AuthorBy Jeffrey CammackAuthor InformationUpdated: December 2, 2020

The best Forex brokers for beginner traders will have four qualities: Regulation from a trusted authority; first-class education, a good demo account and excellent customer support.

Regulation is the most important factor when choosing a Forex broker, whether you are a beginner or not. Regulators protect consumers from illegal and unethical brokers.

Forex Education is essential if you want to be a successful trader. Knowledge of the financial markets, geopolitics, technical analysis, and your trading platform is crucial to profitable trading.

Demo Accounts are the first step in trading for all beginner traders. A demo account will allow you to experience the movements of the live Forex market.

Customer Support is crucial to getting started. Forex trading is complex – having a helpful support team to answer questions and provide guidance can make all the difference.

English

Which Forex brokers are best for beginners?

Last updated on 2 Dec 2020
Updated 2 Dec 2020
by Editorial Director Jeffrey Cammackby Jeffrey Cammack
Jeffrey Cammack
All Brokers Regulated
All Brokers Regulated
by Trusted Authoritiesby Trusted Authorities
Trusted
1
XM
Min. Deposit
USD 5
4.384.38
Demo Account
Yes
Beginner Friendly
Excellent
Support Hours
24/5
Overall Rating
11110.54.38/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.60 pips on trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4 & MT5 platforms supported. XM Group regulated by CySEC, ASIC, and the IFSC.
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XM Group has achieved substantial growth since 2009, earning 1.5 million clients living in 196 countries. Regulated by three major regulators and the recipient of many industry awards, XM Group stands out from a crowded field of market maker brokers for their customer service and educational support.

XM Group has extensive experience and in-depth knowledge of the global financial markets. XM’s operational philosophy is aimed at client satisfaction and low client turnover; they earn client loyalty through award-winning 24/5 personal customer service, varied account types and competitive trading conditions.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
  • Fast and free withdrawals
Cons
  • Dealing desk
Read More About XM
2
FXTM
Min. Deposit
USD 10
4.234.23
Demo Account
Yes
Beginner Friendly
Standard
Support Hours
24/7
Overall Rating
11110.54.23/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.90 pips on trading account with lowest minimum deposit. Max leverage Flexible. Islamic account available. MT4 & MT5 platforms supported. Leverage offered can vary depending on country of residence, and your trading knowledge and experience. FXTM is regulated by CySEC, FCA, FSCA, and the FSC.
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FXTM is regulated by the FCA, CySEC and the FSCA in South Africa and the educational material offered is first-class. By keeping the focus on beginners looking for reasonable trading conditions, the FXTM team of educators and analysts have succeeded in creating a welcoming environment for new traders. Additionally, FXTM are one of the few brokers with 24/7 support, allowing new traders to get set up on weekends or holidays.

For the absolute beginner, FXTM has a great deal of training material to help new traders get started. Materials include articles, videos, webinars and a searchable glossary of new vocabulary. This is an excellent resource and many hours can be spent covering the basics of Forex Trading. There is an additional set of videos that cover analysis topics, and more detail on chart reading techniques.

FXTM has an open “Daily Market Analysis” section on their website where research analysts post bulletins that connect daily news items with analysis and actionable trading ideas. This can be combined with other sources to achieve a more comprehensive view of global events and the trading opportunities they represent.

The Standard Account has a minimum deposit of 100 USD and spreads start at 1.3 pips. FXTM also offers a Cent Account where the minimum deposit if only 10 USD but the spreads will be wider. If you can afford it, I would recommend starting with the Standard Account.

Pros
  • Good for beginners
  • Excellent education
  • Well regulated
  • Low minimum deposit
Cons
  • Expensive withdrawals
Read More About FXTM
3
AvaTrade
Min. Deposit
USD 100
4.184.18
Demo Account
Yes
Beginner Friendly
Standard
Support Hours
24/5
Overall Rating
11110.54.18/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.90 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & MT5 platforms supported. AvaTrade Group regulated by ASIC, FSCA, B.V.I FSC & FSA.
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With over 200,000 active traders around the globe, on both the MetaTrader 4 and AvaGo platforms, and the award for Best Trade Execution 2016 by the African Finance Expo, AvaTrade is a good partner for all types of trader. AvaTrade has built its reputation on being a client-focused, dependable broker, and continues to add to that reputation with the recent addition of AvaProtect to its product lineup.

With great trading conditions across Forex, commodities, cryptocurrencies, ETFs, bonds, and equities and boasting FSCA and ASIC regulation, AvaTrade is competitive with some of the best brokers in the world.

Pros
  • Good for beginners
  • Well regulated
  • Low minimum deposit
Cons
  • Dealing desk
  • Limited education
Read More About AvaTrade
4
HotForex
Min. Deposit
ZAR 70
4.294.29
Demo Account
Yes
Beginner Friendly
Excellent
Support Hours
24/5
Overall Rating
11110.54.29/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.20 pips on trading account with lowest minimum deposit. Max leverage 1000:1. Islamic account available. MT4 & MT5 platforms supported. HF Markets Group regulated by the FSCA, FCA, FSC, CySEC and the DFSA.
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An STP broker regulated by multiple major authorities including the FCA and CySEC, HotForex has built a reputation among traders for its tight spreads, low fees, and fast market execution. Excellent educational and analytical material is available for both visitors and clients, and customer service is world-class.

Listed as one the Top 100 Companies by World Finance Magazine and with an award for Business Excellence 2015 (World Confederation of Businesses), HotForex is not just celebrated by their industry peers, but also by the financial industry as a whole.

Pros
  • Low minimum deposit
  • Tight spreads
  • Well regulated
  • Good range of accounts
Cons
  • Limited base currencies
Read More About HotForex
5
eToro
Min. Deposit
USD 200
3.333.33
Demo Account
Yes
Beginner Friendly
Poor
Support Hours
24/5
Overall Rating
1110.503.33/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.0 pips on trading account with lowest minimum deposit. Max leverage 30:1. Islamic account available. eToro proprietary trading platform support. eToro is regulated by CySEC, FCA, and ASIC. 75% of retail investor accounts lose money when trading CFDs with this provider.
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Founded in 2007, eToro are renowned as founders of the social trading methodology and its platform has won multiple awards for innovation.

The social component, which sits at the centre of the platform, seeks to inspire and encourage traders. eToro also believes that making its community of 6 million traders integral to the platform creates transparency and makes the overall experience more enjoyable. As cryptocurrencies have become more popular, eToro has introduced a wide variety of cryptocurrency CFDs to traders.

eToro has succeeded in making trading more accessible to the beginner trader, but only by completely upending the traditional broker space.

Pros
  • Well regulated
  • Good for beginners
  • Innovative trading tools
Cons
  • Limited education
  • Wide spreads
Read More About eToro
6
IC Markets
Min. Deposit
USD 200
4.264.26
Demo Account
Yes
Beginner Friendly
Standard
Support Hours
24/7
Overall Rating
11110.54.26/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0 pips with 7 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & cTrader platforms supported. IC Markets is regulated by CySEC and ASIC.
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A hugely respected ECN broker, IC Markets has invested heavily to provide traders with the lowest spreads and fastest execution speeds possible – and has seen huge success as a result. ASIC and CySEC regulated and with support for MT4, MT5 and cTrader, this broker is serious about providing the best possible trading environment for its client base. 

Headquartered in downtown Sydney, IC Markets represents the best of the Australian Forex industry; beginner traders will welcome IC Markets’ simple account structure and responsive and informed customer service; the company understands customer retention involves a combination of tight spreads, cutting edge technology, fast trade execution and specialised support. 

Pros
  • Well regulated
  • Tight spreads
  • Wide range of assets
  • Great platform choice
Cons
  • High minimum deposit
  • Limited market analysis
Read More About IC Markets
7
FXCM
Min. Deposit
USD 50
4.134.13
Demo Account
Yes
Beginner Friendly
Standard
Support Hours
24/5
Overall Rating
11110.54.13/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1.3 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & Ninja Trader platforms supported. Forex Capital Markets is regulated by FCA, ASIC, and the FSCA.
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FXCM has been a global Forex and CFD broker since 1999 and are regulated by the FCA, ASIC, and the FSCA in South Africa.

One of the major advantages of FXCM for beginner traders is the quality of the educational material they offer. FXCM offers eBooks on Forex basics, trading strategies, trading habits, the FXCM’s proprietary Trading Station platform, and how to identify potential trading opportunities on the market. FXCM’s extensive video library is organised into different categories that span from how to make deposits, to more advanced trading topics like order types that help traders manage risk in trades.

Like most of their competitors, FXCM ZA uses webinars to teach Forex trading – these are exclusive webinars for South Africans and hosted by Russell Shor, the Senior Analyst for FXCM’s South African team. Having a dedicated education section for South Africans is extremely rare and is one of the greatest advantages to using FXCM ZA. Moreover, FXCM ZA runs free workshops in Pretoria and Johannesburg on a monthly basis.

FXCM has a standard demo account and a single live account offering. The demo account has 5000 USD virtual money and expires after 30 days of inactivity. The standard account is commission free with a minimum deposit of 50 USD

Pros
  • Well regulated
  • Great platform choice
  • Excellent education
  • Innovative trading tools
Cons
  • Limited demo account
Read More About FXCM
8
Admiral Markets
Min. Deposit
USD 100
4.184.18
Demo Account
Yes
Beginner Friendly
Excellent
Support Hours
Business Hours
Overall Rating
11110.54.18/ 5
AlertAccepts South African Clients. Average spread EUR/USD 0.10 pips with 6 USD commission round turn on the trading account with lowest minimum deposit. Max leverage 500:1. Islamic account available. MT4, MT5 & MT4 Supreme Edition platforms supported. Admiral Markets is regulated by ASIC, CySEC, and the FCA.
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Founded in 2001, Admiral Markets is renowned for its excellent education, industry leadership and wide range of tradeable instruments. Its industry leadership extends to platform support, where it has teamed up with MetaTrader to create Supreme Editions for MT4 and MT5, adding a range of practical tools to enhance the base platforms. 

All Admiral Markets accounts feature market execution, low minimum deposits and competitive spreads – and the company has one of the best cryptocurrency offerings on the market, with 30+ crypto pairs and cross pairs to trade; in addition, Admiral Markets have not just one, but two complete Forex courses for beginners.

A global presence, a progressive approach to knowledge sharing and competitive trading conditions have attracted both beginner and experienced traders to the Admiral Markets brand.

Pros
  • Well regulated
  • Excellent education
  • Wide range of assets
Cons
  • Expensive withdrawals
Read More About Admiral Markets
9
easyMarkets
Min. Deposit
USD 25
4.244.24
Demo Account
Yes
Beginner Friendly
Standard
Support Hours
24/5
Overall Rating
11110.54.24/ 5
AlertAccepts South African Clients. Average spread EUR/USD 1 pips on trading account with lowest minimum deposit. Max leverage 400:1. Islamic account available. MT4 & the proprietary easyMarkets platform are supported. easyMarkets is regulated by CySEC, ASIC, and the FSA in Seychelles.
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Founded in 2001, easyMarkets (then easyForex) was one of the first online brokers. Regulated by ASIC since 2003, CySEC since 2007 and the FSA since 2020, easyMarkets states their values as simple, honest and transparent which are reflected in their industry recognition – recently being awarded the Best Trading Platform and Most Transparent Broker awards in 2017 from FX Empire and Forex-Awards, respectively.

easyMarkets has always innovated, introducing tools like negative balance protection and guaranteed stop loss back in 2001 – these tools are now industry standards. Their innovation has continued with the unique Freeze Rate and dealCancellation tools, both intended to support new traders and keep trading transparent and simple. In 2018, easyMarkets won the Most Innovative Broker 2018 at the World Finance Markets Awards, a further sign that they are respected as innovators among their peers.

Pros
  • Well regulated
  • Wide range of assets
  • Innovative trading tools
Cons
  • Limited platform choice
  • Limited account options
Read More About easyMarkets

What is Forex Trading?

Forex trading is exchanging one currency for another currency to profit from the change in the exchange rate. This is known as buying and selling currency pairs. The Forex market is the largest financial market in the world, with an average daily value of 6.6 trillion US dollars (USD).

Forex trading is buying and selling currency pairs to make a profit

Online Forex trading can only be done via a Forex broker. This is because the Forex market is not a physical market, it is a virtual market made up of a network of computers all over the world. This network connects traders to other market participants, such as banks and other brokers.

The Forex market is a virtual market, not a physical market

Because the Forex market is global and virtual, it operates 24 hours a day, 5 days a week. From the moment the Australian market opens on Monday morning until the moment the New York market closes on Friday evening.

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 70-90% of retail investors lose money trading these products. Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss.

What is a Forex Broker?

Forex brokers are companies which provide a connection to the Forex market. Brokers also provide the software – called a trading platform – which connects the trader to the virtual network of computers that forms the Forex market. 

Brokers provide a connection to the Forex market and a trading platform

To connect to the Forex market with a broker, traders need to open a trading account, which requires funding.

How much money do you need to trade Forex?

Most brokers require a minimum deposit to start trading. This varies from as low as 5 USD to as high as 2000 USD, depending on the broker and the account type you are opening.

In South Africa, some brokers will offer ZAR Accounts, which means that you can keep your trading balance in Rand. For ZAR Accounts, minimum deposits start as low as R70 and can rise to R1500 or R3000.

With 200 USD you can make small profits without too much risk

We recommend that you open an account with at least 200 USD, as this will give allow you to make small profits without too much risk.

Can you get rich by trading Forex?

It is possible, but it will not happen overnight. Forex trading is not a get-rich-quick scheme. Most successful Forex traders have developed a strategy that allows them a steady stream of income.

Forex trading is not a get-rich-quick scheme

While huge profits are possible, so are huge losses. And if you chase huge profits be prepared to lose to all your money.

How do I start trading Forex?

Before you start trading Forex, you will need to learn how the Forex market works and gain experience without risking any money.

Beginners need education and experience before they start trading

To learn how the Forex market works you will need to educate yourself. Forex education can be found from many different sources:

  • Right Here at TradeForexSA: We have a huge library of educational articles covering everything from how to place to your first trade, to a detailed breakdown of the MetaTrader 4 trading platform, and the more complex topics like advanced technical analysis.
  • Forex Brokers: All good Forex brokers have education sections. Excellent Forex education includes a structured course for beginners, a mix of video and text content, and an archive of webinars for complex topics.
  • Other Resources: There are a huge number of online resources available for Forex traders. Communities of experienced traders are always uploading video tutorials and there are a great number of books written about every aspect of trading.

To gain trading experience without risking any money you will need to open a demo account with a Forex broker. Demo accounts are an exact mirror of the actual Forex market – except all the money is virtual. Demo accounts are provided by Forex brokers, usually in the hope that you will then open a real account with them.

You should find a demo account that you can use for as long as you want

The best demo accounts are unlimited. This means you can use them for as long as you want. Some brokers will limit their demo accounts to 6 weeks, or even as short as 2 weeks. This is not enough time to gain the necessary experience.

It is very important to use a demo account until you are comfortable with the Forex market and your trading platform. If you start trading on the real market without the necessary experience you will lose money.

Trading Forex without experience or education will result in heavy losses

Once you feel that you are educated enough to understand the Forex market and are comfortable with your demo account, then you can open a real account with a Forex broker and start trading!

How do I choose a Forex broker?

When choosing a Forex broker, beginners should focus on a broker’s regulation, educational support, customer support and demo account. To better understand why these are so important we will look at all three in detail below.

After reading through this short guide you will:

  • Understand why regulation is crucial and how to check if your broker is regulated.
  • Understand the dangers of trading without education and how to educate yourself appropriately.
  • Understand how high-quality customer support can improve life for beginner traders.
  • Understand the importance of a demo account and how to choose the best one.

Regulation Means Protection

Regulation is the single most important aspect of judging a Forex broker for all traders, not just beginner traders. Unregulated brokers cannot be trusted with your money and have no legal requirement to offer a fair trading environment.

Simply put, having a regulated broker is not optional.

Regulation ensures that Forex brokers provide a fair and transparent trading environment. It ensures the security of your funds and offers protection against broker bankruptcy. It also ensures that Forex traders have a complaint channel and access to investor insurance.

Unregulated brokers will often claim to be regulated, so you should always check what they say is true. We know that unregulated brokers like to contact people on Facebook and via messaging apps, so be especially careful if this happens. Many unregulated brokers will often to entice beginner traders with incredible profits, offering to double or triple their money within weeks. This is a sure-fire way to know that a broker should not be trusted.

Do not trust brokers who offer incredible profits

Checking a broker’s regulatory status is a simple process for all the major regulators and only takes a couple of minutes (and could save you a lot of money and heartache!)

A closer examination of the main regulators in the world is required, we are also going to discuss how to check if a broker is regulated. Some of the main regulators in the world are:

South African Financial Services Conduct Authority (FSCA)

The South African FSCA is well-regarded but is not considered one of the best international regulators. Many South African traders like to work with FSCA regulated brokers as this provides local protection and requires the broker to have a local office and local bank accounts.

Checking if a broker is regulated by the FSCA is easy. The FSCA offers a search tool for all authorised Financial Service Providers (FSPs) here: https://www.fsca.co.za/Fais/Search_FSP.htm.

This is what the search window looks like:

FSCA Search

The best way to use this search function is to input the brokers FSP number, which they are legally required to display at on their website.

For instance, here is Khwezi Trade’s FSP notice and number at the bottom of its webpage:

KhweziTrade FSP

You will notice that Khwezi Trade is not the name of the Financial Services Provider regulated by the FSCA, but is actually Khwezi Financial Services. This is quite common as brokers are often part of a larger financial company. It does mean that searching by broker name using the FSCA’s search tool can be quite tricky, so use the FSP number if you can.

Using this information from Khwezi Trade’s website we can then search the FSCA database. Here we can see that Khwezi Financial Services is indeed an authorised FSP:

KhweziTrade FSP Entry

We can also see that Khwezi Financial Services is approved to offer derivative instruments. This is important as all Forex CFD trading is derivative trading.

Khwezi Products Approved

Australian Securities and Investment Commission (ASIC)

The Australian financial regulator has an excellent global reputation and is continually active in combatting broker fraud and manipulation. Many of the most respected Forex brokers in the world are Australian, and ASIC is an important part of their reputation for trustworthiness.

Checking a broker’s regulatory status with ASIC is a very similar process to the South African FSCA’s, the ASIC search tool can be found here: https://connectonline.asic.gov.au/.

Unfortunately, detailed information on each company in the ASIC database is only available via purchase. See below for Pepperstone’s ASIC entry:

Pepperstone ASIC Entry

Like the FSCA, all ASIC regulated brokers are required to publish their ASIC licence on their homepage. We have had a few reports of unregulated brokers claiming to be based in Australia and using the names of regulated financial companies, so it is always best to check thoroughly.

UK Financial Conduct Authority (FCA)

The UK’s Financial Conduct Authority is seen as the best financial regulator in the world. It’s no surprise that their search function is the easiest to use and the most thorough, you can access it here: https://register.fca.org.uk/s/.

Like other major regulators, all brokers with an FCA licence are required to publish their FCA reference number on their website, here is AxiTrader’s FCA number at the bottom of their website:

AxiTrader FCA Number

Like Khwezi Trade in South Africa, AxiTrader is the trading name of a larger financial group, in this case, the FCA licence holder is AxiCorp Limited. Using the FCA reference number, we can search the FCA’s database of registered companies and find AxiCorp Limited’s entry:

AxiTrader FCA Entry

Notice that the FCA also warns of unregulated brokers that are attempting to use AxiCorp’s identity to scam unwary traders.

Cyprus Securities and Exchange Commission (CySEC)

CySEC is the foremost regulator in the EU and Cyprus has a long history of regulating online Forex brokers. As a European regulator, all brokers with a CySEC licence must abide by the EU’s MiFID II legislation. Among other things, this requires limits on leverage and the removal of trading bonuses.

CySEC’s broker search tool functions much like the FCA’s and all CySEC licenced brokers are required to publish their licence number on their website. CySEC’s database and search tool can be found here: https://www.cysec.gov.cy/en-GB/entities/investment-firms/cypriot/

Below, we can see the entry for AFX Capital Markets, which went bankrupt last year and is suspected of several wrongdoings, including using client money to cover operational costs.

AFX Capital Markets CySEC Entry

CySEC makes it clear that AFX Capital Market’s licence has been suspended. A clear sign not to trust a broker.

Other Regulators

There are many other small regulators around the world, and Forex brokers will hold licences with them to avoid the restrictions placed on them by ASIC, CySEC and the FCA.

Commonly seen small regulators include the Seychelles FSA, the Mauritius FSC, St Vincent and Grenadines FSA, the Belize IFSC and the Bahamas SCB. While being regulated by one of these smaller regulators does not mean that a broker is bad, it does mean that traders are not as well protected.

The best and most trustworthy brokers are regulated by at least one of the three major regulators (FCA, CySEC, ASIC) or the FSCA. It is common for brokers to have multiple regulators, one for each region in which they operate.

Education is the Root of Success

The best Forex brokers for beginners have realised that Forex education is at the very heart of customer retention. Educated Forex traders become successful – and profitable – traders, and the more successful traders a broker has on its books, the more successful the broker will be.

Educated Forex traders are profitable Forex traders

Forex education comes in two forms: Standard educational material, such as that found in our education section, which explains the concepts and function of Forex trading, and market analysis and research.

Market analysis is usually provided by Forex brokers themselves or specialist third-party companies. Market analysis and research are only helpful once a trader has a firm grasp on the basics of Forex trading, including terminology and common themes.

Education and Structured Courses

The best Forex brokers for beginners have realised the importance of building structured Forex trading courses.

A good example of a structured Forex course for beginners is the video series at XM. The videos are organised in an intuitive format, and are specifically designed to introduce you slowly to more advanced concepts:

XM Education

Good brokers will have structured courses for different levels of experience and expertise. The best Forex brokers for beginners have structured courses that cover the following:

  • Forex Terminology: What are the terms traders will encounter when trading? What does it mean to go long or go short? What are support and resistance levels?
  • Basic Topics: Which currencies are traded and what are their symbols? What are the important concepts like lots, pips, and order types (such as stop loss and take profit)?
  • Advanced Topics: What is technical, fundamental and sentiment analysis? What are indicators and robots and how do they work. What are common trading strategies and how do you implement them?

Many brokers will also run webinars, which are live and often interactive tutorial sessions. Many of the best Forex brokers for beginners offer weekly webinars and store them in an archive for later viewing. As a leading broker in terms of educational support, FXCM is a good example. In the image below we can see that FXCM has a large archive of previous webinars:

FXCM Webinars

This is exceptional from a beginner’s standpoint, as these rich learning experiences are all available free-of-charge and without registration.

Market Analysis and Research

Market analysis and research is the other cornerstone of Forex education. For traders with a solid understanding of how Forex trading works, market analysis will be the next step to profitable trading.

Most of the best brokers for beginners will have large research teams which provide frequent updates on market movements and insightful analysis on potential developments. A good example of this is easyMarkets’ market news section:

EasyMarkets Market News

Updated every few minutes, easyMarkets’ market news offers deep insight into the price movement of a wide range of assets. Analysts also offer their thoughts on possible future outcomes based on their research. This is ideal for new traders seeking to build a deeper understanding of the Forex market and new trading opportunities.

Some Forex brokers, such as Admiral Markets, enter into partnerships with specialist third-party companies like Trading Central, to provide traders with market analysis. Trading Central is a collection of products that offer actionable investment ideas with 24-hour multi-asset coverage, technical and fundamental analysis, and back-tested trading strategies.

Admiral Markets Trading Central

Demo Accounts for Trading Practice

Forex brokers also provide demo accounts. These are trading accounts that mirror the live Forex market but allow traders to use virtual funds to simulate the trades and strategies they would ordinarily use when trading with real money.

Demo accounts provide an exact simulation of real market conditions

Demo accounts serve several purposes. Apart from accurately simulating live trading conditions, they can also be used to test-drive a Forex broker and test new strategies. The best Forex brokers for beginners provide free and unlimited Forex demo accounts.

IG Markets, one of our highest ranked brokers, provides unlimited demo accounts on two different platforms with 20,000 USD of virtual funds.

IG Markets DEMO

Demo accounts are so important because they are the only way for beginners Forex traders gain experience without risking money.

Customer Support

It is essential that beginners get good customer support from their broker. It is one of those things that you hope you never need; but when you do need it, it must be easily available, fast, and genuinely helpful. When your money is on the line, you need your problem fixed as soon as possible.

The best Forex customer support will be available 24 hours a day (Monday-Friday) via live chat, telephone, messaging services and email. It is also important that a broker has great IT support, as setting up a trading platform can be tricky for new traders. Many new traders cannot find the time during the workweek to get set up, so weekend support can be helpful but is rare.

Setting up a trading platform can be tricky for beginner traders

Customer support should also be multi-lingual. Apart from English, many South African brokers now offer customer support in Afrikaans, Zulu, and Xhosa. It is important to have a customer support agent who speaks your language and understands the local needs of your region.

The needs of a beginner in South Africa are not the same as the needs of a beginner Forex trader in Russia. The best beginner Forex brokers understand this and set up their customer support desks to accommodate the needs of their clients.

The Bottom Line

As well as providing market access, Forex brokers also play a crucial role in the learning process for beginner traders. Beginner Forex traders should use the parameters above to decide whether the broker they are considering is truly the best Forex broker for them or not.

Such a broker should be regulated, provide sound Forex education, a free and unlimited demo account, and excellent customer support.

Read this article for more details on how you can compare Forex brokers on a set of other metrics.

Forex Risk Disclaimer

Trading Forex and CFDs is not suitable for all investors as it carries a high degree of risk to your capital: 75-90% of retail investors lose money trading these products. 

Forex and CFD transactions involve high risk due to the following factors: Over-leveraging, unpredictable market volatility, slippage arising from a lack of liquidity, inadequate trading knowledge or experience, and a lack of regulatory protection for clients.

Traders should not deposit any money that is not disposable. Regardless of how much research you have done, or how confident you are in your trade, there is always a substantial risk of loss. (Learn more from the FCA or from ASIC)

Our Methodology

Our State of the Market Report and Broker Directory are the result of extensive research on over 100 Forex brokers. The explicit goal of these resources is to help traders find the best Forex brokers – and steer them away from the worst ones – with the benefit of accurate and up-to-date information.

With over 150 data points on each broker and over 3000 hours of research and review writing, we believe we have succeeded in our goal. 

In a world where trading conditions and customer support can vary based on where you live, our broker reviews focus on the local trader and give you information about these brokers from your perspective.

All research has been conducted by our in-house team of researchers and writers, gathering information from various company representatives, websites and by sifting through the fine print. Learn more about how we rank brokers

References

  1. Foreign exchange turnover in April 2019
 

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Trading Forex and CFDs is not suitable for all investors and comes with a high risk of losing money rapidly due to leverage. 75-90% of retail investors lose money trading these products. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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