Beginning FOREX traders always have a question, which FOREX broker to choose from a myriad of brokers available? In particular, new traders want to know if a particular FOREX broker is reliable, executes the FOREX trades in a reasonable time, and provides multiple FOREX trade reporting services including trade reports for online trade activities. Before we proceed, we want to disclose that Platinum Trading Institute is in no way affiliated with any of the online FOREX brokers and our opinion is not influenced by any forex brokers mentioned in this article.
Today’s Article is for Beginner forex traders who are unsure about which Forex Broker to choose from many. You can learn more on our beginners’ introductory forex course by filling out our online consultations here.
Is a right forex broker important for my success?
Platinum Trading Institute (PTI), and its sister online academies (Platinum Trading Associates, Platinum Crypto Associates) have been teaching FOREX trading for almost a decade. During that time, we have mentored hundreds, if not thousands of students across the Globe. These students have provided us with their opinions on several brokers and their respective currency trading platforms over the years. Based on their feedback, we at PTI firmly believe that selecting a right broker is of paramount importance, and every FOREX trader needs to be careful about selecting a broker that fits his temperament, trading style, and trading budget.
Platinum Trading Institute has a 2-hour course special on what is FOREX and how you can make a part-time or secondary income within a matter of 30 days so what is stopping you except you. Signup below.
The expert trader/mentors at PTI have researched and produced a guide for most trader friendly brokers that would make your FOREX trading journey fruitful and a pleasant one!
PTI’s PICK FOR BEST FOREX BROKERS
1. IG – In our opinion, this is a five-star company that offers the most security and ease of trading for its clients. They are experienced and have been in the trading brokerage business for over forty years. They are also regulated by the Financial Conduct Authority (FCA), offering peace of mind to the individual – even small FOREX traders. They offer variable spreads, though those are very low for major currency pairs like EUR/USD or USD/JPY.
IG’s strength stems from the fact that it is a fully-regulated International company having a listing on UK’s FTSE 250. As a result, its services are reliable, trustworthy, and trader friendly. They also offer services in CFDs, FOREX trading, and financial betting. Due to its size, it caters to beginner traders, intermediate currency investors, and advanced speculators around the Globe.
Now, if you are a US citizen then the options for brokers are somewhat limited. US FOREX brokers are regulated by either NFA or CFTC and are subject to stringent restrictions designed to protect the individual traders. For example, these NFA regulated brokers must limit their leverage to 50-to-1 and conform to rigorous record keeping requirements.
2. Forex.com – This is the flagship FOREX broker in the US, and as being the largest broker in the US it offers a variety of trader friendly services that make it a preferred broker by many. In addition to forex, one can trade gold, silver, and oil on its rather average MT4/MT5 based trading platform. Its charting tools are less than desirable and offer rather limited options for adjusting and manipulating data.
However, it is one of the most popular platforms routinely used by our students. Among the attractive features, it does not charge any commissions on trades made on its platform. Their commission comes from Bid/ask spreads, where these spreads are rather industry average. It provides some educational services to traders with periodic webinars and online BLOGS.
PTI’s students have found this as a currency trading brokerage firm of choice due to its low spreads, security, and as it offers trading in commodities as well. In addition to the above two, our students have also voted for TD America.
3. TD America – Traditionally founded as equity trading brokerage house, it also provides excellent FOREX brokerage services. The advantage of TD America is its size, offering of a variety of other online trading services like online options trading, and commodities. Another advantage of having it as your trading partner is its ‘Think or Swim,’ trading platform and full brokerage service offered by it. We would recommend it for our intermediate or more advanced clients.
In addition to the above three, there is a myriad of brokerage houses that offer FOREX trading services for beginners to more advanced traders. They include a Swiss brokerage firm, Dukascopy, e-Toro, FX-Pro, and Interactive Brokers.
DOES SELECTING THE RIGHT FOREX BROKER MATTER?
Understanding Regulation: Before starting your journey into FOREX trading, online FOREX trading, CFDs, or Crypto trading it is critical that you understand the trading regulations in your country. For example, for the US, the brokerage firm needs to be NFA or CFTC regulated. In the UK the brokerage firm needs to be FCA registered and regulated. In addition, you need to do due diligence on its trade execution policies, leverage and margin requirements.
Trading Tools and Platforms: Online FOREX trading depends heavily on various analytical as well as charting-based processes. This means that the trading platform used by your broker must offer various indicators, statistics-based charting, and some advanced tools such as Fibonacci retracement, and various indicators. The broker’s platform needs to be compatible with your PC, or smart phone’s operating system and must offer clear near real-time prices and executions.
The diversity of Markets offered: The CFD market is hugely diverse. It includes options, FOREX currency pairs, future contracts, on a wide range of currency pairs, equity instruments, and commodities. Your broker should offer the range of currency pairs that you want, an option to trade in precious metals, and commodities, and an option to trade across various CFDs seamlessly. For a beginning trader, the educational services offered by the broker are also of paramount importance. An ideal FOREX broker should offer online BLOG, WEBINAR, and chat services for all of your questions that arise during the execution of a trade.
Spreads and commissions: These are important as this will be your expense when it comes to your trades, any profits you make are always after spreads and commissions are taken. Ensure you are getting competitive prices by shopping around first.
Important Notes for beginner forex trader.
FOREX trading or for that matter trading in any CFDs is fraught with perils. A new trader can lose his lifetime savings if he does not follow through specific guidelines of trading. As a result, it is of paramount importance that a beginning trader invests in finding a seasoned trader mentor who can guide him through various complexities of online CFD trading.
Please, join us at PTI to help you guide through your Journey to Financial Freedom and security If you are looking for a Job opportunity of a lifetime where you can earn a secondary income or looking to start a retirement plan, then speak to one of our traders today on a free consultation.
THE PTI PHILOSOPHY:
Remember that Platinum Trading Institute is an entity that teaches you to trade in an Institution way. Our mission is to raise the trading game of an individual, and gradually convert them from retails FOREX traders to professional FOREX/CFD investors. If you want to trade like the professionals do, making consistently profitable returns from your trading, get in touch with us and we will demonstrate live precisely how we approach the markets.
Hopefully, you have enjoyed today’s article. Thanks for reading!
Dr. Jayesh Mehta, MBA.
Have a fantastic day!
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The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgment and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.