There are three main benefits offered by Forex brokers. These include having a license to offer the services, a variety of trading tools, and access to high-quality market research.
What is Forex trading? The description of Forex trading is quite simple – it is the exchange of one currency to another. Although it is described very simply, the process is what makes it extra complicated. The Forex market is being run by huge hedge funds, national banks, and other financial institutions. Lastly, there are retail traders who are trying their luck in the market. The average transaction per day in the market can reach $6 trillion.
What is the role of Forex brokers in the Forex market?
If you want to join the market as a retail trader, you need a Forex broker or a currency trading broker to help you place your orders. They will provide you with a trading platform like MetaTrader 4 which will be your starting point as a Forex trader. Trading Forex allows you to buy or sell currency pairs like EUR/USD. You will be required to open an account, then deposit the funds which will be needed to start trading and use the trading platform provided by the broker to buy and sell currencies. The market is open round the clock, five days a week.
7 Best Forex Brokers For Beginner Traders
Plus 500 – it is a highly trusted global brand that is tagged as the overall winner for ease of access, perfect for beginners. This broker offers a good selection of CFD trading instruments. However, some industry leaders find Plus500 to be lacking with more advanced trading tools and market research tools that are needed by those who are actively trading in the market.
IG – this broker is known as the most trusted and provides excellent education because of its competitive pricing and a huge list of products that can be traded. Because of the excellent performance of IG, it has become the best broker in 2021.
eToro – if you are into social copy trading and trading cryptocurrency, then you should go to the industry’s best – eToro. This broker also offers a very user-friendly trading platform as well as a mobile application where you can trade on the go.
AvaTrade – traders who want to have a good source of educational materials for trading can go for AvaTrade. It is also known to be the best in the world when it comes to providing the best selection of trading platform options.
CMC – education is very important for traders, especially new traders. In this case, CMC offers a good source of educational materials such as video updates, written articles, live webinars, and even podcasts. CMC is also fully packed with different features and trading tools.
XTB – when it comes to being the best customer service, XTB tops the list. They offer outstanding customer service and great education too.
OANDA – good quality research and a very user-friendly platform – that is the strength of OANDA. It has a good reputation for providing quality market research and a good trading platform like MetaTrader 4 too.