5 Best Forex Brokers for Beginners in 2022

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Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Trading with the right broker remains essential but finding the best one among thousands on offer can be a tough challenge. That is why we have done intensive research to compile a must-read list for you below of the best Forex brokers for beginners.

1
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Marketsi strategy builder helps traders trade smarter
Competitive trade execution with low slippage
68% of retail CFD...
68% of retail CFD accounts lose money
2
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best social trading platform on the market
Excellent choice of options for crypto traders
Get Started
68% of retail CFD accounts lose money
3
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best all around broker
High floating leverage + fast execution
4
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Best ECN execution on the MT4 platform
Excellent implementation of cTrader and Smart Trader Tools
5
The ratings shown on DailyForex.com are determined by hours of research from our editorial team into over 10 factors, including account fees, deposit/withdrawal options, regulatory status, tradable assets, and more.
Most extensive crypto derivatives offering. Choice of 250+ Crypto CFDs
Multiple funding and swift withdrawal options
Ultra-low spreads across all Crypto derivatives

  • Markets.com, Excellent educational offerings.
  • eToro, Best broker for social traders and crypto traders : 68% of retail CFD accounts lose money.
  • FXTM, Best all-around broker with high floating leverage and fast execution.
  • Pepperstone, Great ECN execution on MT4 platform.
  • Eightcap, Competitive pricing + excellent daily videos.

Markets.com

5.0/5 in this category
In Summary
Excellent educational offerings

Markets.com offers investors and traders one of the best environments to manage and grow their portfolios. Clients get four trading platforms, fourteen high-quality trading tools, and a competitive asset selection. For a minimum deposit of $250, clients get access to maximum leverage of 1:300, dependent on the asset. As one of the best Forex brokers for beginners, Markets.com delivers an excellent mix of educational content. The personalized financial live-stream service XRay is at the core of its value-added services. Markets.com also hosts webinars, where new clients get another valuable service that helps them grow into more educated traders. Market commentary, published under its News section, and quality trading ideas available under Analysis complete the educational tools at Markets.com.

eToro

4.5/5 in this category
In Summary
Best broker for social traders and crypto traders : 68% of retail CFD accounts lose money

eToro's biggest asset is its active trading community, ranking among the top three among all brokers with 13,000,000+ as of May 2020. The asset selection remains competitive with a market-leading cryptocurrency selection, but traders face a higher pricing environment, starting from 1.0 pips or $10 per 1.0 standard lot. eToro also provides limited leveraged, capped at 1:30, and the minimum deposit ranges between $200 and $10,000. One notable benefit for beginner traders is that eToro has added a range of tools to help new traders learn and become better ones. Its video Trading Academy has sections dedicated to Trading for Beginners. Another new addition is the Trading School, where eToro holds classroom-style lessons, webinars, and podcasts. The positive impact of the expanding beginner traders tools already lowered the retail loss rate from 71% to 67%.

FXTM

4.5/5 in this category
In Summary
Best all-around broker with high floating leverage and fast execution

FXTM established itself as a market leader for traders from emerging and frontier markets. The upgraded MT4/MT5 platforms offer traders a better trading environment compared to most brokers. With a minimum deposit of $10 and maximum leverage of 1:2000, FXTM remains accessible to all types of traders and provides them with a distinct edge. The commission-based cost structure ranks among the industry-best with a minimum spread of 0.4 pips and a starting commission of $4.00, which can get as low as $0.80 for active traders. Beginner traders should take advantage of the award-winning education available at FXTM, for which it received a Best Education Provider 2020 Award. Thirteen well-thought-through guides provide new clients with an excellent introduction, divided into ten Beginners and 21 Advanced lessons.

Pepperstone

4.5/5 in this category
In Summary
Great ECN execution on MT4 platform

Pepperstone is a well-known forex broker that has attracted a large number of devoted customers in just over a decade. Pepperstone's headquarters are located in Australia, although they have received certificates from a variety of agencies around the world, including the Australian Securities and Investments Commission. In Dubai, Cyprus, the Bahamas, the United Kingdom, Germany, and Kenya, Pepperstone is regulated. The business has worked hard to earn a reputation as a reliable forex trader over the years. When it comes to trading, users have a wide range of alternatives, including over 60 currencies, as well as crypto and currency indices.

Eightcap

4.0/5 in this category
In Summary
Competitive pricing + excellent daily videos

Eightcap is home to an outstanding technology infrastructure but fails to upgrade its out-of-the-box MT4/MT5 trading platforms. For a minimum deposit of $100, traders get maximum leverage of 1:500. The limited asset selection makes Eightcap a good choice for beginner traders and advanced ones with a focused trading strategy. One of the most notable benefits at Eightcap is the ECN pricing environment, offering traders access to raw spreads for a commission of $7.00 per round lot. When it comes to educating beginner traders, Eightcap presents a high-quality selection of articles. New clients can start their journey in the Trading Education section. It consists of broad topics that enhance the understanding of financial markets.

What is Forex Trading?

Forex trading basically refers to exchanging one currency for another one and speculating on price action. One example is buying euros for US dollars. Currencies remain quoted in pairs, with the EUR/USD the most liquid one. The first currency is known as the base currency, and the second one is a quote currency. Traders may buy or sell currency pairs, most conveniently online, via Forex brokers. A trader who buys or sells the EUR/USD exchanges euros for US dollars. One of the most notable benefits of Forex trading is leverage, which results in lower capital entry requirements versus other assets, like equities. The Forex market is the most liquid one globally, with daily turnover slowly approaching $7 trillion.

What is a Forex Broker?

A Forex broker acts as the intermediary between Forex traders and the Forex market. Some Forex brokers deploy the market-making model, profiting directly from client losses where they remain the counterparty. Other brokers use the ECN/STP/NDD execution model, matching orders and granting access to liquidity. The former has higher mark-ups in a commission-free pricing environment versus raw spreads for a fee and often a volume-based rebate program. A Forex broker also provided traders with a trading platform, either a proprietary solution, the retail market leading MT4 or the ECN favorite cTrader. Some try to push the MT5 trading platform, widely considered the failed successor to MT4. The best Forex brokers for beginners maintain a high-quality educational section, competitive market research and commentary, and excellent trading tools.

How Much Money Do You Need to Trade Forex?

One of the most frequent questions of beginner traders is “How Much Money Do I Need to Start Trading Forex?” While the answer depends on individual circumstances, new traders should consider no less than $100 and only trade micro-lots. One micro-lot equals 0.01 lots or 1,000 currency units in a standard Forex trading account and is usually the minimum trade size at most brokers. A $100 portfolio suffices for beginner traders to learn how to trade in a live trading environment and presents tremendous educational value.

What Are the Most Popular Currency Pairs?

The most liquid currency pair is the EUR/USD. Other major currency pairs include the EUR/JPY, the EUR/GBP, the EUR/CHF, the GBP/USD, the USD/JPY, the USD/CHF, the USD/CAD, the AUD/USD, and the NZD/USD. Per the latest Triennial Survey by the Bank for International Settlements (BIS), 88% of all Forex traders include the US dollar. The Chinese yuan (CNY) is the eighth most traded currency globally, positioned to become more dominant moving forward. Other emerging currencies to monitor are the Russian ruble, the Mexican peso, the Indian rupee, the Brazilian real and the South African rand.

Can You Get Rich by Trading Forex?

Getting rich by trading Forex remains a possibility, but a rare one. It requires discipline, patience, time, and capital. Traders must first master the psychology of trading before thinking about a trading strategy. It may require more than a decade of successful trading before a portfolio reaches the necessary size to take it to the next level and become rich. Most retail traders, between 70% and 85%, face trading losses, and less than 2% earn sufficient money from trading to rely on it as their sole source of income.

How Do I Start Trading Forex?

There are heated discussions about the best approach, but I recommend reading about trading psychology and Forex trading strategies suitable for beginners as first steps. The subsequent topics to study are fundamental and technical analysis. From there, learning in a live account with a small deposit and trading micro-lots presents the successful approach traders take. Many retail traders fall into the demo account trap, which provides no trading experience but can create a false sense of accomplishment.

How Do I Choose a Forex Broker?

Trading with a regulated Forex broker is a must, but the regulation should not diminish the competitiveness. One example is brokers in the US and EU, which are among the most regulated ones but are equally home to the least competitive trading environments. The best brokers offer a business-friendly regulatory environment with additional safety measures. I also recommend Forex brokers with a trader-friendly commission-based pricing environment and a volume-based rebate program. Traders must ensure that their preferred broker will offer the assets they wish to trade. A cutting-edge trading platform, not just the out-of-the-box MT4/MT5 trading platforms, is another aspect to demand. High-quality trading tools demonstrate the willingness of the broker to invest in its trading environment. Finally, traders should evaluate the execution statistics of a broker, if available.

Forex Trading Regulations

Traders should never open an account with an unregulated broker. Not all regulators ensure a competitive trading environment, and traders must consider the limitations and how they will impact their trading. Low leverage restrictions, like in the US and the EU, can have a long-term counterproductive impact.

The Forex Platform/Software

The Forex trading platform is where traders spend the bulk of their time researching, analyzing, and trading. Therefore, a cutting-edge platform is a requirement. Unfortunately, most Forex brokers only offer the core MT4/MT5 trading platforms without any required add-ons, rendering them sub-standard. I recommend that traders opt for brokers providing free upgrades and other competitive trading tools.

Commission & Spreads

Commissions and spreads are direct trading costs that will have a notable impact on the trading strategy and outcome. I recommend a commission-based trading account with a minimum mark-up of 0.0 pips and a commission of no more than $7 per round lot, plus a volume-based rebate program. Traders who favor a commission-free trading environment should not accept minimum spreads above 0.7 pips.

Account Types

Many brokers continue to offer tiered trading accounts, a dated practice slowly being replaced by one account type for all. Competitive brokers with multiple accounts generally have a different one based on the trading platform and execution type. Trades should avoid brokers who offer improved trading conditions for higher deposits.

Deposits & Withdrawals

All regulated brokers support bank wires and credit/debit cards. I recommend that traders keep their trading-related transactions and their day-to-day banking separate. Third-party payment processors are more cost-efficient and faster, which I highly recommend for trading purposes. Depending on the location of the trade, some offer debit cards, ensuring swift access to funds.

Customer Service

The best Forex brokers for beginners will describe their products and services transparently. It limits the need for customer support to emergencies, for which a quality broker will offer numerous methods of contact. Traders should ensure that a phone number and live chat remain two of the options.

Tips for Beginner Traders

  • Focus on learning before earning from Forex trading
  • Always trade with a regulated Forex broker from a competitive jurisdiction
  • Have realistic profit expectations relevant to your deposits
  • Trade with a Forex broker offering a cutting-edge trading platform and tools
  • Opt for a commission-based trading account with a volume-based rebate program
  • Learn to trade in a live trading account using a small deposit and micro-lots
  • Ensure your broker has a phone number and live chat function

Methodology (How We Test/Choose)

We reviewed over 100 brokers in-depth based on eleven criteria from the perspective of a trader. Each research consisted of over 2,000 words and lasted more than ten hours. We ensured the most comprehensive approach to identify the best Forex brokers for beginners.

The eleven criteria used in our research consist of:

FAQs

What is the best Forex broker for beginners?

The best Forex broker for beginners will offer a high-quality educational program. I recommend the brokers from our list as a starting point.

Which broker is the best for Forex?

Any broker offering a cutting-edge trading platform, a broad asset selection, and a competitive pricing environment is best for Forex trading.

Can I start Forex with $10?

While it is possible to start with $10 at some broker, I highly recommend against it. Beginner traders should consider a minimum of $100 if trading micro lots, whereas a deposit of $10 can suffice for trading in nano-lots.

Can I teach myself to trade Forex?

The most successful Forex traders taught themselves how to trade. Learning from your mistakes is priceless, and traders should never pay for education, as all the material is available online and free of charge.

Huzefa Hamid

I’m a trader and manage my own capital. I trade the major Forex pairs, some Futures contracts, and I rely entirely on Technical Analysis to place my trades. Today, I am also a Senior Analyst for DailyForex.com. I began trading the markets in the early 1990s, at the age of sixteen. I had a few hundred British pounds saved up (I grew up in England), with which I was able to open a small account with some help from my Dad. I started my trading journey by buying UK equities that I had read about in the business sections of newspapers. The 1990s were a bull market, so naturally, I made money. I was fortunate enough in my early twenties to have a friend that recommended a Technical Analysis course run by a British trader who emphasized raw chart analysis without indicators. Having this first-principles approach to charts influences how I trade to this day.