Best Forex Brokers for Beginners
To help you with this challenging task, we have compiled a list of the best Forex brokers for beginners. This list takes into account everything that is crucial at the start: the company’s reliability, favorable trading conditions, ease of platform use, and the quality of educational materials. We hope you can easily compare the options and choose the one that suits you best.
IG
IG is the trading name of several companies within the IG Group. Currently, the broker is considered one of the oldest in the industry, having started operations in 1947, initially serving corporate clients. The group’s offices (read: firms offering brokerage services and providing clients access to various financial markets) operate in 17 countries across all continents except Antarctica. Moreover, shares of the public company IG Group Holdings plc are traded on the London Stock Exchange (LSE) and are included in the FTSE 250 index.
Reliability and Security
One of the main advantages of trading with IG is the protection of client rights by regulators in almost any jurisdiction. The platform holds licenses from the UK’s FCA, Australia’s ASIC, Germany’s BaFin, as well as regulators in Switzerland, South Africa, Singapore, Dubai, and even the United States’ Commodity Futures Trading Commission and National Futures Association (allowing it to accept U.S. clients for forex trading).
Client funds are held in segregated accounts with regulated banks like Barclays and Lloyds. The broker has no access to clients’ money or assets and cannot use them in its business processes.
Trading Conditions and Instruments
IG offers clients several trading options, including:
- Spread betting: Ideal for beginners who are still learning money management and do not have experience in analyzing and forecasting price movements.
- CFD trading: A classic forex trading option suitable for both experienced traders and new market participants. Unlike scam brokers, IG offers a single account type with all its features available to any account holder.
- US-listed options and futures: A special trading account for trading options and futures listed on U.S. exchanges. This allows the use of any strategies for derivatives contracts. While potentially very profitable, this option is not recommended for beginners due to the significant risks involved.
IG also offers investment accounts:
- Share dealing. A classic account for trading stock market assets. Traders become full owners of securities, receiving dividends and voting rights at shareholder meetings.
- Smart portfolios. An investment account managed by the company. Users simply choose a strategy, deposit funds into the account, and wait for profits. This is an excellent option for beginners without experience who want to start earning on financial markets right away.
Traders have access to an enormous number of trading and investment instruments. For example, in Spread betting and CFD trading, you can trade over 17,000 assets, including traditional currency pairs, commodities, stocks, and indices, as well as futures, interest rates, bonds, and more. The Share dealing account offers access to over 13,000 stocks and 2,000 ETFs.
Trading Platform
To access markets, collect client orders, display positions, and track funds and assets, IG offers several trading terminals:
- A proprietary web platform and mobile apps.
- Pro Real Time. A terminal with automated trading capabilities, available only for Forex/CFD trading and only for clients of UK companies.
- L2 Dealer. A platform for direct market access (DMA), ideal for professional traders.
- MetaTrader 4. A widely known product by MetaQuotes, extremely popular among traders worldwide. It’s probably the best choice for beginners due to its combination of functionality, user-friendly interface, and ease of use.
Education
IG offers a comprehensive set of educational materials suitable for users of all experience levels. Those wishing to learn can access:
- Live trading sessions with company specialists.
- Webinars and online seminars on dozens of interesting topics.
- Special courses on profit maximization and risk management, etс.
Most of these materials are available for free to registered users.
Pros & Cons
All of the above makes IG truly one of the best brokers for beginners. Its advantages for this category of users include:
- The reliability of a regulated broker, confirmed by multiple licenses.
- A low entry threshold, allowing beginners to avoid significant losses in the early stages.
- A variety of accounts, both trading and investment.
- A vast selection of assets, from traditional currency pairs and stocks to more specialized options requiring specific knowledge.
- Several trading platforms, making it easy to choose the most suitable one, especially in terms of ease of use.
- A significant number of free educational materials.
However, there are also some disadvantages:
- The most significant is the higher trading commissions compared to many other licensed brokers.
- A complex verification process (in some jurisdictions, scanned copies or photos of documents are not sufficient; paper copies may be required).
- The inability to use electronic payment systems for deposits.
Perhaps that is why this broker has relatively few clients (just over 300,000). However, novice traders should definitely consider trying their hand at trading with this company.
AVATrade
AVATrade is far from being a newcomer in the online trading market. Founded in 2006, the company gained user recognition within just a few years. Professionals have also taken notice; since 2009, the platform has consistently received industry awards at various events. One of its strongest points is its analytical department, which is highly regarded. Thousands of traders rely on market reviews and price forecasts prepared by AVATrade’s experts.
Reliability and Security
Newcomers opening accounts with AVATrade can rest assured about the company’s reliability. Its headquarters are in Dublin, Ireland, while regional branches provide brokerage services under licenses from local regulators. For example, the rights of users from the UK and the European Union are protected by the FCA and CySEC. The platform’s activities in other regions are supervised by Australia’s ASIC, South Africa’s FSCA, Abu Dhabi Global Markets Financial Services Regulatory Authority (ADGM/FSRA), Investment Industry Regulatory Organization of Canada (IIROC), and Japan’s FFAJ. Most clients can open accounts with the international company Ava Trade Markets Ltd, registered in the British Virgin Islands, with its regulatory documents issued by the local BVIFSC.
Across all of its branches, AVATrade remains committed to strict compliance with regulatory requirements and the security of client funds. To achieve this, the company employs:
- 256-bit SSL encryption.
- Built-in TrueSite seal for phishing protection.
- McAfee Secure (HackerSafe) technology to prevent theft of payment and personal data.
Trading Conditions and Instruments
AVATrade provides traders with access to over 1,250 assets across various markets, including:
- Currency pairs.
- Commodities and raw materials.
- Stocks and indices.
- Cryptocurrencies.
Additionally, AVATrade clients can trade standard exchange-listed options. Beyond traditional transactions, spread betting is also available, making it easier for beginners to start trading.
Trading is conducted from a single account, with a minimum deposit of 100 units of the base currency chosen during registration (USD, EUR, GBP, etc.). The following leverage levels are available for retail clients:
- 1:30 for currency pairs.
- 1:20 for stock indices.
- 1:10 for commodities and raw materials.
- 1:5 for other assets.
However, trading costs are higher compared to some brokers. For example, the spread on the EUR/USD pair is 0.9 pips, while IG offers 0.6 pips.
Trading Platforms
Most AVATrade clients use the MetaTrader 4 or 5 trading platforms. These are the best choices for beginners, offering both robust trading functionality and ease of use. In addition, the company offers several proprietary platforms:
- AVASocial for social trading.
- AVAOptions for options trading.
- AVATrade App — a fully functional trading terminal.
The company also claims compatibility with MQL 5, enabling the development and use of custom indicators, scripts, and trading robots.
Education
For both market newcomers and experienced traders, AVATrade offers interesting educational opportunities. Beginners can start with eBooks covering various topics, ranging from general principles of Forex/CFD trading to advanced strategies.
Moreover, traders have access to numerous courses:
- Introductory courses for beginners, such as “Start Trading Now” or “Introduction to Technical Analysis.”
- More advanced courses for those with some market experience or who have completed initial training. These cover topics related not only to Forex/CFD trading but also to stock and futures markets.
Pros & Cons
In summary, AVATrade is well-suited for market beginners looking to trade with a reliable broker. The company’s main advantages include:
- Numerous licenses from reputable and offshore regulators (for various company branches).
- Security of operations and client funds.
- A relatively low entry threshold of 100 units of the account currency.
- A good selection of assets for trading, including the ability to trade exchange-listed options.
- A wide range of educational materials for traders of varying skill levels.
However, there are some drawbacks:
- The entry threshold is somewhat higher than with most licensed brokers.
- Wider spreads compared to some other companies.
- No investment accounts, except for MAM.
Overall, AVATrade’s offerings are attractive to new market participants. Cooperation with the company can be quite profitable without additional risks.
AMarkets
AMarkets is a Forex/CFD broker that began offering services to traders in 2007. Currently, the company serves over 2,000,000 clients, has received numerous positive reviews, and has won several industry awards.
AMarkets operates under several companies registered in the Comoros Union, Cook Islands, and Saint Vincent and the Grenadines. These companies are authorized by local regulators. Additionally, the broker holds a certificate from The Financial Commission, which offers traders compensation of up to 20,000 euros. The quality of order execution is verified by Verify My Trade.
Traders can choose from four types of accounts: Standard, ECN, Fixed, and Crypto. The minimum deposit is $100 (or $200 for an ECN account), and leverage can go up to 1:3000 (up to 1:500 for Crypto accounts). The minimum spread for currency pairs starts at 1.3 pips.
For beginners, AMarkets offers attractive conditions with numerous bonuses and promotions. For instance, new clients receive a 100% bonus on their first deposit (up to $10,000). The terms for converting this bonus into real money on the account are quite lenient.
The company’s educational materials are primarily geared towards market newcomers. A set of about 15 videos explains how to start trading with the broker and earn your first profit. While there are no advanced materials, traders can practice on a demo account with parameters identical to a real account.
Pros & Cons
For a beginner, starting with AMarkets is fairly straightforward. The company offers many advantages:
- Licenses, even if they are offshore.
- Easy account funding and withdrawal.
- Low entry threshold (only $100).
- Decent bonuses, including on the first deposit.
- Demo account and educational materials.
However, there are some drawbacks:
- High leverage, which introduces significant risk, especially for beginners who are not familiar with money and risk management principles.
- Limited educational resources.
- Less favorable trading conditions compared to some licensed companies.
Plus500
Plus500 is a broker that has been operating in the Forex/CFD market since 2008.
Currently:
- The number of the broker’s clients exceeds 28 million.
- The company operates in several countries under licenses from authorities such as the FCA (UK), CySEC (Cyprus), ASIC (Australia), FMA (New Zealand), FSCA (South Africa), MAS (Singapore), DFSA (Dubai), etc.
- It is listed on the London Stock Exchange.
- It is an official sponsor of several sports teams.
Trading is conducted through a single account, with a minimum deposit of $100. Transactions can be executed with a minimum volume of 0.1 lots. The leverage is up to 1:30 for retail clients and up to 1:300 for professionals. Spreads are not the smallest among similar companies; for example, the spread for EUR/USD starts at 0.01%. However, there are no trading commissions (except for fees on position rollover and inactivity). The company also covers part of the payment fees charged by payment systems.
Client funds are held in segregated bank accounts in accordance with the UK Financial Conduct Authority’s client money protection rules. This can be verified by contacting the regulator. Other security measures are also applied, such as SSL encryption and the use of only verified payment methods.
Trading is done through the company’s proprietary applications. Traders can use a web version as well as mobile apps, which support automated trading. The interface is simple enough for any trader to master.
The Trading Academy section offers video materials for market beginners, focusing on Forex/CFD, tailored to traders with varying experience and knowledge levels. It also includes numerous webinar recordings and eBooks.
Pros & Cons
Overall, trading with Plus500 is quite comfortable for beginners, thanks to:
- The company’s reliability, guaranteed by numerous licenses from reputable regulators.
- A large number of educational materials, most of which are targeted specifically at beginner traders.
- A wide variety of trading instruments, making it easy to choose those that suit any strategy or trading system.
- Trading conditions that ensure minimal risk for retail traders and solid profitability for professionals.
- A professional support service that quickly resolves any issues.
However, there are some drawbacks:
- Significant spreads (0.01% for EUR/USD).
- Lack of opportunities to learn while trading with company specialists.
- A rather complex account verification process in some jurisdictions, such as the UK.
Nevertheless, the number of active Plus500 clients clearly demonstrates that these disadvantages are insignificant for most traders. The company’s reputation and trading conditions are much more important, attracting a large number of new users.
Capital.com
Capital.com is a Forex/CFD broker owned by the investment company VP Capital, which was established in 2012. Despite its relative youth, the broker has gained recognition among traders, as evidenced by over 2 million active clients worldwide and numerous awards and prestigious accolades received at various industry events.
To ensure the security of transactions and the safekeeping of client funds, Capital.com employs a set of measures typical of licensed companies. Traders’ funds are held in segregated accounts at leading banks, meaning the company has no access to them and cannot use them in its business operations. SSL encryption is used for data exchange, clients undergo full verification, and they can enable two-factor authentication (2FA). Monetary transactions are conducted only through reliable and verified payment methods.
Clients can adjust their leverage within the limits set by the broker. For example, the maximum leverage for retail clients on currency pairs is 1:30. Users can reduce this leverage to match their acceptable risk level but cannot increase it. Higher leverage is available to professional traders on a Pro account, but certain conditions must be met to open it.
Capital.com provides its own proprietary trading software as well as the option to trade on the TradingView platform or MetaTrader 4. These platforms are used by the majority of the company’s clients. Both terminals are well-known for their functionality, the ability to create custom modules (indicators and expert advisors), and the ease of connecting trading robots.
Capital.com places significant emphasis on educating beginners and enhancing the skills of traders. The broker offers a wide range of educational courses and guides on markets and strategies. The main advantage of the company’s educational materials is the simplicity of the information presentation and the inclusion of numerous real-life examples. Clients can test their newly acquired knowledge on a demo account with characteristics identical to a real account.
Pros & Cons
Overall, many traders consider Capital.com one of the best options for taking the first steps in the market. This is attributed to the broker’s numerous advantages:
- Operating under licenses from reputable regulators.
- Complete security of fund storage and monetary transactions.
- Trading conditions that rival industry leaders.
- A wide selection of trading assets.
- The ability to use popular platforms like TradingView and MetaTrader 4.
- Low trading costs.
- High-quality educational materials.
The drawbacks include stringent document verification during the account verification process and the inability to learn from the company’s experts in real-time trading. However, these factors do not prevent the broker from attracting several thousand new traders each month.
PepperStone
PepperStone is a broker representing a group of companies specializing in providing brokerage services to both private and institutional clients. Founded in 2010, it quickly established branches in several countries. Currently, it serves over 110,000 active accounts with an average daily turnover exceeding $12.5 billion.
PepperStone offers trading in currency pairs, commodities, stocks, stock and currency indices, and ETFs. In most jurisdictions, traders can choose between two types of trading accounts: Razor and Standard. These differ only in the execution technology of client orders — NDD and DD, respectively — and the presence or absence of trading commissions. The other characteristics are the same:
- No minimum deposit requirements.
- Leverage for retail clients up to 1:30 (up to 1:200 when registered with the international broker) and up to 1:200 (1:500) for professional clients.
- Minimum position size of 0.01 standard lots.
- Spreads on the Razor account start from 0, while on the Standard account, spreads for currency pairs start from 1 pip. In some jurisdictions, a spread-betting account is also available in addition to the two mentioned types.
PepperStone clients can trade on the company’s proprietary platforms, MetaTrader 4 and 5, Trading View, and cTrader. This variety allows traders to work with the platform that best suits their level of experience and knowledge, functions, and interface.
In PepperStone’s educational materials, traders will find:
- Thematic courses on working with assets from each market.
- Training videos for traders of various skill levels, from beginners.
- Guides on trading (general principles, technical analysis, trading systems, strategies, etc.).
- Recordings of webinars on various topics.
- The materials are free and accessible even to visitors (though not all).
Pros & Cons
PepperStone is popular among experienced traders and beginners. The latter are particularly attracted by the advantages of working with the broker:
- Reliability confirmed by licenses from reputable regulators.
- Security of client funds and financial transactions.
- Attractive trading conditions.
- Low or zero trading commissions.
- A variety of educational materials.
Some minor drawbacks include:
- Higher spreads on Standard accounts.
- Extremely high leverage offered by the international broker, significantly increasing client risk.
Nevertheless, new traders register with PepperStone with impressive regularity.
eToro
eToro is a globally renowned social trading platform and Forex/CFD broker offering clients unique trading opportunities. Founded in 2010 in Israel, the company now serves 35 million traders from 140 countries and is considered by many users to be one of the best options for beginners.
The company’s offices are located in:
- The UK (providing services under an FCA license).
- Cyprus (serving European clients under a CySEC license).
- Australia (holding an AFSL license from ASIC).
- The USA (authorized by FinCEN to serve local traders).
eToro’s history as a social trading platform began with its copy trading service, which remains a central feature. However, the company now offers several earning opportunities for both experienced traders and beginners. These include:
- Full-fledged trading in CFDs and currency pairs.
- Buying and selling futures contracts.
- Investments in portfolios.
- Cryptocurrency staking.
- Depositing funds to earn interest.
eToro allows beginners to earn money from the start while simultaneously learning real trading. All educational materials are housed in the eToro Academy section and are divided into four topics:
- Investing.
- Trading.
- Stocks.
- Crypto.
Each topic includes:
- Dozens of detailed guides on specific issues.
- Training courses comprising several (at least four) lessons.
- Step-by-step tutorials.
As for the trading conditions offered by the company, they are mostly similar to those of other licensed brokers. For example, in CFD trading, around 3,000 instruments are available. The minimum deposit is $10 (with bank transfers requiring a $500 deposit). The maximum leverage for retail investors is 1: 30. Trading commissions are charged, and their size depends on various factors, including the client’s country of residence.
Pros & Cons
Many traders believe that eToro is deservedly considered the best broker for beginners. Supporting this view are:
- The numerous earning opportunities offered by the company, even for those with zero knowledge.
- An abundance of educational materials, available for free to registered users.
- Attractive trading conditions, including a low entry threshold.
- The platform’s reliability, confirmed by licenses from reputable regulators.
A few drawbacks include the relatively higher trading commissions compared to other brokers. Additionally, in some countries, such as Canada, the platform’s owners have not secured a license, leading to a negative reaction from authorities.
However, the platform’s user base of 35 million traders is quite telling. Thousands of new traders join daily, the vast majority of whom are satisfied with their experience with the broker.
What Is a Forex Broker?
In general, a Forex Broker is a company that provides traders with the opportunity to make transactions on the interbank Forex market. Essentially, it acts as an intermediary between its clients (both private and corporate) and major financial institutions that actually form the market.
It’s important to note that the vast majority of those looking to earn on the Forex market cannot participate directly. Only banks and large companies with massive capital are participants, exchanging currency among themselves in their own interests or on behalf of clients. Even among legally operating Forex brokers, only a few have access to this market.
Companies we typically refer to as Forex brokers allow registered users to earn on what is known as retail Forex, which has few direct connections with the real international currency market. Clients of such brokers do not buy or sell foreign currencies; they profit (or incur losses) from the price changes of one currency relative to another (currency pair exchange rates). Essentially, the trader is buying or selling a derivative instrument — a contract for difference (CFD).
Of course, some large Forex brokers aggregate client transactions and process them through banks participating in the system. Another option is the ECN network, where one or more participants (liquidity providers) act as counterparties to traders’ transactions and then transmit them to the international currency market. However, these options are relatively rare.
In most cases, the Forex broker itself executes client orders, acting as the sole counterparty. The traders’ funds do not participate in interbank transactions; their profits are paid directly by the company, while losses become its revenue. The broker receives average quotes from the electronic trading system and relays this information to the end user, embedding its guaranteed earnings — the spread.
Contracts for difference (CFDs) can be executed with any underlying asset traded on any market. This has allowed Forex brokers to significantly expand the list of assets available to traders, offering CFDs on stocks, commodities, indices, and more. Therefore, there is no difference between Forex and CFD brokers — they offer the same set of trading instruments.
How Do I Start Trading Forex?
To start trading Forex (hereafter referring to retail Forex rather than the real interbank currency market), only a few relatively simple steps are required:
- Choose a broker. First, make sure the broker is officially registered and licensed to serve clients in your jurisdiction. Next, assess the trading conditions offered and, if necessary, choose the type of trading account. Don’t forget to consider trading and non-trading costs (commissions).
- Open a trading account with the broker. The procedure might not be simple, as licensed brokers often require clients to complete a questionnaire to determine whether they qualify as retail or professional investors.
- Fund the account. Always remember the risks involved in trading on financial markets. The amount you deposit should not exceed what you can afford to lose.
- Familiarize yourself with the Trading Platform — its interface, available functions, methods for placing orders and closing positions, etc.
- Start trading.
Tips for Beginners
Most Forex beginners are confident they can earn quickly and significantly. However, without some experience and knowledge, trading turns into a risky venture that usually ends in the loss of the deposit. Following a few simple tips can help avoid this outcome.
- Be confident in your broker. Don’t open an account with the first company promising the world. Your broker should have an excellent reputation, official registration, and a license to provide relevant services. Therefore, be sure to check how long the company has been in business, where it is registered, and under which licenses it operates. Always read reviews about it. Only this way can you choose the best option.
- Develop a strategy. First, determine how much you want to earn, over what period, and how much you’re willing to lose. This will define your risk tolerance and, consequently, your trading style.
- Proceed step-by-step. Don’t start trading with a position equal to your entire deposit. Set rules for capital and risk management and strictly adhere to them. It’s better if your initial trades are of smaller volumes, allowing you to limit losses, identify strategy errors, and refine your trading system.
- Study trading psychology. This will help you control your emotions and understand why you shouldn’t chase losses, how to maximize profits, and not fear losses, etc.
- Always have a demo account handy. Don’t test new ideas on a real account — they might not be as profitable as they seem at first glance. Test any changes you plan to make on a demo account.
- Always remember. There Are No Guarantees in Financial Market Trading. The possibility of losing your entire deposit always has a non-zero probability. Strategies that have been profitable in the past may result in losses in the future. However, this is no reason to give up trading. It should instead motivate you to learn, develop, and improve your strategy and trading system. Отрабатывать новые идеи на реальном счете не следует, они могут оказаться не столь прибыльны, как кажется на первый взгляд. Все изменения, которые вы собираетесь внести, тестируйте на демо-счете.
FAQ for Beginners
Can I Start Forex With $10?
Can I Teach Myself to Trade Forex?
Can I Get Rich by Trading Forex?
What Are the Most Popular Currency Pairs?
How to Choose the Best Account Type for Beginners?
Final Thoughts
In general, the list of the best Forex brokers for beginners on any thematic site, including ours, is created only after a thorough analysis of numerous sources. However, this does not eliminate a certain degree of subjectivity, which is why these lists vary across different online resources.
Of course, the main criteria for choosing a broker remain unchanged. However, the only way to truly know how good a broker is, is through your own experience. Therefore, we advise you to trade more, even with small starting deposits, and choose the best broker based on your own results, not on someone else’s, even the most authoritative, opinion.