Forex Trading is booming in the past few years when you check the recent trend of forex trading, new platforms like IQ Option, OlympTrade, and Binomo has entered the markets and conquered the Indian Markets.
But these platforms focus more on Binary Options and Digital Options and these platforms don’t provide the real forex trading conditions.
Forex Trading is not like stock trading you only need a verified trading account and a Skrill account to get started in trading.
Best Forex Brokers For Beginners
Octa FX – Indian Deposit Options & Support
Octa FX is a widely popular broker in Indonesia, Malaysia, and Southeast Asian. It has traders registered from all around the world.
Octa FX is introduced in 2011, registered in St. Vincent and Grenadines and regulated by Cysec.
Starting with a minimum deposit of $20 on the MetaTrader 4 Platform. They also offer MetaTrader 5 and cTrader platforms but as a beginner, I recommend you start with MetaTrader 4 Platform.
Since the beginning, Octa FX has gained a reputation in the market and had been awarded many awards across all services they provide.
They provide different types of trading accounts for beginners and professionals.
- Micro Account (MT4) also available in fixed spreads.
- Pro Account (MT5)
- ECN Account (cTrader) lowest spread account.
Octa FX provides 28 currency pairs, 4 metals, 2 energies, 10 indices & 3 cryptocurrencies these may vary depending on the type of account and maximum leverage of 1:500 on all trading accounts.
Octa FX guarantees the spreads starting as low as 0.02 pips on MT5 Pro with no slippage and no re-quotes. These spreads change varying the account types Micro account spreads start with 0.04 and fixed spreads at 2 pips and 0 spreads with ECN Brokers.
This Broker allows Hedging, Scalping and Expert Advisors.
Offer a wide range of Deposit and withdrawal options including Credit/Debit Card, Skrill, Neteller, Bitcoin, and Local Bank deposits. In some countries like India where local wallets like PayTM are available.
As mostly every forex trader chooses MT4 for trading besides MT4 you can even trade on web trader and Octa FX has a dedicated mobile app available in Android and iOS systems.
This is a unique feature to someone who wanted to invest in forex markets without any trading knowledge in Octa FX where you can invest your money and copy other traders. All you have to do is select the best performing trader from the list and select how much you want to invest.
IC Markets – Best ECN Broker
IC Markets is an Australian based broker established in 2007 and become a top tier broker with clients based from Australia, New Zealand, India, Brazil & other countries.
IC Markets is the world’s largest forex provider in the world by volume. Regulated by the Australian Securities and Investments Commission (ASIC) and The Seychelles Financial Services Authority (FSA).
The has partnered with major banks and liquidity providers to give the best possible low spreads which benefit day traders and scalpers for all market conditions.
3 types of accounts are offered by the broker
- Raw Spread cTrader Account
- Raw Spread MetaTrader 4 Account – Best for beginners
- Standard MetaTrader Account.
You can trade on MetaTrader 4, MetaTrader 5, MT WebTrader, iPhone/iPad, MAC and Android platforms.
cTrader platform available for professional traders with ultra lowest spreads and lighting fast order execution speeds.
IC Markets Equinix NY4 data center servers are located in Newyork & London. Which is an ecosystem for many financial firms and trading brokers to provide the best possible spreads.
If you are looking for a large no. of trading instruments IC Markets provide 60 currency pairs, 19 commodities, 17 indices, 120+ stocks & ETFs from ASX, Nasdaq & NYSE and 10 Cryptocurrency CFDs. This is the only broker that provides more than 200+ instruments cumulatively.
When it comes to spreads, leverage & commission. Their spreads starting from 0 pips and maximum leverage of 1:500 and only $3.5 on 1 standard lot size.
Wide range of instant deposit and withdrawal options including Credit/Debit Cards, Wire Transfer, Skrill, Neteller, Local Bank Transfers & Paypal as one of the payment options which is only available with IC Markets.
Vantage FX is an multi award winning Forex Broker Regulated by ASIC and IIROC registered across Australia, UK & Cayman Islands.
They are first registered in 2009 and providing trading services all around the world and gained a quick reputation in Canada and Australia.
It also boasts that their major liquidity providers are top tier banks including JP Morgan, BNP Paribas, UBS, Goldman Sachs, CitiBank, and 30 other major liquidity providers.
They provide 3 different account types
- Standard STP best for beginners
- RAW ECN perfect fit for scalpers and a big account traders
- PRO ECN is for professional traders with a minimum deposit of $20,000.
All these account types are available for trading in MetaTrader 4, MetaTrader 5, MT Mobile, MT WebTrader.
The minimum deposit for Standard STP is $200 and RAW ECN is $500. All clients can access 40 currency pairs, 13 indices, and 20 commodities.
All the trading accounts come with a maximum leverage of 1:500 and a minimum lot size of 0.01.
When coming to the spreads Standard STP account has the lowest spreads starting from 1.5 pips and RAW ECN and PRO ECN spreads starting from 0 pips.
RAW ECN has a commission rate of $3.00 per lot, PRO ECN trades are charged at $2.00 per lot. Standard STP has no commissions as the spreads start from 1.5 pips
Offer a wide range of Deposit and Withdrawal options Debit/Credit Card, Skrill, Neteller, Paypal, and Wire Transfer, unfortunately, they don’t have any support in local languages and local bank transfers.
Beginners Guide To Forex Trading
Introduction to Forex
Forex is the largest Over-The-Counter Financial Market in the world. Which means approximately $6 Trillion is traded every day in these market. Big banks and Hedge Funds like JP Morgan, Citi, HSBC, and other banks trade billions of dollars every single day.
Retail traders make up to approximately 5% of the total forex market. It is really hard to track who is into these markets because these are Over the Counter markets which run 24 hours a day and 5 days.
These markets are the most volatile in the world large no. of traders from around the world trade.
There is no physical currency traded or exchanged while trading in these markets only a specific position is opened at a particular price to estimate the value of currency going up or down. Unlike only buying, you can also make a profit if the currency moves downward on a sell order.
There are more than 120 currency pairs listed across all major exchanges. Out of those all currency pairs only a few pairs are available to trade in the markets and availability of these pairs depends on the forex broker.
All the currency pairs are divided into 3 categories.
These kinds of pairs are the most traded in the market with high volatility and widely traded pairs.
Major Pairs include USD as base currency or quote currency
Minor pairs or cross currency pairs have low volatility not all Minor pairs are available for trading it may vary from broker to broker. As the volatility is less compared to Major currency pairs the spreads are also wider.
The Minor pairs typically contain EUR, JPY, GBP, and these 3 currencies are most actively traded in the minors.
These pairs are traded very less compared to minors not all brokers provide these exotic pairs to trade and these have very large spreads and low volatility
The forex market has 3 lot sizes, micro, mini and standard lots. 1000 units are considered as a micro lot, 10,000 units is a mini lot and 100,000 units is a standard lot size.
Leverage is a buying power provided by the brokers. For example, if the leverage is 1:100 and you want to buy $10,000 worth of currency you only need $1000 in your account ($1000*100=$10,000). Leverage depends on the broker and varies by every broker but the minimum leverage provided by the brokers starts from 1:10 and a maximum of 1:1000.
Many traders recommend only use 1:400 or 1:500 leverage which is medium risk. Traders keep in mind there are similar disadvantages with higher leverage. So stick to 1:500 leverage and don’t go beyond it.
A pip is a point percentage movement in the currency exchange rate. Many currency pairs have 4 decimal values and the 4th decimal value is a pip. In some currencies like USD/JPY only have 2 decimal values and the movement change in the 2nd decimal value is a change in the pip.
A pipette is a point change in the 5th decimal value in some pairs and currencies associated with Yen as the quote currency the point change in the 3rd decimal value is the pipette.
Typically you can BUY or SELL a currency at current market value and this is known as Marker Order.
Buying or Selling a currency in the future value means placed a pending order at a specific price when the price reaches that level. These types of orders are called Limit orders.
How To A Choose Forex Broker
Keep in mind there are many forex brokers in the world they might be regulated but if their customer service calls and insists you to make a deposit and start trading from them don’t ever do that. These brokers are all scam brokers.
These brokers guarantee returns and help you with trading with live forex signals. Before choosing a broker always check for the forex broker review
After many scams in forex markets as it is not regulated and over the counter markets countries have started to regulate the forex brokers to prevent brokers from stealing people’s money.
List of regulatory bodies in different countries
- Australian Securities and Investments Commission
- The Bundesanstalt für Finanzdienstleistungsaufsicht (Germany)
- Commodities and Futures Trading Commission (United States)
- Cyprus Securities and Exchange Commission
- Financial Conduct Authority (United Kingdom)
- Swiss Financial Market Supervisory Authority
- Financial Services Agency
- Financial Services Board (South Africa)
- International Financial Services Commission
- New Zealand Financial Service Provider
- Malta Financial Services Authority
- Securities and Exchange Board of India
- Abu Dhabi Central Bank
Always check in the forex-related forums and websites to know more about the broker. If you are in the United States, you have to only trade with the brokers registered with CFTC.
It is not necessary that the broker has to be regulated from the country you are signing up.
Brokers charge on spreads or commissions. Every time you place a trade you will have to pay either for a spread or a commission.
If you are looking for tightest spreads then commissions rates may be a bit higher.
Deposit and Withdrawals
While making a deposit or withdrawal you might not face any issue with the broker. You will never face any issue with a good fx broker if your account is fully verified.
Orders have to be filled with your desired price under normal trading conditions.
If there are any new events or high volatility days there will be a little slippage in the rate. Unless there is no reason for your order not getting filled.
Customer Service might be a bit tricky because of the time zones. But with any technical issue, they are really hectic.
Before choosing a proper broker to start trading check for the reviews on the forums or our best forex brokers list. After a lot of research and testing, we have curated a list of best forex brokers you can start trading.