro’s top-performing, highly experienced traders.
• Market Portfolios: A bundle of top-performing assets such as Share CFDs, ETFs and Commodities.

Best Demo Account For New Forex Traders = Forex.com

One of the best educational tools a beginner trader can use is demo accounts. Two different demo accounts are available, one designed for the brokers proprietary trading platform and the other for MetaTrader 4 (MT4).

With real-time market conditions demo users can practice trading forex and CFDs in the same environment as a live account. Backtesting can also be carried out against historical data on both platforms as well, with over 80 forex pairs and metals available.

Demo accounts are available for 30 days, with demo trading accounts funded with $10,000 of virtual money. Traders can open one demo accounts per platform, therefore beginners who are unsure of which platform to try out can open one of each.

Leading Risk Management Features =easyMarkets

EasyMarkets offers forex traders three key risk management tools to reduce the risk of CFD and forex trading. Beginner traders can protect their trading account balances by utilisingeasyMarkets deal cancellation, guaranteed stop-loss orders to manage the high risk while automatically receiving negative balance protection from the online broker.

Deal Cancellation

In 2016 easyMarkets was the first forex broker to launch Deal Cancellation. The tool allows forex traders to cancel a trade within 60 minutes and get your money back when the market moves in the wrong direction.

Free Guaranteed Stop Loss Orders

All forex brokers offer stop-loss features on trades which allows currency traders to pre-set the amount they are willing to gain or lose on a trade. The issue though is that gapping can occur in markets which can lead to a forex broker to not sell at the pre-determined price requested. This leads to slippage which can potentially lead to higher losses than expected. A guaranteed stop loss on the other-hand guarantees you will get the price that was set for free (many brokers charge a fee for GSLOs).

Negative Balance Protection

Leverage offered by all forex brokers amplifies any profits or losses currency movements lead to. While guaranteed stop losses and deal cancellation are two options that easyMarkets traders can activate, some trader may not opt-in for these features.

To further protect traders who don’t use risk management features, the forex broker has created a negative balance protection scheme. This protection automatically activates a ‘margin call’ when a trader is approaching a zero balance to avoid them going into debt. This closes the trader’s active position. There is a risk that the market is too volatile for this tool to close all positions in time so easyMarkets has the policy to cover any additional losses to guarantee the trader won’t end up in debt.

Deal cancellation, guaranteed stop-loss orders and negative balance protection are three features ideal for beginner trading strategies that often incorporate technical analysis to manage the risks of forex trading.

View easyMarkets Review >>Visit easyMarkets>>

Best Access to Foreign Exchange Markets and Stock Markets = CMC Markets

CMC Markets provides access to over 9,500 financial markets and is overseen by top-tier regulators around the world (FCA, IIROC, ASIC, FMA, MAS). To trade Shares and CMC’s full product range traders are required to use the brokers proprietary trading platform, Next Generation.

Next Generation

The easy-t0-use trading platform is available in a Standard layout suited to beginners with many inbuilt features to help with trading and risk management.

• Comprehensive charting tools: 115 technical indicators, 70 chart patterns plus 12 chart types
• Automatic pattern recognition and price projection tools to find trading opportunities
• Client sentiment data
• A trading community with chart forums to share ideas and chart analysis
• iOS and Android mobile apps
• Real-time news and financial market calendar
• Multiple order types including guaranteed stop-loss orders

Financial Instruments Available to Trade

• Forex CFDs: 330+ major, minor and exotic fx pairs
• ETFs and Share CFDs: 9000+ shares from 23 different countries including 2000 Australian stocks
• Commodities: 100+ commodity products such as Natural Gas, Oil and Metals
• Treasury CFDs: 50+ treasuries such as US T-Bonds and Euro Bonds
• Index CFDs: 90+ major indices including the Germany 30, Australia 200, and UK 100.
• Cryptocurrency CFDs: Includes Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Dash, EOS and Monero.

View CMC Markets Review >>Visit CMC Markets>>

Top Automated Trading Tools for Beginner Traders = FP Markets

FP Markets is an excellent option for automated trading as the broker offers ultra-fast execution, MetaTrader 4 and MetaTrader 5 platforms and well as copy trading tools. With fast execution and ECN-style pricing, FP Markets customers can trade knowing their orders are being executed promptly with minimal slippage.

MT4 and MT5 Expert Advisors

Traders can develop and run Expert Advisors (trading robots) on both MetaTrader 4 and MetaTrader 5. When using MT4, Expert Advisors (EAs) are written using the MQL4 programming language with MT5 traders using MQL5. Those new to trading may find writing and developing your own EAs intimidating. An easier way to implement algorithmic trading strategies is buying and downloading indicators and EAs from the large MetaTrader marketplace online.

Both trading platforms offer backtesting abilities, yet MT4 only provides single currency, single thread backtesting while MT5’s offers multi-currency multi-thread strategy testing.

Myfxbook AutoTrade for MT4

Beginner traders who prefer copy trading to algorithmic trading can directly connect Myfxbook to their FP Markets MetaTrader 4 account. MT4 users can find and copy a wide range of systems.

AvaTrade offers Mac users direct access to 250+ financial instruments via MetaTrader 4. The MT4 Mac interface is easy-to-use and specifically designed for Apple devices to ensure efficient analysis. The web trader platform requires no download and can be accessed from most browsers, with Desktop, iPhone and iPad trading apps also available.

Those using AvaTrade’s MT4 Mac trading platform can incorporate a range of asset classes into their trading strategies including Forex, ETFs, Shares, Commodities and Indices.

AvaTrade’s MT4 Mac Trading Platform

• Analysis tools: 3 chart types and 30 analytical tools
• Multiple order types with trailing stop-loss orders and pending orders
• One-click trading
• Automated trading with Expert Advisors (MQL4)
• Mac demo account