The Top 8 Forex Brokers for Beginners

The Top 8 Forex Brokers for Beginners

The Top 8 Forex Brokers for Beginners

Is Forex Good For Beginners?

Foreign exchange trading, or forex trading, involves the buying and selling of currency pairs to make a profit.

Since the pandemic, forex trading has increased by 300%, indicating how popular this type of investment is.

There are many benefits of forex trading, including it being part of a large and global market and being an accessible security for beginner traders.

However, as trading can be complex and comes with risk, it is essential to choose the right broker for you.

As a beginner, there are several things to consider before committing to a broker. As you become more experienced, these factors will change, leading to a possible change in broker.

When making your decision, look for tools and features that suit your trading level.

Committing to a platform with the best research tools but little education or support will not help you become a good trader.

The data trading platforms generate can be overwhelming and challenging to understand at first.

Start with the simple tools, and build your way up.

Key Considerations When Choosing a Broker as a Beginner

When deciding what broker to commit to, there are several factors you need to consider.

Is It Regulated?

There are three regulatory tiers: tier-3 has low trust, tier-2 is medium, and tier-1 is complete trust.

When choosing a broker, you want it to be regulated by tier-1 jurisdictions, preferably in your country of residency.

Any broker that does not have a tier-1 regulator should be treated with caution.

You should also check if they are listed on any stock exchanges or indices and what year they were established.

Those companies that have survived a recession are assumed more reliable. Those listed on stock exchanges are more transparent with their finances.

What Are the Costs?

Always read the fine print for hidden and additional fees.

The best brokers are transparent in their trading fees and provide a full breakdown before making a trade.

You should also be aware of:

  • Minimum deposits
  • Account opening fees
  • Withdrawal fees
  • Transfer fees

Costs can also vary between countries, so ensure you are checking for your region.

What Educational Materials Does It Offer?

As a beginner, you will need as much help as possible.

Every forex broker has an education section explaining the basics of trading and how to use the platform.

Some brokers understand the value of educational materials and offer a wide variety from:

  • Webinars
  • Guides
  • Quizzes
  • Videos
  • Courses

While spending more time learning may not sound appealing, it is the best route to becoming a successful trader.

Does It Provide a Demo Account or Social Copy Trading?

In demo accounts, the broker gives you a fake amount of money to make trades and investments.

You work with real-time data and make trades and investments as you would if the money were real.

However, as the money is not real, you can make as many mistakes as you want without any consequences.

You can also test different strategies, tools, and resources to see which ones work for you.

This ensures that when you start live trading you have a winning formula and less chance of losing your money or making rookie mistakes.

Social copy trading allows you to see another trader's portfolio. Some brokers give you the option to copy their trades.

Others are more social in that you discuss the choices someone made for a better understanding.

Does It Have Good Customer Service?

No matter the industry, good customer service is always a beneficial thing to have.

When working with technology, especially complex trading platforms, there may be issues that you need to resolve and quickly.

Before committing to a broker, research the communication methods and how effective they are.

Factors to consider are:

  • Customer service working hours
  • Location of the customer service department compared to you
  • How quickly they respond

Some forex brokers have multiple communication routes, but they are not always effective.

Check reviews to see if the live chat is mostly online or offline, if you can access a real person, and what the average response time is.

Are the Trading Platforms Easy To Use?

Trading platforms are complex. They involve a lot of data, third-party integrations, calculations, charts, graphs, and real-time updates, to name but a few.

When starting, you want a platform that is:

  • Easy to use
  • Customizable
  • Modern and clean interface
  • Clear sections

You may also want to consider how you will spend most of your time trading.

If you are constantly on the go, do you need a mobile trading app, or would you prefer the detail available on web-based or desktop platforms?

Does It Allow For Greater Profit Margins?

Some trading platforms offer better rates to those who trade with larger amounts of money and bigger trade volumes.

As a beginner, you want to avoid these.

Look for brokers with low forex fees and little or no commissions so you can make a profit as soon as you start trading.

Does It Have Flexible Withdrawal Options?

As a beginner forex trader, you may only have a small budget to work with, and you may want to withdraw any profit you make.

Check what the withdrawal options are, how often you can make a withdrawal, and any associated fees.

Some brokers allow one free withdrawal per month and charge a flat fee for any additional withdrawals.

8 Best Forex Traders for Beginners

This list is not a comprehensive guide; it is designed to give you a starting point to know what features to look for and how they compare and differ.

There are many forex brokers, all with different products, services, strengths, and weaknesses.

The eight mentioned below are currently the most popular brokers. They have all won various awards and are known for their reliability.

Top Eight Forex Brokers for Beginners
Top Eight Forex Brokers for Beginners

1. eToro

Regulated: Two tier-1 regulators – UK, Australia
Minimum deposit: $200
Costs and fees: Low forex fees, $10 per month inactivity fee, $5 withdrawal fee, additional fees may occur for some trades
Educational resources: Basic education videos, integrated educational content, YouTube channel
Demo account: Yes
Social copy trading: Yes
Customer service: Live chat, web-based ticketing with email replies

eToro is one of the most popular forex brokers in 2021.

For beginners, there is very little educational material to guide you, however.

Where eToro does excel for beginner traders is their social trading, which allows you to copy another trader's portfolio.

The trading platforms are also user-friendly.

For more on eToro, read our guide.

Visit eToro

2. Plus500

Regulated: Three tier-1 – UK, Singapore, Australia
Minimum deposit: $100
Costs and fees: Free withdrawals, $10 per quarter inactivity fee, no forex commission, average forex spreads
Educational resources: Basic videos and articles, pdf
Demo account: Yes
Social copy trading: No
Customer service: 24/7 support through email and live chat

Plus500 was founded in 2008 on the London Stock Exchange; therefore, while it is regulated, it has yet to survive a recession.

The educational resources are not as good as other forex brokers, and the platforms lack when it comes to research and analysis.

It is user-friendly and easy to set up an account, however.

Visit Plus500

3. XTB

Regulated: One tier-1 regulator – UK
Minimum deposit: $0
Costs and fees: Overnight financing costs, spread costs, inactivity fees, no withdrawal fees over $100, low forex fees
Educational resources: Texts, quizzes, videos
Demo account: Yes
Social copy trading: No
Customer service: Multi-language, live chat, phone, not available 24/7

XTB was founded in Poland in 2002. Only one top-tier regulator regulates it, so it isn't as reliable as other brokers.

There are limited withdrawal options and fees for withdrawals under $100.

XTB uses its own trading platform as well as MetaTrader. They are user-friendly with modern interfaces and clear search functions.

Review sites claim that XTB is the best for beginner forex traders and ease of use.

Visit XTB

4. AvaTrade

Regulated: Three tier-1 – Canada, Australia and Japan
Minimum deposit: $100
Costs and fees: No withdrawal fees, average forex fees, $50 per quarter inactivity fee
Educational resources: Trading platform tutorial, webinars, videos, articles
Demo account: Yes
Social copy trading: Yes
Customer service: 24/5 phone, email, live chat

AvaTrade is good for beginners as it offers social trading and a demo account.

Fees are low, and the trading platforms are interactive and user-friendly.

There are informative and extensive educational materials and an excellent live chat function.

Visit AvaTrade


Regulated: Four tier-1 regulators – US, UK, Japan, Canada
Minimum deposit: $100
Costs and fees: Low forex fees, no withdrawal fees, $15 monthly inactivity fee
Educational resources: Trading glossary, quizzes, videos, articles
Demo account: Yes
Social copy trading: No
Customer service: Sunday to Friday 24 hour support, live chat, telephone, email is one of the best for educational materials.

It was created in 2001 and is part of the StoneX Group Inc, which is listed on the NASDAQ Index.

Their forex fees are lower than their peers, and they have multiple withdrawal options, including electronic wallets.

As the name suggests, is designed for forex traders from beginners to advanced.


6. IG

Regulated: Six tier-1 – Australia, Japan, Singapore, Switzerland, UK, US
Minimum deposit: $250 for US accounts
Costs and fees: No withdrawal fees, $12 inactivity fee, spread cost, overnight financing costs
Educational resources:DailyFX which features over 20 articles, IG Academy with eight courses, webinars, YouTube channel, live videos
Demo account: Yes
Social trading: Not fully integrated, but elements of social trading are available
Customer service: Email, live chat, phone

IG was founded in 1974 in London and is considered one the most trusted forex brokers.

For beginners, IG offers industry-leading educational material and easy-to-use platforms.

Presently, it does not have a desktop trading platform.

The web and mobile app platforms are secure and come with a host of resources and tools, however.

The downside of IG is that:

  • Live chat function is often offline
  • Forex fees are higher than most of the competitors
  • US clients are not insured in case IG goes bankrupt

Visit IG

7. London Capital Group (LCG)

Regulated: One tier-1 regulator – UK
Minimum deposit: $0
Costs and fees: Spread costs, £15 per month inactivity fee, additional charge for guaranteed stops, premium added to either side of the bid/ask price for shares, overnight financing costs, no withdrawal fees
Educational resources: Glossary, videos, how-to guides, weekly market analysis webinars
Demo account: Yes
Social copy trading: No
Customer service: 24/5 telephone, live chat and email

Established in 1996, this UK-based forex broker has competitive fees and functional platforms, making it well-suited to beginner traders.

While only regulated by one top-tier regulator, LCG has survived a recession, proving its reliability.

It is also a popular broker for day traders and European-based traders.

LCG is not currently available to US residents.

Visit London Capital Group (LCG)

8. Oanda

Regulated: Six tier-1 regulators – Australia, Canada, Japan, Singapore, UK, US
Minimum deposit: $0
Costs and fees: Low forex fees, $13 per month inactivity fee, free withdrawals
Educational resources: Videos, tutorials, webinars, texts
Demo account: Yes
Social copy trading: No
Customer service: Live chat, chatbot, phone, email

Oanda is considered to be one of the top forex brokers in the US. It was founded in 1997 but is still a private company and therefore not listed on any stock exchange.

This forex broker has several deposit and withdrawal options, most of which are free. However, you may incur a fee depending on your country of residency and transfer type.

For example, in the US, there is a $25 bank transfer fee, regardless of the amount you are transferring.

The trading platforms are easy to use, especially for beginners.

Their selling point is their automated trading algorithm, API. This tool allows the platform to automatically trade for you based on the preferences you set.

Visit Oanda

Final Thoughts

Forex trading is exciting but can come with a high risk. A good broker can help you navigate choppy markets and execute your investment strategy.

Before making your final decision, trial every demo account so you can get a feel for all the platforms.

When you find a platform you like using, check that it has all the features you need right now.

Do not settle for the broker that your friend uses or that you have seen advertised.

eToro is widely promoted and therefore attracts more clients. It has a reputation as a good broker with excellent social trading. But it lacks support material and requires a $200 deposit.

On the other hand, AvaTrade is less popular but also offers social trading, has a lower minimum deposit and more educational materials.

WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.

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